Engineering, Freight Rail, Research & Development

Demand doesn’t justify Townsville freight project: Queensland

Port of Townsville. Photo: Chris Mackey

Queensland wants the Federal Government to redirect funding for the Townsville Eastern Access Rail Corridor to other local projects, after a business case found demand would not justify the cost to build the freight rail link.

Building Queensland – the state’s infrastructure body – released its business case for the TEARC project on April 19. The proposed 8.3-kilometre TEARC route will link Cluden, on the North Coast Line, directly to the existing Eastern Access Corridor near the Port of Townsville.

While the freight line was found to be strategically important to the future development of the Port of Townsville, the business case found demand doesn’t support the line’s construction at this time.

The state says it will protect the TEARC corridor for the future development of the line, but wants to make sure the Federal Government still spends the $250 million it has committed to the Townsville City Deal – for which TEARC was supposed to be a key component.

Queensland transport minister Mark Bailey said the state wants funding to support the growth of the Port of Townsville, including funding for a channel widening project.

“The Turnbull Government said it would fund the Port of Townsville’s expansion through the NAIF, but that’s an insult to the people of Townsville,” Bailey said.

“With just one project having received NAIF funding in the country so far over three years and Senator Canavan recently admitting it has been an abject failure, we call on the Turnbull Government to put the money it has aside for TEARC directly into the Port where the most value lies for jobs in Townsville.”

Federal transport and infrastructure minister Michael McCormack said it was disappointing the state’s business case did not justify building the line at the moment, saying the Federal Government would “thoroughly review” the document.

“We want to leave no stone unturned in determining if the TEARC project can be viable,” McCormack said.

“Our commitment is to invest more than $250 million in Townsville under the Townsville City Deal, and we stand by that commitment.”

Bailey said it was important the preferred alignment for the TEARC was preserved to ensure the corridor was available when required. He urged the Turnbull Government to contribute funding to support that happening.

“This will include acquiring land and gazetting the corridor, as well as preparing an Environmental Impact Assessment for the project,” he said.

“We also urge the Federal Government to join with us in committing funding to construction of intermodal rail facilities at the port of Townsville which would provide an immediate option for modal shift of product transported in half-height containers from road to rail.”

1 Comment

  1. *scoffs* Oh is that so? Compared with that useless road bypass that was built solely to the benefit of the death dealing, obscenely over subsidised road transport industry?