Shifting to Inland Rail could save Australian producers, manufacturers and growers $170 million in transport costs each year according to a CSIRO supply chain analysis.
Michael McCormack, Deputy Prime Minister and Minister for Infrastructure, Transport and Regional Development, welcomed the early release of the findings as evidence of the benefits of inland rail across Australia.
“CSIRO has mapped supply chains for 140 commodities and the early results show an average transport cost reduction of 39 per cent can be achieved by shifting freight from road to Inland Rail for at least part of the journey,” he says.
The report shows transport costs on freight travelling the full length of Inland Rail between Melbourne and Brisbane reduces by 44 percent.
Simon Birmingham, Minister for Finance, says businesses as far as Townsville, Perth and Launceston can reap the same rewards.
“Equally, existing rail-based supply chains are estimated to see an annual cost reduction of around $21 million,” Simon says.
Mark Coulton, Minister for Regional Health, Regional Communications and Local Government, says the current freight rail infrastructure project will also bring opportunities to regional Australia.
“This study is the green light signalling to the industry to start planning now because the potential cost savings for being connected to, or close by, Inland Rail are immense for farmers and regional businesses,” Mark says.
Concrete World in Dubbo is one business reconsidering options to move their freight with rail.
Director Troy Paton says the reduction in cost isn’t the only potential benefit.
“Additionally, it will assist us with further expansion of the business. The time delays in moving freight over the Blue Mountains are a constant constraint,” says Troy.
Find out more about the CSIRO Supply Chain mapping study at https://www.InlandRail.gov.au