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ASR pulls out of SA southeast rail project

<p>Australian Southern Railroad has withdrawn from negotiations with the South Australian government to re-open the South East rail line for freight transport between Mount Gambier and Wolseley.</p> <p>State transport minister Michael Wright said the decision is "disappointing".</p> <p>But ASR said surveys of potential users showed there is not enough support to proceed with the project.</p> <p>GrainCorp last week opened its first SA receival centre along the rail line, but said ASR’s decision would not effect operations.</p> <p>The government will explore other options for re-opening the line and still wants to contribute $10m to the project, Mr Wright said.</p> <p>"The southeast is the only region in SA that does not have an operational rail freight service, yet is one of the most productive regions," he said.</p> <p>The South East rail project began with expressions of interest in May 2000. </p> <p>Six parties responded to the request, three were short-listed before ASR was named the preferred respondent.</p> <br />