Regional Intermodal Terminal TaskforceFreight, Strategy and Planning - Transport for NSW

Submission by Narrabri Shire Council

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CONTENTS EXECUTIVE SUMMARY .................................................................................................................. 4

1. INTRODUCTION ................................................................................................................... 8

1.1 Purpose ...............................................................................................................................................8

1.2 Definition ............................................................................................................................................8

1.3 Background to the Enquiry into Regional Intermodal Terminals .......................................................8

1.4 Intermodal Terminals in Narrabri Shire ..............................................................................................9

1.5 Stakeholder Consultation................................................................................................................. 10

1.6 Terminology ..................................................................................................................................... 11

2. NARRABRI SHIRE ............................................................................................................... 12

2.1 Overview .......................................................................................................................................... 12

2.2 Access & Transport Infrastructure ................................................................................................... 13

2.3 Economic Activities .......................................................................................................................... 16

3. FREIGHT IN NARRABI SHIRE & SURROUNDING REGION ............................................. 20

3.1 Commodity & Freight Movement Patterns – Narrabri Shire ........................................................... 20

3.2 Suitability of Narrabri Shire for Intermodal Terminals .................................................................... 24

4. INTERMODAL TERMINALS IN NARRABRI SHIRE ............................................................ 26

4.1 Narrabri North Intermodal Terminal ............................................................................................... 27

4.1.1 Auscott Warehouse & Distribution Centre ......................................................................... 29

4.1.2 Louis Dreyfus Commodities Australia - Terminal ................................................................ 33

4.2 Narrabri West Intermodal Terminal ................................................................................................ 35

4.2.1 Viterra Storage and Distribution Centre ............................................................................. 37

4.2.2 AGT Food (Australian Milling Group) Storage & Distribution Centre ................................. 39

4.2.3 Cargill Australia – Oil Seed Plant ......................................................................................... 43

4.2.4 Possible Future Users.......................................................................................................... 46

4.3 Wee Waa Intermodal Terminal ........................................................................................................ 47

4.3.1 Namoi Cotton Complex ....................................................................................................... 49

4.4 GrainCorp Bulk Grain Terminal, Narrabri ......................................................................................... 52

5. ROAD NETWORK TO SUPPORT THE INTERMODAL TERMINALS .................................. 53

5.1 Pinch Points on the Shire’s Road Network ...................................................................................... 53

5.2 Access to the Intermodal Terminal Sites ......................................................................................... 55

5.3 Capacity of the Shire’s Roads to Support Growth ........................................................................... 56

6. RAIL INFRASTRUCTURE TO SUPPORT THE INTERMODAL TERMINALS ....................... 62

6.1 Access to and the Reliability of the Rail Services ............................................................................. 62

6.2 The Capacity of the Lines and Trains – Load and Length Restrictions ............................................. 64

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7. ACTIONS & PROJECTS TO SUPPORT NARRABRI’S INTERMODAL TERMINALS .......... 66

7.1 Current Status .................................................................................................................................. 66

7.2 Issues & Challenges Faced ............................................................................................................... 66

7.3 Facilitating and Supporting Growth of the Intermodal Terminals ................................................... 68

8. REFERENCES ....................................................................................................................... 72

9. APPENDICES ....................................................................................................................... 73

Disclaimer

Information contained within this document has been provided by third parties. Narrabri Shire Council has accepted this information in good faith and is provided “as is” without express or implied warranty.

