WikiPortallus: Pacific National.html

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.^[1] 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.^[2]

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.^[3] The sale was completed on May 7, 2007, with state government owned V/Line managing the track.^[4]

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.^[6] 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.^[7]. 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.^[8] 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.^[9] 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.^[10]^[11]

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.^[12]

The container freight service to Horsham, Victoria was almost cancelled in April 2008, but was given a three month reprieve by the company.^[13]^[14] In July 2008 the service was taken over by QRNational.^[15]

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,^[16] and often are unwilling to share locomotives with other divisions. The divisions are:^[17]