Transportation Planning Casebook/New South Wales Inland Rail

Summary

Inland Rail project route from Tottenham, Victoria to Acacia Ridge, Queensland via western New South Wales.

Australia's railway system is structured around state capital cities with different track gauges in each state, originating from its history as six separate British colonies. Since federation, these networks have become more integrated. Today, the Australian Rail Track Corporation (ARTC) operates a national freight network with over 8,500km of standard- or dual-gauge track, connecting Brisbane, Sydney, Melbourne, Adelaide, and Perth. The Inland Rail project, currently under construction and expected to be completed in 2027, will create a 1,700km freight railway between Melbourne and Brisbane through western New South Wales. The project involves upgrading approximately 1,100km of existing tracks and adding 600km of track in new corridors.

Inland Rail will reduce the distance for rail-based freight between Melbourne and Brisbane by 200km compared to the coastal route, bypassing Sydney's congested Metropolitan Freight Network and the North Coast Line's slow, winding alignment. The line will offer a 24-hour transit time, which is about 10 hours faster than the coastal route and competitive with inland road transport. Additionally, the route will connect to the east-west Sydney to Perth freight rail corridor at a large intermodal terminal in Parkes, benefiting ARTC's national freight network. For instance, the distance between Brisbane and Adelaide or Perth will be shortened by 500km, and freight from Queensland will have an alternative route in case of extreme weather or other disruptions. The project aims to shift freight from road to rail, with each 1,800m long double-stacked train able to carry as much freight as 110 B-double trucks at a lower cost due to fuel and labor savings. Producers and freight customers along the route will benefit from reduced freight costs and improved access to Australia's five largest cities and the ports of Melbourne and Brisbane.

Key Characteristics

• 1,118km of track upgrades, enhancements, or new track construction within existing rail corridors (brownfield)
• 607km of track in new rail corridors (greenfield)
• 13 individual projects across 36 local government areas in Victoria (1), New South Wales (7), and Queensland (5)
• Double-stacked 1,800m long trains supported (future-proofed for 3,600m trains)

115km/h design speed (21-tonne axle load)

• Delivered by ARTC in partnership with the private sector, with a $14.5 billion equity investment from the Federal Government

Key Benefits

• Reduces heavy truck volumes on highways and through towns along the route by shifting freight from road to rail – each 1,800m double-stacked train has the equivalent freight volume as 110 B-double trucks
• Lowers freight cost per tonne due to reduced fuel and labor costs, estimated at $80.77 per tonne
• Projected to improve GDP by $18 billion over the first 50 years of operation
• Reduces freight rail distance between Melbourne and Brisbane by 200km, and between Brisbane and Adelaide/Perth by 500km
• 24-hour transit time between Melbourne and Brisbane, 10 hours faster than the existing route via Sydney and competitive with road transport
• Up to 21,500 jobs created during the peak of construction
• Dual-gauge sections of Inland Rail improving travel time and capacity for Queensland’s narrow-gauge freight and passenger networks

