The establishment of a Newcastle container terminal is among the top priorities for a new NSW Farmers Federation taskforce created to identify supply-chain bottlenecks which are costing the state billions in lost revenue each year.
The Modernising Rail Infrastructure Taskforce, which will meet for the first time this week, seeks to resolve avoidable freight delays and bring the state in line with world's best practice.
Taskforce chair and Moree grain grower Matthew Madden said there were some immediate opportunities to resolve issues that were costing farmers, and the NSW economy, significant amounts of money.
"The fact that we've got grain being driven by road into the biggest city in the country is a clear sign we've got some big issues with our rail-freight system," Mr Madden said in a statement issued today by NSW Farmers.
"For example, improving rail freight from northern grain growers to the Port of Newcastle would save farmers between $16 and $22 per tonne, or up to $2.8 billion over the next 30 years, allowing them to reinvest in their businesses and drive even more economic activity."
NSW farmers produce $17 billion worth of food and fibre every year, or about 25 per cent of total national production. Primary industries exports were valued at $6.6 billion in 2020-21.
The federation has warned that without significant improvement in rail access and operations at ports, growth opportunities would be wasted and economic growth missed.
Mr Madden said access to export markets was critical for farmers, but high port charges, poor rail quality and port bottlenecks were holding them back.
"Farmers want to get on with the business of farming without having to worry about these transport bottlenecks. Agricultural industries are an economic dynamo in NSW, but we're being outpaced by other countries and we need to get our supply chains up to scratch," he said.
"Given we're a key user of ports and railway lines, we need to play a key role in helping tackle the problem."
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