QR National Open To Rival Rail Plan By BHP Billiton
August 28 2011 - 10:13PM
Dow Jones News
QR National Ltd. (QRN.AU) will continue to work with BHP
Billiton Ltd. (BHP) despite plans by the mining giant to build a
competing rail line in coal-rich Queensland state, the rail
operator's chief executive said Monday.
Lance Hockridge said the plans of its largest coal customer make
"absolute sense" but are at an early stage and it would be some
time before a new rail operation could be launched.
"We don't expect to do everything in this infrastructure space
in Queensland...We believe in competition," Hockridge told analysts
during a briefing following the release of the Brisbane-based
company's full-year results.
BHP, which like rivals including Rio Tinto PLC (RIO) built
dedicated rail systems in iron ore-rich Western Australia, has
submitted an initial application to build a rail network from its
Queensland coal mines to the coast.
"There are synergies by more closely coupling rail, mine and
port," Marius Kloppers, chief executive of the Melbourne-based
mining company, said last week. "That is not a reflection on the
operators or the owners of the existing parts of that chain, but I
think we would very much say that our capability to engineer better
outcomes and more proactive decisions is easier in Western
Australia where there is one party that needs to take the decision
around port, rail and mine."
QR National, privatized by the Queensland government last year
and listed on the Australian exchange in November, is Australia's
largest rail freight business by tons hauled. It operates and
manages some 2,300 kilometers of rail infrastructure in Queensland
under a 99-year lease with the state.
Hockridge said QR National has the advantage over prospective
rivals of assets in place and the ability to continue expanding its
capacity.
-By Robb M. Stewart, Dow Jones Newswires; +61 3 9292 2094;
robb.stewart@dowjones.com
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