Australia, a country known for its vast landscapes and long distances, used to rely heavily on railways for its freight transportation. However, over the years, trucking has taken over a significant share of the market, resulting in increased emissions and inefficiencies. To combat these challenges, Australia needs to invest in revitalizing its rail network and shifting some of the freight back to rail.
Historically, railways dominated freight transportation in Australia, except for short distances where sea transport was more common. But as trucking grew in popularity, rail’s share of non-bulk freight declined significantly. By the mid-70s, trains carried only 23% of domestic non-bulk freight, while trucks took 65.5%. Fast forward to 2021-22, and trains now account for only 16.7% of freight, while trucks claim nearly 80%. This trend is concerning because heavy trucks are substantial emitters of greenhouse gases.
To address this issue, improvements in the railway infrastructure on the east coast could make rail a more competitive and efficient option for transporting freight. Rail transport uses significantly less diesel fuel compared to trucks, reducing emissions. Currently, transportation accounts for 21% of Australia’s emissions, with trucking emissions expected to continue growing despite efforts to reduce overall emissions.
However, transitioning the freight industry back to rail won’t be an easy task. In recent decades, rail freight growth has mainly been in bulk shipments such as iron ore and coal exports. Non-bulk freight, which includes consumer goods, has predominantly shifted to road transport. From 1976-77 to 2021-22, road freight has seen massive growth, increasing from approximately 29 billion ton-kilometers to 163 billion ton-kilometers—a measure of the weight transported multiplied by the distance. In contrast, non-bulk freight carried by rail increased from about 10 to 34 billion ton-kilometers. This shift can be attributed to expanding highway networks, higher capacity vehicles, and substantial investments in road infrastructure.
While funding for road upgrades amounts to over A$30 billion annually, the Australian Rail Track Corporation, responsible for maintaining the interstate rail network, struggles with limited funding. In 2021-22, they had a mere $153 million to maintain the existing 7,500-kilometer network, excluding the Inland Rail project. Inland Rail, an ambitious project connecting Melbourne to Brisbane via Parkes, has the potential to cut Australia’s freight emissions by 0.75 million tons per year when completed in the 2030s.
The lack of investment in rail infrastructure makes it challenging for rail to compete with road transport. Rail freight operators face various obstacles, including pinch points, speed restrictions, weight limits, and sections susceptible to flooding. This inhibits the efficiency of rail transportation and limits opportunities for passing trains on networks shared with passenger services. Without significant improvements, road freight emissions are projected to increase from 37 to 42 million tons by 2030, while railway emissions remain steady at four million tons.
Recognizing the need to reduce freight emissions, the Australian government has initiated a review of the national freight and supply chain strategy. While efforts to lower trucking emissions are crucial, shifting some freight back to rail forms part of Victoria’s green freight strategy. This strategy includes the development of intermodal terminals that allow for seamless transfers of containers from long-distance trains to trucks for the final leg of the journey.
Moreover, improving rail freight energy efficiency is vital. Western Australia’s iron ore freight trains are already highly efficient, and the introduction of battery electric locomotives can further enhance efficiency. In contrast, interstate rail freight on the eastern seaboard is less efficient. Therefore, upgrading the existing Melbourne-Sydney-Brisbane rail corridor in conjunction with the Inland Rail project is necessary. By replacing outdated track sections with modern alternatives, Melbourne-Sydney freight transit time can be reduced by two hours, leading to at least a 10% decrease in energy consumption. Additionally, faster tilt trains could be introduced, potentially halving the travel time for the Sydney-Melbourne passenger route to 5.5 hours, thus increasing passenger convenience.
Addressing the challenges of revitalizing Australia’s rail freight industry requires significant policy reforms and investments on various fronts. Business as usual will only result in more trucks on the road, leading to increased emissions. By prioritizing rail infrastructure improvements, shifting some freight back to rail, and enhancing energy efficiency, Australia can cut emissions, improve efficiency, and create a more sustainable freight transportation system.
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