Queensland

Early construction underway in Brisbane on the Cross River Rail project.

Labor turns screws over Cross River Rail funding

WITH THE UNOFFICIAL FEDERAL election campaign focused on South East Queensland in mid-February, Opposition leader Bill Shorten criticised the Coalition Government for not contributing to Brisbane’s $5.4 billion Cross River Rail project.

Bill Shorten has vowed to provide $2.24 billion to Cross River Rail if the Labor Party wins at the federal election. The Coalition has argued the project doesn’t need Commonwealth funding, as the Queensland Government – led by Labor premier Annastacia Palaszczuk – has said it will fully fund the venture. The Coalition has also justified its refusal to fund Cross River Rail with analysis from Infrastructure Australia. The independent advisor last year said the latest iteration of the project did not meet the necessary cost-benefit benchmark to warrant listing as a Priority Project – a listing which would more directly command Federal support. But Labor has stuck to its guns at both state and federal levels, saying the project passed cost-benefit testing in the past, and deserved funding long ago. On Wednesday, Shorten renewed his support for the project, pledging to supply $2.24 billion in funding, and to ensure 770 Queensland apprentices work on its delivery.

Labor’s federal MP for Rankin, Jim Chalmers, criticised the Morrison Government – also on tour in South East Queensland in February to unveil funding for other road and rail infrastructure – for missing the boat on a critical project. “Morrison is joking if he thinks he can front up to Queensland and ignore the fact he hasn’t put a dollar into our most important infrastructure project,” Chalmers was quoted by the Courier Mail. “Failure to build the Cross River Rail will put a handbrake on the region’s ability to grow, and will put more pressure on already congested roads.”

The Coalition’s minister for urban infrastructure, Alan Tudge, again dismissed any possibility of the party funding Cross River Rail a day after Shorten’s comments.

“There won’t be [funding], and that’s because the Queensland Government has said it’s fully funded,” Tudge told 4BC Drive host Mark Braybrook.

“Our focus has been elsewhere. If they’re fully funding [Cross River Rail], it enables us to be able to put money into other projects.”

“The Premier would argue the reason they’re doing that is because they’re not getting any money from the Federal Government,” Braybrook posited.

“Well, they’ve said that for a long time that it’s a fully funded project,” Tudge replied. “Now, you wouldn’t expect us – I mean, if someone says that something’s fully funded, then you don’t expect someone else to then put money in, because it’s already catered for.”

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Aurizon accepts CQCN undertaking, will work for improvements

AURIZON HAS FORMALLY LODGED an access undertaking for the Central Queensland Coal Network which conforms with the final decision of the Queensland Competition Authority, but says it will continue to work with its coal miner customers on a more favourable deal. The rail operator in mid-February confirmed it would move forward with terms conforming to those set by the Queensland Competition Authority (QCA), despite its continued insistence the terms are unreasonable. Aurizon owns the Central Queensland Coal Network (CQCN) track used by coal miners to reach export markets, but must conform to the access undertakings limitingits revenue to levels deemed fair bythe QCA.

After a particularly unfavourable set of draft terms were announced by the QCA in December 2017 for the next undertaking, known as UT5, Aurizon spent the better part of 2018 challenging the authority in and out of court to secure better terms. A final set of terms, released by the QCA in December 2018, was slightly more favourable for the rail operator, but still far from its ideals.

Aurizon had until February 18 to respond to the final decision. When the date came, it conceded to accept the terms, but vowed to work with stakeholders on a more favourable agreement.

If such an agreement is reached, Aurizon says it can lodge a Draft Amending Access Undertaking for consideration by the QCA. “An approved Amending Access Undertaking would modify the conforming Access Undertaking to reflect any agreement reached with the industry,” Aurizon said.

19pc profit dip Aurizon applied the QCA’s final revenue terms to its below rail business for its half-yearly financial reports, and conceded it will have to refund $61 million to customers as a result of the new access terms. A 19 per cent dip in net profit left it

GE says its Movement Planner solution has helped its customers achieve higher velocity, lower dwell times and improved on-time performances across their networks. Photo: GE

ARTC CHOOSES GE FOR NEWCASTLE

SYDNEY METRO Sydney Metro City & Southwest will include 31km of tunnels. T he ARTC’s network control site in Newcastle is described as its “nerve centre” for all Hunter Valley rail operations. The system helps move more than 24,000 tonnes of coal per hour, and tens of thousands of coal, freight, grain and passenger trains each year.

ARTC managing director and chief executive John Fullerton said the government-owned track operator planned to use Movement Planner to better plan and optimise rail traffic on the network, with changes made in real time.

“The Hunter Valley rail network is one of the busiest and most complex in the country, supporting the largest coal export port in the world,” Fullerton said.

