Re: What is freightcorp worth?

[Greg Rudd <grudd@mail.usyd.edu.au>]

Maurie Daly wrote:

> Seems that the NSW Govt thinks that Freightcorp is worth $1B.
> This is a bit less than the $7B that the WA opposition thinks that
> Westrail is worth.
>
> Seriously,just where do the pollies get these numbers from??
> If Freightcorp is worth $1B , it should be making annual profits of at
> least $100 M , preferably closer to the $200 M mark.
> AFAIK , last year Freightcorp only made around $40 M , which included
> NSW Govt CSO subsidies.
> Even with $40 M , this represents only a 4% return on capital, which
> is pretty lousy.
>
> If Freightcorp is worth $1B than what is NRC worth ???
>
> MD

I think they get these sort of numbers from the merchant banks and
Treasury who organize  and promote these types of sales.