Aurizon prepares to sell its Intermodal Division

 
  cuthbert Train Controller

Onlu seeing LDP005 and LDP008 running trains now for Aurizon intermodal.  I think LDP004, LDP006 and LDP007 have been handed back to EDI and hearing these will probably go to SCT.
"bevans"


In a conversation I had yesterday with a DOWNER/EDI fitter, I was told three LDPs are headed to SCT, but I wasn't told the numbers. There are also some LDPs stored somewhere that have been "ratted" for parts that may also end up with SCT - to be confirmed?

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  freightgate Minister for Railways

Location: Albury, New South Wales
Does downer service those locos in Victoria or elsewhere ?
  justapassenger Chief Commissioner

2x 6020 Class and an X Class were hauling an intermodal train up through the Adelaide Hills towards Melbourne around 6pm last night.

It was heavily overpowered, quite a short train with about a third of the flats carrying nothing, so perhaps more a repositioning move as business winds down rather than a real revenue service.
  bingley hall Minister for Railways

Location: Last train to Skaville
2x 6020 Class and an X Class were hauling an intermodal train up through the Adelaide Hills towards Melbourne around 6pm last night.

It was heavily overpowered, quite a short train with about a third of the flats carrying nothing, so perhaps more a repositioning move as business winds down rather than a real revenue service.
justapassenger

That would have been 7PM1. The table on the previous page lists the last revenue trains. The final Melbourne-Perth service has run, but there are still two more eastbound runs ex Perth.

There are strongly rumoured to be one or two westbound non revenue moves after those dates conveying wagons for storage at locations in WA.
  a6et Minister for Railways

2x 6020 Class and an X Class were hauling an intermodal train up through the Adelaide Hills towards Melbourne around 6pm last night.

It was heavily overpowered, quite a short train with about a third of the flats carrying nothing, so perhaps more a repositioning move as business winds down rather than a real revenue service.

That would have been 7PM1. The table on the previous page lists the last revenue trains. The final Melbourne-Perth service has run, but there are still two more eastbound runs ex Perth.

There are strongly rumoured to be one or two westbound non revenue moves after those dates conveying wagons for storage at locations in WA.
bingley hall
Around the midday mark on Sunday there was a NCL train hauled by two very dirty Aurizon Diesels, the dirt was primarily black very much what is seen on the loco's used on the coal road.  From what I saw of it, it only looked to have around 10 - 15% of the wagons with loads, and very much scattered along the consist.  

In what I have observed in the past that amount of empty wagons is unusual for North bound trains as against South bound.
  Trainplanner Chief Commissioner

Location: Along the Line
Not being fully across all of the issues in relation to SCT's locomotive fleet but certainly knowing that the SCT's in particular are very intensely utilized it has been mooted for a while now that SCT would be expected to have a very strong interest in the LDP's now coming out of Aurizon's withdrawal.

Whilst it has been indicated here that at least 3 LDP's are likely to go across I would not be surprised if they wouldn't be looking for more.

In view of SCT's recent addition of a 4th weekly round trip on the Bromelton-Melbourne run and the withdrawal of Aurizon obviously there will be a transfer of loading as is now being seen already and that has to mean increasing the current 4 round trips out to maximum length/tonnage which requires 3 locomotives plus potentially adding a 5th round trip.

Certainly the Chinese CSR units are much more prevalent but if we say 5 round trips per week and 3 locomotives per service that ties a pretty significant number of locomotives up just on Melb-Bromelton without taking into account what the flow effect from Aurizon's withdrawal is also likely to have on SCT services on the east-west corridor to WA.

Does anyone have any feel as to what this may result in in terms of future motive power requirements???

Obviously SCT has made a big investment in the Chinese build and we know it's been working hard to get performance and reliability up.   As well, SCT works its SCT class very hard with most east-west services running only 2 SCT units on very heavy, full length consists versus PN and Aurizon (previously) running 3 locos for equivalent size trains.   Even with a component change out style of maintenance regime, I'd imagine there comes a point where SCT will have to just like PN did with it's NR's undertake a much more substantial overhaul of the SCT class???

