Asciano head for the Sunshine State

 
  bingley hall Minister for Railways

Location: Last train to Skaville
More from today's shareholder briefing:

• Asciano to enter the Queensland export coal haulage market
• Key legal and commercial terms being finalised with multiple coal companies operating in
Queensland
• Contract execution targeted for Q1 calendar 2008 and haulage to commence 2H calendar
2009
• Orders have been placed for diesel and electric locomotives
• Total investment of approximately $529 million
• Significant footprint on which to build, with anticipated growth to in excess of 30mtpa by 2011


Bing

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  M636C Minister for Railways

No mention of wagons!
Have the coal companies already paid for the QR wagons, which would then be available to PNQ?

If the $529 million is just locomotives there must be about 100 - I guess PN class and maybe Siemens 3800 class.

If not just for locos, and wagons are included, there must still be about 30 units anyway.


If at least 30 are PN class, that will then be the biggest class in Australia (PN, 4000, 4100), exceeding the NRs.

M636C
  bingley hall Minister for Railways

Location: Last train to Skaville
I would say it is safe to assume that the $529 million is for locomotives and wagons - it does say diesel AND electric locomotives and says the orders have been placed - with whom it would be nice to know?

The whole invtesor presentation was fairly light on on detail so it is not surprising that 'wagons' didn't get mentioned.

Someone else can do the sums, but my interpretation is that the $529 million is the initial investment - as it says 'a footprint' to growing its share to over 30 mtpa after 2011, which on current projections will be  about 12% of the market.

Bing
  M636C Minister for Railways

I think we can assume that the diesel locomotives will be EDI GT42CU-AC type, the present PN class. These were bought to be suitable for coal service just as soon as it eventuated. The new units would have Mitsubishi inverters rather than the Siemens in the existing PN class.

The only reason that they might go elsewhere is if the delivery times were too long. One reason they purchased an existing QR type was so that QR could not stall approving it for operation.

At Ausrail, a speaker in the EDI presentation mentioned that "more than 100" GT42CU-AC units had been ordered. The published orders and deliveries are total 92 and I think eight more are to go to ARG. To have "more than 100" on order there must be at least one more order, hence PN, I guess.

The only current suitable electric loco design is the Siemens QR 3800, which looks almost the same as the rebuilt 3700 class units, except for a flat end instead of the sealed cab. With 45 built or on order and the 63 3700s as near sisters, that is the biggest class of electric locomotives in the country.

Again, buying the QR design would speed approval for operation which would be useful for a 2009 startup.

Anyway, thats my guess based on the best information available to me.

M636C
  awsgc24 Minister for Railways

Location: Sydney
One reason they purchased an existing QR type was so that QR could not stall approving it for operation.
"M636C"


But what about delays in type approving the PN colour scheme?
  DalyWaters Chief Commissioner

There are many threads now related to Asciano's presentation, but none specific to all states.  Maybe this is relevant to Queensland.

Isn't Asciano's behaviour akin to the small (or large) boy who has grown tired of playing with one toy and is now going to pester his parents (financiers) for a bigger toy?

What is Asciano (and predecessor Toll) 's track record on rail?

Not too flash if you ask me.

Why did they buy the Tasmanian network?

They now need to close most of it up.

Its not affected by the drought, so whats happened since they took it over?  If it just doesn't make money, then why did they pay money for it?
Did they do due diligence?

Why did they buy Freight Australia?  Did they do due diligence there?

Admittedly, the drought has knocked the wheat business around.  But we appear to be on the verge of getting over the drought.

Is it really that they have missed out on a big wheat haulage contract?

The National Rail business seems to power on.  However, considering the dominant amount of rolling stock they got at start up, it is interesting to see how much business is now travelling with new players.

A lot of questions should be asked of Mr. Rowsthorn by Asciano shareholders before they spend half a billion trying to win contracts in Queensland.
  biqua Paper Tiger

Location: Under a rock
Why did they buy the Tasmanian network?
"DalyWaters"

Wasn't it part of the NR deal? I suspect the terms of the deal would have been along the lines of if they wanted the rest, they had to get Tassie as well.[/quote]

Why did they buy Freight Australia?  Did they do due diligence there?
"DalyWaters"

Asset stripping? Buy the complete parcel, discard the services, keep the assets (locos, rolling stock, etc) and redeploy elsewhere ...
  SPSD40T2 Chief Commissioner

Location: Platform 9-3/4 and still waiting !!
Just watch .. PN will either be a smal /bit player in 5 years or will have been sold as Asciano decides its no fun playing with trains when the others wont share.. lol Smile).. that is when others get better at winning the contracts like PN did !!..railway karma did I hear someone say ?? Very Happy

PN is a bully boy whose day is about to come. There are much beter rail operators around waiting in the wings.
The quicker theat PN  p!sses off out of Vic and Tas the better for all concerned.  They might end up as only another player in hook and pull in the end.
  DalyWaters Chief Commissioner

Wasn't it part of the NR deal? I suspect the terms of the deal would have been along the lines of if they wanted the rest, they had to get Tassie as well


No, they bought it off ATN I think.

Just like they bought Freight Australia from Rail America.


By the way, who owns New Zealand Rail, Toll or Asciano?
  bingley hall Minister for Railways

Location: Last train to Skaville
Toll.

There are rumours going around the NZ Government want to buy it back from them.

Bing
  DalyWaters Chief Commissioner

In other threads, it is suggested that Asciano are winding up container trains in Victoria nad Tasmania because they don't return 20% profit.

How do they expect to just walk into Queensland and start winning coal contracts that will deliver 20% profit?

Will QR not bid?  Are QR's costs 20% higher.

Or does a presentation to shareholders of massive expenditure on locos and wagons to win lucrative contracts just sound good in the current climate?

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