Number 3                      May 2008

> Expressions of interest called
> Freight volumes at all-time high—bulk up by 221%
> Joint venture signed
> New rollingstock for ABRAM tanks
> Freight availability
> Community contribution
> Safety campaign

FreightLink on the market
FreightLink has called for expressions of interest from parties interested in buying the business, leveraging the exceptional growth achieved (see below), not only for expansion in the emerging minerals sector in the Adelaide–Darwin rail corridor, but also general freight opportunities across the interstate network (expected to reach 800,000 tonnes this financial year).  ‘Quality rail assets in Australia are highly regarded for their strategic value and the presents a rare opportunity for investors to acquire a rapidly growing business in the transport and logistics industry where rail will play an increasingly significant role’, says chief executive, John Fullerton.

Freight volumes at all-time high
Across the board, the volume moved by FreightLink continues on the up and up, especially bulk freight, which lifted a staggering 221% (87,660–281,500 tonnes) for the first quarter (January–March) 2008 compared to the same period last year, boosted by iron ore from Territory Iron’s Frances Creek mine (from July 2007) and a nearly doubling in manganese from OM Management’s Bootu Creek mine. . . . bulk liquids too are on the up—an impressive 76% (9200–16,000 tonnes). And bulk freight is expected to continue at record levels, not only with the start-up of Oxiana’s Prominent Hill mine in late 2008 (upwards of 250,000 tonnes of copper-gold concentrate ore a year 2000 km to Darwin), but also with the ratcheting up of mining generally. . . . general freight rose by 24% (142,900–177,400 tonnes), bolstered by major customer Northline putting the majority of its freight back onto rail. Given that this roughly equates to 10 road trains, the move is good news for congested roads and the environment. . . . within general freight, automotive increased by 112% (4700–9990 tonnes) helped along by a shift to rail by major automotive freight forwarder customers. The large car containers (supplied by freight forwarders) are particularly suited to both double-stack wagons and FreightLink’s 16.2 metre two-pack wagons acquired from Canada in 2005. And FreightLink’s fleet of 15 purpose-built Autotainers—each holding three longer, wider and taller cars—is gaining broad-based market acceptance.

Joint venture signed
And more on Prominent Hill . . . on 9 April 2008 FreightLink’ chief executive officer John Fullerton and Giacci’s co-owner and chief executive Peter Giacci signed the joint venture agreement for Oxiana’s Prominent Hill concentrates haulage. Infrastructure is proceeding apace for start up, with the construction of sheds, haul roads and rail sidings on track to meet projected movement targets. The pair plans expanding their productive relationship, and will jointly prospect for other opportunities identified in the corridor.

Sixth train
FreightLink’s sixth general freight service between Adelaide–Darwin, set for late June 2008 start-up, will increase rail freight capacity in the corridor by 20%.

New rollingstock for ABRAM tanks
Latest-technology rollingstock to carry Australian Defence Force (ADF) ABRAM tanks, with an accompanying accommodation car for security staff, were put to the test between Berrimah and the Union Reef siding in the Northern Territory on 23 April 2008, the final—and successful—trial a forerunner of longer hauls to come. Built for the ADF by Chicago Freight Car Leasing Australia (CFCLA), the 16 specially designed container flat wagons (Class CTQY), each carrying 65 tonnes, and the accommodation car, with its security surveillance systems, were built by CFCLA’s BlueBird Rail at the Islington workshops in Adelaide. John Fullerton says FreightLink already carries equipment for the ADF’s 1 Brigade between Darwin and Port Augusta, and this acquisition of rollingstock—the first real investment in rail logistics by the ADF for many years—paves the way for the for the safe and secure deployment of these new crucial defence assets in future exercises.

Freight availability
Freight availability into Darwin is expected to improve in June following track maintenance in May, which should see an easing in seasonal local speed restrictions. Freight availability into Katherine remains at a consistent high—around 95%.

Community contribution
After receiving a donation of near-new office furniture for its Indigenous Program from BP’s Bulwer Island Refinery in Brisbane, the Fred Hollows Foundation asked FreightLink to provide rail transport for 4 x 20 ft containers between Adelaide and Katherine (in partnership with Pacific National which provided the Brisbane-Adelaide leg). In thanking FreightLink for its generosity, the foundation’s State Fundraising Manager–Queensland, Sue Larsen, said the containers arrived in Katherine on Sunday 23 March earlier than scheduled and with no damage. ‘The allocation of the furniture will benefit all Aboriginal communities within the Jawoyn region, as well as a number of Aboriginal organisations within the Katherine region. As this is an area that is very under-resourced, the news was extremely welcomed, similar to when Father Christmas arrived’, she said.

Safety campaign
FreightLink’s 101 Elephants campaign promoting rail safety at level crossings in print and on radio, which began in June 2007 after a boost in train numbers following Territory Resources’ Frances Creek start-up, was given the thumbs up by customers, children and politicians who responded with calls to FreightLink. Risk & Compliance Manager, Sandra Jackson, said the campaign’s ‘tongue-in-cheek’ approach—101 elephants representing the weight of a locomotive—brought increased publicity to rail and, in particular, safety at level crossings and was the subject of her column in the ATA (‘truckies’) news.

To hear the ad, go to www.freightlink.com.au and click on safety bottom right.