A major freight route designed to connect Australia’s east coast will be left half-finished after nearly tripling in cost over six years.
The federal budget will include plans to pare back the Inland Rail project – originally intended to run from Melbourne to Brisbane – and instead end it at Parkes in central NSW.
Independent analysis shows the cost has blown out from $16.4 billion in 2020 to more than $45 billion, Transport Minister Catherine King said in a statement.
“We are taking sensible decisions to realign the future of Inland Rail and build a safe, efficient and reliable network for the future,” she said.
The 1600-kilometre freight line, made up of new and existing track, was designed to run from Beveridge, just outside Melbourne, to Kagaru near Brisbane, making it easier to transport goods along the nation’s east coast while reducing the number of trucks on roads.
The government will hold onto the land for the rail corridor north of Parkes – roughly halfway between Melbourne and Brisbane – but has no immediate plans to build the second half of the project, Ms King said.
Opposition transport spokeswoman Bridget McKenzie slammed the decision, labelling the project the “road to nowhere”.
“This is a direct hit for the businesses and communities and primary producers that had all geared up for this decadal project,” she told AAP.
“Primary producers and manufacturers wanted resilience built into the north-south freight network … a project that is from Beveridge to Parkes loses all that additional opportunity.”
Some communities along the rail line have raised concerns about potential noise, and towns being effectively cut in two by the route.
The government will also pour an extra $1.75 billion into the east coast freight network in the budget, aimed at upgrading tracks, improving signalling and extending passing loops.