Re: The Future of ineffient NSWR (FreightCorp)

James Drogan (drogan@pipeline.com)
Thu, 17 Jul 1997 20:34:30 GMT

dantech@lisp.com.au (B. Schwartz) wrote:

>michael barr <michael.barr@jcu.edu.au> wrote:

>>What what will happen to this once great railway system now that it is
>>wide open to competition in the open market?

>One can only anticipate that as there is no longer any restrictions
>upon pricing of haulage, FreightCorp is in a better position to become
>more competetive.

>The freight side of State Rail had been politically hampered for many
>years in being competetive. Pricing structures were set at a level to
>allow for greater ease by road hauliers to win haulage contracts.

>Since these restrictions were removed on July 1, 1996, FreightCorp is
>now in a position to be truly competetive and to set their own
>pricing. They can now submit a coal haulage tender to a colliary for
>example, at fixed or flexible rates negotiated between the two parties
>for any set period of time.

What is your view of the impact on the FreightCorp pricing strategy of
its need to negotiate with Rail Access for infrastructure access?

>There has been increased activity within the operation recently such
>as an additional `speed freight' to Blainey, more oil supplies going
>west by rail, and so on. This was not possible previously as past
>governments actively encoured more road transport.