The state freight network is vital for primary industries such as agriculture and mining. Photo: Bahnfrend.
The Western Australia Government will begin talks to bring the freight network back into government hands after 25 years of private ownership.
The Cook Government is seeking to negotiate a return of the freight network to public hands, changing the current lease agreement, which still has 24 years left to run.
The government has notified Arc Infrastructure, the current owner, that it intends to enter negotiations to buy the network.
The freight network was privatised in 2000 by the Liberal National government.
The government states that the network faces high usage due to growing industries such as agriculture and mining.
It said it had little capacity to support these industries under the current agreement.
“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,” Premier Roger Cook said of the initiative.
“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,” Mr Cook said.
Some of the benefits proposed by the State Government include:
- Increasing use to meet demand driven by new resource projects and growth in the agricultural sector
- Cost savings for industry through more efficient transport
- Ability to improve the frequency of regional rail services
- Potential for partnerships with Western Australian businesses.
The government has emphasised that efficiency, more targeted investment, increased usage and safety are the outcomes desired by the government in the buyback scheme.
“Some of the state’s biggest industries are seeking to increase their usage of freight rail to move goods, and the State Government wants to support that,” Transport Minister Rita Saffioti said.
She also noted the buyback’s effect on safety on the roads by reducing truck numbers on the highway.
“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,” Ms Saffioti said.
The State Government has said it is open to a variety of options, including a staged return to state ownership.
