Statement re: Riverina Intermodal Freight and Logistics hub

Statement re: Riverina Intermodal Freight and Logistics hub - 5 May 2015

Wagga Wagga City Councillors were last night given an update on the Traxion Group at a Riverina Intermodal Freight and Logistics (RiFL) hub workshop.

The Traxion Group, which consists of four companies, entered voluntary administration last Tuesday 28 April. While under administration, Traxion continues to trade.

Council representatives met with the administrator on Friday 1 May and were informed the principal cause of voluntary administration was exposure of a Traxion Group member to iron ore prices and a decline in the mining industry.

The voluntary administrator explained time was of the essence and their role was to continue to trade, with a decision on recapitalising, selling or liquidating likely to be made by the end of the month.

Expressions of interest have been sought and obtained from substantial and reputable organisations to acquire the Traxion entity developing RiFL and the EOI was also advertised in the Sydney Morning Herald and Australian Financial Review on Saturday 2 May.

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

Council retains full control, there is no exclusivity and no compulsion to proceed on the RiFL hub concept and all options remain open to Council.