One Rail Australia to sell its 1420km rail line linking Alice Springs to Darwin
The 1420km haulage and passenger rail line linking Alice Springs with Darwin is being sold by owners One Rail Australia in a multi-billion dollar deal.
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THE rail line linking Alice Springs with Darwin is being sold.
Australia’s largest rail freight operator Aurizon has reached agreement to buy the haulage and passenger service for $2.35bn. One Rail Australia, formerly Genesee and Wyoming Australia, currently operates the line’s 2200 Tarcoola-Alice Springs-Darwin leg.
The sale is subject to regulatory and Australian Competition and Consumer Commission approval and is expected to be completed by April 2022.
The 1420km Alice Springs to Darwin leg of the rail line was opened in 2004 after almost a century of lobbying to secure the extension.
The Commonwealth contributed $191.4 million to the project with $367.8 million from the Northern Territory and South Australian governments as well as from private investment.
AustralAsia Railway Corporation, a partnership with the Territory and South Australian governments, developed the project.
Freightlink has a 50-year concession to operate the line and Great South Railway operates passenger services.
Aurizon says it will retain and integrate One Rail Australia’s bulk and general freight assets including five shunting yards, 68 active locomotives and more than 1000 wagons, along with approximately 400 employees.
Aurizon chief executive officer Andrew Harding says the rail line acquisition is “highly strategic and transformative”.
“It is fully aligned with Aurizon’s strategy to grow our bulk freight business into new markets and new geographies in Australia.
“The one rail acquisition delivers a step change for Aurizon Bulk as a new entrant in the South Australian and Northern Territory region and supports the ongoing growth of non-coal revenue in the Aurizon portfolio.”
There is currently strong interest in Northern Territory commercial assets.
Two weeks ago it was announced Sentinel Property Group was in negotiations to buy Casuarina Square shopping centre for a reported $420m.
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