The Australian Logistics Council has urged Labor to ensure a planned inquiry into route selection and financing arrangements does not delay construction of the Inland Rail project.
Labor infrastructure spokesperson Anthony Albanese on April 23 formally announced that Labor – if sworn into Government following the May 18 election – would order an independent inquiry into the Inland Rail project, which is being delivered by the Australian Rail Track Corporation.
Albanese has long been critical of the financing arrangements for Inland Rail, whereby the Coalition committed a $9.5 billion equity injection into the ARTC to fund the build.
While the equity model means the bill for Inland Rail can be kept off the Budget’s balance sheet, it also means it is expected to make a return for the Federal Government. Albanese has pointed out that by using the ARTC as a conduit for this delivery, the Coalition can effectively leverage the ARTC’s full balance sheet in demonstrating that future return.
Albanese has also partnered with farmers along the planned route, who have criticised certain aspects of the route selection process, and the decisions subsequently made.
The Queensland Government has so far yet to sign the inter-governmental deal to facilitate the delivery of Inland Rail, reportedly due to anger from farmers impacted by the route in the state’s south east.
But whatever the results of the potential inquiry, ALC chief executive officer Kirk Coningham says any delays to construction of Inland Rail will be felt by freight logistics operators and local communities already making preparations for the project.
“The conduct of any proposed inquiry must not be allowed to slow the pace of construction on Inland Rail, which is already underway,” Coningham said.
“We also note the proposed inquiry would be asked to examine possible port connections at either end of the Inland Rail route. ALC has consistently emphasised that finalising a dedicated freight rail connection to the Port of Brisbane as soon as possible will be essential to ensure full benefits can be derived from the substantial public investment being made in Inland Rail.
“We have also noted that there needs to be a focus on upgrading the current rail connection from Truganina to the Port of Melbourne, as well as on connections from Inland Rail to key NSW ports and intermodal terminals. However, in the event of a change of government, the proposed inquiry should not be a reason for any delay to overall construction of the Inland Rail project.”
In an opinion piece published by 10 Daily this week, Albanese stressed that Labor fully supports the Inland Rail project as a whole.
But he said full value for taxpayers could only be realised with proper planning and transparency.
“The project’s financing arrangements are questionable and the planning and public consultation have been botched so badly that farmers and affected communities have become openly hostile to a project which, delivered properly, would be a positive for the nation,” Albanese wrote.
“When Labor was last in Government we invested $900 million in the project to upgrade sections of existing rail lines that will be part of Inland Rail and to advance planning for other sections that need to be built from scratch.
“However, as NSW Nationals Leader John Barilaro told a meeting of farmers in Dubbo in February, Inland Rail has “barnacles’’ on it that need to be sorted out by the Federal Government.”