Inland Rail aims to cut freight transport costs

Inland Rail’s recent projections demonstrates freight transport costs could be reduced, with a potential maximum of $213 million per year.

This would lead to gigantic savings for industries and businesses that use this particular line. As a result, this could lead to a significantly positive development of regional Australia’s growth.

The Commonwealth Scientific and Industrial Research Organisation (CSIRO) unveiled its Inland Rail Supply Chain Mapping Project this week, revealing that they discovered a transition from road to Inland Rail could have a gigantic impact in decreasing the funds used to relocate 22 million tonnes of freight per year.

Potential savings would cater to over 12,000 supply chains and 94 commodities which entail coal, steel, grains, vehicles, horticulture and livestock.

Businesses which survive on road-based supply chains will get the most out of these cost reductions and will record a significantly more lucrative profit, saving an estimated $80.77 per tonne and more importantly, $179 million per annum. It is expected that the savings accumulated from this timely shift of funding will only grow as Australia’s freight task expands with time.

Other savings projected for intermodal freight consist of an average of:

  1. $90 per tonne (44 per cent) reduction along the entire route from Melbourne and Brisbane;
  2. $184 per tonne (47 per cent) reduction between Brisbane and Parkes, connecting to Perth;
  3. $48 per tonne (22 per cent) reduction from Brisbane and connecting to Adelaide; and
  4. $62 per tonne (31 per cent) reduction for regional intermodal freight to and from major metropolitan centres and ports.

In addition, a whopping 40 per cent decrease in transport costs for freight traveling to Queensland, a significant 31 per cent reduction for New South Wales, as well as a 37 per cent drop for Victoria have all been projected from the model.

Minister for Infrastructure, Transport and Regional Development, Barnaby Joyce, and the current Deputy Prime Minister contends that these are the exact reasons as to why the Government has given the green light to make the prospect of this project a reality.

Joyce firmly contends that “Inland Rail gives us the greatest opportunity for boosting economic development in regional areas, which is why we are delivering the project as quickly as possible.”

He asserts that “Shifting freight from road to rail will drive down the cost of transporting goods and commodities to ports and better facilitate the sale of products, like coal, that underpin our standard of living.”

Joyce is adamant that “Reducing freight costs for businesses and industries along the route means they can expand and hire more Australians, helping regional economies grow into the future.”

The Deputy Prime Minister reassures that “With the enhancements that Inland Rail will bring to our national freight network, these savings will be felt by supply chains reaching as far west as Perth and all the way down to Tasmania.”

Joyce is proud to state that: “Our Government had the vision to deliver Inland Rail and this modelling further reinforces why we must continue on with the job for the benefit of all Australians.”

Simon Birmingham, the Finance Minister and Senator, adds that the connection and access to Inland Rail’s quick, dependable and inexpensive freight services would positively impact the value for the industry all around Australia. This would enable our Government’s plan to increase productivity and competitiveness to become a reality.

Birmingham claims that “CSIRO’s modelling shows how Inland Rail could slash transport costs for more than 90 commodities across Australia.”

He asserts that “This highlights the significance of building a national freight network that gives producers and businesses better access to domestic and international markets at competitive prices.”

The Finance Minister said: “Thanks to our Government’s $14.5 billion investment in Inland Rail we are on track to deliver the fast and reliable freight service Australia needs to back our resilient economy.”

When Inland Rail is ready to begin operations, they will remove 200,000 trucks off the road each year, or 150 B-doubles per each train venturing between Melbourne and Brisbane.