Re: FreightCorp sale is official.

["Rod Gayford" <rjaygee@eisa.net.au>]

The problem with hanging onto Freight Corp is that 70% of its business comes
from about 10% of its customers being the Hunter coal traffic. This traffic
is vulnerable to the open competition process and could be lost to Freight
Corp (as is happening with the NR etc contracts).  If that freight is lost
Freight Corp will be worth a great deal less.  While I am generally not too
enthusiastic about privatisation it is now the only commercially realistic
way to go.  The corporatised government entities run by public servants
trying to be commercial have been disastrous as the example of the appalling
record of Pacific Power in NSW.  I predict that for Telstra to remain
competitive, the remaining tranche in government ownership will have to be
sold.
Cheers
Rod Gayford

"Railway Rasputin3" <jamesccj@optusnet.com.au> wrote in message
39b8da60$0$26551$7f31c96c@news01.syd.optusnet.com.au">news:39b8da60$0$26551$7f31c96c@news01.syd.optusnet.com.au...
>
> Paul Jones <jonesclan@free.net.au> wrote in message
> T74u5.11842$cr3.334365@ozemail.com.au">news:T74u5.11842$cr3.334365@ozemail.com.au...
> > If freight corp only made a profit of $45 million, there is something
> > terribly wrong with it.... Gee, how did I figure that out......
> >
> > --
> > ----------
> > Paul Jones
> Yes!  all those coal trains that runs every 15 minutes everyday worth only
> 45m$?  i doubt about it.....
>
> Government owned enterprice unfortunately cost heaps more to operates, the
> expense usually are very high especially the labour cost, and they are not
> able to be as competitive as private business nor felixble to the
customers.
> IIRC QR made 145m$ last year, but QR really should have earn a lot more
then
> that if you take into consideration of all those long coal trains running
> around in Central Queensland.
>
> Cheers
> James
>
>