The peak body for farmers in NSW has formed a new task force to tackle what it says are rail freight failures from paddocks to ports.
Key points:
- The new Modernising Rail Infrastructure Taskforce will meet for the first time next week
- Its goals are to identify where the bottlenecks in freight transport are occurring and find ways to address the problems
- Grain growers, in particular, say they are struggling to get their product to a NSW port in time to export it
NSW Farmers' Modernising Rail Infrastructure Taskforce will look to outline the delays being experienced and find ways to solve the issues, which it says are costing the state billions of dollars in lost revenue each year.
Task force chairman Mathew Madden, a grain grower from Moree, said access to the export markets was critical for farmers, but high port charges, poor rail quality, and port bottlenecks were holding them back.
"The fact we've got grain being driven by road into the biggest city in the country is a clear sign we've got some big issues with our rail freight system," Mr Madden said.
"Improving rail freight from northern grain growers to the Port of Newcastle would save farmers between $16 and $22 per tonne, or up to $2.8 billion over the next 30 years, allowing them to reinvest in their businesses and drive even more economic activity in the regions.
"Another example is the South West Illawarra Rail Link that would greatly improve agricultural connections to Port Kembla, helping farmers get their produce to the world."
The South West Illawarra Rail Link (SWIRL) reopened this week after being closed since March due to flood damage.
"We could quadruple the amount of grain we could get to port, which has been identified as a capacity constraint, so we can't get the grain fast enough to load on the ship and get it overseas," Mr Madden said.
Farmers in NSW produce more than $17 billion worth of food and fibre every year, or about 25 per cent of total national production, with primary industries exports valued at $6.6 billion in 2020–21.
NSW farmers have expressed concerns that, without significant improvement in rail access and operations at ports, growth opportunities will be wasted and economic growth missed.
Rail Track Corporation working with industry stakeholders
The Australian Rail Track Corporation (ARTC) said it was already actively working with stakeholders to understand the demand and requirements of the future.
A spokesperson said the supply chain from paddock to port was complex and would require many stakeholders and investors to work together on increases to capacity.
"In New South Wales, ARTC is currently delivering over $500 million of major works that will allow freight to be moved more efficiently and effectively," the spokesperson said.
"This includes the Port Botany Rail Line Duplication and the Cabramatta loop allowing freight trains travelling in either direction to pass each other on the Southern Sydney Freight Line, the Southern Highlands Overtaking Opportunities, and Narrabri to Turrawan Line Upgrade," they said.
Mr Madden said he would like to see further investments from the NSW government to improve the infrastructure too.
He said while the extensive rain across NSW could make this year's harvest a difficult one, there would be good years ahead and farmers wanted to prepare for those now.
"Farmers are investors to ensure they are ready to capitalise on the big years, and that's what we'd like to see the government along with farmers and industry do, so we can take advantage of those years when they appear," he said.
The task force will hold its first meeting next week.