WAGGA City Council is forging ahead with plans to build a $45 million intermodal freight hub at Bomen, in the wake of the company responsible for the project entering voluntary administration in April.
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Mayor Rod Kendall is confident a new proponent will come on board after administrators, HLB Mann Judd, called for interested parties to take over the project, touted to improve transport efficiency and cut logistics costs across the Riverina.
Cr Kendall expects a decision over the Riverina Intermodal Freight and Logistics (RIFL) hub will be made in September when a report with possible proponents is presented back to council.
“We expect that we will have (a proponent) because there’s been considerable interest shown,” Cr Kendall said.
Traxion, the mining company responsible for the proposed project, fell into administration with the industry downturn three months ago.
“There’s every chance a new proponent will put a new face on it with modifications from where Traxion got up to,” Cr Kendall said.
Cr Kendall said a decision must be made in September so as not to jeopardise the $14.5 million federal funding.
Council has already spent about $2 million on the project and is expected to spend an additional $18 million if it secures a proposed $12 million commitment from the state government.
While Cr Paul Funnell supports the concept, he is concerned the project is being built around the $14.5 million federal infrastructure grant, rather than any commercial entity expressing support for the project.
“We’re trying to spend $3 just so we can get one,” he said.
Cr Andrew Negline is optimistic the project should go ahead, but cited commercial challenges relating to the federal grant, while Cr Kevin Poynter confirmed “council just can’t do it on their own”.
Wagga MP Daryl Maguire has made representation to Premier Mike Baird to secure the proposed $12 million to develop the project and associated road infrastructure.
