Aurizon prepares to sell its Intermodal Division

 
  Sulla1 Chief Commissioner

The Australian is reporting the G&W/Macquarie consortium and Qube are two of four shortlisted groups bidding for Aurizon's  $176-million Intermodal Division.

Sponsored advertisement

  bevans Site Admin

Location: Melbourne, Australia
The Australian is reporting the G&W/Macquarie consortium and Qube are two of four shortlisted groups bidding for Aurizon's  $176-million Intermodal Division.
Sulla1

On offer from Aurizon are freight trains, wagons and several terminals, including one at Enfield in Sydney, the Dynon terminal in Melbourne, Forrestfield in Perth and Acacia Ridge in Brisbane.
  YM-Mundrabilla Minister for Railways

Location: Mundrabilla but I'd rather be in Narvik
Hopefully we will get someone who will compete strongly with road and PN in that order.
  nswtrains Chief Commissioner

Hopefully we will get someone who will compete strongly with road and PN in that order.
YM-Mundrabilla
I would bet on Genesee and Wyoming getting the nod. They are pretty good at running short line railroads.
  DalyWaters Chief Commissioner

Hopefully we will get someone who will compete strongly with road and PN in that order.
YM-Mundrabilla
One of the front bidders is Toll!

Who would have thought Toll would possibly go from once owning PN to now possibly owning Aurizon Intermodal?

Of course, it is a different Toll now, being owned by Japan Post.

Asking price is believed to be around $176 million.
  Beta4Me Locomotive Driver

By the sounds of all this, it appears that only the Interstate part is for sale, not the while thing including the Queensland part?

I would've thought that PN would've been a pretty keen bidder!
  bevans Site Admin

Location: Melbourne, Australia
Hopefully we will get someone who will compete strongly with road and PN in that order.
One of the front bidders is Toll!

Who would have thought Toll would possibly go from once owning PN to now possibly owning Aurizon Intermodal?

Of course, it is a different Toll now, being owned by Japan Post.

Asking price is believed to be around $176 million.
DalyWaters

We could be looking a new new rail operator entering the market?
  bingley hall Minister for Railways

Location: Last train to Skaville
Hopefully we will get someone who will compete strongly with road and PN in that order.
One of the front bidders is Toll!

Who would have thought Toll would possibly go from once owning PN to now possibly owning Aurizon Intermodal?

Of course, it is a different Toll now, being owned by Japan Post.

Asking price is believed to be around $176 million.

We could be looking a new new rail operator entering the market?
bevans

These financial journos just pull the names out of a hat. TOLL have run trains before and got out of the business. Much easier to let some other mug do the hard work.

As for someone's earlier comment re PN - would never get past the ACCC.
  bevans Site Admin

Location: Melbourne, Australia
Then are are possibly talking Qube?
  bingley hall Minister for Railways

Location: Last train to Skaville
Then are are possibly talking Qube?
bevans

Could be anyone at this stage - Aurizon have also retained the right not to proceed if they cant get the price they want. SCT would be interested, but might not be able to raise the cash. GWA with 50% shareholder Macquarie's cash would be a good bet.
  bevans Site Admin

Location: Melbourne, Australia
Then are are possibly talking Qube?

Could be anyone at this stage - Aurizon have also retained the right not to proceed if they cant get the price they want. SCT would be interested, but might not be able to raise the cash. GWA with 50% shareholder Macquarie's cash would be a good bet.
bingley hall

Good summary as I personally had not considered SCT but might be a good fit for a sound customer growth strategy.
  james.au Chief Commissioner

Location: Sydney, NSW
What could be the chances they sell this division, serve out the non compete clause in the sale contract and then reenter the market at a lower cost base?
  Sulla1 Chief Commissioner

Depending on who buys the intermodal division does raise the potential for Aurizon to then acquire that company without fear of interference from the ACCC and any forced divestments. But I'm not convinced the current management is looking that far ahead.
  james.au Chief Commissioner

Location: Sydney, NSW
Depending on who buys the intermodal division does raise the potential for Aurizon to then acquire that company without fear of interference from the ACCC and any forced divestments. But I'm not convinced the current management is looking that far ahead.
Sulla1

That could be one option, but I was thinking they'd get new locos/wagons and drivers etc and start from scratch.

