TWO months ago, when the state government announced a $350 million upgrade of Western Australia’s grain freight network, it appeared that a long-running debate had finally been settled. But industry remains divided over how the money should be spent.
TWO months ago, when the state government announced a $350 million upgrade of Western Australia’s grain freight network, it appeared that a long-running debate had finally been settled. But industry remains divided over how the money should be spent.
The WA Farmers Federation is lobbying to keep more rail lines open, calling for investment from the government in ‘tier three’ rail lines, which would be put on “care and maintenance” under the state’s refurbishment program.
From the opposite corner are calls by the Pastoralists and Graziers Association of WA for a substantial government investment in roads, which it argues are more vital to the whole of the farming community.
The federal government’s $135 million has committed to the refurbishment of the grain freight network, on top of the state government’s $178 million and additional funds from industry.
CBH Goup acting chief executive officer Allyn Wasley said the collective contribution by the federal and state governments would enable significant upgrades and much-needed maintenance to the rail network after decades of neglect.
Following the federal government’s announcement, WAFarmers president Mike Norton called for funding to be allocated to tier three rail lines.
This is despite recommendations made by the Strategic Grain Network Committee in 2009 that deemed tier three lines were unviable because transport volumes were low and rail costs were already uncompetitive with road transport.
“Now the task at hand is twofold. Firstly, investment in tier three rail lines, which to date have been largely neglected, must occur,” Mr Norton said.
“Secondly, it is essential that WAFarmers and the rest of the grains logistics industry, along with the government, work together to ensure this investment is maximised and the greatest possible efficiency improvements achieved.
“Unless investment is also secured for tier three rail lines, local government will be sent to the wall as they try to maintain a tired road network.
“Metropolitan roads will also not be adequate if the freight task from tier three areas moves to road.”
PGA Western Graingrowers chairman Rick Wilson has praised the state government’s investment package as a practical outcome that recognised 50 per cent of WA’s grain crop moved by road. He said the investment in both road and rail infrastructure was vital for the future of the industry.
“Viewing the freight network in its entirety and committing to positive, constructive, and realistic investment is a win for everyone in our state,” Mr Wilson said.
“Farmers will seek the least-cost pathway, and rail has to compete with road.”
WAFarmers disagrees, and together with 16 Wheatbelt shires has formed the Wheatbelt Railway Retention Alliance, which it has said was a bid to keep grain on rail and prevent local roads from being inundated with grain trucks.
A spokesman for the alliance, York shire chief executive officer Ray Hopper, said the effect of closing tier three rail lines would be felt beyond country areas.
“An average of 93 per cent of all grain transported from rail sites in the Wheatbelt area is currently transported by rail, but ... this figure will plummet with rail rationalisation by the state government and will have disastrous consequences for city road users,” he said.
“The withdrawal of Wheatbelt tier three rail lines from service will result in all tonnes from this area being delivered from bins to port by road. This equates to an average increase of 57,000 extra truck movements each year.”
CBH Group said the federal and state governments’ funding package was a catalyst for its recent move to invest up to $175 million in rolling stock for the above-rail network.
“Last month we announced our decision to award the long-term grain rail contract to experienced US transportation group Watco Companies,” Mr Wasley said.
“Last week, we issued a request for proposal to potential local and international suppliers of locomotives and we are working towards engaging a supplier in coming weeks.
“This decision has resulted in the introduction of competition for the first time in the WA grain rail freight market and the first major investment in new rolling stock for decades.”
The decision on how the upgrade money is to be spent will be made by Transport Minister Troy Buswell.
