News

Media Release

15 November 2010 

State government funding of $178.8 million underpins upgrade of WA grain rail network

WestNet Rail today welcomed the announcement by the Western Australian Government of its $178.8 million investment in the state’s grain rail and road network.  This investment reflects the recommendations made in the government’s Strategic Grain Network Committee’s report, released earlier this year.

The Strategic Grain Network Committee, established by Minister for Transport Simon O’Brien, recommended that government funding should be made available for the resleepering of 1,265 kilometres of Tier 1 and 2 narrow gauge rail lines dedicated to grain.

As a result of this state funding commitment, it is now anticipated the Federal Government will honour its undertaking to invest $135 million previously budgeted for, which was contingent on the Western Australian government’s contribution.

“WestNet Rail is pleased with the State Government’s support to provide essential investment in the state’s grain rail network. This provides certainty to Western Australia’s grain growers and the industry players that support them, that grain freight can continue to be safely and efficiently transported to port via the rail network,” Paul Larsen, Chief Executive Officer of WestNet Rail said.

“WestNet Rail is committed to working in partnership with government, industry and the community to strategically plan and grow capacity in the state’s rail network, playing a vital role in protecting and growing Western Australia’s economy,” Mr Larsen added.

“A commitment, from both government and industry, to keep grain on rail is a long-term, visionary commitment to invest in the critical infrastructure that supports a $4.5 billion export industry and our vital regional communities,” Mr Larsen said.

WestNet Rail is an experienced rail infrastructure operator, managing around 5100km of rail infrastructure throughout the southern half of Western Australia including rail construction and maintenance, track access, train control and network safety on one of the State’s most important pieces of transport infrastructure.

25 June 2009

MEDIA RELEASE

WestNet Rail and Government working together to secure the future of the State’s grain rail freight network

WestNet Rail welcomes the State Government commitment today to work together with industry to determine the future of the Grain Rail Freight Network and to ensure the maximum volume of grain remains on rail.

Together the State Government and WestNet Rail have determined a process and timeline which will complement the review of the grain rail freight network being undertaken by the Strategic Grain Network Committee, initiated by the Hon Simon O’Brien MLC, Minister for Transport.

This process will see the Strategic Grain Network Committee identify the sections of the rail network that will be upgraded over the coming years with the financial support of government.

It is expected investment decisions will be made before the end of 2009 to give growers and the broader industry clarity and certainty for the future.

WestNet Rail has strongly advocated that keeping the maximum volume of grain on rail is in the best interests of the grain industry and the community. The Government’s support for the network, particularly in considering investment in specific lines, recognises this and will deliver a range of economic, social and environmental benefits in regional Western Australia.

WestNet Rail General Manager Paul Larsen said the commitment from State Government will give the grain industry certainty about the future of the Grain Rail network.

“WestNet Rail is pleased with the results of constructive discussion with the Minister's Office and looks forward to the Strategic Grain Network Committee providing clarity to industry about the future Government investment in the network before the end of the calendar year.”

“We are particularly pleased with the Government's decision to identify the Northam to Albany line as high priority for assessment for investment as this line is one of the most critical for growers to move their grain to port in a timely and efficient manner”.

“We anticipate a clear recommendation from the Strategic Grain Network Committee on funding for upgrades on the Northam to Albany line in the very near future,” Mr Larsen said.

WestNet Rail has recommenced train operations on the four lines that were suspended on June 15, with decisions about the long-term future of these lines to be considered as part of the work of the Strategic Grain Network Committee prior to the end of the calendar year.

Mr Larsen said that WestNet Rail would continue to work closely with the State and Federal Governments and with the Strategic Grain Network Committee to make a renewed assessment of the investment needs for the network and build a clear business case and strategy for the allocation of funds in future years to ensure the maximum volume of grain remains on rail.

WestNet Rail would like to acknowledge the strong support of participants in the grain industry in ensuring that there is a process in place with Government and industry to ensure that the maximum volume of grain remains on rail.

To find out more on this issue visit www.grainonrail.com.au.

ENDS

MEDIA RELEASE 

 

Minister for Transport 

25/6/09

 

Media Statement - WestNet Rail agrees to recommence services.

 

Transport Minister Simon O’Brien said he was pleased to announce that the State Government and WestNet Rail have agreed on a way forward to guarantee grain rail operations are available on all lines for the 2009-10 year, including on the four lines previously withdrawn from service.

The Minister said that as a result of discussions with WestNet Rail, an agreement was reached that will see the newly established Strategic Grain Network Committee (SGNC) take a leading role in examining and providing advice and recommendations on the future of the state’s grain rail network and the Government’s possible investment in it.

“The commitment by WestNet Rail to recommence train operations whilst the SGNC assesses the sector’s needs is welcome,” he said.

The Minister said that the newly established committee, made up of industry representatives and headed by leading transport expert, Professor Fred Affleck, has the knowledge, expertise and experience to ensure that Western Australia’s grain rail network is best placed to service the sector well into the future.

“I am confident that the SGNC will provide the Government and the sector with productive and credible recommendations before the end of 2009 that will enable all parties to constructively plan for the future.

"By the end of July, the council will advise me of the full impacts of current service deficiencies and ways in which the industry and governments can work together to ensure the grain transport system can continue to do the job we all need it to do, both for immediate harvests and for the longer term. This will include looking at the line that runs from Northam to Albany"

"By the end of the year, the council will also give me additional advice about the further changes to the rail system that will be required to meet industry's medium term needs over the coming 10-15 years."

The Minister said that meeting industry's immediate and medium term needs was of fundamental importance, but so too was establishing a vision for a sustainable grain freight system in the 40-50 year long term future.

Media contact: Rhys Turner - 9213 6400  or 0429 373 055

You can subscribe to have media releases emailed automatically from the Government’s website:  http://www.mediastatements.wa.gov.au

Countryman
By Lara Ladyman 

As Countryman went to press, there was enormous pressure mounting on the State Government and WestNet Rail to broker a deal to save WAs ageing grain rail network.

And not just the network, but the State's reputation as one of the easiest places to buy some of the best grain in the world.

While discussions are ongoing, sources could not confirm if a deal was close to being finalised to prevent more line closures.

With threats of more line closures later this year and during harvest, the ongoing saga was compounded by the release last week of an Auditor General's report, which revealed the Government needed to pump $800 million into improving the State's roads.

With rail lines shutting down and more grain in more trucks on country roads, Opposition infrastructure spokeswoman Alannah MacTiernan has called on the Government to reopen the closed lines and match the Federal Government's $135 million, using Royalties for Regions money.

Premier Colin Barnett weighed into the debate on radio, saying he would not bail out a private company.

"We're obviously looking at the legal position now. Seems to me they (Westnet Rail) are not honouring their agreed contract," Mr Barnett told listeners.

"They've got a contract to provide a service, they're refusing to provide the service, they're demanding money which they are not entitled to."

Westnet Rail maintains it has met its contractual obligations and this week said it was still considering its position following the Government's decision not to fund the Albany to Northam line this month.

Nationals MP Max Trenorden said a funding commitment would provide some surety in relation to rail access and freight rates for this harvest.

Mr Trenorden, along with WAFarmers, also warned that more trucks would only add more costs to the $800 million needed for road maintenance.

He said this would be an additional cost burden that would be borne by the community.

The Pastoralists and Graziers Association wants a Federal Government report into the Grain Infrastructure Group to be released but WA Transport Minister Simon O'Brien, said this report was still under consideration by State and Federal governments.

"Based on the goodwill already apparent among key players involved in this initiative, I am confident that we can get industry and government pointing in the same direction when it comes to improving the grain freight system in the immediate, the medium and the long term," Mr O'Brien said this week.

Merredin Wheatbelt Mercury
Page 1 

The Merredin Shire is calling for grain freight to be kept on rail for the safety of the community.

The call comes amid threats by WestNet Rail to close four spur lines, including the Trayning to Merredin and York to Quairading lines, unless the State Government commits $45 million to upgrading the Northam to Albany line.

Merredin Shire chief executive officer Frank Ludovico said if rail lines closed and grain was forced onto road trucks, Co-operative Bulk Handling could reassess its storage requirements which could force more grain onto road transport.

"One major concern is large road transport vehicles sharing rural roads with school buses," he said.

"Increased road funding is needed now, but with rail line closures even more will be required."

WA Local Government Association president Bill Mitchell said rail line closures would increase traffic on country roads, raising safety concerns and putting pressure on already cash-strapped local councils to maintain roads.

The closures are expected to transfer more than 300,000 tonnes of grain from rail to roads.

"Local government simply cannot afford to pick up the ongoing costs of the failure to use the rail network to transport grain," he said.

Shadow Regional Development Minister Alannah MacTiernan last week accused Central Wheatbelt MLA Brendon Grylls of undermining the future of the grain freight rail network.

Ms MacTiernan said Mr Grylls revealed he supported a significant move of grain from rail to road, contrary to a pre-election commitment.

However, Mr Grylls said the previous government had operated with a $2 billion budget surplus and had failed to fund the maintenance and upgrade of the lines.

"The rail network is still owned by the State Government and leased to the rail operator," he said.

"If the State Government was to invest in the re-sleepering of the rail network, truck operators could still undercut the freight price and transport grain by road.

"If that were to occur, the government would be wasting tax payer funds"

Mr Grylls said the re-sleepering of the Northam to Albany line was justifiable.

Transport Minister Simon O'Brien said the government would continue to work with WestNet Rail, but would not hand over money without following procedure.

"It is the government's view, and I know it is the view shared by communities throughout the Wheatbelt, that we want to keep as much of our grain freight on rail and off of our roads," he said.

He said he did not think the threat of rail closures was helpful or productive to finding a way forward.

"The condition of the rail network is fit-for-purpose," he said.

"That's the advice that I get from government and the advice that I get from WestNet.

"Furthermore I have also received advice from WestNet that there is a greater capacity on the rail network to move grain than has been used, not only in the past season, but in recent years"

He said under the deregulated market, farmers have an incentive to move their grain out as quickly as possible.

He said this had generated new challenges for the transport sector to lift their capacity from moving about 1.5 million tonnes per month to a more than 2.5 million tonnes.

WAFarmers transport spokesperson Colin Nicholl said their members were frustrated that while the State and Federal Governments and other organisations were focused on passing the blame, grain would be stranded through an inadequate transport system.

"When rail was privatised, farmers were assured that there would be a better rail system which could cope with whatever was thrown at it; obviously this has not happened," he said.

