Most big movers welcome road, rail and sea plans
Freight may be one of the few sectors looking optimistic after Budget night, with road, rail and sea transport all given a hand.
The Federal Government says it will cut shipping costs, upgrade rail routes to ports and look further into the ‘inland railway’ from Brisbane to Melbourne.
All states and territories will see some benefits from their share in highway upgrades, to be funded by a $50 billion infrastructure package.
A $75 million fund has been put together for upgrades to the Port Botany rail line in Sydney and to cover planning costs for the $1.6 billion Perth Freight Link.
The Perth Freight Link aims to develop the Roe Highway for use as the main east-west freight route, to be partly funded by the Western Australian Government.
The Budget papers detail $50 million to be spent on new technology for improved train movements between Port Augusta and Whyalla in South Australia. There is also $119.6 million over five years for upgrades to Tasmania’s rail freight services.
But the Australasian Railway Association (ARA) says it has been left behind.
“This Budget has shown a drastic decrease in planned funding for rail transport over the next four years, with the Federal Government’s investment in rail decreasing by 42 per cent come 2015 and almost 70 per cent come 2018,” ARA CEO Bryan Nye said.
Visiting ships will save some money from a reduction of the Protection of the Sea levy, which was lifted by 3 cents per tonne to help with the costs of an oil spill from the Pacific Adventurer off south-east Queensland.
The Government wants to save $5 million over three years from by cancelling the Sustaining Australia maritime skills measure from the previous budget.
The Government will cease funding to the Tasmanian Wheat Freight Scheme (TWFS), which subsidises the cost of shipping bulk wheat to Tasmania.
Despite no claim having been received under the TWFS since August 2009, containerised shipments of wheat to Tasmania will remain eligible for assistance under the Tasmanian Freight Equalisation Scheme (TFES).
The government has undertaken a scoping study for a 24-hour freight link to the Port of Brisbane.
The much-touted federal road building program also features $6.7 billion for 45 new projects and 16 ongoing efforts aimed at fixing Queensland's Bruce Highway, one of the deadliest in the country.
There is another $5.64 billion to be put towards the Pacific Highway duplication in NSW, planned for completion by 2020.
Just under $1.3 billion has been put up for another Toowoomba bypass as well as $508 million for the Warrego Highway in Queensland, $400 million for repairs to Tasmania's Midland Highway and $77 million for various works on highways in the Northern Territory.
Australian Trucking Association (ATA) CEO Stuart St Clair welcomed the road funds and was happy that some pre-budget rumours turned out to be false, including word that the fuel tax credits system would be changed.
“The ATA pressed the Government to keep the fuel tax credits system as it is, despite suggestions that it could take a haircut,” St Clair said.
“The Government’s decision is a win for the trucking industry. The fuel tax credits system helps reduce the cost of transporting freight and keeps our exporters competitive.”
“Last year, the National Transport Commission concluded that the truck and bus industries would be overcharged by $232 million in 2014-15,” he added.
“The Government’s decision not to increase the road user charge this year will reduce the level of overcharging, but we will still pay $200 million too much.”