Allegro buys rail greats
The country's best-known transcontinental train services are back in Australian hands, with private equity group Allegro Funds buying the company behind the Indian Pacific, the Ghan and the Overland.
British services group Serco, perhaps better known in WA for running prisons and hospitals, put Great Southern Rail up for sale earlier this year, having owned the business for 15 years.
The new owner plans to invest up to $10 million to lure more luxury travellers to the services with the promise of "an authentic Australian adventure".
"What we want to do is invest money into providing additional luxury carriages as well as concentrate on improving the guest experience," Allegro managing partner Adrian Loader said.
He compared the Ghan and the Indian Pacific, in particular, to cruise ships, with passengers able to disembark for tours and local sights of interest and return to the comfort of the trains for overnight travel.
Mr Loader said demand for such "luxury experiential tourism" was on the rise, with Great Southern's sales up 15 per cent over the past year.
Great Southern turns over about $100 million a year and is profitable, though Allegro believes it could do much better.
The purchase price was not disclosed but Allegro said it was under $20 million and was made up of both "cash and non-cash".
Great Southern chief executive Chris Tallent will remain with the new owners.
