Aurizon prepares to sell its Intermodal Division

 
  petan Chief Commissioner

Location: Waiting to see a zebra using a zebra crossing!
Aurizon Superfreighter Guide Week Commencing Monday 24th October 2016 goo.gl/mzPBwV
Full URL
https://www.aurizon.com.au/~/media/aurizon/files/what%20we%20do/services/intermodal%20freight/guides/aurizon%20superfreighter%20guide%20october%202016.pdf

Thats got some good info, but a shocking part is on page 22 for example.  Depart Melbourne in the evening, freight available Cairns Friday morning.  Lets say 84 hours...  A truck would be back in Melbourne in that time....

How does PN compare?
Well James or anyone else, can you find the PN equivalent for us as I would be interested Smile

Well, 2MB4 (PN) leaves Melbourne about 830pm Monday too, arrives Acacia Ridge Wednesday early morning (3am).  Thats where i hit a bit of a stop - the QR NCL timetables don't seem to be public.
james.au
Yes, James, the QLD north coast portion is the stumbling block. The TT south of there has been on the ARTC site for years and updates are regular.

Sponsored advertisement

  YM-Mundrabilla Minister for Railways

Location: Mundrabilla but I'd rather be in Narvik
How does one sell a secret service?
G and W are just as bad.
  Big J Assistant Commissioner

Location: In Paradise
There's no narrow gauge intermodal in WA, all those operations are remaining within Aurizon's core bulk freight activities.
Sulla1
Thanks for clarifying Sulla.
  RTT_Rules Dr Beeching

Location: Dubai UAE
Aurizon Superfreighter Guide Week Commencing Monday 24th October 2016 goo.gl/mzPBwV
Full URL
https://www.aurizon.com.au/~/media/aurizon/files/what%20we%20do/services/intermodal%20freight/guides/aurizon%20superfreighter%20guide%20october%202016.pdf

Thats got some good info, but a shocking part is on page 22 for example.  Depart Melbourne in the evening, freight available Cairns Friday morning.  Lets say 84 hours...  A truck would be back in Melbourne in that time....

How does PN compare?
Well James or anyone else, can you find the PN equivalent for us as I would be interested Smile

Well, 2MB4 (PN) leaves Melbourne about 830pm Monday too, arrives Acacia Ridge Wednesday early morning (3am).  Thats where i hit a bit of a stop - the QR NCL timetables don't seem to be public.
Yes, James, the QLD north coast portion is the stumbling block. The TT south of there has been on the ARTC site for years and updates are regular.
petan

A truck would head directly north avoiding the coast until Townsville, I assume the whole route is rated for B-double. The trip time for the nearly 3000km journey is rated as 32hr in Google, not allowing for fuel, pee and other breaks. For a B-double with 2 drivers they could probably do it in 40hr.

For rail, has to go via Sydney and Brisbane
- Qld NCL is about 32hr (the old Sunlander wasn't much faster)
- Brisbane to Sydney about 18hr
- Sydney to Melbourne is about 14hr
(open to correction)
64hr, not including transfer at Brisbane + delay in Sydney. So 84hr seems plausible.
The Inland rail would cut off 8-10hr travelling time plus time lost in Sydney due to curfew and time in yard.

With the Inland complete the next bottle neck for rail is the Sunshine Coast. They need to finish the duplication and realignment to Nambour, then between Nambour and Nth Gympie (actually slightly further north, pull out some of those tight bends. Leaving single track is ok, for now.
  bingley hall Minister for Railways

Location: Last train to Skaville
I think we can scratch TOLL from any bidding for these assets?

Toll facing three-year turnaround: John Mullen
The chairman of the Japan Post-owned Toll Holdings says it will take three years to complete a turnaround of the embattled Australian logistics group, which he said had suffered from cultural and structural difficulties and a “lamentable’’ communication regime with its major shareholder.

John Mullen, who took up his role in January at the same time that Japan Post appointed former Linfox executive Michael Byrne as Toll managing director, said a restructuring program would result in a further 2000 job losses at Toll and a reduction in its business units from 24 to as few as 10.

He also revealed that Toll management was actively working on the sale or closure of a number of “poorly made and underperforming’’ acquisitions, particularly in the overseas freight forwarding business and most ­notably in ­Europe.......

“The core business of Toll is strong and we expect to see improvements each year from today, but anticipate that it will take three years to complete this turnaround,’’ Mr Mullen said in an interview with The Australian, his first public comments since Japan Post revealed in late April that it would book a shock $US3.6bn writedown on Toll.

