Senator calls for PM intervention

 
Topic moved from News by bevans on 07 Apr 2021 14:09
  Carnot Minister for Railways

This is a significant story. It's the primary supplier of rail in Australia and a big employer.

The big question is whether the Fed Govt will bail it out or even nationalised it to keep it running?

Lots of new rail will be require for inland rail and other projects (ie. Ararat to Maryborough).  Would they rather let Whyalla sink and import rail? Or own it?

Sponsored advertisement

  nswtrains Chief Commissioner

This is a significant story. It's the primary supplier of rail in Australia and a big employer.

The big question is whether the Fed Govt will bail it out or even nationalised it to keep it running?

Lots of new rail will be require for inland rail and other projects (ie. Ararat to Maryborough).  Would they rather let Whyalla sink and import rail? Or own it?
Carnot
If rail was imported then 65 KG rail could be used on the Inland.
  bevans Site Admin

Location: Melbourne, Australia
This is concerning if you acknowledge Greensill has an exposure to Gupta approaching 60% of their entire portfolio.
  Big J Deputy Commissioner

Location: In Paradise
Interesting it wasn't that long ago that Whyalla was on its knees and that ARTC purchased rail due to Govt intervention to keep it going.

Irrespective of my personal belief that markets should take care of this, there is a national strategic need like oil refineries that critical industries need to be retained for our own resilience. This is one.

How the government achieves that is up to the policy makers, but intervention is needed, if the market fails.
  Carnot Minister for Railways
  bevans Site Admin

Location: Melbourne, Australia
Hitting the news now the Government is exploring the saving of OneSteel.

Certainly good news.
  james.au Minister for Railways

Location: Sydney, NSW
Stupid question probably, but would it take much for a plant such as BlueScope at Port Kembla to add rail manufacturing capabilities to what they do?  Or other steel products that OneSteel does, and in doing so make the Port Kembla plant more viable over the long run?
  YM-Mundrabilla Minister for Railways

Location: Mundrabilla but I'd rather be in Narvik
BHP at Port Kembla used to roll rails and other long products before the production of these items was taken over by Whyalla but that was a long time ago.

I don't know what the answer is but I see no point in governments pouring buckets of money into private enterprise activities as sooner or later they will take the money, strip the assets and walk.

Somewhere, somehow there has to be a balance between privatising the profits and socialising the costs. The organisations that came anywhere near socialising the profits like CSL and Telstra have long gone.

In my days of buying rails ages ago BHP sadly treated its customers like dirt. You should be honoured that we will roll your rails but they will be only to our profiles and we will roll them when it suits us 'sometime late next year'!

Have things changed?
  bingley hall Minister for Railways

Location: Last train to Skaville
Hitting the news now the Government is exploring the saving of OneSteel.

Certainly good news.
bevans

I can't find any headline that suggest that bevans - do you have a link?

It seems it's all white noise at this stage anyway. If the media is to be believed then the Whyalla operation is the jewel in the crown of Gupta's steel operations. His UK operations are in a lot more danger of collapse as a result of the crooks at Greensill.
Not saying there isn't a threat to Whyalla, as highlighted by the pending legal action by Credit Suisse in the NSW courts, but the sky hasn't fallen in just yet as some seem to want to believe.
  Carnot Minister for Railways

Part of me wonders if the Govt will buy it to ensure Inland Rail and other projects are supplied with rail from Whyalla?

Ie. Almost as a 'National Importance' venture?
  james.au Minister for Railways

Location: Sydney, NSW
Hitting the news now the Government is exploring the saving of OneSteel.

Certainly good news.

I can't find any headline that suggest that bevans - do you have a link?

It seems it's all white noise at this stage anyway. If the media is to be believed then the Whyalla operation is the jewel in the crown of Gupta's steel operations. His UK operations are in a lot more danger of collapse as a result of the crooks at Greensill.
Not saying there isn't a threat to Whyalla, as highlighted by the pending legal action by Credit Suisse in the NSW courts, but the sky hasn't fallen in just yet as some seem to want to believe.
bingley hall
This makes sense - if liquidators are appointed to cash in what assets they can, they may as well start with the good assets.
  Gayspie Deputy Commissioner

Location: Adelaide, SA
Part of me wonders if the Govt will buy it to ensure Inland Rail and other projects are supplied with rail from Whyalla?

Ie. Almost as a 'National Importance' venture?
Carnot
The state government may nationalise the steelworks to save the town of Whyalla.
  james.au Minister for Railways

Location: Sydney, NSW
Part of me wonders if the Govt will buy it to ensure Inland Rail and other projects are supplied with rail from Whyalla?

Ie. Almost as a 'National Importance' venture?
The state government may nationalise the steelworks to save the town of Whyalla.
Gayspie
State governments seem to be doing the heavy lifting at the moment, they'd be more likely than the feds.
  freightgate Minister for Railways

Location: Albury, New South Wales
One rail is a supplier to the steel works according to the Australian this morning. Front page. What are they supplying ?
  bevans Site Admin

Location: Melbourne, Australia
One rail is a supplier to the steel works according to the Australian this morning. Front page. What are they supplying ?
freightgate

Might refer to the Narrow Gauge network on  the penninsula.
  bingley hall Minister for Railways

Location: Last train to Skaville
One rail is a supplier to the steel works according to the Australian this morning. Front page. What are they supplying ?

