Doubts cast on government's latest figures on grain 'road to rail' shift

The government has claimed grain volumes moved by rail increased by 95 per cent, between July and December last year - compared with the same time in 2022.

It also claimed volumes were up by 57pc between July 2023 and the end of last month, compared to the previous year.

"This has resulted in an extra 500,000 tonnes of grain transported across the state by rail - with one standard 3,000-tonne grain train carrying about $1.2 million worth of produce being the equivalent of removing 70 B-Double trucks from regional roads," a government spokesperson said.

"The government's investment in the regional freight network has allowed heavier trains to discharge at Geelong Port through increasing axle-load capability at key grain handling sites as well as through recommissioning the Gheringhap loop near Geelong."

Ports and Freight Minister Melissa Horne said the government's $181 million investment had made rail freight more efficient and attractive.

But last year, Ms Horne said a key scheme to encourage more freight to be carried on rail - the Mode Shift Incentive Scheme was "obsolete" and no longer fit-for purpose.

But rail sources said while Pacific National had moved more grain on the standard gauge network, after bringing surplus locomotives from NSW, "broad gauge haulage still very limited by lack of paths, rolling stock, and crew availability.

"Some sites have not seen a single train load this season," one source said.

While Woorinen and Piangil had handled "quite a few loadings" - and Elmore and Mitiamo had also been in use - there had been no grain taken out of Deniliquin, NSW, since late November last year.

Rail Futures Institute president John Hearsch said the larger harvest had boosted the amount of grain going on rail.

There was a record harvest of 11 million tonnes, in 2022-23, compared with 8.8m tonnes the previous financial year.

"Much more could have gone by rail on the standard gauge network if it was more efficient," he said

"Anything off the Mildura corridor involves such a circuitous slow journey as to involve extended train cycle times plus slow speeds on many sections (including the upgraded Ararat-Maryborough line) require an extra loco and greater fuel use.

"Train drivers can't use the natural momentum, which is an inherent advantage of rail on our typical rolling topography. "

The Maroona-Portland line, which would otherwise receive a lot of Wimmera grain was limited to 40 kilometres and hour - half the normal allowable speed for such trains, he said.

"50 wagon Portland-bound trains were always hauled with two locos - they now need three and take 50 per cent longer for the round trip than they used to," he said.

When it came to broad gauge, only limited locomotive and wagon resources remained, with most ex-Victorian equipment now elsewhere.

And lobby group GrainGrowers said the $181 million investment in the rail freight network was a positive start but was a drop in the ocean compared to what is needed.

GrainGrowers Trade and Supply Chains Policy Manager Annabel Mactier said Victoria still had one of the lowest percentages of grain going to port, via rail, in the country.

"One of the key challenges facing rail freight, is that Australia has highly localised rail networks with significant variations between states, undermining the interoperability of the network," Ms Mactier said.

"Victoria still has two gauges, and this lack of interoperability significantly reduces rail freight efficiency, creating extensive operational complexity, and increasing costs, which are ultimately borne by growers.

"Increasing the amount of grain freight on rail, where possible, presents a viable, existing way to substantially reduce carbon emissions but it would require substantial long-term investment from government to encourage greater mode shift."

Minyip grain grower Ryan Milgate said export volumes were up significantly - "what we are still seeing, on the ground, is a significant number of trucks on the road".

"Yes, we've got more grain on rail, but we've still got similar amounts on the road," Mr Milgate said.

"I have been up and down the Sunraysia Highway and its chock-a-block full of trucks; they are pulling grain out of sites to port."

Trucking companies were also finding it hard to get drivers, he said.

"I think the road side of it is 'maxed out' and rail is picking up the slack," he said.

Ms Horne said V/Line had already delivered axle-load capability upgrades across Piangil, Woorinen, Tocumwal, Murchison East, Elmore, Mitiamo, Charlton, and Wycheproof, with more upgrades in the pipeline.

She said further confidence in the rail network was demonstrated by operator Southern Shorthaul Railroad's recent purchase of 22 new broad-gauge grain wagons - the first order for new broad-gauge grain wagons in 16 years.