“It was a reality check that was expected, but was perhaps a bit bigger than anybody thought.

http://www.theaustralian.com.au/business/companies/toll-facing-threeyear-turnaround-john-mullen/news-story/b33ce7771675ae3a21c92404154b56d7

The Australian
(The link may or may not work because of the paywall)
  james.au Chief Commissioner

Location: Sydney, NSW
I think we can scratch TOLL from any bidding for these assets?

Toll facing three-year turnaround: John Mullen
The chairman of the Japan Post-owned Toll Holdings says it will take three years to complete a turnaround of the embattled Australian logistics group, which he said had suffered from cultural and structural difficulties and a “lamentable’’ communication regime with its major shareholder.

John Mullen, who took up his role in January at the same time that Japan Post appointed former Linfox executive Michael Byrne as Toll managing director, said a restructuring program would result in a further 2000 job losses at Toll and a reduction in its business units from 24 to as few as 10.

He also revealed that Toll management was actively working on the sale or closure of a number of “poorly made and underperforming’’ acquisitions, particularly in the overseas freight forwarding business and most ­notably in ­Europe.......

“The core business of Toll is strong and we expect to see improvements each year from today, but anticipate that it will take three years to complete this turnaround,’’ Mr Mullen said in an interview with The Australian, his first public comments since Japan Post revealed in late April that it would book a shock $US3.6bn writedown on Toll.

“It was a reality check that was expected, but was perhaps a bit bigger than anybody thought.

http://www.theaustralian.com.au/business/companies/toll-facing-threeyear-turnaround-john-mullen/news-story/b33ce7771675ae3a21c92404154b56d7

(The link may or may not work because of the paywall)
bingley hall

Not necessarily, but probably yes.

If Toll recons they could move a bunch of their current road freight to rail, and achieve cost reductions such as through getting rid of trucks and drivers, then perhaps they could be interested.  Though can they work out how to get the rail to work in their current supply chain?  That would be the risk.  It would depend on whether the risk is seen to be worth it, which i suspect they won't want to run, so therefore probably agree with you BH.
  ParkesHub Chief Commissioner

I think we can scratch TOLL from any bidding for these assets?

Toll facing three-year turnaround: John Mullen
The chairman of the Japan Post-owned Toll Holdings says it will take three years to complete a turnaround of the embattled Australian logistics group, which he said had suffered from cultural and structural difficulties and a “lamentable’’ communication regime with its major shareholder.

John Mullen, who took up his role in January at the same time that Japan Post appointed former Linfox executive Michael Byrne as Toll managing director, said a restructuring program would result in a further 2000 job losses at Toll and a reduction in its business units from 24 to as few as 10.

He also revealed that Toll management was actively working on the sale or closure of a number of “poorly made and underperforming’’ acquisitions, particularly in the overseas freight forwarding business and most ­notably in ­Europe.......

“The core business of Toll is strong and we expect to see improvements each year from today, but anticipate that it will take three years to complete this turnaround,’’ Mr Mullen said in an interview with The Australian, his first public comments since Japan Post revealed in late April that it would book a shock $US3.6bn writedown on Toll.

“It was a reality check that was expected, but was perhaps a bit bigger than anybody thought.

http://www.theaustralian.com.au/business/companies/toll-facing-threeyear-turnaround-john-mullen/news-story/b33ce7771675ae3a21c92404154b56d7

(The link may or may not work because of the paywall)
bingley hall
They have a CEO who knows logistics very well. Railways? Not so much.
  james.au Chief Commissioner

Location: Sydney, NSW
They have a CEO who knows logistics very well. Railways? Not so much.
ParkesHub
I think a CEO who knows logistics very well would be just what is needed - if they can integrate rail into the logistics environment.  Linking first/last mile sectors with a rail sector (like SCT does) could make for a good cost saver for Toll.  Again though, the risk of actually achieving this might not be low.
  bingley hall Minister for Railways

Location: Last train to Skaville
They have a CEO who knows logistics very well. Railways? Not so much.
I think a CEO who knows logistics very well would be just what is needed - if they can integrate rail into the logistics environment.  Linking first/last mile sectors with a rail sector (like SCT does) could make for a good cost saver for Toll.  Again though, the risk of actually achieving this might not be low.
james.au
I think you are clutching at straw here James.

While I accept that an awful lot of things can change over time, let's not forget that about a decade ago TOLL made a conscious decision to walk away from being a rail operator.

Unlike SCT, rail is only a very small part of their overall business and therefore any savings from integrating rail where they can into their business will only amount to a pimple on the bum when it comes to the impact on their overall business.

