CBH Group hits out at ‘lack of investment’ in WA rail network, backs State Government’s bid to buy it back

The boss of farming co-operative CBH Group has hit out at Arc Infrastructure over its sub-par investment in the State’s rail freight network, saying WA grain growers could be better served with a government-run system. CBH chief executive Ben Macnamara told Countryman its nearly 4000 grower members — who recently delivered an $10 billion harvest — had endured years of “challenges” at the hands of the Canadian-owned Brookfield Infrastructure’s Australian rail business. WA Transport Minister Rita Saffioti last week announced a bid to buy back WA’s regional rail network from private operator ARC Infrastructure, saying she had commenced negotiations to reverse the “reckless” decision to sell it off more than two decades ago. Mr Macnamara said CBH welcomed the news, with the hope a buyback would help to address “structural issues” that would continue to limit the amount of grain tonnages that could be transported on rail, leading to more trucks on the road. He said in recent years, the farmer-owned co-operative had transported about 10 million tonnes of grain per year across the rail network it used between Geraldton and Esperance and expected this figure to increase. WA’s most recent harvest of more than 10 million tonnes is estimated to have pumped about $10 billion into the economy. “CBH has long experienced challenges with the freight rail network that have adversely impacted rail users, in particular WA grain growers,” Mr Macnamara said. “The lack of investment in the network by the below rail operator over many years has negatively impacted the efficiency of rail transport across regional WA. “Our goal is to find the most efficient path to port for WA grain, and this is a balance of transporting tonnes via both rail and road.” About 2500km of the State’s rail network is used to cart grain, along with other products. “CBH is a key user of the network with it becoming increasingly important to the efficiency of WA growers,” Mr Macnamara said. “Our goal is to find the most efficient path to port for WA grain, and this is a balance of transporting tonnes via both rail and road. “CBH . . . supports any opportunity to improve strategic alignment between the owner of the network and its users, sustainable investment in the network to provide fit-for-purpose infrastructure, and fair and transparent access pricing.” The rail network was sold for $586 million by the Court Government in 2000, but the Nationals and the Liberal Party believe taxpayers would be on the hook more than $5 billion for the plan. More than 500km of Tier 3 lines have been left in care and maintenance since 2014. Ms Saffioti said the 49-year lease had resulted in a run-down rail network that had failed to keep up with growing demand to transport record volumes of grain and minerals, which has instead been forced onto the roads. She said the Cook Government had written to Arc Infrastructure to commence purchase negotiations but stopped short of saying how much Labor was willing to pay to take over the lease, which has 24 years left to run. She said a final decision would only be made only “if it is economically and financially responsible”. Ms Saffioti said current arrangements meant the State Government said had “little capacity” to support industries that rely on rail. The State Government announced $40 million for the grain on rail network in 2022, marking its biggest contribution to grain-on-rail since 2011, despite having spent billions on Metronet since the project was launched in 2017. She vowed that public control would result in upgrading tracks and improved frequency and journey times for regional passenger rail services, as well as industry. The news drew a mixed response from industry and other sides of politics, with the WA Nationals labelling it “disingenuous” and “unrealistic”. Nationals leader Shane Love said agreed change was needed, but blamed the Government for inaction and called the proposed buy-back a knee-jerk reaction. “A leopard doesn’t change its spots and WA Labor doesn’t care about regional WA except in the weeks leading up to the election,” Mr Love said. “Labor’s empty announcement offers no details on the cost to taxpayers, how it will be funded or how it will facilitate the long-term management of the network.” Liberal North Metropolitan Region MLC Tjorn Sibma also questioned the timing, two weeks before the writs are issued for a State election on March 8. “It is completely inappropriate for any Government to negotiate something this significant on the eve of an election. This flies in the face of all convention,” he said. The mining industry was also on board with the announcement, with Association of Mining and Exploration Companies acting CEO Neil van Drunen saying moving “product” on rail would “benefit both industry and the people of WA”. Labor also pledged $18 million towards extra rail sets, to increase the frequency of the Australind passenger train between Perth and Bunbury, and announced it will halve the cost of regional Trans WA fares - if re-elected.