If they keep shrinking they'll become a takeover target.
  DounutCereal Chief Train Controller

Location: Who knows.
Slightly off topic but I have to wonder if all those stored bulldogs are still allocated to intermodal or not. It could be a bit of a reunion if GWA were to get the sale and the locos
  M636C Minister for Railways

Slightly off topic but I have to wonder if all those stored bulldogs are still allocated to intermodal or not. It could be a bit of a reunion if GWA were to get the sale and the locos
DounutCereal
Sadly Aurizon don't still own any of the CLPs and CLFs.

GWA could have purchased them if they wanted any. I'm told that two have been sold but I'll believe it when they move.

Which locomotives belong to Intermodal is a good question...
6000s seem to turn up on coal trains on the North Coast and Illawarra, and were used on WA ore trains...

Does this sale include Queensland container trains? I'd expect so...

Peter
  petan Chief Commissioner

Location: Waiting to see a zebra using a zebra crossing!
The Australian is reporting the G&W/Macquarie consortium and Qube are two of four shortlisted groups bidding for Aurizon's  $176-million Intermodal Division.

On offer from Aurizon are freight trains, wagons and several terminals, including one at Enfield in Sydney, the Dynon terminal in Melbourne, Forrestfield in Perth and Acacia Ridge in Brisbane.
bevans
Just quietly watching with regard to the Acacia Ridge situation.
  acbeer91 Station Master

I think Aurizon's intermodal loco fleet consists of all their LDP's, most of their C44aci locos (6000's, 6020's & 6040's), X53 & X54, G516 & G534 and probably their 422's.
  neillfarmer Chief Train Controller

If the sale includes the Queensland intermodal service on the NCL a prospective buyer would then have an opening for other Queensland traffic. I can't see any long term strategic sense in abandoning intermodal work. Being competitive in this traffic surely would be a benchmark that Aurizon needs to achieve in order to have a long term future.
Neill Farmer
  MetroFemme Chief Train Controller

Why would they sell I don't understand at all since the company is in the freight business and selling intermodal would mean no interstate box forwarding. Makes no sense to me. Aren't they are rail company?
  YM-Mundrabilla Minister for Railways

Location: Mundrabilla but I'd rather be in Narvik
I think Aurizon's intermodal loco fleet consists of all their LDP's, most of their C44aci locos (6000's, 6020's & 6040's), X53 & X54, G516 & G534 and probably their 422's.
acbeer91
Does anyone have details of Aurizon's actual Intermodal locomotive and wagon fleet?

Who are their main customers and what are their traffic levels? Anyone have any details, please?
  bingley hall Minister for Railways

Location: Last train to Skaville
I think Aurizon's intermodal loco fleet consists of all their LDP's, most of their C44aci locos (6000's, 6020's & 6040's), X53 & X54, G516 & G534 and probably their 422's.
acbeer91
The LDPs are leased from Downer so would not be up for sale.
  bingley hall Minister for Railways

Location: Last train to Skaville
Why would they sell I don't understand at all since the company is in the freight business and selling intermodal would mean no interstate box forwarding. Makes no sense to me. Aren't they are rail company?
MetroFemme

There aren't a lot of bucks in long distance intermodal and that side of the business is not making a sufficient monetary return to satisfy Aurizon's shareholders.

Get rid of it. Simples.
  Beta4Me Locomotive Driver

There's plenty of money in long distance intermodal. Aurizon Interstate Intermodal is just too small, too inefficient and too incompetent to succeed at it - it has NEVER made a profit since inception.
  Big J Assistant Commissioner

Location: In Paradise
I think Aurizon's intermodal loco fleet consists of all their LDP's, most of their C44aci locos (6000's, 6020's & 6040's), X53 & X54, G516 & G534 and probably their 422's.
The LDPs are leased from Downer so would not be up for sale.
bingley hall
Thanks for clarifying, similarly I thought that Aurizon bought them out from Downer after the expiry of the original leases. As they are leased you are right they wouldn't be part of the deal.

Sponsored advertisement

Display from: