Pacific National back on freight rails in Tasmania

<p>Tasmanians have welcomed Pacific National’s decision to invest another $38m into new rolling stock for its rail operation in the state after months of uncertainty about the viability of the infrastructure.</p> <p>Infrastructure minister Jim Cox said yesterday (Wednesday, May 27): "The benefit of a viable railway will be felt throughout the business sector and the community generally." </p> <p>Pacific National, a joint-venture of Toll Holdings and its new acquisition Patrick Corp, had been concerned that the network needed urgent repair.</p> <p>The rail operator had last year threatened to pull out of railing container freight until the federal and state governments agreed to help upgrade the system. </p> <p>Both governments agreed in November to invest $118m to improve the state’s rail infrastructure.</p> <p>The Pacific National board accepted the package on Tuesday.</p> <p>Mr Cox said the network would now revert to state ownership, meaning that the problem would not happen again.</p> <p>There was now potential for other operators to use parts of the network, he said.</p> <p>"That creates the real possibility of competition in rail services," Mr Cox said.</p> <p>He will meet Pacific National chief executive Don Telford and federal transport minister Warren Truss to discuss details.</p> <p>Tasmanian Chamber of Commerce and Industry chief executive Damon thomas told the <em>Launceston Examiner</em> that the rail network had to win back the confidence of its existing customers and attract new ones to remain viable.</p> <p>Meanwhile, Tasmanian Liberal leader Will Hodgman.called on Mr Cox to explore ways in which the rail network could work positively with the trucking industry "to provide greater efficiencies to Tasmanian business."</p> <br />