"The State's farmers are now in a situation where they have invested in state-of-the-art port loading facilities that are capable of meeting market demands, leaving the rail network as the weakest link in the logistics chain.

"Governments need to acknowledge this shortfall and look beyond just the demonstrated economic arguments of keeping grain on rail in this State.

"There are significant social and environmental consequences that will result from an unsupported rail network, through increased truck movements on both rural and metropolitan roads."

He said if governments are serious about the environment, its people and the economy, then keeping grain on rail is the obvious path, and they need to take responsibility.

In contrast, the Pastoralists and Graziers' Association wants farmers to have the freedom to use trucks. PGA spokesperson Sheldon Mumby said Federal Transport Minister Anthony Albanese must resolve WA's narrow gauge rail debate by releasing his department's recent inquiry into the matter.

"We do not accept former WA Minister Alannah MacTiernan's claims that the Federal Government was good' for $135 million to prop up our obsolete narrow gauge rail system," he said.

"The Federal funding was provisional on the results of the WA Grain Freight Review which was completed at the end of April.

"We understand that the current Federal Government rejected funding for the project because it identified the report, which was started by Ms MacTiernan, as merely serving an extremely limited vested interest."

Mr Mumby said the previous government had badly mismanaged the issue and had cost the State millions of dollars in new standard gauge rail funding.

"The previous government spent more than six years on the report and refused to come up with the funding," he said.

"Ms MacTiernan missed her opportunity to benefit WA's $4.5 billion grain industry and should keep out of future debate on this subject."

Ms MacTiernan said detailed analysis by the Grain Infrastructure Group showed that road train combinations that cart grain were subsidised at the rate of $300,000 a year on State roads.

"The real cost of road transport was shown to be greater than rail, once these hidden subsidies were taken into account," she said.

"The detailed analysis by GIG shows that the investment required to keep the grain rail network is the same required to be spent on roads if the lines were closed."

She said abandoning the grain rail rescue package would result in about 1,000 kilometres of grain rail lines being closed, the viability of rail network for grain being irreparably damaged with the viability of the network diminishing with each closure, jeopardising the ability to efficiently move the harvest during bumper seasons, and an increase in the B-Doubles and road trains in the Wheatbelt areas and in grain port towns.

National Party members representing the Agricultural Region have called on the Transport Minister to provide funding to allow re-sleepering of the Northam-Albany grain rail freight line.

Max Trenorden MLC said a funding commitment would provide some surety for the industry in relation to rail access and freight rates for the coming harvest.

"This State Government has a responsibility to allocate funding for this critical piece of infrastructure," Mr Trenorden said.

"It is unacceptable that industry and the communities throughout the region that will be impacted by the transfer of grain from rail to road are in a constant state of uncertainty."

He said the Nationals WA were opposed to the closure of any rail lines and that the prospect of up to 10,000 additional truck movements on country roads is a recipe for disaster for all road users.

Merredin-Wheatbelt Mercury
Page 1 

With four spur lines closed, more grain will be forced on to roads during this year's harvest unless the dispute is settled.

However, at a teleconference conducted last Monday, shire presidents and chief executive officers from local governments that would be impacted by the rail line closures agreed that permits may no longer be issued for operators of larger grain trucks to minimise road damage and costs to local government.

Under the current system, concession permits are required from local government to operate over weight vehicles on local roads.

If local governments refuse to issue permits, the roads will effectively be closed to larger trucks, forcing haulage operators to either use smaller trucks or only use the Main Roads network.

The West Australian
By Jodie Thomson

Shires are threatening to block trucks from hauling grain on country roads as regional rail operator WestNet Rail today suspends operations on part of the ageing rail network.

WA Local Government Association president Bill Mitchell said closures of the rail lines would increase traffic on country roads, raising safety concerns and putting pressure on already cash-strapped local councils to maintain roads.

Affected shires would consider refusing concessional permits for bigger grain trucks, effectively blocking them from using local roads.

WestNet Rail had imposed a June 15 deadline to secure a $45 million interim injection from the State Government to upgrade a major line to Albany, or warned it would stop operating four spur lines.

The closures are expected to shift about 300,000 tonnes of grain from rail on to roads but more suspensions across a bigger portion of the 2300km grain rail network have been flagged if Westnet cannot get government aid.

Cr Mitchell said if local governments refused to issue permits, haulage operators would be forced to either use smaller trucks or only the Main Roads network.

"Local government simply can't afford to pick up the ongoing costs of the failure to use the rail network to transport grain," he said.

WestNet Rail said the suspension of train operations on the lines - Trayning to Merredin, York to Quairading, Katanning to Nyabing, Tambellup to Gnowangerup - would take effect today.

Transport Minister Simon O'Brien accused WestNet Rail of holding the State to ransom.

"It's not a good way to negotiate business," he said.

"We would like to work with WestNet, with (grain handler) CBH and with other stakeholders in the industry. But we are not going to do it with a gun held against our head."

Mr O'Brien said the industry had this month agreed that the Freight Logistics Council examine the capacity and deficiencies of the grain rail network.

He said the rail network was fit for purpose but he wanted an assessment by the council completed before harvest, which is expected to begin in October.

The West Australian
By Jodie Thomson

The State's bulk grain handler is preparing to shift more than three million tonnes of grain, about a third of the WA harvest, on to roads by January unless an urgent upgrade solution is found for the ageing rail network.

CBH logistics executive manager Tim Collins said provisions were being made for the next harvest on the basis that narrow gauge lines could be closed across most of the Albany region, large sections of the Kwinana zone which feed into the Fremantle port and parts of the Geraldton zone.

It comes as hopes fade of rail operator WestNet Rail securing a $45 million funding commitment from the Government by a deadline tonight, which is expected to trigger the immediate closure of 340km of regional spur lines.

The closures are expected to shift about 300,000 tonnes of grain from rail transport between CBH storage sites to trucking.

"That is just the tip of the iceberg," Mr Collins said.

"We have been told (by WestNet) there is a very real prospect of substantially more lines not being available to the extent that we are now planning on that basis for next year. Obviously, it will have a very dramatic effect on the heavy road traffic in those affected areas."

Mr Collins said rail was their preferred method of transport with about two-thirds of an average 10-million-tonne crop traditionally shifted on rail. By 2010 that could be reversed with just a third of the State's crop transported by rail, he said.

"The prospect of significant line closures will compromise our export capability," he said.

Transport Minister Simon O'Brien and grain industry stakeholders this month agreed to a review of WA's grain transport system, which includes the 2300km rail network, by the Freight Logistics Council.

WestNet Rail has guaranteed to keep all grain rail freight lines open, including loss-making lines, for the next financial year if it can quickly secure $45 million interim funding to re-sleeper the Northam to Albany line. But it is understood that Mr O'Brien has asked WestNet for a five-year audit plus a maintenance plan for the next five years before making any decision on funding.

The Pastoralists and Graziers Association wants a performance audit, due to begin in September, fast-tracked.

Shadow minister for strategic infrastructure Alannah MacTiernan said growers were seriously concerned that operators would walk away from the entire network by the end of the year if the issue of a $400 million rail rescue was not resolved.

Media Release

WestNet Rail confirms it has received a response from the Minister for Transport to a letter which proposed a $45 million investment from Government to re-sleeper the Northam to Albany line; the establishment of a review process to determine the viability of the entire narrow gauge grain freight network, and; confirmation of both the Government and WestNet Rail’s obligations under its lease agreement.

WestNet Rail is now considering the Government’s response.

WestNet Rail confirms that train operations on the following lines have been suspended, pending further discussion with the Government, effective from tomorrow.

Trayning to Merredin
York to Quairading
Katanning to Nyabing
Tambellup to Gnowangerup

Countryman

Never mind whether Australia is riding on the sheep's back, or the stuff in the silos, agriculture is a, if not the, shining light in these economically challenged times.

For which state and federal governments are so grateful they are both doing everything they can to weasel their way out of making any serious, long-term commitment to the health of our rail system.

WestNet Rail has made it clear many lines are in poor condition.

And made it just as clear it needs millions, and millions, of dollars to keep the system rolling.

If it can't trucks will still keep rolling - but there will be more of them on our roads instead.

Where they will chew up bitumen and, more importantly, significantly increase the risk to other
drivers. So let's do the sums.

A minimum of $50 million for WestNet or incalculable millions to repair, or upgrade, roads not designed for road trains on the scale needed through WA. And what cost does government put on a single life?

WA produces more grain than anyone. Which means more trains running, or way too many trucks.

This might not be a vote getter, but it is a decision which needs to be made, has to be made, and made by a government elected to get the job done even if there is no major public pat on the back.

Our farmers work hard, very hard. They take the hard knocks, the drought, the volatile commodity markets, get belted by exchange rates and hammered by soaring input costs - from fertilisers to tractors.

They do not take taxpayer-funded holidays. Frequently they don't take any holidays.

But there is an undeniable feeling, once again, the poor old man, and woman, on the land, are being railroaded.

Countryman
Your Say - By John Bain

At first there was the AWB debacle and I'm sure there's an awful lot of Australian farmers still totally bewildered about the viability of their industry.

Now there's the added stigma of WestNet rail's future as the prime haulage contractor to WA grain ports. Suddenly no-one's got any money.

In the South-West they've waited five years and two governments for the Bunbury-Manjimup line to re-open, all to no avail.

As a consequence, the unanswered question is when are governments going to stop going for the easy way out and face up to their responsibilities?

The infrastructure is in place. All it needs is returning to a standard that enables the operator to maintain the service, not to embark on a blame game exercise as the Government hopes the problem will disappear down a black hole.

Australia-wide, farmers are reliant on rail networks to transport grain to port and while road may bring some short-term gain, the overall result will be catastrophic for the industry.

Governments have to realise there's more to life than collecting taxes, duties and fees. Distribution back into public instrumentalities is also part of the economic equation.

Countryman
By Lara Ladyman

Shires in the central and eastern Wheatbelt are pinning their hopes on an 11th-hour deal to stave off imminent rail line closures. They fear if the State Government doesn't step in by next Monday to halt the threatened closures, lives will be at risk.

If WestNet Rail makes good on its ultimatum of Government millions or closures, it is feared that hundreds of extra grain trucks will be forced onto roads in no shape to handle them.

Last week, WestNet Rail warned that trains would stop rolling on the Trayning to Merredin, York to Quairading, Katanning to Nyabing and Tambellup to Gnowangerup lines without a commitment of government funding by June 15.

