Logistics

Grain set to benefit from regional NSW rail reform

Grain Central October 23, 2024

Two NSW programs will investigate solutions to rail and freight issues. Photo: GrainCorp

THE NEW South Wales Government is progressing two programs aimed at improving the regional rail network and overall freight task in the state.

Announced this week, the strategy which will create a pathway to a better regional rail network for freight and passenger services.

Named the Regional Network East/West Uplift (RNEW) Program, it has been established to create a 10-year investment pipeline and strategic plan for rail infrastructure in regional NSW.

This comes alongside existing work undertaken by an independent panel to investigate strategies and provide recommendations to better the road and rail freight network across NSW.

The panel recently released the Freight Policy Reform: Interim Directions paper, with several initiatives aimed at streamlining grain freight.

Minister for Regional Transport and Roads Jenny Aitchison said the RNEW Program will take a fresh look at where regional rail infrastructure investment is needed, and put evidence-based decision-making at the forefront of planning work to give industry, the NSW Government and the public a clear vision for the future of the network.

“The RNEW Program will allow us to better understand, manage, forecast, and deliver improvements on the state’s regional rail network, bringing projects under one banner to ensure a holistic and strategic approach,” Ms Aitchison said.

This will include data analysis, research into reliability and future capacity requirements, and evaluation of existing assets, as well as consultation.

The program will focus on opportunities to improve the Country Regional Network (CRN) which includes over 2300km of operational rail lines and is vital for transporting 2.7 billion gross tonnes of freight annually and delivering more than 120 passenger services per week.

Linkages between the broader regional rail network and existing projects such as Inland Rail, the Freight Policy Reform, and Regional Level Crossing programs will also be explored by the Program team, with potential efficiency improvements to be identified and considered.

Ms Aitchison said, once developed, the final investment strategy will complement Strategic Regional Integrated Transport Plans being developed across the nine regional areas in the state.

“This program will ensure any investment is made on the basis of robust planning and development to enrich our state.

“The program will enable the NSW Government to develop a long-term pipeline of infrastructure investment initiatives whilst being flexible and agile enough to address emerging network issues.”

The RNEW Program team will commence engagement with freight industry, rail operators and users, and local government in 2025, with the final strategy to be delivered in 2026.

Freight reform report progress

This announcement comes as public consultation closes on NSW’s Freight Policy Reform: Interim Directions paper.

Completed by an independent panel selected by the Minister of Transport, the document sets out the panel’s interim views on ways to reform the state’s freight task and includes strategies aimed at addresses issues with the grain rail network, rail access and the CRN management.

Panel members include Inland Rail review report author Kerry Schott, Australian Logistics Council chief executive officer and managing director Hermione Parsons, and Lucio Di Bartolomeo, who is the chair of both Health Infrastructure NSW and Australian Naval Infrastructure.

The interim paper highlighted the importance of collaboration between NSW, Queensland and Victoria on the grain-haulage task, especially given the support from both major political parties to complete Inland Rail.

“This should drive the development of a policy perspective, from those three jurisdictions, that is more aligned with industry view of the east–coast – which is as a single market, consisting of catchments, hubs, links and ports, rather than three jurisdictions with borders,” the paper said.

It emphasised the importance of a study currently under way between the states, iMove Cooperative Research Centre and Swinburne University to identify a possible Strategic East Coast Regional Grain Network with shared investment and risks.

The paper said that this collaboration could include opening up more opportunities for public/industry investment and line standardisation.

The panel identified the burden of keeping open disused or underutilised rail lines as an issue the NSW government should address.

“All existing rail assets should be reviewed to identify the networks that offer net benefit to the community and investment should be directed at those lines.

“[T]hrough this process the freight logistics chain should be examined for efficient grain movement.

A grain train loads at Old Junee. Photo: Transport for NSW

“This includes identifying where silos are located for rail transport, possibly after short truck delivery to those silos.

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

Country Rail Network concerns

The paper also called for reform to rail-access agreements, and investigations into a better, more streamlined system for managing the entire rail network.

It highlighted that rail-freight operators had described instances where the “level of service provided by the rail network managers is unacceptable”.

Three network operators currently manage the network: UGL Regional Linx, which manages and maintained the CRN; Australian Rail Track Corporation which manages and maintains the interstate network and the Metropolitan Freight Network; and Sydney Trains which manages and maintains the urban passenger network.

The CRN is mainly used for freight services and features several lines that are exclusively for the movement of bulk grain.

The panel recommended the NSW Government look to reduce the number of network managers by considering investigating “long-term options for operating the [CRN]”.

“The panel is of the view that three separate rail networks in NSW, all with their own managers and different requirements including service levels and safety, is a major stumbling block to a more coordinated and consistent freight network in the state.

“The obvious solution is to reduce the number of network managers and in the long term, confirm and implement arrangements that deliver the highest service level and represent greatest public value.”

The report also recommended the NSW Government should, in the short term, review the “current operating and contracting arrangements” for the CRN including the allocation of “appropriate service level measures”.

Public consultation closed for the Interim Directions paper today.

Feedback from the process will inform the final actions and recommendations.

This will guide the short, medium and long-term actions of the NSW Government, in collaboration with industry and the Federal Government.

Source: Transport for NSW

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