Pacific National

Last updated

Pacific National Pty Ltd
Company type Private
Industry Rail transport
Predecessor FreightCorp
National Rail
FoundedFebruary 2002
Headquarters
Sydney
,
Australia
Area served
Mainland Australia
ServicesRail haulage services
RevenueDecrease2.svg A$2,378 million (June 2017)
Decrease2.svg A$443 million (June 2017)
Decrease2.svg A$260 million (June 2017)
Total assets Decrease2.svg A$5,220 million (June 2017)
596 locomotives and 12,875 wagons (June 2012)
Total equity Decrease2.svg A$1,274 million (June 2017)
Owner Global Infrastructure Partners, CPP Investment Board, China Investment Corporation, GIC Private Limited and British Columbia Investment Management Corporation
Number of employees
approx. 4,000
Divisions Bulk, Coal, Intermodal and Steel
Website www.pacificnational.com.au

Pacific National is Australia's largest private rail freight operator. It was formed in 2002, and is operated by the consortium Australian Logistics Acquisition Investments Pty Ltd. It was previously operated by Toll Holdings before 2016 and Toll and Patrick Corporation before 2005. The rail operator was formed as an amalgamation of FreightCorp and National Rail's freight operations, and later acquired Australian Transport Network. Pacific National has since sold off some of its assets to national and other private operators. It operates services in all mainland Australian states and territories. As of June 2012, the company operates 596 locomotives and 12,875 wagons.

Contents

History

NR16 hauling The Overland at North Shore, November 2008 Pacific National liveried NR16.jpg
NR16 hauling The Overland at North Shore, November 2008

Formation and ATN acquisition

In February 2002, National Rail's freight operations and rollingstock, jointly owned by the Federal, New South Wales and Victorian Governments, were combined with FreightCorp, owned by the New South Wales Government, [1] and sold to a joint venture between Patrick Corporation and Toll Holdings, trading as Pacific National. [2]

In February 2004, Pacific National purchased Australian Transport Network, operator of ATN Access and AN Tasrail. [3] [4] In August 2004, Pacific National purchased Freight Australia, giving Pacific National control of the Victorian non-urban rail track, excluding the interstate network which is controlled by the Australian Rail Track Corporation. [5]

Pacific National train departing from Bathurst, February 2009 Pacific National departing Bathurst.jpg
Pacific National train departing from Bathurst, February 2009

The Australian Competition and Consumer Commission attached special conditions to the sale to ensure competition in the rail freight industry. [6] The company was required to provide a "starter pack" of locomotives, wagons, train paths, and freight terminals for a third party rail operator on the east-west route across the Nullarbor Plain. To fulfil that, Pacific National sold nine refurbished G class locomotives to competitor SCT Logistics to allow it to operate its own services. [7] [ dead link ]

Ownership

In 2005, Toll Holdings launched a successful hostile takeover of its joint venture partner Patrick Corporation, giving Toll Holdings 100% ownership of Pacific National. [8] In 2007, Toll Holdings was restructured into two separately ASX listed companies: Toll Holdings and Asciano Limited. As part of this restructure, Pacific National became a wholly owned subsidiary of Asciano Limited. [9]

In 2016, Asciano agreed to sell Pacific National to Australian Logistics Acquisition Investments Pty Ltd, a consortium of Global Infrastructure Partners, CPP Investment Board, China Investment Corporation, GIC Private Limited and British Columbia Investment Management Corporation. [10] The transfer was completed on 19 August 2016. [11]

Queensland expansion (2005-present)

In March 2005, Pacific National Queensland became the first non-Queensland Rail narrow gauge commercial rail operation in Queensland, with the commencement of container services between Brisbane and Cairns. [12] [13]

In 2009, Pacific National Queensland further expanded its narrow gauge operations, entering the export coal market, then dominated by incumbent Queensland Rail. [14]

Tasmania withdrawal (2005-2009)

