23 July 2025

Inland rail debacle shows route should have gone through Narrandera, not Wagga

| By Oliver Jacques
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Workers in high-vis uniforms working on railway

The Federal Government’s nation-building Inland Rail project was beset with problems even before it got underway. Photo: Inland Rail.

Cost blowouts. Traffic chaos. Further delays.

Who would’ve guessed the building of a rail freight line between Melbourne and Brisbane via Wagga would be beset with so many problems?

Answer: Everyone. Many critics expressed their concerns well before the so-called nation-building project got underway.

The Federal Government didn’t listen, ignoring a proposed alternative inland rail route via the food bowl regions of the Riverina that made a lot more sense than the troubled project it is pursuing.

Now, it’ll pay the price. Or rather, we will. A project originally expected to cost less than $5 billion is now set to leave taxpayers with a bill of well over $30 billion.

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An inland rail route between Melbourne and Brisbane has been talked about for more than a century. The concept makes sense. It would allow businesses and farmers in rural towns to get their products to big cities quicker and more efficiently for both export and domestic consumption. It could also help reduce the volume of trucks clogging up our highways, as more companies opt to use the more efficient direct rail route to transport their goods.

In 2015, Brisbane-based private consortium National Trunk Rail (NTR) proposed a $13 billion Melbourne to Brisbane freight route via Shepparton, Tocumwal and Narrandera. NTR argued this was a flatter route that avoided hills and major population centres while passing directly thorough rich food producing regions – making it more accessible to farmers in Griffith, Leeton, Hay and Hillston.

But much like with the National Broadband Network (NBN), the then Coalition government wanted a cheaper option. It went for the publicly-owned Australian Rail Track Corporation (ARTC) proposal for a route that passed through Wagga and Albury, which at the time was projected to cost $10 billion and use mostly century-old existing tracks.

NTR warned that the ATRC cost would be much higher than it was forecasting at the time. The government-owned entity had no start and end point to its rail line, having not reached an agreement with the privately-owned ports. Moreover, the ARTC did not have a good track record at delivering projects on time and on budgets (excuse the pun).

These warnings came to fruition when a 2023 independent report by Dr Kerry Schott revealed a projected cost of $31.4 billion that will continue to climb until the line is built.

Ever since then, there has been a new inland rail controversy each month. Wagga residents are upset that the rail line cuts through their CBD, with local MP Joe McGirr expressing concerns about a rail crossing just a couple hundred metres from Wagga Wagga Base Hospital causing delays for ambulances getting patients to hospitals during an emergency.

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The Federal Government has announced a $30 million investment plan for a potential rail bypass of Wagga Wagga – further pushing up costs and extending the timeline for the project.

There have also been complaints about noise pollution and acquisition of farmers’ land.

Now that Inland Rail has begun construction, it’s probably too late to change course. We are destined to spend billions upon billions on a poorly thought out idea that probably won’t be completed for many years to come, if at all.

This once again demonstrates the Federal Government needs to take community consultation and feedback seriously, rather than seeing it as a tick a box exercise that has no impact on its predetermined policies. We hope this will teach them a lesson, but I fear it will be the same story when they embark on their next grand nation-building plan.

Original Article published by Oliver Jacques on Region Riverina.

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Leon Arundell1:47 pm 28 Jul 25

Oliver Jacques says that, on order to avoid cost blowouts, we should have chosen a alternative that would cost 30% more. Is he angling to replace Chris Steel as ACT Treasurer?

Capital Retro9:13 am 28 Jul 25

I’ve just finished reading David Dufty’s “Charles Todd’s Magnificent Obsession” which is an account of the greatest feat of engineering (building a national telegraph system to connect us to the rest of the world).

There are a lot of parallels with the inland rail project the biggest one being the rivalry between the states and territories.

It would be a positive move if this book and Blainey’s “The Tyranny of Distance” could be included as mandatory reading for secondary age school students.

julian macdonald6:05 pm 27 Jul 25

Sorry but no.
The main purpose of the line has always been end-to-end freight, and for that it needs to be as direct as possible.
A Shepparton – Narrandera – Junee route would have been 60km longer.
A Narrandera – Caragabal direct line would reduce that excess at the expense of 150 more kilometres of greenfields construction, with all the problems and costs of property resumption as we have seen in the Queensland section.
The Schott report criticised aspects of the route selection *process*, but it did not criticise the selected route.
If there have been cost blowouts, that’s because there are often cost blowouts on big infrastructure projects. It’s not because of the chosen route.
There has been a railway through Wagga for 150 years. If you live near the line, you knew what you were getting. If increased traffic causes problems at level crossings, you can built overbridges (or indeed a town bypass) when the need arises.
In the 2010 route selection report, the Shepparton route didn’t make it to the short list because “Though the fastest Shepparton route offered a transit time that would be quicker by about 30 minutes [presumably this means a Narrandera-Caragabal direct new line?] , this route attracted a significant extra capital cost (adding over $900 million to the project relative to Albury alternatives). The Shepparton route had the potential to capture only a very small amount of regional freight…. “

This is Australia all over. Misserable lack luster unimaginative, block headed political leadership. Expensive infrastructure projects in the wrong place and then botched. Australia is such a disappointing place. Our energy policies turning an energy powerhouse into a de-industrialisingwasteland. So much for the vision splendid. And water policies reducing supply and ag output rather than increasing supply. Head in sand policies.

“This is Australia all over.”

How true. This is yet another major case for the “productivity discussion” to focus and draw on.

Unless we address this as a nation, we will then still have to rely on our “luck” in this “lucky country”.

No matter what route was chosen someone would be unhappy and somone will be unhappy at whatever route over the range into southern Queensland is chosen. It was a no win situation. Also, the tracks you refer to are not century old. The rails are not new and nor are the sleepers. It’s the alignment that is century old. (Yes, the concrete sleepers replacement did not go at all well and that’s another matter.) As for cost blow-outs, that’s pretty much the norm with infrastructure projects, particularly when there’s politics (from any side) involved. It’s called the planning fallacy.

Capital Retro8:54 am 27 Jul 25

“Cost blowouts. Traffic chaos. Further delays.”

I thought this was yet another article about the Canberra trolley-folly.

Coalition government take was the NBN would take too long to roll out. It’s still not in most of Canberra!
The ACT has contributed to the poor roll out in the ACT refusing to work with NBN co, so it’s a crazy argument to blame on the coalition.

Labor also didn’t list it on expenditure as it was going to make money. Also false.

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