[Vic]Industry welcomes rail boost

["James C." <james_ccj@optusnetdotcomdotau>]

http://www.theage.com.au/business/2001/05/21/FFX555YOXMC.html
Industry welcomes rail boost

By JOHN ROUW
Monday 21 May 2001

Rail and ports development got a boost in last week's state budget with the
government pledging $96 million towards the long-called-for standardisation
of the state rail network.

The government has allocated $96 million over five years towards the
expected $140 million cost of converting an extra 50 per cent of the
freight-rail network to standard gauge.

The allocation represents a more than doubling of previous budgeted
commitments to the project, which the government said would generate 700
jobs, mainly in rural areas.

Transport Minister Peter Batchelor repeated a call for financial support for
the initiative from the Federal Government, while budget papers stated that,
to be fully realised, the plan required Commonwealth and private sector
support.

The budget boost for standard gauge - the major grade in New South Wales and
the one used for the Perth-Melbourne-Sydney-Brisbane national rail
corridor - follows the completion of a feasibility study.

The government said the study found that increasing the proportion of
Victoria's rail network that is standard gauge from 29 per cent to around 70
per cent would deliver "significant net benefits by way of reduced freight
costs, increased efficiency, reduced road costs and greater inter-port
competition".

Victoria's existing standard gauge, or 1.435 metre-wide network, feeds into
the port of Portland in Victoria's south-west. Ms Broad said a key priority
under the government's Regional Freight Links program was the provision of a
standardised link between Mildura and Portland in partnership with the
private sector.

"This would secure the development of the mineral-sands industry in
Victoria's north-west by providing efficient freight links to the Port of
Portland," the government said, referring to an issue that has been under
discussion for a number of years.

According to budget papers, in 2001-02 the government plans to spend $10
million on the conversion from broad gauge - a legacy of decisions by 19th
century Victorian colonists which contributed to Australia getting three
incompatible rail gauges - drifting up to $26million in 2004-05.

The government has also budgeted $30 million over three years towards the
previously announced Wodonga rail bypass, with the government looking for
$20 million to be provided by the Commonwealth Government in tomorrow's
federal budget and $7 million from the private sector.

The project involves relocating the rail line from Wodonga's central
business district to a route parallel with the Hume Freeway.

Ms Broad was quoted as saying "it is anticipated that $10 million ... will
be recouped from land sales on existing rail reserves".

The government said it had also allocated $800,000 for automating sewerage
and waste water connections at Station Pier over the next year.The Victorian
Employers' Chamber of Commerce and Industry last week said that overall the
state budget was "welcomed on preliminary assessment as a fiscally
responsible blueprint", including the pursuit of surpluses over coming years
and the halving in debt levels by 2005.

Noting outlays on transport initiatives, VECCI acting chief executive Neil
Coulson said: "This infrastructure spending on important projects is very
much needed and is welcomed by VECCI. It will provide a welcome economic
boost at a time when the economy is slowing."

But Mr Coulson said: "There are a number of infrastructure projects which
need to be started in Victoria which are not mentioned in this budget - for
example, channel deepening at the Port of Melbourne."

VECCI will be looking for the State Government to deal with those as early
as practicable and maximise private sector investment.

Coalition shadow Treasurer Louise Asher said that while there were
significant announcements for capital works in the budget "it is highly
unlikely, given the indecision of the Bracks Government, that we will see
the completion of these projects, or at least of the larger ones, in this
term of government".