The Western Australian Government is set to commence negotiations to bring the state’s freight rail network back into public hands.
The freight rail network was privatised by the State Government in 2000, but with key Western Australian industries growing significantly in recent years, particularly record grain harvests, the demands on the network are at record highs.
Under the existing lease agreement, which has another 24 years to run, the Western Australian Government has little capacity to directly support key industries that make use of the state’s freight rail network, or deliver important policy objectives.
The Western Australian Government said 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 Western Australian jobs
- Improved safety on roads, by reducing the amount of trucks
- Cost savings for industry through the more efficient movement of grain and commodities to and from the state’s ports, to ensure Western Australia 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 Western Australian businesses
- More opportunities for tourism investment, particularly tracks that are underutilised or under care and maintenance
The State Government has written to the current rail operator Arc Infrastructure to advise of the intention to enter negotiations to return the freight rail network back to public hands.
Government will progress negotiations with Arc Infrastructure and will make a final decision if it is economically and financially responsible to do so.
The Director General of Transport will establish a team to commence negotiations, with the State Government open to all options, including a staged return to public ownership.
Western Australian Premier, Roger Cook, said, “This is all about supporting our plans to diversify our economy, unlock future local jobs and retain Western Australia’s economy as the strongest for future generations.
“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 freight 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.”
Western Australian Transport Minister, Rita Saffioti, said, “Some of the State’s biggest industries are seeking to increase their usage of freight rail to move goods, and the State Government want to support that.
“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 necessary to support future job creation and the ongoing prosperity of our State.”
