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MICHAEL STEDMAN
June 14, 2008 12:00am
TASMANIAN companies have already begun sniffing around Pacific National's state operations but they are unlikely to be sold without significant cash subsidies from the State Government.
TasPorts yesterday flagged its interest in operating all or part of the rail network, following Thursday's shock announcement that PN's parent company, Asciano, was offloading its Tasmanian operations.
"We are the biggest infrastructure provider and operator in the state so it is a natural consideration that TasPorts be involved in some way," TasPorts business development manager Charles Scarafiotti said.
He said there were obvious synergies with the yet-to-be-built Brighton Transport Hub, which TasPorts would manage.
Another major Tasmanian player, Chas Kelly, also confirmed his interest in the network.
"Rail is a very difficult business to run and the only way we would be interested is if it is economically viable and that may mean Government subsidies," Mr Kelly said.
He believed the 2.8 million tonnes of rail freight carried each year could be safely carried by road.
The State Government is committed to paying $4 million a year to maintain the rail network under the 10-year Rail Management and Maintenance Deed.
That same agreement locked PN into investing $38 million in new locomotives and rolling stock.
It appears the Government will have to be prepared to adjust the deed, or even boost subsidies, in order to make the rail network attractive to prospective buyers.
"I don't think anyone would want to put a noose around their neck unnecessarily," Mr Kelly said.
The Mercury understands failed negotiations to alter the deed sealed Asciano's decision to pull out of the state as early as three months ago.
Asciano wanted the Government to take responsibility for all maintenance, including rolling stock, while also providing new subsidies to make certain routes profitable.
Asciano spokeswoman Marie Festa confirmed yesterday the Government was notified more than a month ago that the company was leaving the state.
Infrastructure Minister Graeme Sturges said he had no knowledge of negotiations between PN and the Government before he became minister three weeks ago.
And he would not be drawn on whether the Government would be prepared to pay subsidies to a new buyer.
Other companies believed to be interested in PN -- at the right price -- include Queensland Rail, Victorian based El Zorro, Independent Rail of Australia and US-based short-line experts Genesee & Wyoming. Macquarie Bank may also be prepared to invest in the network.
June 14, 2008 12:00am
TASMANIAN companies have already begun sniffing around Pacific National's state operations but they are unlikely to be sold without significant cash subsidies from the State Government.
TasPorts yesterday flagged its interest in operating all or part of the rail network, following Thursday's shock announcement that PN's parent company, Asciano, was offloading its Tasmanian operations.
"We are the biggest infrastructure provider and operator in the state so it is a natural consideration that TasPorts be involved in some way," TasPorts business development manager Charles Scarafiotti said.
He said there were obvious synergies with the yet-to-be-built Brighton Transport Hub, which TasPorts would manage.
Another major Tasmanian player, Chas Kelly, also confirmed his interest in the network.
"Rail is a very difficult business to run and the only way we would be interested is if it is economically viable and that may mean Government subsidies," Mr Kelly said.
He believed the 2.8 million tonnes of rail freight carried each year could be safely carried by road.
The State Government is committed to paying $4 million a year to maintain the rail network under the 10-year Rail Management and Maintenance Deed.
That same agreement locked PN into investing $38 million in new locomotives and rolling stock.
It appears the Government will have to be prepared to adjust the deed, or even boost subsidies, in order to make the rail network attractive to prospective buyers.
"I don't think anyone would want to put a noose around their neck unnecessarily," Mr Kelly said.
The Mercury understands failed negotiations to alter the deed sealed Asciano's decision to pull out of the state as early as three months ago.
Asciano wanted the Government to take responsibility for all maintenance, including rolling stock, while also providing new subsidies to make certain routes profitable.
Asciano spokeswoman Marie Festa confirmed yesterday the Government was notified more than a month ago that the company was leaving the state.
Infrastructure Minister Graeme Sturges said he had no knowledge of negotiations between PN and the Government before he became minister three weeks ago.
And he would not be drawn on whether the Government would be prepared to pay subsidies to a new buyer.
Other companies believed to be interested in PN -- at the right price -- include Queensland Rail, Victorian based El Zorro, Independent Rail of Australia and US-based short-line experts Genesee & Wyoming. Macquarie Bank may also be prepared to invest in the network.
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