GWR
#Sure.
I mean, with respect to this steam coal, I mean, the coal that we handle is the cleanest, lowest ash, highest BTU stuff that gets ---+ it's the last ---+ literally the last coal burning on earth.
So a good chunk of what we sell actually doesn't even go to China, it's consumed in Japan and South Korea and Taiwan.
It's very high-grade stuff from first and second quartile-type mines, and so ---+ and even to the extent that there are restrictions on coal consumption within China, the quality of coal that we're handling there is going to get ---+ it's going to be blended into the mix.
It's not a relevant competitor for things like lower-grade Indonesian coal and the like.
So this is ---+ so the answer ---+ the immediate answer is the coal business is very strong and stable.
What's the other part of the question.
Queensland.
Yes, I mean, with respect to other geographies, there's always opportunity in different parts of Australia for new contracts that we are regularly bidding on and if customers want us in a given geography, we go.
And so we've got open dialogues in several markets.
Well, you have 2 questions there.
Let me turn the first part of your question around rate renewals to <UNK> and then I'll hit your second part of the question.
Yes, and <UNK>, with respect to the mix issue, I would just turn it over to <UNK> so I can look at my underlying analysis.
And the mix headwinds we saw in Q1 are really the ones that we expect for the full year.
It's largely ag and coal.
Yes, that one, in a competitive market, I can't answer.
That gives a ---+ that's a step too far given that we compete for that business.
Well, you've got 9 coal sets in operation today.
You've heard us say we're adding 2 more, one that's coming in June, the other that's coming in at the end of the year.
In both instances, we're using excess ---+ those are only wagons because we're using excess high horsepower locomotives from South Australia that used to serve one of the mines that's no longer shipping.
And so this is the last of our excess locomotive capacity in Australia that we're deploying there.
And so you've got 2 incremental ---+ you have 2 incremental train sets for spot moves.
Recall that there are forward ---+ there's forward opportunity with our core contract with Glencore where those, if they weren't in spot service, they would be cascaded into permanently contracted status within 2 years, by the way.
And so this is ---+ these will be making money between here and there.
I'm sorry, I didn't quite understand.
Say it again.
Yes, I do think that number would be misleading because it's embedded in specific contract terms that were of a multibillion-dollar deal.
Yes, you wouldn't ---+ that wouldn't put you on the right path.
You can certainly assume that you're going to earn your cost of capital on that under some very comfortable assumptions or you wouldn't be doing it.
And you can certainly assume that one prices spot moves at a premium to contracted moves because there's implicitly more risk to it.
But I think I would leave it at that.
The answer is both.
The answer is that we wouldn't be doing it if we didn't think it was a good use of our capital on ---+ I mean it's ---+ if you do the math, it's, obviously, highly book accretive.
But that's not the primary driver.
We look at free cash flow generation of the business and what we think it's worth, and we think this is a wise way to deploy capital.
I wouldn't say necessarily ---+ there are certainly acquisitions that ---+ certain types of acquisitions that we could fold in, perhaps at an even more economically attractive basis than buying our own shares.
And so you've got to keep the dry powder available to do those and we're certainly looking at those as well.
But given how much debt we've paid down, we're very comfortable that we can look at doing both over time, and that's what we ramped up here through April.
Operator, we're out of time so please review the replay instructions.
And thank you, very much for joining us on this call.
