Fullerton says FreightLink sale was board decision

FreightLink's board and shareholders made the decision to put the rail operator up for sale, chief executive John Fullerton and banking sources said yesterday.

They said the board, backed by shareholders who had never intended to invest long-term, had made the move, which had then been approved by the banks and financial institutions.

"We intended this in 2006 but it was probably a bit early in our cycle," Mr Fullerton said.

While he was sure both overseas and domestic firms would take a good look at FreightLink, "particularly where you can leverage the mining boom", banking sources believed that domestic interest would be very strong.

On the sale's timing, a banking source pointed out that FreightLink was now a more attractive proposition: "It's not greenfield any more."

Mr Fullerton noted Territory Resources's expectation of increasing iron ore exports through the port of Darwin as just one reason for optimism for FreightLink's future ( See today's news wire , Territory to drive Darwin port iron ore export surge).