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Posted by David Sexton
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6 May, 2026
FEDERAL infrastructure minister Catherine King has cited whopping cost blowouts on Inland Rail for the decision to pause the project at Parkes in central New South Wales.
In a statement from Ms King’s office, it was stated that the government had taken the decision to consolidate the Inland Rail project by completing construction between Beveridge in Victoria and Parkes in New South Wales by the end of 2027.
This is aimed at enabling double-stacked freight trains to travel between Melbourne and Perth, via Parkes.
According to the government, this decision follows “independent cost assurance work” by ACIL Allen Pty Ltd, which said the cost estimate for connecting Melbourne and Brisbane would now exceed $45bn.
This was said to be more than three times the current budget allocation with the project not expected to be delivered until at least 2036.
Kerry Schott AO’s 2023 independent review of Inland Rail found the estimated cost of delivering Inland Rail had increased from $16.4bn in 2020 to at least $31.4bn in 2022 with delay and “immature preliminary designs” suggesting little certainty on the actual cost to deliver the project.
Dr Schott recommended the appointment of an independent value engineer to further assess the cost estimate.
Inland Rail works north of Parkes are to focus on preservation of the rail corridor, as well as protecting sites for future Inland Rail intermodal terminals in Queensland.
The government has said it will continue prioritising investments that deliver resilience, reliability and productivity to the ARTC’s existing rail freight network.
The government has said it is also announced a further $1.75 billion investment to improve the productivity, resilience and reliability of Australia’s freight rail network, alongside a $55 million incentive scheme to get more freight shifted by rail and sea.
“The Albanese Government’s $1.75 billion investment in the ARTC network will shift more freight onto rail and protect this network for decades to come,” Ms King said.
“This is critical funding. The 2023 independent review found major deficiencies in the governance and delivery of Inland Rail.
“We are taking sensible decisions to realign the future of Inland Rail and build a safe, efficient and reliable network for the future."
