GOOD news arrived for the people of Proserpine last Friday, when Wilmar Sugar announced new sugar haulage contracts for the 2018 crush were "near”.

Speculation arose earlier this year that raw sugar would be trucked to the Port of Mackay, after Aurizon made it clear a bulk sugar haulage deal with Wilmar Sugar would end at the conclusion of the 2017 crush.

Wilmar Sugar Australia has confirmed it is near to finalising a contract with rail operator Pacific National for the haulage of raw sugar between Wilmar mills and the ports in north Queensland.

Wilmar executive general manager north Queensland John Pratt confirmed the end of the relationship with Aurizon beyond 2017.

"We invited a number of rail operators from within and outside Queensland - including Aurizon - to put proposals to us for a new long-term agreement,” he said.

"The outcome of a rigorous process of review that followed is that Wilmar will partner with Pacific National.

"While Aurizon did make an offer in the process, that offer was withdrawn, with an indication that sugar haulage no longer aligned with their business priorities.

"Rail is our preferred mode of transport for raw sugar and Wilmar will work with PN and the State Government to ensure a sustainable long-term solution.”

A Pacific National spokesperson confirmed that work was already under way on design and fabrication of new wagons that would be used to haul Wilmar's sugar to port.

"We are looking forward to working with Wilmar,” the spokesperson said.

"We have a number of major customers in Queensland and this further strengthens our commitment to the north.”