Southern & Silverton Rail

Southern & Silverton Rail was an Australian rail operator whose origins lay in the Silverton Tramway Company, incorporated in New South Wales in 1886 to build and operate a narrow-gauge railway between Broken Hill and the South Australian border. The enterprise was created during the rapid development of the Broken Hill mining district, where a dependable transport link was needed to move silver, lead and zinc concentrates from mines to connections with the wider rail network. The original Silverton Tramway was a 58-kilometre, 1,067-millimetre-gauge line. It opened on 12 January 1888, running from Broken Hill to Burns, near the New South Wales–South Australia border. Initially, South Australian Railways operated the main-line services under an agreement reached late in 1888, while Silverton handled mine connections and sidings around Broken Hill. That arrangement ended in 1893. The company also operated the isolated Tarrawingee Tramway for the New South Wales Government Railways from 1899 until that line closed in 1931. Silverton developed into a substantial transport undertaking. It was headquartered in Melbourne from 1894 and became publicly traded in London in 1897 before later transferring its listing to the Australian market. The business remained closely associated with the mining economy of the Broken Hill region for much of its early history. Its locomotive fleet progressed from hired and purchased steam locomotives to diesel traction, including an Andrew Barclay shunter acquired in 1958 and Alco DL531 locomotives bought in 1960 and 1961. The company’s traditional railway business was fundamentally changed in 1970, when a federally funded standard-gauge railway opened between Broken Hill and Port Pirie. The new route bypassed the narrow-gauge Silverton main line, making the original long-distance operation redundant. Rather than disappearing, the company shifted toward industrial rail services. With two diesel locomotives remaining immediately after the change, it concentrated on shunting, track maintenance and related services for mines and other customers in and around Broken Hill. A statutory buyout option held by the New South Wales Government was also altered through legislation; although Silverton calculated a claim of approximately $5.8 million, the eventual settlement was $2 million. Ownership and corporate identity changed repeatedly during the later twentieth century. Dillingham Corporation acquired a significant stake in 1969 and later increased it to 50 percent. The business was taken over by T & G Mutual Life Assurance Society in 1972 and delisted. It subsequently passed through National Mutual following that company’s acquisition of T & G Mutual, and in 1986 was sold through a management buyout led by Graham Clements. During the 1990s and 2000s, the operator rebuilt its role as a non-metropolitan and contract freight business. It acquired locomotives from FreightCorp and AN Tasrail, leased six locomotives to National Rail in the mid-1990s, and adopted the Silverton Rail name during the development of open-access rail operations in New South Wales. It undertook iron ore, grain and containerised freight work, trip workings, train crewing, track-recording support and maintenance or emergency recovery services. Operations extended beyond Broken Hill to Parkes, Newcastle, Sydney, Port Botany, Cobar, Narromine, Nyngan and other locations. In February 2006, Silverton Rail was sold to South Spur Rail Services and rebranded Southern & Silverton Rail. The rolling stock was initially sold to Allco Finance and leased back. South Spur was acquired by Coote Industrial in 2007, while Coote and its subsidiary Greentrains later acquired much of the former Silverton rolling stock. In 2010, South Spur was sold to P&O Trans Australia. Qube Logistics subsequently gained control of P&O Trans Australia and Southern & Silverton Rail in 2011, after which the Southern & Silverton identity was absorbed into Qube’s operations…

