Renewed Push to Complete Murray Basin Rail Project Gains Momentum

Farmers and regional communities in Victoria's North-West are once again pushing for the state and federal governments to finish the long-delayed Murray Basin Rail project and restore a direct freight link to key ports.

Regional advocacy group Ouyen Inc has stepped up its campaign advocating for the project's completion ahead of the November state election, arguing the time is right to prioritise regional infrastructure and address what it describes as a critical gap in the state’s freight network.

Ouyen Inc Committee member and local farmer Dean Munro said the issue dates back to 2019, when a plan to standardise Victoria’s rail gauge network was left incomplete due to cost overruns and planning challenges. The result, he said, has been a less efficient system than what existed previously.

“Before the project, we had a direct broad-gauge connection to port,” Mr Munro said.

“Now freight has to travel an extra 130 kilometres via Ararat, which makes the system far less efficient and less competitive.”

That change, he says, has been felt right across some of Victoria's most productive agricultural areas: leaving large volumes of freight - generated by industries such as wine grapes, almonds, grain and mineral sands - to be transported largely by trucks, placing immense pressure on road freight, transport costs and regional roads.

“It’s not just about one industry -it’s everything coming out of the region,” he said. “And a lot of it is now going on trucks instead of rail. It’s just a ridiculously inefficient system.”

Mr Munro specified that the call to get the rail finished is not intended as a criticism of, or replacement for, road transport.

“We’re not anti-truck," he said, "we rely on them every day.”

“But when you’ve got this much freight moving long distances by road, it just doesn’t make sense when rail should be doing the heavy lifting.”

Mr Munro said a key concern when it comes to rail vs road freight is whether Australia’s road network is coping with the increasing demands of modern freight, including the growing size and number of trucks on regional routes.

“Our roads haven’t kept up with the size and number of trucks we're putting on them each day."

“We’re seeing longer, heavier vehicles, but the infrastructure hasn’t improved at the same pace.”

He said that this ongoing pressure on the road system - and the potential danger it poses to those who drive it daily - has only reinforced the need to complete the long-stalled rail project.

Mr Munro also acknowledged the financial pressures that contributed to the project’s initial halt, but said a relatively modest investment from the government seven years later, could now deliver substantial returns.

“It’s a significant project, but the efficiency gains on the back end are what make it worthwhile,” he said.

Estimated at around $450 million, completion of the rail corridor - combined with the proposed Sunraysia and Mallee intermodal freight hub at Ouyen - could significantly boost efficiency, with Mr Munro adding that the intermodal alone could deliver a 38 per cent improvement in rail productivity.

“It’s a bit of a chicken-and-egg situation,” he said. “You need the rail standardised to unlock the full benefits of the intermodal, and vice versa.”

With the state election approaching, Ouyen Inc is encouraging residents and industry stakeholders to raise the issue directly with political candidates.

Mr Munro said regional Victoria has been overlooked for too long when it comes to infrastructure.

“We need investment in roads, bridges and rail - not just for efficiency, but for safety and long-term sustainability,” he said.

He said the business case for completing the project remains strong, with widespread agreement among industry groups and analysts.

“Everyone who looks at it can see it stacks up,” he said. “We just need decision-makers to act.”