PACIFIC National has quit Tasmania,

Jobs doubt as Pacific National quits State By JULIAN BURGESS and RACHEL WILLIAMS

From The Examiner Launceston

PACIFIC National has quit Tasmania, putting up to 150 jobs at risk and threatening a major increase in freight volumes on the State's roads.
On the day the State Budget heralded a major investment in rail as a way to grow the economy, Pacific National's parent company Asciano made the announcement.
But the State Government will continue to invest in the sector in the hope of attracting a new operator.
More than $27 million in funding for rail development, management and maintenance over the next year was outlined in Treasurer Michael Aird's State Budget.
It included $18.3 million for infrastructure development, $4.2 million for infrastructure maintenance and $5 million for rail management. Over the next eight years, the total rail spend would be $78 million for development and $40 million for maintenance.
Asciano did not mention its obligations under a memorandum of understanding it signed after the State and Federal Governments pulled together a $118 million, 10-year rail rescue package when Pacific National threatened to withdraw from the State in 2005.
When asked if the Government would consider operating rail freight services, Mr Aird said it had not been actively considered.
"It's not a Government endeavour that's proved successful in the past", Mr Aird said.
Offering another private railway operator a subsidy to run a freight service would be something that would be considered by Cabinet.
He said the infrastructure spending on rail would halve the time it would take for trains to travel between Hobart and Burnie and the improved efficiency should be attractive to different rail operators.
Tasmanian Freight Logistics Council chief executive Rob McGuire said it was essential that the State found a new rail operator as soon as possible because the announcement did not come as a surprise.
"They'd earmarked it some time ago that it was a possibility and it was going to happen. It's certainly not good news," he said.
Mr McGuire, whose organisation represents about 60 Tasmanian companies, said it now appeared the State could face a period without rail freight services.
Tasmania's major rail freight customers includes Cement Australia, paper mill Norske Skog, miner Zinifex and log haulage with most general freight being transported by road, he said.
The Government and timber company Gunns have repeatedly said they want freight for the $2 billion pulp mill at Bell Bay to be transported on rail.
Gunns executive chairman John Gay was unavailable for comment last night.
RACT chief executive Greg Goodman said it was a huge issue with freight tipped to double over the next decade.
It would be unpalatable to have a major increase in trucks on the State's roads, particularly the Midland Highway, he said.
Opposition infrastructure spokesman Peter Gutwein said the announcement was a massive blow and meant the State's infrastructure policy was in serious doubt.