Rail freight efficiency and competitiveness in Australia

In 1994/95, the Australian rail freight task was approximately 100 billion tonne kilometres (btkm). This freight task included some 37 btkm for the haulage of iron ore in Western Australia, 28 btkm for coal haulage in Queensland and New South Wales and about 16 btkm for interstate rail freight. This paper mainly concerns how improvements can be made to the efficiency and competitiveness of interstate rail freight services through the upgrading of sections of mainline track that currently have severe speed - weight restrictions. Recent improvements in rail freight efficiency are discussed, with emphasis on two indicators: average unit revenues (cents per net tonne km), and average energy efficiency (net tonne km per MJ). Rail freight efficiency is high for the Western Australia iron-ore operations, Queensland coal operations and Adelaide-Perth general freight operations. However, between Australia's three largest cities of Melbourne, Sydney and Brisbane, some 36% of the mainline track fails to meet basic fast freight train standards with a ruling grade of 1 in 66 and no curve radius less than 800 m. The contraints on efficient rail freight operations imposed by severe terrain, and how the effects of terrain may be reduced by improved track alignment, are discussed. Some economically warranted rail track investment measures are outlined, including those identified for a National Transport Planning Taskforce. These measures have the potential to reduce liquid fuel use by over 250 million litres a year. Factors affecting competitive neutrality between road and rail freight that are outside of the present scope of Australia's National Competition Policy are broadly considered. These factors include the extensive upgrading of the National Highway System with full Federal funding, and low levels of road cost recovery from heavy trucks operating over long distances.