FreightLink to launch in Q1 2004 - Freight Forwarding - FreightLink Proprietary Ltd. Alice-Darwin Rail Link operation

Business Asia, June, 2003

Construction of the Alice-Darwin Rail Link is on track, with more than 80 per cent now complete. Operations are planned to begin early next year.

The progress of the construction phase means the line is scheduled for hand over to the new operators, FreightLink, at the end of 2003.

The company has unveiled its business and marketing plans for the start of freight operations on the line, which will begin in mid January 2004.

FreightLink CEO Bruce McGowan said the start of operations would be a historic occasion for Australia's transport system. "The company will ensure that services are competitive and reliable on start-up for attracting both domestic and international freight," McGowan said.

"FreightLink will predominantly act as a 'wholesaler' of 'terminal to terminal line-haul' services to major freight forwarders, who would in turn retail their services to end-users. We will also establish direct relationships with those customers requiring specialised equipment or services such as the petroleum companies, mineral producers and the defence industry.

"Our timetables and pricing proposals are complete and we have provided them to freight forwarders--discussions are continuing. We are now in the process of finalising terminals, acquiring rolling stock, recruiting and engaging additional staff for Adelaide and Darwin, and working with government and industry customers on ways to maximise the railways contribution to long-term economic development in and around the central corridor. We're also looking to appoint a regional manager to work from our office, which will be set up in Darwin later in the year."

A key focus for freight operations will be to develop a strong local presence and alignment with the Northern Territory Government's regional development strategy. The business plan recognises the railway's important role in the Northern Territory Government's ambitions to promote Darwin as Australia's Asian Gateway.

McGowan said FreightLink was very supportive of plans to build Darwin into a major trade and distribution hub, and agreed that efforts to develop Darwin's transport and logistics capabilities were key to creating opportunities in the region over the longer-term.

"The railway, and FreightLink's service, offers opportunity, possibility and potential for the Northern Territory, South Australia and indeed the rest of Australia," McGowan said.

"We believe that by working together FreightLink, manufacturers and business-importers and exporters, freight forwarders, entrepreneurs and the Northern Territory and South Australian Governments will be well positioned to maximise opportunities for business and economic development in the region.

"The first major business for the new line is expected to be existing Darwin-bound freight, which currently goes to Alice Springs by rail and then by road. Up to 350,000 tonnes of fuel and general products are already carried by road and rail. There is potential to increase this to over 800,000 tonnes during the first few years of operations. The transit time from Adelaide to Darwin is about 43 hours," McGowan said.