rail haulage update

With all the recent action with SP and FRS acquiring a new major shareholder in Chinese Mining firm Western Mining ...the following is an extract from the FRS recent shareholder presentation last month. In particular concerning 'their' views of how the transportation of ore may result in the coming months.

New Public Ship Loading at Port Hedland = Utah Berth 16-18Mt - late 2009

- Rail Haulage = “the preferred & logical option”
• Obligation under State Rail Transport Agreements (RTA)
• Revised RTA provides process, timetable & cost structure
- North West Iron Ore Alliance
• Proposal submitted for unloading facilities & inner harbour berth 50Mt capacity
- Track Access & NCC – Weekend Australian – Jenny Hewitt ,26-27 April 2008

• Martin Ferguson, Federal Resources Minister has bluntly warned BHP Billiton and Rio Tinto to negotiate with FMG over access to their Pilbara rail networks. In its firmest statement yet, the federal Government has demanded that the bitterly disputed issue be resolved by negotiation rather than through the courts.

• The argument was all about excess capacity being made available to other players at a commercial rate.

"The only way to progress this is by requiring the parties to sit down and negotiate principles which go to haulage at a commercial rate."

IMO, i deduce from all of this that a feasible solution to the haulage will result sometime in the near future. All the correct signs are there... its just a matter of time.

Cheers,
Kooyong