Article: Queensland Rail Proposes Merger

[ozbob]

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Queensland Rail Proposes Merger

Queensland Rail Proposes Merger

Queensland Rail has approached Asciano Group with a proposal to merge with the latter's Pacific National unit, creating the country's largest rail haulage unit, Dow Jones reported.

Asciano's board have been discussing next week's result and the proposal from Queensland Rail, which is advised by Merrill Lynch.

There is a shortlist of parties looking to buy a stake in Pacific National, but private equity firms such as Kohlberg Kravis Roberts are believed to have put in ?non-conforming proposals?.

[mufreight]

Such a merger would be detrimental to rail operations in this state and nationaly.
The present levels of competition that exist would be lost as would be the incentive to provide an increasing level of customer service.
Asciano has a pretty poor track record of running down national infrastructure assets then withdrawing services as has been evidenced in Tasmania, Victoria, New South Wales and New Zealand.
There is no realistic justification for such a merger which would be against both National and State interests.
A definate NO for this one.

[ButFli]

An interesting proposal but it will never happen while Pacific National and QR are the only railroads hauling freight on the Queensland narrow gauge.

Maybe PNQ could be sold off separately.

[Dean Quick]

I agree mufreight. We have all witnessed the disgraceful deterioration of rural services and infrastructure in the southern states. Without competition it is too easy for big companies to simply walk away from rural services and concentrate on the lucrative coal market. I find it disturbing that such a proposal is even being considered.

[mufreight]

Just a thought but the politics of the matter aside it would seem that someone must think that they can make a bundle on the deal, is it Asciano who can not bleed much more out of the rail systems presently under their control and now needs another viable rail operation to strip or is it that having bled what they can out of those systems under their mismanagement now needs the resources and expertise of QR to keep them afloat having overdone the asset stripping with what they presently control?
Such a merger most definately would not be in the interests of either the Queensland taxpayers or a healthy QR.

[ozbob]

From the Courier Mail 19th February 2009 page 57

Asciano soars on QR merger talks

[richard]

I do not favour privatisation, but it is hardly fair to solely blame the private companies for the reduction in rail services to rural areas.  In qld, where the Govt still controls most of the rail system, rural areas have been cut off from rail services.