One Rail Australia Explained

One Rail Australia
Former Name:Australian Southern Railroad
Australian Railroad Group
Genesee & Wyoming Australia
Industry:Railway operator
Fate:Acquired by Aurizon
Successor:Aurizon
Magnetic Rail Group
Foundation:1 November 1997
Founder:Genesee & Wyoming Inc
Defunct:29 July 2022 (sold)
Location City:Keswick, Adelaide
Area Served:All mainland states
Key People:Matthew Jones, General Manager
Num Employees:628 (July 2022)
Homepage:1rail.com.au

One Rail Australia was an Australian rail freight operator company. Founded by a United States short line railroad holding company, Genesee & Wyoming Inc, in 1997 as Australian Southern Railroad, and successively renamed Australian Railroad Group and Genesee & Wyoming Australia, it was renamed One Rail Australia in February 2020 after the American company sold its remaining shareholding. In July 2022, assets from the South Australian, Northern Territory and interstate operations of the company were sold to rail operator company Aurizon Holdings Limited. The remaining assets, relating to coal haulage in New South Wales and Queensland, were sold in February 2023 to Magnetic Rail Group.

Corporate history

Genesee & Wyoming Inc was one of several US regional railroad companies to take advantage of the privatisation of Australian rail freight operations in the 1990s.[1] In 1997 its Australian subsidiary (named Australian Southern Railroad at the time) acquired the South Australian rail freight assets of Australian National from the Australian federal government, which included a 50-year lease on the South Australian network from the state government.[2] [3] [4] [5] Operations commenced in November 1997 under the Australian Southern Railroad brand.[6] [7]

In 2000, Australian Railroad Group, a 50–50 joint venture between Genesee & Wyoming and Wesfarmers, took over the Westrail freight business in Western Australia and branded it as Australian Western Railroad.[8] [9] As part of the joint venture agreement, ownership of Australian Southern Railroad passed to the Australian Railroad Group.[10] In 2002, Australian Southern Railroad, Australian Western Railroad and Australian National Railways were brought together as the Australian Railroad Group.[11] [12]

In 2006, Australian Railroad Group sold its Western Australian operations to Queensland Rail and WestNet Rail.[13] Simultaneously, Wesfarmers sold its 50% interest in the remainder of Australian Railroad Group to Genesee & Wyoming Inc, and the business was rebranded Genesee & Wyoming Australia (GWA).[14]

In 2010, GWA purchased the assets of FreightLink from that company's receivers and took over its operations.[15] [16] As a consequence, under a build–own–operate–and–transfer ("BOOT") agreement it became the lessor of the Alice Springs to Darwin section of the Adelaide–Darwin rail corridor until 2054, when ownership was to pass to the Australian federal government.[17] It also became the lessee (from the Australian Rail Track Corporation) of the Tarcoola to Alice Springs sector until 2047. After this acquisition, GWA became the largest of 11 regions around the world in which Genesee & Wyoming Inc operated.[6]

After Freightliner Group was purchased by Genesee & Wyoming Inc in 2015, Freightliner's Australian operations were integrated with those of GWA.[18]

By 2016, GWA had been operating Glencore Rail's assets with fellow Genesee & Wyoming Inc subsidiary Freightliner for some time under a 20-year contract.[19] In conjunction with Macquarie Infrastructure & Real Assets, the company acquired Glencore's Hunter Valley business. Concurrently, Genesee & Wyoming Inc acquired a 49% equity stake in GWA.[20] [21]

In 2019, when the US parent Genesee & Wyoming Inc was sold to Brookfield Infrastructure Partners and GIC Private Limited, GWA was not included.[22] [23] Because Brookfield already had other rail assets in Australia that could well have led to the companies regulator, the Australian Competition and Consumer Commission (ACCC), to block the purchase, the 51% shareholding that Genesee & Wyoming Inc had in GWA was sold separately to PGGM.[24] [25] On departure of its US parent, the company was rebranded as One Rail Australia.[26] [27]

Sale

In October 2021, Aurizon agreed on terms to purchase One Rail Australia. To ameliorate an expected concern of the ACCC about dilution of competition in the Hunter Valley and Queensland coal haulage market, in which the company already operated, Aurizon made a court-enforceable undertaking to divest the coal haulage part of its business.[28] [29] The ACCC did not oppose the company's sale,[30] [31] which took effect on 29 July 2022.[32] [29]

Assets assigned to be divested included 51 locomotives, 1468 freight vehicles, leases to four depots and offices, and two maintenance facilities.[28] [33] Assets acquired by Aurizon through ownership or leaseholding were 3700abbr=offNaNabbr=off of track, 60 locomotives, 770 freight vehicles, five terminals, and six maintenance facilities. About 400 employees transferred.

