As UE wrote this morning, the mining services sector is coming increasing strain as the capex boom wanes. This morning bulk haulage firm, Asciano, joins them, announcing capex and job cuts owing to weak demand:
Asciano has cut its fiscal 2013 capital spending forecast to $575 million-$625 million from previous guidance of $700 million -$800 million, pushing spending into 2014.
The company has also cut its fiscal 2014 spending forecast to $700-800 million from a previous target of $800 million – $900 million.
The capital spending cuts come as Patrick ports’ quarterly container lifts dropped 4.1 per cent compared with the previous quarter, with both Port Botany and Fremantle recording falls.
Pacific National Rail’s intermodal bulk haulage business was also weaker, with Asciano reporting “soft volumes across most products.”
Asciano’s QLD bulk haulage remained healthy but Newcastle was weakening. The difference between still decent volumes for coking coal and weakness for thermal coal.
Interesting that container traffic is weak. Perhaps its just the mining boom’s end showing up in imports but “most products” sounds like consumer weakness as well.