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EXECUTIVE SUMMARY Narrabri Shire Narrabri Shire is located in North Western NSW, approximately 520 kilometres north west of Sydney and 580 kilometres south west of Brisbane. It sits on the junction of the Newell and Kamilaroi Highways, both of which are major road freight routes, and on the North West rail line, with a branch line to Walgett via Wee Waa. Narrabri Shire is centrally located within one of the most productive agricultural areas in Australia, with large tracts of land within the Shire identified by the State Government as Strategic Agricultural Land with national significance. The land is used primarily for broad acre (irrigated and dry land) cropping with the Shire being a major producer of wheat and other grains, cotton (seed and lint), pulses and oilseeds. The Shire has the largest oilseed crushing plant in Australia, 7 cotton gins, a major cotton seed distributor and 3 agricultural research stations. Some of the largest multi-national agricultural companies in Australia, including Cargill, Olam (Queensland Cotton), Louis Dreyfus Commodities and Monsanto, have a presence in Narrabri. Narrabri Shire is located at the northern end of the Gunnedah Basin and has a large and growing coal sector. It also has an emerging coal seam gas industry, with the Pilliga gas field having the potential to supply up to 50% of NSW’s gas needs. Narrabri Shire is the main freight hub in the Northern Inland Region of NSW for containerised agricultural commodities, accounting for 33.2% (by weight) of containerised freight leaving the Region. It is also a significant hub for the transport of bulk agricultural commodities and coal, and in the future, potentially coal seam gas. Being 400+ kilometres from the Port of Newcastle and 540+ kilometres from Port Botany, rail transport of commodities is a highly viable option. Intermodal & Bulk Grain Terminals in Narrabri Shire Narrabri Shire has three intermodal container terminals – Narrabri North, Narrabri West and Wee Waa, as well as nine GrainCorp bulk grain terminals, including a primary terminal at Narrabri. Combined, the three Intermodal Terminals handle between 35,300 and 49,300 TEU’s per annum, depending on the ‘season’. These Intermodal Terminals service Narrabri Shire and surrounding LGAs, drawing produce from a 350 kilometre radius, which includes North West NSW and parts of South West Queensland and Central NSW. Each of the terminals is highly efficient and ‘fit for use’. There is also land available to enable each of the terminals to expand. The Terminals operate year round. Due to the diversity of crops produced in the Shire and surrounding region, harvesting extends from October through to end of August (wheat – October to December, pulses and other grains from December through to April and cotton from April through to August). The trend to on farm storage of grains and pulses is also helping to ‘spread’ demand. To maximise throughput, the three Terminals work co-operatively in the storage and transport of commodities, maximising use of storage space and ‘sharing’ trains. Outlook Due to changes in agricultural practices and crop varieties, agricultural production in the area serviced by the Narrabri Intermodal Terminals is forecast to increase by 1-2 million tonnes over the next decade.

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Coal production is also increasing, and if the Pilliga Gas project proceeds, Narrabri Shire will be a major producer and exporter of coal seam gas. Narrabri Shire is identified as a primary hub on the proposed Inland Rail Line, which will further consolidate and strengthen its position as a freight hub. Challenges & Issues While the Intermodal Terminal in Narrabri Shire are highly efficient and cost effective operations, their performance is impacted on by capacity constraints and inefficiencies in the rail freight network and port infrastructure, particularly at Port Botany. Issues with the rail and port infrastructure and operations creates logistical issues for the Terminal Operators, and increases transport, handling and storage costs. Within the Shire, the road network does not have the capacity to sustain the volume of heavy vehicle traffic being generated and to accommodate the expected growth. Approximately $92.8 million dollars is required to address issues on the local and regional road network to facilitate production and transport of commodities. As a small rural Council, Narrabri Shire does not have the funds to undertake this work.

There are a number of ‘pinch points’ on the main routes in Narrabri and Wee Waa, where there are restrictions on vehicle mass, requiring significant detours, double handling on trailers and commodities and transport delays. These ‘pinch points’ impact on operational efficiencies (across the whole supply chain) and add to storage, handling and transport costs. Comprehensive traffic studies are needed in Narrabri and Wee Waa to assess these issues and formulate solutions. Narrabri Shire Council does not have the funds to undertake these studies. Actions & Projects Required to Support Narrabri Shire’s Intermodal Terminals and Facilitate Growth Actions and projects required to facilitate and support the operation and growth on the Intermodal Terminals and the broader agricultural, transport and logistics sectors in Narrabri Shire and the North West Region of NSW are summarised below, with further explanation given in Chapter 7. Required Projects & Actions Road Infrastructure: Significant upgrades to the road network within Narrabri Shire to remove pinch points and ensure that the road network has the capacity to sustain growth in higher mass vehicles and provides safe, cost effective and efficient access to the Intermodal (container and bulk) terminals within the Shire.

