CSIRO Supply Chain Mapping - Pilot study

Collaborating with CSIRO: Inland Rail Supply Chain Mapping Pilot Study

The initial pilot study, conducted in 2018, modelled potential transport cost savings for regional supply chains along the Parkes to Narromine corridor, should producers use Inland Rail. the pilot found on average a $76 per tonne saving when shifting specific agricultural supply chains from road to Inland Rail.

The results from the Supply Chain Mapping Pilot were announced by the Deputy Prime Minister, Michael McCormack, on 21 March 2019.

Read the executive summary:

Read the full report:

Expanding the evidence base:

Commonwealth Scientific and Industrial Research Organisation (CSIRO) Chain Supply Mapping Study provided independent scientifically backed evidence on the significant cost savings should producers use Inland Rail.

The pilot tested the suitability of the CSIRO Transport Network Strategic Investment Tool (TraNSIT) to analyse existing regional freight supply chains and identify efficiencies from Inland Rail in the Parkes, Dubbo and Narromine regions.

TraNSIT was applied to model supply chain movements, costs and transport durations for horticulture and post-processed food that pass through the Parkes to Narromine study area.

TraNSIT has been used in previous research to test the benefits of road upgrades and calculate transport benefits for industry and various levels of government. TraNSIT provides an evidence base for industries to maximise transport cost savings. It uses a ground up approach that optimises transport routes between enterprises and their markets – a key consideration in Australia, which is characterised by long supply chains with large distances between production, processing and markets.

Key findings of the pilot study - Parkes to Narromine

Reduce 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.

Reduce 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.

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