Australia Southern Railroad Pty Ltd 320 Churchill Road Kilburn SA 24 May 2002 MEDIA RELEASE JOINT APPROACH TO REVITALISE CROSS BORDER RAIL LINK Private rail operators Australia Southern Railroad and Freight Australia are investigating the possibilities for the re-opening of the rail link between Mount Gambier and Portland. Australia Southern Railroad (ASR) was announced last year by the previous South Australian Government as the preferred proponent for the standardisation and re-opening of the Mount Gambier to Wolseley rail link. However, questions have remained over the future of the cross border link between Mount Gambier and Portland, which was abandoned in 1995 due to lack of funding for gauge conversion from broad to standard gauge. With continued economic growth in the region, both ASR and Freight Australia have identified significant freight flows between the two centres. Uncertainty over track ownership and funding for standardisation has until now clouded proposals for the reopening of the line. In South Australia, the track between the Mount Gambier and the border is owned by the South Australia Government, while in Victoria, VicTrack owns the section from Heywood to the border. The line from Heywood to Portland is operated by Freight Australia under an extended lease from VicTrack. ASR is continuing negotiations with the South Australian Government on the details of a contract to reopen the Wolseley to Mount Gambier link. Included in the package is a long-term lease of the line between Millicent and the Victorian Border. ASR CEO Wayne James said, "Our investigations to date have shown that there is the potential freight to make the link to Portland viable. The South-East is one of Australia's fastest growing economic regions and as such deserves a first class transport service." "With the recent sale of National Rail and FreightCorp, the railway landscape has radically changed in recent months and cooperation between operators such as ASR and Freight Australia is likely to become more common in the future as rail looks to increase its market share." "A joint marketing approach and pooling of assets will lead to economies of operation and allow the rail industry to provide low-cost transport solutions to local businesses and industry." Both companies already provide interstate links between major Australian capitals and the re-opening of these links will see Mount Gambier once again reconnected with the interstate rail network. For Further Information Contact: Australia Southern Railroad Paul Hollitt on 08 8343 5330 or 0419 833 165 Freight Australia Brian McNaught on 03 9619 4894 or 0416 027 422.