The operator of the Adelaide to Darwin railway, Freight Link Pty Ltd, is looking for a long term strategic partner to invest $360 million in a move that will dilute the interests of Western Australian stakeholders.
Currently, Western Australian shareholders in Freight Link include construction company John Holland Group (11.4 per cent) and contractor Macmahon Holdings (7 per cent).
Freight Link CEO John Fullerton said the new equity would be used to retire existing debt and position the company for future growth.
"The changes which we are announcing today will position Freight Link to capture significant growth in the future, especially from the haulage of bulk minerals for export and to participate in new opportunities across the interstate network.
"The operations of Freight Link and Asia Pacific Transport Ltd will be merged into a single holding company operating the track and providing transport services."
Last January, Freight Link began moving fuel products on rail using purpose built wagons designed to carry road fuel tankers.
In April this year, Freight Link commenced haulage of bulk manganese ore from the OM (Manganese) mine at Bootu Creek, 120 kilometres north of Tennant Creek, to Darwin for export.
Freight Link has appointed JP Morgan as its adviser on the new equity raising.
Asia-Pacific Transport joint venture has a 50 year concession to own and operate the 2,240 kilometre Tarcoola to Darwin railway.
Other shareholders of Freight Link include Kellogg Brown and Root (36.3 per cent), Barclay Mowlem (13.9 per cent), National Asset Management (7.3 per cent), Colonial First State (6.3 per cent) and six other shareholders including investment funds and Aboriginal corporations.
