Rail Branch Lines

NSW Farmers' Association is concerned that if current State Government investment levels are maintained, the nine remaining restricted rail branch lines will deteriorate to such an extent that they will be forced to close due to safety concerns. The closure of four lines for safety reasons in 2005 and three more in 2009 exemplifies these concerns. If this occurs, farmers may be forced to pay higher transport costs and the 48,000 trucks required to transport this freight will cause increased road damage and road safety issues.

NSW Grain Freight Taskforce Review

Above Rail Branch Line Operations

On the 29 May 2009 it was announced that an arrangement between the NSW State Government and GrainCorp involving the transfer at no cost of eighteen 48 Class locomotives and 180 wagons to GrainCorp. These trains will be used to consolidate grain from silos on the branch lines into sub-terminals, for transfer to main line trains to the Newcastle and Port Kembla port terminals. As part of the Agreement GrainCorp will be obliged to service grain storage sites managed by other grain handlers on these branch lines.

• The Restricted Grain Lines make up 24% of the NSW Rail Network and move more than 3 million tonnes of grain per year. They transport more than 60% of annual NSW grain exports valued at approx $350million and provide approximately $10/tonne freight advantages over road transport.
• The Bureau of Transport and Regional Economics Road estimates that road damage costs are reduced by nearly $5,000 per train trip per train. If grain is diverted to roads, Councils would face this cost to build, upgrade and maintain roads in their area, leaving rural communities facing higher rates.
• If the State Government closes all restricted rail branch lines in NSW, an average of 48,000 trucks would be required to transport this grain each year.  When compared to rail this would result in an additional 3,000 tonnes of atmospheric CO2, 1,600 million additional litres of fuel and $337million in road maintenance costs.
• NSW Farmers' Association believes that the rail lines need to be upgraded to an 81 class standard to provide weight and speed efficiency gains, long term certainty for industry and the appropriate incentives so that the asset is more attractive for private investment and use. The cost of this upgrade is estimated to be $245million.

Information

• Briefing Notes