PANIC ensued among Prosperine residents in February this year when a letter from Aurizon rail was delivered to Wilmar employees stating after December this year the sugar cartage contract between the two companies would no longer exist.

There was initial speculation of 2500 truck movements through Proserpine if the company decided to truck raw sugar to the port of Mackay.

Member for Dawson George Christensen told 7 News at the time "Aurizon needs to have a good hard look at their pricing structure and get Wilmar and other sugar providers back on the rails".

Wilmar Sugar confirmed this week that the contract with Aurizon ends in December this year and also stated "Wilmar Sugar is committed to keeping its raw sugar on rail”.

Wilmar Sugar issued tenders for the freight of its raw sugar by rail from the Burdekin and Proserpine mills to the Townsville and Mackay ports early last year.

However to date no announcements have been made about the successful winners of the tender.

"We are currently in discussions with a preferred tenderer and expect to finalise a contract in the coming weeks,” a Wilmar spokesperson said.

The new provider will transport sugar to the Townsville and Mackay ports next year when the crush begins.

"We hope to be in a position to make an announcement on the new rail contract soon,” a spokesperson said.