One Rail Australia

One Rail Australia
FormerlyAustralian Southern Railroad
Australian Railroad Group
Genesee & Wyoming Australia
IndustryRailway operator
PredecessorAustralian National
Founded1 November 1997
FounderGenesee & Wyoming Inc
Defunct29 July 2022 (sold)
FateAcquired by Aurizon
SuccessorAurizon
Magnetic Rail Group
Headquarters
Keswick, Adelaide
Area served
All mainland states
Key people
Matthew Jones, General Manager
Number of employees
628 (July 2022)
Website1rail.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

Progression of corporate structures to 2022
Click to enlarge
A standard-gauge train of Chicago Freight Car Leasing Australia grain hopper cars near Geelong in 2007, hauled by GWA's CL, GM and 2200 class locomotives
A narrow-gauge iron ore train on the heavy-haul line between the Middleback Range and Whyalla, South Australia
GWA operated the broad-gauge train between Penrice limestone quarry and the Adelaide outer suburb of Osborne until 2014, when the soda ash factory closed

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] [note 1]

Assets assigned to be divested included 51 locomotives, 1468 freight vehicles, leases to four depots and offices, and two maintenance facilities.[28]: 49–50  [33] Assets acquired by Aurizon through ownership or leaseholding were 3700 kilometres (2300 miles) of track, 60 locomotives, 770 freight vehicles, five terminals, and six maintenance facilities. [note 2] 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.[note 3] 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

Before One Rail Australia was sold in July 2022, its operations spanned the entire Australian mainland. The purchaser, Aurizon, retained all assets other than those related to coal haulage in New South Wales and Queensland (pink areas), which were purchased by Magnetic Rail Group in February 2023. (Click to enlarge.)

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][note 4] 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.[45][46]

The company's market was expanded in 2020, when a coal hauling contract was started in Queensland.[47]

Lines operated and serviced

As of 2021, One Rail Australia leased 3700 km (2300 mi) of 1435 mm (4 ft 8+1⁄2 in) standard-gauge and 1067 mm (3 ft 6 in) 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:

  • lines leased by the company, on which it provided services (described as "above and below ground"):
– the 2248 km (1397 mi) standard-gauge Tarcoola–Darwin route[48][43]
– the 65 km (40 mi) narrow-gauge gypsum line to Thevenard[49][50]
  • lines owned by other companies, on which One Rail Australia provided services (described as "above ground"):
– the federally owned interstate main lines from Kalgoorlie to Victoria and New South Wales[51]
– main lines owned by state government authorities, of which the lines in Queensland were narrow-gauge[51]
– the 112 km (70 mi) narrow-gauge iron ore lines to Whyalla owned by Liberty House Group.[49][52]
One Rail Australia commenced its operations in South Australia and the Northern Territory and on interstate routes under a variety of rail access arrangements involving leasing, ownership and operation of different lines. Aurizon inherited the arrangements on these lines when it purchased One Rail Australia in 2022. (Click to enlarge.)

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.[53][51][44]

The South Australian open-access regime included lines serving grain silos in the Murraylands and on Eyre Peninsula: respectively 1058 kilometres (657 miles) of broad gauge and 814 kilometres (506 miles) of narrow gauge.[54] 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.[55] [note 5]

Locomotive fleet

As of November 2021, One Rail Australia's locomotive fleet totalled 132, including 16 in storage, of 24 different classes, as shown in the following table.[57] [note 6] 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]: 49 


Class Image No. in use No. stored Gauge Year built Notes
500 1 Standard 1964 Ex Australian National, formerly South Australian Railways
700 5[note 7] Broad, standard 1971 Ex Australian National, formerly South Australian Railways
830 2 3 Broad,
standard,
narrow 		1960–
1966 		Ex Australian National, formerly South Australian Railways
900 3 4 Standard,
narrow 		1960–
1966 		Rebuilt from 830 and 48 class locomotives
1200 2 Narrow 1960–
1967 		Ex Australian Railroad Group, ex Westrail, formerly Western Australian Government Railways A class
1300 4 Narrow 1956–
1961 		Ex BHP Whyalla DE class
1600 3 Narrow 1971 Ex Australian National, formerly Commonwealth Railways NJ class
1900 1 Narrow 1972 Ex Australian Railroad Group, ex Westrail, formerly Western Australian Government Railways D class
2200 5 Standard 1969–
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;[28] in February 2023 it was part of those assets when purchased by Magnetic Rail Group.[34]
2250 5 Narrow 1971 Repatriated from South Africa, ex Aurizon, ex Queensland Railways 2250 class
ALF 7 Standard 1976–
1977 		Ex Australian National, formerly Commonwealth Railways AL class
CK 4 Narrow 1967–
1968 		Ex V/Line, formerly Victorian Railways T class
CLF 2 Standard 1970–
1972 		Ex Australian National, formerly Commonwealth Railways CL class
CLP 4 Standard 1970–
1972 		Ex Australian National, formerly Commonwealth Railways
FJ 2 Standard 1966 Ex FreightLink ex Western Australian Government Railways J class
FQ 4 Standard 2003 Ex FreightLink
G 2 Standard 1988 Ex Freightliner, ex SCT Logistics, ex Pacific National, ex Freight Australia ex V/Line G class
GM 4 5 Standard 1965–
1967 		Ex Australian National, formerly Commonwealth Railways
GWA 10 Standard 2011–
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;[28] in February 2023 they were part of those assets when purchased by Magnetic Rail Group.[34]
GWB
Upload a photo 		3 Standard 2019
GWN 5 Narrow 2012 Transferred 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;[28] in February 2023 they were part of those assets when purchased by Magnetic Rail Group.[34]
GWU 11 Standard 2012–
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;[28] in February 2023 they were part of those assets when purchased by Magnetic Rail Group.[34]
XRN 30 Standard 2010-
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;[28] in February 2023 they were part of those assets when purchased by Magnetic Rail Group.[34]
V 1 Standard 2002 Purchased from Pacific National in early 2021