In September 2005, Pacific National angered the Tasmanian State and Australian Federal Governments when it threatened to withdraw all services unless the governments paid a $100 million subsidy. [15] Initially the governments refused to act on the issue claiming they would not be "held to mercy" by Pacific National, owned by Toll and Patrick Corporation, "which are extremely profitable multi-national companies". However, state infrastructure minister Bryan Green and federal counterpart transport minister Warren Truss announced a $120 million rescue package. [16]

In May 2007, the Tasmanian Government, the Federal Government and Pacific National came to an agreement regarding the funding, ownership and operation of the Tasmanian railway network; with the Tasmanian Government acquiring the railway infrastructure previously leased to Pacific National, who would continue to provide above rail services on the network. [17] In September 2009, the Tasmanian Government purchased the Tasmanian rail business, with rail infrastructure and railway operations to be maintained, managed and owned by a new TasRail. [18]

In November 2006, Pacific National entered into an agreement to sell the remainder of its Victorian rail lease of the network back to the Victorian Government. [19] The sale was completed in May 2007, with the government-owned V/Line taking over management of the track. [20]

Downsizing controversy (2007-2008)

In December 2007, Pacific National announced plans to sell or close its grain transport and Portlink rural container business operations in Victoria, selling or closing Patrick's intermodal freight business in Tasmania, and downsizing to a bare minimum Pacific National's grain operations across New South Wales. [21] The decision was criticised as it forced grain growers to use higher cost road transport to transport the annual grain harvest from rural silos to the ports. [22] The decision has saw many commentators[ weasel words ] accuse Pacific National of acquiring the operations of Freight Australia in 2004 only for the purposes of asset stripping and eliminating competition in rail freight. [23]

In 2008, the company declined to sell wagons which had reached the end of their useful life to other Australian rail operators, indicating that the wagons would be scrapped or exported to Saudi Arabia. [24]

The container freight service to Horsham, Victoria was almost cancelled in April 2008 but was given a three-month reprieve by the company. [25] [26] In July 2008, the service was taken over by QR National and later Qube. [27]

Operations

Pacific National is Australia's largest private rail freight operator. [28] Pacific National operates in all mainland states and territories.[ citation needed ]As of June 2012,[ needs update ] the company operates 596 locomotives and 12,875 wagons. [29] [30] Services include bulk freight (coal, grain, steel, ore), intermodal containers (domestic and import-export), and specialised services such as 'hook and pull' for long-distance passenger trains.

The Pacific National steel contract was renewed with BlueScope and OneSteel in 2006 for $1bn, making it the largest ever freight rail contract in Australia. The deal involves haulage of about 3 million tonnes of steel over seven years. [31] Pacific National has intermodal freight facilities at the Brisbane Freight Terminal in Queensland, the Melbourne Freight Terminal in Victoria, the Sydney Freight Terminal in New South Wales, the Adelaide Freight Terminal in South Australia and the Kewdale Freight Terminal in Western Australia.

