PN attracts hostile response for Tassie rail strategy

<p>Key government and industry figures have slated Pacific National’s decision to abandon intermodal rail services in Tasmania less than two years after buying the rail operation.</p> <p>Tasmania infrastructure minister Bryan Green spoke with Federal transport minister Warren Truss yesterday (Wednesday, September 28) over possible options to keep the rail services going.</p> <p>"The federal minister shares my disappointment at the position Pacific National has put the governments in," Mr Green said.</p> <p>"The company’s action in putting an ultimatum in such terms to governments so soon after doing its own due diligence before buying the rail network appears unreasonable on the face of it."</p> <p>Pacific National has suggested its needs $100m over the next 10 years to upgrade track, locos and rollingstock to keep services viable.</p> <p>FCL founder Bill Gibbins told <em>Lloyd’s List DCN</em> that Pacific National’s request for government funding was ridiculous.</p> <p>"A $100m over 10 years? What a joke," Mr Gibbins said.</p> <p>"They [Pacific National&#93 are a private company, they bought the frigging thing, they own it, let them spend their own money on it.</p> <p>"How about the government giving me some subsidy to run my business?"</p> <p>Pacific National was struggling with intermodal services in Tasmania because it had priced itselfout of the market, he said.</p> <p>It did not wash for Pacific National to cry poor in Tasmania given the amount of profit the operation as a whole made in Australia, he said.</p> <p>"I mean look at who the owners are," Mr Gibbins said.</p> <p>"They are owned by Toll and Patrick, for God’s sake.</p> <p>"They are ripping the shit out of us on the mainland they can spend some of that down in Tasmania."</p> <p>Tasmanian Chamber of Commerce and Industry (TCCI) chief executive Damon Thomas said Pacific National’s decision was "little short of a disaster for the Tasmania economy as well as for the people of the state".</p> <p>It is estimated the closure of the container rail services will cause an extra 2,000 truck movements a week.</p> <p>TCCI fears that bulk rail movements could go the same way &#8211 a move that would result in thousands more truck movements for projects such as Gunns’ proposed pulp mill.</p> <br />