Off track: big rail project slashed after cost blowout

A major freight route designed to connect Australia’s east coast will remain half-finished after its cost nearly tripled in six years.

The federal budget will include plans to cut back on the Inland Rail project, which was originally planned to run from Melbourne to Brisbane, and instead end it at Parkes in central NSW.

Transport Minister Catherine King said in a statement that independent analysis showed the cost had risen from $16.4 billion in 2020 to more than $45 billion.

“We are taking sensible decisions to realign the future of Inland Rail and create a safe, efficient and reliable network for the future,” he said.

The 1600km freight line, comprising new and existing lines, is designed to run from Beveridge, just outside Melbourne, to Kagaru, near Brisbane; thus making it easier to transport goods along the country’s east coast while also reducing the number of trucks on the roads.

Ms King said the government would retain land for the rail corridor north of Parkes – about halfway between Melbourne and Brisbane – but had no immediate plans to build the second half of the project.

Opposition transport spokeswoman Bridget McKenzie slammed the decision, describing the project as a “road to nowhere”.

“This is a direct blow to businesses, communities and primary producers who have been preparing for the decade-long project,” he told AAP.

“Primary producers and manufacturers wanted flexibility to be created in the north-south transport network… A Beveridge to Parkes project misses all these additional opportunities.”

Some communities along the rail line have expressed concerns about potential noise and towns being effectively bisected by the route.

The government will also inject an extra $1.75 billion from the budget into the east coast freight network to improve lines, improve signaling and expand transit loops.