Minister accepts payment for sale of Westrail freight

18/12/00

Transport Minister Murray Criddle has officially accepted payment on behalf of the State Government of $585 million, formalising the sale of the Westrail freight business to Australian Railroad Group.
The ARG consortium is jointly owned by Wesfarmers Limited and international rail operator Genesee and Wyoming Inc.
As well as the up-front payment of $585 million, ARG is expected to make investments in the track and stock worth around $400 million over the next five years.
Mr Criddle said the settlement of the sale was the start of an exciting new era for the rail freight industry in Western Australia.
"I'm confident that Wesfarmers' business knowledge and long association with the WA rural and industrial community, combined with Genesee and Wyoming's world-class rail operating expertise, will grow this important transport operation," the Minister said.
"I'm sure the consortium will build on the experience and skills of Westrail's existing employees to continue to improve the business at all levels.
"I believe the sale will result in significant regional development, more opportunities for employees, and provide major benefits to the State."
Mr Criddle paid tribute to the Rail Freight Sale Task Force, which was established in 1998 to conduct the sale.
"The task force has overseen a long and complex transaction, and I thank them for their dedication and perseverance to ensure a successful sale," he said.
The Minister said he looked forward to a bright future for Westrail employees under the new operator.
"More than 90 per cent of employees accepted the offer to transfer to ARG, and I believe their decision underlines our belief that the new owner will be able to offer an exciting and stimulating work environment for employees," he said.
"Certainly there will be an increased emphasis on training and a profit sharing plan."
Mr Criddle said ARG recognised the importance of regional WA, and in particular the needs of the State's grain growers.
ARG would continue the current program to improve logistics and provide competitive freight rates. As part of the sale agreement, the grain line strengthening project, which has already begun, would be completed.
Media contact: Doug Cunningham 9321 7333