WestNet Rail general manager Paul Larsen said the four tracks earmarked for closure next week carried low volumes, were uneconomic and required further investment. But he also warned there would be more to come, having an impact on transport for the 2009-10 harvest if there was no government money.

York, Quairading and Trayning shire presidents Pat Hooper, Darryl Richards and Trevor Lamond, respectively, only heard about the specific line closures last week. If negotiations fail, Cr Richards warned the closure of the York to Quairading track would see at least an extra 5000 road trains hit the State's roads to transport grain to ports. "It's a safety issue," Cr Richards, who also farms south of Quairading, said. "The roads aren't built for it and having extra trucks on the road is going to be a huge safety concern."

Cr Hooper and Cr Richards said if the York to Quairading line closed, funding must be allocated to upgrade the York to Merredin, Chidlow to York and Quairading to Cunderdin roads, which had inadequate passing lanes, pavement widths and strength and deficient alignment for the extra traffic that would result.

Meanwhile, Trayning farmer and shire president Trevor Lamond said shutting the Trayning line would see extra grain trucks on roads to Wyalkatchem, Merredin and Kellerberrin. "It's not just the Trayning bin that goes on rail, the Nungarin bin is also a substantial one that would have to go on the road," he said.

Cr Lamond said the roads were not designed to carry the extra burden and there were already some in the shires that needed urgent work, but no funds had been forthcoming.

Transport Minister Simon O'Brien, who met with CBH, WestNet Rail, the PGA, WAFarmers and the Australian Grain Exporters Association last week, said industry had agreed on a process where the Freight and Logistics Council would assess options for improving the capacity of the transport system to move more grain.

When asked if the Minister would be responding to the June 15 deadline, a spokesman said he was surprised by WestNet Rail's position on the four line closures, considering the positive meeting he had with it and other sector stakeholders last Wednesday.

CBH said that while most of the grain out of the Gnowangerup and Nyabing bins already travelled by road, the impact of the closing the Quairading and Trayning lines was unknown.

Farm Weekly
By Colin Bettles

Local governments are up in arms after WestNet Rail said it will be forced to close rail lines in four WA shires if the State Government does not contribute funding to upgrading the key Albany to Northam line.

These lines include Trayning to Merredin, York to Quairading, Katanning to Nyabing and Tambellup to Gnowangerup.

Trayning shire president Trevor Lamond (pictured), said the closure of the Trayning to Merredin rail line alone would mean 100,000 tonnes of grain would have to be carted via road, which would equate to an extra 2000 road trains.

Those road trains would either travel from Trayning into Merredin, or from Trayning to Kellerberrin but either way Mr Lamond said it would put a lot of pressure on the roads.

"If it goes from here to Merredin then the responsibility of the road rests with Main Roads, but if grain is carted from here to Kellerberrin, it rests with the Shire of Trayning," Mr Lamond said.

"Whichever the case may be, who would want an extra 2000 road trains when we've got a choice of using rail?"

"I think it's a backwards step."

Farm Weekly
By Colin Bettles

Transport Minister Simon O'Brien's proposal to utilise the expertise of the Freight and Logistics Council to assess the grain industry's transportation needs was endorsed at a special meeting at Parliament House last week.

However, not all those from the industry in attendance were pleased with the final outcome.

The purpose of the meeting was to invite industry participation in a process that will guide the Government's decision making on future investment in the state's grain rail network.

The meeting was attended by 26 delegates, including representatives from WestNet Rail, ARG, South Spur Rail Services, CBH, WAFarmers, the Pastoralists and Graziers Association (PGA) and the Australian Grain Exporters Association (AGEA).

Various government agencies also attended including the Agriculture and Food Department, the Transport Department and the Planning and Infrastructure Department.

Each of the organisations will now provide one delegate to represent them on the new committee.

Following the meeting, WestNet Rail general manager Paul Larsen caused a stir in the corridors of Parliament House by publicly stating that he was disappointed the State Government was still considering a re-submitted proposal from WestNet Rail to spend $50 million on upgrades to the Northam to Albany grain freight line.

Mr Larsen said he understood the Federal Government had set aside funding, capped at $135m, from its multi-billion dollar Nation Building Program to fund the grain rail freight network.

He said that funding was subject to the outcomes of the WA grain review.

WestNet Rail is asking the state and federal governments to commit to investing in improvements to the 2300km narrow gauge network.

Mr Larsen said he was bemused at why the government had not responded to the resubmitted proposal put forward on May 6, which has a June 15 deadline.

He said if a positive response was not received by June 15 to the alternative proposal, grain rail freight operations would close on four lines "the following day".

"We understand it is taxpayers' money we are asking for, but the government needs to show its support for rail and provide some certainty to the grains industy," he said.

"We met with Mr O'Brien before last week's meeting and we were hoping he would be making an announcement on our request at the meeting."

"However, it was nothing more than a talk fest and now we have run out of patience."

"CBH are going hell for leather getting a trucking plan organised for this harvest."

"The Federal Government is ready to go and have set aside $135m to fund the track repairs needed but they are not going to put in any money unless the State Government does."

"If they allocate the funding for the Avon to Albany upgrades, we will keep all the other lines open."

Grain operations are set to cease on rail lines from Trayning to Merredin, York to Quairading, Katanning to Nyabing and Tambellup to Gnowangerup.

Mr Larsen said the industry was ready to invest in annual track expenditure of $30m, additional rolling stock to the value of $80m and rapid rail loading infrastructure to the value of $150m.

However, he said it could not proceed without State Government support.

A stand-off is now expected to follow between WestNet Rail and the State Government, with the outcome hinging on WestNet Rail's contract to provide rail services.

The contractual battle could end up being resolved through legal action.

A spokesperson from Mr O'Brien's office said he stood by the statement made after last week's meeting, and that a process had been agreed to by industry at the meeting last week, to create a tangible solution to the rail issue and find a strategic outcome for all of industry.

He said that process was not separate from WestNet Rail's request for funding to repair the Northam to Albany line.

"Any rail closures and additional trucks going onto roads after June 16 will be of WestNet Rail's making," the spokesperson said.

"Any lobbying on that should be taken up with WestNet Rail, not the State Government."

"They are the ones holding the gun to the government's head, and not just the government's head but everyone else in the industry who use these tracks for grain transportation."

Agricultural Region MLC Brian Ellis said he was sympathetic to WestNet Rail's concerns but was surprised by their statement following last week's meeting.

Mr Ellis, who is also a third generation graingrower, said a current strategic plan was needed for grain transportation, regardless of where the money was going to come from.

"The meeting may not have satisfied the request for funding from WestNet Rail, but it should have alleviated their strategic concerns," he said.

Mr Ellis said he would like to see WAFarmers and the PGA working together to develop a unified view and strategy for handling the rail issue.

The PGA questioned WestNet Rail's motives in "threatening" to abandon 340 kilometres of narrow gauge railway in WA.

PGA Western Graingrowers Committee chairman Rick Wilson said Mr O'Brien had held a meeting with industry stakeholders resulting in the establishment of a committee to assess the grain industry's transport needs.

At the meeting, he said Mr O'Brien's office had given assurances that the WA grain rail network was "fit for purpose" and that no lines would be closed while the new committee conducted its task of funding a strategic solution to the issues under consideration.

"WestNet Rail is asking the State Government to use taxpayer funds for capital works, yet they are threatening to close lines which they have wanted to do since 2004," he said.

"Now their actions are starting to raise questions within the industry over how much capital works investment has been performed by WestNet Rail in the past six years."

"WestNet Rail has an obligation to growers in WA to maintain an efficient rail system."

"Maybe it is time for them to open up their books to public scrutiny and show where the inefficiencies are in the system, before asking taxpayers to fund their business."

CBH logistics manager Tim Collins said rail line closures were not good for the WA grains industry.

"Rail needs volume to be efficient and these closures will rob the network of volume leaving the cost of the network more expensive for the majority of users," he said.

In the past three to five harvests, Mr Collins said the average volume on the Quairading line was around 150,000 tonnes.

In the same period, the average volume on the Trayning line has been around 140,000t and on the lines in the great southern, around 200,000t.

AGEA director Alick Osborne said his organisation had appreciated hearing about the issues confronting the WA rail network "first hand", at last week's meeting.

Mr Osborne said grain exporters had experienced significant issues getting grain to port earlier this year and were now happy to be involved in the discussions that are designed to find a solution.

"The final proof will be in the pudding," he said.

Shadow Strategic Infrastructure Minister Alannah MacTiernan said the grain rail rescue package should be funded from the $281m in unallocated Royalties to Regions funding.

She said Regional Development Minister Brendon Grylls had blatantly refused to fund a project that would be of great benefit to the regions, while millions of dollars lay idle "waiting for a good idea".

"This is an essential project that the regions are crying out for, yet somehow, Mr Grylls does not deem it worthy," she said.

"The Minister is prepared to spend Royalties for Regions money on health projects from mattresses to x-ray equipment to hospital buildings."

"The rail project however is highly strategic and is exactly what the Barnett Government should be investing in."

"The Federal Government is expected to make a decision soon on its own contribution to the project."

"Using the unallocated funds remaining in the Royalties for Regions scheme would be a sensible investment for the Barnett Government."

WAFARMERS transport spokesperson Colin Nicholl, who attended the meeting with Transport Minister Simon O'Brien at Parliament House last week, was disappointed a representative from WALGA did not get invited.

Mr Nicholl held the transport portfolio for WAFarmers from 1994 to 2004.

He recently returned to the role after the previous spokesperson John Hassell, Pingelly, was elected to the board of CBH.

Mr Nicholl said WestNet Rail was showing the government that it was serious, by announcing the pending rail closures.

"My concern is that, if the government does not come to the party with this funding, by next year we could see large sections of the narrow gauge network close," he said.

"That would thrust an enormous cost onto local government and other government departments, through Main Roads."

"My other fear is that this could be the first of many rail closures to come."

"We have to work on a longer term solution but we also need to make sure we get this harvest to port and the next three."

"We can't walk away from the shorter term problems."

"The Government has to put the money up one way or another, it just depends if they want more rail to go by road if sections of the rail system start closing."

"Once a line is closed it is very difficult to open it again."

Farm Weekly

Wickepin shire president Steve Martin is frustrated at local governments' exclusion from representation on the new grain rail freight committee, announced by Transport Minister Simon O'Brien last week.

Mr Martin has also issued a dire warning about the potential dangers of shifting the costs of grain transportation onto local government.

