Subsidy For Freight On Rail Increases

Subsidy For Freight On Rail Increases

Western Australia Minister for Transport Rita Saffioti

Subsidy Increased For Freight On Rail

Victor P Taffa

  • Container rail subsidy to increase from $30 to $50 from January 1, 2018
  • Incentive to increase freight on rail and reduce congestion to Fremantle Port
  • Part of McGowan Government’s election commitment and alternative to the flawed Perth Freight Link plan
  • Westport Taskforce now planning for the long-term Outer Harbour solution

McGowan Government’s financial incentives to reduce truck congestion and get more freight on rail to Fremantle Port will be in place from January 1 next year.

“Rail service plays a significant role in achieving greater efficiency in the container supply chain as well as improving community amenity and environmental benefits along metropolitan roads that link to Fremantle Port.” Minister for Transport Rita Saffioti said.

 

“That is why the McGowan Government has delivered on its election commitment to increase the container rail subsidy to encourage more container movements on the port rail service.”

As committed prior to the last election, the container rail subsidy will increase from $30 to $50 per Twenty-foot Equivalent Unit.

Container rail subsidy plan will encourage more freight on rail and reduce truck traffic on roads around Fremantle Port, as part of the State Government’s integrated plan for freight and trade in Western Australia.

A target to boost rail mode share to 20 % has been set an increase of about 5 %.

Subsidy will be paid for all loaded containers that move between North Quay Rail Terminal (NQRT), Forrestfield and Kwinana, as well as for containers filled with hay that are received by rail at NQRT for export.

Subsidy per container will continue to be passed on in full to rail customers.

Increasing the rail share for container haulage is one of several initiatives to improve efficiencies at the Inner Harbour to facilitate trade growth until additional port facilities are viable.

“Providing incentives for more freight to be carried on rail means less truck movements on local roads.” Bicton MLA Lisa O’Malley said.

Others include:

  • Facilitating the development of the Westport: Port and Environs Strategy which involves long-term planning for the Inner and Outer Harbours;
  • Enabling development of the broader rail supply chain, including intermodal facilities to enhance rail system efficiencies and minimise truck movements on Perth roads;
  • Upgrading road infrastructure linkages to ease congestion to and around the Inner Harbour.