For Sale - Core Assets (2/5)

Written on the 17 June 2009

THE Bligh Government will undertake a wide-ranging sale of government-owned assets as Queensland continues to bear the brunt of the global economic crisis.

Queensland Motorways Limited; The Port of Brisbane; Forest Plantations Queensland; Queensland Rail’s above and below rail coal business; and the Abbott Point Coal Terminal are all to be sold.
Premier Bligh says the assets will be sold over the next three to five years as the government works through the economic meltdown.

“The need to respond to the biggest economic challenge in decades is very real, very confronting and requires some very tough decisions to be made,” says Bligh.
“Make no mistake — these were the tough choices that had to be made. With a $14 billion hole in our revenues over the next four years, my government was faced with the decision to cut jobs, to half our $17 billion building program or to sell assets. I will make jobs a priority. I will not slash the building program.”

The Premier says the sale of Queensland Rail’s coal assets will maximise the amount of product the state can export. Coal infrastructure assets, which will include train lines and associated infrastructure as well as Queensland Rail trains, would be structured to maximise the efficiency of Queensland’s rail-to-port network.

“Our revitalised and reorganised coal freight system will have the capacity to move more coal to the world providing a greater return in royalties to the people of Queensland,” she says.
“For example a ‘package deal’ could offer the Goonyella through Newlands to Abbot Point rail system with the sale of Abbot Point Coal Terminal. This structure will ensure the objectives of the port and the rail infrastructure providers are better aligned.

“Under this ‘package deal’ the private sector would build the northern missing link infrastructure needed to take this system to the next level saving the tax payer $3.5 billion in future capital expenditure.”
The Abbot Point Coal Terminal sale alone is expected to earn more than $1.9 billion and combined with the associated rail infrastructure it will constitute an attractive package to investors.

The total asset sell-off is expected to deliver estimated proceeds of $15 billion and avoid a further $12 billion in required capital investment over the next five years.


Latest News

BELLAMY'S FINDS EXPORTING BABY FORMULA INTO CHINA IS NO CHILD'S PLAY

BELLAMY'S (ASX: BAL) shares have suffered a 40 per cent drop in value today after the company hit a regulatory...

BRISBANE WATCH BRAND ADINA AIMS FOR ICONIC

ADINA watches is at a turning point in its history, 45 years after being founded by Robert 'Bob' Menzies i...

WHY YOU SHOULD CARE FOR YOUR BODY AS MUCH AS YOUR BUSINESS

ENTREPRENEURSHIP is a busy business. It can be all-consuming, but it is important not to neglect your health Y...

BULLETS BACK IN THE BUSINESS COMMUNITY

ALTHOUGH new to the current south-east Queensland sporting landscape, the Brisbane Bullets have a rich basketball ...

Related News

JB HI-FI IS THE GOOD GUY IN $870 MILLION ACQUISITION

ELECTRONICS giant JB Hi-Fi has formally completed its $870 million acquisition of home appliance chain The Good Gu...

ACCC ACTS AGAINST MERITON'S RIGGED REVIEWS

MERITON Property Services is under fire from Australia's main consumer watchdog, after it allegedly engaged in mi...

ACCC FIRES WARNING SHOT TO IVF PROVIDERS

IVF clinics have been put on notice by consumer watchdog, the Australian Competition and Consumer Commission (ACCC...

BIG W CEO QUITS AFTER 11 MONTHS

SALLY MacDonald has resigned as chief executive of BIG W ending her tenure at the helm of the struggling discount ...

Contact us

Email News Update Sign Up Contact Details

Subscribe to our mailing list

* indicates required
Email Format

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter