Inland Rail to Brisbane will no longer proceed as planned. An independent assessment found the project’s estimated cost now exceeds $45 billion. This is reported by the railway transport news portal Railway Supply.

$45B Blowout Halts Australia’s Biggest Rail Megaproject Today
Photo: Inland Rail. $45B Blowout Halts Australia’s Biggest Rail Megaproject Today

According to the Federal Government’s media release, ACIL Allen also addressed the project timeline. The economic advisory firm said the project could not be completed until at least 2036.

The government announced the decision today. The new freight corridor will now end at Parkes in New South Wales. Construction is due to be completed by the end of 2027. The work runs between Beveridge in Victoria and Parkes. It is supported by $1.75 billion in previously announced “off-budget” funding.

That keeps the immediate construction focus on Beveridge to Parkes. The section will allow double-stacked freight trains to operate between Melbourne and Perth through Parkes.

Inland Rail cost estimate reshapes the route

Inland Rail was planned as a 1600-kilometre corridor. It was intended to be Australia’s largest rail project in a century. It was designed for high-capacity Melbourne-Brisbane freight services in less than 24 hours.

A 2023 independent review led by Dr Kerry Schott found a cost increase for the full project. The estimate rose from $16.4 billion in 2020 to at least $31.4 billion in 2022. The review also found little certainty around the actual cost of delivery. That was mainly because of delays and insufficient clarity over the project’s scope.

Dr Schott recommended appointing an independent value engineer to further assess the cost estimate.

For works north of Parkes, the government said Inland Rail will now focus on “preservation of the rail corridor”. It also said sites for future Inland Rail intermodal terminals in Queensland will be protected.

At the same time, the government said it will prioritise investments in ARTC’s existing rail freight network. ARTC is the Australian Rail Track Corporation. Those investments are to deliver “resilience, reliability and productivity”.

Government and industry response

Catherine King is the Federal Minister for Infrastructure, Transport, Regional Development and Local Government.

She said: “The 2023 independent review found major deficiencies in the governance and delivery of Inland Rail.

“We are taking sensible decisions to realign the future of Inland Rail and build a safe, efficient and reliable network for the future.”

ARA response

Separately, the Australasian Railway Association (ARA) reaffirmed its support for Inland Rail.

ARA Chief Executive Officer Caroline Wilkie said the route must stay in focus. She called completion essential.

“When completed, Inland Rail will deliver a faster, more reliable and higher-capacity rail corridor between Melbourne and Brisbane, improving efficiency for freight operators and reducing pressure on congested road networks,” she said. “This is needed to meet future rail freight requirements in this century.”

Wilkie recognised the impact of the project’s cost escalation. Still, she said completing the full route must remain on the agenda.

“We welcome the continued preservation of the rail corridor and intermodal sites to ensure we can get this project back on track in the future,” she said.

“Inland Rail remains an essential project for Australia’s freight network and the industry is committed to completing its delivery to Parkes.”

In addition, the ARA will now engage with the government to identify further investment needs on the ARTC east coast network. This is to address the impact of Inland Rail not being completed to Brisbane.

“We need to ensure that the ARTC network is resilient and fit for purpose, to meet the needs of the rail freight sector over the coming decade.

“We hope to see government revisit the remaining sections of Inland Rail in the future to realise its vision to unlock economic opportunity along the full Melbourne-Brisbane route.”

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