Pacific National

Infobox_Company
name = Pacific National Pty Ltd

type = Subsidiary
foundation = 2002
location_city = North Sydney, New South Wales
location_country = AUS
industry = Rail
products = Bulk Services, Intermodal, Network and Operation Services
homepage = [http://www.pacificnational.com.au/ www.pacificnational.com.au]
parent = Asciano Limited
intl = yes

Pacific National is one of Australia's largest private rail freight businesses. Originally a joint venture between Patrick Corporation and Toll Holdings; it is now a wholly owned subsidiary of Asciano Limited following the restructure of Toll Holdings.

Beginnings and growth

In February 2002, the mainly Australian Government-owned National Rail Corporation's freight operations and rollingstock were combined with the New South Wales Government-owned FreightCorp and sold to Toll Holdings and Patrick Corporation as Pacific National.

In 2004, Pacific National purchased Australian Transport Network Limited, operator of TasRail. In the same year, Pacific National also acquired Freight Australia, operator of freight services in Victoria, giving Pacific National control of the Victorian non-urban rail track, excluding the interstate network, which is controlled by the Australian Rail Track Corporation.

As part of the sale conditions the Australian Competition and Consumer Commission (ACCC) attached special conditions to the sale to ensure competition in the rail freight industry. [ [http://www.smh.com.au/articles/2004/07/02/1088488141852.html?from=storylhs Sydney Morning Herald: 'ACCC won't oppose Freight Australia takeover' - July 2, 2004] ] The company was required to provide a 'starter pack' of locomotives, wagons, train paths, and freight terminals for a third part rail operator on the east-west route across the Nullarbor Plain. Pacific National has since leased to competitor Specialised Container Transport 9 refurbished G class diesel locomotives for use on SCT's trains, and is also required to continue the 'hook and pull' contract with SCT until their own locomotives arrive. [ [http://www.news.com.au/couriermail/story/0,23739,17546742-3122,00.html Courier Mail: 'Toll boss bows to ACCC pressure' - December 13, 2005] ]

In November 2006 Pacific National entered into an in-principle agreement to sell the remainder of its Victorian rail lease of the network back to the Victorian Government for $133.8m, during the caretaker period following the issuing of the writs for the 25 November 2006 Victorian State election. [cite news | title = Toll sells rail lease | pages = 17 | publisher = Canberra Times | date = 2 November 2006 ] The sale was completed on May 7, 2007, with state government owned V/Line managing the track. [ [http://www.legislation.vic.gov.au/domino/Web_Notes/newmedia.nsf/b0222c68d27626e2ca256c8c001a3d2d/6f0846798c60e597ca2572d4007d9d99!OpenDocument MINISTER FOR PUBLIC TRANSPORT: "RAIL BUY BACK DEAL COMPLETE" - May 7, 2007] ]

In 2006 launched a hostile take-over of Patrick Corporation which was successful and saw Toll Holdings receive 100% ownership of Pacific National. In 2007 Toll Holdings was restructured into two separately ASX listed companies: Toll Holdings and Asciano Limited. Part of this restructure, Pacific National became a wholly owned subsidiary of Asciano Limited. [cite web | title= Toll Holdings Restructure | publisher = Toll Holdings | url = http://restructure.toll.com.au/ | accessdate = 2007-10-02 ]

Controversy

Tasmania 2005

In September, 2005 Pacific National angered the Tasmanian State Government and the Australian Federal Government as it threatened to 'withdraw all services' unless the governments paid a $100 million subsidy. [cite web | title= Govt signs off on Tassie rail package | publisher = ninemsn | date = 29 September 2005 | url = http://news.ninemsn.com.au/article.aspx?id=65439 | accessdate = 2006-11-02 ] This alarmed people of Tasmania because a pullout of rail services would result in thousands more trucks on already busy roads. Initially the governments refused to act on the issue claiming they would not be "held to mercy" by Pacific National, owned by Toll and Patrick Corporation, "which are extremely profitable multi-national companies". However, state infrastructure minister Bryan Green and federal counterpart transport minister Warren Truss announced a $120 million rescue package hoping the board will continue operation in the state. [cite web | authorlink = Warren Truss | title=Truss offers $78m rescue package for Tassie Rail | publisher = Department of Transport and Regional Services (Australia) | date = 12 December 2005 | url = http://www.ministers.dotars.gov.au/wtr/releases/2005/December/071WT_2005.htm | accessdate = 2006-11-02 ] . Though Pacific National was accused of bullying at the time, rail services in Tasmania have never been profitable and this was the reason the public freight rail service in Tasmania was sold to Pacific National.