If non-profitable sections of the grain rail freight network are closed, as flagged by the rail line lease-holder WestNet Rail last week, Mr Martin said increased road maintenance would shift costs to local government.

Mr Martin is a state councillor on the WA Local Government Association (WALGA), representing the southern Wheatbelt region.

He is also a member of the WALGA Grain Freight Working Group.

Last week Mr O'Brien endorsed a proposal to utilise the expertise of the newly formed Freight and Logistics Council (FLC), to assess the grain industry's transportation requirements.

A new committee focussed on grain transportation will replace the outdated Grain Infrastructure Group.

The new council will be a sub-committee of the FLC and one or two members of it will represent grain transportation on the FLC.

The job of the yet to be named committee will be to guide the government's decision making on future investment in the state's grain rail network.

Despite its cross industry representation, Mr Martin said he was miffed at why local government had not been given a place on the committee.

He said local government had been working on the grain rail freight issue for about four years, and played a key role in determining the grain rail freight network's fate.

"It is certainly a local government issue," he said.

"Any changes to the way grain is transported across regional WA will obviously have a massive impact on local governments."

"At the moment Mr O'Brien is meeting with the rail operators, bulk handlers and farming groups to discuss grain freight."

"However, the last time I looked most of the grain grown in this state was carted on a shire road for at least part of its journey."

"So why isn't he talking to us?"

"Roads are our business."

"WALGA was never asked to take a seat on the committee."

Mr Martin said he agreed with Mr O'Brien's assessment that the grain freight task needed to be done, and done quickly.

However, he said if sections of the narrow gauge rail network closed or if CBH rationalised its storage and handling network, "more dollars" would need to be spent on country roads.

The shires of Quairading and York also said they were extremely disappointed by WestNet Rail's announcement.

Quairading shire president Darryl Richards and York shire president Pat Hooper issued a joint media statement saying the closures would mean an additional minimum of 5000 road train movements per year onto local and state roads to transport grain to ports.

"Primary grain receival points in Quairading, York, Cunderdin and Northam will receive increased tonnages mainly through the use of local roads forcing an additional cost burden onto local governments," the statement said.

"The increased permit vehicle movements to transport grain to port on the York-Merredin and Chidlow-York roads will increase road safety risks, as cartage will be for concentrated periods."

"These routes already carry a high volume mix of hay, wool, livestock grain and general freight and are used for commuters, tourists, machinery movements and the general motoring public."

"If the York-Quairading rail line is to close immediately, funding must be allocated for the upgrading of the above roads and the Quairading - Cunderdin Road to provide a connection to the standard gauge line."

"The shires of Quairading and York highlight that the York-Merredin road, the Chidlow-York road and Quairading-Cunderdin road are deficient in alignment, passing lanes, pavement widths, pavement strength and other road engineering criteria."

The West Australian
By Jodie Thomson

The Pastoralists and Graziers Association wants a performance audit of WA's regional rail operator to be fast tracked before the State Government decides on investing in rail upgrades.

It follows an announcement by WestNet Rail last week that without a $45 million funding commitment from the Government, it will close 340km of regional spur lines used for freighting grain by next week.

PGA grains director Sheldon Mumby said yesterday that Transport Minister Simon O'Brien should bring forward WestNet Rail's five-year audit, due to be completed next year, to determine whether the operator had met all obligations under its agreement with the Government.

"That would be the only justification in our view for any special case for funding," Mr Mumby said.

He said the PGA was concerned that even with new funding, there had been no assurance that WestNet Rail would keep lines open.

But WestNet Rail general manager Paul Larsen said bringing forward a performance audit by a few months would make no difference to whether the Government fundamentally supported putting grain on rail and was willing to make a commitment to the network. He said in documentation for its $45 million interim proposal to re-sleeper a big part of the Northam to Albany line, WestNet Rail had guaranteed to keep all grain rail freight lines open, including loss-making lines, for the next financial year.

Mr Larsen said WestNet had spent $237 million of its own money on the narrow gauge network, much of it over the past few years as it pursued talks with the Government about long-term investment needed to keep the network efficient.

Mr O'Brien said the previous Liberal government allocated more than $120 million for the Grain Lines Strengthening Program, which ended in 2005.

"Despite this massive public expenditure, the volume of grain on rail has declined in recent years," Mr O'Brien said.

"An industry roundtable last week agreed to have the Freight and Logistics Council test all proposals before any funding commitments were made," he said.

"It is incumbent upon the Government to be certain of what benefits will flow from further public investment in the grain transport industry before any more taxpayer money is committed," Mr O'Brien said.

The West Australian
By Jodie Thomson

Country shires will call for big rises in road funding from the State and Federal governments to cope with more trucks carting grain if proposed railway line closures go ahead.

Regional rail operator WestNet Rail has threatened to close four regional spur lines by next week if it does not get a $50 million State funding commitment to upgrade a major line from Northam to Albany.

Included in the planned 340km line closure is a 74km track from York to Quairading, in the central Wheatbelt.

York and Quairading councils foresee an extra 5000 road train movements each year in their region, as roughly a quarter of a million tonnes of grain is shifted from rail to roads.

York shire president Pat Hooper said the shires would call on government to pay for road upgrades, including new passing lanes, on major regional roads which would need to cope with a significant freight increase. He expected the cost would run into tens of millions of dollars.

Local farmer and deputy shire president Brian Lawrance said it was vital to the town to keep the rail line going. "We are trying to keep heavy traffic out of town because of its historic nature and the rail closure would only aggravate that," he said.

The shires have backed a Keep Grain on Rail campaign by rail users and farm group WAFarmers.

Albany Advertiser
By Nick Sas

WA's rail network operator has given the State Government an ultimatum: pay up or we will close key lines in the Great Southern.

If the situation does not alter in the next six months every line in the region will be closed, which could put hundreds of extra grain trucks a day on local roads, posing a greater risk to road safety.

WestNet Rail, which controls grain-rail operations across the Great Southern, says it needs a "crucial" $50 million injection into the ailing Avon to Albany rail line.

WestNet Rail managing director Paul Larsen says the government has until June 16 to kick the can, or two Great Southern lines - Katanning to Nyabing and Tambellup to Gnowangerup - would close.

And he said the Albany line - which alone takes the equivalent of 108 trucks a day off Albany's roads - could be next.

"We had a meeting last Wednesday with the government and we're not confident the deadline will be met," Mr Larsen says.

"We originally asked for $200 million over four years, and we got no response, so we amended the request to $50 million to lay new sleepers on the Albany line and so far, nothing," he says.

"The government has had our funding requests for a month now, if we don't get a response we will have no choice but to close the smaller lines. And if we continue to get nothing, all lines will be closed by January 1."

The State Government owns the rail lines and rents them to WestNet Rail.

Mr Larsen says his company invests $35 million a year in maintenance work and is looking for the State Government to invest the $50 million as a commitment to the future of rail lines.

"The rail line is crucial; if it closes it means more trucks on the road, less competition and more problems for the growers and no-one wants that."

But a spokesperson for transport minister Simon O'Brien claims the government is surprised with WestNet's position.

He says a meeting last week with WestNet Rail and sector stakeholders was "positive".

And he says they agreed to charter a constructive course forward with the WA Freight and Logistics Council to assess the grain industry's future transportation needs.

But CBH Albany zone manager Richard Simonaitis says the potential closure of rail lines in the Great Southern is real, and will have a damaging impact on the community.

"The reality is with the deregulated grain market that more grain will be transfered on the roads," Mr Simonaitis says.

"That is why the rail line is essential, it takes pressure off the roads. If it closes, the Albany route could become stranded," he says.

WA local government association president Bill Mitchell says the local government association supported WestNet Rail's position, and an investment in the rail line would save the State money long-term through less road maintenance.

The West Australian
By Jodie Thomson

WA's rail network operator warned yesterday that four country lines would be closed within a fortnight unless the State Government committed to funding upgrades to the ageing network.

WestNet Rail general manager Paul Larsen said that without a quick injection of $50 million into the dilapidated rail network, which handles grain, operations on spur lines totalling 340km would stop on June 16.

The affected lines are York to Quairading, Trayning-Merredin, Katanning-Nyabing and Tambellup-Gnowangerup.

Mr Larsen also warned that the absence of a funding commitment would cast uncertainty over use of the rest of the 2300km track. The industry would begin to look at using road to transport millions of tonnes of grain for this year's harvest.

The grains industry has been pushing for a rescue package of $400 million over four years to upgrade the rail line, local roads and grain-loading facilities. It would be jointly funded by industry and the State and Federal governments.

But a recent stoush between WA's two major farm groups over the merits of keeping the entire system operating and the current economic climate drew an alternate proposal from WestNet Rail for the State Government to initially spend $50 million to lay new sleepers on the main line from Northam to Albany.

"We set a deadline of June 15 for a response from government on the Albany proposal," Mr Larsen said.

"While that money is being spent in year one on the Albany line, we will work with government and industry to determine what should happen in years two, three and four, and how much of the network should stay open."

The grains industry has warned that shifting grain transport from rail to road would mean thousands more truck movements, putting huge financial pressure on maintaining regional roads.

A spokesman for Transport Minister Simon O'Brien said last night the Minister was surprised by WestNet's position, considering the "positive meeting" he held with them and other stakeholders on Wednesday.

The meeting had agreed to charter a course forward with the Freight and Logistics Council to assess the grain industry's transport needs, he said.

Media Release

Grain rail freight operations on four lines in Western Australia’s wheatbelt will cease from 16 June 2009 if there is no State and Federal Government commitment to investing in improving the 2,300 kilometre narrow gauge network.

Operations are set to cease on the following lines:
• Trayning to Merredin
• York to Quairading
• Katanning to Nyabing
• Tambellup to Gnowangerup

Industry has been unable to reach agreement on how grain rail freight services can continue
following the State and Federal Governments’ failure to commit to investing their share of the more than $200 million required to upgrade the network, particularly for re-sleepering.

WestNet Rail General Manager Paul Larsen said the industry was ready to invest in annual track
expenditure of $30 million, additional rolling stock to the value of $80 million and rapid rail loading infrastructure to the value of $150 million, but it could not proceed without any support from State and Federal Governments for the $200 million of re-sleepering for the grain rail network.

He said that recognising the tough budgetary conditions facing the current Government, WestNet Rail has also put forward a $50 million interim solution involving the upgrade of the Avon to Albany line that forms the backbone of the grain rail freight network. The interim solution would enable the network to operate through the next harvest while a long-term investment strategy was prepared between industry and government.
 
