More money from the New South Wales government is expected to kick-start Stage 2 of the Parramatta Light Rail project. Read more
In a flurry of infrastructure funding announcements, the federal government has only allocated funding for one new rail project, a new stop on the Canberra light rail line in Mitchell.
The stop, at the intersection of Flemington Road and Sandford Street, will be the 14th for the network. The federal government and ACT governments will each contribute $6 million.
The funding comes from the $1.5 billion of infrastructure funding announced by the Prime Minister Scott Morrison on June 15. As of June 22, roughly a third of the funding had been announced, with the light rail stop in Canberra the only rail project receiving funding.
In his address on June 15, Morrison noted that $500m of the funding would go towards road safety upgrades, and $1bn would be for non-mode specific “shovel-ready” projects that were identified by the states and territories.
So far, funding allocated under the ‘shovel-ready” project stream has been distributed to Queensland with $204.3m, Western Australia has received $96m, $13.6m to the NT, and $16m in the ACT.
Out of the hundreds of millions allocated to “shovel-ready” projects, $11m will go towards non-road projects, with $6m for the Canberra light rail stop and $5m for pavement rehabilitation along Northbourne Avenue, also in Canberra.
A federal government spokesperson said that further road and rail commitments to be funded under the $1.5bn infrastructure package will be announced in due course.
ACT Minister for Transport Chris Steel said that work would soon get underway on the new tram stop.
“Design is being undertaken on a 14th stop on the light rail line and we will work with Canberra Metro to build the station at Sandford St over the next year,” he said.
“The new light rail stop on Flemington Road at Sandford Street will provide better access to the Mitchell business district in addition to the existing stop at Well Station Drive.”
Regional communities across Australia are set to benefit from $13.3 billion in gross regional product due to the Inland Rail project.
According to an eight month study by EY, Inland Rail can add up to $13 billion in today’s terms to the value of goods and services produced over its first 50 years of operation.
The report was undertaken throughout 2019 and released by the Deputy Prime Minister in March 2020. The report builds on the projected 16,000 jobs and $16 billion boost to the national economy outlined in the 2015 Inland Rail Business Case.
Michael McCormack, Deputy Prime Minister and Minister for Infrastructure, Transport and Regional Development said Inland Rail is going to draw industry to regional Australia where the enhanced freight rail network will connect companies and consumers both domestically and internationally
“What the EY report is assessing is the additional benefit to communities from the opportunities that arise for local businesses and people from the completion of Inland Rail,” he said.
“For example, it might be a cereal manufacturer whose freight costs drop by 30 per cent allowing the employment of additional staff, or it might be the expansion of regional processing that takes advantage of Inland Rail’s lower cost and greater capacity and connectivity.”
EY looked at case studies, international examples, and local knowledge to determine the potential for investment, employment and growth along, and beyond, the alignment.
“The benefits of this project are going to be felt across generations. Right now, young people from regional areas are directly benefiting from working on Inland Rail’s construction including the 656 locals who have worked on the project in the Parkes region and the more than $75 million spent with local businesses,” he said.
“Inland Rail gives these communities new ways to grow and rebuild with better connections to interstate and international markets, new jobs and a stronger case for attracting public and private investment,” he said.
Mathias Cormann, Finance Minister said the first wave of developments are taking shape.
“We are very confident that many other regional towns in and around the Inland Rail corridor will secure further significant investment, development and job creation opportunities for their towns on the back of this exciting project,” Cormann said.
The Department of Infrastructure, Transport, Regional Development and Communication said in a statement that this work was tested with industry, governments, and communities with the study team heading to Narrabri, Toowoomba, Wagga Wagga, and Wodonga to get people’s views.
That input shaped the forecasting and tested the study’s early findings.
“We thank the communities, industry groups and local government who helped shape this work with local data and evidence,” the department stated.
The report followed another week of speculation on the impact of flooding on the regional rail link’s route via the Condamine floodplain. Shadow Member for Infrastructure, Transport, and Regional Development Catherine King said that the government needs to consider hydrological modelling commissioned by farmers close to the alignment.
The Australian Rail Track Corporation (ARTC) released a statement standing by its own modelling, which it said showed that the selected route is the right one.
