Rail Freight Corridor - Gathering Speed

The Barkindji Corridor

The most ambitious project ever contemplated to be undertaken in North West Victoria and South West New South Wales has been unveiled.  The proposed $300million  project would see the construction of a 220 kilometre standard gauge rail line from Menindee (NSW) to Mildura (Victoria).  This link will pass predominantly through the traditional lands of the Barkindji people, hence the naming of the project.

The planning has taken 3 years to put together under the direction of the Sunraysia Mallee Economic Development Board (SMEDB).  A preliminary analysis by respected engineering company GHD and funded by SMEDB indicated that in all respects the proposal could be carried out with a positive cost benefit both locally, state wide and federally.

In December 2005, Chairman of SMEDB, John Irwin, and Senior Rail Executives of GHD, Mr Bernard Shepherd and Mr Tom Pinzone, met in Canberra with the head of Austlink Mr Mike Mrdak and Senior Advisor to the Minister for Transport, Mr Mike Taylor.  As a consequence of this meeting, the Federal Department of Transport accepted and placed on the Australian Rail Map the ‘missing link’ – the rail connection from the Transcontinental to Mildura.  It was acknowledged that this link was only achievable if and when the Victorian Government could be persuaded to upgrade the line from Geelong to Mildura and convert the line from broad gauge to standard gauge. Recently the upgrade works have commenced.

During 2006, the NSW Premier’s Department, working in collaboration with SMEDB, designed the preferable route through Western NSW, avoiding National Parks.  This route would see the line heading north-east from Pooncarie to Sayers Lake.  Geographical surveys during 2007 indicated that the preferred junction with the Transcontinental should be at Menindee, east of the Darling River and above the flood plain.

The proposed route would bisect the rich mineral sands province and provide the quickest route for trains travelling Perth/Darwin to Melbourne.

Over the next 5 months, if all funds are in hand, an Australian engineering company will be commissioned by the Mildura Rural City Council.  This company will carry out a comprehensive and exhaustive cost benefit analysis of the Barkindji Corridor project which will include all costs plus a geological and geographic study.

This study, if as anticipated, shows a significant cost benefit to Australia, will be presented to the Federal Government as a major infrastructure project of National significance.

During the past 12 months, SMEDB has held meetings with former Federal Ministers Vaile and Truss and shortly before the Federal election with Shadow Minister Simon Crean.  All have given unequivocal support subject to the analysis and commitment to standardisation.

Chairman, Mr John Irwin stated that the Board of SMEDB had committed the funds and time to ensure that the project would reach the Federal Government as a comprehensive document which would bear scrutiny from all possible angles.

The greatest benefit to Mildura was the day the Chaffey brothers turned on irrigation pumps to bring life to a desert.

The second greatest benefit will be the day that Ballarat and Broken Hill are joined together by rail with Mildura as the apex.  This will bring about a massive transformation with Mildura being the hub of south-east Australia’s horticultural and agricultural produce from the Riverland, Sunraysia and the Goulburn Valley.

Logistically, 85% of all Australians will be reached within 24 hours by rail from Mildura with major international companies recognising the benefits of their distribution centres being established in the Mildura region.

The concept is built around the French model of connectivity. The French designed a rail model with 5 key cities including Toulouse and Bordeaux linked by an ultra-modern freight rail system.  Since completion, all cities saw an explosion of development.

The Australian model of connectivity will see Broken Hill, Parkes, Mildura, Portland and Ballarat joined to achieve the same results.

Mr Irwin, when pressed, stated that he was confident that the project would occur.  “We have brought together the right partners with the right project at the right time.

Our focus is to ensure that both Federal and State Governments clearly understand the benefit of this National Project”.

The Partners

The Barkindji Corridor is a rail project which has brought together some of Australia’s major companies and an alliance of rural city councils in 2 States, committed to working for the establishment of a north-south rail link from Menindee (NSW) to Mildura (Victoria).  Mining company Iluka Ltd and prominent newcomer BeMax Ltd have both placed their support and money on the table to ensure the projects success, as has the Fosters Group.

Upon completion of the Snapper Deposit near Pooncarie (NSW), Bemax Ltd will have a combined output with the Ginko mine of 1 million tonnes per annum.  Rail to Broken Hill is preferable and after further processing, rail as an option to Portland or Melbourne.  The extracted waste would be railed back to Pooncarie.  Iluka has substantial deposits in south-west NSW and north-west Victoria and a standard gauge line provides a means to use rail instead of road.  Iluka is establishing a major mine in the Eucla Basin (WA) and the new rail route opens up options to deliver by rail direct to its processing plant at Hamilton (Victoria). 

Several other local and interstate companies are also financially committed to the Barkindji Corridor Project.  A consortium of regional councils are likewise committed financially. Sunraysia Mallee Economic Development Board (SMEDB), the economic development arm of the Mildura Rural City Council is underwriting the required cost benefit analysis but the submission to government for part funding to carry out the cost benefit analysis will be a collaborative document prepared by the Ballarat and Mildura councils.

Wentworth Shire Council, Central Darling Shire, and Broken Hill Council in New South Wales will provide funds and a lobbying base whilst in Victoria, approximately seven councils in north-west and western Victoria have signalled their commitment and solid support.

Chairman of SMEDB, Mr John Irwin, stated that every Council which had a direct link to the proposed standard gauge link had pledged money and support, each council realising that the link north to Broken Hill and then to Perth, Darwin and Parkes opened up markets both globally and nationally.

