Manufacturing News

CSIRO study calculates freight cost savings from Inland Rail

Manufacturing News

An early release of calculations from a CSIRO supply chain analysis report has suggested $171 million in transport costs could be saved annually through use of the Inland Rail, expected to be operational by 2024-25.

The research used the CSIRO-developed Transport Network Strategic Investment Tool (TraNSIT) to “analyse existing freight supply chains and… potential cost reductions based on future infrastructure investments or operational changes.”

When completed, the Inland Rail will join Melbourne to Brisbane via regional hubs. Travelling the full 1,700 kilometre distance would save up to 44 per cent in freight costs, according to CSIRO’s analysis.

“CSIRO has mapped supply chains for 140 commodities and the early results show an average transport cost reduction of 39 per cent can be achieved by shifting freight from road to Inland Rail for at least part of the journey,” said deputy prime minister Michael McCormack in a statement.

“In regional Australia distances between communities and towns, and towns and cities are measured in more than miles and minutes – they’re measured in the cost of moving essential goods where and when people need them.”

Troy Paton, director of concrete industry supplier Concrete World, said that a calculated saving of 39 per cent on moving freight was, “huge in this industry” and he would “definitely be looking at Inland Rail” when it opened.

Picture: The Nationals

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