Current locomotive fleet

ClassImageTypeGaugeTop speed
(km/h)
BuiltNumberNotes
Rural and Bulk Division
48 class 48214 at Cootamundra.png Diesel-electric Standard 1151959–197048Ex-FreightCorp: 16 in service
80 class Pacific National 80 class loco (8013) at Port Kembla Downer EDi.jpg Diesel-electricStandard1151979–19832213 stored, 5 scrapped, 4 operational
81 class 8117, NR32 leading a light engine movement into Islington.jpg Diesel-electricStandard1151982–199183Ex-FreightCorp: 83 in service; 8108, 8117 & 8121 allocated to Intermodal
82 class 8230 at Kiama.png Diesel-electricStandard1151994–199554Ex-FreightCorp
BL class Freight train on Stony Point railway line, Melbourne.jpg Diesel-electricStandard, Broad 1151983–198410Ex-National Rail Corporation: 9 in service, 1 stored
G class G522 in Tottenham Yard.jpg Diesel-electricBroad, Standard1151985–198920Ex-National Rail Corporation and Freight Australia: 9 sold to SCT Logistics in 2007. G526, G530, G537, G538 & G542 allocated to intermodal
PL class PL6 Pelton.jpg Diesel-electricStandard1151999–20017Ex-FreightCorp: PL2-PL7 scrapped, PL1 in service as Port Augusta shunter
T class Victorian Railways T class T382 at the SRHC depot in 2024.jpg Diesel-electricBroad, Standard1001964–19681Ex-Freight Australia: T471 in service as North Geelong shunter
X class X41 Stabled at Seymour.JPG Diesel-electricBroad, Standard1151966–19766Ex-Freight Australia: 4 stored
XR class XR558 X50 and BL33 lead 7901V into Mildura. 20-3-21..jpg Diesel-electricBroad, Standard1152002–200696 ex-Freight Australia: 3 built in-house
RT class VR RT20.JPG Diesel mechanicalBroad, Standard151957–196922Ex-Freight Australia: all stored
Intermodal Division
94 class PN 9403 0627.jpg Diesel-electricStandard1152024–present50Fleet rejuvenation in intermodal/interstate operations, plus future Inland Rail. Will have the Evolution series engine. 'C44ESACi'
AN class Pacific National AN Class.jpg Diesel-electricStandard1151992–199310Ex-National Rail Corporation: all stored
DL class PN DL45 TwoWells Dec2007.jpg Diesel-electricStandard1151988–199014Ex-National Rail Corporation: all stored
NR class Pacific National liveried NR16.jpg Diesel-electricStandard1151996–1998117Ex-National Rail Corporation
XRB class Loco-xrb561.jpg Diesel-electricStandard11520053Cabless units: all stored
Coal Division
90 class 9018 at Branxton (Cropped).jpg Diesel-electricStandard801994–200535Ex-FreightCorp
92 class Pacific National 92 Class.jpg Diesel-electricStandard1152008–200915
93 class Pacific National 9307 at Taree.jpg Diesel-electricStandard1152012–202024
LDP class LDP005.jpg Diesel-electricStandard1152009–20109Ex-Downer EDi
TT class TT110 at Metford.jpg Diesel-electricStandard1152009–201240
Pacific National Queensland
71 class QR 3811.jpg Electric Narrow 802009–201142
83 class QRNATIONAL 4140.JPG Diesel-electricNarrow1002008–2013528347-8352 entered service in 2018; ex-Downer EDi
88 class 8Q66 - 8Q74 17-09-19.jpg Diesel-electricNarrow10020145
PH class Pacific National PH37ACmai PH002.jpg Diesel-electricNarrow10020143
PN class PN Class Loco PN002 at Downer EDI Maryborough (Qld)..jpg Diesel-electricNarrow100200513