Annotated List of Actors

Stakeholder group	Interests, concerns and issues
Australian Government	The Australian Government (Prime Minister, Cabinet and relevant Ministers) has made the investment decision to pursue delivery of the Inland Rail project, financing the project through the Federal Budget throughout its lifecycle including studies, reports, the business case and equity funding to the Australian Rail Track Corporation (ARTC) to deliver the project. The Australian Government has also signed bilateral agreements with the state governments of Victoria, New South Wales and Queensland to deliver the project.
Australian Government departments and agencies	The Department of Infrastructure, Transport, Regional Development and Communications (DITRDC) is the responsible department for transport infrastructure projects at the federal level. The Department completed or commissioned early reports and feasibility studies for the Inland Rail project. The ARTC sits within the Department's portfolio. The Department of Environment and Energy (DoEE) is a referral agency for construction projects' environmental approvals under the Environmental Protection and Biodiversity Conservation Act 1999 (EPBC Act). Infrastructure Australia independently assessed Inland Rail's business case and recommended it for funding to the Commonwealth Government. Infrastructure Australia is principally charged with ensuring value for money and positive returns on infrastructure investment by the Commonwealth Government. The Commonwealth Scientific and Industrial Research Organisation (CSIRO) undertook research to estimate and quantify the benefits of Inland Rail to the freight industry through cost and time savings.
Australian Government-owned corporations	The Australian Rail Track Corporation (ARTC) is a Commonwealth Government-owned corporation that operates and manages an 8,500km rail network connecting mainland Australia's five largest capital cities. It is also the proponent for Inland Rail project, charged with delivering the 13 individual projects in partnership with the private sector. ARTC has received $14.5b in equity funding to support delivery of the project.
State Governments	The Victorian, New South Wales and Queensland Governments have signed bilateral agreements with the Australian Government to deliver Inland Rail. Each of the states has made a political decision to support the project, and additionally have agreed to either lease or transfer ownership of their rail assets to the ARTC.
State Government transport agencies	The state governments' transport departments are not directly involved in the delivery of the project, however Transport for NSW and the Department of Transport and Main Roads (Queensland) are supporting ARTC using their land acquisition powers to protect the project corridors, and supporting ARTC in securing environmental approvals from the relevant agency in each state. Victoria's Department of Transport does not have a large role in the project as construction is taking place within existing corridors.
State Government planning and environmental agencies	The Department of Planning and Environment (DPE) is the assessing agency for major project and environmental approvals in New South Wales. ARTC must submit a State Significant Infrastructure (SSI) and Environmental Impact Statement (EIS) for each project to DPE, which will also refer the EIS to the Australian Government DoEE for assessment. The Minister makes the final decision to approve, approve with conditions or not to approve the project. DPE is also responsible for Special Activation Precincts, which have dedicated planning rules to facilitate development of intermodal terminals along the route of Inland Rail. The largest Special Activation Precinct is located in Parkes at the junction of Inland Rail and the Sydney-Perth railway line. In Queensland, major projects are assessed by the Coordinator General which sits within the Department of State Development, Infrastructure, Local Government and Planning.
Local Government	The Inland Rail project passes through 36 Local Government Areas across three states. Local Councils do not play a major role in the planning or approval of Inland Rail because state governments are largely responsible for major projects. Councils may however be required to issue small ancillary approvals for construction activities. Councils are also likely to take on an advocacy role for local residents who may be impacted by the project. Examples of this might include a loss of visual amenity or noise close to the corridor, or an increase in construction traffic and activity.