There is also the small matter of stumping up with the $175 million purchase price. Facing $3.6bn worth of write downs from the business, their Japanese owners and their financiers won't be rushing out to take on more risk.

But then stranger things have happened.
  ParkesHub Chief Commissioner

They have a CEO who knows logistics very well. Railways? Not so much.
I think a CEO who knows logistics very well would be just what is needed - if they can integrate rail into the logistics environment.  Linking first/last mile sectors with a rail sector (like SCT does) could make for a good cost saver for Toll.  Again though, the risk of actually achieving this might not be low.
james.au
Yeah....nuh.. I worked for this bloke. It was on his watch that Linfox took the largest privately-held freight forwarder on NRC/PN and reduced it to a shell of it's former self. He knows his stuff but not the nuances of intermodal.
  ParkesHub Chief Commissioner

They have a CEO who knows logistics very well. Railways? Not so much.
I think a CEO who knows logistics very well would be just what is needed - if they can integrate rail into the logistics environment.  Linking first/last mile sectors with a rail sector (like SCT does) could make for a good cost saver for Toll.  Again though, the risk of actually achieving this might not be low.
I think you are clutching at straw here James.

While I accept that an awful lot of things can change over time, let's not forget that about a decade ago TOLL made a conscious decision to walk away from being a rail operator.

Unlike SCT, rail is only a very small part of their overall business and therefore any savings from integrating rail where they can into their business will only amount to a pimple on the bum when it comes to the impact on their overall business.

There is also the small matter of stumping up with the $175 million purchase price. Facing $3.6bn worth of write downs from the business, their Japanese owners and their financiers won't be rushing out to take on more risk.

But then stranger things have happened.
bingley hall
Stranger things indeed! FCL Transport nearly became part of Qantas. Just think...48'er reefers with the Red Roo logo. Anyway, didn't happen. All we got was a lousy Linfox logo!

I think Toll bid on NRC with Patrick as a preventive action rather than any plan to grow the intermodal business.
  james.au Chief Commissioner

Location: Sydney, NSW
Agreed on your points both, and @ParkesHub, I defer to your knowledge.  Though I do note the passage of time and that it does change organisations.

Re the Toll write-off, I think that is at the Japanese parent level and doesnt reflect the underlying business no?

Overall though, I guess I was trying to put an optimistic spin on it for the discussion!
  ParkesHub Chief Commissioner

Agreed on your points both, and @ParkesHub, I defer to your knowledge.  Though I do note the passage of time and that it does change organisations.

Re the Toll write-off, I think that is at the Japanese parent level and doesnt reflect the underlying business no?

Overall though, I guess I was trying to put an optimistic spin on it for the discussion!
james.au
All good! We need to be optimistic! Toll does some really good stuff and they are really crap at other things. Having seen Michael Byrne in full flight (and not in a good way), he should set a good course of action for the shareholder. Michael does not suffer fools gladly. The "f" word gets a lot of use Smile.
  bingley hall Minister for Railways

Location: Last train to Skaville
Posted on the Newsrail Facebook page, here is a list of the final Aurizon SG intermodal runs.

I think I read elsewhere that the Carrington-Botany service may continue through until March pending another operator being found.

Up


3MB7 12/12/17 (Melbourne) 14/12/17 (Brisbane)
3MP1 12/12/17 (Melbourne) 15/12/17 (Perth)
5MB7 14/12/17 (Melbourne) 16/12/17 (Brisbane)
6MP1 15/12/17 (Melbourne) 18/12/17 (Perth)
7MB7 16/12/17 (Melbourne) 18/12/17 (Brisbane)
7MP1 16/12/17 (Melbourne) 19/12/17 (Perth)
2MB7 18/12/17 (Melbourne) 20/12/17 (Brisbane)


Down


7BM7 16/12/17 (Brisbane) 18/12/17 (Melbourne)
7PM1 16/12/17 (Perth) 19/12/17 (Melbourne)
1BM7 17/12/17 (Brisbane) 19/12/17 (Melbourne)
2PM1 18/12/17 (Perth) 21/12/17 (Melbourne)
3BM7 19/12/17 (Brisbane) 21/12/17 (Melbourne)
3PM1 19/12/17 (Perth) 22/12/17 (Melbourne)
5BM7 21/12/17 (Brisbane) 23/12/17 (Melbourne)
  Mufreight Train Controller

Location: North Ipswich
Agreed on your points both, and @ParkesHub, I defer to your knowledge.  Though I do note the passage of time and that it does change organisations.

Re the Toll write-off, I think that is at the Japanese parent level and doesnt reflect the underlying business no?

