This story is very significant, it means that the new owners (American) appreciate the immense potential yet to be unlocked in the centre of this great country...
CONFIDENCE in Chinese and Indian demand for minerals has convinced a US rail company to pay $334 million for the Darwin-to-Adelaide rail link.
Genesee & Wyoming announced yesterday that it was buying all assets of FreightLink, Asia Pacific Transport and related corporate entities from receivers KordaMentha.
The company expects to be owner-operator of the line by the end of the year. It has operated the line since 2004.
FreightLink's main asset is the 2250km stretch of rail line between Darwin and Tarcoola.
Other assets include 23 locomotives and 430 railcars.
In a statement released from its US headquarters, Genesee & Wyoming said the railroad was a high-quality asset of great importance to the mining industry in the Northern Territory and South Australia.
"We believe that the rail line will continue to be a catalyst for unlocking major new mining projects that were not economically feasible without it," it said.
"As countries such as China and India continue their long-term trajectory of industrialisation, we expect to see direct benefits to the FreightLink minerals franchise."
This deal will have direct bearing on certain of CTP's interests in the future
Regards to all
John
CTP Price at posting:
35.0¢ Sentiment: Buy Disclosure: Held
