Transportation Planning Casebook/New South Wales Inland Rail

Summary


Australia's railway system is structured around state capital cities with different track gauges in each state, originating from its history as six separate British colonies. Since federation, these networks have become more integrated. Today, the Australian Rail Track Corporation (ARTC) operates a national freight network with over 8,500km of standard- or dual-gauge track, connecting Brisbane, Sydney, Melbourne, Adelaide, and Perth. The Inland Rail project, currently under construction and expected to be completed in 2027, will create a 1,700km freight railway between Melbourne and Brisbane through western New South Wales. The project involves upgrading approximately 1,100km of existing tracks and adding 600km of track in new corridors.

Inland Rail will reduce the distance for rail-based freight between Melbourne and Brisbane by 200km compared to the coastal route, bypassing Sydney's congested Metropolitan Freight Network and the North Coast Line's slow, winding alignment. The line will offer a 24-hour transit time, which is about 10 hours faster than the coastal route and competitive with inland road transport. Additionally, the route will connect to the east-west Sydney to Perth freight rail corridor at a large intermodal terminal in Parkes, benefiting ARTC's national freight network. For instance, the distance between Brisbane and Adelaide or Perth will be shortened by 500km, and freight from Queensland will have an alternative route in case of extreme weather or other disruptions. The project aims to shift freight from road to rail, with each 1,800m long double-stacked train able to carry as much freight as 110 B-double trucks at a lower cost due to fuel and labor savings. Producers and freight customers along the route will benefit from reduced freight costs and improved access to Australia's five largest cities and the ports of Melbourne and Brisbane.

Key Characteristics
115km/h design speed (21-tonne axle load)
 * 1,118km of track upgrades, enhancements, or new track construction within existing rail corridors (brownfield)
 * 607km of track in new rail corridors (greenfield)
 * 13 individual projects across 36 local government areas in Victoria (1), New South Wales (7), and Queensland (5)
 * Double-stacked 1,800m long trains supported (future-proofed for 3,600m trains)
 * Delivered by ARTC in partnership with the private sector, with a $14.5 billion equity investment from the Federal Government

Key Benefits

 * Reduces heavy truck volumes on highways and through towns along the route by shifting freight from road to rail – each 1,800m double-stacked train has the equivalent freight volume as 110 B-double trucks
 * Lowers freight cost per tonne due to reduced fuel and labor costs, estimated at $80.77 per tonne
 * Projected to improve GDP by $18 billion over the first 50 years of operation
 * Reduces freight rail distance between Melbourne and Brisbane by 200km, and between Brisbane and Adelaide/Perth by 500km
 * 24-hour transit time between Melbourne and Brisbane, 10 hours faster than the existing route via Sydney and competitive with road transport
 * Up to 21,500 jobs created during the peak of construction
 * Dual-gauge sections of Inland Rail improving travel time and capacity for Queensland’s narrow-gauge freight and passenger networks

Policy Issues

 * Cost of the service
 * Community engagement
 * Local benefits, employment, and business opportunities
 * Freight and supply chain
 * Land access agreements
 * Environmental and flooding concerns
 * Local businesses

Narrative
Inland Rail is a 1,700km freight rail line directly connecting Melbourne and Brisbane via regional Victoria, New South Wales and Queensland. It will provide cost-competitive and reliable freight transport with a transit time of under 24 hours. Inland Rail is a key initiative of the Australian Government’s $120 billion infrastructure pipeline that includes major road and rail upgrades that will better connect regional communities to domestic and international markets. There are many reasons to build Inland Rail including the benefits it provides through; economic stimulus, jobs support, enhanced supply chains, reduced emissions and road safety outcomes. Read more on the timeline about how the alignment was identified and why Inland Rail is a critical investment in Australia’s freight future. It is funded by the Australian Government, the project is being delivered by the Australian Rail Track Corporation (ARTC), in partnership with the private sector. It will build on existing regional and rural rail connections that provide access to the ports of Melbourne, Port Kembla, Sydney, Newcastle, Brisbane, Adelaide and Perth via Parkes.

