The Freight on Rail Group (FORG) has emphasised the vital role rail freight plays in maintaining fuel security, noting that there is currently adequate supply and no immediate impact on rail operations.
In a statement, FORG said that global fuel markets are evolving rapidly and that recent developments in the Middle East show the importance of forward planning to protect essential freight services.
“Freight rail is an essential service and critical infrastructure that must be prioritised during any fuel supply disruption,” Geoff Smith, Chair of FORG, said.
The group also confirmed it has been involved in direct briefings from the Federal Government on the current supply situation and supports the Government’s approach. “Rail moves groceries, medical supplies, liquid fuels and grain, and also supports Australia’s energy exports relied upon by partners such as China, Korea and Japan,” Mr Smith said.
FORG stressed the efficiency of rail freight, which can move up to five times more freight using the same amount of fuel as road transport. This makes it a key contributor to the supply chain when fuel security is under pressure.
The group said the rail freight industry is ready to assist government by rapidly increasing capacity on key East–West and East Coast corridors. Shifting freight from road to rail can reduce diesel consumption and strengthen supply chain resilience.
“Prioritising rail freight in fuel allocation and contingency planning is one of the most effective ways to keep essential goods moving in a fuel-constrained environment,” Mr Smith concluded.
FORG represents Australia’s nine major rail freight businesses: Pacific National, Australian Rail Track Corporation (ARTC), One Rail Australia, Aurizon, Qube Holdings, SCT Logistics, Arc Infrastructure, WatCo Australia, and Southern Shorthaul Railroad (SSR). Together, these companies contribute more than $11 billion annually to the economy, employ 20,000 people (many in regional Australia), operate 1,600 locomotives and 34,000 wagons, and manage 23,000 kilometres of rail track across the mainland.
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