bhp rio to free up rail. fed govt ctee, page-3

  1. 585 Posts.
    Hm, as per my posts on GDA & FMS there is more to it.

    Have not seen the draft proposal, however, it's not just about putting the ore on a train.

    You need:
    (1) dumper availability to unload, especially if you are adding rolling stock into a constrained system.
    (2) on the subject of rolling stock, who in their right mind will allow rolling stock on their track when they have no control whatsoever over the operation and maintenance of that equipment (= massive risk)
    (3) if 2nd tier players are granted access to rail, then where will their ore be stockpiled and blended? Which pad in which stockyard will be "set aside" for them. Anyone on here have any idea of the capital cost of stockyard capacity? it's megabucks and no one can affort to have such assets sitting under utilised
    (4) will they each produce sufficient vol to ensure appropriate utilisation of stockyard capacity, stackers, reclaimers and shiploaders at the port? You are dreaming - multiple players with 3 & 4Mtpa capacity - it's a weeks production for Rio & Big Harry's Place.

    This is NOT going to happen overnight with Rio, and I doubt with BHP. Have no idea about FMG.

    Only way it can work is if 2nd tier sell ore at their train load outs to the majors who then rail to port, stockpile and blend it into the mix for sale.

    While it's a nobel notion to think all can gain access to sell their piece of pilbara dirt, the net benefit (for the national economy) is to see max tonnes going over the gunnels of all ships, and that won't happen with an open slather 3rd party access regieme - just look at the mess called the hunter valley coal chain. . .

 
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