The move follows media speculation that Queensland Rail is about to face an assault on its coal transportation business and Asciano will sign contracts with Rio Tinto and Xstrata to carry coal from their mines to the Dalrymple Bay and Gladstone ports.
But the statement from Asciano said no binding agreements have been signed and the company will make further disclosures “at the appropriate time”
The Australian newspaper reported that Asciano has to put in orders to buy locomotives and coal wagons to be built for the Queensland narrow-gauge rail tracks. Pacific National transports coal in New South Wales, but on standard gauge track.
The speculation follows the recent announcement by the Queensland Government of a major structural review of QR following the release of a review of the Goonyella coal supply chain by industry expert Stephen O’Donnell.
The Queensland Resources Council has been a long-time advocate of structural reform of QR “to encourage a stronger focus on providing a superior service to its customers, which in terms of bulk freight comes down to maximising shipments at the lowest long-term cost”
“In particular, QRC has been promoting with government and the QR Board an end to the vertical integration of QR’s monopoly below-rail and contestable above-rail services,” QRC chief executive Michael Roche said recently.
“From a customer perspective, one of the advantages of this separation is that regulation of the below-track returns on investment would become much simpler.
“There would also be a clearer distinction between the static capacity of a rail network and the variable capacity of the rolling stock that use it.”
Premier Peter Beattie said the O’Donnell review had put QR on notice to improve its performance.
“Even though their work to upgrade the system and provide more resources has been underway for some time, they need to lift their game even more,” Beattie said.
“There’s certainly a new-found resolve among industry participants – the miners, QR and the ports – to address the issues collaboratively acknowledging that no one party can be responsible for total supply chain performance.
“All parties accept that performance could have been better and are now focused on what can be done to lift capacity moving forward.”
Beattie said while QR would not be privatised, recent changes to its structure, including the creation of separate dedicated coal and bulk freight business groups, were intended to provide greater customer focus for the businesses and increase accountability.
“The aim of this process is to ensure we find the structure which best supports QR’s continuing national freight and coal business expansion,” he said.
“It is quite clear that QR is well positioned to become a significant competitor in the national logistics industry, specifically in QR’s bulk and general freight businesses.
“If QR does not become a national player and competitive with the likes of Toll, it will find it very difficult to survive.”
