The Western Australian Government is planning to begin negotiations to bring the freight rail network back into its control, after 25 years of private ownership.
Under the existing lease agreement, which has another 24 years to run, the Western Australian Government says it has little capacity to directly support key industries that make use of the state’s freight rail network, or deliver important policy objectives.
The state government has written to the current rail operator, Arc Infrastructure, and will make a final decision if it’s economically and financially responsible to move forward with taking back control.
Premier Roger Cook says the move is about supporting the government’s plans to diversify the state’s economy, unlock future jobs, and retain Western Australia’s economy.
“Supporting the growth of our critical industries is a key priority for our government and bringing freight rail back into public hands is a key way we can do that,” Cook 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.”
The state government says greater public control would allow for increased and more targeted investment, as well as an increase in use of the freight rail network.
As a result of greater public control there would be an increase in the usage to meet the demand being driven by new resource projects and growth in output from the agriculture sector, which supports future jobs, as well as cost savings for industry through the more efficient movement of grain and commodities to and from the state’s port.
The government notes some of other benefits include greater involvement and potential partnerships with local businesses and more opportunities for tourism investment.
Transport Minister Rita Saffioti says the state’s biggest industries seek to increase their use of freight rail to move goods, and the government is supporting that.
“Rail is critical to a more efficient freight network, and it also means less trucks on roads, which is something local communities are always calling for,” Saffioti says.
“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.”
Write to Aaliyah Rogan at Mining.com.au
Images: WA Department of Transport
