AusRAIL, Market Sectors

Toll seeks Victorian rail subsidies for Pacific National

<p>The price of keeping Victoria’s privatised country rail freight services going will be up to $19m a year, if Toll Holdings can get state financial support for them.</p> <p>Toll is to start negotiations with Victorian transport minister Peter Batchelor to hammer out a deal after the Essential Services Commission ruled on terms and conditions for subsidiary Pacific National’s access to the rail network, the <em> Australian Financial Review </em> reported today (Friday, June 30).</p> <p>Toll had sought $31m in grants to keep the system competitive with road transport, but the monopolies regulator pared that back to between $9 and $19m. </p> <p>That did not include maintenance cost on four lines Toll said it would give up.</p> <p>The regulator said &#8220fit for purpose&#8221 upkeep costs for the network and Melbourne’s South Dynon rail yard was a $37m a year.</p> <br />