Interstate rail freight network finally unified

By Murray West.

Key Points:

Australia's first ever national rail freight network has been created following the 'take up' by Australian Rail Track Corporation Ltd (ARTC) of the long-term lease of the NSW Interstate Mainline and Hunter Valley rail freight corridors in September.

The agreement brings together the rail freight infrastructure in NSW, Victoria, South Australia, Western Australia and Queensland for the first time since the rail networks were established more than 150 years ago.

ARTC now provides a 'one stop' access regime with the authority to sell track access to train operators over the full length of Australia's interstate rail freight network.

Clayton Utz advised on the signing of the $1.32 billion agreement between its client, ARTC, and the NSW and Commonwealth Governments. Under the agreement, ARTC will lease the NSW Interstate Mainline and Hunter Valley networks for 60 years.

Underpinning the reorganisation of the NSW rail network announced earlier this year, the agreement delivers a joint Australian and NSW Government funding package that unlocks $1.32 billion in federal funding for ARTC to invest in the NSW rail freight network over the next five years.

As part of the package, ARTC will invest $200 million into the south-western metropolitan network for the construction of a new 24-kilometre freight line from Campbelltown to the Port of Botany. This will free up badly-needed additional capacity on the Sydney metropolitan passenger network.

Although ownership of the tracks remains with NSW, ARTC will have full responsibility for the lines, including maintenance and investment decisions and train control.

This agreement provides the bedrock for the overhaul of the rail freight industry in Australia, with the transport of interstate freight set to shift significantly from road to rail.

Once ARTC consolidates its operations, which will take around six months, it will start to standardise rail safety, signalling and a whole host of other things that have been operating differently in the various states.

For further information, please contact Murray West.