Toll bails on rail

Publicly listed Australian logistics firm Toll Group has sold its stake in the Kingdom’s national railway, a project plagued with botched community resettlement attempts and development setbacks. A Toll Group draft media statement, dated today, says Toll Group on Friday offloaded its 55-per-cent stake in the Toll Royal Railway concession to its joint venture partner, Royal Group. “The decision to divest our interest in the concession was not taken lightly, but it was decided after generating lower-than-expected returns over a period of time,” Toll group managing director, Brian Kruger, is quoted saying in the statement. “In addition, setbacks and delays in track rehabilitation works by external contractors over the past two years has in our view also impeded the efficient operation, and hence economic viability of the railway.” Toll will continue to provide external logistics support to Royal Group, today’s media statement says. “Toll Royal Railway has prided itself on the professional approach it has taken to training staff, safety management, community education and operational excellence, and Toll recognizes the importance of the improvement of logistics services to support the growth and prosperity of Cambodia,” Kruger said in the statement. In 2009, the Cambodian government awarded Toll Royal Railway a 30-year concession to operate the Cambodian Railway Network and also the rights to Samrong Estate on the outskirts of Phnom Penh to build a new freight terminal.