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A major boost for freight on rail

Truck congestion to Fremantle Port will be reduced following the State Government’s increase to the freight on rail subsidy in the 2017-18 State Budget.

An allocation of $19.4 million over four years – equating to an additional $9.8 million – will enable the container rail subsidy to increase from $30 to $50 per Twenty-foot Equivalent Unit.

The higher subsidy provides a financial incentive to put more container movements on the port rail service, thereby reducing truck movements on roads leading to Fremantle.

It is envisaged the subsidy increase will assist in growing the rail mode share towards 20 per cent – an increase of about five per cent.

The rail strategy currently removes 70,000 to 100,000 one-way truck movements from metropolitan roads every year.

Increasing the rail share for container haulage is part of the State Government’s integrated plan for freight and trade in Western Australia, which also includes:

  • Planning for an Outer Harbour in the long term, and appropriate transition arrangements;
  • Facilitating further development of the rail supply chain, including intermodal facilities to minimise truck movements on Perth roads; and
  • Upgrading road links to ease congestion to Fremantle Port.

These initiatives will improve efficiencies at the Inner Harbour so it can accommodate trade growth until additional port facilities are viable.

Source: Government of Western Australia.