PN increase hold in QLD

 
  seb2351 Chief Commissioner

Location: Sydney
I saw this pop up on my work email the other day, and it certainly looks like that PN are further consolidating their strong position in QLD. Funny, when you consider the opposite is happening in NSW if you look at the hunter valley!

Apologies if this has been posted here before.

http://www.smh.com.au/business/toll-signs-qld-freight-deal-with-asciano-20131223-2zty9.html

Transport group Toll will provide Asciano with at least 90 per cent of its Queensland rail freight volumes from next year in a new 13-year deal between the companies.
Asciano's subsidiary Pacific National Rail, as part of the deal, also will buy five Queensland rail terminals from Toll Holdings for $71 million.
The deal means Pacific National Rail will take over the north Queensland rail service of Toll's business from February 1 next year.
Pacific National Rail will buy Toll's intermodal rail terminals at Cairns, Townsville, Mackay, Rockhampton and Brisbane offering employment to 60 Toll staff.
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The agreement includes a commitment from Toll to provide a minimum of 90 per cent of its Queensland intrastate rail volumes on Pacific National Rail services, which includes general freight.
Asciano is forecasting a 5.0 per cent fall in earnings before interest and tax in the Pacific National Rail division for fiscal 2014.
Chief executive John Mullen said that despite the soft domestic economic conditions hurting the intermodal business he believed growth could be achieved through improvement in the efficiency, performance and productivity of its rail service.
Asciano shares had fallen one cent to $5.66, while Toll stocks had risen six cents to $5.58.


Read more: http://www.smh.com.au/business/toll-signs-qld-freight-deal-with-asciano-20131223-2zty9.html#ixzz2oS2rfodM

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  Expost Deputy Commissioner

Dunno about freight, but when one of their, I believe 3, consists in the Blackwater system sits shut down in Blackwater yard for 3 or 4 days, then their coal cant be doing too well down here.
  gsxxxr_750 Junior Train Controller

No mention of them losing the Coles contract in their media release.

PN have two coal consists parked up in Moranbah with some brand new locos that have been sitting there for a while now.
  bevans Site Admin

Location: Melbourne, Australia
No mention of them losing the Coles contract in their media release.

PN have two coal consists parked up in Moranbah with some brand new locos that have been sitting there for a while now.
gsxxxr_750

Did PN or Toll loose the Coles contract and to whom?

Regards
Brian
  Sulla1 Chief Commissioner

Did PN or Toll loose the Coles contract and to whom?

Regards
Brian
"bevans"


Aurizon picked up the contract, which has resulted in heavier loadings on their Townsville and Cairns trains and the extension of a daily Brisbane to Rockhampton freight to Mackay.

This buyout of the Toll terminals should allow PNQ to now solicit traffic from freight forwarders other than Toll and offer more run through freight from the standard gauge that isn't Toll traffic. I'm thinking steel and maybe cement could start showing up on PNQ trains soon.
  bayside1 Station Master

I always find this type of discussion interesting from a total rail view. PN wins contract from AURIZON, or AURIZON wins business from PN.  

I am not sure how the industry as whole can achieve " I won the contract from trucking company xyz", and the new terminal handles more trains and loadings in Regional Australia with less trucks on the road.
  Fatty Assistant Commissioner

Location: Melbourne
Did PN or Toll loose the Coles contract and to whom?

Regards
Brian
bevans
Toll lost the Coles contract to Aurizon but it has resulted in reduced volumes for PNQ - especially to Cairns. There are strong rumours going around that Coles are quite unhappy with Aurizon's performance and looking to return to Toll.

I am not sure how the industry as whole can achieve " I won the contract from trucking company xyz", and the new terminal handles more trains and loadings in Regional Australia with less trucks on the road.
bayside1
I think this is a real problem in the industry at the moment. We rarely hear of freight moving from road to rail - it usually just moves between rail operators.
  Fatty Assistant Commissioner

Location: Melbourne

This buyout of the Toll terminals should allow PNQ to now solicit traffic from freight forwarders other than Toll and offer more run through freight from the standard gauge that isn't Toll traffic. I'm thinking steel and maybe cement could start showing up on PNQ trains soon.
Sulla1

