Viterra, Aurizon lobby federal government in bid to revive Eyre Peninsula rail line

Grain handler Viterra and rail operator Aurizon are lobbying government for funding to support a $220m revival of the Eyre Peninsula rail line.

Viterra’s grain storage facility at Port Lincoln. The company is making a push to reinstate rail freight in the region.

Bulk grain handler Viterra is steaming ahead with a $220m plan to revive rail freight on the Eyre Peninsula, four years after it was terminated due to the poor condition of the region’s rail network.

Viterra and rail operator Aurizon are lobbying the federal government for funding to upgrade the rail line connecting Port Lincoln with Cummins, Wudinna and Kimba, which they say, would benefit local growers and exporters.

Viterra stopped using the Eyre Peninsula rail network to cart grain in May 2019 due to the deterioration of the rail infrastructure and increasing costs.

The company’s chief operations officer James Murray said a reinstatement of the line would remove about 42,000 truck movements between up-country sites and Port Lincoln each year.

“Viterra operates an efficient and effective fully-integrated network on the Eyre Peninsula and is committed to a long-term future in the region,” he said.

“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.

Viterra’s plans would remove 42,000 truck movements between up-country sites and Port Lincoln each year.

“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.”

Aurizon and Viterra have submitted a formal application for federal government funding for the project, which would require upgrades to the closed narrow gauge line which connects Port Lincoln to Cummins and then splits into two lines from Cummins to Kimba and Cummins to Wudinna.

The upgrades would need to support increased axle weights, improved travel speeds and reliable operation in the warmer summer period.

Port Lincoln's Viterra grain storage … Aurizon took over control of the Eyre Peninsula rail network last year.

The project is expected to cost about $220m.

Viterra would invest in “significant infrastructure upgrades” at its sites if the project receives government funding, the company said, while Aurizon would maintain the line and invest in the rolling stock fleet to support Viterra’s commitment of moving at least 1.3 million tonnes of grain on the rail network each year.

Aurizon took over control of the Eyre Peninsula rail network last year following its acquisition of previous owner One Rail Australia.

The company’s bulk central general manager Matt Jones said the company was keen to grow the newly-acquired rail business.

“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,” he said.

“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 rail upgrade is expected to reduce carbon emissions by about 25,000 tonnes each year.