“In a world which will increasingly demand rail before road to reduce carbon emissions, this connection will have a positive impact in Australia working towards meeting its Kyoto commitment”, added Mr Irwin.

The code name for the project ‘The Barkindji Corridor’ recognises the original indigenous landowners whose land the new proposed line will pass through.

Rail to Riches

Why would any government, State or Federal, commit to building a new rail line from Mildura to Menindee?  The answer itself is multi-faceted.

From a national perspective the answer lies in logistics and carbon emissions.  Freight from Darwin and Perth arrives at Dry Creek (SA) double stacked.  Future trains will be 2km in length.  The Adelaide Hills and tunnels dictate that each single train must be broken down to six trains heading to Victoria. The delays are of up to 32 hours.  The new link will dramatically reduce costs of fuel and labour but more particularly time.  Time is money and delays are lost money.

The Federal Government has stated that carbon emissions must be reduced and that the New Zealand Labour Government policy will be implemented.  What can go by rail – will go by rail.

The proposed link will allow transport companies within Victoria to place B-Doubles on the rail and rolled off at their destination.  This is common in the United States.  There is a massive amount of freight capable of being transported by rail.

From a defence perspective, the proposed line enables, in the case of national emergencies, a direct link to Darwin and removes the complete reliance on the sole link via Adelaide.  The frequency of accidents and derailments on the existing Adelaide to Melbourne line adds weight to the need for an alternative.

From the perspective of the States, the link would provide infrastructure for the mineral sands industry to freight materials by rail to Broken Hill (NSW) or Hamilton (Victoria).  Within 3 years, the major mines will have a minimum of 240 B-Double movements per day on the road.  The damage to roads and the risk of accidents is high.  Bemax Ltd & Iluka Ltd both see rail as the preferred option as the cost of freight is one sixth by rail.

Two new oil refineries are on the drawing board for Port Bonython (SA) with an annual output exceeding 1billion litres.  Sea freight or rail freight will be the only options allowed.  The new proposed link provides an immediate solution to this part of the oil industry.

Broken Hill is staging a major comeback in mining with Perilya Ltd and Broken Hill Cobalt Ltd being two of the many players.  A direct link to Melbourne and Portland opens up opportunities to the mines as well as providing a quick and direct supply route to that city.

Ballarat is proposing a new intermodal port at Mt Rowan which straddles the existing Ballarat/Mildura line.  It is an enticing prospect, the thought of being the major freight distribution centre for the majority of freight heading to or from Western Australia, the Northern Territory and yet this is precisely what is anticipated as a consequence of the new route.

For Mildura, the benefits are many and varied.  Mildura Council is committed to creating a new industrial complex at Thurla with an intermodal freight terminal.  The new route would bisect this centre and see the line re-routed thereby eliminating the existing line in the city.  This removal would see the closing of 22 rail crossings but allow Mildura’s greatest asset, the Murray River, to be accessed directly for the first time.  20 hectares of prime land will be available for development where the existing freight yards are situated.

Strangely, the single greatest impetus to create the north-south link has occurred in the past 8 weeks.  The decision by Pacific National to quit Victoria as a rail freight provider has left a void.  The Victorian Government has two choices – to lease rolling stock or buy rolling stock.  If the new corridor is opened up, all freight operators currently using standard gauge links in Australia will have the opportunity to add to the freight loads they carry.

In recent days, former federal Minister for Trade and Deputy Prime Minister Tim Fischer has added his voice to the debate encouraging the Victorian Government to urgently standardise the Geelong to Mildura line and upgrade it and has voiced his opinion that the link to the Transcontinental must be undertaken.

What has brought about the sudden change in attitude?

The Barkindji Corridor, the code name for the north-south link, has been gaining momentum for several years but its relevance and status has quickly risen.

1. The mineral sands industry will be a billion dollar a year industry within 3 years.

• Logistics demand rail.  Roads on sand cannot be contemplated and the damage to sealed roads will be massive requiring continual maintenance. 
• The freight costs are six times greater by road. 
• The proposed link bisects the minerals sands province and gives rise to the possibility of what Tim Fischer calls ‘balloon’ lines – spurs to the deposits.
• Bemax requires the rail link to Broken Hill and Iluka to its processing plant at Hamilton (Victoria).

2.  Carbon emissions and greenhouse gases

It is acknowledged that road freight will explode over the next 15 years with a consequent increase in emissions let alone the clogging of ports and roads.  Rail is the alternative and the Federal Government is committed to ensuring that an efficient rail freight system is in place.  The new link will provide the fastest link between Melbourne, Perth and Darwin and eliminate the double handling in Adelaide.

3.  The exiting of Pacific National from the Victorian rail service

Short term solutions must be found but the medium term solution has to be a standard gauge system linked to the Transcontinental whereby all freight operators can assess the potential revenue returns by servicing this route.

4.  The Fischer report (2007)

Commissioned by the Victorian State Government, recommended that the Geelong – Mildura line have platinum status – to be upgraded and capable of conversion to standard gauge.  This is a major breakthrough.  The report also recommended the investigation as to what freight outside the State border could be utilised. Up until now, the ‘Fortress Victoria’ mentality had prevailed since the 1880’s with no vision as to how Victoria could maximise its opportunities by linking the State by rail in the north-west.  Thankfully, there now seems to be an end to this era, or perhaps there is a new light at the end of the tunnel.

John Irwin

Chairman

Sunraysia Mallee Economic Development Board