RAIL freight operator El Zorro Transport has sought to reassure its customers and backers the business is financially secure.
It follows rumours circulating that El Zorro Transport was in financial strife and owed industry groups substantial amounts of money, including millions of dollars to VicTrack.
In a statement to The Weekly Times, El Zorro Transport managing director Ray Evans said there had been a number of business issues which had challenged the company during the past few months.
Mr Evans said these included the US drought ramping up the Australian grain export program, the Wettenhall Group transport operation entering into administration and the collapse of a bridge at Boggabri in northern NSW hampering train operations to Newcastle.
"El Zorro has been hurt financially by the above,'' he said.
"El Zorro continues to work with our financiers, customers and suppliers.
"I am confident that El Zorro can continue to be a commercial and viable rail operator delivering much needed competition to rural Australia.''
VicTrack digressed from its normal practice of not commenting on its finances, saying rumours it was owed millions of dollars were "not right''.