Tuesday, December 8, 2009

Queensland To Float QR Coal

THE Queensland Government will float its $7 billion coal and freight rail business next year, after overhauling its $16 billion privatisation strategy.

Queensland Rail is considered the pick of a suite of state assets the Government plans to sell. It has decided to offload QR's coal and freight network via an initial public offering and lease out the Abbot Point coal terminal, Port of Brisbane and Queensland Motorways.

The Queensland Government will retain ownership of QR's passenger business. The coal and freight arm is to be renamed QR National and floated in the last quarter of 2010. The Queensland Government will retain a stake of 25 to 40 per cent, but will sell down its interest over time.

Queenslanders will be given priority to buy shares. Individual investors or companies will be limited to owning 15 per cent of QR National.

Source: Melbourne Age

Queensland Premier Anna Bligh has faced a backlash against her privatisation plans, with 80 per cent of Queenslanders opposed to the mass sale of assets.

The Queensland Government has already put Forestry Plantations Queensland up for sale. A 99-year lease to the Port of Brisbane will be sold in mid-2010, followed by a 99-year lease in Abbot Point at the end of the year. A 50-year franchise of Queensland Motorways will be sold by mid-2011.

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