THE four grain freight branch rail lines closed by WestNet Rail on June 15 have reopened and all rail lines will remain open during the 2009-10 season.
State Minister for Transport Simon O’Brien made the announcement at a hastily convened media conference in Geraldton last Thursday.
At the joint conference with WestNet chief executive Paul Larsen, Mr O’Brien said the basis of the agreement with WestNet Rail was the setting up of the Strategic Grain Network Committee to “take a leading role in examining and providing advice and recommendations on the future of the State’s grain rail network and the Government’s possible investment in it”.
Mr O’Brien said the committee will make an interim report by the end of July and “productive and credible recommendations before the end of 2009”.
What Mr O’Brien did not tell the media conference was that WestNet Rail threatened to shut down virtually the whole grain freight network south and east of Northam, including its spine, the Northam to Albany line.
This is probably the reason the media conference was held in Geraldton – which will not be affected by any line closures – with only half an hour’s notice given with a probable audience of mainly seagulls.
The whole event was clearly staged in haste.
Mr O’Brien’s media release even has the Strategic Grain Network Committee morph into the ‘council’.
The news of WestNet Rail’s plans to close the bulk of the grain freight network came in a June 16 memorandum from ARG’s group general manager bulk west Ken Potts to all grain staff.
ARG, owned by Queensland Rail, owns the locomotives and rolling stock, while WestNet Rail leases the lines from the State Government.
Mr Potts said the four lines already closed would have a minimal impact on ARG business.
“However, WestNet has also advised us that unless government funding is made available, it will move to close a large portion of the narrow-gauge rail network after 1 November and no later than 31 December 2009,” he wrote to staff.
“On Monday the Minister for Transport announced that he would not agree to funding upgrades to WA’s grain freight network with a gun held to his head.
“I know you will be concerned by the announcements, I share your concern.”
It is understood that last Friday ARG made one employee in Northam redundant, two in Geraldton and an unknown number in Welshpool.
The grain transport industry is in a state of flux, with rapid changes in the grain industry.
Since the demise of the single desk selling there has been increased grain segregation and special deals.
Some observers doubt whether rail has the flexibility for this environment.
Shire of York chief executive officer Ray Hooper was at a local government conference in Canberra last week and said the prevailing view there was that rail did not offer a long-term solution.
“It just not have the flexibility for specialised loading,” he said.
“CBH said it favoured rail transport but it is closing its smaller sites which is making rail less viable.”
The situation is further complicated by the Western Australian Local Government Association claim that an increase of road transportation of grain would cause an unfair burden on local communities to maintain roads. WALGA even suggested that councils should refuse to issue concessional load permits to minimise the number of large trucks on local roads.