“The science tells us there is no premise to change the route based on flood modelling and the economics tells us that this route was the most viable, cost effective option,” said ARTC Inland Rail chief executive Richard Wankmuller.
Local concerns have been incorporated into the design of the route, said Wankmuller.
“It’s important governments and the community have confidence in the engineering and science that allows countries like Australia to deliver world-class infrastructure.”
As part of the deal signed between the federal and Queensland governments which gave the Border to Gowrie section the go-ahead, an international review panel will review the floodplain modelling.
David Borger, executive director of the Western Sydney Business Chamber said Stage 1 of Parramatta Light Rail is at risk of being a “white elephant” due to funding concerns for future stages of the line.
The Western Sydney Business Chamber is urging the NSW government to allocate funding in the NSW budget to get the next stage of the Parramatta Light Rail ready for construction.
Borger said the NSW government committed to building a Parramatta Light Rail network and the business community don’t want to see Stage 1 put at risk of being a “white elephant because the NSW Government has shelved the next stages”.
“We understand that Parramatta Light Rail Stage 2 is awaiting an ‘investment decision’ by the NSW cabinet. My message to government ministers is give the project the green light and let’s get on with connecting Sydney’s central city with its surrounding suburbs,” he said.
Borger said stage 2 of Parramatta Light Rail ticks so many boxes when it comes to a good public transport project and it builds on the taxpayer investment in Stage 1.
In a Business NSW’s NSW Budget Priorities report, released as a pre-budget submission this month, Parramatta Light Rail Stage 2 is listed an infrastructure priority.
Business NSW executives stated in the report that Parramatta Light Rail Stage 2 has reached the point in its development where further meaningful work needs to be sustained by a government commitment to move forward with the project.
“This budget should allocate funding to allow the next stage of project development to be completed, with an eye to moving towards construction as Stage 1 is completed,” Business NSW executives said.
Infrastructure Australia has also noted the importance of public transport to Parramatta CBD, but Business NSW executives said the next major deliverable that can improve matters has been stuck in a holding pattern since the completion of early business case development.
Connecting hubs of major activity at Parramatta and the Sydney Olympic Park, and joining up the heavy rail, Metro and ferry transport networks, Light Rail Stage 2 serves a fast-growing part of the city.
Borger said the true value of light rail is when it is a network.
“The NSW Government may very well be needing some economic stimulus projects towards the end of the year. Getting Parramatta Light Rail Stage 2 shovel ready would be a common sense decision,” he said.
A spokesperson for Parramatta Light Rail said a final Business Case for the second stage of Parramatta Light Rail is currently being considered by the NSW Government, with an investment decision to follow.
Planning work is currently being further developed and informed by consultation with the community, stakeholders, other NSW Government agencies and transport projects including Sydney Metro West.
In October 2017, the NSW Government announced the preferred route for the second stage of the Parramatta Light Rail, which will connect Stage 1 and Parramatta CBD to Ermington, Melrose Park, Wentworth Point, and Sydney Olympic Park.
It will have 10-12 stops over a ten-kilometre two-way track, with travel times of around 25 minutes from Sydney Olympic Park to Camellia, and a further eight minutes to Parramatta CBD.
Greg Miller, KiwiRail Group chief executive said there is far greater demand for rail services than the group is able to supply.
In his address to the Transport and Infrastructure Select Committee on the Land Transport (Rail) Legislation Bill on February 20, Miller explained why 92 per cent of freight in New Zealand does not travel by rail.
“The reason is simple. Our rail lines and our freight systems are so run down that it has taken a huge level of commitment from both the Government and from our team to start moving the company into a position where it can return to profit,” he said to the committee.
The NZ Ministry of Transport stated that the objective of the Land Transport (Rail) Legislation Bill is to implement a new planning and funding framework for the heavy rail track network owned by KiwiRail.
Miller said the draft New Zealand Rail Plan plays an important role in KiwiRail’s turnaround plan.
“The draft NZ Rail Plan lays out a pathway for sustainable planning and funding that will allow rail to play the important role it should in the country’s transport system,” Miller said.