Former fleet

ClassImageTypeGaugeTop speed
(km/h)
BuiltNumberNotes
45 class 4520 St Peters 12-06-17.jpg Diesel-electricStandard11519622Ex-Patrick Corporation; both scrapped
A class Lyndhurst-cement-train-newport.jpg Diesel-electricBroad1151984-19857Ex-Freight Australia; 6 scrapped (A71, 77, 79, 81, 83 and 85) and 1 (A78) donated to SRHC
D16 class 1965 PORT KEMBLA (3570060668).jpg Diesel-electricStandard351959-196412Handed back to BlueScope
D35 class Diesel-electricStandard5019751Handed back to BlueScope
H class Victorian Railways H Class H1.JPG Diesel-electricBroad, Standard10019685Ex-Freight Australia. 1 scrapped (H4). 1 stored (H1) and 3 sold to Ettamogah Rail Hub in 2015 (H2, H3 + H5) then H1 - H3 + H5 on sold to Watco Australia mid-2023.
L class L 266 Kalgoorlie, 7001.jpg Diesel- electricStandard1371967–1969, 1972–19732Ex-ATN Access; both scrapped
P class Freight Australia loco P22.jpg Diesel-electricBroad10019855Ex-Freight Australia. P19, P21, P22 and P23 sold on; P20 donated to 707 Operations
PB Class Pacific National PB Class.jpg HybridStandard8020147Sold to Watco[ when? ]
S class Pacific National S Class Locomotive.JPG Diesel-electricBroad, Standard11519573Ex-Freight Australia. S301, S306 & S307 all sold to heritage groups in 2023 and 2024
V class Freight Australia V544.jpg Diesel-electricStandard11520021Ex-Freight Australia; sold to Aurizon in August 2022
Y class VR Y class Y119 stabled at the SRHC depot.jpg Diesel-electricBroad, Standard651963–196820Ex-Freight Australia: all on-sold or scrapped
DQ class Tasrail-2002-20151117-001.jpg Diesel-electricNarrow1964-196912To TasRail in 2009, 4 stored
DV class Driving Van 1, ex TGR Y7.jpg Diesel-electricNarrow1961-19711To TasRail in 2009, De-motored and is used as a driving van
Y class Locomotive 2150, ex Y1.jpg Diesel-electricNarrow1961-19711To TasRail in 2009, 1 in service as a shunter and one de-motored and is used as a driving van
D class D 1562 Bunbury Port, 2004.jpg Diesel-electricNarrow19712To TasRail in 2009, all stored
DC class KiwiRail Dc4939 & Dc4916 (25045946552).jpg Diesel-electricNarrow19641To TasRail in 2009, scrapped
MKA class Train on south line near hobart.jpeg Diesel-electricNarrow1967-19726To TasRail in 2009, all stored
QR class Diesel-electricNarrow1964-19693To TasRail in 2009, All scrapped
Z class Diesel-electricNarrow19734To TasRail in 2009, all preserved; 2 at Don River Railway; 2 at Bellarine Peninsula Railway
Za class Tgr za bell bay.jpg Diesel-electricNarrow1973-19763To TasRail in 2009, 1 stored, 2 preserved (1 at Don River Railway); 1 at Tasmanian Transport Museum
ZB class Ex Queensland English Electric Locomotive ZB2123 makes it's final run from Boyer to Brighton.jpg Diesel-electricNarrow19734To TasRail in 2009, 2 preserved (one at Don River Railway, other at Launceston and North East Railway), 2 stored;
ZC class 1312 - 021286 - Eagle Junction.jpeg Diesel-electricNarrow1966-724To TasRail in 2009, 3 scrapped, 1 preserved at Launceston and North East Railway
ZP class TasRail 2100 Loco.jpg Diesel-electricNarrow19731To TasRail in 2009, preserved at the Don River Railway
ZR class Dia 0181.jpg Diesel-electricNarrow19731To TasRail in 2009, stored

