Rail freight plays a vital role in facilitating Australia's commodities export, with iron ore and coal constituting a formidable 75 per cent of the country's total rail freight volume by weight.

Rail transportation is inherently adept at efficiently hauling large volumes of freight over extensive distances. Nevertheless, the mode has historically encountered difficulties in gaining traction on pivotal Australian freight corridors, notably those connecting Sydney, Melbourne, and Brisbane. The implementation of innovative policy frameworks can play a crucial role in mitigating the longstanding impediments to rail adoption, ultimately fostering a more sustainable and resilient freight network that leverages the inherent advantages of rail transportation.

Despite its potential, rail faces substantial hurdles in capturing a greater share of the market on key interstate freight routes, particularly along the critical corridors connecting Melbourne, Sydney, and Brisbane. While the Inland Rail project and the development of intermodal freight precincts will significantly enhance the quality of service offered by rail, these investments alone are insufficient to guarantee the desired modal shift. Additional investments are crucial to address existing infrastructure gaps, thereby enabling rail to realise its full potential. These investments should focus on bolstering network resilience to facilitate rapid recovery from natural disasters and improving the overall reliability of the rail network.

The need for rail to assume a more prominent role in Australia's burgeoning freight sector is both significant and pressing. Enhancing rail's modal share represents a pivotal strategy for achieving the Australian Government's legislated target of reducing emissions by 43% by 2030. The COVID-19 pandemic has underscored the vital importance of rail in maintaining the integrity and resilience of Australia's national freight supply chain, while also highlighting its critical role in ensuring the nation's sovereign capability.

The Australian rail freight sector is presently constrained by the limitations of its legacy infrastructure, which has been developed over time to varying standards. This disparate infrastructure landscape imposes significant constraints on the types of trains that can be deployed, as well as the policies and procedures that govern the operation of freight services across the country. To overcome these challenges and unlock the full potential of the rail freight sector, it is essential that investors, policymakers, and industry stakeholders collaborate to develop and implement a comprehensive modernisation strategy.

The rail freight sector has been beset by chronic capacity constraints on the east-west corridor, which have been exacerbated by the increasing frequency and severity of extreme weather events, such as flooding. These disruptions have resulted in prolonged delays to rail freight services, underscoring the need for strategic investments in new infrastructure and targeted upgrades. By addressing these pressing challenges, stakeholders can work towards enhancing the resilience, reliability, and overall performance of the rail freight network, ultimately supporting the efficient movement of goods and the growth of the national economy.

Investors, in particular, have a critical role to play in supporting the upgrade and standardisation of the rail freight network. By providing capital to support the development of new, interoperable infrastructure, investors can help to facilitate the more efficient and reliable movement of freight across the country. Moreover, investments in digital technologies, such as automation and data analytics, can further enhance the productivity and competitiveness of the rail freight sector. By working together to address the sector's infrastructure and technological challenges, investors, policymakers, and industry stakeholders can help to create a more efficient, sustainable, and resilient rail freight network that supports the long-term growth and prosperity of the Australian economy.

As Australia's freight task continues to expand, it is essential that rail's contribution is substantially increased. This is not merely a desirable outcome, but a critical requirement for ensuring that our transport infrastructure is capable of meeting the nation's freight needs while adhering to an acceptable carbon emissions footprint. It is evident that road transport alone cannot fulfill the freight task; a more balanced and sustainable approach, with rail playing a central role, is indispensable for securing Australia's freight future.

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