Logistics trial to reduce freight costs in NW Queensland

 

News article: Logistics trial to reduce freight costs in NW Queensland

The Queensland Government is funding a $1.

  bevans Site Admin

Location: Melbourne, Australia
“It is a critical link from the North West Minerals Province to the Port of Townsville and export markets beyond.

“However, many smaller mining operators still rely exclusively on road transport. “We want junior miners and potential new ventures, including in agriculture, to have access to the same efficiencies through freight trains that larger resource companies enjoy.

“TransBulk Logistics will use their technology and business model to establish a six-month proof-of-concept logistics coordination trial in the North West Minerals Province. “This would open up the potential for smaller operators to access rail transport by combining movements, reducing costs and making rail a more cost effective and attractive option.”
Somebody

This is a great idea as it will drive up volumes on rail and move smaller transport jobs to bulk rail operations.

Logistics trial to reduce freight costs in NW Queensland

Sponsored advertisement

  Graham4405 The Ghost of George Stephenson

Location: In exile
Until they work out that road transport is the preferred option due to lower costs.
  bevans Site Admin

Location: Melbourne, Australia
Until they work out that road transport is the preferred option due to lower costs.
Graham4405

How could that be the case when you would be sharing a train in the above pilot?
  Graham4405 The Ghost of George Stephenson

Location: In exile
Until they work out that road transport is the preferred option due to lower costs.

How could that be the case when you would be sharing a train in the above pilot?
bevans
If it wasn't the case it would have already happened. Do you think the businesses involved are stupid?
  YM-Mundrabilla The Ghost of George Stephenson

Location: Mundrabilla but I'd rather be in Narvik
“It is a critical link from the North West Minerals Province to the Port of Townsville and export markets beyond.

“However, many smaller mining operators still rely exclusively on road transport. “We want junior miners and potential new ventures, including in agriculture, to have access to the same efficiencies through freight trains that larger resource companies enjoy.

“TransBulk Logistics will use their technology and business model to establish a six-month proof-of-concept logistics coordination trial in the North West Minerals Province. “This would open up the potential for smaller operators to access rail transport by combining movements, reducing costs and making rail a more cost effective and attractive option.”

This is a great idea as it will drive up volumes on rail and move smaller transport jobs to bulk rail operations.

Logistics trial to reduce freight costs in NW Queensland
bevans
What does the linked article actually say? What does it tell us?
I cannot recall when I last read such a series of disjointed and uninformative spin statements.
  Sulla1 Chief Commissioner

“It is a critical link from the North West Minerals Province to the Port of Townsville and export markets beyond.

“However, many smaller mining operators still rely exclusively on road transport. “We want junior miners and potential new ventures, including in agriculture, to have access to the same efficiencies through freight trains that larger resource companies enjoy.

“TransBulk Logistics will use their technology and business model to establish a six-month proof-of-concept logistics coordination trial in the North West Minerals Province. “This would open up the potential for smaller operators to access rail transport by combining movements, reducing costs and making rail a more cost effective and attractive option.”

This is a great idea as it will drive up volumes on rail and move smaller transport jobs to bulk rail operations.

Logistics trial to reduce freight costs in NW Queensland
What does the linked article actually say? What does it tell us?
I cannot recall when I last read such a series of disjointed and uninformative spin statements.
YM-Mundrabilla

Best guess the $1.8-million is a transport subsidy or a network access discount to enable lower pricing for containers out of either Mt Isa or Cloncurry. I'm not sure the government would stump up cold hard cash towards any fixed infrastructure for a six month trial.
  bevans Site Admin

Location: Melbourne, Australia
“It is a critical link from the North West Minerals Province to the Port of Townsville and export markets beyond.

“However, many smaller mining operators still rely exclusively on road transport. “We want junior miners and potential new ventures, including in agriculture, to have access to the same efficiencies through freight trains that larger resource companies enjoy.

“TransBulk Logistics will use their technology and business model to establish a six-month proof-of-concept logistics coordination trial in the North West Minerals Province. “This would open up the potential for smaller operators to access rail transport by combining movements, reducing costs and making rail a more cost effective and attractive option.”

This is a great idea as it will drive up volumes on rail and move smaller transport jobs to bulk rail operations.

