More funds should be pumped into rail to generate a modal shift, according to a new report touting the benefits of rail
By <a href="mailto:bgardner@acpmagazines.com.au“>Brqad Gardner | August 10, 2011
More funds should be pumped into rail to generate a modal shift, according to a new report touting the benefits of rail.
Deloitte Access Economics’ The True Value of Rail report is urging greater investment in the north-south corridor connecting Brisbane to Melbourne via Sydney to increase rail’s share of the goods carried along the route.
The report, paid for by the Australasian Railway Association (ARA), says the corridor is beset by capacity constraints, particularly on the Sydney metropolitan section.
“This arises from the fact that interstate freight trains must share the metropolitan network with passenger trains,” the study says.
It goes on to say the existing state of the corridor is such that rail is incapable of producing around $227 million in forecasted freight volumes by 2030 unless the infrastructure is upgraded.
“The initial investment required to free up capacity on the north-south corridor is to establish the northern Sydney freight corridor,” the report says.
Feasibility works on the corridor are currently underway. The report proposes a series of changes to improve the interoperability between passenger and freight trains, with the route eventually transitioning toward a dedicated freight line.
The study also recommends the establishment of intermodal facilities in Sydney and Melbourne and an overhaul to existing road user charges.
Accusing the trucking sector of failing to pay its way for the use of the road network, Deloitte Access Economics wants governments to slap a levy on each container carried by truck to account for externalities such as congestion and carbon emissions.
“This could then transition towards charging freight movements based on the use of arterial roads and finally towards mass-distance charging,” it says.
The study, commissioned to pressure governments into investing more money in the rail sector, claims transporting a container between Melbourne and Brisbane on rail as opposed to on the back of a truck will save about $150.
“Freight moved between Melbourne and Brisbane by rail instead of road reduces carbon costs by around $56 per container and reduces accident costs by around $92 per container,” Deloitte Access Economics says.
According to the report, rail will generate savings of up to $630 million by 2030 in terms of a reduction in carbon pollution and accidents if it achieves a 40 percent share of the task on the north-south corridor.
The Deloitte Access Economics report also focuses on improving the lot of passenger transport and says every additional rail journey reduces road safety risks and the time spent in traffic by between six and 23 minutes.
“Road transport generates almost eight times more accident costs than rail transport,” the report says.
“Road freight produces more than ten times as much carbon pollution as rail freight per tonne kilometre.”
The report blames a lack of investment over a long period of time for the inaccurate perception that rail is unreliable, adding that rail’s share of the interstate non-bulk task has slipped to under 30 percent compared to road freight, which has hit 70 percent.
The report touts rail as a potential bulwark against oil depletion and the ideal transport mode to reduce Australia’s reliance on it because of its use of electricity.
It says rail’s total energy consumption is only 4 percent of the amount of energy consumed by road transport.
Citing the work of the OECD, the report adds that there is scope for rail transit times to improve and for costs to reduce as global demand increases for freight transport.
“This is in contrast to other modes of transport that have limited scope for improved transit times and are unlikely to curtail their levels of CO2 emissions,” it says.
“For freight, the true value of rail far exceeds its nominal value.”
ARA CEO Bryan Nye has used the report to call for the country’s “love affair” with cars to end. He says too much focus for too long has centred on roads.
“As well as being good for our environment, more freight on rail will reduce the amount of traffic on our roads, reducing congestion and making our roads safer,” Nye says.
He says congestion is sapping productivity and that “bold decisions” on the part of government are needed to improve the transport system. He says there needs to be a national plan that will allow each mode to play to its strengths.
The ARA says one freight train travelling between Melbourne and Brisbane in one year reduces carbon emissions by the same amount as planning 600ha of trees.
“The report details the true benefits of rail, compared to other transport modes, in alleviating congestion, reducing our carbon footprint and improving the health and wellbeing of Australians,” QR National Managing Director and CEO Lance Hockridge says.