Westrail and NRC finalised agreements for WA track access rights

23/8/94

Westrail and the National Rail Corporation have finalised arrangements for track access rights in Western Australia by the new national rail freight organisation.

Transport Minister Eric Charlton said a heads of agreement was signed by both parties this week, formally ending months of negotiation.

"The negotiations were long and difficult, but in the end necessary to protect the economic gains Westrail has made through recent major restructuring," Mr Charlton said.

"WA has emerged from these negotiations significantly better off than if it had it continued as a shareholder in the NRC.

"Because the State Government withdrew WA from that shareholder arrangement, the State saved $8 million in start up equity investment and many millions of dollars in the future as the new organisation becomes established and has a chance of making a profit."

Mr Charlton said the agreements gave effect to the State Government's support for the national rail freight concept while at the same time protecting WA's financial exposure.

The NRC's track access within WA was agreed to on commercial terms, with both parties deciding not to publicly disclose the financial aspects of the contracts involved.

Had the agreement been struck under shareholders' terms, the State would have had limited control over track and other infrastructure.

Under the terms of the agreement, Westrail will grant access and other rights to the NRC over specified track and infrastructure related to interstate rail freight movements.

"Importantly, the State through Westrail will remain in control of railway track and its own train operations," Mr Charlton said.

"The possibility exists for further competition on the east-west rail corridor which could lead to further benefits for WA."

Under the agreement:

·       management and control of the Kewdale freight terminal will transfer to the NRC on September 14, 1994, under a lease agreement;

·       National Rail will crew trains and provide their own locomotives from April 1, 1995, with full services commencing by July 1, 1995; and -

·       Westrail to continue to provide equipment maintenance services for the first four months of the agreement.

Mr Charlton said that because of the single management concept for all interstate rail freight and the fact that the NRC would be responsible for all crewing arrangements, there would be some impact on Westrail staff.

"In the original agreement entered into by the previous Labor State government and the Commonwealth five years ago, about 85 Westrail crew jobs were made surplus," he said.

"The Government has never sought to hide this factor but that has not stopped the State Opposition from maliciously distorting the facts because of the Helena by-election.

"Unlike the previous government, this Government has made arrangements for looking after those affected workers."

The Minister said that of the 55 rail workers affected at Kewdale, so far 21 had transferred to the NRC and 18 had accepted voluntary redundancy.

He said the remainder would be offered redundancy or redeployment within Westrail.

Media contact:  Dean Roberts 321 7333