Vic govt to buy regional track from PN for $134m

Ahead of a November 25 state election, the Victorian Government has agreed to buy back the lease of the regional rail network. Lease holder Pacific National has welcomed the deal, saying it provides a satisfactory commercial outcome and includes an assurance its employees will retain their jobs on equivalent terms. Premier Steve Bracks negotiated last night (Tuesday, October 31) an in-principle agreement to take control of the network from Pacific National for $133.8m. Pacific National said this approximated book value. Under the new arrangements, the government would own the track while Pacific National would continue to run its above-rail assets in Victoria. A subsidiary of VicTrack would manage the track. VicTrack would assume responsibility for operation and maintenance of the track, signalling and the provision of access arrangements. Mr Bracks said the 45-year lease arrangements put in place in 1999 were flawed, and have resulted in significant deterioration of the network. &#8220The new arrangements will allow for better maintenance of the tracks by the Government and facilitate better access to the network for major rail projects,&#8221 he said. &#8220Upgrading the tracks will also help us to deliver better train services, giving farming communities better options for freight movement.&#8221 Meanwhile shadow transport minister Terry Mulder said a Liberal Government would also negotiate with Pacific National for the surrender of its lease of the Victorian broad gauge and some standard gauge rail tracks. "To ensure rail freight in Victoria has a promising future, a Liberal Government will discuss with Pacific National how best to repurchase its lease of the rural rail tracks," Mr Mulder said. "A Liberal government wants to ensure Pacific National and its competitors have access to the Victorian rural rail network, under an access regime controlled by the Victorian Government.&#8221

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