Summary
The report assessed the viability of reinstating the 24.3 km Oberon to Tarana rail line to improve timber supply chains and operational productivity for the forestry sector in the Central West NSW Forestry Hub region.
Analyses compared the road freight model with rail reinstatement and found rail reinstatement the most suitable option. A full rail reinstatement scenario was found to deliver the greatest benefits. This scenario required high government support and was estimated to deliver benefits of $674 million with a benefit-cost ratio of 4.59.
Other benefits of rail reinstatement included reduced haulage costs, fewer accidents, lower environmental externalities, and increased tourism. Environmental and heritage considerations such as noise, threatened vegetation, waterways, and heritage assets were noted for further assessment.
In brief, the report has outlined the case for reinstating the Oberon to Tarana rail line and identified the opportunity for government intervention. In the next stage, the report recommended progressing to a Strategic Business Case for a review under NSW Gateway Policy.
Acknowledgement of funding
This report was commissioned by the Central West New South Wales Regional Forestry Hub with funding from the Australian Government, Department of Agriculture, Fisheries and Forestry.
Disclaimer
Reports prepared for Regional Forestry Hubs, and any recommendations contained in the reports, are provided as received by the Hub and are not endorsed positions of the Hub. They do not constitute Australian Government policy.
