Photo: GrainCorp

THE NEW South Wales Government has ruled out closing any operational grain rail lines for now, despite an independent panel report recommending a review that could lead to a potential consolidation of the network.

NSW Minister for Roads and Regional Transport Jenny Aitchison and Transport for NSW executives were grilled on the possibility of line closures at the Budget Estimates hearing on the Roads and Regional Transport portfolio on April 1.

The Nationals party Nichole Overall MLC asked whether the Ms Aitchison would “rule out closing any currently operational grain lines”.

Ms Aitchison said the NSW Government was “obviously trying to get more grain on to rail” but opted to take the question specifics on notice.

Later in the sitting, Ms Overall posed a similar question to Transport for NSW Asset Management Branch executive director John Hardwick.

Mr Hardwick said there was work being done to try and increase “grain movements across the state”.

He said there was “nothing in the optimising…about closing lines down”.

In response to the question put on notice, which was published last last month, Ms Aitchison referred to a report published by a panel undertaking a review under the Freight Policy Review Program.

The Freight Policy Reform Interim Directions Paper report came out last year, with feedback on the document closing on October 23.

“The panel has now completed its final report which is with the Minister for Transport for  consideration,” Ms Aitchison said.

“At this stage, and throughout the review, there has been no indication that there is any proposal to close operational rail lines.”

Grain line optimalisation

The NSW Government announced the Freight Policy Review Program initiative in January 2024.

It tasked a panel, consisting of Kerry Schott, Lucio Di Bartolomeo and Hermione Parsons, to examine the state’s freight network and identify identify short, medium and long-term actions to improve the system.

The panel reviewed all facets of the freight network, including rail, road, intermodal, and port facilities as well as workforce, decarbonisation, and strategic land-use considerations.

The final directions paper made several recommendations regarding the grain freight task and made several directives regarding the rail system.

It recommended the government review the rail network and consult with industry with investment directed lines which “offer net benefit to the community”.

The paper made direct mention of closing 3139km of non-operational lines, which it said now exceed operational lines at 2386km.

“The maintenance costs for these lines cannot be justified,” the paper said.

“These lines should be closed, with savings directed to local roads that feed larger more effective silos on the main rail lines, which can service domestic mills and export terminals on the Australian east coast.”

However, the panel also recommended that the government look at “underutilised” lines as well as the non-operational ones.

“Where there may be grain lines that are not productive, alternative freight arrangements should be utilised in a dedicated, integrated logistics chain.

“In these cases, consideration should be given to identifying whether alternative arrangements outside the current regulatory settings would deliver a net benefit to the community.

“Closing disused, or underutilised, rail lines is a lengthy regulatory process and often controversial due to community concern or hope that the rail line will become operational again at some point in the future.

“The panel is of the view that government should address this issue.”

Overall, the paper found the current grain freight task was based on an antiquated system of growers delivering “a load of grain, from farm to silo and back to farm, in one day using horse and dray”.

“It is time to design a road-rail network that optimises the collective capabilities of the 21st century.”

These recommendations are unlikely to meet with industry support, with the NSW Farmers response to the paper opposing closures of “any rail lines relied on for the movement of grain”.

“It is incongruent for the Directions Report to simultaneously seek to increase resilience in the grain transport network AND further restrict the options available to farmers to transport grain by recommending that grain lines close,” NSW Farmers said.

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