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Northern Inland Road Freight Study Report

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Northern Inland Road Freight Study Report FINAL REPORT NORTHERN INLAND REGION OF NSW – FREIGHT STUDY PREPARED BY PEECE PTY LTD FOR REGIONAL DEVELOPMENT AUSTRALIA – NORTHERN INLAND NOVEMBER 2012 PROJECT DETAILS Name of Client: RDA Northern Inland Name of Project: Northern Inland Region of NSW – Freight Study PEECE Project Manager: Peter Rufford Document Author: Peter Rufford Name of Document: RDANI freight study final report DOCUMENT HISTORY AND STATUS Revision Issued to Date Prepared by Reviewed by First Draft Nathan Axelsson 28 June 2012 Peter Rufford Steve O’Rourke Final (Draft Nathan Axelsson 11 Sept 2012 Bob Carstairs and Peter Steve O’Rourke Version) Rufford Final Nathan Axelsson 16 Nov 2012 Peter Rufford Peter Rufford PEECE Pty Ltd PO Box 239 WARNERS BAY NSW 2282 www.peece.com.au Abstract This report is the draft final report for the Northern Inland Region of NSW regional freight study. It includes a strategic overview of the freight drivers in the region, the road freight network, the list of high priority freight projects in the region, a $40million priority investment program and a freight strategy. The report provides stakeholders with an opportunity to comment on the report and the proposed eight freight strategies. This work is copyright. Apart from any fair dealings for the purposes of study, research, criticism or review, as permitted by the Copyright Act 1968, no part may be reproduced by any process without written permission. Copyright is the responsibility of the Executive Director, PEECE Pty Ltd. This report has been prepared in accordance with the scope of services described in the contract or agreement between PEECE Pty Ltd and the Client (listed above). The report relies upon data and results taken at or under the particular times and conditions specified herein. Any findings, conclusions or recommendations apply only to the aforementioned scope and circumstances, and no greater reliance should be assumed or drawn. PEECE Pty Ltd does not warrant that the information provided is complete and disclaims all responsibility and liability for any loss or damage incurred as a result of relying on the accuracy or completeness of this information. This report has been prepared solely for the use of the Client and PEECE Pty Ltd accepts no responsibility for its use by other parties. FOREWORD This report has been prepared in response to the need of stakeholders for a clear strategy to improve the efficiency of road freight movements across our region. It presents the results of research into the drivers for the movement of freight and the gaps in infrastructure provision that would allow freight to be moved more efficiently. The deteriorating road infrastructure in our region, if not rectified, will in time lead to a major impediment to regional growth. The reality is however, that Local, State and Federal Governments are all under severe financial constraints and a different funding model is required. The study has shown the major beneficiary of road improvements to be the private sector; however it is clear that the consequences of shifting the extra costs would result in increased freight charges across Northern Inland NSW. The road freight sector already pay significant State taxes that are not returned to Northern Inland roads. Those taxes need elucidating and a model needs to be developed so all existing transport taxes are returned to pay for the roads damaged in the movement of freight throughout our region. This report is the first step towards getting the state of our roads up to the standards that are enjoyed by our city cousins. The ultimate aim of this report is to demonstrate to governments and the private sector that investment in our roads is not money down the drain, but rather a way in which we can improve our regional economy as a whole. The status quo of road funding simply has not worked and cannot continue. RDA Northern Inland welcomes your response to the report and to the strategies contained within. Mal Peters Chair, RDA Northern Inland December 2012 TABLE OF CONTENTS Executive Summary .......................................................................................................... 1 Summary by Region .......................................................................................................... 5 New England Tablelands Sub‐region ................................................................................... 5 North West Slopes Northern Sub‐region ............................................................................. 7 North West Slopes Southern Sub‐region ............................................................................. 9 North West Plains Sub‐region ........................................................................................... 11 1. Introduction ........................................................................................................... 13 1.1 The RDA Northern Inland Region ........................................................................... 13 1.2 Approach taken and structure of the report ......................................................... 14 1.3 Purpose of this report ............................................................................................ 15 2. Regional Economic Drivers ...................................................................................... 16 2.1 Industry overview .................................................................................................. 16 2.2 Demand assessment framework ........................................................................... 18 3. Population‐based Freight Demand .......................................................................... 20 3.1 Regional population distribution ........................................................................... 20 3.2 Assessment of freight demand and road corridors ............................................... 20 4. Export‐oriented Freight Demand ............................................................................ 22 4.1 Grain, oilseed and legume production and processing ......................................... 22 4.2 Cotton production and ginning .............................................................................. 28 4.3 Crop inputs for main broad‐acre crops .................................................................. 31 4.4 Other crops ............................................................................................................ 33 4.5 Livestock production – sheep and cattle ............................................................... 33 4.6 Other livestock production .................................................................................... 39 4.7 Forestry and timber processing ............................................................................. 39 4.8 Mineral exploration and mining ............................................................................ 40 4.9 Heavy engineering demand ................................................................................... 45 5. Freight Route Network ........................................................................................... 47 6. Results of the Project Evaluation ............................................................................ 52 6.1 Projects selected for detailed assessment ............................................................. 52 6.2 Projects selected for minor assessment ................................................................ 52 6.3 Projects selected for desk‐top assessment ............................................................ 53 6.4 Results of the evaluation ....................................................................................... 54 7. Research Findings ................................................................................................... 57 7.1 Freight drivers ........................................................................................................ 57 7.2 Issues facing the transport industry ....................................................................... 60 7.3 Highest priority projects ........................................................................................ 60 7.4 Beneficiaries of a road investment program ......................................................... 62 8. Summary Sheets by Sub‐region .............................................................................. 64 8.1 New England Tablelands Sub‐region ..................................................................... 64 8.2 North West Slopes Northern Sub‐region ............................................................... 66 8.3 North West Slopes Southern Sub‐region ............................................................... 68 8.4 North West Plains Sub‐region ................................................................................ 70 9. Priority Program ..................................................................................................... 72 9.1 Approach taken ...................................................................................................... 72 9.2 Proposed program ................................................................................................. 72 10. Freight Strategy ...................................................................................................... 74 10.1 Strategic context .................................................................................................... 74 10.2 Eight strategies for improved efficiency ...............................................................
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