While the rail industry did not find the budget entirely positive, there are many good points for rail in the Budget.
ARA: The Good, the Bad, and the Unknown
The 2013 Federal Budget has delivered largely positive outcomes for commuters, while maintaining key investments in the freight network.
“Substantial and long-awaited construction funding for Brisbane’s Cross River Rail, Melbourne’s Metro Rail and rail projects in Perth is fantastic news for commuters,” Australasian Railway Association (ARA) CEO Bryan Nye said.
“It is good to see that the government, even in tough economic times, recognises the importance of infrastructure investment for the future of the nation and that rail is a critical part of that investment.”
Funding committed to Brisbane’s Cross River Rail represents the most significant step forward in this project to date. With Brisbane’s inner city rail network reaching its absolute capacity within the next five years, this priority ranked project is the only medium to long-term solution available that will ensure Brisbane’s entire transport network doesn’t grind to a halt within the decade.
“However, with the $715 million on the table for Cross River Rail being conditional on both a matching contribution from the Queensland Government and significant private sector investment, the project isn’t across the line just yet.
“With federal funding now in the picture, this could be the best opportunity the Queensland Government will ever have to step up and ensure this project gets under way,” Mr Nye added.
More good news in the budget is the $500 million contributed to a rail project in Perth: either a light rail network within the city or a rail link to the airport, pending business cases being put forward to Infrastructure Australia.
With regards to freight, funding towards The Advanced Train Maintenance System (ATMS) is a significant technological advancement that will extract greater efficiencies and increase productivity on our interstate rail network. Industry will also be pleased that inland rail also remains on the agenda, a project that would take up to 7 hours off a Brisbane to Melbourne journey as well as moving freight from trucks to rail in line with community sentiment.
“The new funding towards ATMS, as well as upgrades to rail infrastructure to Port Botany and the ongoing work at the Moorebank Intermodal Terminal will create broader economic advantages that benefit everyone. They aren’t sexy, but they are needed”, added Mr Nye.
Measures in the budget to foster more private sector investment in nationally significant infrastructure are a much needed next step. The proposed new special advisory function within Treasury that will undertake this work is welcomed, but their effectiveness can only be measured by whether they can hit the ground running and begin delivering real outcomes sooner rather than later.
The rail industry also looks forward to 2014, when the temporary handicap that rail was given in relation to road transport under the carbon pricing regime will expire.
With regards to high-speed rail, the ARA looks forward to continuing to work with government in developing this project.
“Given the significant upfront costs, no one was expecting it to be a headline item, but funding towards at least corridor preservation would have been helpful to the project’s long term future viability,” Mr Nye continued.
There is also a significant unknown quantity in this budget- the $3 billion investment into the Melbourne Metro Rail project. As the federal funds are conditional on a matching commitment by the Victorian Government, the project doesn’t look likely to begin construction in the short to medium term.
“With the Victorian Government last week indicating a $10 million commitment to Melbourne Metro, they are far short of the $3 billion the Federal Government is asking.
“As the Victorian Government’s own Network Development Plan released in March this year shows, this project is sorely needed within the next 10 years to ensure Melbourne’s rail network can continue to meet demand,” he concluded.
Significant development: ARTC
The Australian Rail Track Corporation (ARTC) has welcomed further investment by the Australian Government outlined in the Budget, to build on existing infrastructure and rail technology improvements that will continue to transform the movement of rail freight across the country, CEO John Fullerton said.
As part of Nation Building 2 commitments, the government has allocated a total $125 million in grant funding to the ARTC to support the roll-out of ‘next-generation’ train signalling technology, the Advanced Train Management System (ATMS), and to build upon improvements to the Port Botany rail precinct and undertake detailed planning around enhancements to the Southern Sydney Freight Line (SSFL) and Metropolitan Freight Network (MFN) that would support the Moorebank Intermodal Terminal.
“This investment by the Federal Government will drive further productivity improvements to the national freight network particularly between our major capital cities, ports and distribution hubs,” Mr Fullerton said.
The funding for planning work around rail infrastructure to support the Moorebank Intermodal Terminal will include concept development, in-depth analysis and design of potential enhancements to the corresponding rail corridor.
“This preliminary planning will lay the foundation for works to increase the productivity of the terminal, as well as options to encourage modal shift from road to rail for freight travelling between Melbourne, Sydney and Brisbane and from Moorebank to Port Botany,” Mr Fullerton said.
ARTC has also received funding to embark on the third stage of improvements to the Port Botany Rail Line Upgrade program.
Port Botany Rail Line is a critical section in the national rail network that serves import and export traffic to and from Port Botany as well as many other export and domestic rail markets, including interstate intermodal, steel, export and domestic coal, grain and minerals, and building products.
The Stage 3 works will build on the rail network leased by ARTC and deliver infrastructure improvements that bring the line up to a high-quality standard so it is fit for the purpose of carrying the heavy volumes of domestic, import and export rail traffic that use this corridor.
The Port Botany line supports the heaviest volumes on the ARTC network outside the HunterValley, and this investment will support the $40 million the Australian Government has committed to the $80 million Port Botany Upgrade Program to be delivered by the NSW Government.
“Investing in transport infrastructure and increasing the rail network’s capacity to shift ever larger volumes of trade into and out of Australia’s major international gateway ports, intermodal terminals and between our major cities helps promote growth in the overall economy, which is good for the whole nation,” Mr Fullerton said.
“The investment creates jobs, reduces congestion and in encouraging modal shift from road to rail, it supports sustainability through a reduction in greenhouse gas emissions and impacts on urban living.”
Mr Fullerton said in addition to the three funding commitments on the ARTC network, the company welcomed the government’s $300 million commitment to pre-construction work for the Inland Railway which is a sensible step towards providing for Australia’s future freight requirements.
“The ARTC is determined to continue making rail even more competitive and restore it to its rightful place at the heart of this nations transport system – and the Australian Government is to be congratulated on its ongoing support and commitment to growing this mode of transport.” (227)
