Rail giants to battle for Freight Australia

DavidB · Posted: Sat Nov 01, 2003 2:40 pm

Australia's three rail giants are set to fight for control of the strategic Victorian rail freight market with the announcement that Freight Australia is for sale. Freight Australia's owner, RailAmerica, yesterday confirmed its intention to sell the Melbourne-based group, ending months of speculation.

http://www.theage.com.au/articles/2003/10/31/1067566087666.html

[The short version of the story is: QR, Toll Holdings and ARG.]

georails · Posted: Tue Nov 25, 2003 9:41 pm

No one has suggested the obvious buyers for FA!
a consortium of QR and ARG.
This way we will have a Canadian type rail system, IE: 2 Bigguns and a few small railways! Cool

I say this somewhat tongue in cheek Surprised

but at 50 and so cynical, I can darnwell say what I want now! Laughing

If you dont like all trains, no matter where from
- THERE IS SOMETHING SERIOUSLY WRONG Smile

Member: National Rail Museum (SA).
NMRA Australasian region, (DCC MOD SIG)
Hills M.R.C. (Baulkham Hills NSW)

freightgate · Posted: Wed Nov 26, 2003 12:13 pm

Rail giants to battle for Freight Australia
By Philip Hopkins
November 1, 2003

Australia's three rail giants are set to fight for control of the strategic Victorian rail freight market with the announcement that Freight Australia is for sale.

Freight Australia's owner, RailAmerica, yesterday confirmed its intention to sell the Melbourne-based group, ending months of speculation.

RailAmerica chief executive Gary Marino said it had "several qualified buyers" of Freight Australia. "We believe the time is right to effect a sale of the company as the outlook for grain recovery in Australia for fiscal year 2004 is quite positive, and a near record grain harvest is anticipated," he said.

The government-owned Queensland Rail yesterday threw its hat into the ring. QR chief executive Bob Scheuber said his company would be interested in buying Freight Australia.

Toll Holdings managing director Paul Little has also not hidden his desire for further acquisitions as the Australian rail sector rationalises. Toll jointly owns rail giant Pacific National with Patrick.

The third largest operator, Perth-based Australian Railroad Group, is also believed to be interested in Freight Australia.

Mr Marino said RailAmerica expected "a significant gain" on the Australian sale. Freight Australia, then Freight Victoria, was bought in May 1999 for $163 million when the Victorian Government privatised VLine Freight.

Mr Marino said Australian regulators had told RailAmerica they would not raise anti-trust objections if Freight Australia was sold to Toll or Genesse & Wyoming. He said RailAmerica was selling Freight Australia and its international operations in South America to concentrate on the North American market.

Australia's drought in 2002-03 pushed Freight Australia into the red, causing financial losses to RailAmerica. with Bloomberg

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Comments:

ARG is a definate chance in my view!

CNNNN - "Mr. Howard, what do you think of our new ethanol flavoured lollypops?" Umm Mr. Howard? ..... Mr. Howard??????? ..........

kota16 · Posted: Thu Dec 25, 2003 1:20 pm

I think ARG will be the buyer. Exclamation

Rail16

Gazza · Posted: Sat Dec 27, 2003 6:42 pm

ARG would probably be the best choice, but will they be the highest bidder????

QR make no secret of their desire to expand their standard guage network. Interail is only a token effort at the moment.

PacNat may run into trouble with the ACCC trying to buy FA, going on previous experience(ie: forced disposal of locos at merger of NR & SRA)

Clyde-GM · Posted: Tue Jan 27, 2004 6:39 pm

A no 1 · Posted: Tue Jan 27, 2004 7:09 pm

ParkesHub · Posted: Tue Jan 27, 2004 8:41 pm

One of the problems is that ARG are trying to digest Westrail and consolidate what's going on in the NT. Plus, ARG are a little confused about who thy are and where they're headed. But, if they get their act together, PN had better be careful!

But how would it be if a consortium bought FA? FCL, Linfox and CRT are 3 companies that could team up and take it up to the Toll/Patrick consortium represented by PacNat. Combined, they have the cashflow to do it and also have worked co-operatively extensively together. Has anyone seen the Linfox/FCL co-labeled 48' containers plying their trade on various rail routes? Same with FCL/CRT.

An interesting possibility, I'd have thought.

Nick Moss · Posted: Tue Jan 27, 2004 9:04 pm

Just a quick question - who are FCL and CRT?

Cheers,

NM

ParkesHub · Posted: Tue Jan 27, 2004 9:08 pm

rhino · Posted: Wed Jan 28, 2004 10:28 am

ParkesHub wrote:

But how would it be if a consortium bought FA? FCL, Linfox and CRT are 3 companies that could team up and take it up to the Toll/Patrick consortium represented by PacNat. Combined, they have the cashflow to do it and also have worked co-operatively extensively together. Has anyone seen the Linfox/FCL co-labeled 48' containers plying their trade on various rail routes? Same with FCL/CRT.

I like this idea, but how viable is it? And would this consortium put money into laying standard gauge track into the Qld terminals? It would be a better outcome than one of the other big boys buying it.[/quote]

Cheers, Rhino

mjja · Posted: Wed Jan 28, 2004 12:02 pm

It would sure be a good thing for rail - and even better for FA's existing customers. At least two of those companies have good reputations for innovation, and at least one is EXCELLENT in customer service.

And I can't imagine any of those three guys letting things go without maintenance for months on end when money gets tight.

Maybe a bit later I'll do up a new livery for the consortium. Smile

Happy Gunzelling and remember, "Go by rail!"

Michael Angelico
President, Smart Passengers Inc
(My opinions are my own unless specifically stated.)

rhino · Posted: Wed Jan 28, 2004 12:12 pm

ParkesHub · Posted: Wed Jan 28, 2004 12:46 pm

I reckon it is feasible in financial terms. All three companies do interact quite extensively so there are some synergies.

Whether it fits the strategic aims of the businesses, I don't know.

ParkesHub · Posted: Mon Feb 02, 2004 1:58 pm

As my work colleague, mjja, pointed out:

FCL Railway:
F > FCL
C> CRT
L > Linfox