In the wake of a number of incidents that have seen Quilpie retailers write off thousands of dollars worth of goods in recent weeks, and amid news that the state government is assessing tenders for new regional freight transport services, business owners and community leaders are calling for assurances for the future of services.
Concern has been mounting in communities with an Aurizon-supplied road freight service, that the subsidy built into the contract between the state government and Aurizon will be lost under a new agreement.
The current contract, through which the state has purchased around 3300 rail and road regional freight services per annum in north west, central west and south west sectors, has recently been extended from June to December 2017, and is performance-based.
A Request for Proposal to the open market for both a new regional rail freight transport service contract and a cattle train transport service contract were released at the end of June last year, and tenders closed at the end of October.
With the review of industry proposals currently underway, information on the future of the service from the transport department was scanty, saying only that it couldn’t comment on the evaluation process.
When contacted, Transport Minister, Jackie Trad, said the state government was committed to funding future investment in regional rail freight, including ongoing support for livestock and freight rail contracts.
She pointed to last year’s reinstatement of the rail line from Oakey to Oakey Beef Exports and the investment of $48 million in maintaining the Glenmorgan and western lines between Rosewood and Quilpie as evidence of the government’s commitment.
Gregory MP, Lachlan Millar, said the state government had an obligation to continue the general freight subsidy to ensure western regions continued to have a service.
“They can’t walk away from that,” he said. “It’s not a luxury, it’s a necessity.”
He warned that it was a statewide issue with the potential to see costs passed on in communities across the state, or a reduction in fresh food services from twice a week to once a week.
Mr Millar also said he didn’t think Aurizon management cared about servicing its western freight obligations and suggested a lease arrangement for a “boutique” operator instead, which would lease engines and carriages from the government.
“We need someone who will put marketing people on the ground and really sell the product,” he said. “Failing that, Aurizon management needs a shake-up.”
Businessman Trevor Mead said it was a case of Aurizon being “all head and no heart”.
“Aurizon’s a private business dedicated to making a profit.
“One of their bosses sat here in my office and told me, if the freight subsidy was lost, they’d lose interest in the business very quickly.
“This business is a loss operation for them.”
Aurizon has confirmed that without the freight subsidy, it would not be able to operate the service.
In January 2016 the ATN website reported that the renewal of the livestock and general freight contracts with Aurizon at that time would enable over 900 train services a year, consisting of more than 300 cattle trains from regional hubs such as Cloncurry, Julia Creek, Winton, Clermont and Quilpie, and 624 freight services “to provide economic benefits and employment opportunities in the region”.
It said the renewed contracts included the introduction of performance targets and an increased focus on customer service.
Sally Gall
Based at Blackall, CW Qld, where I've raised a family, run Merino sheep and beef cattle, and helped develop a region - its history, tourism, education and communications. Get in touch at 0427 575 955 if you've got a story idea for me.
Based at Blackall, CW Qld, where I've raised a family, run Merino sheep and beef cattle, and helped develop a region - its history, tourism, education and communications. Get in touch at 0427 575 955 if you've got a story idea for me.
