Western Australia’s freight rail network has been under private control since 2000, but the state government is commencing negotiations to bring the industry back into government hands.
The existing lease agreement still has 24 years to run, however Premier Roger Cook says the government is exploring ending that agreement earlier to help support the increasing demand for the network.
Record grain harvests and the growth of key significant Western Australian industries, and the existing lease agreement gives the government little capacity to directly support industries that make use of the rail network or deliver policy objectives.
Premier Roger Cook says bringing Western Australia’s freight rail network back under government control will help improve outcomes across all levels of the supply chain.
“This is all about supporting our plans to diversify our economy, unlock future local jobs and retain WA’s economy as the strongest for future generations,” Cook says.
“Supporting the growth of our critical industries is a key priority for our government and bringing freight rail back into public hands is a key way we can do that.
“The demands on the state’s rail network have grown significantly and we want to make sure we’re moving as much by rail to and from our ports as possible.
“Rail is the most efficient way of moving our goods to and from the ports, and with greater control, we can ensure government investment promotes better use of the network.”
The state government has written to current rail operator Arc Infrastructure to advise of its intention to open negotiations to return the rail network back into public hands, as long as it is financially and economically responsible to do so.
“Some of the state’s biggest industries are seeking to increase their usage of rail freight to move goods, and the state government wants to support that,” Transport Minister Rita Saffioti says.
“Rail is critical to a more efficient freight network, and it also means less trucks on roads which is something local communities are always calling for.
“This is not an easy process, but it is necessary to support future job creation and the ongoing prosperity of our state.”
Greater public control would allow for greater and more targeted government investment, and increase usage of the freight rail network, delivering significant benefits including:
- Increasing the use of the rail network to meet the demand being driven by new resource projects and growth in output from the agriculture sector, supporting future WA jobs.
- Improved safety on roads, by reducing the number of trucks.
- Cost savings for industry through the more efficient movement of grain and commodities to and from the State’s ports, to ensure WA remains globally competitive.
- Ability to improve the frequency and journey times for regional rail services, like the Australind, with the Government being able to upgrade tracks, and build passing loops.
- Greater flexibility for regional communities, who have been prohibited and limited in relation to what activities they can undertake in close proximity to rail corridors.
- Greater involvement and potential partnerships with local WA businesses; and
- More opportunities for tourism investment, particularly tracks that are underutilised or under care and maintenance.
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