“We have yet to have a response to this proposal, but if the State Government cannot provide
some indication of support by 15 June then industry will need to cease operations on these four
lines and we will have to start reviewing the ability for grain trains to continue operating on the rest of the grain lines for the next harvest,” said Mr Larsen.

The Government confirmed that yesterday that WestNet Rail will get a response to its proposed
interim solution by 15 June.
 
“There has been speculation recently about which freight services are most likely to be cease so
we have made the announcement about the initial four lines to give grain growers plenty of
opportunity to try and source alternative freight options prior to the start of harvest next year. We have a responsibility to make sure that individual farmers and the industry can start organising road transport operations,” he said.
 
The 2,300 kilometre grain freight network is owned by the State Government and leased by
WestNet. The terms of the lease enable WestNet Rail to seek State Government investment in
keeping the network operating for lines that WestNet loses money on, which includes the grain
lines.

In total, the grain rail freight network currently keeps approximately 300,000 trucks off regional, metropolitan and port access roads each year, representing a substantial social and environmental benefit for the State.
 
Mr Larsen said WestNet Rail and the other key players in the grain transport system, CBH and
ARG, had tried hard in recent months to get the State and Federal Government to understand the importance of investing in the critical regional rail infrastructure that supported the $4.5 billion grain industry.

To find out more on this issue visit www.grainonrail.com.au.

ENDS

Media Contacts
Fiona Martin
Corporate Affairs Adviser
WestNet Rail
T: (08) 6213 7680
M: 0404 169 966
E: fmartin@wng.com.au

Anthony Hasluck
Managing Director 
Clarity Communications
T: (08) 9380 0700
M: 0438 522 194
E: anthony@claritycommunications.com.au

Countryman, Page: 12
By Lara Ladyman
 

Every kid wants to own a toy train set and now playtime is a lot more fun for east coast-based grain handler GrainCorp, which has a yard full of new machines.

But as the NSW Government delivers on a promise to roll out 18 new locomotives, with 180 wagons to move grain around the State, WA farmers are stuck in the dark ages, with grain rail line closures imminent.

Growers have pleaded with the State and Federal politicians to find a solution.

WA industry representatives including CBH, WestNet Rail, farm lobby groups, the Department of Primary Industries and the Australian Grain Exporters Association are due to meet Transport Minister Simon O ’Brien this week to thrash out any kind of solution ahead of a WestNet Rail-imposed deadline of June 15.

WestNet wants an injection of $50 million from government to lay new sleepers on the Northam to Albany line.

WAFarmers transport spokesman Cohn Nicholl said farmers and CBH were at a competitive disadvantage when trying to keep pace with Grain- Corp and other companies.

Mr Nichohl called on the WA Government to get real about investing in the State ’s rural economic future.

He said putting more trucks on country roads was not a long-term solution.

Mr Nicholl said the NSW Government was doing farmers a great service but he noted that NSW still had problems with the integrity of its tracks.

With this year ’s harvest just around the corner, he said a plan for investment in rail was needed now and then a bigger injection of capital for the future.

The Pastoralists and Graziers Association was expected to continue its push for a standard gauge rail network and the widening of country roads.

GrainCorp managing director Mark Irwin said the new trains would streamline operations for NSW farmers because it meant they would not have to go tbrough a third party to move grain.

ABC North West WA (Karratha)
WA Country Hour - 04/06/2009 - 12:11 PM
 

Shannon says some rail lines in grain growing areas of WA will be closed this year.

Paul Larson, General Manager, WestNet Rail says there is a risk that the York to Quairading line, Trayning to Merredin line, Katanning to Conniving(*) line, Tambellup to Gnowangerup line will stop operating on June 16th.

Larson says they put forward an alternative proposal to Government in May but they had no response.

[Excerpt of Simon O'Brien, Min for Transport saying that it is vital there is a vast amount of grain freight kept on rail rather than roads which are unable to deal with it.

O'Brien says they are using the Freight and Logistics Council chaired by Eric Lumsden to help Government with the process.

O'Brien chats about a meeting at Parliament that got a great response from the Pastoralists and Graziers Association, WAFarmers Federation and other agencies. O'Brien says a problem with moving a large volume of grain in one month was that there was a shortage of rolling stock].

Larson says they previously asked for $200m over four years to keep the network open, which is still required. Larson says the Albany Line is a critical line and they proposed to decide which parts of the network need to stay open.

Larson says industry needs certainty and the absence of Government funding means it cannot be certain.

Larson says the funding is overdue and the lines can produce better results in terms of more tonnes.

West Australian, Page: 4
By Robert Taylor

The State Government has padded the Budget surplus with $65 million from a city parking levy without mentioning that, by law, the cash must be spent on promoting free public transport in the central business district.

The revelation adds to concerns over $2 billion in unfunded projects or questionable revenue on the books.

The Government will get $16.4 million a year for the next four years from increasing the levy on city parking but is meant to spend the money on more CAT buses or other free transport measures.

It did not include any new free transport measures in the Budget, so the $65 million was used to prop up Treasurer Troy Buswell ’s $650 million surplus.

Transport Department executive director for strategic corporate support Michael D ’Souza told parliamentary hearings last week that the money could not be included in the surplus because it had to be spent on the CAT or free transport zone.

"The $16.4 million has not been allocated as a Budget expenditure but it has been added to the cash balance and it is added to the surplus," he said.

A spokesman for Transport Minister Simon O ’Brien said yesterday that ROBERT TAYLOR expenditure on CAT buses of more than $9 million a year had been included in the Budget papers and the rest would be spent on retiring debt.

Former planning and infrastructure minister Alannah MacTiernan said that money was already being raised by the levy and did not account for the extra $65.6 million over the next four years.

The Opposition claims that more than $2 billion in projects, levies and royalties are unallocated in the Budget or under threat.

The State Government must match $755 million promised by the Federal Government for the Oakajee Port, Northbridge Link and Midland Hospital.

It has to find $100 million for nickel loading facilities at Esperance and up to $400 million for Royal Perth Hospital, after the next election.

The Federal Government has offered up to $135 million to fix the dilapidated grain freight rail network, if the State kicks in the same. This was not included in the State Budget.

The Government has at risk $540 million in royalties from a new agreement over iron ore fines, which Premier Cohn Barnett said he wanted to renegotiate with BHP-Billiton and Rio Tinto, and $156 million in a landfill levy that needs the support of independent MPs to succeed.

STATE BUDGET 2009 Unaccounted: Oakajee $339 million Northbridge Link $236million Esperance nickel loading facilities $100 million Free CBD transport $65 million Midland Hospital $180 million Royal Perth Hospital refurbishment (post 2012) $400 million Money counted but in doubt due to legislation requirements: Iron Ore fines royalties $540 million New landfill levy $156 million Risky forecasts: Iron ore price $140 million Exchange rate $300 million

Save grain rail link, chief urges

RACHEL DONKIN - West Australian

The chief executive of Australian Railroad Group has stepped up calls for government to commit to the future of the State's dilapidated narrow-gauge rail network, warning hundreds of jobs could be at risk if the 3000km-plus network was closed. 

"It's minutes to midnight," Ken Lewsey said of the situation yesterday.  

"We understand there needs to be some rationalisation of the network but we want to see the (majority) stay open, we want to re-invest and we want to see the current uncertainty resolved." 

The grain industry wants the Federal and Barnett governments to help fund a $200 million upgrade of the State's narrow-gauge rail network, which carries the majority of WA's annual grain crops to ports, and needs urgent upgrades in some sections. Its major stakeholders also appealed - unsuccessfully - for the State Government to commit to its share in the recent Budget.  

The WA Farmers Federation has led the push for funds along with grain logistics group CBH and track operator WestNet, which leases the rail network from the Government. But despite also holding a membership of the representative body, Grain Infrastructure Group, ARG has kept a relatively low-profile on the issue. 

But in an interview with The West Australian yesterday, Mr Lewsey said ARG remained "absolutely committed" to grain freight in WA, saying the board had signed off on an $80 investment in new rolling stock which would be spent as soon as it received  "some certainty" about the network's future. 

ARG transports 60 per cent of the annual harvest on average, although others say that figure is declining as farmers lose faith in the network and truck their grain to ports. 

Mr Lewsey also hinted that the jobs of more than 250 ARG staff employed within the group's grain-related operations could be at risk if the network was not upgraded. "If there were material rail closures it would be very damaging for us," he said. 

ARG - incorporating WestNet - was bought by a Wesfarmers-led joint venture when the WA Government privatised the State's rail network in 2000. ARG has been owned by Queensland Rail since 2006. Babcock & Brown Infrastructure bought WestNet. 

 

Major players differ over freight

Janelle Macri & Dan Wilkie - WA Business News

GRAIN handler CBH Group chief executive Andy Crane and new Pastoralists and Graziers Association western graingrowers chairman Rick Wilson are at odds over how best to tackle the deteriorating grain rail freight network.

Mr Crane told a WA Business News boardroom forum this month that one of the biggest issues facing its business, and the industry, was infrastructure.

He believes that grain should be transported by rail to avoid putting more trucks on the roads. "For us, the major issue is the rail system in this state is collapsing; it's not doing the job it was designed 100 years ago to do," Mr Crane said.

"It's a major area of market failure. We need government to nudge the finances, or the decision making, so the grain volume stays on rail and isn't put on trucks to get to port.

"People in the city don't see the three million tonnes of grain we load through Kwinana every year because it comes on rail, but it's not going to stay that way because the investment's not there."

CBH, WestNet Rail and Australian Railroad Group are behind a $400 million plan to upgrade the grain freight rail network, with funding to be shared equally between state and federal government and industry.

Of the total investment, $200 million would be spent on laying new sleepers on rail lines, $50 million on feeder roads and $150 million on rapid rail loading cells at CBH facilities.

"Now's the time for government to be doing that, to be investing; we're offering matched funding from industry," Mr Crane said.

"We've been called to invest in future opportunities to be ready to come out of this recession, and the government should do the same thing for infrastructure."

But Mr Wilson believes the proposal is a band-aid solution, and called for the development of a comprehensive and well-resourced strategic plan for the grain infrastructure upgrades.

"The PGA is calling for the state government to institute a study into the optimum grain logistics network," Mr Wilson SAID.

"We're opposed to the current campaign of CBH and WestNet Rail to put their grain on rail, which is basically a $400 million band-aid measure. There needs to be a longer-term strategic plan to upgrade the key parts of the network to standard gauge."

