$1.75bn funding commitment to further improve Australia's freight rail network

The Australian Government is committing a further $1.75 billion to improve the productivity, resilience and reliability of the country’s freight rail network.

This builds on the existing $1.04 billion funding commitment to upgrade the Australian Rail Track Corporation (ARTC) network, taking the total investment in the Network Investment Program to almost $2.8 billion.

The record investment in the ARTC’s existing network will deliver important upgrades where they are needed most to enable more freight to be transported via rail.

Works will involve upgrades to improve the efficiency of the East Coast network including track renewal works, passing loop extensions, improved signalling to remove key speed restrictions, improve transit times, support larger trains and enhance service reliability and safety.

Other works to be delivered include resilience upgrades in high-risk flood-prone sections particularly along the East-West Corridor that has faced weeks-long closures after downpours in central Australia over the last 10 years.

The Albanese Government is also establishing a new $55 million Transport Resilience And Capacity Kickstart (TRACK) pilot program, which will incentivise more freight to move via trains and cargo ships. The Commonwealth, state and territory infrastructure and transport Ministers agreed in November 2025 to identify opportunities to move more freight by rail.

The Program will support more fuel-efficient freight movements across the country, which is especially relevant while the conflict in the Middle East continues to affect global fuel supply.

A coordinator will also be established within the ARTC to identify and implement improvements to rail operations in conjunction with other rail infrastructure managers.

In addition, the Australian Government has made the decision to consolidate the Inland Rail project by completing construction between Beveridge in Victoria and Parkes in New South Wales by the end of 2027, allowing double-stacked freight trains to travel between Melbourne and Perth, via Parkes.

This follows independent cost assurance work completed by ACIL Allen Pty Ltd, which has confirmed the cost estimate now exceeds $45 billion to deliver the full Inland Rail project from Melbourne to Brisbane.

This is more than three times the current budget allocation and this work also confirmed that the project cannot be delivered until at least 2036.

Dr Kerry Schott AO’s 2023 independent review of Inland Rail found that the estimated cost of delivering project has increased from $16.4 billion to about $31.4 billion in 2022 with very little certainty on the actual cost to deliver Inland Rail, mainly due to delays as well as immature preliminary designs. Dr Schott therefore recommended the appointment of an independent value engineer to further assess the cost estimate.

“The Albanese Government’s $1.75 billion investment in the ARTC network will shift more freight onto rail and protect this network for decades to come.

“This is critical funding that follows decades of underinvestment in the network by the former Coalition Government.

“The 2023 independent review found major deficiencies in the governance and delivery of Inland Rail by the Liberals and Nationals. We are taking sensible decisions to realign the future of Inland Rail and build a safe, efficient and reliable network for the future,” Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King said.

Inland Rail works north of Parkes will focus on preservation of the rail corridor and protecting sites for the future Inland Rail intermodal terminals in Queensland.

The Albanese Government will continue prioritising investments that deliver resilience, reliability and productivity to the ARTC’s existing rail freight network in line with industry expectations.

Source: Minister for Infrastructure, Transport, Regional Development and Local Government; Roads & infrastructure Australia; Infrastructure Magazine