Country mayors voice concerns over cessation of Inland Rail

The Board of the Country Mayors Association of NSW (CMA) has met with the Minister for Infrastructure, Transport, Regional Development and Local Government, Catherine King, to address industry and regional concerns over the cessation of the Inland Rail project north of Parkes.

The meeting follows mounting frustration from local councils and private enterprise regarding the sudden halt of the federal mega-project, which was originally intended to connect Melbourne and Brisbane.

“Following the government’s announcement, there was a unanimous resolution passed at our last CMA meeting to seek a meeting with Minister King to raise the many concerns our members have about the decision to terminate the Inland Rail at Parkes,” said CMA Chairman and Temora Shire Mayor Rick Firman OAM.

“There is ample evidence of the millions of dollars that both local government and private enterprise have invested in anticipation of the Inland Rail’s completion. The truncation of the project has left many with large investments, made on the back of government promises, with literally nowhere to go.”

Cost blowouts v regional devastation

The budget escalation of the project – which ballooned from an initial $8.4 billion in 2017 up to an estimated $45 billion – was a key talking point during the summit. However, the CMA highlighted that the financial recalibration has left regional communities and supply chain investors completely stranded.

“We were able to have a frank discussion with the minister about the decision. It is very evident that the budget, which started with an original allocation of $8.4 billion in 2017, rising progressively since then to $45 billion, deserves to be questioned,” Firman said.

“However, there is no getting away from the fact that the government’s decision has left many between Parkes and the Queensland border, particularly Narromine, Narrabri, and Moree, feeling devastated.”

During the briefing, Minister King advised the CMA Board that the federal government’s rail priorities will shift toward optimising east-west linkages from Parkes through to Perth, as well as connections from Parkes to Port Botany and the Port of Newcastle. The minister also noted that the government aims to preserve the existing north-south corridor alignment where possible.

Alternative rail solutions

While disappointed by the termination of the full alignment, the CMA is looking at alternative freight configurations to save the billions in sunk costs already directed into the project. The association is urging the government to consider a modified interstate network by using the National Intermodal Corporation.

“While we are very disappointed with the decision, we are hopeful that the minister’s advice that the government is looking at working with the National Intermodal Corporation on intermodals that could feed into the Inland Rail will provide a viable fallback position for some,” Firman said.

“The CMA will continue to lobby for better outcomes for our affected members and the communities they represent. We want to explore other possible scenarios for its completion – if it cannot provide a port-to-port freight solution because of the cost, why not an intermodal-to-intermodal approach with the rail line running from Beveridge in Victoria to Ebenezer in Queensland?”

The CMA’s push for a terminal at Ebenezer aligns with Dr Kerry Schott’s landmark 2023 independent review of the project. Dr Schott’s report identified Ebenezer as the premier terminal option for maximising rail freight competitiveness, meeting service requirements, and aligning with local land use and end-user demand.

The CMA maintains that cutting the line short at Parkes shortchanges the entire freight sector and the Australian taxpayer.

“We do not believe that simply deciding to truncate the project is providing the community, transport operators or all three tiers of government with the best outcomes, either economically, socially or environmentally. Given the sunk costs already incurred, there must be a way to get a better return on investment,” Firman said.

“We look forward to continuing to speak with the minister about pathways to success for this project.”