Article: SA to NT rail line sold

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From the Sydney Morning Herald click here!

SA to NT rail line sold

SA to NT rail line sold
December 1, 2010

AAP

Rail line operator Genesee & Wyoming has paid $334 million for the 2200 kilometre Tarcoola to Darwin railway.

The company has bought the assets of FreightLink with both the South Australian and Northern Territory governments welcoming the deal.

Genesee & Wyoming already provides rolling stock and train crews to FreightLink for the NT line.

Northern Territory Chief Minister Paul Henderson said the sale established Australia's third-largest general freight railway.

"With the ownership in the hands of an experienced operator with a secure financial footing, the railway will continue to provide a catalyst for mining, intermodal freight and tourism investment in the Northern Territory, building on the successes of the last six years," Mr Henderson said.

"The railway, along with the expansion of the Port of Darwin, has well and truly established the Northern Territory as the gateway to Asia and a major transport hub."

South Australian acting premier Paul Holloway said the sale put the railway into a better financial position to continue to serve the state's growing mining industry.

"Freight operations have grown steadily since the railway opened in 2004 with FreightLink capturing about 90 per cent of the traffic in the Adelaide to Darwin corridor," Mr Holloway said.

"While the business has been making operating profits, the large debt incurred to finance the construction of this important rail link has resulted in an overall business loss each year."