Freight on rail

2. Put more freight on rail

Aim: Improved rail linkages between Kewdale, Kwinana and Fremantle will help industry transport freight by rail instead of by road.

Highlights

Improving Kewdale-Kwinana-Fremantle rail links

Improved rail linkages between Kewdale, Kwinana and Fremantle will help industry transport more freight by rail instead of by road. This is being addressed by a number of measures including construction of a new rail loop and terminal at North Quay, better rail-to-ship cargo movements and further development of the Kewdale Intermodal Terminal. Construction of the rail loop, rail terminal and associated road works has begun and completion is expected in late 2005.

Container movements by rail

The target for containers carried by rail has been set at 15% by 2006 and 30% by 2013. Results from the Container Movement Study (see Point 4: Make better use of our roads) indicate that the Government's target for containers transported by the Fremantle-Kewdale rail service is achievable.

The port rail service has experienced growth since new arrangements for the provision of rail services were put in place in early 2003. This growth has resulted from the commercial activities of the operators, Fremantle Link Services (Toll/SPD) and Australian Railroad Group. However, continued growth will be dependent on rail being able to attract business to its service. Current rail operations between the port and Kewdale are marginal and might struggle in the short term to remain viable. Some fluctuation in the number of containers transported by rail can be expected as a reflection of market volume variations and commercial processes.

Rail's share of the container trade transport task for 2003-04 was 7% (28,000 TEUs). However, reduction in landbridge traffic to the Eastern States and loss of CBH grain containers to road have eroded this market share to around 6.5% on a year-to-date basis. Discussions are being held with CBH with the aim of recapturing their business to rail.

North Quay rail development strategy

• Government funded infrastructure development at Fremantle Port over the next 12 months should improve rail efficiency and enable narrow gauge trains to access the North Quay rail terminal. This will allow rail to compete more effectively for regional container traffic. Construction of the rail loop, rail terminal and associated road works has begun and completion is expected in late 2005.

• A number of other measures are currently being examined to boost rail's competitiveness and market share: review of North Quay rail terminal costs, direct rail access to CBH Forrestfield, development of container facilities at Kewdale rail terminal, and the potential for capturing regional containerised freight through development of intermodal terminals in the South West region and at York.

Progress report