The WA parliamentary question concerns the government's responsibility for upgrading the Manjimup to Bunbury railway line, given the potential for increased woodchip transport by road. The answer details the financial constraints resulting from the previous government's sale of Westrail and outlines ongoing transport studies in the southwest region.

AnsweredQoN 1539Legislative Council
Asked
19 November 2003
Portfolio
Planning and Infrastructure

QuestionView source ↗

I refer to the possibility of woodchips being transported by road on the South Western Highway. What responsibility does the Government have for upgrading the railway line between Manjimup and Bunbury? Hon KEN TRAVERS

AnswerView source ↗

I thank the member for some notice of this question. In view of the length of the answer, I seek leave to have the answer incorporated in Hansard . Leave granted. The following material was incorporated - __________________________________________________________________________________________ Up to December 2000, when the previous Government sold Westrail to the Australian Railroad Group, the rail freight network in Western Australia was the responsibility of the State Government. The previous Government justified the low sale price claiming that the ARG bid included a proposal to make investments in rolling stock and infrastructure totalling approximately $400 million over the first five years. However, this $400 million commitment is not contained in the sale contract and there is no obligation on ARG to invest the $400 million. The State Government’s ability to invest in the privatised rail network is reduced as a result of the ongoing cost to taxpayers resulting from the sale of Westrail. The residual debt remaining after the sale was $331 million and the annual cost of servicing this debt is over $20 million per annum. The pre-sale debt of Westrail freight was serviced fully by revenue from the freight business. In addition, the post sale management costs amount to an additional $3 to 4 million per year bringing the total post sale cost to the State to approximately $25 million each year. However, the State Government is looking at ways to increase the amount of freight carried by rail in the south west. The Department for Planning and Infrastructure is currently undertaking a number of transport studies in the south west region including the south west new transport task assessment study, the south west rail freight analysis and the logs on rail study. These studies are all due to be completed by the end of the year. __________________________________________________________________________________________
Hon KEN TRAVERS replied: I thank the member for some notice of this question. In view of the length of the answer, I seek leave to have the answer incorporated in Hansard . Leave granted. The following material was incorporated - __________________________________________________________________________________________ Up to December 2000, when the previous Government sold Westrail to the Australian Railroad Group, the rail freight network in Western Australia was the responsibility of the State Government. The previous Government justified the low sale price claiming that the ARG bid included a proposal to make investments in rolling stock and infrastructure totalling approximately $400 million over the first five years. However, this $400 million commitment is not contained in the sale contract and there is no obligation on ARG to invest the $400 million. The State Government’s ability to invest in the privatised rail network is reduced as a result of the ongoing cost to taxpayers resulting from the sale of Westrail. The residual debt remaining after the sale was $331 million and the annual cost of servicing this debt is over $20 million per annum. The pre-sale debt of Westrail freight was serviced fully by revenue from the freight business. In addition, the post sale management costs amount to an additional $3 to 4 million per year bringing the total post sale cost to the State to approximately $25 million each year. However, the State Government is looking at ways to increase the amount of freight carried by rail in the south west. The Department for Planning and Infrastructure is currently undertaking a number of transport studies in the south west region including the south west new transport task assessment study, the south west rail freight analysis and the logs on rail study. These studies are all due to be completed by the end of the year. __________________________________________________________________________________________
I thank the member for some notice of this question. In view of the length of the answer, I seek leave to have the answer incorporated in Hansard . Leave granted. The following material was incorporated - __________________________________________________________________________________________ Up to December 2000, when the previous Government sold Westrail to the Australian Railroad Group, the rail freight network in Western Australia was the responsibility of the State Government. The previous Government justified the low sale price claiming that the ARG bid included a proposal to make investments in rolling stock and infrastructure totalling approximately $400 million over the first five years. However, this $400 million commitment is not contained in the sale contract and there is no obligation on ARG to invest the $400 million. The State Government’s ability to invest in the privatised rail network is reduced as a result of the ongoing cost to taxpayers resulting from the sale of Westrail. The residual debt remaining after the sale was $331 million and the annual cost of servicing this debt is over $20 million per annum. The pre-sale debt of Westrail freight was serviced fully by revenue from the freight business. In addition, the post sale management costs amount to an additional $3 to 4 million per year bringing the total post sale cost to the State to approximately $25 million each year. However, the State Government is looking at ways to increase the amount of freight carried by rail in the south west. The Department for Planning and Infrastructure is currently undertaking a number of transport studies in the south west region including the south west new transport task assessment study, the south west rail freight analysis and the logs on rail study. These studies are all due to be completed by the end of the year. __________________________________________________________________________________________
Leave granted. The following material was incorporated - __________________________________________________________________________________________ Up to December 2000, when the previous Government sold Westrail to the Australian Railroad Group, the rail freight network in Western Australia was the responsibility of the State Government. The previous Government justified the low sale price claiming that the ARG bid included a proposal to make investments in rolling stock and infrastructure totalling approximately $400 million over the first five years. However, this $400 million commitment is not contained in the sale contract and there is no obligation on ARG to invest the $400 million. The State Government’s ability to invest in the privatised rail network is reduced as a result of the ongoing cost to taxpayers resulting from the sale of Westrail. The residual debt remaining after the sale was $331 million and the annual cost of servicing this debt is over $20 million per annum. The pre-sale debt of Westrail freight was serviced fully by revenue from the freight business. In addition, the post sale management costs amount to an additional $3 to 4 million per year bringing the total post sale cost to the State to approximately $25 million each year. However, the State Government is looking at ways to increase the amount of freight carried by rail in the south west. The Department for Planning and Infrastructure is currently undertaking a number of transport studies in the south west region including the south west new transport task assessment study, the south west rail freight analysis and the logs on rail study. These studies are all due to be completed by the end of the year. __________________________________________________________________________________________
