Ag investors need to back new tracks

For grain, bigger, cheaper haulage is needed to bring stability to the system and attract investment to help fill the gaps between up-country and port, a gap that is costing farmers much money.

An increased need to get more goods to port to export to China and other parts of Asia will hopefully provide increased demand and help take out some of the seasonality that has been a limiting factor for rail investment for many decades.

The money so far thrown at new ports and up-country infrastructure upgrades will continue to be spent around the edges of the system while ever profitability is limited by the reliance on road transport and the large distances to storage and port facilities.

Without adequate rail, growers will continue to bear the cost of getting grain (and other goods) to market, and the industry will remain less attractive to investors.

The myriad of existing lines like little river valleys and their small tributaries run towards the ports without the ability to efficiently capture grain (or other goods) in the necessary volumes.

Some improvements to sidings could allow bigger trains on some of these lines, but they will still be limited by poor tracks and limited supply, all adding to the cost of the system.

Because of such issues, rail is disproportionately expensive, making up half of the cost of transport of grain to port while only carting a third of the grain.

A main inland line that intersects our main agricultural regions - such as that proposed from Adelaide to Brisbane - could break this efficiency deadlock.

It would not only have the ability to reduce rail costs, but help create an environment for investment, such as businesses that would supply links to the mainline or new storage or packing facilities.

If Australia is to service the looming free trade agreement with China, it will need to seriously improve its ability to get goods from where they are produced to port.

Our farmers have quality produce that has more value than is currently being realised and they are being held back by their ability to get the goods off the farm.