Logistics trial to reduce freight costs in NW Queensland
What does the linked article actually say? What does it tell us?
I cannot recall when I last read such a series of disjointed and uninformative spin statements.

Best guess the $1.8-million is a transport subsidy or a network access discount to enable lower pricing for containers out of either Mt Isa or Cloncurry. I'm not sure the government would stump up cold hard cash towards any fixed infrastructure for a six month trial.
Sulla1

Lowering the cost of shipping by aggregating shippers onto rail.  Makes a lot of sense and is what was the case prior to privatisation?
  Sulla1 Chief Commissioner

“It is a critical link from the North West Minerals Province to the Port of Townsville and export markets beyond.

“However, many smaller mining operators still rely exclusively on road transport. “We want junior miners and potential new ventures, including in agriculture, to have access to the same efficiencies through freight trains that larger resource companies enjoy.

“TransBulk Logistics will use their technology and business model to establish a six-month proof-of-concept logistics coordination trial in the North West Minerals Province. “This would open up the potential for smaller operators to access rail transport by combining movements, reducing costs and making rail a more cost effective and attractive option.”

This is a great idea as it will drive up volumes on rail and move smaller transport jobs to bulk rail operations.

Logistics trial to reduce freight costs in NW Queensland
What does the linked article actually say? What does it tell us?
I cannot recall when I last read such a series of disjointed and uninformative spin statements.

Best guess the $1.8-million is a transport subsidy or a network access discount to enable lower pricing for containers out of either Mt Isa or Cloncurry. I'm not sure the government would stump up cold hard cash towards any fixed infrastructure for a six month trial.

Lowering the cost of shipping by aggregating shippers onto rail.  Makes a lot of sense and is what was the case prior to privatisation?
bevans

There's two decisions that have contributed to the decline of rail's market share on the Mt Isa Line prior and since privatisation. First was QR's ARG (now Aurizon's Bulk Division) taking over the running of the Mt Isa Line in 2009 and dumping all freight that wasn't "Bulk" core business. Hundreds of freight containers went straight to road due to not being in the scope of a business group - and this is no doubt some of the freight this latest announcement is targetting.

In 2015 Direct Road-Train access to the Townsville Port began, and this, in combination with QR's Access Pricing until June 2019, made road cheaper than rail for almost anything that a truck can haul. Since July 2019 the Queensland Government has reduced access fees on the Mt Isa line, and there does seem to have been turnaround in rail business, particularly for Aurizon.
  freightgate Minister for Railways

Location: Albury, New South Wales
Would the above have been the case had aurizon not been privatised you seen to have a roads authority hell bent now on making freight on road cheaper than rail when there are many reasons why this should not be allowed to happen.
  Sulla1 Chief Commissioner

Would the above have been the case had aurizon not been privatised you seen to have a roads authority hell bent now on making freight on road cheaper than rail when there are many reasons why this should not be allowed to happen.
freightgate

The privatisation of Aurizon wouldn't have made the difference, pre-privatised QR was already making detrimental decisions to freight haulage on the line. What may have made a difference was the pricing of the Open Access regime. Cost of access is a proven issue, and the Queensland Government has intervened to reduce the pricing since 2019. More realistic pricing from the outset may have prevented the rise of the prime-mover over the last decade.

Alternatively, the fierce undercutting between rail competitors - as a result of Open Access - has also been detrimental to rail market share. The disasterous affair (largely attributed to Glencore) when Pacific National was obligated to take over all of Glencore's haulage contracts with Aurizon - without rollingstock or the money to obtain them - resulted in a massive modal shift to road at the beginning of 2017 that is still being unwound to this day. Aurizon lost business, sacked staff and PN lost money on that deal and eventually withdrew from renewing its contract. The events of 2017 is a poster child for "Rail vs Rail competition is great for putting freight on road", but wouldn't have happened without the cost competitiveness of road-trains to the Port of Townsville.
  freightgate Minister for Railways

Location: Albury, New South Wales
It proves what I have always thought about rail over the past 25 years the management are clueless and we have seen the biggest shift from rail to road since rail began in Australia.

Let’s not even talk about the poorly performing GWA management and business.

Sponsored advertisement

Subscribers: bevans

Display from: