Hon Rita Saffioti BBus MLA

Hon Rita Saffioti BBus MLA

Minister for Transport; Planning

    Subsidy increased to increase freight on rail

    21/12/2017 12:00 PM
     
    • 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 

    The 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.

     

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

     

    The 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 per cent has been set - an increase of about five per cent.

     

    The 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. 

     

    The 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.

     

    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; and
    • Upgrading road infrastructure linkages to ease congestion to and around the Inner Harbour.  

    Comments attributed to Transport Minister Rita Saffioti:

     

    "The 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.

     

    "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.

     

    "It's pleasing to see the integrated plan for freight and trade in WA coming together, which will help drive economic growth and jobs for years to come."

     

    Comments attributed to Bicton MLA Lisa O'Malley:

     

    "Providing incentives for more freight to be carried on rail means less truck movements on local roads.

     

    "This election commitment, along with other initiatives such as the Westport Taskforce and intermodal planning, highlight the McGowan Government's long-term sustainable solution for freight."

     

    Minister's office - 6552 5500