Pacific National investor meetings spur confusion

 
  james.au Chief Commissioner

Location: Sydney, NSW
http://www.afr.com/street-talk/pacific-national-investor-meetings-spur-confusion-20180117-h0k1hn


Perplexing. That's how several fund managers interpreted a recent investor session with rail freight giant Pacific National. Street Talk understands Credit Suisse's equities arm held an investor lunch with Pacific National big wigs in recent weeks, raising more questions than it answered.

While investors were keen to get intel on the bulk haulage, coal and steel markets for any insights into listed rival Aurizon, many came away feeling Pacific National executives were asking a lot of the questions. While it's not uncommon for private companies to field and take requests for meetings with investors and analysts, several fundies came away thinking Pacific National may be headed back to public markets over the medium term.

It seems illogical, given how hard the now owners fought for the business less than two years ago. But seasoned investors couldn't shake the feeling. And it certainly would not be a small bite. When the break up and takeover of Asciano was consummated in 2016, independent expert Grant Samuel valued Pacific National at $8.75 billion to $9.25 billion. The deal saw Asciano removed from the glare of public markets. Credit Suisse was heavily involved in the deal.

The firm has close ties to one of Qube's two partners, Global Infrastructure Partners, both domestically and offshore. As part of the carve up of Asciano, Pacific National is owned by a consortium of infrastructure investors Canada Pension Plan Investment Board, GIP, China Investment Corporation, Singapore's GIC and British Columbia Investment Management Corporation.

Pacific National has had a busy few years. In 2017, it inked a deal with Linfox to take coal carrier Aurizon's intermodal assets in Queensland. It has a new chief executive at the helm after appointing BHP veteran Dean Dalla Valle to the role last year. Pacific National is also positioning to capitalise on the federal government's mammoth Inland Rail project.
AFR

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  bingley hall Minister for Railways

Location: Last train to Skaville
http://www.afr.com/street-talk/pacific-national-investor-meetings-spur-confusion-20180117-h0k1hn




Pacific National has had a busy few years. In 2017, it inked a deal with Linfox to take coal carrier Aurizon's intermodal assets in Queensland. It has a new chief executive at the helm after appointing BHP veteran Dean Dalla Valle to the role last year. Pacific National is also positioning to capitalise on the federal government's mammoth Inland Rail project.
james.au

Thanks for posting James - I love this last paragraph which says very little at all about how the bulk of PN's business is travelling (we know the data is not publicly available) despite "a busy few years".
  james.au Chief Commissioner

Location: Sydney, NSW
I honestly thought about not posting given its an article that is light on real detail but heavy on filler, but there are a few nuggets of info (eg maybe it will be listed again) that i thought warranted discussion.  And the connection to QUBE....
  neillfarmer Chief Train Controller

Yes thanks for posting. The relationship with Cube is a bit tenuous, I think on the ground (tracks?) they are competitors. Perhaps it would be wrong to read too much into this, Credit Suisse facilitated the privatisation so it would be natural for them to see how it is turning out. On the other hand the Canadian Partners might be nervous, Railroads in North America still haven't bounced back from the coal slump and GFC with some 4000 units still in storage and GE exiting loco building. They may be seeking reassurance and haven't got it.
One would have to think that PN is in a good position, it's major competitor has surrendered a large chunk of business and there is growth on the horizon if the IRL ever comes to fruition.

Neill Farmer
  YM-Mundrabilla Minister for Railways

Location: Mundrabilla but I'd rather be in Narvik
What are 'units', please? Locos or wagons?
  neillfarmer Chief Train Controller

What are 'units', please? Locos or wagons?
YM-Mundrabilla
Locomotives. Only CN is showing any growth. In 2015 GE had orders for 1,426 locos, in 2016 only 26 were ordered. Page 7, February Trains.
Neill Farmer
  YM-Mundrabilla Minister for Railways

Location: Mundrabilla but I'd rather be in Narvik
Thanks Neill.Smile

(Some posters refer to locos and some refer to wagons as 'units'.
(Others refer to 'crossing loops' as 'passing lanes' and 'uncoupling' as 'decoupling' ....... Sad )
4,000 locos stored is a hell of a lot.
  james.au Chief Commissioner

Location: Sydney, NSW
I guess 4000 would count lots of smaller locos in that.  How many would be stored in Australia?  100-200?
  BrentonGolding Chief Commissioner

Location: Maldon Junction
Thanks Neill.Smile

(Some posters refer to locos and some refer to wagons as 'units'.
(Others refer to 'crossing loops' as 'passing lanes' and 'uncoupling' as 'decoupling' ....... Sad )
4,000 locos stored is a hell of a lot.
YM-Mundrabilla
And some posters refer to a thread that goes so far off topic after 6 or 7 posts as de-railed! Laughing

BG
  YM-Mundrabilla Minister for Railways

Location: Mundrabilla but I'd rather be in Narvik
Thanks Neill.Smile

(Some posters refer to locos and some refer to wagons as 'units'.
(Others refer to 'crossing loops' as 'passing lanes' and 'uncoupling' as 'decoupling' ....... Sad )
4,000 locos stored is a hell of a lot.
And some posters refer to a thread that goes so far off topic after 6 or 7 posts as de-railed! Laughing

BG
BrentonGolding
Reality was omitted for clarity.
  speedemon08 Mary

Location: I think by now you should have figured it out
Others refer to 'crossing loops' as 'passing lanes'
4,000 locos stored is a hell of a lot.
YM-Mundrabilla
Norfolk Southern has about 400 locomotives stored for various reasons at any given time, whilst UP has 1400 stored (maybe 10/20% of fleet stored for UP and NS?)

Also there are technical reasons that define a passing lane vs a loop.
  BDA Chief Commissioner

Location: Sydney
Be interesting to have an idea of how many new locos built vs how many completely refurbished and upgraded , like say the Dash 9 to AC4400 rebuild/upgrade .
The AC4400 probably isn't that far behind an ET44AC performance wise and would cost less and maybe have similar or better fuel consumption .

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