Re: QR restructure coming?

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

Maurie Daly wrote:

> On Sun, 25 Feb 2001 02:01:32 +1100, "James C."
> <james_ccj@optusnet.com.au> wrote:
>
> >> Sounds like there doing what everyone else has done.
> >>
> >> I hope that they get it right unlike their southern counterparts who have
> >> stuffed everything completely, and have now needed an inquiry to recommend
> >it
> >> all goes back together.
> >
> >Just hope what ever they do DO NOT PRIVATISE QR
> >
> >The system works fine and earns big $ without privatisation.
> >
> >Cheers
> >James
> >
> >
> >
> The system doesnt work fine at all.
> Queesland Rail is a Govt owned monopoly which earns 70% of all its
> revenue from the carriage of coal.

Are you arguing that QR be split up into several  coal carring companies, a general freight company, several
passenger companies and of course the mandatory track access company all competing against each other while the
Road Transport industry is laughing all the way to the bank.

>
> Here is a direct extract from the Productivity Commissions report into
> the Black Coal industry in Australia.
> ----------------------------------------------------------------------------------------------------------
> 7.2.1 Coal freight rates
> Inquiry participants indicated that rail freight rates per ntk for
> coal in Australia
> are very high relative to those paid by mines overseas, particularly
> in the United
> States.
>  MIM stated:
> Rail and port charges for export coal in Queensland are
> internationally uncompetitive. (sub. 18, p. 1)
>
> --------------------------------------------------------------------------------------------------------------
>
> Any organization which operates in a zero competition environment like
> QR does , cant help but make huge profits.
> Telstra made huge profits too, before it had any competition.
>

And makes even bigger profits now!

>
> QR may not need to be privatised , but it sure needs some competition.
>
>

It all ready has competition.  It called the Road Transport industry which is very heavily subsidized.

> I suggest that you have a read of this report which is available from
> the PCs web site , and then have a rethink about how wonderful QR is.
>
>

It is a down sight more customer focused that the majority of the privately owned railways in Australia. And the
soon to be privatized ones like Freightcorp.

> The report is also just as critical of Freightcorps coal operations.
>
> MD