At the time of the sale, the South Australian, Northern Territory and interstate haulage operations were carrying about 10 million tonnes annually. The divested part of the business conveyed 45 million tonnes of coal annually. Its disposal was arranged by a business unit operated separately from Aurizon, with an independent board and management and an ACCC-approved independent manager.[31] Magnetic Rail Group purchased the assets in February 2023.[34]

The sale price of the divested assets was AUD2.35 billion.[35]

Operational history

In 1999, Australian Railroad Group started operating services from Adelaide to Melbourne for Patrick Corporation.[36] In that year the company also contracted with Liberty House Group to operate iron ore trains on its line from Middleback Range to Whyalla.[37]

In 2001, the company began operating services from Adelaide to Sydney via Broken Hill and Cootamundra.[38] [39] In 2003, it started operating within New South Wales when it was awarded a five-year contract to haul flour, grain and starch for the Manildra Group.[40]

In 2004, when the Alice Springs to Darwin section of the Adelaide–Darwin rail corridor was completed, the company commenced operating intermodal train services between Adelaide and Darwin supported by freight and passenger facilities owned and operated at Alice Springs, Tennant Creek, Katherine and Darwin.[41]

In 2008, as Genesee and Wyoming Australia, the company signed a five-year deal with ABB Grain to haul grain trains in Victoria.[42]

In 2010, when the company purchased the lease of the Alice Springs to Darwin section of the Adelaide–Darwin rail corridor and leased the Tarcoola-to-Alice Springs section, it also undertook train control for both lines.[43] As of 2019, the weekly traffic on the line (in each direction) was six inter-modal, long-distance freight trains and The Ghan, an experiential tourism train.[44] [45]

The company's market was expanded in 2020, when a coal hauling contract was started in Queensland.[46]

Lines operated and serviced

As of 2021, One Rail Australia leased 3700abbr=onNaNabbr=on of standard-gauge and narrow-gauge track.[33] They were in two categories, since the company owned or leased some trackage and utilised some provided by other entities; three were narrow-gauge:

– the 2248abbr=onNaNabbr=on standard-gauge Tarcoola–Darwin route[47] [43]

– the 65km (40miles) narrow-gauge gypsum line to Thevenard[48] [49]

– the federally owned interstate main lines from Kalgoorlie to Victoria and New South Wales[50]

– main lines owned by state government authorities, of which the lines in Queensland were narrow-gauge[50]

– the 112km (70miles) narrow-gauge iron ore lines to Whyalla owned by Liberty House Group.[48] [51]

The adjacent map summarises rail access arrangements for lines in South Australia and the Northern Territory, which formed the initial core of the company's operations. In South Australia, under a state government lease ending in 2047, the company operated and managed the non-metropolitan railway network except for routes to other states, and made it accessible to other companies. It also managed some yards and sidings attached to the ARTC main lines.[52] [50]

The South Australian open-access regime included lines serving grain silos in the Murraylands and on Eyre Peninsula: respectively 1058abbr=offNaNabbr=off of broad gauge and 814abbr=offNaNabbr=off of narrow gauge.[53] Viterra, the monopoly grain handler in South Australia, progressively closed most silos served by the Murraylands lines, resulting in rail haulage ending in the period 2002–2015. Viterra also moved to road transport on the Eyre Peninsula in 2019, resulting in the peninsula network becoming dormant except for the gypsum haulage line from Lake MacDonnell to the port of Thevenard near Ceduna. The Murraylands and Eyre Peninsula networks were the last remnants of the lightly built lines that had been crucial in establishing agriculture in South Australia.[54]

Locomotive fleet

, One Rail Australia's locomotive fleet totalled 132, including 16 in storage, of 24 different classes, as shown in the following table.[55] The table also shows the 51 locomotives of the 2200, GWA, GWN, GWU and XRN classes that were included in the divested assets eventually purchased by Magnetic Rail Group in February 2023.[28]

