Simon Ramsay President

Rail Freight

• Grains industry dependent on efficient rail transport

• Average of 2 million tonnes of grain moves by rail

• Predicted to rise to nearly 3 million tonnes by 2035

Rail Freight

• Increasing use of containers for agriculture produce

• Approximately 12 million tonnes containerized product in 2004-05 through the port

• 1.8 million tonnes currently carried on the regional freight network

• An efficient network would see a greater share move from road to rail

Rail Freight

• Agronomic productivity growth highest growth of all sectors

• 3.8 % pa over 20 years• Need to also focus on supply chain

productivity• Competitive Rail Freight is a key to

maintaining international competitiveness

Rail Freight

• Reduced fuel consumption– 33% less fuel than road transport

• Reduced C02 emissions

Climate Change Working Group of the Commission for Integrated Transport:

CO2 Emissions from Freight Transport in the UK:

Rail Freight

• Economic Impact– Increasing fuel prices – Carbon cost added to fuel– Road deterioration– Peak road transport capacity

• Would all add cost to Australia’s farm production

Rail Freight Forum

• The loss of rail access will have long term consequences for regions“Any decisions regarding whether or not track should or should not be retained must be taken with the view that once lost it is unlikely to be regained and any future opportunity to develop centres of activity anywhere along that route are probably lost forever.”

(Department of Innovation, Industry and Regional Development submission Regioal Freight Rail Review.)

Rail Freight Forum• The loss of efficient rail freight

access will have substantial and on-going economic impacts on regions– Increased production costs– Increased road maintenance costs– Loss of development– Loss of jobs and population