The following material was incorporated - __________________________________________________________________________________________ Up to December 2000, when the previous Government sold Westrail to the Australian Railroad Group, the rail freight network in Western Australia was the responsibility of the State Government. The previous Government justified the low sale price claiming that the ARG bid included a proposal to make investments in rolling stock and infrastructure totalling approximately $400 million over the first five years. However, this $400 million commitment is not contained in the sale contract and there is no obligation on ARG to invest the $400 million. The State Government’s ability to invest in the privatised rail network is reduced as a result of the ongoing cost to taxpayers resulting from the sale of Westrail. The residual debt remaining after the sale was $331 million and the annual cost of servicing this debt is over $20 million per annum. The pre-sale debt of Westrail freight was serviced fully by revenue from the freight business. In addition, the post sale management costs amount to an additional $3 to 4 million per year bringing the total post sale cost to the State to approximately $25 million each year. However, the State Government is looking at ways to increase the amount of freight carried by rail in the south west. The Department for Planning and Infrastructure is currently undertaking a number of transport studies in the south west region including the south west new transport task assessment study, the south west rail freight analysis and the logs on rail study. These studies are all due to be completed by the end of the year. __________________________________________________________________________________________
Up to December 2000, when the previous Government sold Westrail to the Australian Railroad Group, the rail freight network in Western Australia was the responsibility of the State Government. The previous Government justified the low sale price claiming that the ARG bid included a proposal to make investments in rolling stock and infrastructure totalling approximately $400 million over the first five years. However, this $400 million commitment is not contained in the sale contract and there is no obligation on ARG to invest the $400 million. The State Government’s ability to invest in the privatised rail network is reduced as a result of the ongoing cost to taxpayers resulting from the sale of Westrail. The residual debt remaining after the sale was $331 million and the annual cost of servicing this debt is over $20 million per annum. The pre-sale debt of Westrail freight was serviced fully by revenue from the freight business. In addition, the post sale management costs amount to an additional $3 to 4 million per year bringing the total post sale cost to the State to approximately $25 million each year. However, the State Government is looking at ways to increase the amount of freight carried by rail in the south west. The Department for Planning and Infrastructure is currently undertaking a number of transport studies in the south west region including the south west new transport task assessment study, the south west rail freight analysis and the logs on rail study. These studies are all due to be completed by the end of the year. __________________________________________________________________________________________
The previous Government justified the low sale price claiming that the ARG bid included a proposal to make investments in rolling stock and infrastructure totalling approximately $400 million over the first five years. However, this $400 million commitment is not contained in the sale contract and there is no obligation on ARG to invest the $400 million. The State Government’s ability to invest in the privatised rail network is reduced as a result of the ongoing cost to taxpayers resulting from the sale of Westrail. The residual debt remaining after the sale was $331 million and the annual cost of servicing this debt is over $20 million per annum. The pre-sale debt of Westrail freight was serviced fully by revenue from the freight business. In addition, the post sale management costs amount to an additional $3 to 4 million per year bringing the total post sale cost to the State to approximately $25 million each year. However, the State Government is looking at ways to increase the amount of freight carried by rail in the south west. The Department for Planning and Infrastructure is currently undertaking a number of transport studies in the south west region including the south west new transport task assessment study, the south west rail freight analysis and the logs on rail study. These studies are all due to be completed by the end of the year. __________________________________________________________________________________________
The State Government’s ability to invest in the privatised rail network is reduced as a result of the ongoing cost to taxpayers resulting from the sale of Westrail. The residual debt remaining after the sale was $331 million and the annual cost of servicing this debt is over $20 million per annum. The pre-sale debt of Westrail freight was serviced fully by revenue from the freight business. In addition, the post sale management costs amount to an additional $3 to 4 million per year bringing the total post sale cost to the State to approximately $25 million each year. However, the State Government is looking at ways to increase the amount of freight carried by rail in the south west. The Department for Planning and Infrastructure is currently undertaking a number of transport studies in the south west region including the south west new transport task assessment study, the south west rail freight analysis and the logs on rail study. These studies are all due to be completed by the end of the year. __________________________________________________________________________________________
The residual debt remaining after the sale was $331 million and the annual cost of servicing this debt is over $20 million per annum. The pre-sale debt of Westrail freight was serviced fully by revenue from the freight business. In addition, the post sale management costs amount to an additional $3 to 4 million per year bringing the total post sale cost to the State to approximately $25 million each year. However, the State Government is looking at ways to increase the amount of freight carried by rail in the south west. The Department for Planning and Infrastructure is currently undertaking a number of transport studies in the south west region including the south west new transport task assessment study, the south west rail freight analysis and the logs on rail study. These studies are all due to be completed by the end of the year. __________________________________________________________________________________________
In addition, the post sale management costs amount to an additional $3 to 4 million per year bringing the total post sale cost to the State to approximately $25 million each year. However, the State Government is looking at ways to increase the amount of freight carried by rail in the south west. The Department for Planning and Infrastructure is currently undertaking a number of transport studies in the south west region including the south west new transport task assessment study, the south west rail freight analysis and the logs on rail study. These studies are all due to be completed by the end of the year. __________________________________________________________________________________________
However, the State Government is looking at ways to increase the amount of freight carried by rail in the south west. The Department for Planning and Infrastructure is currently undertaking a number of transport studies in the south west region including the south west new transport task assessment study, the south west rail freight analysis and the logs on rail study. These studies are all due to be completed by the end of the year. __________________________________________________________________________________________
The Department for Planning and Infrastructure is currently undertaking a number of transport studies in the south west region including the south west new transport task assessment study, the south west rail freight analysis and the logs on rail study. These studies are all due to be completed by the end of the year. __________________________________________________________________________________________

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