Council needs to fast-track rail before gridlock
First train ride re-enacted for Queensland Rail's 150th birthday
Nambour a better option: Woombye anti-rail stabling group
South west Queensland pushes for more rail services for cattle
Tilt Trains set for a major overhaul
Ipswich celebrates heritage at Rail Museum on Open Day
Two rail lines earmarked for northern Australia
The $55.8 million dual gauge rail line from Acacia Ridge to Bromelton remains unfinished
Police investigate if fallen powerlines on Gold Coast train line work of vandals
Sourcing critical railway upgrade funding needs cool heads and smart solutions
Coking coal prices have experienced their biggest jump in at least four years, after Cyclone Debbie shut down Queensland’s main coal rail artery.
The price of the steel ingredient jumped $US23.40, or 15 per cent, to a three-month high of $US175.70 a tonne, according to The Steel Index.
This was the biggest one-day move in any direction since the index started in 2013.
While most of the mines in Queensland, the world’s biggest coking coal exporter, remain operational, the Goonyella railway line that moves coal from Bowen Basin mines to terminals at Mackay is expected to be closed for five weeks because of landslides.
Analysts have estimated between 10 million and 20 million tonnes of coal could be lost.
The outage came amid negotiations for June quarter coal contract prices, which have now been suspended.
Credit Suisse analyst Matthew Hope said contract prices had been expected to settle at about $US160 a tonne, down from $US285, before the storm. He said what would now happen to settlement was anyone’s guess.
Whitehaven Coal, which is able to supply coking coal from NSW, benefited from the outage, with shares climbing 17c, or 5.5 per cent, to a four-year high of $3.27.
Shares of Aurizon Holdings, which owns the railway lines, fell 6c to a one-month low of $5.13.
Insurance losses across NSW and Queensland have so far climbed to an estimated $306 million, as companies brace for total fallout of about $1.2 billion in claims in the cyclone’s wake. More than 28,000 claims have now been lodged, according to the Insurance Council of Australia, but several cities in Queensland and northern NSW are still bracing for more flood damage.
Insurance Australia Group said it was still too early to measure the financial impact, although it had received more than 3500 claims.
Morgan Stanley analyst Daniel Toohey said IAG’s maximum financial loss from Cyclone Debbie was capped at $140m, but it would exhaust its catastrophe budget, with three months still left in the financial year.
While the financial impact to Suncorp was likely to be nil, thanks to its reinsurance deal and additional catastrophe cover, the company was likely to exceed its catastrophe budget by about $100m, Mr Toohey said.
The National Farmers Federation has cited industry groups estimating damage to crops of up to $1bn. The peak body for Australian sugar growers is estimating cane losses of about $150m.
The extent of damage following Cyclone Debbie has been compared to Cyclone Oswald in 2013, which caused storms and floods leading to $1.2bn in insurance losses.
This article first appeared on www.theaustralian.com.au
About this website
Railpage version 3.10.0.0037
All logos and trademarks in this site are property of their respective owner. The comments are property of their posters, all the rest is © 2003-2021 Interactive Omnimedia Pty Ltd.
You can syndicate our news using one of the RSS feeds.