Re: Steam builds for Alice to Darwin rail link

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

In article <jWoY4.298$mQ5.532474@news0.optus.net.au> dbromage@fang.omni.com.au (David Bromage) writes:
>From: dbromage@fang.omni.com.au (David Bromage)
>Subject: Re: Steam builds for Alice to Darwin rail link
>Date: Mon, 29 May 2000 07:23:59 GMT

>Maurie Daly (mauried@tpg.com.au) wrote:
>> None do ,and thats why all other interstate lines had to built and paid for in 
>> their entirety by Govts ,both Federal & State.
>> Expecting the private sector to build a $700M rail line to carry 1 train per 
>> day is economic stupidity.
>> But to explain where the 30 trains per day come from.

>> One train per day would generate enough revenue to cover the running costs and 
>> maintenance costs,but not the capital cost.

>You're limiting yourself to a 1000t train. Make it two 1500t trains (say
>one NR and one Patricks) and a 5000t iron ore train from Coober pedy per
>day and see how the numbers look.

>Cheers
>David

No you misread my estimations which were based on 2500 tonne trains.
The 1000 tonnes is simply to make the sums easier.
Obviously if there are iron ore trains from Coober Pedy then the economics 
change ,but I am not aware of any plans to open any large iron ore mines along 
the line.
The startup time for large mines vary from 3 to 5 years.
Remember also that this isnt the first time we have been told a starting date 
for this line .
In December 1997 the Chief Minister of the NT and the PM announced that 
construction of this line would start in May 1998,but it didnt.
The traffic projections for the line in 1998 would not have been so greatly 
differant to the projections today to make the line viable , even with the 
addition of $100 M.
Its also interesting that if one looks at the companies represented in the 
successful consortium , they are all enginneering , construction companies.
There isnt a single bank or financial institution mentioned.
According to the May edition of T & S , the consortium were still looking for 
equity partners.

MD