Brief Cases

PORTS and rail operator Asciano Group says it is yet to be affected by the global financial crisis, but an economic slowdown could benefit its rail business.

Chief financial officer Peter McGregor said that coal haulage last quarter continued to experience "double-digit growth" and volumes at container ports remained strong.

"One area of weakness we have seen, while imports of motor vehicles have grown, deliveries of motor vehicles to the final dealers have declined," he said.

Mr McGregor said an economic slowdown could result in a boost to Asciano's freight rail business, as its lower costs would prove attractive to transporters.

"When the economy slows, cost becomes really important," he said.

Asciano shares closed down 21, or 7.72%, at $2.51.

Woolies rethinks appeal

WOOLWORTHS is withdrawing its legal action to appeal against a New Zealand Supreme Court decision that prevents the supermarket giant from launching a takeover of Kiwi discount retailer The Warehouse Group.

The New Zealand Commerce Commission stopped Woolworths and Kiwi grocery chain Foodstuffs from mounting separate takeover bids for Warehouse earlier this year, saying their control of Warehouse's Extra food retailing outfit would have lessened competition.

Woolworths, which already has a 10% stake in Warehouse, said it had yet to decide to mount a takeover bid.

Woolworths shares closed down 39 cents to $26.

Windimurra on track

WINDIMURRA Vanadium, a producer of the material used to strengthen steel, says its Mount Magnet project remains on schedule for first production next year, boosted by a weaker dollar and high prices.

"The economics of the Windimurra project continue to be boosted by historically high vanadium price levels of around $US60 a kilogram and the reduction in the Australian dollar exchange rate to below US70," the Perth-based company said in a statement to the stock exchange.

Metal prices have slumped 38% this half on concern the global economy may tip into recession. Vanadium prices have bucked the trend because of demand from emerging nations, Windimurra said.

$244m more for village

THE British Government will cough up #95 million ($A244 million) more towards construction of the 2012 London Olympic village as Australian developer Lend Lease haggles over how it will be paid.

British ministers have agreed to release #95 million of the #2.2 billion the Government set aside as a "contingency fund" for the Olympic Games to allow construction of the village in Stratford by Lend Lease to continue.

Lend Lease admitted yesterday the credit crunch was making it difficult to reach a final agreement about how much money for the project should come from the British Government, and how much Lend Lease should raise from banks. Lend Lease would own a share of the village when the games are complete. NATALIE CRAIG