Removal of ‘pinch points’, to increase transport efficiency, reduce travelling time and costs and increase safety, with the priority projects being: • Upgrading of the Newell Highway through the Narrabri

urban area. • Resolving road train access to the Narrabri GrainCorp

terminal during school zone times. • Removing the ‘pinch points’ in Wee Waa, including

improving access to the Wee Waa Intermodal Terminal and providing truck access through Wee Waa from the Kamilaroi Highway to Culgoora Road to increase access to both the Wee Waa and Narrabri West Intermodal Terminals and the Narrabri and Wee Waa GrainCorp bulk grain terminals.

Addressing access issues to each of the terminals: • Intersection upgrade - Kamilaroi Road entry – Narrabri

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Required Projects & Actions North Terminal.

• Sealing of Williams Drive (700m) – Narrabri West Terminal. • Access for high productivity vehicles to the Wee Waa

Terminal. Increasing the capacity and improving the condition of the local and regional road network in Narrabri Shire to sustain the current level of heavy vehicle use and facilitate growth in heavy vehicle traffic to service the expected increase in production (1-2 million tonnes of agricultural commodities) and the needs of the proposed Inland Rail Line. Eight (8) projects have been identified as ‘high priority’ with the cost of undertaking the work required (widening, strengthening, sealing, replacement of bridges and other load-bearing infrastructure and intersection and rail crossing upgrades) estimated to cost in the order of $100-$110 million. This is well beyond the capacity of Council to fund.

Rail Infrastructure: A rail network that provides efficient (no delays) and cost effective access to the Port of Newcastle, Port Botany and Port Kembla in NSW and interstate ports (via the Inland Rail), enables the use of longer and higher mass trains (3,000 tonnes minimum, 6,000 tonnes preferred), has sufficient rolling stock to accommodate growth, and provides flexibility in access to cater for seasonal fluctuations in demand.

Narrabri Shire Council and our Stakeholders fully support the implementation of the Infrastructure Program proposed in the NSW Freights and Ports Strategy (2012). The projects that will have the most significant benefits for the Narrabri Intermodal Terminals (and for other freight generating towns within the North West Region – Tamworth, Moree and Gunnedah) are: • Rail Freight Performance Regime. • North Sydney Freight Corridor – Stages 2 and 3. • Lower Hunter Freight Corridor. • Botany Rail Line Duplications. • Inland Rail Line. The North West Rail line from Turrawan through to Narrabri needs to be upgraded to enable high productivity trains to operate along the length of the North West Line, providing options for the Intermodal Terminals in Narrabri to ship to Ports in NSW, Brisbane and Melbourne. The Wee Waa Branch Line from Narrabri Junction to the Narrabri West Intermodal Spur Line (Viterra Line) will need to be upgraded to provide access to higher productivity trains. The Walgett Branch line from Narrabri to Wee Waa needs to be maintained to at least Class 3 standard and ‘pinch points’ along the line progressively rectified to increase speed and/or weight limits. Options for enabling the Wee Waa Intermodal Terminal to access higher productivity trains when introduced on the North West Line and Inland Rail Corridor need to be investigated.

Port Infrastructure: Significant improvements in the capacity and efficiency of Port

Narrabri Shire Council and stakeholders support the upgrading of Port infrastructure at Port Botany and the Port

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Required Projects & Actions Botany and/or expanding the Port of Newcastle to include a container terminal which is needed to remove ‘pinch points’, increase efficiency and reduce transport, handling and storage costs.

of Newcastle. The Intermodal Terminals in Narrabri Shire would benefit significantly from the development of a container wharf and container-loading facilities at the Port of Newcastle.

Access to Containers: The Intermodal Terminals need ready access to 20 foot, food standard shipping containers, and a relaxation of demurrage arrangements / costs for shipping containers.

As demand for containerisation increases, there may be opportunity to establish a container depot at Narrabri, both to service the demand from the Intermodal Terminal operators and to ‘distribute’ containers along the Inland Rail Corridor to other terminals and centres as required. Council is seeking funds to investigate the feasibility of developing a container depot.

Telecommunications: Affordable, high speed internet access.

Narrabri needs access to the National Broadband Network.

Power: Increased capacity in the electricity infrastructure to service the Narrabri West Intermodal Terminal.

Augmentation of the electricity infrastructure to service the Narrabri West Intermodal Terminal and facilitate expansion of existing activities and attraction of new investment.

