Macquarie looks at options for One Rail sale

 
  bingley hall Minister for Railways

Location: Last train to Skaville
Aurizon (although I'm not holding my breath) may also have more dollars to throw towards a better rail transport relationship with Vittera - growing its Bulk Division will certainly rely in some part on the potential for additional grain transport in South Australia.

It does seem that the relationship between Viterra and 1Rail is not great.
bevans

I don't think the relationship between Viterra and anyone is great.

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  bevans Site Admin

Location: Melbourne, Australia
Aurizon (although I'm not holding my breath) may also have more dollars to throw towards a better rail transport relationship with Vittera - growing its Bulk Division will certainly rely in some part on the potential for additional grain transport in South Australia.

It does seem that the relationship between Viterra and 1Rail is not great.

I don't think the relationship between Viterra and anyone is great.
bingley hall

I see.
  bevans Site Admin

Location: Melbourne, Australia
https://www.railpage.com.au/news/s/aurizon-agrees-to-buy-onerail-australia Aurizon intends integrating the entire business which would include intermodal.
  8502 Chief Train Controller

Aurizon is preparing to be asked to divest the ECR = East Coast Rail Operations from the proceeds of the sale.

Who would the business in the Hunter go to?
  michaelgm Chief Commissioner

Macquarie group share has cracked the $200 mark today.
  bingley hall Minister for Railways

Location: Last train to Skaville
Aurizon is preparing to be asked to divest the ECR = East Coast Rail Operations from the proceeds of the sale.

Who would the business in the Hunter go to?
8502

The highest bidder....... except Pacific National who would be smart enough to know they would never get a bid past the ACCC.
  8502 Chief Train Controller

Aurizon is preparing to be asked to divest the ECR = East Coast Rail Operations from the proceeds of the sale.

Who would the business in the Hunter go to?

The highest bidder....... except Pacific National who would be smart enough to know they would never get a bid past the ACCC.
bingley hall

Could Qube be an interested party?
  bingley hall Minister for Railways

Location: Last train to Skaville
Aurizon is preparing to be asked to divest the ECR = East Coast Rail Operations from the proceeds of the sale.

Who would the business in the Hunter go to?

The highest bidder....... except Pacific National who would be smart enough to know they would never get a bid past the ACCC.

Could Qube be an interested party?
8502

No reason why not.

Remembering that coal assets are not an attractive long term investment these days.
  8502 Chief Train Controller


Could Qube be an interested party?

No reason why not.

Remembering that coal assets are not an attractive long term investment these days.
bingley hall

I see your point.  Would they sell off the wagons and the locos or just the contracts?

Bandt wants to stop coal by 2030

  BrentonGolding Chief Commissioner

Location: Maldon Junction

Could Qube be an interested party?

No reason why not.

Remembering that coal assets are not an attractive long term investment these days.

I see your point.  Would they sell off the wagons and the locos or just the contracts?
8502
They may have to offer it as a package to get someone interested IMO

How much does the Millionaires Factory stand to cream off this buy-sell deal anyway?
  bingley hall Minister for Railways

Location: Last train to Skaville

Could Qube be an interested party?
No reason why not.

Remembering that coal assets are not an attractive long term investment these days.

I see your point.  Would they sell off the wagons and the locos or just the contracts?

Bandt wants to stop coal by 2030

8502

Wagons and locos included.

Unfortunately bringing Bandt into the discussion will only trigger the rock burning troglodytes on RP. He has very little real influence.
  BrentonGolding Chief Commissioner

Location: Maldon Junction
Unfortunately bringing Bandt into the discussion will only trigger the rock burning troglodytes on RP. He has very little real influence.
bingley hall
You're not wrong - he was at the opening of a community garden that I attended just before covid - talk about no mates party tapes, people were falling all over themselves to avoid talking to him and he was an invited guest!!!

His parents on the other hand are lovely people, I met then at the VGR one day when they turned up at the ticket window at CME. From SA of course, should have guessed from the surname Laughing
  wobert Chief Commissioner

Location: Half way between Propodolla and Kinimakatka
Macquarie group share has cracked the $200 mark today.
michaelgm
goody goody
  8502 Chief Train Controller


Could Qube be an interested party?
No reason why not.

Remembering that coal assets are not an attractive long term investment these days.
I see your point.  Would they sell off the wagons and the locos or just the contracts?

