Re: Freightcorp's interstate sell-off blamed on competition fears

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

David Bromage wrote:

> Greg Rudd (grudd@mail.usyd.edu.au) wrote:
> > David Bromage wrote:
> > > The proposed privatisation of Freightcorp has been blamed for the sale of
> > > 20 locomotives interstate rather than to a local company. Silverton Rail,
> > > based at Parkes, had sought to purchase the Freightcorp-owned locos.
> > >
> > > http://www.abc.net.au/news/regionals/orange/monthly/regor-24jan2001-5.htm
> > >
> > > (I presume this means the 442s, but only 16 were sold.)
>
> > My question is why was the locomotives sold privately instead of at public
> > auction, or tender where the highest possible price chould have been gained.
>
> For the single reason that Silverton would have bought them and operated
> them in competition with FreightCorp!

It really is amazing.  Freightcorp will go and compete against another operator in
SA but is so frightened of competition themselfs

>
> > Is this a breach of Freightcorp's own disposal procedures?
>
> FreightCorp is corporatised and is told to behave like a business. As
> such, my understanding that public tenders are no longer mandatory. Even
> then, FreightCorp is like Microsoft - it doesn't adhere to any standards,
> even its own.
>

It is only a business because of expediency on the governments part.  When a
directive comes from the minister to do something that freightcorp doesn't want to
do, it is amazing how quickly it becomes just another government department.

> Cheers
> David