BHP Billiton has left open the option of setting up its own rail business to haul its coal, potentially putting it into direct competition with QR National.
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The possibility that QR National's biggest customer – which accounts for some 25 per cent of the railroad group's coal haulage volumes – might withdraw its business from the Queensland company may weigh on investors' minds during the institutional book-build that starts tomorrow ahead of its $6 billion float.
"QR as well as its competitors have been good suppliers to us in the Bowen Basin and elsewhere," BHP chief executive Marius Kloppers said yesterday. "In the past we have not looked at our own haulage business but it is not an option I would like to rule out forever."
QR National's bankers will accept bids from institutions tomorrow and on Friday between $2.50 and $3 a share before listing on the Australian Securities Exchange on Monday, The Australian Financial Review reports.
Mr Kloppers' comments come as Xstrata Coal prepares to establish its rail haulage services, X-Rail (in an alliance with Freightliner), in NSW next year. The comments are the strongest signal to date that BHP Billiton may follow X-Rail's lead.