Bandt wants to stop coal by 2030


Wagons and locos included.

Unfortunately bringing Bandt into the discussion will only trigger the rock burning troglodytes on RP. He has very little real influence.
bingley hall

Aurizon can you see them expanding intermodal from Melbourne to Adelaide to Darwin?
  bingley hall Minister for Railways

Location: Last train to Skaville


Aurizon can you see them expanding intermodal from Melbourne to Adelaide to Darwin?
8502

One Rail have been already working on that, but it seems to have gone on the backburner in the last few months, possibly due to the uncertainty over the sale.

Worth remembering Aurizon's record with intermodal in the past has been a big 'F' for Fail.
  james.au Minister for Railways

Location: Sydney, NSW

Aurizon can you see them expanding intermodal from Melbourne to Adelaide to Darwin?

One Rail have been already working on that, but it seems to have gone on the backburner in the last few months, possibly due to the uncertainty over the sale.

Worth remembering Aurizon's record with intermodal in the past has been a big 'F' for Fail.
bingley hall
Who is to say that with a different cost structure they might not return?  How do ORA's labour contracts compare?
  bingley hall Minister for Railways

Location: Last train to Skaville

Who is to say that with a different cost structure they might not return?  How do ORA's labour contracts compare?
james.au

Not saying they won't, just that they will need to a major change to their way of past thinking. They couldn't handle intermodal in the past, the Adelaide Darwin traffic is way down on what it was, not exactly a recipe for success

Anything is possible in the current environment, but I wouldn't mind betting a sly tenner that Aurizon will actually lose some of the little regional traffic remaining in South Australia.
  8502 Chief Train Controller

Who is to say that with a different cost structure they might not return?  How do ORA's labour contracts compare?

Not saying they won't, just that they will need to a major change to their way of past thinking. They couldn't handle intermodal in the past, the Adelaide Darwin traffic is way down on what it was, not exactly a recipe for success

Anything is possible in the current environment, but I wouldn't mind betting a sly tenner that Aurizon will actually lose some of the little regional traffic remaining in South Australia.
bingley hall

Your comment about 1rail loosing business on the Darwin to Adelaide how much have they lost?

There is an article here about running cattle as new traffic which the business case supports that could be positive and Aurizon have that experience out of Queensland.
  james.au Minister for Railways

Location: Sydney, NSW
Who is to say that with a different cost structure they might not return?  How do ORA's labour contracts compare?

Not saying they won't, just that they will need to a major change to their way of past thinking. They couldn't handle intermodal in the past, the Adelaide Darwin traffic is way down on what it was, not exactly a recipe for success

Anything is possible in the current environment, but I wouldn't mind betting a sly tenner that Aurizon will actually lose some of the little regional traffic remaining in South Australia.
bingley hall
Oh yeah there isnt much form for them but ive never been able to see Aurizon's move out of intercapital intermodal as a permanent thing given the diversification away from coal they needed (which impacts also the CQCN access earnings).  Management now are different to what they were a few years ago and with the intermodal blood from ORA something might change.  Could the Adelaide-Darwin Service extend to Melbourne for example?  (Side question, where does most of the Darwin/Alice freight come from and go to?).
  bingley hall Minister for Railways

Location: Last train to Skaville
Oh yeah there isnt much form for them but ive never been able to see Aurizon's move out of intercapital intermodal as a permanent thing given the diversification away from coal they needed (which impacts also the CQCN access earnings).  Management now are different to what they were a few years ago and with the intermodal blood from ORA something might change.  Could the Adelaide-Darwin Service extend to Melbourne for example?  (Side question, where does most of the Darwin/Alice freight come from and go to?).
james.au

As hinted at in a post somewhere above, One Rail are/were already working on a Melbourne to Adelaide intermodal service that would link in with the Adelaide-Darwin service.  

As for what's carried on AD services I haven't been paying that much attention, but I think it's mainly domestic containers for Woolies and Coles. The original consortium made a lot of noise about landbridging, but I don' think much ever cam of that.

From lineside observations the amount of doublestacking on the trains, that used to be quite significant 10 years ago, is much reduced these days. If not for the containerised Oz Minerals traffic ex Wirrida siding it's hard to see how these traisn could be turning a quid.
  Galron Chief Commissioner

Location: Werribee, Vic
Aurizon (although I'm not holding my breath) may also have more dollars to throw towards a better rail transport relationship with Vittera - growing its Bulk Division will certainly rely in some part on the potential for additional grain transport in South Australia.

