Article: Qld Rail kills off cattle trains

[ozbob]

From Queensland Country Life click here!

Qld Rail kills off cattle trains

Qld Rail kills off cattle trains
JON CONDON
16/07/2009 11:25:00 AM

THE slow suffocation of livestock rail services across Queensland is having a direct impact on the Australian beef industry's international market competitiveness, recent developments suggest.

Both of South East Queens-land's flagship export processing plants - Swift Dinmore and Teys Beenleigh - have operated on reduced shifts since May, at least partly as a result of logistical problems caused by lack of rail transport access.

High levels of throughput are critical in the push to optimise killing efficiency in beef abattoirs, particularly when competitors like Brazil can kill cattle at less than 60 percent of the cost in Australia.

In the case of Teys Beenleigh, the situation is so serious that there has been no rail delivery to the plant since the end of May.

The closure of the preferred rail option out of far western centres like Quilpie is now impacting on marketing options available to local producers, evidence suggests. Given the less competitive, efficient, and accessible nature of road transport, some channel country cattlemen are now consigning cattle into live export out of Darwin, or south into secondary processing in South Australia or NSW. Such a move is all but unprecedented in an area which has for decades been heavily focused on turning off quality, heavy meatworks cattle into Queensland's South East corner at this time of year.

At the seat of the problem is QR's actions in increasingly diverting its locomotives into the more lucrative coal haulage business, at the expense of the livestock trade.

Teys Brothers chief executive Brad Teys said QR, and ultimately the Queensland Govern-ment, were making their deci- sions purely on the financial profitability of the rail service. There is no attempt to look at the bigger picture impact on regional and rural economies, or industries of critical national importance.

"Queensland is responsible for half of the nation's $9 billion cattle industry, yet there is no priority placed on its viability by QR. The problem is they won't be upfront about the issues," he said.

"Obviously they are being told to put their resources into coal, because that's where they're making money.

"But given the enormous benefits in reducing road traffic and associated safety risks with driver fatigue, and maintaining the most efficient delivery of cattle across a vast State in terms of regional and rural economies, if the Government is serious about its Smart State principles, it should get behind an improved livestock rail service that is properly costed and resourced."

In other recent episodes, regular train services out of Dalby and Roma selling centres were cancelled through most of June, and booked trains have also been cancelled on short notice out of centres like Julia Creek.

Recently, Teys had a train booked out of Julia Creek which was cancelled on five days notice, on the basis of lack of access to locos. Such events added considerable stress to the smooth, orderly flow of cattle for processing, and filling such gaps with road transport was often very difficult on short notice.

At the other end of the processing efficiency spectrum, Teys faces an $700,000 annual cost increase through its Biloela plant because of a recent QR decision to cancel chilled and frozen container rail freight access out of Biloela direct to the Port of Brisbane. That service will close from February, after which all containers will have to be road transported to a Rockhampton siding, for reloading onto a southbound train.

Teys will have to spend $1.5 million on a container terminal at Biloela to accommodate the service closure.

The change will also see another 100 trucks per week on the Biloela-Rockhampton road.

Asked whether processor-owned rolling stock might one day be part of a longer term solution, Mr Teys said it would be a distant prospect, at best.

While Roger Fletcher had adopted such a strategy out of Dubbo in NSW under a hook-and-pull principle, Mr Teys said he would have to question whether his company was in the transport business or the processing business.

"Ultimately, the access issue might force us to put more emphasis on grainfed cattle, for example, which tend to be more geographically accessible by road," he said.

QR advised processors late last year that beyond scheduled services this year, any additional 'hook-and-pull' (self-loaded) services would be provided at a freight rate almost double the conventional rates.

"At the end of the day, that's really what the debate is about."

[Dean Quick]

I am sick to death and becoming more frustrated every day when I read this. Slowly but surely QR have managed to whittle away the remaining regional services to concentrate on the money making coal haulage. The result is many more trucks hauling what can be done by regular train services. Last night a cattle truck rolled and crashed on the gateway!!!Is there anyone out there who cares enough to stop this madness? Can we not take our concerns along with those in regional industries effected by the service cutbacks to the transport minister?