Miller said the group has failed to meet demand into growth due to historic short term decisions that have seen cost cutting resulting in lack of drivers, locomotives, wagons and fully usable track.
“We have had no capacity for market reclamation,” he said.
Miller said to the committee that KiwiRail’s strategy to return to profitability and deliver a good return to our shareholders is threefold. We aim to run more services, get the equipment we need to be able to grow capacity, and put in place the technology that will enable us to track freight, profit, and loss centres.
Miller also addressed road sector concerns, telling the committee the draft New Zealand Rail Plan is a way to return rail to complement road.
“Freight moved by rail results in 66 per cent lower carbon emissions than freight moved by road. Rail freight is not just efficient long distance. Every one of our customers has a lens on the environmental impact and incorporates these benefits into every rail decision made,” he said.
“With increasing freight volumes, growing road congestion and maintenance costs and the need to meet emission reduction targets, rail is a critical part of our transport system.”
This follows Greater Wellington Regional Council’s Transport Committee agreement to reduce transport-generated regional carbon emissions and invest more funding for regional rail on February 20.
Roger Blakeley, transport committee chair said the committee agreed to strategic priorities for the 2019-22 triennium.
One of the key performance measures for these targets is the contribution to a 30 per cent reduction in regional transport-generated carbon emissions by 2030.
“Contributing to the regional target of a 40 per cent increase in regional mode share from public transport and active modes, [rail] will be the major contributor to a reduction in carbon emissions,” Blakeley said.
On Tuesday KiwiRail welcomed the NZ government decision to use the Provincial Growth Fund to invest $9.6 million in the Kawerau Container Terminal (KCT).
Miller said KiwiRail’s role will be to build the new rail siding and to run week-day train services beginning in 2021 between Kawerau and Port of Tauranga.
“The siding opens the way for containerised exports to travel directly to Port Tauranga from Kawerau,” he said.
“Export containers from Norske Skog, Sequal Lumber, and Waiu Dairy will underpin the new train service as well as creating capacity for other exporters in the region.
“This is part of road and rail working together in a much more integrated way, improving efficiency and saving costs.”
The project is expected to take about 18 months to complete.
Over $55,000 in community donations from Inland Rail will be granted to groups across the whole rail corridor in regional Queensland, New South Wales and Victoria.
The Maibin Jaihilah Yahgilah men’s cultural group from Beaudesert, Queensland will receive $4000 in the third round of the Inland Rail Community Sponsorships and Donations program.
The funds will be used for the completion of an amenities block on a five-hectare site that has significant cultural ties to Mt Warning (Wollumbin) and the Mununjali people dating back thousands of years.
Rebecca Pickering, Inland Rail Director of Engagement, Environment and Property said more than $180,000 has already been allocated in the first three rounds of the program to help communities through a range of events, projects and activities.
“We congratulate successful recipients for this round which include sporting groups, schools, men’s groups, and Indigenous Cultural Groups. Funded projects represent a diverse range of initiatives such as upgrading community facilities, skills building in the areas of STEM education and inclusive events,” Pickering said.
Sharne Iselin, president of the Maibin Jahyilah Yahgilah men’s group said they meet every month to discuss challenges and barriers and how to overcome them.
“The work we do is really important and sadly it’s something that is badly needed in today’s society. We do all we can to support our community empower and strengthen local Mununjali cultural values and principles,” Iselin said.
The next round of funding applications for the program is now open and eligible groups can still apply for funding of between $1000 and $4000 for their project or service by Friday 31 January.
Inland Rail said in a statement that applications are encouraged from individuals and organisations in regional centres along the corridor, to ensure regional areas receive maximum benefit.
People are invited to visit the Inland Rail website to apply for a donation and for further information on the program.
A draft plan would facilitate a long-term planning and funding model for rail in New Zealand, with the aim of boosting passenger figures and freight share on rail to help achieve the government’s zero-emissions goal by 2050.
The draft New Zealand Rail Plan, released by the Ministry of Transport on December 13, outlines the government’s long-term vision and priorities for New Zealand’s national rail network.
It stems from the recommendations of the Future of Rail review, a cross-agency project led by the Ministry of Transport working alongside KiwiRail, Waka Kotahi NZ Transport Agency, and the Treasury.
