Electoral candidates in western Sydney and Newcastle face some stark policy choices about transport infrastructure that will have profound economic and social implications well into next century. Unusual in federal politics, the opportunity currently exists to make local politicians accountable for policy decisions before an election. Policy questions for candidates are:
Do you support the building of a dedicated freight rail line between Strathfield and the HawkesburyRiver before 2028, at a cost to Australia’s taxpayers of $4 billion? Do you support the building of a dedicated freight rail line between Glenfield, Badgery’s Creek and Newcastle along an outer western Sydney alignment before 2028, at no cost to Australia’s taxpayers? Do you support the building of an intermodal terminal on a portion of the 1700 hectare Badgery’s Creek airport site, immediately? Do you support the use of rail to move all containers between Port Botany and Badgery’s Creek? Do you support the relocation of container terminal operations from Port Botany to Newcastle, and the use of rail to move all containers between Newcastle and Badgery’s Creek, before 2028?
The freight carrying capacity of the Northern Sydney Rail Corridor will reach its limit by 2028. Additional capacity must be built before this. However, only one option is being considered by the NSW and Australian governments: building a dedicated freight rail line between Strathfield and the HawkesburyRiver. The line would occupy priceless rail capacity. The opportunity cost of not using all metropolitan rail capacity for passenger services is up to $1 billion a year.
The option of building the freight rail component of the Outer Western Sydney Road/Rail Orbital Corridor is not being considered by either government. Although work may be undertaken to identify and preserve corridor land, a freight rail line would probably never be built because of the more pressing need to recoup the investment in the Northern Sydney Corridor over the long term.
However, by building a dedicated freight rail line between Glenfield, Badgery’s Creek and Newcastle, there would be no need to build a dedicated freight rail line between Strathfield and the HawkesburyRiver. Two dedicated freight rail lines are not required.
An intermodal terminal can be built at Badgery’s Creek without compromising future airport options. There would be no need for the Moorebank intermodal terminal, with a saving to taxpayers of $970 million.
All containers would be moved by rail between Port Botany and Badgery’s Creek by extending the South West Rail Line by 10 km from Leppington, and adding freight.
Private investment funds would be used for financing construction of the dedicated freight rail line between Glenfield, Badgery’s Creek and Newcastle; Badgery’s Creek intermodal terminal and associated roads; and the Newcastle Container Terminal. By financing the projects collectively, this would enable a charge to be applied to the movement of containers and interstate freight that recouped all costs.
The Newcastle Container Terminal site can be leased by the Australian government for the same amount as the NSW government expects to receive for selling the lease to Port Botany Container Terminal. The lease, less development costs, can be on-sold to the private sector.
The Port Botany Container Terminal site can be leased for airport purposes. These funds can be applied to the cost of building new facilities at Newcastle and compensating, if required, the current tenants of Port Botany Container Terminal.
When containers are transported by rail to an intermodal terminal Badgery’s Creek, the advantages of road transport can be employed on short journeys and point-to-point distribution from warehouses and suburban distribution hubs. But there would be no need for toll-paying, container-carrying trucks on the M5 East. In addition, there would be no need for trucks to carry goods from Sydney to Newcastle, if containers were unloaded at Newcastle.
Is it better to transport containers by rail or by road?
Should container transportation pay for railway or roadway? (208)
