Re: QR going national?

["Switched On" <yaropolk@hotmail.com>]

< Tell > <telljb@OZozemail.com.au> wrote in message
380187a1.2986504@news.ozemail.com.au">news:380187a1.2986504@news.ozemail.com.au...
> "Switched On" <yaropolk@hotmail.com> wrote:
> >
> > Hmmm.. what about Airtrain? What about Simplon-Orient Express or
whatever
> > they're called? What about the Sunshine Steam company?
>
>
> Nobody can operate a train in Qld hauling freight or
> coal on State tracks in competition to QR.

That's only because they don't know how to do it any better. The simple fact
is that you can't move anymore coal any cheaper on narrow guage tracks than
QR does already without cutting safety and industrial relations corners. As
for freight, nobody has applied to run freight except TNT, and they wanted
merely to hire QR trains, crew and track at half the price, and just skim
profits off the top. They weren't seriously interested in operating it
themselves - only in using QR as the service provider. Basically, they
wanted QR to compete with itself. A stupid scenario merely designed to make
their road transports look better and cheaper. If someone comes along to
genuinely operate their own trains within current safety and operational
guidelines, QR will not say no, but no serious players have put their chips
on the table as yet.

> Your comments above have SFA to do with the issue.

And your comments _do_ have something to do with it, I suppose? I guess you
are some sort of expert on the subject? Australian rail has not been an open
market long enough for any serious 3rd party operators to develop. The
situation is especially slow in Queensland because the TYPE and QUANITITY of
freight  which can profitably being shipped is much less diverse, meaning
that there is less room for other operators. Especially in light of the fact
that QR has already achieved record coal haulages for narrow guage, and its
relationship with the mines is extremely businesslike and cooperative. In
short, QR are coal haulage specialists. No coal mine operator in Queensland
seriously wants to run their own trains because there's no money in it for
them - only more operating costs, and then there is the learning curve. It's
a different situation than in other states because of the environment. The
only other freight haulage operation of any significant size in this state
is livestock, and QR have specialised there as well. There are very few
industrial freight customers who are regulars - unlike NSW and especially
unlike Victoria. Industrial freight is hard to specialize in because it
comes in such varied sizes, shapes, frequencies etc etc. Its transport
requirements are difficult to pin down. Coal and livestock are known
commodities compared to what VLine has to deal with. Therefore, the room for
diversification is greater in other states than in Queensland. Meaning that
the only way competitors can compete hear is on price - which is the worst
thing possible to compete on, as everyone knows. Any company trying to
compete against QR in Queensland would be broke within three years - do your
sums and work it out.

A