Passenger rail the big winner in Budget spending spree

Grand nation-building efforts, such as the Melbourne-Brisbane inland rail link, remain sidelined for now.

The by-product of the government's approach should be to take cars off city roads by mid-way though the next decade if all goes to plan.

The major rail plans for priority spending are:

• Regional Rail Express in Victoria - $3.2bn: construction expected to commence in 2010 and scheduled for completion in 2014;

• Gawler Rail Line Modernisation in South Australia -– $293.5m: construction expected to commence in 2010 and scheduled for completion in 2013;

• Noarlunga to Seaford Rail Extension in South Australia – $291.2m: construction expected to commence in 2010 and scheduled for completion in 2013;

• Gold Coast Light Rail in Queensland – $365m: construction expected to commence in 2011 and scheduled for completion in 2013 ;

• East-West Rail Tunnel – Preconstruction Work in Victoria - $40m: construction expected to commence in 2012 and scheduled for completion in 2018.

The Federal government intends to put development funds towards three further urban rail "pipeline" projects.

• Northbridge Rail Link, Perth, (the Hub) – $236m: construction expected to start in 2009 and scheduled for completion in 2014;

• West Metro preconstruction work Sydney - $91m: cash to advance the West Metro project to the next stage;

• Brisbane Inner City Rail Feasibility Study to determine potential route alignment, construction timetables  and preferred funding model – $20m .

“With last night’s announcement, the government has recognised the vital role that rail plays in Australia’s economy and especially in making our cities more liveable, efficient and accessible.”  Australasian Railway Association (ARA) chief executive Bryan Nye said.

"Projects such as the Victorian Regional Rail Express are critical to the transformation of rail to provide extensive people movement capacity for the betterment of our societies.

“This is a crucial time for Australia and the government has done the right thing by ensuring rail is part of the solution to the challenges we face today.

"We now need the Federal Government to set up a National Infrastructure Coordinator with powers over state and local governments to ensure the projects are rapidly implemented.

"We can no longer afford the delays caused by the myriad of planning approvals at local levels.”

While rail freight is not entirely ignored in new spending initiatives, much of it has already been flagged.

• rail access improvements at Port Botany in New South Wales – $150m: construction expected to commence this year and scheduled for completion in 2013;

• rail upgrades at Geelong Port in Victoria – $50m: construction expected to commence in 2010 and scheduled for completion in 2011;

• capacity improvements at Rhyndaston in Tasmania – $24m: construction expected to commence in 2010 and is scheduled for completion in 2012;

• capacity improvements on the main north-south rail line in Tasmania – $31.6m: construction expected to commence in 2010 and scheduled for completion in 2012 .

Separately in the coming financial year the government will pay the majority of its $1.2bn capital injection into the Australian Rail Track Corporation. 

This transaction was part of the December stimulus package, with the funds being used to upgrade the Hunter’s coal export chain as well as other key sections of the interstate rail network.

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