Hon Paddy Embry questions the government's actions to reduce rail freight costs for bulk grain, given road freight's cheaper rates, in light of the 'road safety initiative'. The government clarifies its non-interference in the commercial agreement but outlines initiatives to improve rail competitiveness and road transport standards.

AnsweredQoN 949Legislative Council
Asked
25 June 2003
Portfolio
Planning and Infrastructure

QuestionView source ↗

With regards to the Western Australian Export Grain Transportation and Handling Agreement -
In the drive for freight to be moved by the rail network (the so called road safety initiative for heavy vehicles), what effective action is the Government undertaking to maintain or reduce rail freight costs for the movement of bulk grain now and for the future, given that the current road freight costs are cheaper than rail for the movement of bulk grain on average?

AnswerView source ↗

Answered
19 August 2003
Responded by
Parliamentary Secretary representing the Minister for Planning and Infrastructure
Response time
55 days
The WA Export Grain Transport Handling Agreement is an industry contract between Australian Wheat Board, Australian Railroad Group, Co-operative Bulk Handling, Grain Pool, WA Farmers Federation and Pastoralists and Graziers Association. This contract accounts for export grain rail movements and is not set to expire before 2005. The WA Government is not a party to this agreement and is not a participant in commercial industry decisions regarding grain transport arrangements. Both rail and road freight operates on a private commercial basis, which the Government does not interfere with. The Agreement pricing arrangement contains a fixed component and a variable charge based on a road transport equivalent. This has the effect of reducing rail transport charges in years when there is a large harvest and increasing rail transport charges when there is low production. The WA Government is continuing to implement programs to improve the competitiveness of rail freight transport, such as the Geraldton Southern Transport Corridor and Harbour deepening project and the Freight Network Strategy. The government is pursuing a variety of initiatives and investigations broadly aimed to increase the proportion of freight transported by rail including woodchips, fertiliser and other commodities in the South West, and rail access into Fremantle Port. The Government is also continuing programs such as the operator accreditation and fatigue management, which are designed to ensure road transport operators introduce higher standards of performance.
The WA Government is not a party to this agreement and is not a participant in commercial industry decisions regarding grain transport arrangements. Both rail and road freight operates on a private commercial basis, which the Government does not interfere with. The Agreement pricing arrangement contains a fixed component and a variable charge based on a road transport equivalent. This has the effect of reducing rail transport charges in years when there is a large harvest and increasing rail transport charges when there is low production. The WA Government is continuing to implement programs to improve the competitiveness of rail freight transport, such as the Geraldton Southern Transport Corridor and Harbour deepening project and the Freight Network Strategy. The government is pursuing a variety of initiatives and investigations broadly aimed to increase the proportion of freight transported by rail including woodchips, fertiliser and other commodities in the South West, and rail access into Fremantle Port. The Government is also continuing programs such as the operator accreditation and fatigue management, which are designed to ensure road transport operators introduce higher standards of performance.
The Agreement pricing arrangement contains a fixed component and a variable charge based on a road transport equivalent. This has the effect of reducing rail transport charges in years when there is a large harvest and increasing rail transport charges when there is low production. The WA Government is continuing to implement programs to improve the competitiveness of rail freight transport, such as the Geraldton Southern Transport Corridor and Harbour deepening project and the Freight Network Strategy. The government is pursuing a variety of initiatives and investigations broadly aimed to increase the proportion of freight transported by rail including woodchips, fertiliser and other commodities in the South West, and rail access into Fremantle Port. The Government is also continuing programs such as the operator accreditation and fatigue management, which are designed to ensure road transport operators introduce higher standards of performance.
The WA Government is continuing to implement programs to improve the competitiveness of rail freight transport, such as the Geraldton Southern Transport Corridor and Harbour deepening project and the Freight Network Strategy. The government is pursuing a variety of initiatives and investigations broadly aimed to increase the proportion of freight transported by rail including woodchips, fertiliser and other commodities in the South West, and rail access into Fremantle Port. The Government is also continuing programs such as the operator accreditation and fatigue management, which are designed to ensure road transport operators introduce higher standards of performance.
The Government is also continuing programs such as the operator accreditation and fatigue management, which are designed to ensure road transport operators introduce higher standards of performance.

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