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A privatised ARTC?


Chairman of the Australian Transport & Energy Corridor Ltd (ATEC) and well-known rail freight advocate Everald Compton has called for the Australian Rail Track Corporation to be privatised.
 
Writing in his monthly newsletter, Mr Compton says the ARTC “is eminently ready” to be privatised.
 
“Its founding charter was stated to be the linking of the nation’s capitals by standard gauge railways,” he writes. “This aim now needs to be extended to achieve what Prime Minister Stanley Bruce wanted to do in the 1920’s — the conversion of every viable railway in Australia to standard gauge. His advocacy of that vision is one of the reasons why he lost office, but he was right.
 
“Now, we have a prime opportunity to make a major step towards achieving this goal by taking advantage of the good decision of the Queensland Government in announcing the privatisation and public listing of Queensland Rail (QR).
 
“The below-rail assets of ARTC and QR can be merged into one company and listed on the ASX in one combined IPO right now, with QR’s above-rail operations being floated in a separate company. This will give a combined ARTC/QR access to the immense capital that is needed to take Australia’s railways out of their lamentable past and into the modern era.
 
“One-hundred-billion dollars would be the minimum amount to be raised over a number of years, and much of this can come from joint ventures with the private sector. Gradually, the below-rail assets held by various entities in the other states can be merged into this new public company that can have the name of Rail Australia.
 
“The creation of Rail Australia will acknowledge that the future carriage of long distance freight in Australia will be done by rail, not road.
 
“This statement of fact is verified by Warren Buffet’s 32-billion-dollar purchase of  Burlington National Rail in the United States. He stated bluntly that he had taken a punt on rail replacing road in long distance freight haulage, and he said that it was a risk well worth taking.
 
“Kevin Rudd and Anna Bligh need to talk urgently about this and come to a deal immediately, as it will take the quite valid sale of QR out of the volatile political scene in Queensland and raise much more money for Queensland’s coffers than they will get by going it alone.”

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