Labor plans to reverse privatisation of WA’s freight rail network, but won’t reveal how much it will pay

Labor is planning to reverse the “reckless” privatisation of WA’s freight rail network more than two decades ago, but is refusing to reveal how much it is willing to pay for it. It was sold for $586 million by the Court Government in 2000, but WA taxpayers are likely to be on the hook for much more under the audacious plan to be announced by Premier Roger Cook and Transport Minister Rita Saffioti on Thursday. 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, that has instead been forced onto the roads. “It was a reckless decision by the Liberal Government to privatise the freight rail in 2000, and the reality is the deal has not stood the test of time,” she said. “Rail is critical to a more efficient freight network and it also means less trucks on roads, which is something local communities are always calling for.” Ms Saffioti wouldn’t put a cap on how much Labor’s willing to pay, ahead of negotiations to abort Arc Infrastructure’s lease, which has 24 years left to run. “This is not an easy process, but necessary to support future job creation and the ongoing prosperity of our State,” Ms Saffioti said. A report by WA’s auditor general in 2013 found the lease arrangement “largely worked” but warned the buyer’s promise to invest $400 million was not incorporated in the lease and that certain lines in the Wheatbelt would likely be mothballed. They are part of WA’s “Tier 3” rail lines, all of which were closed in 2014. Farmers slammed the closures as “trucking hell” due to an extra 30,000 truck trips on country roads each year. Main Roads WA blamed the closure of rail lines for the “rapid deterioration” of Geraldton-Mt Magnet Road and lithium producers have said that no rail option in the South West has caused truck congestion and slowed mine expansion plans. A report commissioned by the Government in 2020 said it would cost $1.09 billion to repair, upgrade and reopen all 509km of the Tier 3 lines. But the Government has repeatedly refused to release the results of a recommissioning study that was completed in May 2023. In November, former Minister Bill Johnston told Parliament “we cannot get them back”. “Even though the private owner does not use those rail lines, we cannot use them ourselves. They get no income from them, but we cannot use them either. That is how bizarre and terrible that deal was,” he said. The West Australian can reveal the Cook Government has now written to Arc Infrastructure to commence purchase negotiations but said a final decision will be made only “if it is economically and financially responsible”. Under current arrangements the Government said it has “little capacity” to support industries that rely on rail but 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 demands on the State’s freight rail network have grown significantly and we want to make sure we’re moving as much by rail to and from our ports as possible,” Mr Cook said. “This is all about supporting our plans to diversify our economy, unlock future local jobs and retain WA’s economy as the strongest for future generations. “Supporting the growth of our critical industries is a key priority for our Government and bringing freight rail back into public hands is a key way we can do that.”