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Rail News: Rail Industry Trends

Freight Australia tallies two long-term, revenue-generating contracts

RailAmerica Inc. Sept. 26 announced that Freight Australia recently signed two long-term contracts that would generate $9.8 million in revenue: A three-year, $7.6 million contract with Shell Oil Co. of Australia Ltd. to transport bulk fuel in New South Wales; and a five-year, $2.2 million deal with Nestle Purina to move domestic wheat and other grains.

"These new long-term contracts will enable Freight Australia to generate revenue immediately from our pool of locomotives and railcars, which have become available due to the drought that has affected southeast Australia," said Freight Australia Chief Executive Officer Marinus van Onselen in a prepared statement, adding that the contracts also will help the railroad diversify its commodity base, expand its geographical reach and position itself for further growth.

RailAmerica in April 1999 purchased from the Victorian State government 3,150-mile Freight Australia, which last year recorded $101 million in revenue and moved 220,000 carloads.

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More News from 9/26/2002