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1. INTRODUCTION 1.1 Purpose This Report provides Narrabri Shire Council’s submission to the NSW Regional Intermodal Terminal Taskforce enquiry into Intermodal Terminals in Regional NSW. 1.2 Definition An Intermodal Terminal is defined as a ‘strategic location between a freight service user or exporter / importer and a destination (usually a sea port). It offers customers road and rail transport access and short term storage1.

Source: Regional Intermodal Terminal Taskforce – Presentation - Community Consultation and Stakeholder Engagement Meetings, February 2016.

1.3 Background to the Enquiry into Regional Intermodal Terminals In 2011 the NSW Government adopted NSW 2021 – A Plan for Our State, with the Government’s priorities being to: • Rebuild the NSW economy. • Return quality services. • Renovate infrastructure. • Strengthen the State’s local environment and communities. • Restore accountability to government. Leading on from this Plan, the NSW Government adopted the NSW Long Term Transport Master Plan, to provide an integrated strategy for transport of both passengers and freight in NSW. The Plan recognised that freight volumes in NSW will nearly double by 2031, and identified a need to increase the capacity and improve the performance of the freight network to facilitate and stimulate economic growth and productivity. In 2013, the State Government prepared and adopted the NSW Freight and Ports Strategy. The aim of the Strategy is to ‘provide a transport network that allows the efficient flow of goods to their market’. The core objectives are: • Delivery of a freight network that efficiently supports the projected growth of the NSW economy. • Balancing of freight needs with those of the broader community and the environment.

1 Regional Intermodal Terminal Taskforce – Presentation - Community Consultation and Stakeholder Engagement Meetings, February 2016.

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The Plan proposed three Strategic Action Programs (SAP): • SAP 1: Network Efficiency – to create an efficient transport network by identifying and removing

inefficiencies, pinch-points and barriers, and increasing connectivity within the transport network. • SAP 2: Network Capacity – to protect and expand strategic freight corridors and expand the network

(road, rail and port) capacity along supply chain, to support and sustain economic development. • SAP 3: Network Sustainability – to ensure the longer term sustainability of the freight network by

embedding freight requirements into planning schemes; managing congestion, noise and emission impacts; improving safety; and growing the transport and logistics workforce and skill levels.

One of the core actions of SAP2 is Action 2E – to foster intermodal terminal network development, with this incorporating development of intermodal terminals in metropolitan areas (Task 2E-1) and supporting the operation of regional intermodal terminals (Task 2E-2). Allied with this are actions to protect and enhance freight corridors connecting regional terminals and ports (Action 2A); developing and maintaining capacity for freight on the road (Action 2B) and rail (Action 2C) networks; formulating growth plans for Port Botany, Port Jackson, Port of Newcastle and Port Kembla (Action 2D); and coordinating regional infrastructure and services to support the freight network (Action 2F) and enhance capacity (Action 2G). As part of delivering on SAP 2 and Action 2E, Transport for NSW has established the ‘Regional Intermodal Terminal Taskforce’ to assess existing and planned intermodal terminals in Regional NSW. The objectives of the Taskforce2, are to: • Assess current and future requirements for the transhipment of cargo from road to rail. • Assess fitness for purpose, viability and sustainability of regional intermodal terminals. • Assess whether there is a need for more investment in terminal capacity, supporting road access as

well as the overall rail network. • Identify any risks or barriers to private investment. • Formulate strategies and actions to enhance cargo movement in regional NSW. • Advise how to avoid creating competitive distortions from the allocation of public funds to support

individual intermodal developments. 1.4 Intermodal Terminals in Narrabri Shire Narrabri Shire, located in North West NSW approximately 520 kilometres by road north-west of Sydney, is a major transport and freight hub, servicing both the agricultural sector in North West NSW and parts of Southern Queensland and the coal mining industry in the northern part of the Gunnedah Basin. Narrabri Shire sits at the intersection of two significant road freight corridors – the Newell Highway and Kamilaroi Highway, and on the North West Rail Line and Walgett Branch Line. Narrabri Shire has three intermodal terminals, two located in Narrabri and one in Wee Waa (40 km to the west of Narrabri). These terminals store and transport agricultural commodities (in containers and bulk) from Narrabri Shire, primarily to the Port of Botany in Sydney (containers) and to the Port of Newcastle (bulk). Depending on the season, these terminals combined, transport between 35,500 and 49,300 TEU’s per annum. 2 Regional Intermodal Terminal Taskforce – Presentation - Community Consultation and Stakeholder Engagement Meetings, February 2016.

