Public float of QR National
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File:QR National "Be part of something big".jpg
In 2010, the Queensland Government split the government owned rail operator Queensland Rail into two companies: the government owned passenger operator Queensland Rail and the freight operator QR National (now Aurizon), the latter to be floated in late 2010.
Public float
On 2 June 2009, the Queensland Government announced the 'Renewing Queensland Plan', with Queensland Rail's commercial activities to be separated from the Government's core passenger service responsibilities, and formed into a new company called QR National Limited.{{cite news |url=http://www.brisbanetimes.com.au/queensland/queensland-asset-sales-to-reap-15-billion-20090602-bthd.html |title=Queensland asset sales to reap $15 billion |work=Brisbane Times |first=Marissa |last=Calligeros |date=2 June 2009}}{{cite web |url=http://www.qld.gov.au/assetssale/ |title=Queensland assets sale |publisher=Queensland Government |accessdate=20 July 2010 |url-status=dead |archiveurl=https://web.archive.org/web/20100414092427/http://www.qld.gov.au/assetssale/ |archivedate=14 April 2010}} The new structure was announced by the State Government on 2 December 2009,{{cite web |url=http://www.queenslandrail.com.au/AboutUs/MediaCentre/MediaReleases/Pages/QRChairandCEOWelcomeSale.aspx |work=Media Release |date=8 December 2009 |title=QR chair and CEO welcome sale decision |publisher=Queensland Rail }}{{dead link|date=April 2018 |bot=InternetArchiveBot |fix-attempted=yes }} and took place from 1 July 2010.{{cite news |url=http://www.theaustralian.com.au/business/hockridge-carrying-the-burden-of-queensland-rail/story-e6frg8zx-1225853814671 |title=Hockridge carrying the burden of Queensland Rail |first=Glenda |last=Korporaal |date=15 April 2010 |publisher=The Australian}}
QR's coal, freight and infrastructure businesses was sold as an integrated enterprise, known as QR National Limited with headquarters in Brisbane. The new enterprise controls QR's coal business in Queensland and New South Wales, regional freight business in Queensland, bulk mineral and grain haulage in Western Australia and Queensland, and containerised freight between Cairns, Brisbane, Sydney, Melbourne, Adelaide and Perth. It also included a long-term 99-year lease over the railway lines that form the Queensland coal haulage network: the Newlands line to the port of Abbot Point, the Moura line to the Port of Gladstone, the Goonyella system based around the port of Hay Point, and the Blackwater system based around the Port of Gladstone, as well as network control responsibilities. The QR rollingstock workshops at Redbank, Rockhampton and Townsville were also included.{{cite web |url=http://www.qld.gov.au/assetssale/docs/queensland-rail-scoping-study-outcomes.pdf |title=Queensland Rail: scoping study outcomes |author=Queensland Treasury |year=2010 |publisher=Queensland Government |accessdate=20 July 2010 |url-status=dead |archiveurl=https://web.archive.org/web/20100827074637/http://www.qld.gov.au/assetssale/docs/queensland-rail-scoping-study-outcomes.pdf |archivedate=27 August 2010}} The business model in the Queensland coalfields was to be similar to Class I railroads in North America, which are vertically integrated with ownership of the trains used to carry freight and the infrastructure they run upon.{{cite web |url=http://www.theaustralian.com.au/business/queensland-rail-on-track-for-3bn-float/story-e6frg8zx-1225837970390 |first=Susannah |last=Moran |title=Queensland Rail on track for $3bn float |date=8 March 2010 |publisher=The Australian}}
The initial public offering of the freight and coal businesses occurred on 22 November 2010,{{cite news |url=http://www.abc.net.au/pm/content/2010/s3073372.htm |title=QR National float surprises market |first=Sue |last=Lannin |date=22 November 2010}} with the sale raising $4.6 billion. QR employees who were part of the new entity had their jobs guaranteed for two years, and receive $1,000 worth of shares and the option to purchase an additional $4,000 of shares at a discounted price.{{cite news |url=http://www.news.com.au/business/queensland-rail-in-7bn-mega-float/story-e6frfm1i-1225808465519 |title=Queensland Rail in $7bn mega-float |first=Louise |last=Brannell |date=9 December 2009 |publisher=News.com.au}} The Queensland Government initially retained a 34% shareholding in the publicly floated company,[https://www.asx.com.au/asxpdf/20101122/pdf/31v0zj9bpg270x.pdf Indicative Top 20 Shareholder List] QR National 22 November 2010 with Queensland residents given preference in purchasing the remaining shares.
