TasPorts confirms interest in controlling Tasmanian rail

TasPorts has emerged as the possible salvor of Pacific National’s Tasmanian rail operation in the wake of Asciano’s confirmation last week of its intention to sell the business. The ports operator described its potential involvement in rail as &#8220a natural consideration&#8221, especially given its extensive involvement with the Brighton intermodal hub, north of Hobart. There are also reports that one of Tasmania’s biggest trucking groups, Chas Kelly Transport, is also interested in the rail operation and the 2.8m tonnes of annual freight it handles. Other possible buyers include QR, Independent Rail of Australia (IRA), US-based Genesee &#38 Wyoming, Victoria’s El-Zorro and Macquarie Bank. But many suggest the need for government subsidies, a topic neither Pacific National nor the Government were willing to broach last week. Pacific National said last week that the new owner would need the support of the Tasmanian Government, but gave few clues as to what sort of support was needed and if it was satisfied with the Government’s provision of support to its own efforts in the state. Reports in Hobart suggested the Tasmanian Government knew a month ago of Pacific National’s confirmation of its departure, but official comments on this have been sketchy. It came as the State Government began spinning the news as a positive for the state. &#8220The future for rail operations in Tasmania is looking brighter than it has in more than a decade,&#8221 infrastructure minister Graeme Sturges said, calling for an end to &#8220alarmist speculation&#8221 about the future of the rail. The Greens accused the Government of not having a contingency plan for Pacific National’s sell-off. The Government had been warned six months ago that Asciano was considering selling its Tasmanian Pacific National assets,&#8221 Greens infrastructure spokesperson Tim Morris said. The Government had been distracted by the Gunns pulp mill proposal and had &#8220dropped the rail freight ball&#8221. &#8220It is clear the Labor Government has been asleep over the last six months, to the extent that the vital rail ball has been dropped, and the current infrastructure minister didn’t even know the current state of play," Mr Morrris said. &#8220The roads cannot safely take the extra trucks if the rail collapses, as they are already congested and it is well-known that the cost of repairing the damage done far outweighs the required investment to make the rail competitive and efficient." But Mr Sturges said the Government had always anticipated the prospect that Pacific National would leave. &#8220Both this Government and Pacific National will be working to ensure a smooth transition to a new owner,&#8221 he said. The state and federal governments were working on the below-rail infrastructure after 30 years of neglect by previous governments. &#8220The $122m rescue package is structured so that it is not a grant to Pacific National or Asciano, but ensures that the state will be infrastructure-ready for new rail entrants,&#8221 Mr Sturges said. A further $130m was to come from the Federal Government, he said.

No Results