Runaway Ore Train Exposes Australia's Reliance on Desert Railway
- BHP is investigating accident that halted iron ore rail ops.
- Pilbara system is 3.5 times the length of New York subway
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A network of private railroads more than three times the length of the New York subway system is the key lifeline for Australia’s A$61.3 billion ($44.5 billion) iron ore export industry. So when there’s a derailment in the biggest shipper -- global markets, as well as the ground, shudder.
A runaway train that derailed this week after traveling 92 kilometers (57 miles) without a driver, forced BHP Billiton Ltd., the third-largest iron ore exporter, to halt railway operations. The company said Wednesday that it expects to restore partial operations in about a week and it is in talks with customers over contractual commitments as stockpiles at Port Hedland aren’t expected to cover the period of disruption.