Riverina intermodal project still likely to progress with significant outlay already invested
Rail infrastructure specialist Traxion is in administration, with the drop off in mining related business weighing down other parts of the company.
HLB Mann Judd partner Todd Gammel was voluntarily appointed as administrator of the company on Wednesday.
He tells ATN he will be looking to quickly assess Traxion’s financial situation, and then consider options including selling off assets and projects, and recapitalising the full business.
Gammel can’t yet pinpoint to the reasons behind Traxion’s financial position, but notes key parts of the company have exposure to the straining mining sectors of WA and NSW.
One project unlikely to be affected is the Riverina Intermodal Freight and Logistics (RIFL) hub at Bomen, outside of Wagga Wagga.
Gammel says this has progressed far enough through the planning and approvals process for the value in continuing to be plainly visible.
The current schedule would see construction beginning in 2016.
Even if Traxion does not go ahead with it, other parties have expressed interest in taking over its responsibility for delivery.
“It’s an interesting project that has progressed to a stage where people can see the value,” Gammel says. “The fact that others are expressing interest means it is likely the project is still viable.”
The $60 million RIFL hub is what Gammel considers an “extension” project for Traxion; it is not part of its main day to day business of rail engineering and maintenance.
Its key business units are based in WA rail services, Newcastle coal transport, and a Sydney-based engineering service.