Thoughts???
  seb2351 Chief Commissioner

Location: Sydney
3 LDPs  transfer to SCT Altona tommorrow lunch time.
  x31 Chief Commissioner

Location: gallifrey
3 LDPs  transfer to SCT Altona tommorrow lunch time.
seb2351

Great news from where will the units leave?
  Graham4405 Minister for Railways

Location: Dalby Qld
3 LDPs  transfer to SCT Altona tommorrow lunch time.
seb2351
Purchased or leased?
  x31 Chief Commissioner

Location: gallifrey
What will happen to the 2 x X class?
  nscaler69 Deputy Commissioner

Location: There are no stupid questions, but there are a lot of inquisitive idiots.
What will happen to the 2 x X class?
x31
X53 was sold to CFCLA earlier this year after being stored fire damaged for several years.
X54 who knows, Aurizon may even keep it.
  x31 Chief Commissioner

Location: gallifrey
Last PM1 service ever has departed Perth. Last Aurizon East-West service ever
  Trainplanner Chief Commissioner

Location: Along the Line
Thanks for the updates.   Let's hope all of Aurizon's business gets picked up by the other 2 players PN and SCT.  Ceertainly PN's Dynon terminal seems incredibly busy even to the extent that at times trains both broad and standard gauge are held waiting for space within the terminal
  fzr560 Chief Train Controller

Last PM1 service ever has departed Perth. Last Aurizon East-West service ever
x31
at least until there is a change of mind/change of management/the smeg falls out of coal haulage.
  Sulla1 Chief Commissioner

CEO's don't last forever. Sooner or later one will come along and wonder why Aurizon doesn't have an intermodal presence...and a public presence for that matter. Moving its operations almost exclusively to the distant regions will put the company out of sight and out of mind to everyone apart from the environmental and anti-coal lobby groups.

Meanwhile Andrew Harding has "skillfully" (luckily more likely) wound up intermodal in time for an unexpected resource industry surge in 2018 that will take advantage of the ex-intermodal rollingstock and crews. No doubt he'll get to bask in that auspicious timing for a couple of years before any shareholder grumbling over lack of diversity can take hold.
  BrentonGolding Chief Commissioner

Location: Maldon Junction
CEO's don't last forever. Sooner or later one will come along and wonder why Aurizon doesn't have an intermodal presence...and a public presence for that matter. Moving its operations almost exclusively to the distant regions will put the company out of sight and out of mind to everyone apart from the environmental and anti-coal lobby groups.

Meanwhile Andrew Harding has "skillfully" (luckily more likely) wound up intermodal in time for an unexpected resource industry surge in 2018 that will take advantage of the ex-intermodal rollingstock and crews. No doubt he'll get to bask in that auspicious timing for a couple of years before any shareholder grumbling over lack of diversity can take hold.
Sulla1
There are so many questions left unanswered in all of this, only Aurizon management past and present know and they ain't going to tell us!

Did they deliberately re-position the business resources (financial and/or physical) towards bulk because there is a better rate of return to be had? (there is not an endless pool of money in any organisation)

Did they know that there was new business to be had coming up in 2018? (these are big, long term deals, they don't just spring up overnight, they take many months even years of planning and co-operation between mine owner and rail operator)

Was Aurizon's cost base just too high to compete in Inter modal as suggested by some on Railpage?

Will they return to Inter modal "down the track" with a lower cost business model?

Only time will tell.

BG
  bingley hall Minister for Railways

Location: Last train to Skaville
CEO's don't last forever. Sooner or later one will come along and wonder why Aurizon doesn't have an intermodal presence...and a public presence for that matter. Moving its operations almost exclusively to the distant regions will put the company out of sight and out of mind to everyone apart from the environmental and anti-coal lobby groups.

Meanwhile Andrew Harding has "skillfully" (luckily more likely) wound up intermodal in time for an unexpected resource industry surge in 2018 that will take advantage of the ex-intermodal rollingstock and crews. No doubt he'll get to bask in that auspicious timing for a couple of years before any shareholder grumbling over lack of diversity can take hold.

Did they know that there was new business to be had coming up in 2018? (these are big, long term deals, they don't just spring up overnight, they take many months even years of planning and co-operation between mine owner and rail operator)

.........
BG
BrentonGolding

What new business? I've seen a link to a story in the Townsville paper about a mining resurgence in 2018, but the way I read it it was all about the construction end of town. The tonnages are a year or two away yet.

