Australian Wesfarmers Ltd and US based Genesee & Wyoming G&W have agreed to sell their Australian Railroad Group ARG JV to investment firm Babcock & Brown Ltd and Queensland Rail, for A$1.3 billion. Wesfarmers said that under the deal Babcock & Brown will acquire and operate ARG's track and associated infrastructure in Western Australia and Queensland Rail, owned by the state government of Queensland, will acquire the rail haulage side of the venture and associated infrastructure. Assets include freight operations in Western Australia and contracted services operating in the states of New South Wales and Victoria.

ARG carries about 50 million tonnes of freight a year and has 200 locomotives, 4,000 wagons and more than 10,000 km of track. It is Australia's largest transporter of grain, handling more than 10 million tons a year and also transports iron ore, alumina, bauxite, gypsum, coal, nickel and mineral sands.