Mr Wilson said WA's regional communities were missing out on vital funds for rail and road infrastructure because of a proposal to restore outmoded narrow gauge rail systems.

The two groups also differ on their stance of road versus rail for transporting grain.

The CBH-WestNet-ARG alliance has embarked on a campaign highlighting the problems that would be created if millions of tonnes of grain are forced off rail and onto roads.

The PGA, meanwhile, has rejected claims it supported the `Grain on Rail' campaign, and is calling for a major rethink of WA's grain freight problems.

"We believe there are far better solutions to the grain freight problem, services like new standard gauge links that will enable train turnarounds of 20 hours or less between regional storages and ports such as Narrogin and Albany, with upgraded road services feeding into them," Mr Wilson said in a statement.

"The provision of better roads with more passing lanes to service these new lines would not only vastly improve efficiency, but also public road safety and offer major benefits for non-grain freight and traffic."

Countryman - Lara Ladyman

Toodyay farmer Joe Candeloro fears that next time an accident like the one pictured, which blocked the Northam to Goomalling road for six hours earlier this year, could have tragic consequences.

He is adamant that the Government needs to spend money fixing up WAs grain rail network.

Still reeling after the State's grain rail network got precious little in last week's Budget, the industry has demanded funding to keep the Northam to Albany line open.

WestNet Rail has now set June 15 as the deadline for $50 million, split between the State and the Federal governments to be put towards new sleepers for the Northam to Albany line.

WestNet Rail general manager Paul Larsen said the alternative proposal was based on the first year of the four-year program it had initially proposed.

"We have been talking about a four-year program of $200 million dollars to upgrade the grain lines," he said.

"What we have said to Government is commit to year one, which is basically the line from Avon to Albany."

While hopeful government would fund the new proposal, Mr Larsen was disappointed at the lack of funds in the Budget.

"WA is Australia's premier grain exporting State and I think this has failed to be recognised in these Budget funding discussions," Mr Larsen said.

WAFarmers president Mike Norton agreed, saying it was disappointing to see both Federal and State governments ignored the need for investment in the WA grain rail network, which underpinned a $4.5 billion grains industry and reduced the number of potentially dangerous truck movements.

CBH logistics executive manager Tim Collins also supported the new proposal from WestNet but insisted a decision needed to be made soon.

But the Pastoralists and Graziers Association reiterated its call for an overall industry-wide blueprint for the grain network rather than a piecemeal patch-up job.

Merredin-Wheatbelt Mercury

Rural organisations have voiced disappointment at both the Federal and State Government budgets released last week.

WAFarmers said it was a mixed bag for agriculture in the Federal Government budget.

President Mike Norton said WAFarmers has long called for the Federal Government to acknowledge agriculture's ongoing and significant contribution to the Australian economy through funding allocations to a number of educational, infrastructure, research and development projects.

"WAFarmers is deeply disappointed that funding into research and development has been significantly reduced,' he said.

"Similarly, it is disappointing that there appears to be a lack of infrastructure expenditure in rural WA, including for the narrow gauge rail network which is essential infrastructure to support WA's $4.5 billion grains industry.'

WA-Farmers did welcome the extension of and increase to the small business tax break which will allow farmers to increase their capital works investment programs.Federal Member for O'Connor Wilson Tuckey said agriculture had been ignored.

"There is no mention of positive assistance for the agricultural sector in the budget," he said.

Mr Norton said while there was no mention of positive assistance for the agricultural sector welcomed slight increase in funding for the Department of Agriculture and Food WA in the State budget, which State funded Central Wheatbelt initiatives:

• $12.3 million on education facilities, including Trade Training Centres at Merredin and Northam Senior High Schools
• $7.3 million to replace the Cunderdin Water Pump Station
• $6.4 million on electricity transmission networks through Western Power Networks resource management, other funding seemed to be flat lined.

  "In real terms, this will see agriculture heading backwards over the coming years," he said.

"Key job building infrastructure projects essential to driving agriculture now and into the future, seem to have been ignored in this budget.

"These infrastructure projects include essential work on the grain rail network, the relocation of the DAFWA head office and the State Saleyard Strategy."

Pastoralists and Graziers' Association grain chairperson Rick Wilson said State Treasurer Troy Buswell had joined the Federal Government in rejecting the Grain Infrastructure Group's recommendations put forward under the previous State Labor Government.

"These proposals were six years in the making, but the talks involved only Westnet Rail, Co-operative Bulk Handling, the Australian Rail Group and the Department of Planning and Infrastructure," he said.

"They were designed to protect an outdated and inefficient narrow gauge network which was created in an era of the single desk.

"In fact they denied people in the core agricultural areas of WA the opportunity to fund new viable new standard gauge road/rail infrastructure, which is needed in a deregulated environment.

"Given that WA was under funded by $1.1 billion under the Federal Government's infrastructure spending package, regional WA has missed a golden opportunity to acquire funding to upgrade the freight network to the 21st century."

The Australian Tourism Export Council congratulated the State Government for its support of the State's tourism industry.

ATEC managing director Matt Hingerty said measures included in the budget, including payroll tax relief, sustained funding for the statutory tourism authority Tourism WA and additional funding for marketing purposes meant that the labour-intensive inbound tourism industry would be able to protect local jobs.

ABC Goldfields WA Radio

Interview by Tara De Landgrafft (Summary courtesy of Media Monitors)

 

De Landgrafft interviews Mike Norton, president, WA Farmers Federation, about the WA State Budget, Norton says they got 'very little' out of it and the Agriculture Dept allocation is 'going backwards' Norton says there will be changes to the way the Dept operates with the new minister.

Norton adds the lack of funding for the rail freight network means there will be a massive relocation of grain onto roads.

Norton notes there is a 26 per cent increase in power charges over the next two years so inputs will need to be watched, adding water charges and indirect charges have also gone up.

Norton says they are working with CBH and WestNet at the moment and predicts if nothing is done about the rail freight network there will be 'wholesale closures' of railway lines.

Norton claims that as grain is moved onto roads the Govt will probably apply extra charges to those trucks, in the same way as they have for wood chips.

Norton says the only winner is the Hopetoun to Bremer Bay Road received some funding. Norton says that James Price Point 'fell off the radar' for live export, the Fremantle Port will be deepened and the rest of the port monies will go to Port Hedland.

Norton says the big winner out of the WA Budget was the building industry with money for housing and a 350 bed prison.

Interviewees: Mike Norton, President, WA Farmers Federation

Duration: 3.35

Media Monitors Summary ID: W00034704068

Calls for rail funds

Countryman

Much of the grains industry, local government, CBH and rail operators will be looking to today's State Budget for a commitment to save WAs grain rail network.

WestNet Rail general manager Paul Larsen said at the Grain on Rail campaign launch that it wanted the State Government to commit its $133 million share, to be invested over five years, to secure the network.

"A Government commitment to keep grain on rail would be a long-term, visionary demonstration of Government will to invest in our regions and invest in this vital export industry," he said.

"Further, it would unlock $133 million private investment waiting to be poured into regional WA- creating jobs, securing the future of the network, and providing significant environmental and road safety benefits."

WAFarmers grains section president Derek Clauson said it was essential that Government made a commitment to the rail rescue package in the Budget.

He said the rain network infra-structure needed urgent attention, and government investment would be a good outcome for the South-West.

However, the Pastoralists and Graziers Association remains opposed to government investment in the rail rescue package.

WA seeks $50m for grain train

Sineva Toevai - Lloyds List DCN

The Western Australian grain rail network needs $50m from this year's Federal Budget to kick start the first phase of the rail infrastructure upgrade.

WestNet Rail is seeking about $200m over four years from the federal and state governments to improve Western Australia's rail infrastructure.

"We can work with $50m in the first year as it's in line with our plans," WestNet chief executive Paul Larsen said.

"We'd be looking at upgrading about 300 km in year one of the four year project at around $150,000 a km."

Mr Larsen said the Albany zone, which is about 600 km of track, was the main "priority" for WestNet.

WestNet planned to replace some of the timber sleepers on the Albany track with steel ones, he said.

Last month WestNet launched the "grain on rail" initiative to create government and industry awareness of the urgency needed to fix WA's inadequate grain rail infrastructure and to ensure its sustainability.

The campaign stressed that rail rather than road, was the more economical, environmentally-friendly and the safest way of transporting $4.5bn of grain exports to the ports.

The future of grain transportation in Western Australia rests with government funding, Mr Larsen said.

"If we get a clear message from the government that it will not invest, then the future for grain on rail is not a good one."

WestNet Rail did not believe the $200m for the upgrades should come out of its pocket but if it did, it would more than likely pass such costs on to rail users.

This was a move that Mr Larsen believed would boost the appeal of roads as an alternative form of transport to rail.

Western Australia shipped a record 1.54m tonnes of grain in March, exceeding that of all the other Australian states combined.

About 65% of grain is currently transported by rail and 35% by road.

Should the grain rail network fail, the governments would need to cough up

about $350m for road upgrades and maintenance costs which is almost $100m more than if they upgraded the grain rail network, according to the grain on rail campaign.

CBH supports grain on rail

By Richard Simonatis, Albany Advertiser 

 

WESTNET Rail, with the support of the CBH Group, Australian Railroad Group (ARG), WAFarmers (WAFF) and the Western Australian Local Government Association (WALGA) recently launched a community information campaign to keep grain on rail, and in doing so, keep thousands of trucks off regional and metropolitan roads.

The Grain on Rail campaign is aimed at better informing the community about the value of our State's grain freight network. This includes highlighting the problems that could arise if millions of tonnes of grain were forced off rail and onto roads.

The campaign consists of a series of advertisements and an informative website designed to engage the community in the current debate and to further encourage the government to invest in the critical regional rail infrastructure.

This issue is of significant importance to WA grain growers. Through the CBH Group, growers have invested in the storage and handling infrastructure required to receive a 20 million tonne grain harvest.

This season, the grain industry felt the effects of the state of the rail system.

Urgent upgrades to a number of lines are needed if we are to maintain continuous supply of grain to ports and to ensure WA remains the supplier of choice for international buyers.

The CBH Group has always supported grain on rail. Rail is by far the most efficient, safest way to move large volumes of grain to port and we must ensure our industry has the transport infrastructure it needs to grow and meet market demand.

Growers can visit wwwgrainonrail. com.au to find out more about the program and to further understand the importance of keeping grain on rail.