It does seem that the relationship between Viterra and 1Rail is not great.
bevans
may we seen the line to pinnaroo (at least) reopened then, and potentially linked back to the now standard gauge murrayville line? pie in the sky hopes probably, but we are good at wild speculation here.
  BrentonGolding Chief Commissioner

Location: Maldon Junction
Aurizon (although I'm not holding my breath) may also have more dollars to throw towards a better rail transport relationship with Vittera - growing its Bulk Division will certainly rely in some part on the potential for additional grain transport in South Australia.

It does seem that the relationship between Viterra and 1Rail is not great.
may we seen the line to pinnaroo (at least) reopened then, and potentially linked back to the now standard gauge murrayville line? pie in the sky hopes probably, but we are good at wild speculation here.
Galron
It would be really interesting to know if Viterra have lost much (or any) business across the border after their decision to switch to trucks for Murraylands grain haul

If indeed Rail has a cost advantage some growers might have been tempted to sell into Vic as was happening out of the South East last year (for different reasons IIRC)
  james.au Minister for Railways

Location: Sydney, NSW
Aurizon (although I'm not holding my breath) may also have more dollars to throw towards a better rail transport relationship with Vittera - growing its Bulk Division will certainly rely in some part on the potential for additional grain transport in South Australia.

It does seem that the relationship between Viterra and 1Rail is not great.
may we seen the line to pinnaroo (at least) reopened then, and potentially linked back to the now standard gauge murrayville line? pie in the sky hopes probably, but we are good at wild speculation here.
Galron
I was going to mention this as a possible to add competition to the Mildura intermodal market but if there isnt competition coming up from Melbourne, the lesser port of Adelaide probably isnt going to capture it.

It would be good for grain though.  Adelaide is probably under capacity in its exports.
  Galron Chief Commissioner

Location: Werribee, Vic
Aurizon (although I'm not holding my breath) may also have more dollars to throw towards a better rail transport relationship with Vittera - growing its Bulk Division will certainly rely in some part on the potential for additional grain transport in South Australia.

It does seem that the relationship between Viterra and 1Rail is not great.
may we seen the line to pinnaroo (at least) reopened then, and potentially linked back to the now standard gauge murrayville line? pie in the sky hopes probably, but we are good at wild speculation here.
I was going to mention this as a possible to add competition to the Mildura intermodal market but if there isnt competition coming up from Melbourne, the lesser port of Adelaide probably isnt going to capture it.

It would be good for grain though.  Adelaide is probably under capacity in its exports.
james.au

Does Adelaide have any obvious advantages over Melbourne? One of the big things that holds Melbourne back is the draft of ships that can get in there, hence why Portland is at times more favored, despite the issues with unloading there.
  james.au Minister for Railways

Location: Sydney, NSW
Aurizon (although I'm not holding my breath) may also have more dollars to throw towards a better rail transport relationship with Vittera - growing its Bulk Division will certainly rely in some part on the potential for additional grain transport in South Australia.

It does seem that the relationship between Viterra and 1Rail is not great.
may we seen the line to pinnaroo (at least) reopened then, and potentially linked back to the now standard gauge murrayville line? pie in the sky hopes probably, but we are good at wild speculation here.
I was going to mention this as a possible to add competition to the Mildura intermodal market but if there isnt competition coming up from Melbourne, the lesser port of Adelaide probably isnt going to capture it.

It would be good for grain though.  Adelaide is probably under capacity in its exports.

Does Adelaide have any obvious advantages over Melbourne? One of the big things that holds Melbourne back is the draft of ships that can get in there, hence why Portland is at times more favored, despite the issues with unloading there.
Galron
I honestly dont know for sure and cant find the data that convinces me after about 30 mins of looking, but Appleton can take a 270m long boat (10.1 draft), Geelong a 168m one (15m draft), and Adelaide (3 berths) can take: Inner, 185 (10m) and 206 (10m); and Outer, 300m (16m draft).

If ive read those right Adelaide has more grain capacity and perhaps better facilities on the outer dock.  But this is a Viterra operated site.  I think the grain supply chain in SA is less competitive given Viterra appears to be more vertically integrated and so opening Pinnaroo would need some cooperation.

But opening Pinnaroo would no doubt free up rail capacity south of Ouyen.

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