QUBE BlueScope Steel Contract

 
  meh Chief Commissioner

Location: Sydney
Hi all,

Read in a few places that QUBE has won a BlueScope contract, but haven't been able to find out more details.

Logically this implies that they have taken a contract (or several?) from PN, but the question is which workings will QUBE be taking over? Surely it will require a huge investment in rollingstock to haul the product, as well as locomotives (though they have awarded UGL a contract to produce 4 locally built locomotives).

Cheers,

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  Dangersdan707 Chief Commissioner

Location: On a Thing with Internet
Apparently its 2022 onwards, however I heard that it was a joint operation with SCT with with them sharing the load on SG and Qube taking over the Long Island steel service. A quick google for 'Qube Bluescope contract' comes up with this

Bluescope Steel was expected to become Qube's biggest customer by revenue after the company signed a new 10-year contract to haul materials on the east coast, winning work previously undertaken by Pacific National.
Qube pitched itself to Bluescope as a logistics group rather than just a rail operator, and planned to add freight from other parties to 1.8km metre trains, Mr James said. Qube planned to spend about $73 million buying locomotives and to lease other equipment so it was ready to haul steel for Bluescope in early 2022. Qube also signed a transport and logistics contract with Shell Australia.
AFR
from
https://www.afr.com/companies/infrastructure/qube-blames-virus-for-weaker-profits-forecast-20200224-p543vl

Perhaps the Long Island steel will become a bit more interesting now?Smile
  bevans Site Admin

Location: Melbourne, Australia
Hi all,

Read in a few places that QUBE has won a BlueScope contract, but haven't been able to find out more details.

Logically this implies that they have taken a contract (or several?) from PN, but the question is which workings will QUBE be taking over? Surely it will require a huge investment in rollingstock to haul the product, as well as locomotives (though they have awarded UGL a contract to produce 4 locally built locomotives).

Cheers,
meh

Raises lots of questions in my mind actually and hopefully we can find some answers.  There is still parts of bluescope steel transport which were on rail but PN dumped to truck.  Somerton is one location and there are others.

The post mentions east coast meaning what will happen with Whyalla?

PN trains like WM2 for example are they blue scope loading or other loading?

Hoping Qube can pickup more work for rail with this contract.
  freightgate Minister for Railways

Location: Albury, New South Wales
Can you tell us more about the Shell contract ? Will we see petroleum transport thankfully go back to rail from road for some routes ?
  Fatty Deputy Commissioner

Location: Melbourne
Apparently its 2022 onwards, however I heard that it was a joint operation with SCT with with them sharing the load on SG and Qube taking over the Long Island steel service. A quick google for 'Qube Bluescope contract' comes up with this

Bluescope Steel was expected to become Qube's biggest customer by revenue after the company signed a new 10-year contract to haul materials on the east coast, winning work previously undertaken by Pacific National.
Qube pitched itself to Bluescope as a logistics group rather than just a rail operator, and planned to add freight from other parties to 1.8km metre trains, Mr James said. Qube planned to spend about $73 million buying locomotives and to lease other equipment so it was ready to haul steel for Bluescope in early 2022. Qube also signed a transport and logistics contract with Shell Australia.
from
https://www.afr.com/companies/infrastructure/qube-blames-virus-for-weaker-profits-forecast-20200224-p543vl

Perhaps the Long Island steel will become a bit more interesting now?Smile
Dangersdan707
Interesting that none of the parties involved have made announcements about the contract. From what I've heard it's not a done deal yet.
  meh Chief Commissioner

Location: Sydney
Can you tell us more about the Shell contract ? Will we see petroleum transport thankfully go back to rail from road for some routes ?

Could be this https://www.fullyloaded.com.au/logistics-news/1910/qube-hails-huge-shell-australia-contract-win
A minor thing that people seem to forget is that Qube is not a rail company per the likes of PN and SSR, its a Logistics Company. I will take Bingly for his word on this as he's been right about this many times in the past.
Dangersdan707

Which is an interesting point; we'd all like to think Qube means more rail services but as an overall ligistics company, they may opt to move things onto road?

In terms of the rollingstock, I reada post from Facebook (I know, not a reliable source at the best of times) that said the rollingstock for WM-MW etc. steel trains is owned by BlueScope; I doubt this is the case as PN inherited most of it from NRC/Freightcorp/Freight Australia.

