
The WA Government’s plans to restore the rail freight network to public ownership has been welcomed by CBH Group. Photo: CBH
CBH GROUP has backed the Western Australian Government’s recent announcement to begin negotiations to return the state’s rail-freight network to public ownership.
The key rail network user said it welcomes any possible new investment in the infrastructure, and any opportunity to increase the amount of grain transported on rail.
Last week WA Transport Minister Rita Saffioti and Premier Roger Cook announced the government’s intention to negotiate with lessee Arc Infrastructure to return the network to public ownership.
The freight rail network was privatised in 2000, with the lease due to expire in 24 years.
Ms Saffioti said under the agreement, the WA Government has little capacity to directly support key industries that make use of the WA’s freight rail network, or deliver important policy objectives.
“It was a reckless decision by the Liberal Government to privatise the freight rail in 2000, and the reality is the deal has not stood the test of time,” Ms Saffioti said.

WA Transport Minister Rita Saffioti
“Some of the state’s biggest industries are seeking to increase their usage of freight rail to move goods, and the State Government want to support that.”
Mr Cook said returning the network to public ownership would support “the growth of our critical industries”, such as grain production and exports.
“The demands on the state’s freight rail network have grown significantly, and we want to make sure we’re moving as much by rail to and from our ports as possible,” Mr Cook said.
“Rail is the most efficient way of moving our goods to and from the ports, and with greater control, we can ensure government investment promotes better use of the network.”
The WA Government has argued that greater public control would allow for greater and more targeted investment, and increase usage of the freight rail network.
It said this would benefits would include cost savings for industry through the more efficient movement of grain to ports, greater involvement with WA businesses, greater flexibility for regional communities, and improved road safety via reduced truck trips.
Rail change needed
CBH Group chief executive officer Ben Macnamara said the company had “long experienced challenges with the freight rail network that have adversely impacted rail users”.
“The lack of investment in the network by the below-rail operator over many years has negatively impacted the efficiency of rail transport across regional WA,” Mr Macnamara said in a statement.
“If structural issues are not addressed, the amount of grain tonnes that can be transported on rail will be limited, which ultimately leads to more tonnes on road.
“Transporting more grain on rail will not only improve safety outcomes for Western Australian regional communities but also increases the international competitiveness of WA grain growers.”
He said any investment in improving the network infrastructure would be welcomed by the company.
“CBH remains a long-term user of the freight-rail network in WA and supports any opportunity to improve strategic alignment between the owner of the network and its users, sustainable investment in the network to provide fit-for-purpose infrastructure, and fair and transparent access pricing.
“The State Government has commenced work on investment in the rail network via the Agricultural Supply Chain Initiative and has introduced legislation to improve access regulation.
“Improving the strategic alignment between the track lessee, Arc Infrastructure, and the users of the track is the next logical step in a long-term plan to improve the efficiency and access to the WA freight rail network.”
Ms Saffioti said the State Government has written to Arc Infrastructure to advise of the intention to enter negotiations to return the freight-rail network to public hands.
“This is not an easy process, but necessary to support future job creation and the ongoing prosperity of our state.”
The WA Government has said it will progress negotiations with Arc Infrastructure, and make a final decision if it is economically and financially responsible to do so.
The Director General of Transport will establish a team to commence negotiations, with the WA Government open to all options, including a staged return to public ownership.
Opposition calls out ‘hollow promise’
The Nationals WA have responded to the WA Government’s announcement, calling the proposal desperate and disingenuous.
Opposition Leader and Shadow Transport Minister Shane Love MLA said the uncosted commitment was nothing more than a hollow promise.
“Labor’s empty announcement offers no details on the cost to taxpayers, how it will be funded, or how it will facilitate the long-term management of the network for its various stakeholders, including our vitally important grain-freight network,” Mr Love said.
Mr Love said buying back the network was not the only solution to moving more freight from roads to rail.
“There are clearly changes needed to facilitate more freight on rail.
“This knee-jerk reaction to promise a buy-back without addressing that underlying issues does not provide a solution.”
Mr Love said current rail contracts were not set to expire for almost 25 years, with proponent ARC Infrastructure on record saying it will not hand back any part of the rail network.
“This makes the government’s announcement not only unrealistic, but misleading.”
Arc Infrastructure and its parent company, Brookfield Asset Management, declined to comment.
Source: WA Government, CBH Group, Nationals WA
HAVE YOUR SAY