Class Image No. in useNo. stored GaugeYear builtNotes
5001Standard1964Ex Australian National, formerly South Australian Railways
7005 Broad, standard1971Ex Australian National, formerly South Australian Railways
83023Broad,
standard,
narrow
1960–
1966
Ex Australian National, formerly South Australian Railways
90034Standard,
narrow
1960–
1966
Rebuilt from 830 and 48 class locomotives
12002Narrow1960–
1967
Ex Australian Railroad Group, ex Westrail, formerly Western Australian Government Railways A class
13004Narrow1956–
1961
Ex BHP Whyalla DE class
16003Narrow1971Ex Australian National, formerly Commonwealth Railways NJ class
19001Narrow1972Ex Australian Railroad Group, ex Westrail, formerly Western Australian Government Railways D class
22005Standard1969–
1970
Ex FreightCorp, ex State Rail Authority, formerly Public Transport Commission 422 class.
In the sale of One Rail Australia assets in 2022, locomotive no. 2216 was one of the assets to be divested, on account of competition factors, from those purchased by Aurizon; in February 2023 it was part of those assets when purchased by Magnetic Rail Group.
22505Narrow1971Repatriated from South Africa, ex Aurizon, ex Queensland Railways 2250 class
ALF7Standard1976–
1977
Ex Australian National, formerly Commonwealth Railways AL class
CK4Narrow1967–
1968
Ex V/Line, formerly Victorian Railways T class
CLF2Standard1970–
1972
Ex Australian National, formerly Commonwealth Railways CL class
CLP4Standard1970–
1972
Ex Australian National, formerly Commonwealth Railways
FJ2Standard1966Ex FreightLink ex Western Australian Government Railways J class
FQ4Standard2003Ex FreightLink
G2Standard1988Ex Freightliner, ex SCT Logistics, ex Pacific National, ex Freight Australia ex V/Line G class
GM45Standard1965–
1967
Ex Australian National, formerly Commonwealth Railways
GWA10Standard2011–
2012
In the sale of One Rail Australia assets in 2022, 4 locomotives of this class were among the assets to be divested, on account of competition factors, from those purchased by Aurizon; in February 2023 they were part of those assets when purchased by Magnetic Rail Group.
GWB3Standard2019
GWN5Narrow2012Transferred from Whyalla to Queensland.
In the sale of One Rail Australia assets in 2022, 5 locomotives of this class (nos GWN 001 to GWN 005) were among the assets to be divested, on account of competition factors, from those purchased by Aurizon; in February 2023 they were part of those assets when purchased by Magnetic Rail Group.
GWU11Standard2012–
2021
In the sale of One Rail Australia assets in 2022, 11 locomotives of this class (nos GWU 001 to GWU 011) were among the assets to be divested, on account of competition factors, from those purchased by Aurizon; in February 2023 they were part of those assets when purchased by Magnetic Rail Group.
XRN30Standard2010-
2012
Previously owned by Glencore, built for Xstrata.
In the sale of One Rail Australia assets in 2022, all locomotives of this class were among the assets to be divested, on account of competition factors, from those purchased by Aurizon; in February 2023 they were part of those assets when purchased by Magnetic Rail Group.
1Standard2002Purchased from Pacific National in early 2021

