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Re: Will the last rail operator left...



In article <xo1P2.4465$MB3.7471@newsfeeds.bigpond.com> "Rod" <berlina@bigpond.com> writes:
>From: "Rod" <berlina@bigpond.com>
>Subject: Re: Will the last rail operator left...
>Date: Thu, 8 Apr 1999 22:39:04 +1000


>K & D at Cootanee wrote in message <370c7a27@dnews.tpgi.com.au>...
>>...some thoughts.
>>
>>NRC was supposed to be a one-stop-shop for interstate freight. Seems like
>>things may go back to the fractured ways of the past. At least government
>>railways were not trying to put each other out of business and they
>>generally co-operated in getting freight from State A to E via B,C,D.
>>
>>How many rail operators can the market support? Will the pie grow or will
>>these companies expend their finances fighting it out over existing
>freight?
>>At the end of this era will all trains run on roads...
>>--
>>Cheers,
>>
>>K & D at Cootanee
>> (remove 999 from address to reply)
>>
>>

>Actually this is pretty interesting. I dont know much about the Trans
>Continental Railway to Perth, but I have always believed that it was the
>only rail line in Australia, that knocks the sox off Road Transport
>Operators and has held better than 75% of all east west traffic since it was
>Standardised, and even up to 96%.
>Having said this, it was very interesting to see that since SCT entered the
>scene, and then TNT and Patricks and V/Line, as well as the legit operator,
>National Rail, Freight charges have now tumbled to such an extent that
>V/Line will /has pull out, and all Freight beyond Port Augusta will be
>subbied out to the best bidder, after all if the others want to fight it
>out, go ahead, and thanks very much, you can have mine too, at those rates
>;o)
>Rod


The Trans line has always since standardization had the lions share of freight.
Its ideally suited to this task ,there are no grades of substance , trains are 
long and heavy and travel at high average speeds , ie its got everything going 
for it .

The competition bit though has got me worried.
There seems to be some sort of fundamental belief amongst the feds that 
competition is the answer to all problems and that competition will bring 
prices down.
Some competition will do this , but too much competition simply forces 
operators into bankrupcy.
The problem with the East - west line is that its the line where we dont need 
anymore competition.
There is no threat from the trucking industry so all that we end up with is 
multiple rail operators cutting each others throats.
Where we do need the rail competition is Melb - Sydney - Brisbane where there 
basically isnt any.
I wonder if RAC have something to do with this ?

MD