Truck photos/IO transport

[SM Junkie]

Not really buying the BHP argument for the Goldworthy line. Yes it is underutilised and will need upgrading, but this may be AGO's in, invest in the upgrade of the infrastructure. Finicane island I also don't see as a problem as it would need a branch off to the Utah berths anyway which is slightly to the left of Finicane Island. Currently about two trains a day run on the line, definately has capacity.

But that being said I do agree with BHP and Rio on access to their other lines. These are to their primary mines and run a lot of traffic, so I'm interested to see how this will work. FMG may succeed but then there are the other hopefulls that will try to follow in their footsteps like FMS. Not everyone can get on the lines.

 

[tigerboi]

Re:RESOURCES MINISTER ON LATELINE BUSINESS

SM did you see the interview with martin ferguson on lateline business the other night?my understanding of what he said is even if fmg win in the high court the pull that bhp/rio have is so much that the trade practices act will be changed to prevent access.here is part of the transcript...

I understand that goldsworthy is hardly used at all but bhp are well within their rights to say to fmg go get lost,see fmg only want goldsworthy so they can haul for ago not for their own operations,fmg are going to have big logistical problems to go to 100mt without the access.as they need the newman line to use as aloop,up their line & down bhp's line.but with the bhp/rio influence to have the trade practices act amended fmg are facing big trouble...

nobody has mentioned the power bhp/rio wields in politics,put it this way they will put it all over fmg as the government know which side their bread is buttered.

Now to the access problems facing AGO...huge atm...they need fmg to haul out of abydos but they also need the bhp goldsworthy line to get the 3mt out of pardoo,AGO will either have to get their own rolling stock & lease the line from bhp or get bhp to haul it for them,as i cant see fmg being allowed to cart out of pardoo for AGO on bhp's line...no one has considered that one or the amendment to the TP act.

you can see the full video...http://www.abc.net.au/lateline/business/items/200806/s2266590.htm

ALI MOORE: Well, Minister, you'd be aware of the comments made today by Marius Kloppers the head of BHP Billiton. He's made it clear that in his words, "if the objective is to encourage private sector investment infrastructure, overly regulated infrastructure or a hovering threat of regulated mandated access to existing infrastructure, is clearly not the way to go." He's obviously referring to his dispute regarding rail access in the Pilbara. Are you going to provide both BHP and Rio with some relief on that front?

MARTIN FERGUSON: I understand the issues raised by Marius. They have attracted my interest for some considerable period, both in Government and in Opposition. There is clearly a question of a balance between competition and also, a logistic regime which is probably most - one of the efficient in the world, our iron ore provinces in WA, both Rio Tinto and BHP. That is a matter for ongoing consideration, not only by myself, but a range of other Ministers such as the Treasurer.

ALI MOORE: Well, BHP for one, wants the trade practices Act modified to protect them against third party access. Will you rule that out?

MARTIN FERGUSON: Marius' views are well known to Government and they will be considered in a proper way, the same way in which the views of Rio Tinto and FMG. It's about getting the balance right which secures investment, whilst also enabling others to increase their export opportunities.

ALI MOORE: But what's the time frame for this? Because this case is already about to go to appeal to the High Court, it's also before the Australian Competition Tribunal. It's been going for years?

MARTIN FERGUSON: That's an ongoing process, both from a legal point of view and from a regulatory point of view and it is a matter that will be appropriately considered by Government in the course of the normal appropriate timetable.

ALI MOORE: And what would that be?

MARTIN FERGUSON: Well, obviously there are a range of issues from legal consideration in the High Court and also applications by FMG. They'll be considered, as is required by ministers, in accordance with the regulatory timetables.


AGO'S 2 PROJECTS AT ABYDOS & PARDOO,NEWMAN & GOLDSWORTHY RAILWAYS OWNED BY BHP.

 

[tigerboi]

Re:3RD PARTY ACCESS WITH TONNAGE RESTRICTONS

For all those holding out hope for a free for all on bhp/rio's io railways the draft proposal is for tonnage restrictions,fair enough as it will turn their lines into a car park,juniors will be disappointed in this proposal...tb




SHIPPING STEEL


THE Western Australian State Government has opened the door for iron ore juniors to access Rio Tinto and BHP Billiton’s railway network in the Pilbara with the release of a draft proposal into the contentious issue.

The draft third party access regime, released today by State Treasurer Eric Ripper, outlines what he said was a major step towards a “fair and reasonable” third party access system.

Under the regime, third parties – smaller iron ore miners in the region – could be awarded access to Rio and BHP’s existing network of railways in the Pilbara.

“Rail access is about reducing unnecessary duplications in infrastructure, it is about reducing inefficiencies in the iron ore industry, and is about providing facilities for junior iron ore miners to bring their projects into production,” Ripper said at a press conference in Perth this afternoon.

The rail access regime would only add to the value, efficiency and competition of the iron ore industry in the Pilbara, he said.

Ripper said the details of the regime were subject to consultation and still to be settled, and could only be implemented with the agreement of BHP and Rio.

“The object of the exercise is to get a haulage regime which is agreed to by Rio and BHP and other owners of the infrastructure and is effective from the point of view of the junior miners,” he said.

However, Ripper warned the majors that if they did not agree to the Government’s third party access regime they could face federal legislation in the future forcing such access, which could be less flexible and convenient.

While the draft regime firmly opens the door for third party access to the railways for juniors, the Government said there could be a tonnage limit on the level of access given to those third parties.

