CSIRO Supply Chain Mapping - Pilot study

Results of a pilot study conducted in 2018 projected significant savings from the use of Inland Rail for horticulture and post-processed foods.

The pilot study looked at supply chains along the Parkes to Narromine corridor and found on average a $76 per tonne saving for producers when shifting specific agricultural supply chains from road to Inland Rail. These results were announced by the Deputy Prime Minister, Michael McCormack, on 21 March 2019.

Key findings of the pilot study - Parkes to Narromine

The pilot study found that there could be a reduction in supply chain costs:

  • an average transport cost saving of $76 (or a range of $64-$94) per tonne could be achieved for horticulture and post-processed food supply chains when shifting from road to Inland Rail.
  • for horticulture products currently transported by rail on the coastal line there is a potential average transport cost saving of $31 per tonne when shifting to Inland Rail.

The pilot study found that there could be a reduction in heavy vehicle congestion:

  • the analysis indicates a substantial benefit to the community in the study area through a reduction of up to 63,000 heavy vehicle trips per year along various segments of the Newell Highway.

The study area in numbers

  • 40% more post-processed food is destined for the study area’s market than leaves for domestic locations elsewhere
  • 71% of all freight movements associated with the study area, pass through the study area
  • roughly 923,000 tonnes of horticulture and post-processed agriculture are set to benefit from using Inland Rail
  • 80.5% of horticulture freight passes through the study area and is the largest contributor of traffic on the Newell Highway in the study area out of all the commodities analysed
  • 14.9% of total freight for the study area has an origin within the study area, with grains and fuels prominent.