Re: [Vic]text from Age was: Portland wants BG

[Andrei Souprounovich <andrei@axs.com.au>]

Broad-gauge bid for Portland
By PHILIP HOSKINS
2000-09-24 21:56:47

Standardising Victoria's rail system will ensure that the potential mineral
sands boom is not lost to South Australia and that the ports of Portland and
Geelong can compete equally, according to a new report.

The study, prepared by Glenelg Shire Council, argues that the Port of
Portland's isolation from the state's broad-gauge system not only
disadvantages Portland but damages Victoria's economic performance and
potential.

The report, Standardisation of Rail Gauge, the Portland Perspective, said
that effectively, Victoria had two distinct rail networks operating - broad
gauge and standard gauge.

The standard-gauge network covered a relatively small part of western
Victoria, thus restricting Portland's catchment area and isolating the port
from the broad-gauge network that covered most of Victoria and southern New
South Wales.

"This works to Portland's disadvantage, despite it having the deepest port
to accommodate the largest of bulk carriers and is the closest port to the
major shipping channels," the study said.

The report said the present rail-gauge system had created two serious
implications for national competition policy. First, the mix of rail gauges
was a barrier to effective competition between the ports of Portland and
Geelong.

Second, if Geelong were to get access to the standard-gauge network Portland
should get access to the broad-gauge network at the same time to avoid
unfair competition.

The report said the State Government's Linking Victoria policy, which would
provide $4.5 million to give the Port of Geelong access to the
standard-gauge network, would tilt the competitive playing field towards
Geelong. This would give Geelong access to Portland's market on the
standard-gauge system as well as to its existing market on the broad-gauge
system.

The report said the absence of a rail connection between the Murray Basin
and the Port of Portland "was a major constraint to Victoria securing the
transport and second-stage processing of mineral sands located in the Murray
Basin area". There are more than 15 mineral-sands deposits known to exist in
the Murray Basin. The coarse-grained resource has an estimated in-ground
value of $13 billion, and the industry has a potential life span of 30 to 50
years.

The report said South Australia was actively promoting strategies to
transport mineral sands by rail to Port Adelaide or Port Pirie. "There is a
view among explorers/producers that Victoria is not similarly committed to
this business," it said.

The report praised the Bracks Government's $40 million commitment to
standardisation, and said the first priority should be to end Portland's
isolation from the broad-gauge system. It made a series of recommendations:

The whole rail-freight network should be standardised at a cost of $136
million as outlined in the Maunsell report. This option had the most
economic benefit for Victoria as a whole and should take place over an
18-month period.

The State Government should give a commitment to the emerging mineral-sands
industry for rail standardisation between Mildura and Portland. This
commitment was required by the industry now.

The timing of Geelong's access to the standard-gauge network should be
matched by Portland's access to the broad-gauge rail network. The State
Government would thus create a competitively neutral infrastructure policy.

The State Government should use its national competition policy dividend
from the Federal Government to help fund rail standardisation.

The report said that if the State Government could not commit enough money
for standardisation, Portland could be equally treated by:

- Minor rail works to the ports of Melbourne and Geelong to provide dual
gauging.

- Dual gauging from Ararat-to-Portland and conversion of
Maryborough-to-Ararat to broad gauge.

If these options were not implemented, the government's $40 million should
be used to standardise key broad-gauge lines.

This would start with the north-west (Mildura) and perhaps take in the
Kulwin, Robinvale, Piangil, Moulamein and Deniliquin lines, depending on the
costs and benefits.

The report also recommended that the State Government, Glenelg and the Port
of Portland take a leadership role in bringing together the key
stakeholders, including the Federal Government.

They should develop a business case for the north-south rail corridor
linking Mildura and Portland, a financial partnership if necessary, and an
action plan so that the needs of the industry were met on a timely basis.

This story was found at:
http://www.theage.com.au/bus/20000925/A15306-2000Sep24.html