Rail Projects Task Force
- Terms of Reference

(Task as announced by the Prime Minister in May 1998)

To evaluate how governments can better facilitate viable major rail investment proposals developed by the private sector.

Purpose of the task force

The rail network in Australia has developed as a series of separate State-based systems rather than as a national network. The routes, technologies and operating standards adopted have been selected to suit the particular transport tasks required within each State. Major differences and inconsistencies have developed between States that have impeded the efficiency of interstate rail services. Indeed interstate freight accounts for only about 5 per cent of the quantity of freight moved by rail.

Commonwealth and State Governments have undertaken a number of initiatives to facilitate the development of interstate rail services. These include the standardisation of the rail gauge linking all mainland State capitals and the development of rail access arrangements to allow the entry of new operators. These initiatives have facilitated the entry of several new private sector rail operators who have invested in providing rail services on the existing rail network.

Complementing these developments, a number of major rail proposals to develop new interstate focussed rail networks have emerged. These include a Darwin to Adelaide rail link, an inland rail bridge from Melbourne to Darwin, and a very fast train to link Melbourne, Sydney and Brisbane. All these proposals are to involve substantial private sector investment.

The Prime Minister considers that such projects require a more coordinated response from governments as opposed to the State based approach that has dominated the existing interstate network. He therefore asked Bob Mansfield in his capacity as Major Projects Facilitator to convene a private sector task force to provide advice on the role for government in facilitating such proposals.

Specific tasks

The task group to examine proposals to develop major new interstate rail links and to advise on:

• The scope for private sector investment
• Unwarranted barriers to private sector investment and what governments could do to remove these barriers
• External benefits and costs associated with projects that are not appropriately taken into account by private sector investors and what governments could do to ensure this occurs
• Other issues relevant in assessing the role of government in such proposals.

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