BHP signs rail contract

[Jim Bartok <jbartok@acay.com.au>]

Thursday 6 May, 1999 (11:30am AEST)

BHP and the National Rail Corporation have signed a contract which could
bring 750,000 tonnes of steel billet from Whyalla in South Australia to
Newcastle.

The caster at Whyalla, which will be commissioned next month, will
produce steel for the upgraded rod, bar and wire mill at BHP's Newcastle
site, after the end of steelmaking in September.

BHP's Greg Cameron says the rail contract will be in place until 2007
and has the potential to save BHP around $20 million a year.

"It's probably the biggest single rail contract for manufactured
products ever signed in Australia.
                  
"It's important to note that we're bringing 100 per cent steel by rail
door-to-door and that compares with bringing iron ore by ship from
Western Australia which is about 40 per cent steel, so when you compare
the two it's much more efficient," Mr Cameron said.

(Source: ABC News)