I have seen a recent interview with Harding where he is very upbeat about coal - there are plenty of other industry leaders that do not share his enthusiasm.
  freightgate Minister for Railways

Location: Albury, New South Wales
LDP001 and LDP003 have arrived at SCT.
  BrentonGolding Chief Commissioner

Location: Maldon Junction

What new business? I've seen a link to a story in the Townsville paper about a mining resurgence in 2018, but the way I read it it was all about the construction end of town. The tonnages are a year or two away yet.

I have seen a recent interview with Harding where he is very upbeat about coal - there are plenty of other industry leaders that do not share his enthusiasm.
bingley hall
I was simply referring to recent posts on RP from Queensland posters and also to articles in various (mainly Qld) publications, some sighting a BS Oxford report.

As I say time will tell.

BG
  freightgate Minister for Railways

Location: Albury, New South Wales
PN will be taking over some of north Dynon yard for extra spade required for intermodal.
  Sulla1 Chief Commissioner

Aurizon has taken on substantial new coal and bulk tonnages in the latter half of 2017 that have not been openly reported and significant yet to be reported contracts are about to begin in 2018. Aurizon's 2016/2017 tonnages of 259-million tonnes are likely to surpass 275-million in 2017/2018 despite the end of intermodal.
  cuthbert Train Controller

Did they deliberately re-position the business resources (financial and/or physical) towards bulk because there is a better rate of return to be had? (there is not an endless pool of money in any organisation)
"BrentonGolding"


It's been a fact from the start, Aurizon/QRN/Interail have only been running trains at the expanse of QLD tax payers just to be n the face of PN because PN stole so many NG Coal and Intermodal contracts.

In other words, Aurizon was throwing money down the drain despite the obvious facts it was an Ivory Tower and the increasing losses because it needed to be seen to be fighting PN to "keep face". Hockridge has now gone and things will be run a little different in QLD, like it should have never attempted to take on PN from the start. As far as Intermodal, PN targets bulk products and containerised ONLY loads with "can do" employees and Aurizon has been stuck with the QR "tell me what to do boss" staff. The QR factor intrenched in Aurizon was always going to be it's downfall as far as returns are in question.

Just telling it like it is!
  Big J Assistant Commissioner

Location: In Paradise
Did they deliberately re-position the business resources (financial and/or physical) towards bulk because there is a better rate of return to be had? (there is not an endless pool of money in any organisation)


It's been a fact from the start, Aurizon/QRN/Interail have only been running trains at the expanse of QLD tax payers just to be n the face of PN because PN stole so many NG Coal and Intermodal contracts.

In other words, Aurizon was throwing money down the drain despite the obvious facts it was an Ivory Tower and the increasing losses because it needed to be seen to be fighting PN to "keep face". Hockridge has now gone and things will be run a little different in QLD, like it should have never attempted to take on PN from the start. As far as Intermodal, PN targets bulk products and containerised ONLY loads with "can do" employees and Aurizon has been stuck with the QR "tell me what to do boss" staff. The QR factor intrenched in Aurizon was always going to be it's downfall as far as returns are in question.

Just telling it like it is!
cuthbert
I think you have hit the nail on the head.

I think Aurizon will re-enter the intermodal market in a few years time after jettisoning the old enterprise agreements.

Similar to the coal miners in Central Qld that closed mines, either selling them or reopening them after the workforce had been retrenched to start with a lower cost base.

The short term is that they have stopped bleeding money and focused on their earning side.

However that market is finite and they will need to expand again. Most likely acquiring another operator with a low cost base. Give it 5 years.
  Sulla1 Chief Commissioner

And without an intermodal footprint Aurizon is now free to purchase any other intermodal operator without the threat of interference from the ACCC. It may well be a long term strategy for Aurizon (or at least should be).
  bevans Site Admin

Location: Melbourne, Australia
And without an intermodal footprint Aurizon is now free to purchase any other intermodal operator without the threat of interference from the ACCC. It may well be a long term strategy for Aurizon (or at least should be).
Sulla1

I think it is more than that.  I am curious as this to my mind means Aurizon are no longer a national operator without links between markets?

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