External links

Notes and References

  1. Web site: Genesee & Wyoming Australia renamed One Rail Australia following acquisition . Mark . Carter . 17 February 2020 . International Railway Journal . 18 July 2022 . 30 November 2022 . https://web.archive.org/web/20221130113257/https://www.railjournal.com/freight/genesee-wyoming-australia-renamed-one-rail-australia-following-acquisition/ . live .
  2. "Australia Southern Railroad" Australian Railway Historical Society Bulletin August 2000 pp283-284
  3. "Here & There" Australian Railway Historical Society Bulletin issue 720 October 1997 page 382
  4. "AN Sale: Private Owners Go From Zero to Three" Railway Digest October 1997 page 8
  5. "Three groups take on AN remains" Railway Gazette International October 1997 page 703
  6. https://web.archive.org/web/20200330174522/https://www.gwrr.com/railroads/australia/genesee_wyoming_australia/gwa-history GWA history
  7. "Genesee and Wyoming starts up with new name" Railway Digest December 1997 page 8
  8. "Australian Railroad Group buys Westrail freight" Railway Digest October 2000 page 23
  9. https://web.archive.org/web/20090327235730/http://www.wesfarmers.com.au/about-us/company-history.html Company History
  10. "Here & There" Australian Railway Historical Society Bulletin issue 763 May 2001 page 195
  11. "ASR, AWR and ANR become Australian Railroad Group" Railway Digest September 2002 page 8
  12. "Intelligence" Railway Gazette International October 2002 page 612
  13. https://web.archive.org/web/20140105015135/http://media.corporate-ir.net/media_files/irol/14/144042/releases/feb.14,06-4.pdf Sale of Australian Railroad Group
  14. "Australian Railroad Group sold to QR" Railway Digest March 2006 page 4
  15. http://www.railway-technology.com/news/news87581.html Genesee & Wyoming Signs Deal to Acquire Freightlink
  16. News: Genesee & Wyoming Inc. Signs Agreement to Acquire FreightLink. PR Newswire. 9 June 2010. 9 June 2010. 11 June 2010. https://web.archive.org/web/20100611004714/http://www.prnewswire.com/news-releases/genesee--wyoming-inc-signs-agreement-to-acquire-freightlink-expands-rail-operations-in-south-australia-and-the-northern-territory-95920649.html. live.
  17. http://www.railwaygazette.com/news/single-view/view/australasia-link-making-rapid-progress.html AustralAsia link making rapid progress
  18. https://web.archive.org/web/20191104205241/https://www.railwayage.com/news/gw-concludes-freightliner-acquisition/ G&W concludes Freightliner acquisition
  19. Web site: Wiggins . Jenny . 20 October 2016 . Genesee & Wyoming $1.1b GRail win opens NSW rail haulage to competition . . . 14 October 2017 . 15 October 2017 . https://web.archive.org/web/20171015044755/http://www.afr.com/business/genesee--wyoming-11bn-grail-win-opens-nsw-rail-haulage-to-competition-20161020-gs70af . live .
    subscription: the source is only accessible via a paid subscription ("paywall").
  20. https://web.archive.org/web/20191104094304/https://www.railwayage.com/news/genesee-wyoming-developments-into-australia/ Genesee & Wyoming developments into Australia
  21. http://www.railwaygazette.com/news/freight/single-view/view/gw-and-macquarie-to-buy-glencore-rail-coal-haulage-business.html GW and Macquarie to buy Glencore Rail coal haulage business
  22. http://trn.trains.com/news/news-wire/2019/07/01-genesee--wyoming-sold-in-84-billion-deal Genesee & Wyoming sold in $8.4 billion deal
  23. https://www.railwaygazette.com/news/business/single-view/view/genesee-wyoming-to-be-acquired-in-84bn-deal.html Genesee & Wyoming to be acquired in US$8·4bn deal
  24. https://www.railjournal.com/financial/new-owners-confirmed-gw-australia/ New owners confirmed for G&W Australia
  25. Freightliner owner Genesee & Wyoming sold for $8.4billion The Railway Magazine issue 1422 September 2019 page 10
  26. https://web.archive.org/web/20210117092358/https://www.railjournal.com/freight/genesee-wyoming-australia-renamed-one-rail-australia-following-acquisition/ Genesee & Wyoming Australia renamed One Rail Australia following acquisition
  27. https://www.railexpress.com.au/new-name-genesee-wyoming-australia/ New name for Genesee & Wyoming Australia
  28. Web site: Undertaking to the Australian Competition & Consumer Commission . 13 July 2022 . Australian Competition & Consumer Commission . 5, 49 . 1 August 2022 . 13 August 2022 . https://web.archive.org/web/20220813034812/https://www.accc.gov.au/system/files/public-registers/documents/Aurizon%20One%20Rail%20-%20signed%20final%20%20%20undertaking%20-%20PUBLIC%20VERSION%20-%2013%20July%202022.pdf . live .
