The WA Government is looking to start talks with rail operator Arc Infrastructure. Photo: stock
After 25 years of privatisation, the WA Government says it wants to nationalise the state’s freight rail network as demand surges.
Freight rail in the state was privatised in 2000 but recent growth in WA industries, particularly grain harvests and new gas and mining projects, means that demand is at a record high, the government says.
The existing lease agreement has 24 more years left to run but the government says there is little it can do to directly support industries reliant on the network.
Premier Roger Cook claims the move is all about diversifying the economy.
“Supporting the growth of our critical industries is a key priority … bringing freight rail back into public hands is a key way we can do that,” he says.
“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.
“Rail is the most efficient way of moving our goods to and from the ports. With greater control, we can ensure government investment promotes better use of the network.”
WA Transport Minister Rita Saffioti claims the decision to privatise the network in 2000 was “reckless” and failed to withstand the test of time.
“Some of the state’s biggest industries are seeking to increase their usage of freight rail to move goods. The government wants to support that,” she says.
“Rail is critical to a more efficient freight network; it also means less trucks on roads, which is something local communities are always calling for.
“This is not an easy process but necessary to … the ongoing prosperity of our state,” Saffioti says.
Cook says the government has written to current rail operator Arc Infrastructure to alert them of their intention to enter into talks with all options on the table including a staged nationalisation.
GOVERNMENT’S CASE
The government spelt out benefits that it sees from the move:
- catering for greater exports from new resource projects and the agriculture sector;
- taking more trucks off the roads;
- save on costs by allowing direct movement of grain and commodities to ports;
- increase frequency and hasten travel times for regional rail services, like the Australind, with government able to upgrade tracks, and build passing loops;
- give regional communities more freedom in what activities they can do close to rail corridors;
- increase tourism spending, particularly on tracks that are underused or under care.