Economic, financial and professional services consultants	Economic, financial and professional services consultants were principally involved in delivering the early feasibility studies, route assessments and business case for the Inland Rail project. They include ACIL Allen, Deloitte, EY, KPMG, PwC, Turner & Townsend and SNC Atkins.
Engineering, design and environmental services consultants	Engineering, design and environmental services consultants have been involved in refining the routes of the various projects, concept and detailed design, preparing planning applications and environmental assessments. They include AECOM, Aquenta, Arup, Aurecon, GHD, Hatch, Halcrow, Hyder Consulting, Jacobs, Kellogg Brown Root, Lycopodium Infrastructure, Mott Macdonald, Parsons Brinckerhoff, SMEC and WSP.
Construction contractors	Construction contractors are engaged by ARTC to deliver the 13 individual projects that make up the complete Inland Rail project including upgrading existing rail corridors and constructing greenfield corridors. These projects are being delivered through the Public Private Partnership (PPP) model, in which the private sector will design, build, finance and maintain sections of track. Narrabri to North Star (N2NS) SP1 Construction Contract - Trans4m Rail Joint Venture Parkes to Narromine Construction Contract - B.M.D. Constructions and Fulton Hogan Constructions Collaborative Framework Agreement - Civil Works Program - Central Program - Liang O'Rourke Australia Construction Collaborative Framework Agreement - Civil Works Program - Northern Program - Bielby Holdings, JF Hull Holdings and QH&M Birt Collaborative Framework Agreement - Civil Works Program - Rail Corridor Program - Martinus Rail Collaborative Framework Agreement - Civil Works Program - Southern Program - Acciona Construction Australia and CPB Contractors Tottenham to Albury Early Delivery Activities - McConnell Dowell Constructions Tottenham to Albury Tranche 1 Project - Early Contractor Involvement - John Holland Pty Ltd Tottenham to Albury Tranche 1 Project - Early Contractor Involvement - GHD
Local Aboriginal Land Councils	New South Wales has 120 Local Aboriginal Land Councils, and one of their stated aims is to maintain and enhance Aboriginal culture, identity and heritage. The primary interests of LALC's along the Inland Rail route are to ensure that Aboriginal cultural heritage and Country are respected by the route alignment and design, and also to advocate for economic opportunities for local Aboriginal communities.
Land owners and local residents	Local residents are primarily those who live in the immediate vicinity of the Inland Rail route or supporting infrastructure. Land owners, by distinction, may include farmers or pastoralists with land holdings adjacent to (or bisected by) the route though not necessary living nearby.
Freight customers	Freight customers include primary producers, manufacturers and retailers who seek to use Inland Rail and ARTC freight network to transport their goods. They will access the rail network via logistics companies and freight train operators at intermodal terminals along the route. The primary concerns for freight customers are transit time and cost. Inland Rail will reduce the cost of transport while providing a competitive transit time with road-based transport. Freight customers along the route will also have better rail access to ports, airports and intermodal terminals and domestic markets in Brisbane, Sydney, Melbourne, Adelaide and Perth.
Train operators and logistics companies	Inland Rail will be an open access rail service, meaning that any accredited operator will be able to run a train along the rail line. Train operators and logistics companies will be able to lower their operational costs (fuel and labour) by shifting freight from road to rail over longer distances. This will enable a better service offering for customers with a lower cost per tonne while increasing freight capacity and competition.
Intermodal terminal operators	Inland Rail will create new opportunities for intermodal terminals along its route. Intermodal terminals on existing sections of track will benefit from increased freight traffic from new markets, while the project provides opportunities to construct new intermodal terminals along its route (e.g. Darling Downs and Parkes).
Port operators	Inland Rail is anchored on each end by the Port of Melbourne and Port of Brisbane. These port operators will benefit from improved access to primary producers in western NSW, who can use these ports as an alternative to the congested Sydney network.