Strong regional and national benefits
When completed, Inland Rail will provide a strategic infrastructure corridor for eastern Australia, creating the opportunity to optimise development of local and regional road and rail links by state and local governments. The project will deliver a competitive freight service, increase national productivity, and, importantly, boost the regional economies along the Inland Rail corridor. Regional businesses and farmers will be able to take advantage of new opportunities for export growth and get their produce to market when and where it is required. Supply chain costs are a significant component of the price consumers pay for goods with up to 10% of the final cost coming from transportation costs. Inland Rail has the potential to deliver both short term and long term economic opportunities to regional Australian communities both on and off the alignment.

A service offering backed by industry
As Australia’s population grows so do the demands on our freight network – urban freight alone is set to increase by nearly 60% by 2040. Inland Rail needs to meet the future demands of Australia’s freight challenge and be competitive with road, cost efficient and reliable. The Inland Rail Service Offering was developed by the ARTC in consultation with Australia’s major freight stakeholders to ensure it will deliver the necessary requirements to conduct their business operations. Inland Rail will have 98% reliability, flexibility for faster and slower services, and make sure freight is available when the market needs it most. Data from the CSIRO Supply Chain Mapping Project identified a potential transport cost reduction of $80.77 per payload tonne by switching existing road based supply chains to Inland Rail.

Planning and building
The Inland Rail alignment and design is informed by extensive planning and multiple studies and analysis undertaken over many years. Agreement to construct Inland Rail in the states of Victoria, New South Wales and Queensland is facilitated through Intergovernmental Agreements between the Australian Government and the respective state governments and can often stipulate specific requirements for the use of existing corridors or new greenfield construction. Robust state approval processes are applied to Inland Rail’s design and delivery to manage and mitigate social and environmental impacts.

Discussion Questions

 * 1) Is Inland Rail's funding/deliver model of equity investment and PPPs effective? What other methods would be more effective?
 * 2) How  many intermodal terminal should theere be along the proposed route? How the ARTC overpromised on terminal projects?
 * 3) Is there a more environmentally friendly freight alternative to Inland Rail to support Australia's goal of reaching net-zero carbon emissions by 2050?
 * 4) Does the planned extension of Inland Rail from Toowoomba to Gladstone make sense? Is this proposal politically driven?
 * 5) Should Inland Rail's infrastructure be used for passenger services? What are some potential demand corridors that could be served?

Additional Readings
Inland Rail Route History. Australian Rail Track Corporation (2020).

This document provides a summary of the studies and decisions that have informed the current design and alignment of the project between 2006 and 2021. Key studies include the North-South Rail Corridor Study (2006), the Inland Rail Alignment Study (2010) and the Inland Rail Implementation Group Report (2015).

URL: https://inlandrail.artc.com.au/route-history-of-inland-rail-2006-2021/

Inland Rail: derailed from the start. Senate Standing Committee on Rural and Regional Affairs and Transport (2021).

This report is the final outcome of a senate inquiry into the management of the Inland Rail project. It includes scrutiny of the business case, connectivity to ports and intermodal terminals, stakeholder engagement and alignment concerns.

URL: https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Rural_and_Regional_Affairs_and_Transport/InlandRail/Report

Process to refine the route. Australian Rail Track Corporation (2022).

While sections of the route using existing rail corridors has been confirmed, detailed design for sections of new rail track are still ongoing. This document provides a short summary of the process and criteria being used to finalise the project route in these sections.

URL: https://inlandrail.artc.com.au/process-to-refine-the-route/

Inland Rail service offering. Australian Rail Track Corporation (2019).

This document outlines the service offering that the Inland Rail project will provide for freight customers, operators and other key stakeholders. It outlines the expected benefits of the project compared with existing road freight services, including reliability, transit time, price and capacity.

URL: https://inlandrail.artc.com.au/inland-rail-service-offering/

Parkes Special Activation Precinct Master Plan. NSW Department of Planning and Environment (2020).

As the junction between the Brisbane-Melbourne and Sydney-Perth freight rail corridors, Parkes will be the most significant intermodal terminal along the Inland Rail corridor. The Master Plan outlines the special planning rules implemented by the NSW Government to enable a specialised logistics precinct at the junction of the two rail corridors.

URL: https://www.planningportal.nsw.gov.au/Parkes-SAP