References

  1. "FreightCorp for sale with National Rail" Railway Digest October 2000 page 17
  2. Buchanan, Alison. "Freightcorp and National Rail Corporation sold to National Rail Consortium for one billion dollars". ABC Rural. Australian Broadcasting Corporation. Archived from the original on 7 January 2003. Retrieved 7 June 2023.
  3. Acquirer: Pacific National Pty Ltd; Target: Australian Transport Network Ltd Archived 31 March 2012 at the Wayback Machine Australian Competition & Consumer Competition 30 March 2004
  4. Re: Pacific National - Australian Transport Network Ltd Archived 19 March 2012 at the Wayback Machine Toll Group 26 February 2004
  5. Victorian Government grants consent to Pacific National acquisition of Freight Australia Archived 19 March 2012 at the Wayback Machine Toll Group 16 August 2004
  6. "Sydney Morning Herald: 'ACCC won't oppose Freight Australia takeover' - 2 July 2004". 2 July 2004. Archived from the original on 28 July 2009. Retrieved 9 October 2007.
  7. Toll boss bows to ACCC pressure Courier Mail 13 December 2005
  8. Game over: Toll takes Patrick Archived 1 January 2007 at the Wayback Machine Sydney Morning Herald 14 April 2006
  9. "Toll Holdings Restructure". Toll Holdings. Archived from the original on 30 August 2007. Retrieved 2 October 2007.
  10. "Pacific National sold to international pension funds". International Railway Journal. 15 March 2016. Archived from the original on 28 August 2016. Retrieved 23 August 2016.
  11. "Asciano completes Pacific National ownership deal". International Railway Journal. 23 August 2016. Archived from the original on 28 August 2016. Retrieved 23 August 2016.
  12. "Pacific National Queensland". www.pacificnational.com.au. Archived from the original on 23 March 2010. Retrieved 22 June 2010.
  13. Jenny Woodward (11 March 2005). "Making Tracks". Stateline Queensland. www.abc.net.au. Archived from the original on 11 November 2012. Retrieved 22 June 2010.
  14. Perry, Jennifer (20 May 2009). "PN commences QLD coal haulage operations". Rail Express. www.railexpress.com.au. Archived from the original on 1 October 2009. Retrieved 22 June 2010.
  15. "Govt signs off on Tassie rail package". ninemsn. 29 September 2005. Archived from the original on 18 November 2005. Retrieved 2 November 2006.
  16. Tas govt wins control of rail network Archived 18 November 2007 at the Wayback Machine The Age 12 December 2005
  17. "Tasmanian Railway Network Declaration Application" (PDF). National Competition Council. 1 May 2007. Archived from the original (PDF) on 16 February 2011. Retrieved 22 June 2010.
  18. Rail Sale Agreement Finalised Archived 11 April 2013 at the Wayback Machine Asciano 7 September 2009
  19. Pacific National sells Victorian rail network to Government Archived 19 March 2012 at the Wayback Machine Toll Group 1 November 2006
  20. Minister for Public Transport: "Rail Buy Back Deal Complete" 7 May 2007 Archived 7 May 2008 at the Wayback Machine
  21. "Pacific National to sell or close rail freight business". ABC News website. 12 December 2007. Archived from the original on 14 December 2007. Retrieved 17 December 2007.
  22. Easdown, Geoff (12 December 2007). "Asciano delivers grain haulage shock to farmers". Herald and Weekly Times website. Archived from the original on 6 June 2008. Retrieved 17 December 2007.
  23. "Freight Australia Exiting". Railpage Australia forums. 12 December 2007. Archived from the original on 6 June 2008. Retrieved 17 December 2007.
  24. Philip Hopkins (21 March 2008). "Off the rails". The Age. business.theage.com.au. Archived from the original on 25 June 2008. Retrieved 22 June 2008.
  25. "Rail freight woes spark crisis of confidence". ABC News. www.abc.net.au. Archived from the original on 27 July 2009. Retrieved 16 July 2008.
  26. "Three month extension for Wimmera rail freight services". ABC News. www.abc.net.au. 24 April 2008. Archived from the original on 27 July 2009. Retrieved 16 July 2008.
  27. "Rail to roll on". Wimmera Mail Times. yourguide.com.au. 28 July 2008. Archived from the original on 29 July 2008. Retrieved 30 July 2008.
  28. "Pacific National - Largest Rail Operator in Australia". pacificnational.com.au. Archived from the original on 4 January 2019. Retrieved 22 November 2025.
  29. Pacific National Coal Archived 25 February 2013 at the Wayback Machine Asciano
  30. Pacific National Rail Archived 11 February 2013 at the Wayback Machine Asciano
  31. "PacNat wins $1bn freight deal". news.com.au. 18 December 2006. Archived from the original on 27 July 2009. Retrieved 18 December 2006.

Bibliography

  • Avery, Rod (2006). Freight Across the Nation: The Australian Superfreighter Experience. Brisbane: Copyright Publishing Co. ISBN   1876344474.