Timeline

Time	Event(s)
1902	1902 (or before) Proposals for a Melbourne - Queensland - Darwin railway.
1915	Andrew Fisher, Prime Minister proposes a railway from the Riverina to Queensland.
1979	Ken Thomas (the founder of freight company TNT) proposes an inland route from Melbourne to Brisbane and Sydney to Perth via Orange to provide an “inland rail system” to link the five mainland State capitals housing 60 per cent of Australia’s population. An 80 knot (148 km/h) speed design standard is proposed, approaching a modern standard of 160 km/h.
1995	The first modern proposal of an inland freight railway between Brisbane and Melbourne via NSW is made by Queensland Rail, with an estimated cost of $1.289b. The National Transport Planning Taskforce notes that rail only carries 21 per cent of the long-distance freight due to the transit time of 37 hours via Sydney compared to 22 hours by road via an inland route.
1996	The Commonwealth Government's Bureau of Transport and Regional Economics (BTRE) releases a report on the Economic effects of a Brisbane - Melbourne inland railway.
1999	Federal $300,000 pre-feasibility study into a Melbourne - Brisbane inland railway using mostly existing track, proposed as part of a Melbourne to Darwin link by the Australian Transport and Energy Corridor Pty Ltd (ATEC).
2001	An inland route was further reviewed as part of the 2001 ARTC Track Audit.
2006	The North-South Corridor Study considers four potential corridors for Inland Rail to determine which would deliver the best economic and financial outcome. The study concludes that the 'far western sub-corridor' via Parkes and western New South Wales would be the most cost-effective option.
2010	The Inland Rail Alignment Study report is completed, examining the optimum alignment, economic benefits and commercial viability of the project. The study determines that a more direct alignment with a journey time of 24 hours or less is required to attract freight from road transport or the coastal Sydney route, which takes 10 hours longer.
2013	Following the federal election, the new Coalition government commits to completion of an inland railway, forming the Inland Rail Implementation Group (IRIG). $300 million is allocated for pre-construction activities in the 2013–14 Federal Budget.
2014	The Inland Rail Implementation Group formed. Representatives of the transport and logistics industry establish the Inland Rail Service Offering to determine what the project would offer the market in relation to transit time, reliability, price and freight availability.
2015	Inland Rail Implementation Group Report and Business Case for Inland Rail is released, outlining a 10-year delivery schedule and new ‘base case’ corridor, refined from the 2010 Alignment Study.
2016	Infrastructure Australia evaluates the Inland Rail Business Case and places the project on the Infrastructure Priority List citing evidence including a long-term stream of benefits to potential users of the project. The Inland Rail Sponsors Group is established to provide senior level oversight of the delivery of Inland Rail. The Coalition government announces in the 2016–17 Federal Budget that Inland Rail will be delivered by the Australian Rail Track Corporation (ARTC) in partnership with the private sector. The budget allocates an additional $593 million in equity to ARTC for the purposes of land acquisition, due diligence and continued pre-construction activities.
2017	2017–18 Federal Budget commitment of $8.4 billion in additional funds from the Australian Government in equity investment in ARTC and announcement of a Public Private Partnership (PPP) for the Gowrie to Kagaru project in Queensland. This brought the total Australian Government financing towards the delivery of Inland Rail to $9.3 billion, comprising equity and grant funding.
2018	The Commonwealth Scientific and Industrial Research Organisation (CSIRO) completes a pilot study to model potential transport cost savings for supply chains. The Australian Government signs Bilateral Agreements with Victoria and New South Wales for the delivery of Inland Rail in the respective states, including commitments to negotiate a long-term lease for some sections of rail corridor and initiate corridor protection for new sections. Department regional offices are established in Toowoomba, Dubbo and Wodonga to enable a local presence and engage with the communities to strengthen relationships in those areas. Construction commenced on the Parkes to Narromine project in New South Wales.
2019	2019–20 Federal Budget announcement of $44 million in funding for the development of business cases as part of the Interface Improvement Program to enhance connectivity and productivity from Inland Rail. 2019–20 Federal Budget announcement of investment of up to $20 million by the Australian Government to partner with the Victorian and Queensland Government to develop business cases for new intermodal terminals in Melbourne and Brisbane. The Australian Government signs a Bilateral Agreement with the Queensland Government for the delivery of Inland Rail in Queensland. The CSIRO's report on Inland Rail Supply Chain mapping is released March Expressions of Interest invited to design, build, finance and maintain the section from Gowrie outside Toowoomba to Kagaru near Beaudesert. Track work near Parkes to form link between Inland Rail and the interstate east-west line from Sydney to Perth is completed.
2020	A Department regional office is established in Moree. Pre-feasibility study exploring the demand for freight and viability of extending Inland Rail to the Port of Gladstone released. Announcement of an Independent International Panel of Experts for flood studies to provide advice to the Commonwealth and Queensland Government on flood modelling and structural designs by ARTC for Inland Rail. The first Inland Rail's 13 projects, from Parkes to Narromine in New South Wales, is completed. Construction commenced on the second section of Inland Rail, from Narrabri to North Star in New South Wales. The Australian Government commits up to an additional $5.5 billion in equity to enable ARTC to deliver Inland Rail.
2021	The Australian Government commits up to $10 million to investigate the viability of extending Inland Rail from Toowoomba to Gladstone.
2027	Inland Rail expected completion and opening date is 2027.

Maps

The route of the Inland Rail project including...

Policy Issues

• Cost of the service
• Community engagement
• Local benefits, employment, and business opportunities
• Freight and supply chain
• Land access agreements
• Environmental and flooding concerns
• Local businesses

Narrative

Inland Rail is a 1,700km freight rail line directly connecting Melbourne and Brisbane via regional Victoria, New South Wales and Queensland. It will provide cost-competitive and reliable freight transport with a transit time of under 24 hours. Inland Rail is a key initiative of the Australian Government’s $120 billion infrastructure pipeline that includes major road and rail upgrades that will better connect regional communities to domestic and international markets. There are many reasons to build Inland Rail including the benefits it provides through; economic stimulus, jobs support, enhanced supply chains, reduced emissions and road safety outcomes. Read more on the timeline about how the alignment was identified and why Inland Rail is a critical investment in Australia’s freight future. It is funded by the Australian Government, the project is being delivered by the Australian Rail Track Corporation (ARTC), in partnership with the private sector. It will build on existing regional and rural rail connections that provide access to the ports of Melbourne, Port Kembla, Sydney, Newcastle, Brisbane, Adelaide and Perth via Parkes.