Interesting times anyway. Thanks for the responses all Smile
  fzr560 Chief Train Controller

A couple of back of the napkin calculations on how PN currently services this contract on the east coast. I'll ignore the local Victorian and Melbourne-Perth stuff for the moment. The main East coast trains appear to be Whyalla-Newcastle, Port Kembla-Melbourne and Port Kembla-Brisbane. The assumptions are 48 hr turn-around on all 3 routes, trains running 6 days a week, 50 platforms at 20m per platform for 1000m trains and 3 locos per train. This requires 18 locos and 300 platforms. If Qube are investing $70 million in Rolling Stock, I'd expect to see a lot more trucks.
  M636C Minister for Railways

A couple of back of the napkin calculations on how PN currently services this contract on the east coast. I'll ignore the local Victorian and Melbourne-Perth stuff for the moment. The main East coast trains appear to be Whyalla-Newcastle, Port Kembla-Melbourne and Port Kembla-Brisbane. The assumptions are 48 hr turn-around on all 3 routes, trains running 6 days a week, 50 platforms at 20m per platform for 1000m trains and 3 locos per train. This requires 18 locos and 300 platforms. If Qube are investing $70 million in Rolling Stock, I'd expect to see a lot more trucks.
fzr560
My understanding is that the Whyalla Newcastle trains are not included.
Neither Whyalla Steelworks nor Newcastle belong to Bluescope for a start.
When they say East Coast they mean it.

I believe it is just the MW and WM trains and the broad gauge trains that are included.
Qube have stated that they will be using G class on the BG trains

They have said they will be buying new steel wagons.

Peter
  Fatty Deputy Commissioner

Location: Melbourne
A couple of back of the napkin calculations on how PN currently services this contract on the east coast. I'll ignore the local Victorian and Melbourne-Perth stuff for the moment. The main East coast trains appear to be Whyalla-Newcastle, Port Kembla-Melbourne and Port Kembla-Brisbane. The assumptions are 48 hr turn-around on all 3 routes, trains running 6 days a week, 50 platforms at 20m per platform for 1000m trains and 3 locos per train. This requires 18 locos and 300 platforms. If Qube are investing $70 million in Rolling Stock, I'd expect to see a lot more trucks.
My understanding is that the Whyalla Newcastle trains are not included.
Neither Whyalla Steelworks nor Newcastle belong to Bluescope for a start.
When they say East Coast they mean it.

I believe it is just the MW and WM trains and the broad gauge trains that are included.
Qube have stated that they will be using G class on the BG trains

They have said they will be buying new steel wagons.

Peter
M636C
Where have they said this? I've been unable to find any official announcements.
  fzr560 Chief Train Controller

A couple of back of the napkin calculations on how PN currently services this contract on the east coast. I'll ignore the local Victorian and Melbourne-Perth stuff for the moment. The main East coast trains appear to be Whyalla-Newcastle, Port Kembla-Melbourne and Port Kembla-Brisbane. The assumptions are 48 hr turn-around on all 3 routes, trains running 6 days a week, 50 platforms at 20m per platform for 1000m trains and 3 locos per train. This requires 18 locos and 300 platforms. If Qube are investing $70 million in Rolling Stock, I'd expect to see a lot more trucks.
My understanding is that the Whyalla Newcastle trains are not included.
Neither Whyalla Steelworks nor Newcastle belong to Bluescope for a start.
When they say East Coast they mean it.

I believe it is just the MW and WM trains and the broad gauge trains that are included.
Qube have stated that they will be using G class on the BG trains

They have said they will be buying new steel wagons.

Peter
M636C
Thanks for the clarification. Curious that 1.8km trains are mentioned. My understanding was that these were only approved on the trans or under TOC waiver. Are you ruling out quad T's on the Long Island?
  Nightfire Minister for Railways

Location: Gippsland
Thanks for the clarification. Curious that 1.8km trains are mentioned. My understanding was that these were only approved on the trans or under TOC waiver. Are you ruling out quad T's on the Long Island?
fzr560
1800 metre trains have been able to operate on the ARTC Interstate network In Victoria for many years now (selected crossing loops on the Western line were extended)
  bingley hall Minister for Railways

Location: Last train to Skaville
Interesting that none of the parties involved have made announcements about the contract. From what I've heard it's not a done deal yet.
Fatty

Dear, oh dear, oh dear.......From a month ago

https://qube.com.au/wp-content/uploads/2020/02/Half-Year-Results-Announcement-1.pdf

Towards the end of the period, Qube entered into a binding agreement with Bluescope Steel Limited to provide interstate steel train services and the provision of intermodal terminal operations at Qube's North Dynon facility in Melbourne.

This is expected to become Qube’s largest individual contract and customer (by revenue) once fully operational, with operations scheduled to commence in January 2022.

Qube presently expects to spend around $73 million on new rolling stock and infrastructure to support this contract, supplemented with additional leased equipment.
  Fatty Deputy Commissioner

Location: Melbourne
Thanks. Glanced through it but didn't spot this.
  freightgate Minister for Railways

Location: Albury, New South Wales
PN business continues to decline apart from coal which will also decline shortly as counties reuse spending and China tanks.