  29. Web site: Aurizon Holdings Ltd - One Rail Australia Holdings LP . 14 July 2022 . . 1 August 2022 . 3 August 2022 . https://web.archive.org/web/20220803094556/https://www.accc.gov.au/public-registers/mergers-registers/public-informal-merger-reviews/aurizon-holdings-ltd-one-rail-australia-holdings-lp . live .
  30. Web site: Aurizon's proposed acquisition of One Rail not opposed, subject to divestiture . . 14 July 2022 . Australian Competition & Consumer Commission . 15 July 2022 . 15 July 2022 . https://web.archive.org/web/20220715062515/https://www.accc.gov.au/media-release/aurizon%E2%80%99s-proposed-acquisition-of-one-rail-not-opposed-subject-to-divestiture . live .
  31. Web site: About us . . 2022 . One Rail Australia . 1 August 2022 . 30 July 2022 . https://web.archive.org/web/20220730010149/https://1rail.com.au/ . live .
  32. Web site: About us . . 2022 . One Rail Australia . 1 August 2022 . 30 July 2022 . https://web.archive.org/web/20220730010149/https://1rail.com.au/ . live .
  33. Web site: By the numbers . . 2022 . One Rail Australia . 15 July 2022 . 30 July 2022 . https://web.archive.org/web/20220730010149/https://1rail.com.au/#about . live .
  34. Web site: Divestment of East Coast Rail . David . Wenck . 20 February 2023 . ASX . Australian Securities Exchange . 20 February 2023 . 20 February 2023 . https://web.archive.org/web/20230220053911/https://www.asx.com.au/asxpdf/20230220/pdf/45ls9vqsqzgcx1.pdf . live .
  35. Web site: Aurizon completes acquisition of One Rail Australia . Ackerman . Ian . 29 July 2022 . DCN Daily Cargo News . 2 August 2022 . 30 July 2022 . https://web.archive.org/web/20220730104126/https://www.thedcn.com.au/news/logistics-and-supply-chain/aurizon-completes-acquisition-of-one-rail-australia/ . live .
  36. "ASR Rail Shuttle Takes Trucks out of Port Adelaide" Railway Digest September 1999 page 15
  37. "ASR Takes Over BHP Whyalla Steel Lines" Railway Digest January 2000 page 13
  38. New ASR Freight Service to Sydney Catch Point issue 144 July 2001 page 5
  39. ASR Starts Adelaide - Sydney Service Railway Digest July 2001 page 5
  40. "ARG wins Manildra contract from Pacific National" Railway Digest November 2003 page 5
  41. Web site: Services [Intermodal page] ]. 2022 . One Rail Australia . 19 July 2022 . 30 July 2022 . https://web.archive.org/web/20220730010149/https://1rail.com.au/ . live .
  42. http://news.smh.com.au/business/abb-grain-in-fiveyear-deal-with-gwa-20080917-4iar.html "ABB Grain in five-year deal with GWA"
  43. Web site: Tarcoola . Graham . Vincent . 2014 . SA Track and Signal . 19 July 2022 . 18 August 2022 . https://web.archive.org/web/20220818165830/https://www.sa-trackandsignal.net/Pdf%20files/ARTC/AR807.pdf . live .
  44. Web site: Genesee & Wyoming Australia (GWA) . https://web.archive.org/web/20190118191425/https://www.gwrr.com/railroads/australia/genesee_wyoming_australia#m_tab-one-panel . dead . 18 January 2019 . . 2019 . Genesee & Wyoming Australia . 19 July 2022 .
  45. Web site: The Ghan 2019 fares & timetable . . 2019 . Journey Beyond Rail . 19 July 2019 .
  46. One Rail begins operations in Queensland Railway Digest May 2020 page 15
  47. Web site: Services [Access page] ]. . 2022 . One Rail Australia . 19 July 2022 . 30 July 2022 . https://web.archive.org/web/20220730010149/https://1rail.com.au/ . live .
  48. Web site: Our presence . . 2022 . One Rail Australia . 20 July 2022 . 30 July 2022 . https://web.archive.org/web/20220730010149/https://1rail.com.au/#presence . live .
  49. Web site: No changes to gypsum rail service. https://web.archive.org/web/20190409044954/https://www.westcoastsentinel.com.au/story/5940458/no-changes-to-gypsum-rail-service/. 2019-04-09. West Coast Sentinel. 8 March 2019.
  50. Web site: Our network . . 2022 . ARTC . Australian Rail Track Corporation . 20 July 2022 . 27 June 2022 . https://web.archive.org/web/20220627111833/https://www.artc.com.au/about/network/ . live .
  51. http://www.sa-trackandsignal.net/Pdf%20files/SACountry/GWXS2.pdf Whyalla–Iron Duke/IronKnob
  52. Web site: SA access regime . . 2022 . One Rail Australia . 20 July 2022 . 28 February 2022 . https://web.archive.org/web/20220228235900/https://1rail.com.au/pdf/general/general-information/Gwa%20map%20SA%20(002).pdf . live .
  53. http://www.gwrr.com/operations/railroads/australia/genesee_wyoming_australia Network map
  54. Web site: Eyre Peninsula rail to close as agreement ends. https://web.archive.org/web/20190322063655/https://www.portlincolntimes.com.au/story/5925690/eyre-peninsula-rail-to-close-on-may-31/. 2019-03-22. Port Lincoln Times. 26 February 2019.
  55. Australia wide fleet list 2021 . Burgess . Tony . Renton . Roger . & others . November 2021 . Motive Power. Shortland NSW . Motive Power Publications Pty Ltd. 1442-7079 . 70–71 .