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The Australian commonwealth and state governments of New South Wales and Victoria Aug. 24 announced a two-railroads/one-price proposal.

The three governments soon will accept bids on the combined sale of National Rail Corp. (NRC) and FreightCorp. — a move government officials believe would provide taxpayers a fair return for their investments, and one that represents a major step forward in Australian rail industry reform.

NRC is 70 percent owned by the commonwealth, 20 percent by New South Wales and 10 percent, Victoria; Freightcorp is the freight arm of the New South Wales State Rail Authority.

Sale objectives include: Develop a commercially sustainable and competitive freight business; ensure that the sale process fairly treats NRC and FreightCorp employees; and create quality freight services for regional and rural Australian customers.

New South Wales agreed to sell FreightCorp provided its employees are given a three-year job guarantee. New South Wales also reached an agreement with the commonwealth, under which track management in the state by June 2002 would be transferred to Australian Rail Track Corp.

The governments expect to name a preferred bidder in fall and complete the combined sale by year-end.