A large contract by PN lost. Does it include Perth and ADELAIDE steel
Trains ?
  bingley hall Minister for Railways

Location: Last train to Skaville
Interesting that none of the parties involved have made announcements about the contract.
Fatty

Of course, PN don't have to make an announcement as they are not a listed company, and Bluescope don't have to make an announcement because it doesn't materially affect their business.

I'd really like some confirmation of the earlier rumour that SCT have won the steel business west of Melbourne, but also being unlisted they are under no obligation to make an announcement.
  bevans Site Admin

Location: Melbourne, Australia
Interesting that none of the parties involved have made announcements about the contract.

Of course, PN don't have to make an announcement as they are not a listed company, and Bluescope don't have to make an announcement because it doesn't materially affect their business.

I'd really like some confirmation of the earlier rumour that SCT have won the steel business west of Melbourne, but also being unlisted they are under no obligation to make an announcement.
bingley hall

Who owns PN now?  Is the owner listed?
  Sulla1 Chief Commissioner

Interesting that none of the parties involved have made announcements about the contract.

Of course, PN don't have to make an announcement as they are not a listed company, and Bluescope don't have to make an announcement because it doesn't materially affect their business.

I'd really like some confirmation of the earlier rumour that SCT have won the steel business west of Melbourne, but also being unlisted they are under no obligation to make an announcement.

Who owns PN now?  Is the owner listed?
bevans

Pacific National is owned by an investment consortium that inlcudes a number of Canadian retirement fund groups, including the CPP Investment Board and the British Columbia Investment Management Corporation. Singpore's GIC Private Investment, China's China Investment Corporation and New York's Global Infrastructure Partners were also involved in the consortium. Since its sale in August 2016 Pacific National has not been a listed company and is privately held.
  Carnot Minister for Railways

There are serious concerns about the future of Bluescope's Port Kembla #5 Blast Furnace and whether it'll be shutdown in the current COVID-19 crisis.  To restart it is a $700 million job....  which might kill it forever.

https://www.9news.com.au/videos/bluescope-closure-could-impact-hospital-systems/ck8cstw8800140gmewc3yq6vb

I suspect that it will stay open simply because it's one of Australia's biggest suppliers of medical oxygen.
  meh Chief Commissioner

Location: Sydney
There are serious concerns about the future of Bluescope's Port Kembla #5 Blast Furnace and whether it'll be shutdown in the current COVID-19 crisis.  To restart it is a $700 million job....  which might kill it forever.

https://www.9news.com.au/videos/bluescope-closure-could-impact-hospital-systems/ck8cstw8800140gmewc3yq6vb

I suspect that it will stay open simply because it's one of Australia's biggest suppliers of medical oxygen.
Carnot
I'm normally very hesitant to say 'the government should bail them out' to any private business; but in this case they should keep it going for the sake of hospitals and healthcare system as a whole.

I'm interested to see where Qube will get their rollingstock from; unless the plan is to use leased container wagons and containerize everything.On that; the wagons I assume are owned by PN; but would things like the RH/RV butterboxes; coil cradles 'containers', wire baskets etc. be owned by PN or BlueScope?

Cheers
  bingley hall Minister for Railways

Location: Last train to Skaville
Interesting that none of the parties involved have made announcements about the contract.

Of course, PN don't have to make an announcement as they are not a listed company, and Bluescope don't have to make an announcement because it doesn't materially affect their business.

I'd really like some confirmation of the earlier rumour that SCT have won the steel business west of Melbourne, but also being unlisted they are under no obligation to make an announcement.
bingley hall

SCT have confirmed (verbally) that they have won the contract for the Bluescope business from Melbourne to Adelaide and Perth.

The Whyalla business is not Bluescope so stays with PN.
  freightgate Minister for Railways

Location: Albury, New South Wales
From where  will the trains operate in MELBOURNE ?

Dynon MFT looks unlikely and the government has removed the operations tterminal.
  speedemon08 Mary

Location: I think by now you should have figured it out
From where  will the trains operate in MELBOURNE ?

Dynon MFT looks unlikely and the government has removed the operations tterminal.
freightgate
It's almost as if Qube lease Nth Dynon from Victrack.
And once the steel traffic gets handed over the PN trains running into North Dynon can run into the MFT
  nscaler69 Deputy Commissioner

Location: There are no stupid questions, but there are a lot of inquisitive idiots.
https://qube.com.au/wp-content/uploads/2020/02/Half-Year-Results-Announcement-1.pdf
"Qube entered into a binding agreement with Bluescope Steel Limited to provide interstate steel train services and the provision of intermodal terminal operations at Qube's North Dynon facilityin Melbourne."

&

https://www.aumanufacturing.com.au/ugl-wins-rail-contracts-worth-180-million
"UGL has won contracts to manufacture four railway locomotives ....
The company, part of the CIMIC Group, will make four locomotives in Newcastle over a period of 18 months for Qube logistics.
Qube has recently won contracts with Shell and Bluescope steel."

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