Asciano finalises PN sale in Tasmania

In an outcome widely viewed as a foregone conclusion, all rail infrastructure and railway operations in Tasmania will be maintained, managed and owned by a new state-owned rail company from December 1, subject to parliamentary approval.

Early speculation has been that it will involve a partnership between government and business but details have been scarce, as have those on how the purchase will be financed.

PNT struggled to return a profit in the Tasmanian business since its creation in 2004.

This has been due in part to aged and degenerating rail infrastructure, which is now subject to state and federal government investment focused on repairs and sleeper upgrades rather than systemic modernisation.

Asciano managing director Mark Rowsthorn underlined the point when joining with infrastructure minister Graeme Sturges in praising the PNT workforce as it weathered considerable uncertainty.

“Operating a rail business is never easy at the best of times and our PNT staff have performed admirably under challenging circumstances,” Mr Rowsthorn said.

Mr Sturges said the purchase emphasised the state government's commitment to the freight transport mode.

“Through this purchase of the Tasmanian rail business, the government is ensuring that rail continues to be a viable transport option in Tasmania, delivering both ongoing certainty of rail services to customers and job security to all PNT employees,” he said.