I think that this is a great outcome considering the alternatives (closure or near monopoly).

Would this have happened without ACCC action? Probably not.

While the ACCC are from perfect, at least they are effective. Watching the Banking Royal commission, ASIC and other financial regulators, they need to lead and be an effective regulator. They do need to use the BIG stick sometimes. ACCC are not afraid to take on the big end of town and their silks to create change.

While the deal with Linfox could have some negative effects too, but at least it gives transport customers choice. A great outcome.

My concern would be the propensity of Linfox Management to move the rail based carriage to truck in line with their current business practices?

I wouldn't worry too much about that. Linfox Intermodal is the old FCL Transport. It provides a carriage service to other Linfox divisions and sends as much by rail as it can. Divisions such as FMCG (Fast Moving Consumer Goods) still send B-Dubs interstate. Arnotts in Huntingwood NSW is a good example of this. It's really up to each division President to maximise his/her division's profitability. Intermodal is run by Ian Strachan and he's a good operator, I've worked with him. Can't say the same about the insipid CEO Mark Mazurek though. If Ian get's the support from the Board, you should see a fair bit of rail action.

Edit: The Linfox Board has also mandated significant and on-going reductions in carbon emissions. Rail is part of that strategy.

Its a sad memory I know when you mention the Arnott's factory at Huntingwood, a move they had to make out of Nth Strathfield, I can remember the amount of vans, and not just the 4 wheelers that were sent out of there 5 days a week to various country areas, a joining up again with rail would be good, there is a proposal but a while away yet for a new bulk goods terminal in the Erskine Park area when the new line from St Mary's goes ahead, few years away but if Linfox are eager to capture a lot back to rail who knows what can happen.

But, I wont hold my breath on that aspect of recapturing traffic though.

Linfox are a trucking company and they will put freight on the cheapest route. Expect some to go to road. Keen to understand how much Linfox traffic on rail into Brisbane from the south can be sent further north on rail ?

I think that this is a great outcome considering the alternatives (closure or near monopoly).

Would this have happened without ACCC action? Probably not.

While the ACCC are from perfect, at least they are effective. Watching the Banking Royal commission, ASIC and other financial regulators, they need to lead and be an effective regulator. They do need to use the BIG stick sometimes. ACCC are not afraid to take on the big end of town and their silks to create change.

While the deal with Linfox could have some negative effects too, but at least it gives transport customers choice. A great outcome.

My concern would be the propensity of Linfox Management to move the rail based carriage to truck in line with their current business practices?

I wouldn't worry too much about that. Linfox Intermodal is the old FCL Transport. It provides a carriage service to other Linfox divisions and sends as much by rail as it can. Divisions such as FMCG (Fast Moving Consumer Goods) still send B-Dubs interstate. Arnotts in Huntingwood NSW is a good example of this. It's really up to each division President to maximise his/her division's profitability. Intermodal is run by Ian Strachan and he's a good operator, I've worked with him. Can't say the same about the insipid CEO Mark Mazurek though. If Ian get's the support from the Board, you should see a fair bit of rail action.

Edit: The Linfox Board has also mandated significant and on-going reductions in carbon emissions. Rail is part of that strategy.

Its a sad memory I know when you mention the Arnott's factory at Huntingwood, a move they had to make out of Nth Strathfield, I can remember the amount of vans, and not just the 4 wheelers that were sent out of there 5 days a week to various country areas, a joining up again with rail would be good, there is a proposal but a while away yet for a new bulk goods terminal in the Erskine Park area when the new line from St Mary's goes ahead, few years away but if Linfox are eager to capture a lot back to rail who knows what can happen.

But, I wont hold my breath on that aspect of recapturing traffic though.

Going off topic for a moment. I worked on the refurbishment of Arnotts Huntingwood. Even when it was completed, it was a dog of a site. Cramped, etc. Only one thing going for it: It's right next to the biscuit making and a conveyor belt moves the new product across into the store. Actually, the storage is so bad that Linfox moves the biscuits off site to a new warehouse in Bungarribee about 1km away....a continual stream of trucks back'n'forth! Stupidity.

My concern would be the propensity of Linfox Management to move the rail based carriage to truck in line with their current business practices?