[brad C]

Isn't the case for the retention of rail business units in GOC hands based on the evaporation of support for rural communites in the hands of private enterprise.
It would appear that this practice is now firmly entrenched in QR as the bean counters sharpen their pencils.

Whilst rural rail lines have seen losses in the past (and indeed many have closed for that reason), it had been the practice to argue subsidisation to the central funding agency (Treasury) under Community Service Obligations. This has seen small schools, rail branch lines and health services retained in some small rural communities without an impost to the respective agency, Sadly this funding is no longer available as agencies are given savings targets to achieve from Treasury, whilst GOC's objectives are to provide maximised dividends back to Govt.

In the US, some Branch lines are now in the hands of small community co-ops that move freight to the larger provincial centres for collection by main line operators.
However, the cost of upkeep and rollingstock and poor seasonal incomes would make this a seemingly unachievable situation in many of our smaller communities.

However in forthcoming times of peak oil and carbon trading, we may again hear the whine of 1720 class locos along some of our branch lines!!

[mufreight]

One must seriously question if the Government and QR Freight have an undeclared agenda to close all non coal lines.

Rail freight services have been placed in the hands of road operators with freight services to Qulpie and Cunnamulla gone and services to Charleville belived to be transfered to road in the near future leaving only cattle trains and the Westlander the only trains to operate on the western line west of Miles.

The supposed shortage of locomotives now being touted as the reason for the frequent cancelation of stock services.

With no regular services being operated over these lines is it the intention of the government to close the western line beyond Miles using the manufactured excuse of lack of traffic.

With the deliveries of new more powerfull electric locos, 3800 class and the upgraded rebuilds of the 3700 class coupled with the lessened demand for coal due to the ecenomic downturn, the deliveries of the 4100 class diesel locos, there are at present numbers of the 3900 class electric locos now in storage so one must ask as to why the 3900 class locos have not been returned to general freight service between Brisbane and Rockhampton thus releasing diesel locos currently being used to haul freight service over this electrified section which at the present time the only electric trains to operate north of Gynpie are the electric tilt trains.

The return of the 3900 class electrics to general freight services would see cost benefits in the use of the electrical infrastructure already in place, environmental benefits with the replacement of the diesel locos operating freight services over this section and the diesel locos released from these services would then become avaliable for the operation of other services such as cattle over non electrified lines.

Another one to ask your local member about, the answers will no doubt prove  to be of interest to us all.

[Dean Quick]

Well said Mufreight. I was unaware that Quilpie and Cunnamulla had also lost their services as well. With the recent loss of sugar traffic from Marian mill, the impending loss of the Biloela and Dirranbandi services as well as severe cuts to the remaining grain and cattle services I really think that QR have a lot to answer for!! This issue should be taken directly to the Transport Minister with a big please explain???         

[mufreight]

It would seem that asking the Ms Nolan anything either in her position as Minister for Transport or as the Member for Ipswich is an absolute waste.
No response to either Emails or letters and add to this statements that the only relevant use would be if one was growing roses or strawberries and had need for fertiliser.

[ozbob]

Media Release 31st July 2009

Queensland: Ramp up rail!

RAIL Back On Track (http://backontrack.org) a web based community support group for rail and public transport and an advocate for public transport commuters has called for a redirection of funds from roads to rail.  It is clear that road transport is out of control in terms of the carnage and huge costs to our health system.  Environmental costs and impacts of road transport are mounting and will become an unmanageable liability.  Roads are being ruined by a shift from rail to roads of general freight.  Passenger rail needs a revitalisation and expansion.

Robert Dow, spokesperson for RAIL Back On Track said:

"The mounting death and injury toll on the roads confirms the failure of the road centric transport policy.  Rather than contemplating cutbacks on our general freight rail network there needs to be an expansion. Similarly rail grain and livestock transport needs proper resourcing and expansion."

"Passenger rail services, both suburban and rural need a revitalisation and increase in services (1)."