Notes

  1. ^ The parties were Aurizon Holdings Ltd (the acquirer) and various entities of Macquarie Asset Management (MAM), on behalf of MAM's funds, and PGGM Infrastructure Fund, to acquire 100% of One Rail Australia Holdings LP (the target), the South Australian limited partnership that owned the One Rail Australia business.[28]: 4–5 
  2. ^ Difference between data shown on the One Rail Australia website on 15 July 2022 (before the sale) and 3 August, when data was for the divested business.[33]
  3. ^ Difference between the 55 million tonnage shown on the One Rail Australia website on 15 July 2022 (before the sale) and 3 August, when the tonnage, of 45 million, was that of the divested business.[33]
  4. ^ The lease includes provisions for access by other rail operating companies.[44]
  5. ^ When demand for services on a line has ceased and no new demand eventuates, the track is classified as discontinued and put into a dormant state on care and maintenance for a period of five years. During this period One Rail Australia is responsible for ongoing care, security and maintenance that includes maintaining the working order of all equipment, i.e. level crossings, signals, controls and switches so that a train can operate within 24 hours notice and will reinstate at its own cost if an access seeker negotiates to return a train to operation. The discontinued track is transferred back to the South Australian Government after five years if services do not return.[56]
  6. ^ Some change in the fleet size occurred between October 2019 and July 2022, immediately before the company's sale, when the One Rail Australia website nominated 113 locomotives.[33]
  7. ^ In 2022, after this list was published, One Rail Australia took action to dispose of the remaining 700 class locomotives: selling 701, donating 703, 704 and 705 to railway heritage organisations; and disposing components of 706. Details are here.[58]

