The Western Australian state government has announced its intention to start negotiations to regain control over the state’s freight rail network, which has been under private management for nearly two and a half decades.
The network was privatised under a 49-year lease in 2000. However, this privatisation has presented limitations, the state government claimed, particularly in supporting industries dependent on rail transport.
Bringing the freight rail network under government control is aimed at addressing the increasing demands from key sectors such as agriculture and the need to increase rail usage to support new resource projects.
Public ownership is expected to facilitate more strategic government investments and enhance the network’s efficiency, according to the government.
This could lead to a multitude of benefits, including job growth, improved safety by reducing road traffic, and cost-effective transportation for commodities.
Western Australia’s Premier Roger Cook said: “This is all about supporting our plans to diversify our economy, unlock future local jobs and retain WA’s economy as the strongest for future generations.
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By GlobalData“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.”
The transition to public ownership is also anticipated to result in better regional rail services, with upgrades to infrastructure and more frequent journey times.
This could offer better flexibility for regional community activities near rail corridors and open up further opportunities for local businesses and tourism.
Arc Infrastructure, the current operator, has been formally notified of the government’s intent to enter negotiations.
The Department of Transport will spearhead the negotiations, with a final decision depending on the economic and financial viability of the move.
Western Australia Transport Minister Rita Saffioti said: “Rail is critical to a more efficient freight network, and it also means [fewer] trucks on roads, which is something local communities are always calling for.
“This is not an easy process, but necessary to support future job creation and the ongoing prosperity of our state.”
In 2022, Western Australia secured A$200m ($141.9m) in government funding for its regional rail freight network, including A$160m ($113.5m) from the Commonwealth and A$40m from the state for four projects.
