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 taken another step towards returning the state’s rail freight network to public control by awarding a $1.7-million contract to Ernst & Young Perth.
According to tender details, EY will provide due diligence advice on financial, tax, accounting and other related services under contract.
The WA Government has committed about $9.15M so far as part of planning and due diligence with the ultimate goal of buying back the rail network.
A total of $1.2M of this came during the 2024-25 financial year with the remaining $7.95M pledged in the 2025-26 budget released in June.
The due diligence tender, administered by the WA Department of Transport and Major Infrastructure, closed in May.
The WA Government first announced plans to bring the state’s freight rail network back into public hands in January.
It was met with broad public support from network user CBH Group, peak agricultural bodies, and the Federal Government, but drew criticism from the Nationals WA.
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.
During the WA Government budget estimates process held last month, Minister for Transport Rita Saffioti answered questions about the progress of the rail buy-back project.
Ms Saffioti said that commercial advisors had been employed “to support us in providing very detailed commercial and legal advice about bringing the rail network back under government control”.
“As the member would expect, this is a very sensitive matter,” Ms Saffioti said.
“It requires very detailed and thorough analysis and advice from both a legal perspective and an evaluation and commercial perspective.
“Initial advisers have been appointed.
“We are working with that advice and getting further information about how we proceed.”
Ms Saffioti acknowledged that the process was “not going to be easy”.
“It is going to be very complicated, but we think it is worth doing to support the farming community and the resources industry, and to make sure we can manage our road network across the regions.
“We know that decisions have been made that have sometimes meant we have not put freight and rail where we should and that we are sort of an interested bystander as negotiations happen between the privatised rail owner and industry.
“We believe this is fundamental to the economic growth of the state to seize opportunities for not only the farming industry but also the resources industry, which ensures that we can get onto the rail network stranded assets that may be more costly to take on road.”
Possible ARTC, commercial partnership
Nationals WA leader Shane Love asked Ms Saffioti whether commercial options or partnerships with Australian Rail Track Corporation (ARTC) were being considered as part of the planning process.
Ms Saffioti said the “number-one objective” of the government was to “gain control”.
She said discussions from farming communities made it clear that regarding any financial gains from owning the network “they would rather those profits stay in WA than go offshore”.
With regard to ARTC involvement, Ms Saffioti pointed to funds committed by the Federal Government to improve the east-west line, an ARTC-controlled corridor which connects Sydney and Perth.
“The Australian Rail Track Corporation, which owns and operates that rail line, has now been given significant money to help support that.
“With ARTC being a national company, there could be some huge benefit for it and us, but nothing has been concluded.
“There are a lot of interested parties who want to be part of this because they can see this being a nation-leading generational decision in Western Australia that will benefit the economy and the people of regional towns for decades to come.”
According to figures published on the WA Government’s website, about 7.6 million tonnes (Mt) of grain was hauled on the rail freight network during 2024, out of a total of 51.3Mt.
Grain was the fourth-largest commodity segment hauled on rail, behind alumina and related products at 16.7Mt, iron ore at 14.6Mt, and general freight at 11Mt.
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I come from a long line of railway workers and still remember all the fantastic trips to different towns in the country. Let’s hope the railway goes back to the state and we can open all those no longer used lines for people like Hotham Valley and other operators. This could be a tourism goldmine as our state is growing so strongly. It’s only Labor governments that fix railway. The Liberals just close them down! Well done.
Yes, I wish to see the WA rail system under WA govt control again, not only to benefit farmers and miners but to fulfill a much-needed undeveloped tourist economy. About 1000 people are in favour of an Albany passenger train again: 1. Perhaps a weekend train to start for children go home from private schools in Perth; 2. Weekend shopping in Perth for all the towns on the way; 3. a licensed tourist jazz carriage for those liking entertainment, serving the best Mt Barker wines; 4. elderly not wanting the road trip in their car any more; 5. Plus passengers wanting the new experience of a train ride to Perth.
A resurrected track from Narrogin to Pinjarra would give more oportunity for towns along the track to make use of it. Ore trains from Boddington could make the resurrected track help pay for itself.
Have worked on the railways since 1968 have noticed the deprivation of the track and everything else over the years and also the increase in road transport causing excessive damage to roads. I truly hope that the Government will take back the railway system and return it to its original form.
If a state government takeover of the rural rail network will result in a major reduction of heavy vehicle grain movements on our roads, then I’m in favour. Rail is the safest and most economic way to move grain when compared to the public safety risks associated with huge double trailer trucks hurtling along, and tearing up, our narrow regional roads
The roads are getting smashed and the 4 trailer side tippers are unsafe when overtaking .
All grain should be on Rails .