Overall though, I guess I was trying to put an optimistic spin on it for the discussion!
All good! We need to be optimistic! Toll does some really good stuff and they are really crap at other things. Having seen Michael Byrne in full flight (and not in a good way), he should set a good course of action for the shareholder. Michael does not suffer fools gladly. The "f" word gets a lot of use Smile.
ParkesHub
Dont be surprised if STC does not enter the Queensland intermodal market, they have trucks running to North Queensland already.
  Mufreight Train Controller

Location: North Ipswich
Agreed on your points both, and @ParkesHub, I defer to your knowledge.  Though I do note the passage of time and that it does change organisations.

Re the Toll write-off, I think that is at the Japanese parent level and doesnt reflect the underlying business no?

Overall though, I guess I was trying to put an optimistic spin on it for the discussion!
All good! We need to be optimistic! Toll does some really good stuff and they are really crap at other things. Having seen Michael Byrne in full flight (and not in a good way), he should set a good course of action for the shareholder. Michael does not suffer fools gladly. The "f" word gets a lot of use Smile.
Dont be surprised if STC does not enter the Queensland intermodal market, they have trucks running to North Queensland already.
  bingley hall Minister for Railways

Location: Last train to Skaville
Agreed on your points both, and @ParkesHub, I defer to your knowledge.  Though I do note the passage of time and that it does change organisations.

Re the Toll write-off, I think that is at the Japanese parent level and doesnt reflect the underlying business no?

Overall though, I guess I was trying to put an optimistic spin on it for the discussion!
All good! We need to be optimistic! Toll does some really good stuff and they are really crap at other things. Having seen Michael Byrne in full flight (and not in a good way), he should set a good course of action for the shareholder. Michael does not suffer fools gladly. The "f" word gets a lot of use Smile.
Dont be surprised if STC does not enter the Queensland intermodal market, they have trucks running to North Queensland already.
Mufreight

There has never been any suggestion, or statement by the company. that they will or that they want to.

On the other hand they have trucks running in NSW and Victoria, but they still run trains. Funny old world innit Razz
  cuthbert Train Controller

Dont be surprised if STC does not enter the Queensland intermodal market, they have trucks running to North Queensland already.
"Mufreight"


I'd be very surprised!

Anyways, the Aurizon QLD NG Intermodal business being sold to PN/Linfox, now and always has catered for pallet loads, a thing PN and the other big rail players have dropped (thus SCT has grown). With the QLD pallet handling setup so entrenched in their operation, I find it hard to see how a new player could compete against it, unless the razors come out and PN/Fox slash and burn the pallet handling side of things in QLD, then there will be be huge job losses and SCT might be able to take it all (pallet loads)!
  Trainplanner Chief Commissioner

Location: Along the Line
I would for the time being think that SCT will not expand their rail business north of Bromelton on the narrow gauge.   Huge investment for them.  Yesterday on a seperate thread re the partnership of DP World and SCT to service Port Botany/Sydney to/from Parkes, will be where SCT will focus and my hunch is that will happen after the fire sale of Aurizon assets in January when SCT has an opportunity to pick up additional assets to bolster their current operation and enable the link to Port Botany with DP World.   This is similar to their Dooen to Port of Melbourne freighter which continues to grow in volumes and it gets SCT into all mainland capitals and ports as well as of course their core business model which has been so successful.

It would take a huge base load contract in QLD for SCT to go into narrow gauge.
  james.au Chief Commissioner

Location: Sydney, NSW
It would take a huge base load contract in QLD for SCT to go into narrow gauge.
Train-planner
Id imagine Woolworths would have a bit of a decent load for them to consider?  Both in terms of fruit/veg coming south and all items going north?
  bingley hall Minister for Railways

Location: Last train to Skaville
It's a show about nothing Jerry, absolutely nothing I tells ya Razz
  bevans Site Admin

Location: Melbourne, Australia
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.
  freightgate Minister for Railways

Location: Albury, New South Wales
SCT could do with the power so makes sense. Can the class run on all lines SCT use ?
  K-Class Chief Train Controller

Location: Melbourne
SCT could do with the power so makes sense. Can the class run on all lines SCT use ?
freightgate

The only line that the Aurizon did not use the LDP's on that is used by SCT is from Crystal Brook, SA to Parks, NSW.

As this rout is part of the ARCT main interstate lines I would assume they are all ready accredited for this line and if not only a fairly simple paperwork job to get them accredited.

The LDP's would be a great addition to the stretched SCT fleet.
  Clyde Goodwin2 Chief Train Controller

PARKES not Parks.

Sponsored advertisement

Display from: