Higher employee wage expenses and fuel prices have pushed profits at state-owned TasRail down to $22,000 - barely above break-even - for the year to June 2022, according to its annual report released last week.
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But despite the result, the state-owned rail group is continuing with an unprecedented campaign of capital investment totaling nearly half a billion dollars.
In the past financial year, the company spent $65 million on port and rail infrastructure, including on the $64 million project to replace its aging shiploader at the Port of Burnie.
Chief executive officer Steven Dietrich said the new loader, which will replace 50 year-old equipment at the port, would "deliver significant benefits to our existing and future customers".
"[It will have] approximately double the load rate per hour, with significantly improved reliability, and contemporary environment and safety standards," he said.
"The new shiploader's efficiency will [also] be an incentive for current customers to increase export volumes, and provide a confidence boost to new mining projects that they will have access to fit-for-purpose, integrated, export infrastructure."
Other multi-year investments included the Tasmanian Freight Rail Revitalisation Programme to upgrade the rail track network. Those upgrades are being made with a mix of federal and state government funding, Mr Dietrich said.
The $119 million second tranche rail revitalisation project is expected to finish by next year, and the $96 million third tranche by June 2024.
Mr Dietrich said TasRail has also received funding commitments from the new Labor government and the state government for $120 million for a fourth tranche of the rail network upgrade programme.
Other additional investments planned and funded included $30 million to reconnect the Bell Bay Line to the Bell Bay Wharf, which was disconnected during the 2016 floods; and $18 million for the construction of bulk mineral storage capacity on the Melba Line, which runs from Burnie through Rosebery to Melba Flats.
TasRail's planned investments past 2024 totaled $462 million.
The company said it was optimistic about its rail freight business - especially the forestry segment.
TasRail said its years-long campaign to get log transport off the roads and onto the rail track is starting to pay dividends.
In the year to June 30, log freight increased by 34 per cent compared to the previous year. TasRail also received state government funding to help develop equipment for forestry customers.
"TasRail is confident forestry volumes will continue to increase over time, with strong new inquiries being received," Mr Dietrich said.
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