Exploring the future of the Australian Rail Industry. Is there life after the resource boom? Is Open Access the best model for rail competition? Can rail compete with road? Let's peer through the looking glass and see.
Sunday, 11 November 2012
Corridor Franchising - roughing out the picture
If Corridor Franchising were to occur within the government-controlled below-rail networks in Queensland, New South Wales and Victoria...what kind of picture would be looking at? For a start the question of buying or leasing would be one that would need to be answered early on. Corridors not needing major upgrading may be cheaper to purchase outright...those with growing potential and lacking suitable infrastructure might be better leased...allowing the new operator-provider room for funding capital improvements without having to wait for a cabinet decision. Obviously this would not be possible all at once, a gradual sell off or leasing of corridors to interested parties would be needed.
These corridors are only being roughly sketched here, but this could be a reasonable starting point, and many of those in NSW and Victoria could provide active competition to neighbouring networks rather than relying on open access to fulfil competition policy requirements. Some branch lines or non-core sections within these corridors could also be sub-leased or sold to smaller operators with specific interests in the available commodities.
Corridor 1; Great Northern Railway (QLD) - Townsville-Mt Isa; high potential for growth; Mixed infrastructure. Potential operators - QRN, PN, Qube
Corridor 2; North Coast Railway (QLD) - Brisbane-Cairns; medium to high potential for growth; Mixed infrastructure. Potential operators - QRN, PN, Qube.
Corridor 3; Central line (QLD) - Emerald to Winton; high potential for growth as far west as Alpha and Jericho; low potential beyond. Very poor infrastructure. Potential operators - QRN, Galilee Basin miner, shortline operator
Corridor 4; Western/South Western Line (QLD) - Brisbane to Charleville, Toowoomba to Thallon; high potential for coal, oil and gas industry as far west as Roma; low potential beyond and to Thallon. Very poor infrastructure. Potential operators - QRN, Qube, shortline operator
Corridor 5; Hunter/North West (NSW) - Newcastle-Moree/Muswellbrook-Gulgong; high potential to Narrabri and Gulgong; low potential beyond. Mixed infrastructure. Potential operators - PN, QRN, Freightliner, Qube, Hunter Basin coal miners
Corridor 6; North Coast Line (NSW) - Newcastle-Brisbane; medium potential for growth; Mixed infrastructrue. Potential operators - PN, QRN, Qube, SCT
Corridor 7; Western Line (NSW) - Penrith-Crystal Brook/Cootamundra-Werris Creek; medium potential for growth; Mixed infrastructure. Potential operators - PN, QRN, Qube, SCT
Corridor 8; Southern Line (NSW/VIC) - Campbelltown/Wollongong-Melbourne/Griffith-Junee; high potential for growth; Mixed infrastructure. Potential operators - PN, QRN, Qube, SCT
Corridor 8b; Latrobe Valley Line (VIC) - Melbourne-Bairnsdale/Long Island. Medium potential for growth. Mixed infrastructure. Potential operators - PN, QRN, Qube, SCT
Corridor 9; Murray lines (VIC) - Melbourne/Seymour-Tocumwal/Echuca; medium potential for growth; Mixed infrastructure. Potential operators - PN, El Zorro, Qube, shortline operator
Corridor 10; Bendigo lines (VIC) - Melbourne-Swan Hill/Robinvale/Deniliquin; low potential for growth. Mixed infrastructure. Potential operators - PN, El Zorro, Qube, shortline operator
Corridor 11; Mildura Line (VIC) - Melbourne/Geelong-Mildura; medium potential for growth. Poor infrastructure. Potential operators - PN, El Zorro, Qube, shortline operator
Corridor 11b; Warnambool Line (VIC) - Geelong-Warnambool; low potential for growth. Poor infrastructure. Potential operators; PN, El Zorro, Qube, shortline operator
Corridor 12; Western Line (VIC/SA) - Melbourne-Adelaide/Hopetoun & Dunolly-Portland; Medium to high potential for growth; Mixed infrastructure. Potential operators; PN, QRN, GWA, Qube, SCT
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