Opinion: Will Inland Rail become nation’s longest rust line?

The Federal Government is at risk of building Australia’s longest rust line - the Inland Rail. Pauline Hanson explains.

In order to lessen traffic congestion, Australia relies heavily on multi-model freight transportation.

The once symbiotic relationship between rail, road, and shipping ensured everyday household and commercial items were moved across vast distances, with limited effect on day-to-day road users.

But without a properly regulated relationship between the three predominant transport modes, the Federal Government could be building Australia’s longest rust line – the Inland Rail.

The disparity between Australia’s interstate rail industry and foreign-flagged coastal shipping vessels has led to the collapse of all but two rail freight companies – SCT Logistics and Pacific National.

And despite just two players left in this market, they too are teetering on the verge of collapse as Australia’s Coastal Trading Act enables foreign vessels to snatch an ever-increasing volume of domestic freight by exploiting foreign workers who are paid just $3 an hour.

Put simply, the Federal Governments’ ineptitude is killing Australian enterprises while supporting foreign companies.

For just $400, foreign-flagged vessels can obtain a Temporary Coastal Trading Licence to conduct up to five voyages within Australian waters over a 12 month period.

There is no reliable obligation to pay foreign crews Australian wages, and foreign ships are exempt from all national safe work practices placed upon homegrown businesses.

It’s one thing for the Australian public to take for granted the sovereign security that our rail and trucking industries provide, but indefensible for the Government.

Senator Pauline Hanson has questioned the sustainability and profitability of the proposed Inland Rail.

Scott Morrison was given an opportunity to meet face-to-face with SCT Logistics owner, Peter Smith in November 2020. Instead, the Prime Minister refused, leaving the country’s largest, Australian-owned, interstate rail freight carrier in the waiting room while I was left to argue the industry’s troubles.

The Prime Ministers’ excuse. “I don’t meet with lobbyists.”

No Prime Minister, not unless they’re at a Liberal Party fundraiser.

And for the record, Peter Smith is not a lobbyist. He’s one of Australia’s most knowledgable transport industry people.

Australia’s freight and logistics industry accounts for 8.6% of GDP. In simple terms around $150 billion and is set to increase by 35% between now and 2040.

The importance of interstate rail freight can be easily measured. For every freight train 108 B-Double trucks are removed from our highways. Without rail operators roads will become congested parking lots.

Let’s face it, when foreign coastal shipping companies pay just $3 an hour for wages, versus an average of $60 per hour for rail workers, there are going to be significant cost variants too enticing for companies like Carlton and United Breweries and supermarket chains who move large volumes of interstate freight.

Australia’s Coastal Trading Act has triggered a price dumping war, allowing unfairly gained market share for foreign ships that will likely reduce the duopoly down to a single interstate rail carrier, and place at risk the viability of Australia’s Inland Rail project.

You see, the sustainability and profitability of the 1700km Inland Rail project only exists if Australia’s interstate rail freight operators survive.

Unless the Prime Minister and his Government rectify the inequity between foreign coastal shipping vessels and our homegrown rail industry, Australia faces a risk to its supply chain sovereignty and creates the longest and most expensive rust line in the history of our nation.

Originally published as Opinion: Will Inland Rail become nation’s longest rust line?