Freight Rail was created on 16 January 1989, when, as part of reconstitution of the State Rail Authority, new railway were formed and the previous Freight Operations became Freight Rail. FreightRail upgraded its locomotive fleet and developed closer business links with major "service providers" with railway contracts where locomotives were leased to local affiliates and financiers. (1)
In August 1995, the government announced a program of microeconomic reform including the corporatisation of significant rail businesses. From 1 July 1996 the State Rail Authority was divided into four new independent businesses with Freight Rail becoming FreightCorp.
(1) Annual Report of the State Rail Authority for the year ended 30 June 1992 p.13.