The plan aims to put in place a sustainable approach to rail funding over the longer-term.
Key to this is the Land Transport (Rail) Legislation Bill, presented to Parliament on December 12.
The Bill proposes the implementation of a new planning and funding framework for the heavy rail network owned by KiwiRail. It also proposes funding for the rail network from the National Land Transport Fund, and giving rail ministers decision-making rights on funding rail network investments.
The Bill would make amendments to the Land Transport Management Act 2003 and the Land Transport Act 1998, to implement the new framework.
It also introduces track user charges.
“After years of rail being run into the ground by the previous government, our government is getting rail back on track,” deputy prime minister Winston Peters said.
“We need our rail network to be able to cope with New Zealand’s growing freight needs. Freight is expected to increase by 55 per cent by 2042. Freight carried by rail not only reduces wear and tear on our roads, it reduces carbon emissions by 66 per cent.”
This year’s federal budget included $1 billion in funding for the national freight rail network, $741 million of which for the first phase of works to restore a reliable, resilient and safe freight and tourism network.
“Passenger rail is also the key to unlocking gridlock in our largest cities and boosting productivity,” transport minister Phil Twyford said. “The more people take the train, the more our roads are freed up for those who have to drive.
“Building alternative transport options for people and freight is a vital part of achieving the government’s goal of net zero emissions by 2050. It also helps make our roads safer by reducing the number of cars and trucks on our roads.”
The draft plan will become final when the next Government Policy Statement of Land Transport is finalised in the second half of 2020.
Until then the government is inviting feedback from industry and community groups.
Minister for infrastructure, transport and regional development Michael McCormack and shadow minister Catherine King have highlighted their parties’ distinct transport commitments at AusRAIL Plus 2019.
“It’s been a strong and positive year for rail. Since I last spoke to you, much has happened in two key areas over the past year. With a focus on freight, we are on track to deliver the Melbourne to Brisbane Inland Rail, which is a world class infrastructure project,” McCormack said.
“With a focus on commuters, in the past year the government has made a significant commitment to faster rail and we are investing heavily in metropolitan rail with our state government partners, through projects such as the Sydney Metro Greater Western in NSW and Metronet in Perth, Western Australia. Over the year, we also saw the 20-year National Freight and Supply Chain Strategy and National Action Plan agreed by all governments.”
McCormack highlighted Inland Rail’s latest milestone.
“The first section of greenfield track, the North West connection, opened in August with the first trains already running on this track. This new link is scheduled to join up with the newly upgraded Parkes to Narramine line by mid next year.
“Almost 900 people worked on this section and local businesses are benefitting, in concrete, transport, fencing, earth moving, drainage, electrical and other suppliers to the tune of $41.2 million in local contracts, so we’re well on track with Inland Rail.”
In terms of passenger rail, McCormack highlighted government’s Faster Rail Plan which will be overseen by a new National Faster Rail Agency. There are business cases already underway.
“We’ve committed $2 billion to help deliver faster rail between Geelong and Melbourne, and we’re getting on with our $5 billion commitment to deliver the Melbourne Airport Rail Link,” McCormack said.
In response, King called on the government to use its current infrastructure spend to leverage better investments in training and new technology.
“Strong investment gives government as seat at the table in planning our cities and regions,” King said.
As part of this King says the opposition intends to identify and respond to the impacts of these investments on the workforce.
“With rapid change in technology deployed in transport networks, what is often overlooked is the impact of this change on the workforce. The pace of change can often be confronting. Technology can be our ally in achieving greater productivity, and it does not always have to come at a cost to jobs.
“Transitioning jobs in industries like transport doesn’t just happen, it has to be planned.
What’s why last month, Labour leader Anthony Albanese announced Labour in government will establish Jobs and Skills Australia.King described the party’s vision of a workforce forecasting and research under a similar model to Infrastructure Australia.
The body would assess the skills requirements for services where “government is the major funder and where demand is expected to change”, such as transport. It would undertake workforce and skills analysis, and conduct capacity studies. It would be expected to review the adequacy of the training and vocational system.
“This will include the manufacture, operation and maintenance of our public transport network,” said King.