Until March 1978, the Tasmanian Government Railways had operated the state mainline railways since 1890, and had amassed a large and prosperous network over that time, albeit ahead of continued financial losses and the dwindling of freight and passenger workings up into the 1970s.
The Tasmanian and Federal Governments entered into an agreement for the transfer of the Tasmanian railways to Australian National on 1 July 1975, but the Tasmanian Transport Commission's Railways Branch retained responsibility for administering and operating the system as an agent for Australian National, until the latter assumed full control on 1 March 1978.
In 2009 the operations were taken over by TasRail.
Operations
The main cargo carried by AN Tasrail was cement, which is carried from Railton to the port at Devonport. Other major commodities carried were coal, logs, containers and newsprint. Passenger services ceased in June 1978.
The Australian National green and yellow livery was adopted in 1980. Upon privatisation, the Wisconsin Central's maroon and yellow livery was adopted. This was retained during the period of Pacific National ownership.
AN Tasrail inherited all of the Tasmanian Government Railways rolling stock. No new locomotives were ordered, but second-hand locomotives were purchased, some of which were for parts only.