Aurizon welcomes Federal Government rail funding package

Aurizon today welcomed the announcement overnight by the Federal Government of a further $1.75 billion to improve Australia’s freight rail network.

Managing Director and CEO Andrew Harding said the funding boost would make a real difference in improving the resilience and reliability of track infrastructure across the country.

“Aurizon, through the Freight on Rail Group, has advocated for additional funding to help improve the resilience of Australia’s national freight rail network and we appreciate the Government listening and acting on industry concerns,” Mr Harding said.

“A combination of increased extreme weather events and the long-term deterioration of track infrastructure have had an adverse impact on the rail industry in recent years, causing lengthy track outages and disruptions for our customers.

“This has resulted in more freight shifting from rail to road and this makes absolutely no sense given rail is more efficient, safer, reduces congestion on our roads and produces far less carbon emissions.

“This new investment of $1.75 billion, combined with a previously announced commitment of $1.04 billion, will support targeted investment in the Australian Rail Track Corporation (ARTC) network, which traverses much of the nation, east to west and north to south.

“The Government has indicated the money will be spent on initiatives such as resilience upgrades in high-risk flood-prone areas of the network as well as on track renewal works, passing loop extensions and improved signalling.”

Mr Harding also said the Federal Government decision to pause work on the Inland Rail was a prudent and fiscally responsible decision.

“Prioritising improving the existing network makes sense and will deliver more immediate benefits to the national economy. Of course, we would like to see Inland Rail completed at some stage, but while there still remains uncertainty around the cost and elements of the project, the focus for now on preserving the corridor north of Parkes is a sensible decision that will help facilitate construction in the future.”

As part of the funding package announced overnight, the Federal Government also announced a new $55 million program to incentivise more freight to move via rail.

“This is something we have been advocating for a long time and in the context of the current fuel crisis, it makes a lot of sense. Rail can use five times less fuel for the same freight task, so getting more freight on rail will help save fuel and help our nation better manage the impacts of any global fuel shortages.”

About Aurizon:

Aurizon (ASX: AZJ) is Australia’s largest rail freight operator and an ASX-listed company. Each year, the Company transports more than 250 million tonnes of Australian commodities, connecting miners, primary producers and industry with international and domestic markets. Aurizon is also part of the Freight on Rail Group (FORG) consisting of the nine major rail freight businesses in Australia.

For more information, please contact:

Aurizon Corporate Affairs: media@aurizon.com.au