Federal Labor Supports WA’s Freight Rail Buyback Plan with $2.5M Study
If re-elected, the federal Labor government has pledged to assist the Western Australian government in its efforts to buy back the state’s 5,500-kilometre freight rail network, and is also open to the idea of the Commonwealth assuming control over certain segments.
The rail network, which links Perth to key agricultural and mining areas, was privatised in 2000. Since then, significant volumes of freight have shifted to road transport.
Before the upcoming state election, WA Labor began negotiations with ARC Infrastructure — the current leaseholder — with the aim of returning the network to public ownership.
Speaking in Perth, Prime Minister Anthony Albanese announced that a re-elected Labor government would provide $2.5 million for a feasibility study.
“WA’s farmers and economy can’t wait decades for action,” Mr Albanese said. “We’re willing to step in and take responsibility for some of the lines that were privatised, including the Eastern Goldfields Railway.”
He added that the system had been left to decline, despite increasing freight needs, resulting in costlier road transport and added congestion in Perth.
Labor also said the study would explore how WA’s freight network could be better integrated with the national system, potentially involving federal control of the line between Fremantle and Kalgoorlie.
Freight Demand at Record Highs
The WA government has highlighted surging demand on the network, particularly from bumper grain harvests and expanding mining operations. It argues that regaining control will support further investment, improve road safety, and streamline exports.
Premier Roger Cook said public ownership of the rail system is critical to boosting WA’s role as a key export hub.
“It ensures we can better transport grain, minerals, and other goods across the state,” Mr Cook said.
This commitment comes alongside WA’s multi-billion dollar Westport development, which will see the main container port shift from Fremantle to the Kwinana industrial zone. This plan includes major upgrades to freight transport infrastructure.
Next Steps and Economic Considerations
The WA government has formally notified ARC Infrastructure of its intent to negotiate a buyback. Any decision will depend on whether it’s financially and economically justified, and a staged transition may be considered.
Dr Elizabeth Jackson, a supply chain expert from Curtin University, said a new intermodal facility in Kalgoorlie would be crucial for enhancing freight logistics, even if it lacks immediate financial returns.
“Freight resilience is essential for WA’s economy, and that’s where government involvement becomes crucial,” she said.
She also noted that rising grain freight and the environmental benefits of rail make the case for reinvestment stronger than it was when the system was first leased out.
