Melbourne to Brisbane Inland Rail project balloons to $31bn, scathing new report says

The timeline for the planned freight network between Melbourne and Brisbane has run off track with its cost nearly doubling to $31bn, according to a new report.

Two new freight terminals should be developed concurrently in Melbourne, according to a damning new report, which reveals the Inland Rail project is late and its cost has nearly doubled to $31bn in two years.

A scathing independent review of the planned 1700km freight network between Melbourne and Brisbane, conducted by business executive Dr Kerry Schott, warns the need to deliver new intermodal terminals is “becoming urgent”.

Infrastructure Minister Catherine King, who will on Thursday respond to Dr Schott’s recommendations, said the findings were an indictment of the Coalition’s approach to government.

The report recommends that a freight terminal at Beveridge in Melbourne’s north be made available “as soon as practical” because it can be operational in time for Inland Rail in 2027, while concurrently building Western Interstate Freight Terminal at Truganina.

Catherine King says the findings are an indictment of the Coalition. Picture: Dan Peled

The facility in Melbourne’s west, which will “take longer” to develop, is expected to become the larger operation and can be connected to the western line for an estimated $1.8bn after 2031.

Dr Schott recommends that both sites should be run by independent operators.

But the National Intermodal Corporation should be given preference to develop Beveridge because it can offer open access and has the option to purchase land.

The Herald Sun in January revealed Ms King was supportive of both sites, mirroring the Morrison government which had also committed $1.6bn to the Beveridge facility.

The Victorian government wanted to prioritise Truganina, with Victoria’s main terminal at Dynon to reach full capacity in 2027 and close in 2031.

Dr Schott found the $14.5bn Inland Rail project was at least four years late and over budget due to poor governance and inadequate skills at the Australian Rail Track Corporation; prompting several recommendations about an overhaul.

The Melbourne to Parkes, NSW route is due to be completed by 2027. But the end point and final project completion date of 2031 remains uncertain.

“To leave a project without a start or end point, with a significant budget blowout, and a board without the skills it required is shameful,” Ms King said. “They have let down communities and businesses which have already invested time, effort and money in the prospect of Inland Rail.”

Finance Minister Katy Gallagher slammed the Liberal and National parties, saying they were “hopeless managers of both the economy and projects big and small”.

“To have the cost nearly double to more than $30bn in two years, and not even be able to have confidence in the figures is – as Dr Schott said – astonishing.”