Infrastructure Australia has queried whether a proposal to build a rail line from Yamba through the north to link with the proposed Melbourne to Brisbane line is feasible.
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Under questioning from Nationals Senator John Williams in Senate estimates, the Secretary of the Department of Infrastructure and Regional Development Mike Mrdak said he had only seen media reports about the proposed project but had grave doubts about its success.
Senator Williams asked whether Infrastructure Australia was involved in any planning for the proposed line from Yamba through Grafton to Moree, known as the Pacific West Corridor, which a media report suggests will be completed by 2023.
Mr Mrdak said his initial reaction was that it would be a very difficult project because of the capital cost and the low volumes of freight.
He also said it is unlikely the shipping trade would call into relatively small ports because globally they are looking for larger volumes, and around Australia a number of regional ports are struggling.
Mr Mrdak said he would be concerned whether the rail project was “financially bankable”.
The Australian Rail Track Corporation also confirmed it had not been approached.
Senator Williams said it is clear from the responses that if the project is to succeed it would have to be through private investment.