consortium, page-10

The use of a consortium is similiar to the outsourcing model of a lot of industries both in the supply of human capital resources or machinery. The CAPEX is usually borne by the consortium or company pitching for the work so from a MAK perspective it isn't an initial outlay for the company. The recouping of the CAPEX by the consortium is built into the overall margin of profit per tonne. Thus it would be in the best interest of the consortium to haul as much as possible.

To protect the consortium interest, MAK would sign, for example a 3 year either fixed price or time & marterials agreement that would ensure the consortium has enough revenue to make a profit as well as cover the initial capex for both either upgrading the rail/trucks and other associated infrastructure.

In summary.
From this type of consortium contract, MAK may pay a higher cost for haulage because the consortium needs to make a profit, however the initial capex cost is 'off the books' and there would be virtually NIL startup costs or requirement to raise capital as it will be built into the future revenue stream of the consortium.

DYOR