AUSTRALIA'S ASCIANO GROUP TO SELL PACIFIC NATIONAL RAIL BUSINESS

The Asciano Group (ASX:AIO) has finalised an agreement with the Tasmanian government for the sale of its Pacific National rail business in the island state for $A32 million (US$27.24 million).

Under the deal, all of Pacific National's rail infrastructure and railway operations will be maintained, managed and owned by a new state-owned rail company from December 1.

Asciano chief executive Mark Rowsthorn said the sale will enable the group to focus on its core businesses.

"Whilst our negotiating team have enjoyed the numerous visits to Tasmania over recent months we are all relieved to see this deal done and I would like to publicly recognise our team's efforts in finalising what is quite a technical agreement," he said on Monday in a statement.

Tasmanian government infrastructure minister Graeme Sturges said the deal would secure the jobs of Pacific National Tasmania (PNT) employees and rail services.

"Through this purchase of the Tasmanian rail business, the government is ensuring that rail continues to be a viable transport option in Tasmania, delivering both ongoing certainty of rail services to customers and job security to all PNT employees," he said.

Asciano in July announced plans to sell the operation to the state government.

Pacific National bought the Tasmanian business in 2004.

(AAP) sld

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