Full steam ahead with rail

Full steam ahead with rail?A new $10 billion national rail program and $8.4 billion for an inland rail track herald a new direction for the Turnbull Government. But should we start celebrating a railway revolution?Former Prime Minister Tony Abbott previously said the Commonwealth Government had a long history of funding roads, but “no history of funding urban rail and I think it’s important that we stick to our knitting”.Ideologically, there’s been a significant shift in the government’s thinking.Delivering his second budget last week, Treasurer Scott Morrison said the government would “invest in building Australia, rail by rail, runway by runway and road by road”.One of these investments is the Melbourne to Brisbane inland rail project – a scheme that was first floated by former Prime Minister Andrew Fisher in 1915. The Turnbull Government has promised to provide $8.4 billion in equity to the government-owned Australian Rail Track Corporation (ARTC) to deliver the 1,700-kilometre project.With freight tasks expected to double over the next 20 years, and treble along the eastern seaboard, inland rail is expected to reduce train operating costs and improve service standards. Work will start in 2017-18, and will involve an upgrade to 1,000 kilometres of track, as well as the construction of 700 kilometres of new track.Advocacy groups like the National Farmers’ Federation are “over the moon”, and the Australasian Railway Association (ARA) says inland rail will increase Australia’s GDP by $16 billion. “It is profitable from day one – for every $1 the Commonwealth invests there is a return of $2.60 to our economy,” says ARA’s chief executive officer Danny Broad.”Inland Rail will inject 16,000 jobs at its peak, retaining 700 jobs every year over the life of the project. Inland Rail will reduce congestion on our roads with fewer heavy vehicle movements and improve our nation’s environmental sustainability.”However, critics point to a study commissioned by ARTC, which has found the project won’t become profitable until 2062. Despite being a long-term supporter of inland rail, shadow minister for infrastructure Anthony Albanese has called the federal government’s funding “a joke”. “Absolutely not a dollar being spent between now and the next election, in terms of the budget,” Albanese says.Treasurer Scott Morrison has allocated an initial $200 million investment in 2019, which will be ramped up to $400 million the year after. But the remaining funding will be in the years ahead of budget forecasts.Meanwhile, a ten year $10 billion national rail plan has been announced to fund “priority” regional and urban rail projects, although more than 90 per cent of this is outside the four year forward estimates period.Projects such as Adelink, Brisbane Metro, Tullamarine Rail link, Cross River Rail in Brisbane and the Western Sydney Airport rail link could be supported through this program, “subject to a proven business case,” the Treasurer said during his budget address.The budget allocates $1 billion for regional rail and other infrastructure projects in Victoria, for example, including $30 million to develop a business case for a rail link to Tullamarine Airport. But Victorian Premier Daniel Andrews argues that the $1 billion is “old money”.Property Council chief executive Ken Morrison says the 10-year program aligns with the Turnbull Government’s broader cities agenda, which recognises that efficient movement of people and freight is essential for productive, liveable cities.Morrison says the decision to invest in rail “is the right one” but notes most of the funding falls outside forward estimates.”That means the latest generation of metro rail projects now being planned by state governments won’t get any federal funding until well after 2020. That’s a long time to wait,” Morrison says.”Getting our cities working better is fundamental to our nation’s long-term productivity and prosperity. Directionally, we are pleased with the government’s commitment to rail. “But no one will be celebrating until we see money on the table and actual track being laid.”