MEDIA RELEASE

Embargoed until: 11 December 2014

45 million tonnes of freight by 2034:

Freight Study identifies top priorities for future regional growth

Regional Development Australia Central West (RDACW) says a shared vision from all levels of government is needed to cope with a doubling of the overall NSW freight task by 2034.

Freight movements across the central west region alone are projected to increase by 80% in the same timeframe, to 45 million tonnes per year, which will put significant pressure on local and rural roads.

The findings have been released in a study commissioned by RDACW which examines the current and future freight task across the central west region of NSW.

Currently 15 million tonnes of freight each year is generated in the NSW Central West and moved via road, rail and air transport in the region which takes in 11 local government areas from Lithgow to the Lachlan Shire. An additional 10 million tonnes moves through the region on its way to and from coastal ports and businesses.

Consulting firm Lycopodium has projectedthat the Great Western Highway corridor, and particularly the sections east of Bathurst and Lithgow, will need to accommodate much of this additional volume.

“We are using the findings from this major study to help inform government of freight transport priorities in coming years. There are a number of projects in the Central West region that we believe will provide the capacity needed as well as reduce supply chain costsfor both road and rail transportation,” said RDACW Executive Officer Peter McMillan.

These priorities will provide opportunities for investment over coming years and include both rail and road projects to ensure that freight can flow through the region in a safe, cost effective and reliable manner.

The RDACW Committee will highlight projects including the proposed Inland Rail Line between Melbourne and Brisbane, re-opening of the Blayney to Demondrille rail line and upgrades to the Maldon to Dombarton rail line for additional capacity to Port Kembla as priorities for government funding and private investment.

“Putting more freight onto rail will not only reduce the pressure on local and rural roads, it will make the option more competitive and reduce costs for customers,” said RDACW Chairman Sandy Morrison.

“Both road and rail transport have important parts to play to tackle the future freight task. In the case of rail, addressing the reasons for rail being less competitive than road freight must be a top priority for government. There are many opportunities to get freight moving better on our roads and on rail, including some areas of red tape reduction, which this report highlights,” he said.

Road projects that are being highlighted from the study findings include the Bells Line of Road expressway, planned upgrades to the Great Western and Newell Highways and a number of town bypasses where road access conflicts between freight and passenger transport are expected to grow.

“Upgrades to these major road routes will improve haulage efficiency and connectivity to export markets. This study supports heavy vehicle bypasses being on the ‘To Do’ list at centres including Parkes, Forbes, Orange and Bathurst,” said Mr Morrison.

The Freight Study has also highlighted the opportunities arising for additional air freight from the central west region.

“Currently we air freight only 10% of the volumeper person moved by air in metropolitan areas. Air freight is reliable, time sensitive and often can be a valuable option for high value freight, especially for products with a limited shelf life. This could be particularly useful for the fresh food produced here in the central west and any industry growth around agribusiness,” said Mr McMillan.

“We are proud to release this study and expect it to provide a key planning document for transport and infrastructure agencies in years to come,” he added.

FAST FACTS:

  • Freight is a significant component of costs of doing business. In the case of grain, the freight costs can represent 30% of total costs
  • Rail is generally considered the most efficient form of moving large volumes of freight over long distances
  • Only 10% of the freight task is moved by air in Central West NSW
  • Rail freight and higher productivity vehicles such as longer B Doubles and road trains are many times more fuel efficient than smaller trucks
  • Greater B Double access could halve the number of trucks on our rural and regional roads
  • One freight train removes 150 trucks off the road

Media Enquiries:

Peter McMillan 0437 690 808

Melissa Hamling 0407 210 676

02 6369 1600