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As fuel prices continue to climb, new modeling predicting the domestic railroad could cut transportation costs for some agricultural products by nearly $100 a ton. CSIRO found that a shift from road to domestic rail could reduce freight transportation costs by up to $213 million per year. Horticulture would be the biggest benefactor, saving up to $99.21 per ton. Farmers could save $48.87 per tonne, livestock transportation costs could drop by 9% while transportation of processed foods would be reduced by $57.82 per tonne. The report also forecast a reduction of $62 per tonne (31%) for regional intermodal freight to and from major metropolitan centers and ports. Deputy Prime Minister and Infrastructure Minister Barnaby Joyce said the savings justified the $14.5 billion project, which is expected to be completed by 2027. Joyce. “Reducing freight costs for businesses and industries along the route means they can grow and hire more Australians, helping regional economies to grow in the future.” road to rail will reduce the cost of transporting goods and goods to ports and better facilitate the sale of products, such as coal, which underpin our standard of living. Simon Birmingham said this would help provide freight companies with more competition. “CSIRO’s modeling shows how Inland Rail could reduce transport costs for over 90 goods across Australia,” he said. “This underscores the importance of building a national freight network that gives producers and businesses better access to national and international markets at competitive prices.”
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As fuel prices continue to climb, new modeling predicting the domestic railroad could cut transportation costs for some agricultural products by nearly $100 a ton.
CSIRO found that a shift from road to domestic rail could reduce freight transportation costs by up to $213 million per year.
Horticulture would be the biggest benefactor, saving up to $99.21 per ton.
Farmers could save $48.87 per tonne, livestock transportation costs could drop by 9% while transportation of processed foods would be reduced by $57.82 per tonne.
The report also forecast a reduction of $62 per tonne (31%) for regional intermodal freight to and from major metropolitan centers and ports.
Deputy Prime Minister and Infrastructure Minister Barnaby Joyce said the savings justified the $14.5 billion project, which is expected to be completed by 2027.
“Inland Rail gives us the best opportunity to drive economic development in regional areas, which is why we are delivering the project as quickly as possible,” Mr Joyce said.
“Reducing freight costs for businesses and industries along the route means they can grow and hire more Australians, helping regional economies to grow in the future.
“Shifting freight from road to rail will reduce the cost of moving goods and freight to ports and make it easier to sell products, like coal, that underpin our standard of living.”
It is estimated that Inland Rail would take 200,000 trucks off the roads each year, or 150 B-doubles for every train between Melbourne and Brisbane.
Finance Minister Simon Birmingham said it would help provide freight companies with more competition.
“CSIRO’s modeling shows how Inland Rail could reduce the cost of transporting more than 90 goods across Australia,” he said.
“This underscores the importance of building a national freight network that gives producers and businesses better access to national and international markets at competitive prices.”