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FUTURE OF FREIGHT Don Telford CEO
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Bulk Services Intermodal 405 locomotives 8,525 wagons 234 locomotives
WHO IS PACIFIC NATIONAL Bulk Services 405 locomotives 8,525 wagons Intermodal 234 locomotives 4,814 wagons Operates through 5 terminals Main heading to fit here as required
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Pacific National PACIFIC NATIONAL RESTRUCTURE
Main heading to fit here as required Bulk Services Intermodal Operations Services Coal Forwarders Asset Management Grain Express Procurement Industrial Products SteelLink Maintenance General Freight Shipping PN Queensland PN Tasmania
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Sale 50% of Pacific National
UPDATE ON PACIFIC NATIONAL Sale 50% of Pacific National Victorian Government buy back of regional rail network Grain business Hunter Valley Coal services Acacia Ridge Terminal Enterprise Agreement
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Total Domestic Freight Task (btk)
AUSTRALIA’S FUTURE FREIGHT TASK Australian land freight task has been estimated to double between 2000 and 2020 Continued rapid growth in coal and minerals sector in Australia Total Domestic Freight Task (btk) Main heading to fit here as required
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Major investment in road and rail Fuel prices are fluctuating
WHAT A TIME FOR RAIL Major investment in road and rail Fuel prices are fluctuating Intermodal rail has major potential for growth Focus on climate change Rail can deliver social and environmental benefits
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10 trains each way, each day = ZERO semi-trailers
WHY RAIL MAKES SENSE 10 trains each way, each day = ZERO semi-trailers Sydney to Melbourne Sydney to Melbourne Main heading to fit here as required 9 x more energy efficient 9 x less energy efficient 1.2% transport fatalities 94% transport fatalities 0.3% total CO2 emissions 12% total CO2 emissions
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Preaching to the converted NO ACTION
WHERE ARE WE GOING WRONG No sense of urgency Same messages Same presentations Same conversations Preaching to the converted NO ACTION
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“THIS INVESTMENT IS NEEDED NOW - IN FACT IT WAS NEEDED YESTERDAY”
THREE YEARS AGO Pacific National Presentation - AusRail 2003 “Infrastructure investment and high access fees, compared to road, act as barriers to increasing capacity on some corridors” “North South Corridor – at its limits today – yet $25 million spent on a few passing loops and automatic signaling would enable the industry to go from 20% of market share Sydney/Brisbane to around 37%” “THIS INVESTMENT IS NEEDED NOW - IN FACT IT WAS NEEDED YESTERDAY”
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Infrastructure improvements
NORTH SOUTH CORRIDOR North South Corridor 2003 2006 2009 Market Share 20% ? Infrastructure improvements
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Pacific National starter pack
CONTRIBUTING FACTORS NEXT 3 YERAS Pacific National starter pack Infrastructure improvements 5 to 6 years away More track speed restrictions No investment in above rail – no return Competition Customers
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Productivity Commission Pacific National
WHAT IS THE INDUSTRY SAYING ARTC QR Productivity Commission Pacific National
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RAILWAY OR THE HIGHWAY Main heading to fit here as required
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Election year approaching Focus on climate change
NOW OR NEVER The timing is right Election year approaching Focus on climate change Waiting 5 to 6 years - not an option Less talk, more action
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Zero access fees N/S corridor next 4 years
SHORT TERM ACTIONS Reduce access fees NOW Zero access fees N/S corridor next 4 years Road pays 5% - Rail pays 27% No logic to rail user charges Solution easy to administer Road not expected to provide commercial return to Government - why should rail?
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Bring forward Inland rail Remove access fees
LONG TERM SOLUTION Bring forward Inland rail Remove access fees Introduce Swedish pricing model Introduce locomotive registration Increase fuel surcharge
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Increase volume of freight on rail
ACHIEVES THE RIGHT OUTCOMES Increase volume of freight on rail Reduce CO2 emissions and road fatalities More incentive for investment in fuel saving R&D More incentive to invest in rolling stock and terminals New entrants to enter the market - more competition
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Less talk More action
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