Leading Australian agriculture network Viterra and Australia’s largest rail freight operator Aurizon are steering a push to reinstate rail freight on the Eyre Peninsula to benefit local growers, communities and exporters.
Aurizon and Viterra have submitted a formal application for Federal Government funding for the upgrade and reopening of the Eyre Peninsula rail network between Port Lincoln and Cummins and Cummins to Wudinna and Kimba.
The proposal includes upgrading the currently closed narrow gauge line from Port Lincoln to Cummins and from Cummins to Kimba and Wudinna to a level where rail can operate at increased axle weights, improved travel speeds and more reliably in the warmer summer period.
Viterra Australia Chief Operations Officer, James Murray says Viterra supports reinstating rail on the Eyre Peninsula to benefit local growers and communities and its export customers.
“Viterra operates an efficient and effective fully-integrated network on the Eyre Peninsula and is committed to a long term future in the region,” James says.
“Partnering with Aurizon and the State and Federal Governments to fund an upgraded rail system on the Eyre Peninsula would create significant long-term economic, social and environmental benefits for local growers and communities, export customers, government and flow on effects for the state.
“For Eyre Peninsula growers, it means they will have more opportunities to achieve higher prices for their grain, with increased supply chain capacity and shipments in the first half of the year when global demand for Australian grain is higher and pricing is at a premium.
“The project will also provide reductions in freight costs, which Viterra passes back to grower customers.
“There are many positive opportunities for the Eyre Peninsula community from this project, including the reduction of approximately 25,000 tonnes of CO2 equivalent a year, the removal of approximately 42,000 truck movements between upcountry sites and Port Lincoln each year, and the creation of local jobs throughout the construction process and once rail is operational.”
If the project receives government funding, significant infrastructure upgrades will take place at Viterra’s sites to support the reintroduction of rail in the region. This includes fast rail outloading infrastructure at Viterra’s Lock, Wudinna, Cummins, Kimba and Rudall sites to maximise the efficiency of using rail and inloading infrastructure at its Port Lincoln terminal to reduce turnaround times for rail and increase volume capabilities.
Aurizon and Viterra are making long-term commitments to the Eyre Peninsula rail network if it is reinstated. Aurizon will maintain the line once upgraded and invest in the rollingstock fleet to meet Viterra’s commitment of moving at least 1.3 million tonnes of grain on the rail network each year.
Aurizon’s Adelaide-based General Manager Bulk Central, Matt Jones says Aurizon is keen to invest in and grow its rail business following on from its acquisition of One Rail in mid-2022.
“Aurizon is the nation’s largest hauler of grain, supporting growers in South Australia, Western Australia, New South Wales and Queensland,” Matt says.
“We see a great opportunity to work with Viterra and provide efficient and reliable supply chain operations for grain producers and to get grain back on rail on the Eyre Peninsula, one of Australia’s most valuable and productive grain-growing regions. Not only is rail the most efficient mode for bulk freight like grain, but it also delivers major benefits for the community by reducing the need for thousands of truck journeys on regional roads and achieving a significant reduction in greenhouse gas emissions.”
The agriculture industry is an important economic contributor to the state and regional economies, with an estimated value of the 2022/23 season crop at around $5.3 billion. Continuing to build a more efficient grain supply chain in the state will encourage more buyers to access local growers’ grain and have flow on benefits for the entire state.
BACKGROUND
In 2019, Viterra made the decision it could no longer use rail to transport grain on the Eyre Peninsula due to the condition of the line and the restrictions it placed on operations. Rail was no longer an efficient or cost effective way to move growers’ grain in the region. Viterra continues to use rail to transport major volumes of grain in the Central and Eastern regions of its network to accumulate grain from upcountry sites down to port terminals for loading on to vessels.