Ann: Aurizon secures major national freight contract, page-2

It's unfortunate that this wasn't announced concurrently with the half yearly results.

Initially, timetabled intermodal frequencies will be low on the Melbourne-Brisbane route at only two per week. However if successful, one assumes eventually this could ramp up. Five a week to Perth is significant and shows how rail business on this most important of routes across the Nullarbor is booming. Coastal shipping may be cheaper but it has numerous delays and is exclusively operated by foreign-flagged ships: the number of these trans-Oz voyages has reduced since COVID-19.

It looks as if AZJ is spending (investing) $160 million on obtaining new rollingstock, which may or may not include some further locomotives, although the latter especially have a lengthy lead time. The briefing at 1200 today may provide further details.

Given AZJ ceased its previous interstate intermodal trains in 2017 after they incurred losses, one hopes that the contract with Toll Global Express gives it more chance of making a net profit.

I assume that the April 2023 date for commencement allows a bit more time to ensure it has sufficient train crews in the required locations, and gives Toll GE time to change its arrangements.

The response of unlisted Pacific National and SCT, the two current operators of interstate intermodal on rail, will be interesting. Will they be forced by clients to reduce freight rates per tonne-kilometre?

One hopes AZJ's move attracts more freight away from environmentally unfriendly articulated trucks such as B-Doubles, which are also a danger to private motrorists. The overall safety record of trucks may be reasonable but just one collission with a private car can result in a tragedy, and it's not as if these occurrences have reduced to zero.

Anyone who's been tailgated by a B-Double on a freeway, highway or even local road knows how concerning (and to some more nervous private car drivers, frightening) this can be. It goes on a lot, and police almost never are around to enforce better driving from truck drivers and give them heavy fines or demand an inspection of the truck.