VIC government probe into standard guage

[Michael Walker <wk@cgsc.vic.edu.au>]

http://www.theage.com.au/bus/20000710/A61828-2000Jul9.html

The Victorian government is apparently looking at the cost of
converting the broad gauge into standard.

Government probe into standard gauge



                 By PHILIP HOPKINS
                 Monday 10 July 2000

The Victorian Government has ordered a study into the conversion of the
state's freight rail lines from broad to standard gauge.

At stake is the potential for millions of dollars of
economic development if standardisation goes ahead.

The Department of Infrastructure is in charge of the study, which began
last month and is being conducted by the engineering consultants
Connell Wagner.

It will review work done to date on the issue, undertake an economic
evaluation of the standardisation of various sectors of the rail
network, recommend a preferred staging process for the gauge
conversion, and investigate how Victoria's network integrates into the
national rail network. An important part of the study will be to
recommend the extent of rail lines to be standardised. It will also
include lines on which both freight and passenger trains operate, but
not the metropolitan rail system.

The study is expected to be completed in September, when it will be
presented. The State Government has promised to allocate $40 million
towards standardisation, and is seeking a similar financial commitment
from the Commonwealth.

At present Victoria is divided between rail lines that use the national
standard gauge (1.42 metres) and the historic broad gauge (1.6 metres),
a legacy of the 19th century. The state has 2320 kilometres of broad
gauge track.

Past studies have varied in their estimates of the cost of
standardisation. A report by John Holland Engineering for the
South-West Municipalities Group said that standardisation would cost
$87.17million. This did not include conversion of the broad gauge lines
to Warrnambool and Gippsland, or the metropolitan system.

An earlier report by DJA Maunsell for the Department of Infrastructure
estimated that most of the country network could be standardised for
$180million, and produce annual benefits to the state of $23million to
$40million.

Municipalities in Victoria's south-west have led the standardisation
campaign. They maintain the mixture of broad and standard gauge lines
inhibits the movement of freight across the state, limits access to the
ports of Portland and Geelong, and adds to the cost of products
competing on world markets.

It also is an impediment to trade between the states, and limits port
access for products shipped from southern NSW and South Australia, and
in Portland's case, from north-west Victoria.

Potential trade for the ports includes grain, timber, mineral sands and
the emerging food products of the Murray irrigation area.

At present the standard gauge enters Victoria at Albury, goes to
Melbourne, then on to and through Geelong before swinging north to
Ararat and continuing to Adelaide through Horsham. The Port of Portland
is connected to the standard gauge line by an arm to Ararat.

The national standard gauge, however, does not connect to the Port of
Geelong, which is serviced by broad gauge. Thus, Geelong is cut off
from most of the potential markets of southern NSW, which use standard
gauge.

Under the previous state government's privatisation policy, the main
responsibility for upgrading the rail track now lies with Freight
Australia, the private owner of the former VLine Freight.

The rail track still formally belongs to VicTrack, but this government
body effectively acts as a landlord. The arrangement does not preclude
the government from agreeing to supply Freight Australia with funding.

Freight Australia's chief executive, Marinus van Onselen, has said he
favors standardising the state's broad-gauge lines in a sweep from east
to west.

--
Michael Walker
Email: wk@cgsc.vic.edu.au
ICQ: 78913383


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