“As bulk freight demands grow, rail operators like ARTC and supply chains like the Hunter Valley coal network need to be creative in the way they respond so the Australian economy doesn’t miss out. That’s why we have conducted a world-wide search to find globally proven solutions that will improve our network productivity and efficiency.”

GE says Movement Planner considers multiple factors including train schedules, traffic-control systems and train movements relative to each other, and then develops an optimised traffic plan for the trains throughout the network.

The Chicago-based GE Technology says existing Movement Planner users have reported an increased visibility of network operations, higher velocity, lower dwell time across the network, and improved on-time performance across their networks.

Jonathan Vandervoort, ARTC group executive for the Hunter Valley, said the operator had developed a strong focus on driving and improving network performance through close work with its customers.

“Through the ARTC Network Control Optimisation program, the Movement Planner solution will allow us to improve transport capacity and efficiency, and provide better service performance,” he said.  The Australian Rail Track Corporation has selected GE Transportation’s Movement Planner solution for its Hunter Valley network control optimisation program.

ARTC manages the track that makes up the Hunter Valley rail network. Photo: RailGallery.com.au with $227 million in the firsthalf of FY19. “Today’s financial year results reflect the headwinds highlighted in August 2018 at our full year reporting, as well as the impacts from the regulator’s final decision on the UT5 Access Undertaking,” managing director Andrew Harding said. “The regulator’s final decision … included a 6 per cent revenue uplift compared to the draft decision,” he noted. “This included increases in the maintenance allowance and the Weighted Average Cost of Capital.”

Earnings per share were 11.4 cents, down 18 per cent. Earnings before interest and tax were down 16 per cent, to $406 million. Revenue was down 7 per cent, to $1.46 billion. Aurizon said its bulk business was impacted by the early closure of the Cliffs iron ore business in WA in June 2018, and in coal, volumes were impacted by supply chain constraints, weather events and protected industrial action.

“In addition, costs increased due to higher maintenance activities in bringing rollingstock back into service and in supporting future growth volumes,” the company said. For the full FY19, Aurizon’s guidance for underlying EBIT remains between $390 million and $430 million. “This accounts for the weather-related events in North Queensland during January and February 2019 and the cessation of the Mt Gibson contract (end of mine life) in January 2019, but remains contingent on no other major weather impacts or changes to operating conditions occurring during 2HYFY2019,” the company said. Aurizon’s above rail coal haulage volumes remain within the previously advised guidance of 215-225 million tonnes. Aurizon has said the Queensland Competition Authority’s terms mean a less flexible maintenance regime.

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40km of major washouts on Mt Isa Line

Queensland was hit by an historic rainfall event in late January/early February.

RECEDING FLOODWATERS IN Queensland’s northwest allowed Queensland Rail crews to begin assessing the full extent of damage to the Mt Isa Line in late February, with early reports showing damage across 307 kilometres of track.

Queensland Rail chief executive Nick Easy updated the public on the state of the Mt Isa Line on February 20, saying early assessments showed extreme erosion at 204 sites, including roughly 40 kilometres of major track washouts and 20 kilometres of track scouring.

“Work is underway to confirm required repairs and expected recovery timeframes, taking into account optimum use of all industry resources, plant and equipment.”

The Mt Isa Line was closed in early February when northern Queensland was hit by an historic rainfall event. A Pacific

National freight train was stranded on the line, and Easy said work was continuing at Nelia – 50 kilometres east of Julia Creek – to assess the full extent of work requiredthere. “While ground conditions still aren’t dry enough to accommodate the heavy machinery required for Pacific National to recover the train and wagons, we are hopeful that – weather conditions permitting – Pacific National can commence this process late this week.” An exclusion zone of 20 metres has been established around the train, and fencing will progressively be arranged around the site, Easy said.

19 of the train’s wagons carrying zinc concentrate, and two carrying lead concentrate, have sustained damage, according to Easy. Assessments are being made to identify potential impacts.

Elsewhere, crews continue to get a

solid idea of damage done. 71 bridges have been inspected and 16 confirmed as damaged. 100,000 cubic metres of ballast or fill is estimated to be required to repair damaged track. And QR has already had10,000 sleepers delivered to Hughenden and Cloncurry in anticipation of repair works.

“All available resources are being mobilised to undertake repairs, including engineers and track teams from South East Queensland, to ensure we return the Mt Isa Line to full operation as soon as possible,” Easy said.

As for a timeline, he reiterated his statements from last week. “At this stage Queensland Rail believes the line can be fixed earlier than the 6-12 months that has been suggested and reported,” he said. “We will continue to keep stakeholders and the community informed of these plans and timeframes.”