Rail network fights to keep grain

Russell Quinn - WA Business News

THE current condition and future use of the rural rail system across Western Australia as part of the state's grain freight network continues to generate debate, as stakeholders seek a commitment from the government to support the ageing infrastructure.

Discussions between the government and stakeholders using the country rail network for the transportation of grain, amongst other commodities, are not new.

The rail network in WA has been in place for more than a century and during that time there have been many deliberations and various modifications to try and keep the system up to scratch.

The majority of grain exports in WA are transported across vast distances via rail, often directly to port.

Last month, WA shipped a record 1.54 million tonnes of grain, a figure far greater than all other states combined.

Last week, the operator of the rail network, WestNet Rail, launched a community education campaign to keep grain on rail rather than on WA roads.

WestNet Rail, with the support of Cooperative Bulk Handling and Australian Railroad Group, said the `Grain on Rail' initiative will keep hundreds of trucks off regional and metropolitan roads.

WA Farmers Federation and the Western Australian Local Government Association also signalled their support of the campaign, which will consist of a series of advertisements and a website.

In contrast, the Pastoralists and Graziers Association opposed the campaign, calling for a bigger investment in upgrading rural roads.

WestNet, CBH and ARG are now seeking commitments from the state and federal government to invest in the network.

WestNet Rail general manager Paul Larsen said $400 million, shared equally between state and federal government and industry, specifically CBH, invested over a five year period, would secure the network for the next period of its lifespan.

"$200 million is hoped to be spent on re-sleepering rail lines, $50 million on feeder roads and $150 million on rapid rail loading cells at CBH facilities," Mr Larsen said.

"The community needs to be better informed about the value of its grain freight network, and problems that would be created if millions of tonnes of grain is forced off rail and on to roads."

Transport Minister Simon O'Brien said the state's interests were enhanced if the majority of grain freight moves on rail as opposed to road.

But, he has ruled out any funding commitment at present, instead reiterating the network is currently fit for purpose.

"It's an issue that's waxed and waned for decades," Mr O'Brien told WA Business News.

"Not to say the state is not interested in investing in infrastructure, like rail networks or future rail networks, but we certainly haven't determined to do so and we certainly won't be doing so on the basis of an ad campaign.

"I understand in March the rail operators and CBH moved a record amount of grain.

"When that happens, that doesn't say to me that there is something wrong with the rail network."

Mr O'Brien thinks it's extraordinary for a rail network operator to talk about shutting part of their network and putting it on road.

"What they're doing though is they're saber-rattling to say that the freight task is to be moved on to road," Mr O'Brien said.

"That's not the first time they've done that."

Mr O'Brien also highlighted that under the current lease arrangements WestNet has responsibility for maintaining the rail network and the $400 million plan was not new, stemming from a five-year-old proposal.

"If it was such a fabulous proposal you wonder why the previous government didn't go anywhere with it during the boom years," he said.

Minister dismisses campaign

Lara Ladyman - The Countryman

The launch of a grains industry campaign to keep grain on rail has been met with a swift rebuke by WA's Transport Minister who has questioned the need for any rail "rescue" package.

Farmers, grains and rail industry representatives and local councils stood unified in their message that the "time to act is now" at last week's launch of a campaign to keep grain on rail and keeping thousands of trucks off regional and metropolitan roads. It aims to make people aware of the plight of the rail and the public safety fears if an extra 300,000 trucks a year were forced on to the road if lines had to close.

WAFarmers, the WA Local Government Association, CBH, Westnet Rail and ARG were all at the launch, where the State Government was called on meet a third share totalling $26.6 million a year over five years.

However, the Pastoralists and Graziers Association, which has refused to back the campaign, was noticeably absent. State Transport Minister Simon O'Brien was also not having a bar of what he billed as a "public relations stunt" and denied the need for a rescue in what may be a strong indication there is nothing in the May Budget from the State Government for the Grain Infrastructure Group (GIG) proposal, dubbed the rail rescue package. This is despite it being a National Party election commitment.

"I am not sure anything needs to be rescued," Mr O'Brien said. "The reports I have from both Westnet and my departmental people say that the grain rail network is fit for purpose."

When pushed on the issues that CBH had repeatedly raised about some trains having to operate at 10-15 km/h because the track was not up to scratch and that some tracks could not run trains during the day, Mr O'Brien did concede it had been the case for a number of years that there "have been limitations with what you can do with some parts of the grains rail network."

However, he also said that if the lease agreement to maintain the track fit for purpose had not been met he would want to know why and that would come out in the 2010 five-year audit.

Mr O'Brien dismissed farmers' and CBH's concerns that the state of the narrow gauge network and lack of certainty over the future of the network was threatening WAs four billion dollar grain industry. Further, he suggested, that CBH was pushing this because it wanted to re-establish a monopoly, reflecting sentiments also made by the PGA.

CBH chief executive Andy Crane said CBH was not looking for investment from government in its system.

"On the contrary we are looking for direction whether we should invest extra dollars in rail loading facilities or focus on moving grain by trucks."

A website has been launched to support the campaign at www.grainonrail.com.au.

Wheat rail competition gets more steam

By COLIN BETTLES - Farm Weekly

COMPETITION on WAs grain railways is an option and could pave the way to lower costs and faster transport of WA growers' crops to ports.

Industry speculation last week suggested Transport Minister Simon O'Brien had met with private rail transport companies recently to discuss the possibility of introducing competition on the lines.

Pastoralists and Graziers Association grains policy director Sheldon Mumby said Mr O'Brien met with Welshpool-based South Spur Rail Services to discuss expanding mining and grain services on the state's tracks.

Mr Mumby said South Spur had experience in grain transport and could help increase the network's viability by placing added pressure on the cost of freight services now provided by the Australian Rail Group (ARG), CBH and WestNet Rail.

"We recognise competition has to come in because the rail network is not an efficient system and is geared heavily, in favour of CBH at the moment," he said.

Mr Mumby said WestNet Rail was hiding behind the Grain Infrastructure Group (GIG) report because it wanted tax payers to fund the track.

WestNet Rail general manager Paul Larsen said his company was unable to stop others from using the rail network.

Mr Larsen said they wanted other users to enter the market because it would translate into revenue.

Mr O'Brien said there was already room for competition from anyone who wanted to run trains and offer rail services.

Mr O'Brien said other groups were fi-ee to use the rail network if they, wanted, and they, could apply to WestNet Rail to operate trains.

"I expect WestNet Rail would open the door and say come on in," he said.

"So it is not about me introducing competition.

"I have spoken to ARG about how keen I am to see more rolling stock in WA because that's an area where we are short, and I would love to see the business grow"

Mr O'Brien said he was at a loss to understand exactly what WestNet Rail was proposing with its request for government funding.

He said the GIG had requested $400 million, firstly in 2004, and had mooted closing almost half the WA grain rail network.

"It seems incongruous to me that the same people who wanted to close the track then through the GIG proposal are now proposing government funding to keep it open, and that is the smoke and mirrors I am talking about," Mr O'Brien said.

"This State Government wants to make sure we keep as much of the grain rail network open as possible. "And in due course, if we need to invest capital in upgrading rail or bringing in a different generationn of rail technology, maybe moving to standard gauge, we will do that.

"But they are all decisions for the future.

"For now we have a lease operator of the rail network and we expect them to keep the track in a fit for purpose condition."

Opposition transport spokeswoman Alannah MacTiernan said competition was already supposed to operate on the rail network.

However, she was not sure if multiple operators could be sustained by the industry.

"Even if there was competition, I am not sure that is really the solution to the problem because even the new entrants would need the track repaired to ensure it was able to sustain the competition," she said.

CBH chief executive officer Andy Crane said there was a lot of talk about competition for CBH and for the rail providers.

"Competition is good and we are not afraid of that," he said.

"However, at the moment the industry is working together with Government to find a specific solution to a problem that needs Government input and cross-industry support.

"This is not a time to be talking about the break up of industry into small competitive units."

WAFarmers president Mike Norton said introducing competition was not the issue.

"It is about re-sleepering the railway line and getting the tracks up to a condition where competition can be put on it," he said.

"At the moment, it would be just hopeless to bring in further competition unless we upgraded the core infrastructure.

"The tracks need re-sleepering and without them we have nothing."

Pingelly grower John Hassell said competition on the network would make a difference and help to keep ARG on its toes.

"If you put other trains on the track then perhaps you would get ARG screaming a bit, and it might work but I don't know if that is the only the solution," he said.

"I think it would be good, and it would not hurt ARG to have some competition.

"ARG put their freights rates up 29 per cent last year after they promised they would 't bring the freight rates up, so I don't think it would hurt to have a bit of pressure put on ARG."

Dr Crane said a decision on the funding needed to be made in the next budget.

He said CBH had been talking with government for two years on the GIG plan.

"People have seen the ships sitting off the coast and their immediate reaction is that the ports aren't coping. But that's not the case," he said.

"The problem is the bottleneck in the pipeline between the grain delivery sites and the ports.

"CBH can easily out load a 20 million tonne crop, and our ports can out load two million tonnes a month, which is what our industry wants. But we just can't get it to the ports quick enough."

Mr Hassell said farmers were disappointed to see trucks coming into their local grain delivery bins and taking grain away, instead of it going to port on trains.

Minister quiet on rail funds

Farm Weekly

WA Transport Minister Simon O'Brien will not say if the State Government's next budget includes its share of the $400 million requested to upgrade Wheatbelt rail.

"I can't comment on budget matters and what's in it, but at this stage it is our determination to keep the rail network functioning and to hold the operator to their lease requirements," he said.

"We want to make sure WestNet Rail keeps the WA grain freight network fit for purpose, as it was when we gave it to them.

"And if they have any other proposals, then they need to bring them to Government.

"That's how we deal with these things, not by putting adverts in the newspaper."

Mr O'Brien said part of the Grain Infrastructure Group (GIG) proposal was about closing large parts of the rail network.

He wasn't interested in doing that unless there were compelling reasons why the community and the growers wanted to do it.

He said it was important to be wary of the "smoke and mirrors" being used in the public relations campaign launched last week.

"WestNet Rail mounted a public relations stunt and started a campaign designed to get State and Federal government undertakings for investment in the rail network," he said.

"Their motives for that could be many and varied.

"But when you look at what is being proposed, and inquire into it, the various claims that have been made, there is a bit of smoke and mirrors about all of this.

"People in organisations are trying and set themselves up for life post-deregulation and perhaps put themselves into monopoly positions.

