Australian Railroad Group (ARG) was one of Australia's largest private rail operators, operating across almost 10,000 kilometres of track and began operating in Western Australia on 17 December 2000 following its purchase of the Westrail freight business.
In February 2006 Wesfarmers announced it had reached an agreement with its joint venture partners to sell ARG for $1.3 billion. Babcock & Brown would own and run ARG's rail business in Western Australia, mainly track and infrastructure, while QR will own and run the rail haulage business and infrastructure. Queensland Rail would pay $446 million for the rolling stock, depots and customer contracts, making them move in order to become a national player in Australian rail freight. In March 2006 the Australian Competition and Consumer Commission said it would not oppose the takeover, competition would not be impacted due to existing competition between ARG and QR being limited. The takeover was completed in June 2006. The SA below rail business was retained by Genesee & Wyoming as Genesee and Wyoming Australia.