Tasmania has re-allocated $33m previously set aside for a direct international shipping service into rail infrastructure.
This funding will go to secure $59.8m from the Commonwealth for the Freight Rail Revitalisation Program, which requires a 50% co-contribution from Tasmania.
The Commonwealth announced its funding in the Federal Budget in May.
TasRail chief executive officer Damien White said the funding would deliver further improvements to the safety and reliability of the network and provide an increased level of certainty for TasRail’s customers.
“It’s certainly good news for our customers as well as those currently considering a shift from road to rail,” White announced at the time.
The funding switch is justified by the state, which says the program will better enable Tasmanian freight to reach export markets by moving containerised freight, and transporting bulk goods from points of extraction, to the island’s ports for shipping.
TasRail will direct the project which will upgrade major lines on the Tasmanian rail network through selective re-sleepering, replacing old rails and bridges and strengthening culverts / drainage.
Already this year, co-investment by the Federal and Tasmanian government has enabled TasRail to progress its new $7m freight terminal development at George Town, and contribute to the $12m Burnie Port Optimisation Project in partnership with TasPorts and its private enterprise partner, Toll.
TasRail currently operates a freight and logistics hub at the port of Burnie which is the terminus for bulk ore from all of TasRail’s customers in the mining sector.
The company is also responsible for the Burnie shiploader at berth 5, which is the only common-user bulk-ore loading facility in the state.
The company currently hauls 68% of contestable land freight on the Hobart to Burnie strategic freight corridor and 25% of Tasmania’s total land freight task.
The international shipping service initially was set to receive the $33m in funding but was made redundant by the Federal government’s decision to extend the Tasmanian Freight Equalisation Scheme to international exports.
This article originally appeared in Rail Express sister publication, Lloyd’s List Australia.
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