7 April 2014

Federal Member for Hume Angus Taylor says the tender process to reopen the Cowra Rail Lines under private sector management is a test case for inland rail along the east coast.

“After years of lobbying from local councils, the recent announcement from the NSW Roads and Ports Minister Duncan Gay is welcome indeed. Tenders are open to the private sector until the end of July and if a suitable applicant is identified, a contract will be issued for the reopening, operation and maintenance of these stretches of line, representing some 200km of track,” Mr Taylor said.

The lines from Blayney to Demondrille and Koorawatha to Greenthorpe, known as the Cowra Lines, were closed between 2007 and 2009 because of lack of freight and the high costs of maintenance.

Mr Taylor said the innovative, market driven approach of tendering for private sector maintenance and operation, signalled a shift in government thinking toward regional infrastructure investment.

“It’s all about finding bulk freight that’s currently on road and moving it over to rail – timber, grain, minerals. That’s how to get these lines reopened,” he said.

“We also clearly have investors interested in taking over these lines and I see this as a test case for broader rejuvenation of rail on the east coast. What’s unique about this, is that we are effectively giving one company management of the line. That company becomes the carrier for the bulk freight and there’s money to be made there.

“The railway line will continue to be owned by government and be part of the NSW Rail Network, but operation and maintenance will be privately run.

“The area where rail has been most successful around the world in recent years has been in bulk freight - in iron ore, in coal and in grain. That’s where we see rail growing right throughout the world. We’ve seen it in the Pilbara, we’ve seen it in Queensland and we’ve seen it in the Hunter Valley. That’s the opportunity.”

Caption: “Encouraging private sector investment in inland rail will secure its future,” Angus Taylor Member for Hume at an abandoned part of the Cowra Rail Lines recently.