Rural services 2007

In December 2007 Pacific National announced plans to sell or close its grain transport and Portlink rural container business operations in Victoria, selling or closing Patrick's intermodal freight business in Tasmania, and downsizing to a bare minimum Pacific National's grain operations across New South Wales. [cite web
url=http://www.abc.net.au/news/stories/2007/12/12/2116312.htm
title=Pacific National to sell or close rail freight business
date=December 12, 2007
work=ABC News website
accessdate=2007-12-17] The decision has been criticised as it will force grain growers to use higher cost road transport to transport the annual grain harvest from rural silos to the ports. [cite web
url=http://www.news.com.au/heraldsun/story/0,21985,22909741-664,00.html
title=Asciano delivers grain haulage shock to farmers
date=December 12, 2007
work=Herald and Weekly Times website
accessdate=2007-12-17] The decision has seen many commentators accuse Pacific National of only acquiring the operations of Freight Australia in 2004 for the purposes of asset stripping and eliminating completion in rail freight. [cite web
url=http://www.rtbuvicloco.com.au/locolines/LL%202%2007.pdf
title=Loco Lines
month=May | year=2007
work=Newsletter for Locomotive Enginemen of the Rail, Tram & Bus Union – Victoria
accessdate=2007-12-17|format=PDF] [cite web
url=http://www.railpage.com.au/f-t11336862-0-asc-s0.htm
title=Freight Australia Exiting
date=December 12, 2007
work=Railpage Australia forums
accessdate=2007-12-17]

The company has told competitors wanting to acquire unwanted rolling stock from the company, that it would rather scrap wagons or export them to Saudi Arabia before they would made available domestically. [cite web
url=http://business.theage.com.au/off-the-rails-20080320-20qv.html
title=Off the rails
work=The Age
author= Philip Hopkins
date=March 21, 2008
publisher=business.theage.com.au
accessdate=2008-06-22]

The container freight service to Horsham, Victoria was almost cancelled in April 2008, but was given a three month reprieve by the company. [cite web
url=http://www.abc.net.au/news/stories/2008/04/21/2222687.htm
title=Rail freight woes spark crisis of confidence
work=ABC News
publisher=www.abc.net.au
accessdate=2008-07-16] [cite web
url=http://www.abc.net.au/news/stories/2008/04/24/2226019.htm
title=Three month extension for Wimmera rail freight services
work=ABC News
date=April 24, 2008
publisher=www.abc.net.au
accessdate=2008-07-16] In July 2008 the service was taken over by QRNational. [cite web
url=http://wimmera.yourguide.com.au/news/local/news/general/rail-to-roll-on/1229118.aspx
title=Rail to roll on
work=Wimmera Mail Times
date=2008-07-28
publisher=yourguide.com.au
accessdate=2008-07-30]

Operations

Operating in all states and the Northern Territory, the company operates some 1,000 locomotives and 10,200 wagons over 100 different sites. Services include bulk freight (coal, grain, steel, ores), intermodal containers (domestic and export), and specialised services such as 'hook and pull' for long-distance passenger trains.

Pacific National has five separate operating divisions, which operate as separate companies for accounting reasons, [cite web
url=http://www.esc.vic.gov.au/NR/rdonlyres/1B78BE57-E0DF-46F8-A56E-985076F4FD80/0/PolicyDocumentCorporateExpenseRecharge.pdf
title=Pacific National Policy Manual
work=Essential Services Commission: Victoria
accessdate=2008-03-03|format=PDF] and often are unwilling to share locomotives with other divisions. The divisions are: [cite web
url=http://www.parliament.nsw.gov.au/prod/PARLMENT/hansArt.nsf/V3Key/LA20051116049
title=Pacific National Werris Creek Headquarters
work= Parliament of New South Wales
accessdate=2008-03-03]

*Rural and Bulk: born out of the former FreightCorp and Freight Australia companies, major traffic include grain, fuel, agricultural products, and cement. Trains run on both standard and broad gauge.

*Intermodal: operates intermodal freight and steel trains on the interstate standard gauge network. Formed from the merger of the National Rail Corporation, Toll and Patrick Rail, FreightCorp, ATN and Freight Australia.

*Coal: transport of export coal on the New South Wales Hunter Valley Coal Chain.

*Queensland: intermodal freight on the narrow gauge network of Queensland, in competition with incumbent QRNational.

*Tasmainia: former operations on the narrow gauge ATN (former TasRail) network.

The Pacific National steel contract was renewed with BlueScope Steel and OneSteel in 2006 for $1bn, making it the largest ever freight rail contract in Australia. The deal involves haulage of about 3 million tonnes of steel over seven years. [cite news | title= PacNat wins $1bn freight deal | publisher = news.com.au | date = 18 December 2006 | url = http://www.news.com.au/business/story/0,23636,20945130-462,00.html | accessdate = 2006-12-18 ] Pacific National has intermodal freight facilities at the Brisbane Freight Terminal in Queensland, the Melbourne Freight Terminal in Victoria, the Sydney Freight Terminal in New South Wales, and the Kewdale Freight Terminal in Western Australia.

Rollingstock

Pacific National operates a wide variety of locomotives and rollingstock acquired from predecessors. These include:

Rural and Bulk:
* Various and locomotives.

Intermodal:
* AN class: 10
* BL class: 10
* DL class: 14
* G Class: 39
* NR class: 119
* XRB class: 3
* 80 class: 12
* 81 class: 84

Coal:
* 82 class: 55
* 90 class: 35

Queensland:
* PN class: 13

Tasmania:
* Various ex-TasRail locomotives

External links

* [http://www.pacificnational.com.au/ Pacific National]
* [http://www.asciano.com.au/ Asciano Limited]

References