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Rail operator speaks up on Patrick's move


Following Patrick’s move to increase rail charges and vary conditions at Port Botany (as reported on Transport and Logistics News (Sydney Ports, Patrick at ten paces at Port Botany), a second major rail operator has responded, criticising Patrick.
 
Independent Rail group managing director Steve Heraghty said: “We are opposed to Patrick’s proposed new rules and charges, because they are inconsistent with and undermine the NSW Government’s Port Botany Landside Improvement Strategy and the work of the Port Botany Rail Team.
 
“The Port Botany Landside Improvement Strategy came about because structural and operational inefficiencies were identified that added unnecessary cost to the rail logistics chain.
 
“One of the operational inefficiencies is the so-called ‘additional lift’ for handling containers transported by train versus truck, which has been cited by Patrick as a justification for increased charges to rail operators.
 
“We support efficient cost recovery, but not the recovery of inefficient costs. That is the point of the Port Botany Landside Improvement Strategy and the work of the Port Botany Rail Team chaired by Sydney Ports. Inefficient costs need to be removed, not simply passed on through the rail logistics chain.
 
“The current processes being overseen by Sydney Ports as part of the Port Botany Landside Improvement Strategy must be allowed to work their way through to a proper industry solution that addresses the whole of the rail logistics chain and is formally authorised by the ACCC on the basis of its public benefit.
 
“We are particularly concerned about the impact of this on our regional customers, who have already had to deal with drought, competition of supply from the northern hemisphere, rising dollar and the world wide price of grain. The new rules and charges will have a detrimental effect on regional and metro road movements and will impact negatively on the NSW Governments 40% on rail target. We believe regional customers should not have to pay for a stevedore’s operational inefficiencies.”
 
Independent Railways of Australia (IR) operates 16 regional services and 12 metro services weekly.

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