November 16, 2010

West Australia to invest US$179 million on grain network

The West Australian government says it will invest nearly US$180 million in the state's grain freight network to lower costs for farmers and improve safety on country roads.

The US$178.8 million state funding package would secure the federal government's commitment of US$135 million to the grain network announced in the 2010-11 federal budget, WA Premier Colin Barnett said.

With previously committed state funds, it will bring the total investment in West Australia's grain freight network to US$352 million over four years.

Mr Barnett said farmers would benefit from a better network and road users would be safer because there would be fewer heavy vehicles on narrow country roads.

"This massive upgrade to the grain freight network will improve the efficiency of grain transport, which will mean lower costs for farmers. From a community safety perspective, a robust rail freight network means fewer heavy vehicles on the predominately narrow country roads, making it safer for other vehicles including caravans and school buses," he said Monday (Nov 15).

Grain transported on the network includes wheat, barley and rapeseed destined for West Australia ports from where it is exported to countries including Indonesia, Japan, China, Iran and Saudi Arabia.

West Australia produces an average of more than 11 million tonnes of grain annually and about eight million tonnes is exported. This year's harvest is expected to be halved as a result of the ongoing dry conditions.

Transport Minister Simon O'Brien said the network last underwent an upgrade in the 1990s under the previous coalition government. The project to upgrade rail and road routes would ensure the majority of grain freight remained on rail, said Mr O'Brien.