"Have no doubt that some of the arguments being mounted by some of the people commenting on this are self-serving.

"The GIG proposal, in the shape that it is now, that plan originates back in 2003-04.

"I have a dialogue with the Federal Government on a range of infrastructure matters and they are doing an inquiry into the GIG proposal through KPMG, to try and validate some of the claims being made there.

"However, if the GIG proposal was such a good proposal, why wasn't it embraced by the former government in boom times when we had plenty of money for infrastructure?

"Why didn't they put a cent towards it in the last budget?"

Mr O'Brien said he wanted to keep open as much of WA's grain freight network as possible.

"As Transport Minister, I want to make sure we keep the bulk of the grain freight task on rail and rather than road, and I don't hear anybody else saying any different," he said.

"To do that, I will work with WestNet Rail, under the terms of the lease agreement that's been in existence since December 2000 to ensure that our rail network remains fit for purpose.

"In all of my dealings with WestNet Rail, and my departmental officers with responsibility in this area, I am assured that the network is fit for purpose.

"Now that doesn't mean that it's the most heavy-duty rail network on the planet.

"But it is certainly fit for the purpose of the grain rail freight task."

Release rail network report: PGA

By COLIN BETTLES - Farm Weekly

THE Pastoralists and Graziers Association (PGA) have called for the immediate release of a Federal Government report into the current condition of WA's grain freight rail network.

If the report is not released, the PGA wants the State Government to conduct an independent and public review of the network.

PGA Western Graingrowers president Rick Wilson made the calls after other grain industry groups launched a campaign last week that seeks funding for the network.

The campaign is designed to pressure the State Government into making an urgent commitment for its third-share of the $400 million requested to repair the ageing lines.

The campaign is being run by Westnet Rail and CBH with support from the Australian Railroad Group (ARG), the Western Australian Local Government Association (WALGA) and WAFarmers.

It will raise public awareness about the importance and the potential dangers of putting grain off rail and on public roads.

The groups have warned Western Australians may be forced to share their roads with 300,000 additional trucks each year if the State and Federal governments fail to commit to the funding.

Mr Wilson said the PGA did not support the campaign.

He said the PGA had concerns about the findings, recommendations and general thrust of a Grain Infrastructure Group (GIG) report.

The report recommended the $400 million investment is shared equally between industry and the governments to repair the network over five years.

It also outlined potential track closures and said the funding would secure the network's long-term future.

Mr Wilson said its findings needed more scrutiny.

"WAFarmers and CBH need to explain where the industry's share of this $400 million is going to come from," he said.

"Are they committing growers to what is really just a $133 million patch-up job?

"We have not seen the KPMG report so we have no idea what it says about the condition of the track.

"That's why we want the Federal Government to release it.

"In addition, we want the State Government to conduct a thorough, independent review of the rail system in WA, and CBH's involvement in it, as soon as possible."

Mr Wilson said an independent analysis of the tracks' conditions was needed, separate from the individual views of the GIG participants.

"We need an analysis of the track that looks at the most efficient way of taking grain to port for WA graingrowers over the next 20 years," he said.

"It needs to take into account all stakeholder views, but does not weigh one group's views over those of another.

"If the KPMG report is not wide ranging enough, and we have not seen it yet so we don't know what it actually says, then we need the State Government to do another report that is comprehensive, thorough and independent."

Mr Wilson, a Katanning grower, said the PGA wanted to see the most efficient system for moving grain from up-country sites to port.

"Let's look at upgrading key parts of the network, and spend taxpayer money on upgrading standard gauge lines and close other parts of the narrow gauge network that are never going to be viable," he said.

"Services like new standard gauge links will enable train turnarounds of 20 hours or less between regional stores and ports such as Narrogin and Albany, with upgraded road services feeding into them.

"The provision of better roads, with more passing lanes to service these new lines, would not only vastly improve efficiency, but also public road safety and offer major benefits for non-grain freight and traffic."

Mr Wilson said it was mischievous of the GIG to mount a campaign based on warning city people about the "horror and dangers" of driving grain trucks on country roads.

The GIG report has also suggested government regulation to move grain transport to rail to keeping it off roads.

One of the report's recommendations is to support mechanisms that ensure tonnes of grain which should be moved on rail remain on the lines, regardless of any favourable market pricing for taking it to port by road.

Mr Wilson said the PGA did not want to see more grower investment enhancing former monopolies.

"The clear need is for new least cost pathways for all freight services that also support WAs developing role as a major supplier of grain to the world," he said.

"Fortunately, we believe this is a vision shared by the State and Federal governments."

A spokesperson for Federal Infrastructure Minister Anthony Albanese said the Government was currently finalising the $3m grain freight rail review in WA.

"The outcome of that review will inform future decisions by Federal and State government about this issue," the spokesperson said.

MEDIA RELEASE

23 April 2009

Industry Launches Campaign to Keep Grain on Rail

West Australians will be forced to share the road with 300,000 additional trucks per year if Government fails to act now to upgrade the State’s grain freight rail network, a new industry campaign will inform the public today.

WestNet Rail, with the support of Cooperative Bulk Handling and Australian Railroad
Group, will this morning launch a community information campaign to keep grain on rail, and in doing so, keep thousands off trucks off regional and metropolitan roads.

“The community needs to be better informed about the value of its grain freight network, and problems that would be created if millions of tonnes of grain is forced off rail and onto roads,” said Paul Larsen, General Manager WestNet Rail.

“The campaign, which consists of a series of advertisements and an informative website will engage the community in the current debate to further encourage Government to invest in the critical regional rail infrastructure,” he said.

The public is encouraged to log on to www.grainonrail.com.au to find out more.

“If you live on any of the transport routes through to a port – whether that’s Kwinana,
Albany, Geraldton – you would see a huge increase in the amount of road traffic during harvest,” said Mr Larsen.

Cooperative Bulk Handling estimates that the impacts on the port of Kwinana alone could mean as many as 50,000 additional truck trips per harvest.

“Both State and Federal Government have publicly stated their strong intentions to support significant nation building infrastructure projects in these difficult economic times,” said Mr Larsen.

“Industry stands ready to commit its $133 million share, and is seeking commitments from both the State and Federal Governments to match its investment. Our campaign is about better informing people of the importance and the urgency of this investment,” said Mr Larsen.

“$400 million - shared equally three ways between industry, State and Federal
Government and invested over a five year period – will secure the network for the next period of its lifespan.

“A Government commitment to keep grain on rail would be a long-term, visionary
demonstration of Government’s will to invest in our regions and invest in this vital export industry,” said Mr Larsen.

“Further, it would unlock $133 million private investment waiting to be poured into regional Western Australia – creating jobs, securing the future of the network, and providing significant environmental and road safety benefits.”

Keeping grain on rail:

· Will keep 300,000 trucks off the road – ensuring safer driving conditions for West
Australians in regional areas, and on the roads feeding ports (including Kwinana,
Geraldton and Albany).

· Saves the Government having to spend $400 million on road infrastructure to
support the grain task, should it have to switch transport modes.

· Would demonstrate the Government’s stated commitment to invest in regional
communities and investing in national building infrastructure projects.

· Provides grain growers with the most efficient transport option for moving their grain
to port for export

· Supports the State’s critical $4.5 billion grain industry

ENDS

Media Contact
Travis Beasley
0407 770 318

Paul Larsen, General Manager WestNet Rail addresses the media.

 

Ken Potts - Executive General Manager of Australian Railroad Group, Mike Norton - President WAFarmers & Michelle McKenzie - Executive Manager Infrastructure WALGA.

 

John Cleland, Chief Executive Officer of WestNet Infrastructure Group delivers his speech.

 

Dr Andy Crane, Chief Executive Officer CBH Group takes questions from the media.

 

Paul Larsen, General Manager WestNet Rail talks about the importance of keeping grain on rail.

Grain on Rail makes sense: CBH Group

The CBH Group has thrown its support behind Westnet Rail’s “Grain on Rail” initiative. The program is designed to raise awareness of the need to keep grain on rail and is supported by the Australian Railroad Group (ARG), the Western Australian Local Government Association (WALGA) and the WA Farmers Federation (WAFF).

At the launch of “Grain on Rail” in Forrestfield today, CBH Group CEO, Dr Andrew Crane said immediate action is required to ensure the rail network can support the volume of grain that needs to be moved to port each year in Western Australia.

“Rail is by far the most efficient and safest way to transport grain to port, particularly given the long distance hauls and the big tonnages being moved in a good season.”
However, Dr Crane said urgent upgrades were required in order to ensure 70 percent of the state’s export grain harvest is moved by rail.

“In the newly deregulated marketing environment, marketers are demanding a land transport system that is flexible, cost effective and reliable enough to deliver up to 2 million tonnes to port in the peak period after harvest.

“However the current state of the rail network is unable to deliver this, putting more trucks on roads and effectively placing our $4 billion export industry at risk of losing sales.

Last month, WA shipped a record 1.54 million tonnes, far more than all other States combined and yet the market may at times require an additional 500,000 tonnes to be out-turned a month.

In attempting to meet increased demand for shipping in the current season, Dr Crane said that in the past two months alone, there were 5,000 more road train movements than ever seen on our roads before.

“The safety implications of road movements of this magnitude speak for themselves,” he said.

“An upgraded rail system would keep additional trucks off roads and enable our grain industry to take advantage of international demand.

“The time to act is now. Governments and industry must come together to ensure our rail network is sustainable now and in the future.”

Dated: Thursday 23 April, 2009

Media Contact: Amber Anderson, Media Advisor CBH Group

Ph: (08) 9237 9820 M: 0404 544 184

#767167

http://www.abc.net.au/rural/wa/content/2009/04/s2548759.htm

Grain industry sweating on Government's decision

By Paul Larsen, general manager, WestNet Rail

Tuesday, 21/04/2009

Stakeholders in Western Australia's grain industry are nervously awaiting an announcement on government funding for the state's grain rail network.

For the last six weeks representatives from the federal government have been on a fact finding mission, quizzing industry as to why it needs $200 million to fix the system.

Industry has already said that if funding isn't made available, rail lines in some areas will be closed.

Paul Larsen from WestNet rail, the group in charge of WA's rail line, says he's feeling positive after meeting with the government.

A spokesperson from the Minister for Transport and Infrastructure says the WA Grain Freight review is expected to be completed by the end of this month.

Discussions are ongoing, as required, with all key stakeholders on the demand side and the supply side of the WA grain freight network.

In this report: Skye Shannon