News

Freight on rail and off road while uncertainty grows

  •  27 February 2009
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THE STATE Government will negotiate an exit strategy for private rail freight operator Pacific National.

Tasmania's railways have lurched into another phase of uncertainty, with the State Government one step closer to a forced purchase of the network.

The present owner, Pacific National has called for help to off load the business after months of negotiations to sell its Tasmanian assets came to nothing.

The State Government announced yesterday it had agreed to negotiate an exit strategy for parent company Asciano.

Rob McGuire from Tasmania's Freight Logistics Council said it added to the uncertainty around rail.

"The current financial times don't help the situation," Mr McGuire said.

Tasmania's Opposition questioned whether the government was capable of keeping the state's trains running.

Opposition spokesman Peter Gutwein said government inaction had led to the present situation.

"Rail freight needs to be a part of our transport strategy moving forward. It's something that I don't think that Tasmanians would stand for and that is a rail free Tasmania," Mr Gutwein said.

"We want to see trains running. We want to see freight on rail and off road," he said.

The Greens advised the State Government to split Tasmania's rail assets to help attract a buyer.

Spokesman Tim Morris said separating the train operations from the rolling stock would help attract a private buyer.

"The government should really be talking to Asciano seriously about renegotiating the deed to see whether it's much more sensible for the government to take on the maintenance on the rail, the same as it does with roads," Mr Morris said.

The government said negotiations are likely to take months, but Pacific National's agreed to keep the trains running in the meantime.

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