Qube Logistics has assured Horsham Rural City councillors that its operations at Mill Street's rail freight terminal are a short-term solution.
Councillors met three Qube senior executives on Monday, ahead of a public meeting with affected residents last night.
Qube and council also spoke with Wimmera Container Line yesterday.
Mayor David Grimble said the Qube executives gave councillors an overview of the company's operations.
He said the business emphasised it did not plan to stay in Mill Street for long.
"They left us with three very clear messages,'' he said.
"They have contracts with clients and are obliged to fulfil them; this is a very temporary arrangement; and they plan to use the terminal at Dooen in the long-term.''
Cr Grimble said council reiterated to Qube that it did not want rail freight in the city.
"I thought the meeting was quite good,'' he said. "It wasn't a meeting to resolve issues, but a meeting with Qube on why they're occupying the site and our thoughts.''
Cr Grimble said Qube indicated it would be in Mill Street for a couple of months.
Horsham Rural City Council technical services manager John Martin said last week Qube had sought access to the $17.5-million project Wimmera Intermodal Freight Terminal at Dooen.
He said the business experienced difficulties and then sought access to the Mill Street site.
Cr Grimble said Qube had contractual issues with Dooen terminal operator Wimmera Container Line.
He said Qube told council the business wanted a contract with reasonable commercial terms.
"We're hoping the two companies will be able to sort out their contractual issues,'' he said.
"Both companies have indicated they feel like they can resolve it.''
Cr Grimble said council's focus would now be on ensuring the Mill Street freight terminal was decommissioned.
"The best thing is not to have Mill Street operating as an intermodel freight terminal,'' he said.
"It should have been decommissioned. I'm surprised that this thing has fallen through and we are where we are.''
Cr Grimble said he would raise the issue while attending a national roads conference in Hobart from tomorrow.
Qube corporate affairs director Paul White said the business intended to be a long-term employer in Horsham.
He said the meeting with council was positive and he emphasised Qube's aim to move to Dooen.
"We explained the commercial aspect of the dispute,'' he said.
"We said to them we don't have any desire to prolong our stay in Horsham.
''There are a range of issues but we don't want to get into it.''
Mr White said Qube met with Wimmera Container Line representatives late yesterday.
He said he expected discussions would continue next week.
"We're very keen to talk to them,'' he said.
"We just want a commercial agreement that makes sense for both parties.
''We just hope we can reach it it shouldn't be very complicated.
"We are committed to reaching an agreement.''