Will making WA's freight network public be cost-effective?

Since Western Australia's freight rail network was privatized 26 years ago, the government has been working to purchase it back through a bill passed by the Cook Labor government. The 5,500-kilometer network connects key ports and mining/agricultural regions, but privatization in 2000 led to mounting debt. Arc Infrastructure currently operates the network, with Brookfield as the parent company.

Public ownership could lead to more targeted investments, regional job creation, and reduced trucks on regional roads. However, concerns about cost and bureaucracy remain. The cost of restoring the network is estimated to be in the billions, with an independent report from 2020 suggesting hundreds of millions of dollars is needed to bring the Tier 3 rail lines back into operation.

The government has not provided a clear estimate, but former Pastoralists and Graziers Association president Tony Seabrook warns the cost may be prohibitive. Industry stakeholders, including farmers and the grain handling giant CBH Group, have expressed support for public ownership. However, the Coalition and opposition party leaders have called for more transparency regarding the cost and potential impact.