Statement re: Riverina Intermodal Freight and Logistics hub

Statement re: Riverina Intermodal Freight and Logistics hub - 30 April 2015

Wagga Wagga City Council was informed late yesterday that Traxion has entered voluntary administration.

While under administration, Traxion continues to trade.

Council spoke with Traxion and its administrator, HLB Mann Judd, and were advised the company’s operating businesses have been impacted by the slowdown in the mining sector amongst other factors.

Traxion was selected as Council’s preferred proponent to develop the Riverina Intermodal Freight and Logistics (RiFL) open access hub in June 2014.

Council’s Director Commercial and Economic Development Dr Peter Adams said the fundamentals of expanding Bomen Business Park and the RiFL freight hub are still strong.

“Staff are working with Traxion and the administrator in relation to the freight hub project,” Dr Adams said.

“Council’s investment so far has been in creating broader economic growth opportunities through infrastructure design, land options and acquisitions, commercial analysis and securing government funding.

“Council has no financial exposure to the company.

“The key project elements remain the same – the project is strong, businesses are keen to see it delivered, the Federal Government is keen to see it delivered and it’s a key component for inland rail.

“The project is at a stage where it is well advanced, with interest expressed by the local, national and international business community.

“Council will now work its way through this challenge as we continue to create economic growth and value for the region.”

Council representatives will meet with the administrator tomorrow.