Freight line from our South-East to Vic would speed economic recovery
A freight rail line connecting the South-East with Victoria would provide a shot in the arm to help the region’s economy recover, the Regional Development Australia (RDA)’s Limestone Coast arm says.
SA News
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A freight rail line connecting the South-East with Victoria would provide a shot in the arm to help the region’s economy recover from the coronavirus pandemic, its proponents say.
It comes as Regional Development Australia (RDA)’s Limestone Coast arm has submitted a report on the proposal to Infrastructure Australia, in a bid to seek political backing for the project.
It would cost roughly $120m-$150m to reinstate the rail line between Mount Gambier and Heywood in southwestern Victoria, the organisation’s chairman Peter Gandolfi said, and would save $15m in freight costs.
A CSIRO report earlier this year found linking the South-East with existing services at Heywood would help local products more efficiently reach major Australian ports and markets.
“If governments are looking at stimulating the economy, the best way to do that is projects that provide not only stimulation through the project stage but a long-term benefit – and this meets both those criteria,” Mr Gandolfi said.
“Not only does it require substantial local works but in the end, it will secure industries in our region and also entice new investment because businesses have that ability to compete with other regions that do have a rail service.”
From Heywood, produce could easily be shipped to other ports and markets, such as Melbourne.
Kimberly Clark’s Millicent mill is expected to be the major beneficiary, but it would also be a win for other sectors such as agriculture.
The RDA hopes Infrastructure Australia’s assessment will lead to the Federal Government funding the project, with support from the SA and Victorian governments.
“While a lot of the product might be coming from here, it would also be a big lift to Victoria because it would put more freight on their lines,” Mr Gandolfi said.
“It also adds work to Victorian ports. There’s an obvious benefit for the Australian economy with the increase in exports.”
The line to Heywood was last used for freight in 1995. The investment to upgrade the Mount Gambier to Heywood line also includes establishing a freight depot on Mount Gambier’s eastern outskirts.
Mount Gambier Council chief executive Andrew Meddle said the project would be a good investment to help move products out of the region and reduce the number of trucks on local roads.
“This is just what a lot of businesses need,” he said.
A spokesman for deputy Prime Minister Michael McCormack said in June the Federal Government announced a $145m joint investment in roads and infrastructure in South Australia, in partnership with the State Government.
“Should the South Australian or Victorian governments identify works to the line between Mount Gambier and Heywood as a priority, federal funding would be considered through usual budget processes,” he said.
Transport Minister Corey Wingard said work was underway to investigate upgrades to the Princes Highway corridor worth more than $250m, jointly funded by the Federal and State Governments.
“The Marshall Government is investing more than $1.1 billion in our regional road network including safety upgrades to the Riddoch and Dukes Highway,” he said.