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The Bell Bay rail line in northern Tasmania will reopen in September.
The line between Hobart and Bell Bay closed earlier in the year because two significant customers decided to ship their products out of the Burnie port instead.
The Minister for Infrastructure Lara Giddings says TasRail's decision to reopen the line offers local businesses a competitive freight transport alternative.
"Cadburys/Kraft are one of those companies that certainly wanted to see this line reopened so we're very pleased that we've been able to work with Cadburys through TasRail and find a solution which assists them in their transport needs but also opens up this transport route once again to other businesses," she said.
The Tasmanian Opposition has welcomed the reopening.
Liberal spokesman Peter Gutwein says it was Labor's mismanagement which caused the line to close.
"We're very pleased that the rail line is re-opening but what shouldn't be forgotten is that Labor have managed this rail line atrociously for the last 12 years and that's the reason it shut in the first place."
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