Aurizon and CBH sign long-term agreement for WA grain haulage

 
  james.au Minister for Railways

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  emerald-a Junior Train Controller

Says it covers all of CBH's rail needs so i presume it means they are replacing Watco completely
  james.au Minister for Railways

Location: Sydney, NSW
Says it covers all of CBH's rail needs so i presume it means they are replacing Watco completely
emerald-a
What i thought as well.

Big loss for Watco...
  emerald-a Junior Train Controller

I wonder if it is purely cost related or if Watco's inability to ramp up services when required played a part.

The latter seems to be a gripe with Graincorp on their Queensland deal  as well if the rumours are to  be believed.
  fzr560 Chief Train Controller

I wonder if it is purely cost related or if Watco's inability to ramp up services when required played a part.

The latter seems to be a gripe with Graincorp on their Queensland deal  as well if the rumours are to  be believed.
emerald-a
You paint an amusing picture. Watco have a reputation as a low-cost operator, so one would expect low cost was a significant part of Watco winning the CBH, Graincorp-Qld contracts. And now the grain marketers have sad-face because Watco don't have significant resources on hand for bumper seasons. Sounds like they got what they paid for.
  freightgate Minister for Railways

Location: Albury, New South Wales
What will Watco do now can they chase other business in WA ?
  freightgate Minister for Railways

Location: Albury, New South Wales
Aurizon and the CBH Group have signed a long-term rail haulage and maintenance contract covering all rail requirements for CBH’s Western Australian grain harvests. The performance-based agreement has an initial term of six years, with options to extend to 10 years.

Aurizon will begin hauling for CBH later this month, delivering from regional rail receival sites that feed into export terminals at Geraldton, Kwinana, Albany and Esperance. CBH handles an average annual harvest of 14 million tonnes of grain, with approximately 60% currently on rail.
  JNSymes Junior Train Controller

What will Watco do now can they chase other business in WA ?
freightgate
They have Qube in their camp, so that will help, i.e like the Intermodal and Nickel jobs
  Sulla1 Chief Commissioner

What will Watco do now can they chase other business in WA ?
freightgate

Watco will probably focus on its standard gauge container traffic to Fremantle and look for growth on the standard gauge Kalgoorlie corridor, it has easy access to lease rollingstock for that, and was able to quickly take over Aurizon nickel contracts when they came up.

On narrow gauge it only owns two locos in Western Australia, and with next to zero narrow gauge rollingstock available for lease it probably won't go after the big aluminina and iron ore business, which would require large capital outlays to purchase new equipment. It has existing rail infrastructure contracts at the moment with Arc Infstructure. New narrow gauge container traffic that it develops itself is probably the only way forward, maybe southwest lithium, but once again, that will depend on rollingstock availability. Alternative grain logistics companies might be an option too.
  bevans Site Admin

Location: Melbourne, Australia
I would like to see some intermodal development on NG as business growth.  Where would the first service make sense?
  sam6778 Junior Train Controller

Location: Rockingham, WA
On narrow gauge it only owns two locos in Western Australia, and with next to zero narrow gauge rollingstock available for lease it probably won't go after the big aluminina and iron ore business, which would require large capital outlays to purchase new equipment. It has existing rail infrastructure contracts at the moment with Arc Infstructure. New narrow gauge container traffic that it develops itself is probably the only way forward, maybe southwest lithium, but once again, that will depend on rollingstock availability. Alternative grain logistics companies might be an option too.
Sulla1
I believe Qube own approx. 25 container wagons currently stored in Pinjarra.  I guess Watco could use them them if ever required.  Cheers (In attached link 18 March 2014)  News 2014 (hothamvalleyrailway.com.au)

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