Federal funding cut to Inland Rail a major blow

Narrabri Shire Council has expressed its disappointment following the federal government’s decision to withdraw funding for the remaining northern sections of the Inland Rail project beyond Parkes, and including Narrabri.

In announcing the changes to the proposed national rail freight corridor between Melbourne and Brisbane, the government said the confirmed cost for the entire route in full now exceeded $45 billion.

Narrabri Shire mayor Darrell Tiemens said funding for this project was announced nearly 10 years ago right here in Narrabri.

“Billions of dollars have already been committed by businesses that would have played a role in its delivery and long-term operation. To walk away now represents an extraordinary waste of opportunity and investment,” Cr Tiemens said.

Council invested significantly in the project, including the purchase of 240 hectares of land earmarked for the proposed Northern NSW Inland Port. Despite the setback, Cr Tiemens said council would continue to focus on economic growth opportunities and advocating for critical infrastructure investment.

“We are fortunate in Narrabri to sit at the intersection of major highways and to have existing rail access to the Port of Newcastle that our Inland Port can continue to drive major economic benefits through,” he said. “We will continue to advocate strongly for projects that strengthen inland Australia, improve freight connectivity and support future generations.”

Cr Tiemens said Inland Rail was always about more than freight.

“This project represented jobs, investment, freight efficiency, road safety and long-term economic growth for inland communities like ours,” he said. “One of the original drivers behind Inland Rail was reducing heavy vehicle movements on our roads and lowering emissions through greater use of rail freight.”“Those benefits now appear far less achievable,” Cr Tiemens said following the government’s announcement.

The Inland Rail project was expected to create more than 450 jobs across Northern NSW, increase regional economic output, support local businesses during construction, and help attract future industry to the region.

Cr Tiemens said uncertainty and changing priorities at a federal level were difficult for regional communities that had planned for growth around major infrastructure commitments.

“Regional Australia needs certainty, long-term vision and nation-building infrastructure,” he said. “Communities like Narrabri are ready for growth, ready for investment and ready to contribute even more to the national economy. We cannot afford to keep shifting the goalposts on projects of this scale and significance.”

Council will continue engaging with government and industry stakeholders regarding future freight, logistics and economic development opportunities for the region.

Federal Member for Parkes Jamie Chaffey also condemned the decision, saying it was a betrayal of regional Australia. “More than 160km of upgraded track between Narrabri and North Star – which has been completed and operational since 2023 – is now a spur to nowhere, disconnected at both ends and generating no commercial value,” Mr Chaffey said.