Government Commitment To Grain Freight Rail Network

Government Commitment To Grain Freight Rail Network

Western Australia Minister for Transport Simon O’Brien

Transport Minister Welcomes CBH Investment Commitment

Victor P Taffa

Transport Minister Simon O’Brien said today that CBH’s decision to invest up to $175 Million in new Rail Rolling Stock would help deliver further good Transport outcomes on the State’s Grain Freight Network.

“CBH’s Decision brings to more than a half a Billion Dollars the total recent investment in the Grain Freight Network by Government and Private Sector.” Mr. O’Brien said.

“Last month, the State Government committed an additional $178.8 Million towards the network which secured the Federal Government’s contribution of $135 Million.”

“There is no doubt the Government’s investment in the Grain Freight Network was the catalyst for today’s announcement and the commitment by CBH.”


The Government’s Funding Pack will enable:

  • Rail Re-sleepering Works and Rail Siding Upgrades to continue on the Tier 1 and 2 Rail Lines ($187.9 Million);
  • Improvements to Wheatbelt Roads ($118.3 Million);
  • Continuation of a Transition Package to ensure Rail Transport remain competitive with Road ($14.6 Million);
  • A Rail Study ($500,000).

The Minister said that significant to the announcement was a new Partnership between CBH and the United States Transport Group Watco Companies.

The two have entered a 10-year Agreement, commencing in 2012, that would see Watco operate and maintain the new Rolling Stock as well as provide a comprehensive Rail Logistics Planning Service.

Watco has nearly 30 years experience in the Grain Industries in Kansas and Oklahoma and the deal with CBH is its first in Australia.

“The CBH-Watco Partnership will contribute greatly to the Government’s objective of securing a cost effective Transport chain that is safe, environmentally friendly and energy saving.” Mr. O’Brien said.