Industry shock as Railroad reaches abrupt final stop


Company hits wall despite bullish outlook in recent years

Industry shock as Railroad reaches abrupt final stop
Railroad was recently in the midst of east coast expansion with national ambitions

 

South Australian intermodal operator Railroad Transport has collapsed, with liquidators appointed this week.

An Australian Securities and Investments Commission (ASIC) alert said notice was given at a general meeting of company officers on July 20 that the company would be wound up, with advisory firm Tarquin Koch overseeing the liquidation.

Tarquin Koch confirmed all Railroad staff - about 100 - have been made redundant and will be owed more than $2 million, with reports suggesting the business made slight losses on annual revenues of around $35 million in the past couple of financial years.

Railroad’s web and social media presence has since evaporated.

The Railroad brand in its most recent iteration was formed in 1990, though the company roots date back to 1957, with links to the McMahon family and AFL Hall of Famer Bob Hammond.


A company profile of Railroad Transport is available here


The development is seen as a shock given the company, which at its height employed some 160 staff as of 2019, outlined its east coast growth ambitions to ATN at the time.

Those plans comprised investment in new Melbourne facilities and the acquisition of Hopper Transport.

Initial views from industry sources indicate a range of factors at play in the company’s failure.

Railroad was said to have encountered difficulties with digesting the Hoppers business.

Intermodal facility and contractual issues were also cited, as was the broader impacts of the pandemic.

 

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