Might refer to the Narrow Gauge network on  the penninsula.
bevans

Only a very small proportion of the tonnage of iron on the narrow gauge network operated by OneRail goes into steel production at Whyalla, the majority goes for export. This is for Simec Mining which is another GFG subsidiary, so may or may not be impacted by the current shenanigans.

A recent news story on 'the crisis'

https://www.australianmining.com.au/news/gfg-alliance-defends-tahmoor-coal-onesteel-survival/
  Lockspike Chief Commissioner

Stupid question probably, but would it take much for a plant such as BlueScope at Port Kembla to add rail manufacturing capabilities to what they do?  Or other steel products that OneSteel does, and in doing so make the Port Kembla plant more viable over the long run?
james.au
I remember watching a rail being rolled at Port Kembla during a school visit in 1973. A few years later BHP moved its Long Products division to Whyalla citing lack of space at Port Kembla.
Maybe now with Bluescope considerably downsized, space could be made for long products again. It wouldn't be cheap so the reason would need to be compelling.
  Lockspike Chief Commissioner

BHP at Port Kembla used to roll rails and other long products before the production of these items was taken over by Whyalla but that was a long time ago.

I don't know what the answer is but I see no point in governments pouring buckets of money into private enterprise activities as sooner or later they will take the money, strip the assets and walk.

Somewhere, somehow there has to be a balance between privatising the profits and socialising the costs. The organisations that came anywhere near socialising the profits like CSL and Telstra have long gone.

In my days of buying rails ages ago BHP sadly treated its customers like dirt. You should be honoured that we will roll your rails but they will be only to our profiles and we will roll them when it suits us 'sometime late next year'!

Have things changed?
YM-Mundrabilla
It used to be that NSW bought AIS/BHP rail without question. Then in the early/mid 80s NSW got sick of BHP's pricing and antics, so imported an order of Australian Standard 60kg from British Steel. I heard that next time NSW wanted rail BHP was far more amenable.
  james.au Minister for Railways

Location: Sydney, NSW
Stupid question probably, but would it take much for a plant such as BlueScope at Port Kembla to add rail manufacturing capabilities to what they do?  Or other steel products that OneSteel does, and in doing so make the Port Kembla plant more viable over the long run?
I remember watching a rail being rolled at Port Kembla during a school visit in 1973. A few years later BHP moved its Long Products division to Whyalla citing lack of space at Port Kembla.
Maybe now with Bluescope considerably downsized, space could be made for long products again. It wouldn't be cheap so the reason would need to be compelling.
Lockspike
i guess if the reason is that the only long products production plant has been closed and there is now a business opportunity then it perhaps might be compelling?
  bingley hall Minister for Railways

Location: Last train to Skaville
One rail is a supplier to the steel works according to the Australian this morning. Front page. What are they supplying ?

Might refer to the Narrow Gauge network on  the penninsula.

Only a very small proportion of the tonnage of iron on the narrow gauge network operated by OneRail goes into steel production at Whyalla, the majority goes for export. This is for Simec Mining which is another GFG subsidiary, so may or may not be impacted by the current shenanigans.

A recent news story on 'the crisis'

https://www.australianmining.com.au/news/gfg-alliance-defends-tahmoor-coal-onesteel-survival/
bingley hall

So @Donald are you disagreeing that only a small part of the Middleback ore is railed for use in the steel works? Please enlighten us if so.
  Donald Chief Commissioner

Location: Donald. Duck country.
Bing,
I did not intend to disagree with you.  I was scrolling on the phone and hit it accidently.  Apart from liking the post as well, is there a way to 'un-disagree'?
  bingley hall Minister for Railways

Location: Last train to Skaville
Bing,
I did not intend to disagree with you.  I was scrolling on the phone and hit it accidently.  Apart from liking the post as well, is there a way to 'un-disagree'?
Donald

Oh dear - I wouldn't stress about it. I thought you just click on disagree again and it sorts itself out, but I have tried that before and it doesn't seem to have worked. To be honest I'm likely to have been the only one erroneously upset by it Razz
  bevans Site Admin

Location: Melbourne, Australia
Bing,
I did not intend to disagree with you.  I was scrolling on the phone and hit it accidently.  Apart from liking the post as well, is there a way to 'un-disagree'?
Donald

Click agree for the same post
  Lockspike Chief Commissioner

Stupid question probably, but would it take much for a plant such as BlueScope at Port Kembla to add rail manufacturing capabilities to what they do?  Or other steel products that OneSteel does, and in doing so make the Port Kembla plant more viable over the long run?
I remember watching a rail being rolled at Port Kembla during a school visit in 1973. A few years later BHP moved its Long Products division to Whyalla citing lack of space at Port Kembla.
Maybe now with Bluescope considerably downsized, space could be made for long products again. It wouldn't be cheap so the reason would need to be compelling.
i guess if the reason is that the only long products production plant has been closed and there is now a business opportunity then it perhaps might be compelling?
james.au
Probably cheaper to support the existing rolling mill at Whyalla, rather than relocate it to Port Kembla.

Sponsored advertisement

Subscribers: bevans, Big J, james.au

Display from:   

Quick Reply

We've disabled Quick Reply for this thread as it was last updated more than six months ago.