Nats leaders agree inland rail primed to roll

Mr Anderson said the project proposal put forward by his group represented the “optimal solution” for delivering a freight railway that was affordable and met customer needs.

“The Australian government can be assured that inland rail is a sensible investment,” he said.

“I believe inland rail is an outstanding project for the future of Australia.

“I commend the project to you and recommend that the Australian government urgently proceed to a decision on the project’s delivery.

“Such a decision will provide industry and those who will invest in complimentary infrastructure such as terminals, with the confidence they require for their business decisions.”

The report said the 1700km rail line included 600kms of new track which would reduce the distance between Melbourne and Brisbane by around 200kms and between Brisbane and Perth by around 500kms.

It also said the new rail line would improve access to and from regional markets with 2 million tonnes of agricultural freight attracted from road to rail and 8.9mt of agricultural freight expected to be carried in 2050.

Speaking to national media in Canberra when the report was handed over, Mr Anderson said Infrastructure Australia had a blueprint for national infrastructure and the inland rail was its “flagship” project.

“This is the piece that is ready to go – much of it is shovel ready now because of the work we’ve done and the infrastructure that’s already there,” he said.

“This is the piece that will provide serious employment now and economic benefit, economic activity, taxation, revenue flows and so forth for the taxpayer in the future.

“This is the one that significantly improves amenity, it decongests Sydney (and) it is very good news from an environmental point of view.”

At the time, the former Nationals leader and Infrastructure and Transport Minister Warren Truss said the current budget contained $300m for the inland rail which funded the work of Mr Anderson’s group.

He said the government would also “like to turn a genuine first sod in our first term in government”.

“It is likely we'd be searching for some elements of the project which can deliver some immediate return,” he said.

“There are sections of the track in NSW which need to be upgraded and upgraded substantially which would deliver an immediate benefit because it's part of the NSW system.

“I think we will be able to start on some of those elements of the project quite promptly, but they are a key part of delivering the whole line.”

The report also provided economic analysis to help guide government decision-making by comparing the inland rail’s use, to the use of existing roads and coastal railway, over a fifty-year period from 2025 to 2075.

That analysis said the inland rail would deliver almost $22.5b worth of direct and indirect benefits to the nation, of which approximately $6.4b direct operating cost savings would be accrued by freight users and “assumed to flow on directly to consumers”.

Mr Anderson said he was arguing the government shouldn't wait another 14 years to commence building the inland rail but delays that had occurred, since it was announced during his time in government, were because the private sector had previously promised to build it.

“The private sector came and said ‘well, we can't make it add up until the taxpayer builds the bridges’,” he said.

“And I said ‘can I have a business case?’ but the business case wasn’t forthcoming and it went on and on and on.

“I am sorry that that happened and that's why we've been very rigorous this time.

“We want to make certain the business case really is there and whilst following the government's obvious desire to explore options for private sector funding, we've come to the conclusion that the government can borrow for less, and take advantage of the unused capacity out there at a unique point in history when both of those make this a very opportune time to drive it forward.

“But it is core business for government.”