This is where there's potential for some road based freight to come over to rail. Many of PNs southern customers won't put freight on PN trains in Queensland as they have to go through Toll. I wouldn't be surprised if we see narrow gauge PN trains being load in Acacia Ridge in the very near future.
  Sulla1 Chief Commissioner

US railroads were still going through this starvation freight strategy into the nineties, but now most of their domestic intermodal growth is coming from trucking companies. PN and Aurizon both need to go down the path of convincing the likes of Lindsay Fox, Australia Post and DHL they can offer an alternative to long haul trucking in Australia (either by price, velocity or reliability) if they want to achieve the intermodal growth experienced in the US. But as a starter, I suspect this move by PN could see some road hauled freight move to rail in Queensland. The Bruce Highway has absorbed most of the freight growth as North Queensland's population has grown by 50% in the last decade while rail tonnages have remained static. And some of the freight that has moved to road during the last ten years is the freight PN couldn't load at the Queensland Toll terminals and the freight it didn't have the capacity to move. Now PN has some free capacity and the ability to load anyone's containers (or other freight) at its terminals...which means perfect timing to convert some road freight to rail as far as I can see. I've got my fingers crossed this will actually happen.
  Sulla1 Chief Commissioner

This is where there's potential for some road based freight to come over to rail. Many of PNs southern customers won't put freight on PN trains in Queensland as they have to go through Toll. I wouldn't be surprised if we see narrow gauge PN trains being load in Acacia Ridge in the very near future.
Fatty

Sorry to repeat pretty much what you said Fatty, we must have been writing the same thing at the same time Laughing
  Fatty Assistant Commissioner

Location: Melbourne
Sorry to repeat pretty much what you said Fatty, we must have been writing the same thing at the same time Laughing
Sulla1

You said it better Sulla. Wink

I'm looking forward to seeing what this year brings for exactly the reasons you suggest. With capacity available and trains not being allocated exclusively to Toll, PN is actively pursuing work in Queensland.
  Expost Deputy Commissioner

Again, it doesn't look like their foothold in Coal South is improving. One of their consists has been sitting in the down road at Blackwater for the last 2 weeks approx. Last weekend, another was stowed at Gracemere for at least 2 days.
  Trainplanner Chief Commissioner

Location: Along the Line
I think you're right in your assessment Sulla1.  Access to terminals in key centres is one of the big constraints for all operators operating in intermodal.  This was the case up until recently at Dooen (Horsham) in Victoria.  Brand new terminal bit being used by one operator.  took over a year of very tough negotiation but now QUBE is also running out of their and both companies seem to be getting a lot of new business from road.

I think thew similar change will see that happen in North Queensland.
  Expost Deputy Commissioner

3 PN coal trains stowed between Rockhampton and Blackwater today. One at Gracemere, one at Westwood, and one at Blackwater. Glad I don't work for them.
  bevans Site Admin

Location: Melbourne, Australia
I think you're right in your assessment Sulla1. Access to terminals in key centres is one of the big constraints for all operators operating in intermodal. This was the case up until recently at Dooen (Horsham) in Victoria. Brand new terminal bit being used by one operator. took over a year of very tough negotiation but now QUBE is also running out of their and both companies seem to be getting a lot of new business from road.

I think thew similar change will see that happen in North Queensland.
Trainplanner


To be fair Horsham was still available. Qube could have gone there.
  Trainplanner Chief Commissioner

Location: Along the Line
Hi bevans.  Local Council placed enormouus pressure to push them out f Horsdham which is partly why QUBE stopped running whilst the Dooen agreement was reached.  That's why terminal availability is such an issue all over the country and the move to multi user terminals now.
  bevans Site Admin

Location: Melbourne, Australia
Hi bevans. Local Council placed enormouus pressure to push them out f Horsdham which is partly why QUBE stopped running whilst the Dooen agreement was reached. That's why terminal availability is such an issue all over the country and the move to multi user terminals now.
Trainplanner


It still did not stop them using the terminal if they really wanted.  That part of town lends itself well to a rail terminal as it is not the prettiest part of Horsham.
  Trainplanner Chief Commissioner

Location: Along the Line
I agree with you.  I think this part of Horsham is a back water and the freeight depot had no adverse impact.  Even so at least we have two rail operators back running again which is the big positive.

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