PROMOTING THE USE OF RAIL FREIGHT SERVICES

The paper considers the policy alternatives by reference to some schemes in other countries and a case study in Victoria. Freight is largely provided within a competitive model by private transport companies which means that commercial considerations drive investments. This is not the case for road infrastructure which is assessed on an economic basis. This may lead to inconsistency in the treatment of rail and road and mean that freight is not carried on the lowest cost mode. These factors appear to provide a justification for some government intervention including financial support to rail freight operators to enable them to win traffic from trucks. The matters covered in the paper include discussion of who should receive financial support, access to infrastructure provided, how the level of any financial support should be determined (for example the determination of economic worth, returns from the financial support, the community benefits of the removing freight from road to rail), and the mechanisms for the delivery of any support payments. (a) For the covering entry of this conference, please see ITRD abstract no. E209537.