The Albanese Government is today announcing a further $1.75 billion investment to improve the productivity, resilience and reliability of Australia's freight rail network, alongside a $55 million incentive scheme to get more freight moving by rail and sea.
This builds on the Albanese Government's existing $1.04 billion commitment to upgrade the Australian Rail Track Corporation's (ARTC) network, taking the total investment in the Network Investment Program to almost $2.8 billion.
This record investment in the ARTC's existing network will enable more freight to move via rail, with important upgrades to be delivered where they are needed most.
The works will involve upgrades to improve the efficiency of the East Coast network, including track renewal works, passing loop extensions, improved signalling to remove key speed restrictions, improve transit times, support larger trains and enhance service reliability and safety.
Works will also include resilience upgrades in high-risk flood-prone sections particularly along the East-West Corridor, which has faced many multi-week closures over the last decade following downpours in central Australia.
Alongside these upgrades, the Government is establishing a new $55 million program to incentivise more freight to move via trains and cargo ships. The Commonwealth, state and territory infrastructure and transport Ministers agreed in November 2025 to identify opportunities to move more freight by rail.
The Transport Resilience And Capacity Kickstart (TRACK) pilot program will support more fuel-efficient freight movements across Australia, which is especially relevant while the conflict in the Middle East continues to affect global fuel supply.
This work will also include the establishment of a coordinator within the ARTC to identify and implement improvements to rail operations in conjunction with other rail infrastructure managers.
The Government has taken the decision to consolidate the Inland Rail project by completing construction between Beveridge in Victoria and Parkes in New South Wales by the end of 2027.
This will enable double-stacked freight trains to travel between Melbourne and Perth, via Parkes.
This follows independent cost assurance work completed by ACIL Allen Pty Ltd, which has confirmed the cost estimate now exceeds $45 billion to deliver the full Inland Rail project from Melbourne to Brisbane.
This is more than three times the current budget allocation and this work also confirmed that the project cannot be delivered until at least 2036.
Dr Kerry Schott AO's 2023 independent review of Inland Rail found that the estimated cost of delivering Inland Rail had increased from $16.4 billion in 2020 to at least $31.4 billion in 2022 with very little certainty on the actual cost to deliver the project, primarily due to delays and immature preliminary designs. Dr Schott therefore recommended the appointment of an independent value engineer to further assess the cost estimate.
Inland Rail works north of Parkes will focus on preservation of the rail corridor, as well as protecting sites for future Inland Rail intermodal terminals in Queensland.
The Government will continue prioritising investments that deliver resilience, reliability and productivity to the ARTC's existing rail freight network in line with industry expectations.
Quotes attributable to the Minister for Infrastructure, Transport, Regional Development and Local Government:
"The Albanese Government's $1.75 billion investment in the ARTC network will shift more freight onto rail and protect this network for decades to come.
"This is critical funding that follows decades of underinvestment in the network by the former Coalition Government.
"The 2023 independent review found major deficiencies in the governance and delivery of Inland Rail by the Liberals and Nationals. We are taking sensible decisions to realign the future of Inland Rail and build a safe, efficient and reliable network for the future."
