April 18, 2008

Uncertainty in Australian rail freight worries grain traders

Grain traders in Wimmera, west of Australian state Victoria, are worried that their businesses will be jeopardized by disruption of rail freight services.

The state's main rail provider, Pacific National, is deciding on the possible pull out of its operations from Victoria.

On Wednesday, concerned traders held an emergency meeting in Horsham.

At least two of the companies expressed the possibility of moving their operations interstate.

David Matthews from the Wimmera Grain Company said the rail problems are putting US$50 million worth of investment and scores of jobs in doubt.

There have been ongoing discussions with the government for some months now, Matthews said.

Matthews and other industry players expressed that they cannot operate in the face of uncertainty and have pushed for assurance from the government of continued rail service.

The cabinet will be sitting in the Southern and Northern Grampians shires next Monday and Tuesday.

The Nationals' Member for Lowan, Hugh Delahunty, said it is an opportunity for the Australian government to outline its plans for the rail sector.