The WA Government’s plans to restore the rail freight network to public ownership has been welcomed by CBH Group. Photo: CBH

THE WESTERN Australian Government has pledged $8.3 million to advance plans to bring the state’s freight rail network back into public hands, as part of a broader package of freight rail and port infrastructure spending outlined in its 2025-26 budget released last week.

The funding will go towards delivering on a pre-election promise made by the returned WA Labor Government in January to begin negotiations to bring the state’s rail freight network back under public ownership.

It follows the government’s initial spend of $1.2M in the 2024-25 financial year to kickstart the process.

The plan has broad support from network user CBH Group and agriculture peak bodies who believe this move could improve network efficiency and access, but has drawn criticism from Nationals WA in Opposition.

Arc Infrastructure has held the lease on the network since 2000, with the agreement set to run for another 24 years.

In January, the WA Government said it had written to Arc to commence negotiations.

However, it remains unclear whether Arc has engaged with the proposal, with WA Treasurer Rita Saffioti telling a pre-election event in February she had received “no response” from the company.

In her budget speech on Thursday, Ms Saffioti reaffirmed the government’s commitment to the plan, but offered few details on how the transition back to public ownership would be carried out.

“[W]e also understand the need to invest in our freight rail system to support our farmers, industry and regional communities,” Ms Saffioti said.

WA premier Roger Cook and treasurer Rita Saffioti

“That is why we are working to bring our freight rail network back under government control, which will unlock greater economic opportunities.”

Port investments

Port infrastructure investment was a key feature of the budget’s capital spend, with $204M in new funding allocated to a suite of projects across the state aimed at securing the future of WA’s trade.

The funding for infrastructure projects included:

• $88M for refurbishment works at the Port of Fremantle;
• $20.3M to create a new tug facility at Victoria Quay’s J-Berth;
• $14M to construct First Point of Entry biosecurity infrastructure at the Port of Wyndham; and,
• $35M for resurfacing Utah Point Ring Road in Port Hedland.

The budget also earmarked funding for project planning and business-case development, including:

• $3.5M for the planning and design of new Berths 8 and 9 at the Port of Geraldton;
• $10.8M for planning and design work to renew berths at the Port of Albany; and,
• $500,000 to develop plans and a business case for upgraded passenger terminal facilities at the Port of Broome.

The Port of Wyndham works are anticipated to facilitate cotton exports out of WA, with the Ord ramping up production ahead of the opening of the region’s gin in August.

Any potential upgrades to the Port of Albany would also benefit grain exports out of the area as well as fertiliser imports.

Funding includes $17.4M of new investment across a range of initiatives that will support project delivery, community groups and the local environment.

Ports Minister Stephen Dawson said the investments demonstrated that the government understood the “significant economic and strategic role our ports play” in the WA economy.

“The trade that occurs in our ports is integral not just to our State’s economy, but for our national economy,” Mr Dawson said.

“Our ports handle more than half of Australia’s sea trade volume and facilitate more than $280 billion worth of trade each year.

“Through our Budget, the Cook Government is working to further bolster our port infrastructure, especially as trade grows and new demands emerge.”

Rail-freight programs

Outside of planning for a potential takeover of the freight network, the budget also featured some additional allocations for the Agricultural Supply Chain Improvements program.

The program consists of upgrading rail sidings and increasing freight capacity along key agricultural transport routes in the Wheatbelt and Great Southern.

The government has budgeted $46M for the Western Australian Agricultural Supply Chain Improvements program and $894,000 under the Grain Freight Upgrades program.

“In 2025-26, it is expected that the rail sidings will be completed, with further upgrades and the design and procurement of materials for the Midland Line to progress,” budget documents said.

A further $119M is projected to be spent in the 2026-27 budget under the program.

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