Commonwealth Review of the NSW grain network: preliminary NSW government response

Over the next three years, a systematic program of investment be undertaken to stabilise the conditions of the lines listed below to ensure that they can be reliably operated (at a minimum) as Class 5 lines:

• Star to Moree
• Walgett to Burren Junction
• Merrywinebone to Narrabri (Merrywinebone - Burren)
• Warren to Nevertire
• Tottenham to Bogan Gate
• Coonamble to Troy Junction
• Lake Cargellico to Temora (Lake Cargelligo - Ungarie, Ungarie - West Wyalong and Ungarie - Temora)
• Naradhan to Ungarie
• Hllston to Griffith

The NSW Government and the owners of fixed infrastructure along the Weemelah-Camurra Junction line enter into negotiations on appropriate arrangements for the sharing of the costs of upgrading the line:

• The line be retained if these negotiations result in a cost-sharing agreement acceptable to all parties.
• If the negotiations do not result in a satisfactory cost-sharing agreement, the line be closed.

Agree. NSW Transport and Infrastructure has discussed cost sharing arrangements with the owners of fixed infrastructure along this line. GrainCorp has agreed to contribute to upgrades on the Weemelah line through a $1 per tonne surcharge on access fees.

GrainCorp has committed to ongoing discussions about long-tem cost sharing arrangements, through revised access charges for growers, for the entire network rather than on a line specific basis.

The NSW Government and the owners of fixed infrastructure along the Boree Creek to The Rock line enter into negotiations on appropriate arrangements for the sharing of the costs of upgrading the line:

• The line be retained if these negotiations result in a cost-sharing agreement acceptable to all parties.
• If, the negotiations do not result in a satisfactory cost-sharing agreement, the line be closed.

A detailed independent study of the potential use of the Cowra lines for the movement of containers and other non-grain traffics be undertaken. This study should proceed with the financial support from the NSW Government and in consultation with Lachlan Regional Transport Committee members:

• The scope of this study should include an assessment of the Cowra-Blayney link.
• In the event that the results of the study indicate, to the satisfaction of the track owner, that there is economic justification for the retention (or reinstatement) of some or all of the lines under consideration, the lines be retained and stabilised (at a minimum) as Class 5 lines. The cost should be met by the NSW Government through a non-recoverable grant to the rail track owner.
• If the results of the study do not indicate a viable case for retention, the lines be closed.

Services were suspended on these lines on 1 September 2009 due to safety concerns.

The NSW Government supports the undertaking of a business case study to determine if recommencement of services and the long term retention of these lines is warranted.

In considering future access charges, the access provider should also take account of:

• the principles and approach underpinning the determination of access charges in other states;
• progress with parallel road pricing reforms so that future increases in branch line network access charges do not have the unintended consequence of shifting grain freight to road; and
• the ability of industry to pay.