The company began as the Silverton Tramway Company, incorporated in New South Wales in 1886 after passage of the Silverton Tramway Act. The legislation granted its backers rights to construct a 58-kilometre, 1,067-millimetre-gauge railway from Broken Hill to Burns, beside the South Australian border. James Smith Reid, a newspaper proprietor and prominent businessman, led the founding consortium. The line opened on 12 January 1888, linking the Broken Hill mining district with the South Australian rail system. The railway was designed primarily around the transport needs of the silver, lead and zinc mines. South Australian Railways operated main-line services for a period after an agreement made in 1888, while the Silverton company worked mine sidings and local industrial connections. The arrangement ended in 1893. In 1899 the New South Wales Government Railways purchased the separate Tarrawingee Tramway and contracted Silverton to operate it because the isolated route used a different gauge. That operation continued until the line closed in 1931. Silverton was headquartered in Melbourne from 1894 and listed in London in 1897, later transferring to the Australian Stock Exchange. Its early locomotive policy combined hired South Australian Railways Y-class engines with company-owned Y, A and W class steam locomotives. The operator entered the diesel era with an Andrew Barclay shunter acquired in 1958 and three Alco DL531 locomotives purchased in 1960–61. The decisive change came in February 1970, when a new standard-gauge federal railway between Broken Hill and Port Pirie bypassed the Silverton route. The narrow-gauge main line was no longer commercially necessary, and the company’s business became focused on shunting, track maintenance and mine-related services around Broken Hill. The New South Wales Government had held a statutory option to buy the company, but legislative changes replaced the expected mechanism with a $2 million settlement, rather than the approximately $5.8 million amount Silverton believed it was entitled to receive. Corporate ownership also shifted. Dillingham Corporation of Honolulu acquired 33 percent in 1969 and later increased its holding to 50 percent. T & G Mutual Life Assurance Society took over in 1972, after which the company was delisted. Following National Mutual’s 1983 purchase of T & G Mutual, the business was sold in a management buyout to Graham Clements in 1986. From the 1990s, the company rebuilt its business around contract and open-access rail. It bought surplus locomotives from FreightCorp and AN Tasrail, leased six engines to National Rail for Adelaide–Melbourne operations in 1995–96, and adopted the Silverton Rail name during the emergence of open access in New South Wales. It began iron ore work from Cobar to Narromine in 1999, Sydney trip workings in the same year and grain services from Nyngan to Sydney in 2000. The company also supported containerised freight, export cotton trains, coal operations, train crewing, track-recording cars and maintenance or recovery trains. In February 2006, South Spur Rail Services acquired the business and rebranded it Southern & Silverton Rail. The fleet and rolling stock were sold to Allco Finance and leased back. Coote Industrial purchased South Spur in 2007, and Greentrains acquired much of the former fleet in 2008 after Allco encountered financial difficulties. South Spur was sold to P&O Trans Australia in 2010. Qube Logistics gained outright control and majority ownership of P&O Trans Australia and Southern & Silverton Rail in 2011. The Southern & Silverton identity was subsequently replaced by the Qube brand, ending its life as a separate operating brand.

1. 2011Absorbed into Qube

   Qube Logistics took control and the separate Southern & Silverton brand was subsequently absorbed into Qube’s operations.

   Source
2. 2006Rebranded Southern & Silverton Rail

   South Spur Rail Services acquired Silverton Rail and introduced the Southern & Silverton identity.

   Source
3. 2000Grain services begin

   Silverton began operating grain services between Nyngan and Sydney.

   Source
4. 1999Expansion into contract freight

   The operator began iron ore services between Cobar and Narromine as a National Rail subcontractor and started Sydney trip workings.

   Source
5. 1995Locomotives leased to National Rail

   Six locomotives were leased for Adelaide–Melbourne services, used as bankers near Tailem Bend.

   Source
6. 1970Original main-line role ends

   The opening of a standard-gauge Broken Hill–Port Pirie line bypassed the Silverton route and forced a transition to industrial rail services.

   Source
7. 1897London Stock Exchange listing

   The company became listed in London before later transferring its listing to the Australian market.

   Source
8. 1888Silverton Tramway opens

   The 58-kilometre line opened on 12 January, linking Broken Hill with Burns near the state border.

   Source
9. 1886Silverton Tramway Company incorporated

   The company was incorporated in New South Wales under the Silverton Tramway Act to build a narrow-gauge railway between Broken Hill and the South Australian border.

   Source

A specialist Australian freight and industrial rail operator that transitioned from a dedicated mining railway into a flexible provider of contract haulage, shunting, crewing and infrastructure-support services.

• Mining and industrial rail servicesIndustrial rail operations1888

  The company’s original and enduring specialization was serving mining and industrial customers around Broken Hill. Its narrow-gauge railway transported silver-lead-zinc concentrates and connected mine sidings with the wider rail network. After the original main line became redundant in 1970, the business retained a role in local shunting, industrial movements and track maintenance for mines and related facilities.