References

  1. ^ Carter, Mark (17 February 2020). "Genesee & Wyoming Australia renamed One Rail Australia following acquisition". International Railway Journal. Archived from the original on 30 November 2022. Retrieved 18 July 2022.
  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. ^ a b GWA history Genesee & Wyoming
  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. ^ Company History Wesfarmers
  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. ^ Sale of Australian Railroad Group Wesfarmers 14 February 2006
  14. ^ "Australian Railroad Group sold to QR" Railway Digest March 2006 page 4
  15. ^ Genesee & Wyoming Signs Deal to Acquire Freightlink Archived 10 February 2015 at the Wayback Machine railway-technology.com 11 June 2010
  16. ^ "Genesee & Wyoming Inc. Signs Agreement to Acquire FreightLink". PR Newswire. 9 June 2010. Archived from the original on 11 June 2010. Retrieved 9 June 2010.
  17. ^ AustralAsia link making rapid progress Archived 17 February 2020 at the Wayback Machine Railway Gazette International 1 April 2002.
    Paid subscription required subscription: the source is only accessible via a paid subscription ("paywall").
  18. ^ G&W concludes Freightliner acquisition Railway Age 27 March 2015
  19. ^ Wiggins, Jenny (20 October 2016). "Genesee & Wyoming $1.1b GRail win opens NSW rail haulage to competition". Australian Financial Review. Fairfax Media. Archived from the original on 15 October 2017. Retrieved 14 October 2017.
    Paid subscription required subscription: the source is only accessible via a paid subscription ("paywall").
  20. ^ Genesee & Wyoming developments into Australia Railway Age 20 October 2016
  21. ^ GW and Macquarie to buy Glencore Rail coal haulage business Archived 21 October 2016 at the Wayback Machine Railway Gazette International 20 October 2016
  22. ^ Genesee & Wyoming sold in $8.4 billion deal Archived 1 July 2019 at the Wayback Machine Trains 1 July 2019
  23. ^ Genesee & Wyoming to be acquired in US$8·4bn deal Archived 2 July 2019 at the Wayback Machine Railway Gazette International 1 July 2019
  24. ^ New owners confirmed for G&W Australia Archived 15 April 2023 at the Wayback Machine International Railway Journal 9 August 2019
  25. ^ Freightliner owner Genesee & Wyoming sold for $8.4billion The Railway Magazine issue 1422 September 2019 page 10
  26. ^ Genesee & Wyoming Australia renamed One Rail Australia following acquisition International Railway Journal 17 February 2020
  27. ^ New name for Genesee & Wyoming Australia Archived 25 February 2020 at the Wayback Machine Rail Express 19 February 2020
  28. ^ a b c d e f g h i "Undertaking to the Australian Competition & Consumer Commission" (PDF). Australian Competition & Consumer Commission. 13 July 2022. pp. 5, 49. Archived (PDF) from the original on 13 August 2022. Retrieved 1 August 2022.
  29. ^ a b "Aurizon Holdings Ltd - One Rail Australia Holdings LP". Australian Competition & Consumer Commission. 14 July 2022. Archived from the original on 3 August 2022. Retrieved 1 August 2022.
  30. ^ "Aurizon's proposed acquisition of One Rail not opposed, subject to divestiture". Australian Competition & Consumer Commission. 14 July 2022. Archived from the original on 15 July 2022. Retrieved 15 July 2022.
  31. ^ a b "About us". One Rail Australia. 2022. Archived from the original on 30 July 2022. Retrieved 1 August 2022.
  32. ^ "About us". One Rail Australia. 2022. Archived from the original on 30 July 2022. Retrieved 1 August 2022.
  33. ^ a b c d e "By the numbers". One Rail Australia. 2022. Archived from the original on 30 July 2022. Retrieved 15 July 2022.
  34. ^ a b c d e f Wenck, David (20 February 2023). "Divestment of East Coast Rail" (PDF). ASX. Australian Securities Exchange. Archived (PDF) from the original on 20 February 2023. Retrieved 20 February 2023.
  35. ^ Ackerman, Ian (29 July 2022). "Aurizon completes acquisition of One Rail Australia". DCN Daily Cargo News. Archived from the original on 30 July 2022. Retrieved 2 August 2022.
  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. ^ "Services [Intermodal page]". One Rail Australia. 2022. Archived from the original on 30 July 2022. Retrieved 19 July 2022.
  42. ^ "ABB Grain in five-year deal with GWA" Archived 17 September 2008 at the Wayback Machine Sydney Morning Herald 17 September 2008
  43. ^ a b Vincent, Graham (2014). "Tarcoola" (PDF). SA Track and Signal. Archived (PDF) from the original on 18 August 2022. Retrieved 19 July 2022.
  44. ^ a b "Access to the South Australian regional rail network". One Rail Australia. 2022. Archived from the original on 14 July 2022. Retrieved 20 July 2022.
  45. ^ "Genesee & Wyoming Australia (GWA)". Genesee & Wyoming Australia. 2019. Archived from the original on 18 January 2019. Retrieved 19 July 2022.
  46. ^ "The Ghan 2019 fares & timetable". Journey Beyond Rail. 2019. Retrieved 19 July 2019.
  47. ^ One Rail begins operations in Queensland Railway Digest May 2020 page 15
  48. ^ "Services [Access page]". One Rail Australia. 2022. Archived from the original on 30 July 2022. Retrieved 19 July 2022.
  49. ^ a b "Our presence". One Rail Australia. 2022. Archived from the original on 30 July 2022. Retrieved 20 July 2022.
  50. ^ "No changes to gypsum rail service". West Coast Sentinel. 8 March 2019. Archived from the original on 9 April 2019.
  51. ^ a b c "Our network". ARTC. Australian Rail Track Corporation. 2022. Archived from the original on 27 June 2022. Retrieved 20 July 2022.
  52. ^ Whyalla–Iron Duke/IronKnob Archived 18 August 2022 at the Wayback Machine SA Track & Signal
  53. ^ "SA access regime" (PDF). One Rail Australia. 2022. Archived (PDF) from the original on 28 February 2022. Retrieved 20 July 2022.
  54. ^ Network map Archived 4 April 2015 at the Wayback Machine Genesee & Wyoming Australia
  55. ^ "Eyre Peninsula rail to close as agreement ends". Port Lincoln Times. 26 February 2019. Archived from the original on 22 March 2019.
  56. ^ "Freight Study and Rail Operations Investigation South Australian Mallee" (PDF). Regional Development Australia. Regional Development Australia - Murraylands and Riverland Inc. 2014. Archived from the original (PDF) on 16 March 2015. Retrieved 17 July 2022.
  57. ^ Burgess, Tony; Renton, Roger; & others (November 2021). "Australia wide fleet list 2021". Motive Power. Shortland NSW: Motive Power Publications Pty Ltd. pp. 70–71. ISSN 1442-7079.
  58. ^ Sampson, Bob (September 2022). "700 class locomotives latest moves". Catch Point Magazine. Port Adelaide: National Railway Museum. p. 14.