WestNet Rail
WestNet Rail is a rail infrastructure owner and rail access provider operating in Western Australia (WA) with a long-term arrangement to lease track from the WA Government. WestNet Rail operates approximately 5,100 kilometres standard, narrow and dual gauge network in the south-west of WA which serves as a crucial transport link in the region. WestNet Rail is a regulated monopoly with largely stable revenue streams through long-term access agreements with its blue-chip customer base. Revenue is derived from access charges paid by rail operators or directly from underlying customers.
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Description
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A rail infrastructure owner and access provider
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Operating Platform
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Fee For Service
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Location
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Western Australia, Australia
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Investment
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100%
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Regulatory Environment
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WestNet Rail is regulated by the WA Economic Regulation Authority. Regulation is based on revenue floors and ceilings for line segments. The next floor and ceiling review is due in June 2012. WACC is reset annually using an approved methodology which is reviewed every five years
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Customer Base
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Access agreements with strong blue chip customers (including long term access agreement with Queensland Rail)
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Asset Age & Condition
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Varies across line segments.
Maintenance and renewal obligations are mandated by the lease with the WA Government
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Utilisation
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Varies across line segments. Ample spare capacity on lighter gauge lines, and ability to increase capacity to meet demand.
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Key Drivers
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WA economy, global economic activity and commodity demand. Mine expansion activities of current users, and addition of new users.
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For further information click on link to WestNet Rail website: http://www.wnr.com.au/