RailPower are a seperate group based in Goulburn who hire locomotives.Okay then, thanks Raichase
Regional Port Enterprises (?) is RPE, as I understand it. A subsidiary company of El Zorro or something along those lines.
I have been told that Zorro has to close its doors today. Apparently ordered by courts. Sister company RPE is not far behind.If El Zorro had receivers appointed then it appears they have found it such a basket case they have requested the courts to wind it up (liquidation) post haste. Usually receivers at least try and erk something out even if it enough for their fees. Cupboard must have been very bare. Should not take too long before a liquidator's report is available. I wonder whether the liquidator will recommend that ASIC look at any corporate offences?
TRAIN operator El Zorro Transport has ceased trading."Australian Securities and Investment Commission documents show Consolidated Rail Leasing filed the petition in the Supreme Court of NSW last week." Well, maybe they closed down to avoid trading whilst insolvent but they are going to be wound up. Little bit confusing as to what is going on. Maybe a voluntary liquidation. An insolvent company cannot continue to exist.
The rail company voluntarily shut down its operations yesterday, blaming the loss of a contract with mining company Iluka Resources and unpaid payments from Cargill for its financial problems.
RELATED COVERAGEEl Zorro Transport director Ray Evans told The Weekly Times last week his company had owed Cargill $2 million but had a repayment plan in place.
- El Zorro court application
Mr Evans said Cargill had stopped making payments for work carried out during the previous four weeks, a claim disputed by the grain trader.
A Cargill spokesman said the grain trader was well in advance of its payments to El Zorro Transport.
Mr Evans told The Weekly Times last week one of the problems with El Zorro Transport was that the trading and accreditation functions of the rail operator sat within the one company.
He said that if he was to run a rail transport company again – and he was confident of doing so – he would separate the trading and accreditation functions.
The Weekly Times understands any rail company wanting to operate in Victoria has to be accredited by the Department of Transport and have public liability insurance of $250 million dollars as two major requirements.
Insurance policy premiums to cover public liability of $250 million costs about $1 million.
Yesterday, Mr Evans also shut down Regional Port Enterprizes Pty Ltd, of which he was sole director and owner.
It had about 60 employees.
Neither RDE or El Zorro have been placed in liquidation.
According to the Australian Securities and Investment Commission documents, both companies are still registered entities.
A rail industry source said El Zorro still had DoT accreditation as a rail operator.
ASIC documents show that on April 30, Regional Port Enterprizes (Aust) Pty Ltd was established, along with Railway Employment Co Pty Ltd.
The sole director and owner of both new companies is Mr Evans’ sister, Pamela Lopez.
The rail industry source said neither of the new companies had DoT accreditation.
Rumours have been circulating about El Zorro’s financial problems for many months but the company has consistently denied it was struggling.
Iluka Resources and Cargill were the company’s two biggest clients.
Cargill leased to El Zorro about 170 rail wagons it had built in China and shipped to Australia in 2009 and 2010.
“We are firmly focused on ensuring that we have operators to move our grain,” a Cargill spokesman said.
“We have contracts with Pacific National and GrainCorp. We are looking at securing longer term rail logistics.”
Another company leasing rolling stock to El Zorro was Consolidated Rail Leasing.
CRL took action in the Supreme Court of NSW two weeks ago to wind up El Zorro.
Other groups are also owed money by El Zorro.
The Castlemaine and Maldon Railway Preservation Society said in a newsletter it had not been paid by El Zorro for the lease of one of its locomotives for nine months, straining its cash flow.
Just wondering who would acquire El Zorro's assets if it has any like locomotives and wagons which are not leased from other companies. And what about all the employees (drivers, shunters etc). Where would they be looking for work? Vline and Metro? PN, Aurizon, QUBE, SCT? If any of these companies take over these contracts from El Zorro, they would need new employees, logically they would hire the ex-El Zorro employees.
The Warrnambool Container Freight service seems to still be going ahead, I was in Warnnambool today and saw the containers being loaded with CFCLA/ Metro's B76 and El Zorro's Y145 sitting by waiting for their time to depart.seems that a 3rd company has been setup by the sounds of that audio grab, with accreditation transfered to that. They obviously are continuing to run trains. Interesting to see how long it all lasts. Directors can be held responsible for the debts of their companies these days.
Details about the wind-up from 2GB in Sydney online now at http://www.2gb.com/article/el-zorro-transportSomeone should show the Junee guys and Ray Hadley this thread and the post by Measwell from 5 Jun where Evans closed down RPE, but being a well prepared spiv, on 30 April in preparation had created RPE (Aus) and REC in his sisters name.
I would just like to add my thanks to JimYarin's for Stuart@Asciano's and PN's approach to the problem. Good to see a rail operator operating a little bit more openly when needed.
How is this allowed to happen ?
thats is to say How is is ABLEto happen.
Surely if "That Bloke over there " hasnt paid his bills then who would deal with "that bloke over there "
Itgs not a huge industry I would have thought.
Welcome to the real world, this type of thing happens daily all around the globeAm fully aware of shonkiness globally. The point I wasnt suggesting is this isnt a huge market ( world scale ) here. Everyone knows everyone. Especially at that level.
For the benefit of those that haven't seen it elsewhere, one would assume that CFCLA, are in the process of recovering their EL's that had been parked at Oaklands. in a multi day operation that started yesterday the wagons from the train will be stored at a couple of smaller sidings along the line back to Benalla, with the 80 that's on the train apparently staying at oaklands (different owner?). EL's will end up in Melbourne later in the week by accounts.I believe the ELs (or a certain amount of horsepower) are leased to Cargill and not EZ.
Also of note that a VL has been authorized, along with one of AWB's G's to do the work. First run of a VL to oaklands
T386 and S302 still running ballast train at Benalla 302 had to be jump started. It seems strange to send more locos to pick up other locos at Oaklands why not just send crews would cost less.somthing to do with the locos at Oaklands have been sitting to long and need a mechanical inspection of some sort before running.