Grain freight money finally gets delivered

In a show of support for the local grain industry, Premier Colin Barnett this week announced a $178.8 million investment package to boost the WA grain freight network.

With previously committed State funds, it brings the total investment in the network to $352m over four years.

The package includes $187.9m for re-sleepering works and rail siding upgrades on the State's Tier 1 and Tier 2 grain freight lines, $118.3m for improvements and maintenance to State and Local Government roads throughout the Wheatbelt, $14.6m for a transition assistance package to ensure rail transport remained competitive with road until rail upgrades were finalised and a further $500,000 to complete a rail study in relation to the future Avon to Albany line near Brookton to Kwinana.

The $178.8m of additional funding which cabinet approved will unlock a further $135m of Commonwealth funding from the Federal Budget in addition to $50m of interim funds announced earlier this year.

The Federal funds were allocated in this year's Commonwealth budget and funding from the State Government is new money which is consolidated revenue set aside for key infrastructure obligations separate from Royalty for Regions.

Road upgrades will take place from Cunderdin to Quairading, Trayning to Kellerberrin and beyond Bruce Rock, Merredin to Nungarin, Brookton to Yealering and south of Corrigin toward Narrogin and Kondinin to Narembeen.

Rail upgrades will include lines from Mclevie to Albany through Goomalling, York, Brookton, Narrogin, Wagin and Katanning, Goomalling to Kalannie, Beacon and Mukinbudin and Wagin to Hyden and Newdegate.

"This Government supports the agricultural sector and our economy," Transport Minister Simon O'Brien said when announcing the funding.

"It's also a way to support Wheatbelt communities and avoid adverse impacts in the Perth metropolitan area itself."

Mr O'Brien said the funding would make the logistics chain in WA as productive as the Government could possibly make it and credited WestNet Rail, CBH, the Australian Rail Group, WAFarmers, the Pastoralists and Graziers Association of WA and the Federal Government for the development of what will be an effective grain rail network.

"We're working to keep the largest part possible of our grain on rail and off our roads," Mr O'Brien said.

"The longer term project needs to be investigated now so we can position it well into the future.

"Grain contributes significantly to the WA economy, our farms produce on average about 10 million tonne a year, the vast majority of which is exported.

"WA is the greatest grain exporting State in all of Australia and even though this year's crop is going to be way down in most areas, in future years we will need an enlarged transport logistics chain to make sure we meet the needs of good years as well as the bad."

Mr O'Brien said he wanted to make sure WA farmers could get their financial "lifeblood" to their export customers and investing in a couple of thousand kilometres of rail network would ensure that future.

There are 2100km of regional rail networks used in WA for grain freight and the funding package will aim to upgrade at least 1400km of those lines over four years (including this year).

Mr O'Brien said some sections of Tier 3 lines in WA had already fallen into disuse and there would be some others that wouldn't be targeted for upgrades or redevelopment.

"We won't actually be closing any rail lines but at this time it's not appropriate to be spending taxpayer dollars on upgrading lines for which there are no customers," he said.

"What we are trying to do is make sure the vast bulk of the network is fully fit for purpose and is productive."

Mr O'Brien guaranteed that communities affected by the closing of Tier 3 lines would still have access to the Transitional Assistance Package (TAP) until local roads were made "up to scratch."

He said TAP payments would continue and further funding would take care of the payments over the next few years to make sure there was time to upgrade roads in the seriously affected areas.

"You can spend a vast amount of money on building road and rail and all sorts of things but we have to do it in a way that's balanced and meets the needs of the taxpayer considering all the other things we have to spend money on," he said.

"The package we've announced today will guarantee the future of the grain rail network, it will enable it to be used and it will enable us to deliver the vast majority of grain from harvest to port by rail.

"The amount of money being allocated now, although large, is about right."

No money has been specifically allocated for Tier 3 rail lines throughout the Wheatbelt and Mr O'Brien cited WestNet Rail as the "custodians" of those lines.

"WestNet Rail is responsible for the care and maintenance of those lines," he said.

"The care and maintenance package is a few million dollar a year but that's something WestNet has budgeted for and not us."

Agriculture and Food Minister Terry Redman said WA produced some 40pc of the grain that comes out of Australia each year.

"The investment decision that has been made today supports the contribution the grains industry makes to WA," he said.

"It comes on the back of significant investments made throughout regional WA and the the areas being affected by the current dry season.

"So far nearly $400m has been put into rural communities in WA and this not only shows our commitment to regional Australia, but particularly shows our commitment to the farming industry in WA."

Mr Redman said the grain freight network funding would ensure a robust grain rail freight network which would provide freight at a lower cost for farmers, get grain to export destinations with efficiency and enhance competitiveness with international markets.

"This season has had a significant impact on the incomes in our rural communities and I'm told it could be upwards of $3 billion.

"This is a half marathon, it's not a sprint to the finish line and the impacts will go well into next year."

CBH manager of land logistics Matt Mews said he was very happy with the Government's announcement.

"It's a great opportunity for growers," he said.

"We're really keen to be involved in sorting out the priorities and working out where we go with maintenance and upgrades in the future for our growers.

"CBH has been heavily involved in Strategic Grain Network Review and now it's a matter of waiting to find out the rest of the details."

Mr Mews said CBH wanted to ensure growers got the "best bang for their buck" out of the new funding.

"We're looking at above rail options and the money allocation certainly provides more competitive options in that sense," he said.

WestNet Rail general manager Paul Larsen was happy to see the Government implement its recommendations from its own report.

"Fourteen hundred kilometres out of the 2100km of lines used for grain freight will be upgraded," he said.

"Two hundred kilometres out of the 700km not being upgraded is non-operational (Gnowangerup and Nyabing lines) and grain is transported via Chester Pass Road to the port in Albany.

"The remaining 500km are Tier 3 lines and it has been recommended that money shouldn't be allocated to that.

"For growers the new funding means they get their product to market safely, reliably and efficiently.

"The reality for Tier 3 lines is we have a contract with the State Government that says if it's deemed un-economical for WestNet to run the lines the Government won't make the necessary investment."

The State and Federal funds announced at the start of the week brings the total Government investment in the grain freight network to $352 million over four years.