Thursday, March 4, 2010

Want To Buy A Freight Railway ?

Australian Rail Network Up for Sale
Shipping News Feature

AUSTRALIA – The receivers of Freight Link Pty Ltd., the freight rail owner operator which went under Down Under in 2008, want to hear from any investors interested in acquiring the line between Darwin to Adelaide. The service is used for shipping products as diverse as dry and liquid bulk goods, cars and copper-gold concentrate ore. A statement on the company website anticipates ever increasing tonnages but has a recent history of flood damage to sections of the track.

The sale was anticipated last year but the difficult financial conditions made potential bidders cautious. Now the receivers believe they are in a better position to place the company with a serious bidder and report that they have had talks with “several interested parties”. The line has been successful in obtaining business in both the bulk and general freight sectors and, with trading conditions improving, plus the steady growth of the mining sector a more secure management structure might well see a success story in the making.

With the line historically successful in taking most of the heavy industry traffic away from truck companies the receivers are seeking a Warren Buffett leap of faith in the future of the service. Interested parties should contact receivers KordaMentha.