Victoria’s rail will suffer if commission gets its way: PN

<p>Victoria’s rail network would not be viable under plans by the Essential Services Commission (ESC) to limit access, Pacific National said today (Wednesday, May 3). </p> <p>Pacific National maintains ownership of Victoria’s regional rail network under the terms of a 45-year lease from the state government. </p> <p>The company had called for third party access to the network because of funding and viability issues.</p> <p>The commission is reviewing the state’s rail freight prices, access and conditions, and released its draft decision last month.</p> <p>Stephen Baines, Pacific National’s general manager of public policy, said if the commission’s decision stood, it would &#8220completely undermine the viability of freight rail operations in Victoria&#8221. </p> <p>&#8220The Government is faced with a policy choice as to whether it supports a rail network in Victoria,&#8221 Mr Baines said. </p> <p>&#8220If not, rail will not be commercially viable and the result will be an inevitable shift of freight on to road.&#8221</p> <p>ESC commissioner Bob Scott said last month that Pacific National’s submission had not shown an explicit commitment to maintain the network at a fit-for-purpose standard. </p> <p>Under the commission’s draft decision, released two weeks ago, freight access prices for the metropolitan network would be $5.18 per 1000 gross tonne kilometre (gtk) in 2006&#4707.</p> <p>Connex, which owns the Victorian metropolitan rail network, had proposed a fee of $11.31, 54% higher than the ESC’s draft decision. </p> <p>The commission has also proposed a variable charge for general freight, $9.03 per 1000 GTK, with grain transport to be charged at $11.29 gtk.</p> <p>A flag-fall charge, to be calculated on the distance travelled and not the number of trains, is also part of the commission’s proposal.</p> <p>The draft decision proposes a $5.89 per km charge for general freight, and $7.36 for grain.</p> <p>Connex and Pacific National were due to submit final revised proposals today.</p> <p>The ESC will then decide by May 31, with any ruling to apply from July 1.</p> <br />