all services unless the governments paid a $100 million subsidy. Initially the governments refused to act on the issue claiming they would not be "held to mercy" by Pacific National, owned by Toll and Patrick Corporation, "which are extremely profitable multi-national companies". However, state infrastructure minister Bryan Green and federal counterpart transport minister Warren Truss announced a $120 million rescue package. In May 2007, the Tasmanian Government, the Federal Government and Pacific National came to an agreement regarding the funding, ownership and operation of the Tasmanian railway network; with the Tasmanian Government acquiring the railway infrastructure previously leased to Pacific National, who would continue to provide above rail services on the network. In September 2009, the Tasmanian Government purchased the Tasmanian rail business, with rail infrastructure and railway operations to be maintained, managed and owned by a new TasRail. Rural services 2007 In December 2007, Pacific National announced plans to sell or close its grain transport and Portlink rural container business operations in Victoria, selling or closing Patrick's intermodal freight business in Tasmania, and downsizing to a bare minimum Pacific National's grain operations across New South Wales. The decision was criticised as it forced grain growers to use higher cost road transport to transport the annual grain harvest from rural silos to the ports. The decision has seen many commentators accuse Pacific National of acquiring the operations of Freight Australia in 2004 only for the purposes of asset stripping and eliminating competition in rail freight. In 2008, the company declined to sell wagons which had reached the end of their useful life to other Australian rail operators, indicating that the wagons would be scrapped or exported to Saudi Arabia. The container freight service to Horsham, Victoria was almost cancelled in April 2008 but was given a three-month reprieve by the company. In July 2008, the service was taken over by QR National and later Qube. Operations Pacific National operates in all mainland states and territories. As of June 2012, the company operates 596 locomotives and 12,875 wagons. Services include bulk freight (coal, grain, steel, ore), intermodal containers (domestic and import-export), and specialised services such as 'hook and pull' for long-distance passenger trains. The Pacific National steel contract was renewed with BlueScope and OneSteel in 2006 for $1bn, making it the largest ever freight rail contract in Australia. The deal involves haulage of about 3 million tonnes of steel over seven