FreightLink Service Quality & Reliability
15 Nov 2006

FreightLink Service Quality & Reliability

 

FreightLink has a very strong record for on-time running with freight often available to customers in Berrimah ahead of schedule.  Despite some setbacks out of our control in October, 2006 we do not believe there will be any long term business losses.

 

FreightLink was made very aware of the need for reliable and efficient freight delivery services if we were compete successfully for the freight business into Darwin. In developing our service plan FreightLink engaged with the primary freight movers in the Northern Territory and established the five round trip services we currently operate.

 

The FreightLink record of freight availability is very good.

 

Since January 2005, FreightlInk has achieved a 96% freight available on-time off the Berrimah services and in August and September 2006 we recorded 100% on time for each of those months.

 

In October 2006, we have faced service disruptions from factors outside of our control.

 

You are aware that one FreightLink service encountered a large herd of camels on the track on an unfenced section of track in South Australia, which resulted in damage to the locomotive and a delay to that northbound train.

 

Additionally, a FreightLink southbound service was delayed when it came into collision with a road train just South of Berrimah at a protected level crossing, resulting delays for freight on this train into southern terminals.

 

FreightLink on-time freight availability reduced to 69% for October 2006 as a result of these incidents.

 

Whilst some urgent freight was conveyed on road during these disruptions, there has been no advice of any long term business losses from Customers. FreightLink has a proven track record of minimising impacts on Customers from incidents including natural events such as floods that have cut alternative transport links.

 

Record Freight Volumes

 

One of the very pleasing aspects for FreightLink, in conjunction with the service delivery performance, is that it has been associated with successive record freight tasks for the movement of general freight on the corridor.

 

FreightLink general freight tonnages, which exclude the bulk minerals were:

 

Month                                     Task                            above 2005                            

July                                            62,750                         +21%

August                                      60,950                         +21%

September                              65,990                         +27%

October                                    72,440                         +31%

 

Our market share of rail serviceable freight continues to grow on the basis of our competitive services, pricing and innovation.

 

A key component of FreightLink innovation has been the introduction of “piggyback” services for oil products where FreightLink bridges road tankers of fuel products from Darwin and Adelaide to Alice Springs on purpose built wagons previously conveyed as “quad” road trains.

 

 

This development is part of a FreightLink strategy to support rail distribution of fuel products from the Darwin VOPAK bulk facility.

 

International Freight

 

FreightLink, in conjunction with the Darwin Ports Corporation and shipping interests continues to actively promote the Darwin gateway for import/export of goods.

 

We remain confident of the future of the International freight opportunity, a vision obviously shared by others. Consequently, FreightLink was pleased to see the establishment of the alliance between Northline and Mitra Intertrans Forwarding, both from the perspective of further advancing the merit of the Darwin Port as well as an opportunity for FreightLink to provide services for land bridging the international freight. FreightLink is progressing negotiations with these parties and we believe we will be able to support this initiative through our NT Direct service structure.

 

Over the past year, FreightLink’s international freight volumes have shown steady growth in exports of uranium ore, and imported goods including manufactured goods from China and Indonesia, the majority being managed as return freight through our freight Forwarder Customers.

 

Bulk Minerals

 

Bulk minerals development in the Northern Territory has also become a key

International freight development for both FreightLink and the Darwin Ports Corporation, giving prominence to the Port and economies of scale for broader port freight development.

 

As announced previously, FreightLink commenced the movement of bulk manganese for OM Holdings in April 2006 from their rail siding near Tennant Creek to Darwin.

 

This operation has proven the capability of the railway to support mining ventures and has activated FreightLink participation in other mining ventures.  These include Territory Iron operations near Frances Creek (which should commence operations in mid 2007) and GBS Gold, near Pine Creek (which could commence on a similar time line).

 

FreightLink is also actively pursuing opportunities with the development of the  copper and gold deposit at Prominent Hill in the far north of South Australia, and expansion of the Olympic Dam mine.

 

 

 

Release date: 15 November 2006

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