Article: Rail hike madness: Springborg

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From Daily Mercury click here!

Rail hike madness: Springborg

Rail hike madness: Springborg

Owen Jacques | 3rd March 2009

PROSERPINE Sugar called it ?totally unaffordable?, Lawrence Springborg called it ?madness? and member for Mackay Tim Mulherin said Queensland Rail was still negotiating.

And after a full-page advertisement in the Daily Mercury and a planned public meeting, trucks and trains are becoming an important election issue.

The QR-owned freight group, ARG, has been blamed for forcing more trucks onto the road in lieu of rail.

After Mackay Sugar was forced to use road transport to move its sugar to port, and put 100 new B-Double trucks on the road, Proserpine Sugar is facing the same problem.

CEO of Proserpine Sugar Co-operative, John Power, said ARG had tried to hike up costs by 60 per cent more than last year.

?There were a lot of people with unbelievable looks on their faces after the first offer.?

When LNP leader Lawrence Springborg was in Mackay he said the QR's rates made no sense.

?It's madness to push it off the rail and onto the road,? he said.

?Our roads are falling apart as it is.?

Member for Mackay Tim Mulherin said QR was a ?competitive business? and must make a return on its business.

?There's also private providers, in competition with road transport and Pacific National,? Mr Mulherin said.

But Mr Power said Mr Mulherin's comment ?would be okay? if Pacific National could use QR's rolling stock.

?To use a comment like that, that we should suddenly have to pay another supplier after paying for rolling stock over 40 years,? Mr Power said.

?It's crazy.?

And now, QR has said it will be making a ?concerted effort? to provide Proserpine mill with rail, for a reasonable price, by mid March.

?I'll be keen to see the revised pricing,? Mr Power said.

?We don't want to put it on the road - it's a decision that's going to be a result of the Government and the QR executives.?

A public meeting will be held on Sunday from 11am at Mackay showgrounds.

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From the Daily Mercury click here!

QR deal to keep trucks off roads

QR deal to keep trucks off roads

Owen Jacques | 5th March 2009

PROSERPINE Mill has been handed a new deal from Queensland Rail - a move that will stop more B-double trucks rumbling through Mackay.

QR and the Queensland Government faced growing criticism in the past week as price hikes on rail lines threatened to push mills to ditch trains in favour of giant trucks.

Proserpine Co-operative was poised to follow the lead of Mackay Sugar, which has already moved to use 100 B-doubles to move product from Marian Mill, to the harbour.

But after negotiations between QR and Proserpine Co-operative broke down, pressure was mounting on state members and the company to keep more trucks off the roads.

Yesterday, QR's freight arm ARG approached the Proserpine Co-operative with a new offer, down from its original 60 per cent hike, only one day after Member for Mackay Tim Mulherin said the rail group would make a ?concerted effort? to present a better deal.

The mill's chief executive officer John Power did not comment on the deal's details, but said it was far better than the first offer and would almost certainly be accepted.

?All I will say is that it's significantly better than it was before,? Mr Power said.

?[The contract] is for three years, so that'll stop consideration for going on to the road for at least that long.?

For Mackay residents, it meant about 20 fewer trucks on the Bruce Highway and Harbour Road during the crushing season.

Unfortunately, QR's ARG will not be given another chance by Mackay Sugar which has already opted to put up to 100 trucks on our roads.

Chief executive officer for the group Quinton Hildebrand said trucking the sugar was far cheaper than rail, even if QR had kept prices low.

?We're past that part now,? Mr Hildebrand said.

Mackay Sugar had already spent money on the conversion to trucks, at the same price as QR's former rate.

A QR spokesman said the group was working with Proserpine Sugar and other mills to encourage them to keep using rail.

?As a commercial business QR needs to ensure its long-term sustainability for the benefit of customers, staff and the communities in which we operate,? he said.

?We are confident that ARG's proposal to Proserpine Mill will continue to provide competitive transport for the mill.?