Arc Infrastructure welcomes the announcement in last night’s Federal Budget of more than $1 billion from the Australian Government and the Australian Rail Track Corporation (ARTC) to improve the resilience of the interstate freight rail network.
This critical investment comprises a $540 million funding package by the Federal Government and additional funding commitment of more than $500 million by ARTC via its Network Investment Program.
The funding will ensure the interstate freight rail network is more resilient and reliable in the face of increasingly significant and more frequent outages due to severe and extreme weather events.
While the funding will not be directed to Arc Infrastructure’s network, the infrastructure upgrades to the more vulnerable parts of the ARTC network east of Kalgoorlie will benefit the resilience and reliability of the entire east-west rail corridor.
The $540 million investment from the Australian Government will include $140 million for culvert upgrades to increase flood resilience from one-in-100-year to one-in-13-year events in South Australia, Western Australia and New South Wales, $100 million for the replacement of 47kg rail with 60kg rail to support larger trains between Tarcoola and Kalgoorlie in WA, $150 million for track rehabilitation and operational upgrades between Albury and Sydney and $150 million for the upgrade of the Maroona to Portland Line in Victoria.
The critical east-west freight rail corridor has been out of service due to flooding events on several occasions in recent years, causing major strain on the supply of essential grocery items and food supplies to Western Australia and adding to cost-of-living pressures.
Arc Infrastructure Chief Executive Officer Murray Cook said improving interstate rail resilience and reliability was critical for the State.
“About 80 per cent of goods coming into Western Australia are transported by rail, making our State extremely reliant on the east-west rail corridor and vulnerable to the impacts of extreme weather events.
“Most recently, the east-west line experienced a three-week outage in March due to flooding on ARTC’s network in Rawlinna, about 400 kilometres east of Kalgoorlie. These outages have a direct cost to industry, and wider economic costs to freight customers and the community due to disruption to the national supply chain.”
Australasian Railway Association Chief Executive Officer Caroline Wilkie said the announcement acknowledged how vital freight rail is to the national economy.
“This announcement recognises the critical role rail plays in supporting a strong national supply chain and the great economic and environmental benefits of having a more reliable and resilient network and getting more freight onto rail.
“Repeated severe weather events, particularly flooding, have had a major impact on rail freight and passenger services and resulted in significant disruptions to our national supply chain, with washouts on the east-west rail line alone costing the economy $320 million in 2022.”
According to the ARA, rail currently contributes up to 56 per cent of the national freight task and is forecast to meet almost three quarters of the growth in demand over the next decade.
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