CSIRO used its Transport Network Strategic Investment Tool (TraNSIT) to conduct a supply chain analysis which indicates transport cost savings of $64 per tonne to $94 per tonne, by moving freight onto the Inland Rail line.
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The CSIRO's findings eclipse a 2015 study which previously forecast an overall freight cost reduction of $10 per tonne could be achieved. The analysis has forecast a potential average transport cost saving of $76 per tonne for horticulture products and post-processed food road trips shifted onto the Inland Rail.
Deputy Prime Minister and Minister for Infrastructure, Transport and Regional Development Michael McCormack said the costing analysis was justification of the decision to commit $9.3 billion to build the Inland Rail route.
"Inland Rail has been described as a game-changer for our farmers and rural and regional communities and the CSIRO's analysis showing freight savings of up to $94 per tonne highlights why we're building this 1700-kilometre corridor of commerce," Mr McCormack said.
"Higher freight savings per tonne means more money going into farmers' pockets which is especially critical for those doing it tough, due to drought."
National Farmers' Federation NFF chief Executive Officer Tony Mahar said the Inland Rail project had the potential to transform the movement of east coast agricultural freight, with up to 70 per cent of Australian agricultural produce exported.
"The NFF welcomes CSIRO's conclusion that the landmark infrastructure project could save horticulture growers an average of $76 per tonne in transport costs and result in 63,000 fewer heavy vehicle trips per year along sections of the Newell Highway," he said.
The NFF welcomes CSIRO's conclusion that the landmark infrastructure project could save horticulture growers an average of $76 per tonne in transport costs.
- Tony Mahar
TraNSIT was used to examine freight movements and costs associated with supply chains linked to the Parkes to Narromine of the Inland Rail in Central West NSW and will look at others; including the southern half of the corridor from Narromine to Seymour and the northern half of between Narromine and Toowoomba.
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