Fuel crisis highlights the role of rail

RAIL can play a critical role as Australia seeks to maximise the use of its diesel stocks, a prominent industry groups says.

The Freight on Rail Group says the government decision to remove road charges in the trucking sector will distort the market, shifting freight off rail and onto roads.

“The ongoing impact to supply arrangements are likely to continue for some time,” said FORG chair Geoff Smith.

“Rail freight will continue to be a key aspect of the national response, particularly in the event of further disruptions.

“Rail freight is considerably more diesel efficient in moving large volumes over longer distances compared to the road freight sector.”

Mr Smith freight rail moved essential goods every day, including food and groceries for Australian households, as well as strategically important exports that underpin national income and regional jobs.

“The retention of existing rail freight on the network must be a priority,” he said.

“In turn, the potential to utilise current rail network capacity provides government a unique opportunity in maximising our diesel usage and preserving supplies across the broader Australian supply chain.”

FORG has approached federal and state governments about extending the life of the nation’s diesel stocks and preserve supplies of critical groceries, consumer goods and industrial freight.

“We are seeking an equivalent incentive package to the trucking sector which will help ensure that we don’t squander the significant contribution rail can make in reducing fuel usage,” Mr Smith said.

“We look forward to a quick resolution to the current discussions with government in this time of national crisis.”

FORG consists of the nine major rail freight businesses in Australia: Pacific National, Australian Rail Track Corporation (ARTC), One Rail Australia, Aurizon, Qube Holdings, SCT Logistics, Arc Infrastructure, WatCo Australia, and Southern Shorthaul Railroad (SSR).