Asciano prepares for a sale

MARTIN COLLINS: John Durie | September 19, 2008

ASCIANO is now worth one-third of its value back in October when debt was
good and hedge funds had better things to do with their lives than trying to
out-short one another.

The reason, of course, is its high debt levels.

The spectre of a private equity buyout bid still looms, but it's not quite
on the immediate horizon.

TPG's partner, Global Infrastructure Partners, is, however, opening an
office in Australia, a sign that it is ready to play vulture when Babcock &
Brown et al really start their fire sales. Asciano has hired ABN AMRO to
look for a buyer of its with the aim of raising about $700 million and
avoiding the need for some $3.8 billion in capital expenditure required to
milk the hoped-for expansion of the business.

Today is obviously not a great time to be selling anything, but the company
has some time, so it's early days yet in the process. Rail didn't hit the
heights ports did when infrastructure was a hot market and ports were
selling at up to 25 times earnings before interest, tax and depreciation.

Bonuses at Asciano after horror year

Scott Rochfort

September 20, 2008

THE chief executive of the debt-crippled Asciano Group, Mark Rowsthorn, was
paid a $1.3 million "cash incentive" last financial year, a period in which
the company reported a $695 million loss and suffered a 70 per cent slump in
its share price.

Mr Rowsthorn's horror first year at the helm of the ports and rail operator
offered a few small consolations, Asciano's first annual report since the
spin-off of the ports and rail operator from Toll Holding showed.

Compared to the $1.46 million base salary Mr Rowsthorn earned at Toll
Holdings in 2006-07, his base pay at Asciano was $1.83 million. In all, he
earned $3.7 million for the year, including $503,233 in share-based
payments.

But the company's share price slump has had a big effect on Mr Rowsthorn's
wealth, with his 6 per cent shareholding in the group now worth around $136
million, compared with about $500 million in mid-2007.

Mr Rowsthorn was also burnt when he put $50 million of his own money into a
share placement at $10.65 in June 2007.

I've been working as a flagman in Vic for the past few yrs and I'm also a
electronics tech.

A recent incident prompted me to start designing a type of torch that uses
LEDs that will change colour at the flick of a switch (red, green, yellow
and white) instead of the silly coloured lenses with velcro that we are
using now.

There are torches comercialy available at the moment that will do this,
but they are not approved for use as they use a rechargable battery that
can't be removed, so if it goes flat half way through a shift you're in
the poo.

I'm told that using a yellow torch/flag when we set up standard protection
is a fairly recent inovation (it used to be a white flag/torch) and is only
done in Victoria. Is that correct?

From
http://www.abc.net.au/news/stories/2008/09/11/2361653.htm

As he bows out after three tempestuous years as Telstra's chief spin doctor,
Phil Burgess is writing a book about his Australian regulatory and political
adventures.

He is calling it, What's Up Down Under.

Dr Burgess, who is set to return to the US, says Australians deserve the
truth about Telstra, which he still believes is hamstrung by what he calls
"moonshine regulation."

A big part of the Phil Burgess history goes back to his appointment in 2005
when Telstra was in crisis.

At a private dinner he dropped what appeared to be a clanger - that he would
not recommend Telstra shares to his mother.

On the surface, it was hardly an endorsement. But Dr Burgess now says that
far from a slip up, it was a carefully workshopped message in Telstra's
campaign against regulation.

"We tried to do background papers, we tried to do background briefings, we
tried to have fact sheets put together and so on," he said.

Overseas paying to park is common. If it is cheap and safe I would pay.

Next you'll pay to park . and more to ride

Brian Robins and Alex Tibbitts
September 10, 2008

THE State Government is moving to charge fees for cars parked at railway
stations, overturning its long-standing "park and ride" policy to get more
people on public transport and off crowded roads.

Commuters already face a steep rise in train and bus fares but could soon be
paying for parking that until now has been free.

The Rees Government will receive a report from consultants within weeks on
how to tap private investor funds to build and operate car parks at railway
stations across the city.

The Government is planning to spend $45 million to provide an extra 4000
parking places, according to data obtained from the Ministry of Transport.
But amid the broader budgetary crisis, it will be under pressure to make
commuters pay to use them.

Big car parks are being planned at Seven Hills, St Marys, Glenfield,
Blacktown, Revesby, Schofields-Quakers Hill and Glenfield, along with a
second station at Holsworthy to cost $9 million.

We have for sale a 1900's ZL 270 model guards wagon originally out of
'Spencer Street' (now Southern Cross) rail way station.
The exterior of the wagon is in reasonable condition with the interior
very reasonable condition.
YOU WILL NOT FIND ANOTHER WAGON LIKE THIS AGAIN!
Very suitably for storage, decoration, promotion or a great project
for a restorer to turn into a bungalow etc...

Pictures and more info can be found here: http://abe5.com/7m9

Talk to me about transport, I can help you out please do not hesitate
to call: 04 01 291 437.

You will not be missed.
http://www.livenews.com.au/Articles/2008/09/05/Nathan_Rees_looking_to_topple_Mor...

Connex has taken all Hitachi trains out of service because of rust
problems. Connex spokesman, John Rees, says rust found under the floor
of the trains could affect their structural integrity.

http://tinyurl.com/62qr9o

Paul Westcott

The preliminary report of the Australian Transport Safety Bureau's Rail
Safety Investigation into the derailment of 5WX2 near Winton, Victoria,
on 31 July has been released.

It finds the most likely cause of the derailment was that "one of the
right-hand wheels of a wagon carrying coiled steel climbed and travelled
over the top of the rail to the right-hand side of the track".

http://tinyurl.com/5nas8k

Paul Westcott

THOUSANDS of tonnes of mineral sands will be taken off south-west roads
after a Victorian freight company agreed to operate the Portland-Maroona
rail line.

El Zorro, the same firm that moves freight on the Melbourne-Warrnambool
line, has finalised a deal with Iluka Resources to haul 3000 tonnes of
mineral sands out of Portland each week.

http://tinyurl.com/5jyf2k

Paul Westcott