Feds announce rail, sea freight switch incentives

ACCOMPANYING today’s announcement of the truncation of the Inland Rail project and an extra $1.2 billion for rail network improvements the Federal Government revealed a new $55 million program to incentivise more freight to move via trains and cargo ships.

“The Commonwealth, state and territory infrastructure and transport Ministers agreed in November 2025 to identify opportunities to move more freight by rail,” transport and infrastructure minister Catherine King said.

“The Transport Resilience And Capacity Kickstart (TRACK) pilot program will support more fuel-efficient freight movements across Australia, which is especially relevant while the conflict in the Middle East continues to affect global fuel supply.

“This work will also include the establishment of a coordinator within the ARTC to identify and implement improvements to rail operations in conjunction with other rail infrastructure managers,” the minister said, without providing an more detail.

Andrew Harding, managing director and chief executive of diversifying railco Aurizon, welcomed the initiative: “This is something we have been advocating for a long time and in the context of the current fuel crisis, it makes a lot of sense.

“Rail can use five times less fuel for the same freight task, so getting more freight on rail will help save fuel and help our nation better manage the impacts of any global fuel shortages.”

There was a little more caution from the shipping side of the TRACK, however, with Shipping Australia advising it will await more detail of the plan before offering more meaningful comment.

Maritime Industry Australia chief executive Angela Gillham is also looking forward to further detail.

“There are multiple trades where a dedicated coastal service makes a lot of sense but eliciting change from the status quo can be challenging,” Ms Gillham said.

“Given the huge opportunity that sea transport presents to the Australian freight system, from a fuel efficiency and road congestion perspective, we intend to engage closely with government to ensure dedicated effort towards bringing those opportunities to fruition.”

The shipping industry and maritime unions are still awaiting details of the long-promised (by Labor) Strategic Fleet, which could play a role in the TRACK ambition. Sources indicate announcements may be made in June but as one interested party commented, “I’m not holding my breath”.