EXHIBIT 99.1

                         [LETTERHEAD OF ERNST & YOUNG]



REPORT OF INDEPENDENT AUDITORS


To the members of Australian Railroad Group Pty Ltd

We have audited the consolidated financial statements of Australian Railroad
Group Pty Ltd for the financial year ended December 31, 2000. These financial
statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.

We conducted our audit in accordance with auditing standards generally accepted
in the United States of America and Australia. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audit provides a reasonable basis for our opinion.

In our opinion, based on our audit, the consolidated financial statements
referred to above presents fairly, in all material respects, the consolidated
financial position of Australian Railroad Group Pty Ltd and the consolidated
results of their operations and their cash flows for the year ended December 31,
2000, in conformity with accounting principles generally accepted in Australia.




/s/ Ernst & Young
Ernst & Young



/s/ G H Meyerowitz
G H Meyerowitz
Partner
Perth, Australia

Date: 12 February 2001