brokers' notes, page-7

Hi Petepan

On the matter of mining volumes, what counts for KSC is Pilbara iron ore, and I would be inclined to say that volumes and should help KSC, but I could not find anything on the Internet to support that view when I was poking about today. I recall reading months ago that as mines shift into production, they need larger equipment, and this calls for transporting it to where needed. Regal Transport has the facility to handle oversized loads, but they are not alone, plus the super-large equipment may come up from the coast (Port Headland) via rail.

TGA carries food and other items like steel to the mines, but this may not be a growing business. On food, more production and less exploration may tend to lessen employee numbers, but it now appears that the decline will not be as great as was thought in late calendar year 2012 and early 2013.

I do not know what Regal Transport can expect in months to come, and what edge it has over competitors, if any. It may have an edge in trucking and storing hazardous material like explosives. This what I have read minutes ago at http://www.miningoilgas.com.au/amr/files/AMRAugust2012.pdf:

"The transport and storage of dangerous goods is an area of expertise that Regal Transport excels in. The company has depots in Newman, Karratha, Port Hedland, Broome and Derby; all licensed to hold dangerous goods in transit, and the Perth, Broome and Derby depots hold Dangerous Goods Site storage licences."

I have often travelled between Perth and Geraldton, and a feature of the road trip is the vast number of large trucks one sees heading north.