Re: [Vic] Fast train services to go ahead, says Govt

[Chris Brownbill <cbrnbill@enternet.com.au>]

Maurie Daly wrote:
> 
> On Tue, 03 Oct 2000 17:29:55 +1000, Chris Gordon
> <cmgord@VICSIG.alphalink.com.au> wrote:
> 
> >> > >The State Government says fast train services to central Victoria and
> >> > >other regional centres will go ahead, despite threats by Freight Australia
> >> > >to pull out of the project.
> >> > >
> >> > >http://www.abc.net.au/news/regionals/bendigo/monthly/regben-2oct2000-6.htm
> >>
> >> > Maybe I am missing something,but I understood that the Victorian Govt
> >> > had SOLD Vline freight,including a 15 year lease on the country track
> >> > network to Freight Australia.
> >>
> >> The non-ARTC track remains the property of the Department of Infrastructure.
> >
> >Correct, and there is a clause in the lease to Freight Australia
> >covering Open Access (basically the Vic Government can grant access to
> >other parties at any time)
> >
> >
> >--
> >
> The obvious question then is , just what is the value of having a
> lease at all, when it apparantly entitles you to nothing more than
> running rights , which anyone can have without having to shell out
> $164 million .
> ie , just what did FA buy for their $164 million??
> 
> MD
> 
Good question really, heightened by the recently proposed open access mechanism.
Marinus Van Onselen's warnings about the Fast Train project are not directly
relevant to FA, but he's saying that any potential private investors in the fast
train routes will not be keen to shell out money to build the infrastructure
whilst an open access regime is in place which Van Onselen says is biased toward
above rail operators.  As I understand it, FA have responsibility for
maintaining the track to a reasonable standard, and the track access charges are
proposed to be set at cost recovery plus 15% which he claims is inadequate.  IE
Van Onselen is saying to the Government "other investors will only come forward
if FA makes a profit".  Quite a cute political move really.