Re: Surveyers at McInytyre!

[mauried@tpg.com.au (Maurie Daly)]

In article <3925ED64.109FB07A@primus.com.au> Richard <richard_snook@primus.com.au> writes:
>From: Richard <richard_snook@primus.com.au>
>Subject: Re: Surveyers at McInytyre!
>Date: Sat, 20 May 2000 01:46:24 GMT



>Maurie Daly wrote:

>> 
>> Its got nothing at all to do spades and shovels.
>> Govt owned railways like Freightcorp can run services at a loss simply to keep
>> competitors out.
>> They can do this because
>> 1/ They cant go broke whilst they are Govt owned.
>> 2/ Their shareholders ,ie the Govt dont give a stuff whether they make or lose
>> money.
>> 3/ They can use other profitable freight where they have a monopoly to
>> subsidise unprofitable routes.
>> 
>> The Leigh creek coal is a classic example.
>> $4 a tonne equates to approx 1c per ntk which is an excellent rate if you can
>> get it.
>> One then wonders why it costs 4.5 c per ntk to haul coal in the Hunter Valley.
>> We are using the same locos , same wagons , its the same coal being hauled.
>> Maybe something to do with lack of competition and secret track access charges.
>> 
>> MD

>Spades=real costs and revenues.....Shovels= subsidies ...and non competitive
>revenues!!

>Very good explanation  Maurie....any idea what Freight Corp costs the NSW
>gov??

>cheers >:~)) Richard


Nothing at all, they make big profits.
The real question to ask is what does Freightcorp and RAC for that 
matter,cost the Hunter Valley Coal industry.


Heres a simple analogy.
I own two companies,MD rail haulage and MD track access.
The State Govt legislates that only MD rail haulage can haul coal.
I can charge whatever I like.
Other potential rail operators complain about the monopoly.
Govt legislates that other operators can compete against MD rail haulage
but that they must obtain track access agreements from MD track access which 
has a totally secret charging regime.
Do you think Id have many competitors?

MD