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Australian Coal Group Calls for Breakup of Queensland Rail
in-en.com  2007-7-18 14:30:34  

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Coal mining companies in Australia's Queensland state, which export A$18 billion ($16 billion) of the fuel a year, want the state government to break up Queensland Rail to reduce constraints on overseas shipments.

Mining companies may seek to buy parts of the rail network to ease congestion between the railroad and ports, according to e-mailed speech notes of Michael Roche, chief executive officer of the Queensland Resources Council, who spoke today at a Sydney conference.

Coal exporters Rio Tinto Group and Xstrata Plc, facing as much as a 17 percent shortfall in meeting orders out of the nation's second-largest coal port at Dalyrmple Bay in Queensland, in May said they may invest in ports and rail to ease bottlenecks costing the industry A$2 billion a year.

``There is an opportunity for government to restructure Queensland Rail, so that it can focus on providing a superior service to its customers,'' said Roche in his speech notes. ``Government may also want to consider offering some ownership to users.''

The Queensland Resources Council represents mining companies including Rio and Xstrata.

The council and the Queensland government agreed review constraints on port and rail in the northeastern state earlier this year. They appointed Stephen O'Donnell, a former chief executive officer of freight operator Pacific National, to conduct the review. The review will finish in the next three weeks, Roche said.

Seven mining companies have said they are willing to pay A$27 million toward building a railroad between Bowen Basin and the Abbott point export terminal, Roche said.

 


 
Author:Tan Hwee Ann  From:Bloomberg  Edit:fenghua
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