Strong regional and national benefits

When completed, Inland Rail will provide a strategic infrastructure corridor for eastern Australia, creating the opportunity to optimise development of local and regional road and rail links by state and local governments. The project will deliver a competitive freight service, increase national productivity, and, importantly, boost the regional economies along the Inland Rail corridor. Regional businesses and farmers will be able to take advantage of new opportunities for export growth and get their produce to market when and where it is required. Supply chain costs are a significant component of the price consumers pay for goods with up to 10% of the final cost coming from transportation costs. Inland Rail has the potential to deliver both short term and long term economic opportunities to regional Australian communities both on and off the alignment.

A service offering backed by industry

As Australia’s population grows so do the demands on our freight network – urban freight alone is set to increase by nearly 60% by 2040. Inland Rail needs to meet the future demands of Australia’s freight challenge and be competitive with road, cost efficient and reliable. The Inland Rail Service Offering was developed by the ARTC in consultation with Australia’s major freight stakeholders to ensure it will deliver the necessary requirements to conduct their business operations. Inland Rail will have 98% reliability, flexibility for faster and slower services, and make sure freight is available when the market needs it most. Data from the CSIRO Supply Chain Mapping Project identified a potential transport cost reduction of $80.77 per payload tonne by switching existing road based supply chains to Inland Rail.

Planning and building

The Inland Rail alignment and design is informed by extensive planning and multiple studies and analysis undertaken over many years. Agreement to construct Inland Rail in the states of Victoria, New South Wales and Queensland is facilitated through Intergovernmental Agreements between the Australian Government and the respective state governments and can often stipulate specific requirements for the use of existing corridors or new greenfield construction. Robust state approval processes are applied to Inland Rail’s design and delivery to manage and mitigate social and environmental impacts.

Discussion Questions

1. Is Inland Rail's funding/deliver model of equity investment and PPPs effective? What other methods would be more effective?
2. How many intermodal terminal should theere be along the proposed route? How the ARTC overpromised on terminal projects?
3. Is there a more environmentally friendly freight alternative to Inland Rail to support Australia's goal of reaching net-zero carbon emissions by 2050?
4. Does the planned extension of Inland Rail from Toowoomba to Gladstone make sense? Is this proposal politically driven?
5. Should Inland Rail's infrastructure be used for passenger services? What are some potential demand corridors that could be served?

Additional Readings

Inland Rail Route History. Australian Rail Track Corporation (2020).

This document provides a summary of the studies and decisions that have informed the current design and alignment of the project between 2006 and 2021. Key studies include the North-South Rail Corridor Study (2006), the Inland Rail Alignment Study (2010) and the Inland Rail Implementation Group Report (2015).

URL: https://inlandrail.artc.com.au/route-history-of-inland-rail-2006-2021/

Inland Rail: derailed from the start. Senate Standing Committee on Rural and Regional Affairs and Transport (2021).

This report is the final outcome of a senate inquiry into the management of the Inland Rail project. It includes scrutiny of the business case, connectivity to ports and intermodal terminals, stakeholder engagement and alignment concerns.

URL: https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Rural_and_Regional_Affairs_and_Transport/InlandRail/Report

Process to refine the route. Australian Rail Track Corporation (2022).

While sections of the route using existing rail corridors has been confirmed, detailed design for sections of new rail track are still ongoing. This document provides a short summary of the process and criteria being used to finalise the project route in these sections.

URL: https://inlandrail.artc.com.au/process-to-refine-the-route/

Inland Rail service offering. Australian Rail Track Corporation (2019).

This document outlines the service offering that the Inland Rail project will provide for freight customers, operators and other key stakeholders. It outlines the expected benefits of the project compared with existing road freight services, including reliability, transit time, price and capacity.

URL: https://inlandrail.artc.com.au/inland-rail-service-offering/

Parkes Special Activation Precinct Master Plan. NSW Department of Planning and Environment (2020).

As the junction between the Brisbane-Melbourne and Sydney-Perth freight rail corridors, Parkes will be the most significant intermodal terminal along the Inland Rail corridor. The Master Plan outlines the special planning rules implemented by the NSW Government to enable a specialised logistics precinct at the junction of the two rail corridors.

URL: https://www.planningportal.nsw.gov.au/Parkes-SAP