Article: Little gain for rail in Government grain response

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Little gain for rail in Government grain response

Little gain for rail in Government grain response
by Rail Express — last modified Dec 19, 2012 02:51 PM
— filed under: Weekly Top Stories, Rail

The Victorian Government has handed down its response to the December 2011 report from the Grain Logistics Taskforce and while there is in principle agreement with most of the Taskforce recommendations there is little commitment in the way of additional funding for the required rail upgrades.

After several years of poor harvest, the 2010/11 Victorian grain harvest was a record at 7.1 million tonnes. This placed significant pressure on the grain supply chain, particularly for exports, with around 30% of that harvest still in storage in October 2011.

As a result this pressure the Government established a Grain Logistics Taskforce (Taskforce) in August 2011 to recommend improvements to the efficiency and capacity of Victoria's grain storage and handling system including the rail and road networks.

The Taskforce presented its report to the Minister for Ports in December 2011. Since then, the government has implemented a number of the recommendations of the Taskforce, and says it is making progress on many more.

The Department of Transport (DoT) has worked with VicRoads and V/Line to review the recommendations in the Taskforce report and to provide advice to government regarding their implementation.

At the request of the Minister for Ports, the Taskforce reconvened in July and October 2012 to review the report's recommendations and update their advice with regard to any current issues for the coming harvest.

The Taskforce considered that the grain supply chain is currently performing well compared to this time last year and that progress has been made in a number of areas, by both industry and government, to improve the smooth functioning of the supply chain. It is anticipated they will continue to meet at six monthly intervals or as needed. It will meet again in February 2013.

The original report recommended that the DoT work with track managers, rail operators and grain companies to review and assess the merits of funding the rail infrastructure issues raised.

The Government says the DoT and V/Line have considered the infrastructure proposals put forward by Pacific National and GrainCorp in the Taskforce Report.

A number of 'quick wins' were identified and have been implemented including the reopening of the Dimboola to Rainbow railway line, improved safe working or operational arrangements at a number of locations, and work by the DoT to facilitate alternative freight train operating arrangements during the construction of the Regional Rail Link.

It says a number of other proposed infrastructure improvements which would need to be funded require further evidence to support the development of a business case and further discussion with rail operators and customers.

When the Taskforce met again in July 2012, they agreed to establish a rail sub-group to continue to focus on ways in which the performance of the rail network and of rail operators can be further improved. The Subgroup met in September 2012 to identify priorities for action arising from the Taskforce report.

The upgrade of the Geelong Grain Loop and associated works to improve access to the Loop is one immediate priority which is now being actioned in conjunction with the grain industry, V/Line and the Australian Rail Track Corporation.

Managing Director of RED Strategic Planning and former CEO of Victorian Freight and Logistics Council, Rose Elphick acknowledges that the investment of GrainCorp in Geelong is a positive step and indicates preparedness of the industry to invest in infrastructure to service customer demand, but she says that most of the Government's response on rail only amounts to 'in principle support' of the Taskforce recommendations.

"In reality there is little funding available for investment left after passenger priorities, and the majority of investment has been to facilitate passenger schedule improvements and has incidentally improved the shared infrastructure for freight on the V/Line network."

"This year's harvest is considered a return to average. The difference this year is greater preparedness with up country storage bunkers and on-farm silos and probably greater availability of road transport due to slower activity in the resources sector."

"What would really help is a mass management scheme in Victoria and improved permit enforcement activities so that local roads are used strategically and there is less widespread wear from heavy trucks."

An initial and high level assessment has been undertaken of increasing axle loading to 21 tonnes for three Victorian lines that connect to the ARTC network in line with the overall Taskforce recommendation to lift axle loads, but the Government says more detailed work is needed to prepare a business case for future funding rounds.

"The rail situation is frustrating. Maintenance allocations need to be focused on speed and axle loadings, as much of the freight network is subject to weight and speed limits. These erode the benefits of port investment and limit rail delivery cycles," Elphick says.

"Some upgrades that take into account future standard gauge conversion have taken place, but there has been no actual conversion except in the NE with ARTC," she concluded.

The Victorian Government's response to the Grain Logistics Taskforce Report can be found HERE