Inland rail another failed Aussie infrastructure project

I used to be a supporter of the Inland Rail Project, which aimed to build an inland rail freight line between Melbourne and Brisbane.

The reason I backed the project is best illustrated in the following graphic, showing how rail’s share of long-haul freight is abysmally low, at less than 30% between Melbourne and Brisbane:

Trucks have intrinsic competitive advantages in the transportation of short-haul general freight due to their ability to provide flexible door-to-door service without mode transfer (i.e., transfer to/from rail) and their ability to handle smaller consignment sizes.

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.