The Port of Portland says it's willing to spend $2 million on upgrades to the site, if a business case for the Maroona rail line indicates an upgrade would provide an economic boost for stakeholders.
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The federal budget set aside $2.2 million funding, for an 18-week business case into evaluating the upgrade of the Maroona to Portland line, in Victoria's south-west.
The 173 kilometre line connects the western half of Victoria to the national rail grid.
Key stakeholders have been advocating for upgrading of the line from 19 tonne axle loads (TAL) to 23 TAL for may years, saying that will strengthen its competitiveness.
Port of Portland chief executive Greg Tremewen said the port had money set aside to upgrade its own facilities.
"We have got more than $2 million to spend on our own rail area, such a business case prove positive and the line is subsequently upgraded," he said.
"Right at the moment, we have been reluctant to do that because of the lack of certainty around the line.
"We are on a bit of a drip-feed, at the moment, with our maintenance program, because we don't want to spend $2m and the line is shut down, for example."
He said research into the upgrade had been handed to the federal government, prior to the decision to fund the business case.
"We engaged Deloitte Access Economics to see if there was an economic benefit in upgrading that line from 19-tonne axle load to 23 TAL and increasing the current speed of 40 kilometres and hour to 80 kph," Mr Tremewen said.
"That was done with involvement from key stakeholders, such as the ARTC, local governments, Wannon MP Dan Tehan and the Deputy Prime Minister's office."
The Southern Grampians shire has estimated it could cost $206m to fully convert the track to meet modern standards, 23 TAL and 80kph speed limits.
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Riordan Grain and the port have temporary loaders at the site, while GrainCorp has its own facilities.
"We are pleased to see the progress on this line, it's been an issue for a number of years," Mr Tremewen said.
"(An upgrade) will offer a much more efficient service than what is currently there
"A 40kph speed restriction is inefficient - it takes six hours, one way, for a train to get from Maroona to Portland.
"That's just to do 173km."
Mr Tremewen said potential customers had indicated a line upgrade would attract 'considerable business' to the port, in a cost effective manner.
Mallee and Wimmera croppers and mineral sands operators, around Horsham, would be the main beneficiaries.
"This is the first step in the right direction," he said.
Riordan Grains managing director Jim Riordan said as long as a crop wasn't hit by drought, or other issues, an upgrade was a good idea.
"The fundamental issue is the supply of enough product - over enough time - to warrant the capital expenditure of above and below the line assets," Mr Riordan said.
"We would see more product to Portland but we would need another train unloading location."
The Rail Futures Institute welcomed the government's commitment to expedite the detailed business case.
Secretary David Hardy said upgrading the line would allow it to handle potential increased seasonal grain volumes, as well as mineral sands from multiple mine sites in the Wimmera and Mallee year round.
"The line upgrade would see train axle loads increased to allow the Port of Portland to compete equally with Geelong," Mr Hardy said.
"When complete the Portland line upgrade would see trains operating with freight wagons loaded to their full potential capacity accessing Portland at very competitive and lower cost to rail forwarders.
"The new high volume bulk traffics now offering to Portland, like mineral sands, are ideally suited to rail haulage,"he said.
The consequent community benefits included reduced greenhouse gas emissions and totally avoiding substantial road damage, while saving millions of dollars in increased regional road maintenance costs each year.
Mr Hardy said it could also facilitate potential shipment of containerised wool exports from Hamilton, Portland while optimising rail wagon carrying capacities originating from locations on the standardized Murray Basin rail lines.
"The upgrade of the Maroona - Portland line is essential for rail to capture these new bulk traffics and for the deep water Port of Portland to maximize, and exploit, its natural benefits for the benefit of all Victorians."