Western Australia’s McGowan Government has implemented financial incentives to reduce truck congestion and get more freight on rail to Fremantle Port.
As committed prior to the last election, the container rail subsidy increased from $30 to $50 per Twenty-foot Equivalent Unit (TEU) from 1 January 2018.
The plan aims to reduce truck traffic on roads around Fremantle Port by encouraging more freight on rail.
The Western Australian Government’s integrated plan for freight and trade includes a target to boost rail mode share to 20 per cent – an increase of approximately five per cent.
The subsidy will be paid for all loaded containers that move between North Quay Rail Terminal (NQRT), Forrestfield and Kwinana, as well as for containers filled with hay received by rail at NQRT for export.
“Increasing the rail share for container haulage is one of several initiatives to improve efficiencies at the Inner Harbour to facilitate trade growth until additional port facilities are viable,” the Government said in a statement, adding that others include supporting the development of the Westport: Port and Environs Strategy; development of the broader rail supply chain, including intermodal facilities; and upgrading road infrastructure linkages around the inner harbour.
“The rail service plays a significant role in achieving greater efficiency in the container supply chain as well as improving community amenity and environmental benefits along metropolitan roads that link to Fremantle Port,” said Western Australian Transport Minister Rita Saffioti.
“That is why the McGowan Government has delivered on its election commitment to increase the container rail subsidy to encourage more container movements on the port rail service.”