Petition updateTo re-open the Mid North and Barossa Railway Lines for Passenger ServicesSome Facts that may interest you about Regional Rail in SA
South Australian Regional Rail Alliance
Nov 21, 2014
Here are some facts about regional rail as we understand them that may interest you.
Fact 1: The regional railway system in South Australia was sold/leased by the then Federal Liberal Party in 1997 to the American rail company Genesee & Wyoming Australia (GWA) who at the time were known as Australian Southern Railroad (ASR).
Fact 2: The land is leased to Genesee & Wyoming Australia Pty Ltd (GWA) for a term of 50 years commencing 7/11/97
Fact 3: The lease to GWA provides that GWA must "to the extent necessary to avoid nuisance to neighbouring properties, to safeguard public safety and to maintain the Lessee's ability to conduct Railway Operations" .... "keep the Lessee's Property clean and in good repair and condition" ... "keep any buildings on the Land clean and in good condition"...
Fact 4: In their own annual report from 2010, GWA have stated:
“Our concession and/or lease agreements in Australia could be cancelled, and there is no guarantee these agreements will be extended beyond their terms. These concession and lease agreements are subject to a number of conditions, including those relating to the maintenance of certain standards with respect to service, price and the environment. These concession and lease agreements also typically carry with them a commitment to maintain the condition of the railroad and to make a certain level of capital expenditures, which may require capital expenditures that are in excess of our projections. Our failure to meet these commitments under the long-term concession and lease agreements could result in the termination of those concession or lease agreements”
Fact 5: In a response letter dated 13/8/14 from the Minister for Transport & Infrastructure, the Hon. Stephen Mullighan MP stated that: “The rail infrastructure is not a South Australian Government asset, however Geneese & Wyoming Australia is obligated to maintain it to a requirement to ensure the network is in such condition that trains could be operated at two weeks notice”.
Fact 6: We know that according to the facts and documents, and according to the their own admission, 3,4 & 5 of these lease agreement have not been upheld, especially when one takes a look at the condition of these lines, which include overgrowth and in one instance a washaway.AN made it possible to make sure that the regional passenger rail system made a loss by doing two things,
Fact 7: A document released in 2007 by Chris Hall from Bluebird rail states that:
“The AN Board was not happy about the positive performance of the passenger business. The Board’s aim was to get rid of the business at any cost, and for political reasons, it was considered that the electorate would oppose the sale of a profitable Government owned business. The aim therefore was to make the passenger business appear unfavourable and to be making a substantial loss. When an advertising campaign was launched over a Christmas period, Chris was called in to explain why the Business was being advertised. The Board made it clear that there was not to be any advertising of the AN Passenger trains.”
Fact 8: AN made it possible to make sure that the regional passenger rail system made a loss by doing two things:
1. They changed the time table of the trains so that it became inconvenient for the public to use the services. For example, the Victor Harbor trains were arriving back into Adelaide station at 1:10am in the morning to make sure that the trains ran empty.
2. When running trains to Mt Gambier, Broken Hill and Whyalla for example, AN ran less carriages as to make sure the train was not able to pay it’s way and lost money on these service.
Fact 9: We also understand that in a released document by the productivity commission report in 22/3/2010, it was stated that “SAFF Grains were given details of how Genesee & Wyoming Australia Pty The South Australian Farmers Federation (SAFF) Ltd, who have a five-year agreement with Viterra have put unreasonable controls on their rail-lines in South Australia and are charging exorbitant fees, This pricing structure virtually precludes any other company but Viterra from using rail in South Australia easily and cost effectively”
Fact 10: In a emailed letter dated Wednesday, 20 August 2014, we have asked the Govt and effectively putting them on notice in relation to the breach of the lease agreement when we asked a series of questions relating to GWAbreaches of the regional railway. These questions were:
1) Is the Government aware that GWA have not been doing this, that GWA have not been maintaining the rail infrastructure to "ensure the network is in such a condition that trains could be operated on within two weeks notice."?
2) At what efficiency are the trains expected to operate on these lines? Would the infrastructure need to be reopened that the trains could be run at a reasonable speed or, could the clause in the agreement be interpreted in such a way that GWA would only need to reopen the infrastructures even if it meant that the trains could only operate at very low speeds but the lines are usable?
3) Who would have to pay the cost of these repairs so that the infrastructure could be operated on within a two week period?
4) In relation to the productivity commission report in 22/3/2010, has this type of action been rectified to make sure that other operators can use the infrastructure at a cost that is not considered to have a detriment to the operator? And
a) Is it incorporated in the clause that any charges to reopen the infrastructure dose not go to the incoming operator but is charged only to the lease holder that being GWA, who are responsible as stated that “GWA is obligated to maintain the rail infrastructure?
b) And does the clause address the issue to make sure that these costs are not hidden in the track access fees charged by GWA?
5). Will the State Government hold GWA accountable for the condition of the rail infrastructures and bring them back to the standard to which they were before GWA took them on in a lease agreement in 1997? And as specified in the ministers response letter that GWA is “obligated to maintain the rail infrastructure to ensure the network is in such a condition that trains could be operated on within two weeks notice”.
We are still waiting for a response to these questions.
Please share this around folks, and don't forget to share the petition as well!
Kind Regards,
Mitchell Heard
heardy_101@hotmail.com.au
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