THE Murray Basin Rail Project will require a “considerable” injection of new funds if intended benefits are to be realised, according to a report on freight rail projects released on Wednesday.
The Victorian Auditor-General’s Office (VAGO) report said the stalled project meant freight from north-west Victoria was taking up to five hours longer to get to port than the previous broad gauge route.
VAGO found the regional rail upgrades reviewed were not yet improving rural freight outcomes in a timely and cost-efficient way.
It said the $440 million Murray Basin Rail Project (MBRP) and the Freight-Passenger Rail Separation Project (FPRSP) had not met scope, time, cost or quality expectations.
The report said about half of the approved MBRP scope had been delivered using almost 87 per cent of the originally approved budget.
It said the unfinished status of the MBRP has made the situation worse for standard gauge rail freight on the Yelta to Mildura line when compared to the previous broad gauge track.
The report found the new standard gauge route from Maryborough to Ararat added 128km to and from the Port of Melbourne and caused longer train transit and cycle times.
The Nationals leader and Shadow Minister for Regional Victoria and Decentralisation Peter Walsh said the VAGO’s findings confirmed the worst for producers and stakeholders in north-west Victoria – that the Victorian Government had no plan and no money to get the basin rail project back on track.
Mr Walsh said the buck stopped with Transport Infrastructure Minister Jacinta Allan.
“Excuses won’t fix the minister’s mess,” he said.
“If Jacinta Allan won’t take responsibility and get on with providing a revised business case to the Commonwealth, she must immediately hand over responsibility to a minister who will,” he said.
Victorian Farmers Federation president David Jochinke said he was concerned that the project has been on hold since mid-2018.
“We want it finished – it will get freight off road, reduce road damage and improve road safety as well as getting agricultural exports to port quicker and cheaper,” he said.
“This is a nation-building project – at a time when our economy is in crisis, it is projects like this that are essential to our future prosperity.
“Regional Victoria just wants its fair share – this project is a no-brainer.”