• Contract freight haulageRail freight1999

  Silverton Rail expanded beyond its historic mining corridor to operate or subcontract freight services in several Australian markets. These included iron ore movements from Cobar to Narromine, grain services from Nyngan to Sydney, containerised freight associated with Port Botany and support for export cotton trains. The work demonstrated the operator’s transition toward open-access and contract freight.

• Rail crewing and support servicesRailway logistics and maintenance1999

  The business supplied train crews and operational support for freight operators and infrastructure users. Activities included crewing coal and export services, supporting track-recording cars, and operating maintenance and emergency-recovery trains. A Newcastle-area depot supported work for customers and partners including National Rail, Interail, Pacific National and RailCorp.

• Locomotive operations and leasingRail equipment services1958

  Southern & Silverton and its predecessor businesses operated a varied fleet assembled from company purchases and second-hand locomotives. Equipment included Alco, 44, 45, 48, 80, 830, 85, 86, C and 930 class locomotives. Several engines were leased to other operators, while additional locomotives were acquired for parts or left unused.

• 2011Integration into Qube LogisticsM&A

  Qube Logistics acquired control and majority ownership of P&O Trans Australia and Southern & Silverton Rail after the business had passed through South Spur Rail Services.

  What changed. Qube integrated the operator and replaced the separate Southern & Silverton identity with its own brand.

  Aftermath. Southern & Silverton Rail ceased to operate as an independent brand.

  Source
• 2006Sale to South Spur Rail Services and rebrandingM&A

  Silverton Rail was sold as part of the continuing consolidation of Australia’s specialist rail-services sector.

  What changed. South Spur Rail Services acquired the business and rebranded it Southern & Silverton Rail. The locomotive and rolling-stock assets were transferred to Allco Finance and leased back.

  Aftermath. The brand operated within South Spur and later Coote Industrial before passing through P&O Trans Australia and Qube Logistics.

  Source
• 1999Expansion into open-access and subcontracted freightStrategy

  The emergence of open-access rail operations in New South Wales created opportunities beyond the company’s historic Broken Hill mining base.

  What changed. The business adopted the Silverton Rail identity and began iron ore, trip-working and later grain services across New South Wales.

  Aftermath. Operations broadened to include freight haulage, crewing, logistics and rail-support work in multiple Australian locations.

  Source
• 1970Shift from line-haul mining railway to industrial rail servicesStrategy

  The opening of a federally funded standard-gauge route between Broken Hill and Port Pirie bypassed the company’s narrow-gauge main line and removed its principal long-distance operating role.

  What changed. The company concentrated on mine shunting, track maintenance and other industrial services around Broken Hill, using its remaining diesel locomotives.

  Aftermath. This transition allowed the business to continue operating after its original railway became redundant and laid the foundation for its later contract-rail expansion.

  Source

• 2011Southern & Silverton’s ownership moves through P&O Trans Australia to Qube

  After South Spur was sold to P&O Trans Australia in 2010, Qube Logistics acquired control and majority ownership in 2011 and absorbed the Southern & Silverton identity into its operations.

  M&A
  Source
• 2007Coote Industrial acquires South Spur Rail Services

  South Spur Rail Services became part of Coote Industrial, while later rolling-stock purchases were made through Coote-controlled Greentrains.

  M&A
  Source
• 2006Silverton Rail is sold to South Spur Rail Services and rebranded

  South Spur Rail Services acquired Silverton Rail, which adopted the Southern & Silverton Rail identity. Locomotives and rolling stock were sold to Allco Finance and leased back.

  M&ALeadership change
  Source
• 1999Silverton Rail expands contract freight and rail-support operations

  The renamed operator began subcontracted iron ore services between Cobar and Narromine and trip workings in Sydney, followed by grain services to Sydney in 2000.

  Product launch
  Source
• 1970Standard-gauge railway makes the original Silverton main line redundant

  A new government-funded line between Broken Hill and Port Pirie bypassed the company’s narrow-gauge route and prompted a shift toward shunting and industrial rail services.

  Other
  Source
• 1888Silverton Tramway opens between Broken Hill and the South Australian border

  The 58-kilometre narrow-gauge line opened on 12 January, establishing the company’s original mining-railway operation.

  Other
  Source

1. Southern & Silverton Rail