"Why are we continuing along a failed paradigm?  The evidence of the failure of transport policies over the last 50 years is abundant in terms of congestion costs, environmental costs and damage, and costs to the health sector.  Rail is at least 40 times safer than road transport. Why is the community continued to be subjected to the real and obvious dangers of road transport when there are much safer and more cost effective alternatives?"

"QR assets should be kept in public ownership (2).  A proper integrated network that we have now is the way to move forward.  Privatisation of rail assets has not worked anywhere. Rather than sell off our hard earned assets we should be expanding rapidly our rail services.  This will then position the state for a sustainable and affordable transport future.  As it is, we are heading 'faster than a speeding locomotive' into a failed transport state."

"QR also needs to refocus.  Rather than constant cutbacks QR needs to change its focus to constant expansion!"

References:

1.  http://backontrack.org/mbs/index.php?topic=2490.0

2.  http://backontrack.org/mbs/index.php?topic=2360.0

Contact:

Robert Dow
Administration
admin@backontrack.org

[ozbob]

From the Courier Mail click here!

Rail plan will hurt beef industry, says Agforce

Rail plan will hurt beef industry, says Agforce
Article from: The Courier-Mail

Brian Williams

August 03, 2009 12:00am

BETWEEN 900 and 1200 jobs will be lost at abattoirs around Brisbane if the Government abandons livestock rail services.

Agforce says the jobs will go to other states and overseas because it will be cheaper for graziers to send western cattle to South Australia for processing and northern stock to ports for live export.

Teys at Beenleigh and Swifts at Dinmore are expected to be hardest hit, with an estimated 184,000 head of cattle sent elsewhere.

Agforce policy director Oscar Pearse said yesterday if rail services were not available, cattle from southwest Queensland would most likely be trucked to a processing plant at Naracoorte in SA.

Similarly, if northern rail services were abandoned it would be more viable for Gulf of Carpentaria, western Queensland and Cape York Peninsula cattle to go to live export markets out of Darwin, Karumba and Townsville, resulting in further job losses.

"Rail changes the delicate balance of cattle markets and thus production decisions by producers," Mr Pearse said.

Graziers fear the Government is preparing to abandon livestock after some trains were cancelled and Transport Minister Rachel Nolan said the service cost QR about $25 million a year.

A spokesman for Ms Nolan said yesterday the $25 million loss was an implicit and large subsidy from taxpayers.

The Government was working on a transport strategy, with the aim of putting livestock and grain on a commercial basis.

Ms Nolan was meeting abattoir owners and Agforce and the Government position would be clearer next month. Queensland is the only state still hauling livestock by rail.

Queensland Conservation Council secretary Simon Baltais yesterday joined graziers in calling on the Government not to abandon the rail network.

Mr Baltais said the issue was of major significance to Brisbane residents who had to suffer noise, road safety and other issues as the Government directed thousands of trucks through the city and southeast, hauling cattle and grain.

"They are using lame excuses to do this," Mr Baltais said. "It's not just jobs that are lost, sometimes it can help kill off bush towns.

"The $25 million is a drop in the bucket compared with the cost of maintaining a road network for heavy transports.

"It gets up my nose that they cannot see the true costs of abandoning sustainable transport systems and they ignore their own policies about reducing greenhouse gas emissions. They have a fetish for coal and ignore other sectors."

[Dean Quick]

The state spends billions on roads every year but, oh dear, $25 million to run cattle trains to keep thousands more trucks off the road is just to much a cost to bear. More pathetic excuses from the bean counters and bureaucrats. Does anyone within the transport department have a clue?

[ozbob]

Minister for Transport
The Honourable Rachel Nolan
03/08/2009

Minister guarantees cattle trains will continue

Transport Minister Rachel Nolan has dismissed reports the government will abandon the livestock industry, confirming cattle train services will continue.

Ms Nolan said Queensland was the only state still hauling cattle by rail, and the government understood the importance of these services.

"I have met with Agforce twice, as well as industry representatives and QR. A joint process is underway with Agforce to find solutions to the unique challenges of the cattle industry.

