Transport costs are a significant expense for Australian businesses and can be a deciding factor for both market growth and the sustainability of supply chains.
Inland Rail is a boost for Australian producers and manufacturers, travelling between Melbourne and Brisbane in under 24 hours, delivering goods with 98% reliability and providing a cost-competitive alternative to long-haul road transport.
‘Freight’s… a big portion of our costs…if we can send our product out for as little as we can, and as quickly as we can, that sounds great.’
Jill Allwright, Good Morning Cereals
Efficiencies with Inland Rail
Inland Rail will improve transport efficiencies by:
- carrying more goods on longer and double-stacked trains
- taking 10 hours off the travel time from Melbourne to Brisbane via the east coast rail link
- increasing the reliability of arrival and transit times through a purpose-built line
- reducing costly delays caused by congestion such as traffic, accidents or roadworks
- reducing fuel costs by using as little as one third of the fuel it would take to move the same load via our highways.
Better for business
With efficiencies comes significant potential for transport cost savings.
The 2015 Inland Rail Business Case for the project found rail costs for intercapital freight between Melbourne and Brisbane could drop by $10 a tonne when shifted from the existing coastal route to Inland Rail.
Supply chain mapping by the Commonwealth Scientific and Industrial research Organisation (CSIRO) suggests some industries could save significantly more by switching from road to Inland Rail with a pilot study showing average savings of $76 a tonne for horticulture and post-processed foods.
A team at the CSIRO are now working to test the same potential for more than 100 commodities across the Inland Rail alignment.
What’s clear is that businesses can use Inland Rail to move more goods, reduce their transport costs and increase or expand their access to markets.
‘The cost saving we forecast to get out of the Inland Rail will mean that additional export markets can certainly come on board.’
Scott Whiteman, Chief Executive Officer, Riverina Oils and Bio Energy
Better for the country
More efficient movement of freight leads to transport savings and a boost for the country.
The National Freight and Supply Chain Strategy has identified a 1% improvement in the efficiency of our freight sector can generate $2 billion in gains for the national economy each year.
‘…anything that drives efficiency to meet the demands of marketing windows around the world for agricultural and mining produce is only going to enhance the wealth of the country.’
John Dornbusch, Chairman Interlink SQ