Minister says Westrail may be sold by year end

25/5/00
Transport Minister Murray Criddle announced today that the legislation allowing the sale of Westrail Freight had passed through Parliament.
Mr Criddle said the successful passage of the sale Bill had cleared the way for the sale to proceed without delay.
"We will now call for expressions of interest worldwide from potential bidders, and members of the sale task force will conduct a series of commercial briefings throughout Australia and overseas in the next few weeks," he said.
"There is now a great opportunity for any strong rail operator to formally express an interest in the freight business and judging from informal inquiries to date we expect an extremely competitive bidding environment.
"Western Australians will be the real winners from this process because I'm confident we will be able to identify an innovative rail operator with the financial strength and genuine willingness to grow the freight business and introduce new ideas and services.
"The sale of Westrail Freight will be a continuation of the significant reform in the land transport sector in this State, and I look forward to the arrival of a new operator who will ensure that rail is a viable and efficient preference to other transport modes.
"The new owner will be expected to bring about the reforms and operating efficiencies the rail freight sector in WA has been waiting for."
Mr Criddle said potential bidders had been waiting for the passage of the sale legislation through State Parliament and were now keen to move as quickly as possible.
"Expressions of interest will be called shortly and I anticipate the sale will be complete by the end of this year," he said.
Mr Criddle said bidders would be made aware of the Government's desire to reduce industry's excessive reliance on road freight and the need to encourage as much of this task as possible on to rail.
"We have made it clear from the start that we are looking for a world-class, efficient, innovative specialist private rail operator committed to sustaining rail transport in a competitive freight market," he said.
"And that operator must be willing to make the necessary investments to improve rail's market share. The potential benefits to industry, in particular the mining and grain growing industries, are enormous."
Mr Criddle said Westrail had served the State well for the past 95 years, but it had gone about as far as it could go under Government ownership.
"The next step requires a level of commercial and investment acumen and innovation that is only available in the private sector," he said.
"I look forward to the introduction of a new owner who can develop a strong and thriving rail freight business - for the benefit of all Western Australians."
Media contact: Doug Cunningham 9321 7333