I wouldn't worry too much about that. Linfox Intermodal is the old FCL Transport. It provides a carriage service to other Linfox divisions and sends as much by rail as it can. Divisions such as FMCG (Fast Moving Consumer Goods) still send B-Dubs interstate. Arnotts in Huntingwood NSW is a good example of this. It's really up to each division President to maximise his/her division's profitability. Intermodal is run by Ian Strachan and he's a good operator, I've worked with him. Can't say the same about the insipid CEO Mark Mazurek though. If Ian get's the support from the Board, you should see a fair bit of rail action.

Edit: The Linfox Board has also mandated significant and on-going reductions in carbon emissions. Rail is part of that strategy.

Indeed and to quote the AFR article "Linfox said the acquisition would increase the scale and scope of its services throughout Queensland and "strategically position" it for the future growth of the proposed inland rail line"

Doesn't sound like a move from Rail to road to me, sounds more like re-positioning for the future.

BG

Linfox are a trucking company and they will put freight on the cheapest route. Expect some to go to road. Keen to understand how much Linfox traffic on rail into Brisbane from the south can be sent further north on rail ?

Linfox are like Toll, SCT, etc. A logistics company. If it stuck to trucking, it's be out of business by now.

I really do hope this is going to be positive for the customers across the entire east coast but specifically Queensland north coast line.  Am I right in assuming Linfox will only get Queensland based assets?

I must be dumb. First one company AZ can't make any money hauling containers in Queensland. So they sell the operation to another company Linfox, who will then get the first company to do the work for them. If there isn't enough meat on the bone for one dog, how are two going to survive?

I must be dumb. First one company AZ can't make any money hauling containers in Queensland. So they sell the operation to another company Linfox, who will then get the first company to do the work for them. If there isn't enough meat on the bone for one dog, how are two going to survive?

I must be dumb. First one company AZ can't make any money hauling containers in Queensland. So they sell the operation to another company Linfox, who will then get the first company to do the work for them. If there isn't enough meat on the bone for one dog, how are two going to survive?

Us mere mortals will never know but Aurizon clearly wanted out of everything bar Bulk as it believes the margins are higher and the job easier than other areas of the rail business. So if they wanted to they could have been cost shifting within the business to make intermodal look worse than it was and therefore justify the shut down.

There could of course be myriad other things such as the above mentioned legacy costs, lazy business practices, fat in middle and other management positions etc that a new player may be able to weed out.

Andrew Harding for whatever reason come hell or high water wanted out of Intermodal and he doesn't seem to care what he has to do to get there.

BG

I'm just trying to get some clarification about Aurizon's Dynon Terminal; has that gone to QUBE now?

Interestingly, 2 new terminals are also moving to Linfox. Longreach and Emerald. Far from the east coast....maybe Mt Isa will also follow.

Interestingly, 2 new terminals are also moving to Linfox. Longreach and Emerald. Far from the east coast....maybe Mt Isa will also follow.

I believe the Cloncurry and Mt Isa Terminals will fall outside of this agreement, not having been part of the intermodal network for several years. The future use of Longreach will be interesting, as it will provide a theoretical rail to road trucking footprint into the North West and the Northern Territory for freight moving in and out of Brisbane, something that hasn't been exploited by Aurizon and its predecessors or rail competitors.

The existing Warrego/Landsborough/Barkly Highway Corridor between Brisbane and the Northern Territory Border - that Longreach sits in the middle of - is carrying between 1.0-million and 5.0-million tonnes per annum west of Roma and between 5.0-million tonnes to 10-millon tonnes per annum east of Roma, so there's room for combined rail/road hauls out of Longreach if Linfox wanted to pursue options for greater rail use.

The existing Warrego/Landsborough/Barkly Highway Corridor between Brisbane and the Northern Territory Border - that Longreach sits in the middle of - is carrying between 1.0-million and 5.0-million tonnes per annum west of Roma and between 5.0-million tonnes to 10-millon tonnes per annum east of Roma, so there's room for combined rail/road hauls out of Longreach if Linfox wanted to pursue options for greater rail use.

I'm just trying to get some clarification about Aurizon's Dynon Terminal; has that gone to QUBE now?

and another interstate operator has been kicking the tyres around Townsville.

These are not small volumes - I assume intermodal type traffic?  I wonder if Watco might want to tap into them too?