"Only about 10 per cent of Queensland stock movements are by rail, but we know these services are needed, especially to move cattle from saleyards to abattoirs. That's why we are working hard with industry to ensure they will continue," she said.

"It's also why we provide a $25 million a year implicit subsidy to the meat industry via the loss QR makes on these services."

Ms Nolan said government and industry were working together to improve the sustainability and reliability of services.

"This is a complex issue. QR has fixed costs such as locomotives and wagons and limited train paths, whereas the meat industry is variable depending on issues such as climate and demand.

"Finding a balance between high fixed costs and variable demand is the challenge we are working with Agforce and industry on.

"But that doesn't just mean cutting services - it means working together to find a solution for the future.

"I understand industry is concerned about recent temporary service disruptions affecting supply to south east Queensland abattoirs - especially out of the south west.

"I have taken this on board and I am raising it with QR."

Ms Nolan said she would continue to work with industry and community representatives, including another round of meetings this week.

"The Integrated Transport Strategy for Agricultural Commodities being developed by my department and Agforce will be available soon.

"This will be the starting point for further detailed discussions between QR and its customers about future arrangements for services."

==============================================================

[Dean Quick]

At least there is an effort being made to retain these endangered services. Now we can only hope that this is not simply rhetoric and spin and that common sense will prevail.

[ozbob]

MEDIA RELEASE AgForce Queensland

28 July, 2009

Qld, Ongoing effort to get rail transport back on track

AgForce is continuing its ongoing campaign to secure future certainty for cattle movement on the rail freight network.

AgForce Cattle spokesman Peter Hall said there was growing frustration that a long string of meetings which began in November last year with a commitment from then Transport Minister John Mickel had failed to achieve any resolution about the future for cattle on rail.

?Before and after the state election, John Mickel and his successor Rachel Nolan have given us commitments about continuing rail services for cattle and grain, and we have also briefed Primary Industries Minister Tim Mulherin on what?s at stake,? Mr Hall said.

?Following on from these ministerial meetings, we have actively participated in two meetings pursuing an integrated transport strategy for agricultural produce but are becoming increasingly frustrated about the lack of progress.
?From our perspective, it is simply not an option for QR to pull out of the cattle business and we will continue to work on ways to retain these services on the northern, central and southern lines wherever possible.?

Mr Hall said an August 4 meeting of all sectors of industry including producers, agents, truck drivers, processors, local government and customers will meet to confirm a clear position on the way forward.

?We need to pull out all stops to secure a more flexible system than Queensland Rail?s business model currently allows,? he said.

?One of the difficulties is the seasonal nature of cattle movements because they cannot be stockpiled in the same way that grain and coal can be.

?The Queensland Government and QR underwrite the urban network as a community service obligation and we believe the regional cattle network should be retained for similar reasons.

?Without the rail network, thousands of meat processing jobs in south-east Queensland will be put at risk and thousands more cattle will be moved on the already over burdened road networks.

Mr Hall said some of the issues that the Queensland Government needs to factor into the integrated transport strategy are:

? Competition for capacity on the road, rail and port networks from other commodities.
? Efficiency of supply chains to deliver a cost-effective and sustainable freight solution.
? The impact of marketing and seasonal decisions on the supply chain.
? Attractiveness of rail and road for each link in the land-based supply chain.
? Access to transport networks through government guarantee for rural commodities.
? Expectations of the agricultural industry based on current contracts for transport.
? Emerging reforms in the agricultural and transportation sectors.
? The impacts on road infrastructure, congestion and public safety.
? Weather-dependent and seasonal nature of demand for transport capacity.
? Capacity and efficiency of storage facilities.
? Trends in consumption of agricultural commodities in domestic and export markets


? AgForce is a farm group advocating on behalf of Queensland beef, sheep and grain producers. AgForce is celebrating the 10-year anniversary since the amalgamation of its predecessor organisations: the United Graziers? Association, the Cattlemen?s Union and the Queensland Grain Growers Association in 1999.