This point, which will no doubt be seized upon by Rio and BHP as the draft regime goes into its public consultation phase, could mean iron ore developments over a certain size - either on a cumulative or tonnage basis - could be prevented from accessing Rio and BHP’s railways.

If this is the case, the haulage regime would exclude larger players in the region, including Fortescue Metals Group, which last year signaled its hopes for third party access for future development of the Solomon deposit.

In its report, the WA Government also said third party access was a key part of the original state agreements signed with both Rio Tinto and BHP Billiton during the 1960s when their massive iron ore mines were first established.

The important proviso of these state agreements was that third party access did not “unduly prejudice or interfere with” the operations of the mining majors, which will be another area where the majors may find wriggle room within the spirit of the law.

BHP and Rio have staunchly opposed any third party access to their Pilbara railways and BHP is currently in legal proceedings at the Federal Court level with the Pilbara’s newest miner, Fortescue Metals Group, over potential access to its rail system.

Earlier this year the emerging iron ore producer lodged applications with the National Competition Council to declare sections of Rio’s Hamersley and Robe River railways and BHP’s Goldsworthy railway networks open to third parties under part 111A of the Trade Practices Act.

Both Rio and BHP have argued any opening of the railways to third parties such as FMG or the host of smaller juniors seeking to establish mines in the Pilbara would impact their ability to grow their own iron ore businesses.

Ripper said the Government could face difficulties in bringing the regime to fruition but would not force third party access upon the majors without their agreement. He suggested there would be some negotiation between the Government and the majors.

Other key details of the regime include provisions to govern which party will pay for what, with the State Government saying in the draft document it expected “the haulage provider will construct spurs to connect the third party's loading facilities to the provider's railway”.

However, the third party would be required to pay up front for the cost of construction and for any additional facilities and equipment needed, including any expansions to “fully utilised” railways.

At today’s briefing Ripper agreed this could be cost prohibitive for some juniors but noted it would still be cheaper than building an entire railway.

Additionally, Rio and BHP have long argued their railways are in fact fully used.

Other terms of the draft regime include provisions for dispute resolution where third parties and the railway owner cannot agree on commercial terms over haulage.

The third party access would be for rail haulage services only, excluding track access, loading, unloading, port facilities or any non-iron ore haulage.

Additionally, Rio and BHP would also need to provide certainty of service on a non-discriminatory basis, but without resorting to fixed schedules.

Public consultation on the proposal will run until July 25, with State Cabinet to receive the final report by the end of the year.

 

[tigerboi]

Re:NORTH WEST ALLIANCE SUBMISSION

This submission makes interesting reading however AGO produced 2 esimates on transport costs,75km from mine & 150 km from mine which they did not take into account the contract to haul from mine 75km to port is for a total of 150km which is the allround distance.

my estimate was $16.00 per tonne at $1.80 a litre for fuel.(75km loaded,75km empty..)

AGO'S estimate for the 150km mine to port was.....$19.50(thats 150km fully loaded so i think i might be spot on there...)

i think ago has made a mistake not going to bhp for rail access as their areas are closer to bhp's railways than fmg's...plus bhp wont let fmg haul ago's io out of pardoo whether the line is not busy or not.

look for ago to hook up with bhp when they realise fmg cant get access to goldsworthy,as for the port where is the extra 50mt going through/stockpiled?

ferraus all the way south...reckon they need to drill up much more being that far away...

heres the submission:http://www.ncc.gov.au/pdf/DeRaGwSu-005.pdf


...tb

 

[Smurf1976]

What? They're arguing about using someone else's trains in WA?

Down here in Tas the problem is far simpler - trying to find someone who wants to run trains (or even just one train for that matter) in the first place.

A strange day when business leaders and unions alike seem glad to see the end of the current operator. Trouble is, that leaves us with no trains running at all unless someone else comes along and buys them.

On the good side, it ought to fix all those derailments that have been happening. Company blames the track but the old trains the government used to run before this mob came along seemed to stay on them OK. At least the load did actually get to the other end of the line.

As for iron ore, they won't be too worried. They transport it out of Savage River by pipeline which shouldn't be able to go too badly wrong.

 

[Bomba]

i watched the show ice road truckers tonight on ch10. Have seen it before on foxtel. Amazing show. These truckies have some big balls. I couldnt do their job. Imagine driving on an ice road with the knowledge it has caved in, and the truck has fallen through, and the driver has frozen to death. What is also scary is they can hear the ice cracking underneath them as they drive over it, and cracks appear in the ice road.

 

[Smurf1976]

i watched the show ice road truckers tonight on ch10. Have seen it before on foxtel. Amazing show. These truckies have some big balls. I couldnt do their job. Imagine driving on an ice road with the knowledge it has caved in, and the truck has fallen through, and the driver has frozen to death. What is also scary is they can hear the ice cracking underneath them as they drive over it, and cracks appear in the ice road.

Reminds me of being in a coal mine where at the end of the shift they turn all the machinery etc off and it's totally silent. Then they listen for creaking sounds to work out where the next chunk of coal is likely to fall down.

It was interesting to have a look but I'll stick to hard rock mines and power stations as far as underground things are concerned from now on. They're a lot less stressful.

True story and it was in Australia during the 1990's - better not say exactly which mine.

 

[tigerboi]

TIGERBOI: MY NEW KENWORTH

For anyone interested in trucks check out the new truck my boss got me,very nice.
it is the ex dick johnson ford racing teams truck they used to transport the cars,so
all you asf folk if you want your freight transported to melbourne by the ultimate
professional (thats me in a smicko kenworth see the numbers in my signature.
(free plug cool joe? we got a depot at carole park too.)...TB