Grain handling business Viterra has joined Australia's largest rail freight operator Aurizon to push for the return of rail freight on the Eyre Peninsula, four years since its closure.
Aurizon and Viterra submitted a formal application for federal government funding of $220 million to upgrade and reopen the rail network between Port Lincoln and Cummins, as well as the lines to Wudinna and Kimba, in time for next year's harvest.
Viterra made the decision to no longer use rail to transport grain on the Eye Peninsula in 2019 due to the condition of the line and the restrictions it placed on operations.
The proposal included upgrading the currently closed narrow gauge line to a level where rail can operate at increased axle weights, improved travel speeds, and more reliability in the warmer summer months.
Looking into the future
General manager of operations for Aurizon, Matt Jones, said while some parts of the rail line were in acceptable shape, other parts had been completely washed away from flooding in recent years.
"There's a huge variety in terms of condition, and there is an extensive amount of work required, but the proposal we've put forward is very much looking to the future," he said.
Mr Jones said there would be the potential for further upgrades to the infrastructure in the future if additional commodities were transported on the network.
"We'd love to see any other freight on the railway line that would clearly improve the business case, so we're very supportive, but we have just based this proposal on the current grain opportunity," he said.
Viterra Australia chief operations officer James Murray said there would be major benefits for growers once the railway network returned.
"There will be higher prices for growers because you're pushing more grain out in the front end of the shipping program before the Northern Hemisphere crops come on," Mr Murray said.
"That's when there's a pricing premium in the market for grain.
"You then combine that with the reduction in freight rates and supply chain fees, then that will certainly be passed back to growers."
Proposal 'wishful thinking'
Federal Member for Grey, Rowan Ramsey, said while he would love to see more freight off the roads, there would need to be a substantial business case for the rebuild of the rail line to be successful.
"I think it's a bit of wishful thinking on their behalf," he said.
"The suggestion here is that the taxpayer stump up $220 million for one of the wealthiest companies in the world [Viterra] to build an asset only they would use.
"Considering they were the last customer of that railway and pulled their trade maybe four years ago, and now they want to rebuild it with taxpayers funds for only them to use because Viterra is the only customer on that line."
Community group March for Eyre began as an initiative by Eyre Peninsula locals to lobby for the revival of the region's rail network.
One of the founders of the group, Marie Shaw, said claims that private operator Viterra was using taxpayers money after they "pulled their trade" four years ago was incorrect.
"What Viterra and Aurizon have done is [say they] will together work to reopen the rail — which is actually a state government responsibility, ultimately — by [applying to] the federal government for the kind of input that the other states are getting towards regional rail," she said.
"Viterra does not have any commercial arrangement with that rail, or any responsibility at all."
'Ghost towns' without rail
Ms Shaw said losing the railway had contributed to the closing of the supermarket in Lock, as well as families moving away from the town.
"It was almost like a ghost town, and the town was gathering all the thinking and resources they could to try and essentially save their community," she said.
"I realised that the people from Lock were actually having to get their groceries from Cummins and was staggered to think that the rail was allowed to close."
She said the reinstatement of rail would not only stimulate local businesses across the region but would also improve safety on Eyre Peninsula's roads.
"What surprises me is that a local member would argue against an input of funding for infrastructure in his electorate," Ms Shaw said.
"Transport and saving people's lives is a need. Proper transport and freight transport is necessary for the economy to go forward."