Miners' bid
On 9 March 2010, a consortium of 13 mining companies with coal operations in Queensland, known as the Queensland Coal Industry Rail Group and headed by former NSW premier Nick Greiner, announced their intention to buy QR's coal rail network.{{cite web |url=http://www.brisbanetimes.com.au/business/privates-companies-to-bid-for-states-coal-rail-20100308-psnx.html |title=Privates companies to bid for state's coal rail |first=Tony |last=Moore |date=9 March 2010 |work=Brisbane Times}} The consortium made a formal $4.85 billion offer on 26 May for the tracks used exclusively or predominantly to haul export coal to port, and excluding QR's trains and freight businesses.{{cite web |url=http://news.smh.com.au/breaking-news-national/mining-firms-offer-485b-for-qr-assets-20100526-wbuj.html |title=Mining firms offer $4.85b for QR assets|date=26 May 2010 |work=Sydney Morning Herald}} If the bid is accepted the rail assets would be managed by the Australian Rail Track Corporation, a federal government owned body who manages the Australian interstate freight network.{{cite web |url=http://www.couriermail.com.au/business/coal-miners-offer-485-billion-for-queenslands-coal-track-network/story-e6freqmx-1225871452710 |title=Coal miners offer $4.85 billion for Queensland's coal track network |publisher=The Courier-Mail |author=James McCullough |author2=John McCarthy |date=26 May 2010}} Premier Anna Bligh and Treasurer Andrew Fraser said it would consider the offer but believed a public float was the best option. The companies providing the equity included Anglo American, BHP Billiton, Ensham Resources, Felix Resources, Jellinbah Group, Macarthur Coal, Peabody Energy, Rio Tinto Coal Australia, Vale Australia, Wesfarmers and Xstrata; with Aquila Resources and New Hope Coal are supporting parties and may provide equity at a later stage. QR chief executive Lance Hockridge rejected the bid in June 2010, saying it is not in the best interests of the future expansion of the state's coal network.{{cite web |url=http://nqr.farmonline.com.au/news/state/agribusiness-and-general/general/qr-boss-slams-miners-bid/1847310.aspx |website=Australian Financial Review|title=QR boss slams miners' bid |date=2 June 2010 |publisher=North Queensland Register |access-date=1 July 2010 |archive-url=https://web.archive.org/web/20100605063840/http://nqr.farmonline.com.au/news/state/agribusiness-and-general/general/qr-boss-slams-miners-bid/1847310.aspx |archive-date=5 June 2010 |url-status=dead}} The consortium increased their bid for QR National to $5.2 billion on 10 August 2010 and the Queensland Government confirmed they are in negotiations with the consortium over this bid.{{cite news |title = Government negotiating with coal companies over QR sale |first = Melinda |last = Howells |url = http://www.abc.net.au/news/stories/2010/08/10/2978823.htm |archive-url = https://web.archive.org/web/20100812033220/http://www.abc.net.au/news/stories/2010/08/10/2978823.htm |url-status = dead |archive-date = 12 August 2010 |agency = ABC News |publisher = Australian Broadcasting Corporation |date = 10 August 2010}} During the negotiations the consortium received access to the QR National's financials.{{cite news |title = QR National opens books to miners|url = http://news.smh.com.au/breaking-news-national/qr-national-opens-books-to-miners-20100819-12j05.html |newspaper = Sydney Morning Herald |publisher = Fairfax Media |location = Sydney|date = 19 August 2010 |quote = A consortium of Queensland mining companies seeking to buy the state's coal rail tracks has been given access to QR National's books.}} The negotiations ended when the consortium did not meet the deadline of 10 September 2010 for making a binding offer for QR National.{{cite news |title = Miners withdraw bid for QR coal network |first = Melinda |last = Howells |url = http://www.abc.net.au/news/stories/2010/09/09/3007554.htm |archive-url = https://web.archive.org/web/20100911192056/http://www.abc.net.au/news/stories/2010/09/09/3007554.htm |url-status = dead |archive-date = 11 September 2010 |agency = ABC News |publisher = Australian Broadcasting Corporation |date = 10 September 2010}}
Union action
=Court case=
On 11 June 2010, the Federal Court of Australia found that QR breached workplace agreements during the privatisation process, with workers not given the opportunity to discuss if they would be moved into the new private business, how the privatisation would occur, or if they wanted privatisation at all.{{cite news |url=http://www.couriermail.com.au/news/federal-court-finds-queensland-rail-broke-workplace-rules/story-e6freon6-1225878549401 |title=Federal Court finds Queensland Rail broke workplace rules |date=11 June 2010 |publisher=The Courier-Mail}} On 22 June, the court fined QR a total of $660,000: QR Limited was fined $396,000, and its subsidiaries QR Passenger and QR Network were fined $231,00 and $33,000 respectively.{{cite news |url=http://www.heraldsun.com.au/news/breaking-news/queensland-rail-fined-the-maximum-amount-over-workplace-breaches/story-e6frf7jx-1225882776382 |title=Queensland Rail fined the maximum amount over workplace breaches|date=22 June 2010 |publisher=Herald Sun}} The court action had been launched in February 2010 by the Australian Rail Tram & Bus Industry Union and four other unions with members working for QR.
References
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External links
- [https://web.archive.org/web/20100818010857/http://www.qld.gov.au/assetssale/businesses/qr-national/index.shtml Queensland Government: Public float of QR National]
- [https://web.archive.org/web/20100414092427/http://www.qld.gov.au/assetssale/ Queensland Government: Queensland assets sale]
- [https://web.archive.org/web/20050410130401/http://www.qrnational.com.au/ QR National] and [http://www.queenslandrail.com.au/ Queensland Rail] official websites
Category:Privatisation in Australia