Much as I would like to believe that RIO will allow FMS full access to their rail line I think the chances of this happening are about the same as me winning tattslotto.
The following extract from a report on infrastructure by Atlas Iron discusses some of the alternatives to rail haulage. FMS reports have stated that Worley Parsons are considering 7 different infrastructure options.
This is an extract from the Atlas Iron report dated Sept. 2, 2010. http://www.abnnewswire.net/press/en/63634/
- The Turner River Hub location just 95 kilometres south of Port Hedland facilitates access to alternate down-stream haulage options including:
-- Off-highway road train haulage via a private haul road to the Port of Port Hedland,
-- Existing FMG rail, or
-- Existing BHPB rail.
- Large scale off-highway road train haulage from the satellite mines to the central processing facility, or subsequently final product from the Turner River Hub to the port, lowers the cost of ore transport by over 30% compared to on-highway haulage:
- Off-highway haulage via a private haul road provides an alternative to rail haulage as a result of the reduced capital establishment costs, limited distance for transport at approximately 95 kilometres and the unknown costs associated with 3rd party rail access or haulage with an existing Pilbara infrastructure provider.
FMS Price at posting:
11.7¢ Sentiment: Buy Disclosure: Held