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Table 1.1 Intermodal Terminals in Narrabri Shire Terminal Rail Siding

Operator Companies

Serviced Commodities TEUs through the

Terminal Narrabri North

Auscott Auscott Cotton Lint (primary) Grain & Pulses (secondary)

5,000 – 6,000 pa

Louis Dreyfus

Bulk transport – grains 4,000 pa

Narrabri West

Viterra (Glencore) Viterra Grains, Cotton, Pulses 7,000 – 11,000 AGT Foods Pulses (primary)

Grains (secondary) 4,000 – 7,000

Cargill Oil Seed – Cotton Seed and Sunflower Oil + proposal to extract canola oil. Oil Seed Meal for Stock Feed

1,500 – 1,800 oil 8,000 – 10,000 protein meal

Wee Waa Namoi Cotton – Louis Dreyfus Joint Venture

Namoi Cotton

Cotton Lint (primary) Packing of Grain & Pulses (secondary)

6,000 – 9,500 pa

Total 35,500 – 49,300 pa Within the Shire, there are also nine Bulk Grain Receival sites operated by GrainCorp, with grain primarily transported by rail, in bulk to ports in Newcastle and Port Kembla. The Narrabri Receival Site is classified as a ‘Primary’ site in GrainCorp’s Export Logistics Network. 1.5 Stakeholder Consultation In preparing this Submission, Narrabri Shire Council sought information and input from the following key stakeholders: • Vittera (Glencore) – operators of the Narrabri West Intermodal Terminal. • Auscott – operators of the Narrabri North Intermodal Terminal. • Namoi Cotton – operators of the Wee Waa Intermodal Terminal in a joint venture with Louis

Dreyfus. • GrainCorp – operators of nine bulk grain receival sites in Narrabri Shire. • AGT Foods (Australian Milling Group). • Cargill Australia. • Louis Dreyfus Commodities. • Cotton Seed Distributors. • Australian Recycled Plastics. • Namoi Logistics (Transport Company). • Anderson Haulage (Transport Company). • Agriex Australian Pty Ltd. • Regional Development Australia – New England – North West Region. • Local Councils serviced by the Intermodal Terminals in Narrabri Shire – Walgett, Moree Plains and

Gunnedah. Narrabri Council also drew information from a variety of reports and strategies relating to agriculture, mining, transport infrastructure and freight, relevant to the production and transport of commodities from Narrabri Shire. (see Reference List).

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1.6 Terminology In this Submission: • Grain includes wheat, barley, oats, triticale, sorghum, maize and millets. • Oil seeds includes canola, sunflowers, monola and safflower. • Pulses include chickpeas, faba beans, lupins, mung beans, field peas, soybeans, vetch and lentils.

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2. NARRABRI SHIRE 2.1 Overview Narrabri Shire is situated within the Namoi River Valley in North Western NSW, approximately 520 kilometres north west of Sydney, 580 kilometres south west of Brisbane and approximately 225 kilometres south of the NSW - Queensland border. The Shire sits at the intersection of the Newell and Kamilaroi Highways and is located on the North West Rail Line, with a branch line to Walgett via Wee Waa. Narrabri is identified as a freight terminal on the proposed Inland (Brisbane to Melbourne) Rail line. The Shire covers an area of 13,000 square kilometres extending west from the Nandewar Range. This Range marks the western edge of the Great Dividing Range and the eastern edge of the fertile inland plains. The Shire is bounded by Moree Plains Shire to the north, Gwydir Shire to the east, Warrumbungle Shire to south and Coonamble and Walgett Shires to the west. Narrabri Shire has a strong agricultural base, with cotton, grain, pulses and oil seed cropping, wool and fat lamb production and cattle being the primary activities. Some of the largest multi-national agricultural companies in Australia, including Cargill, Olam (Queensland Cotton), Louis Dreyfus Commodities and Monsanto have a presence in Narrabri. Cotton production is concentrated along the Namoi River floodplain from Boggabri through to Wee Waa, with Wee Waa promoted as the ‘Cotton Capital of Australia’. There are seven cotton gins3, a large cotton seed processing facility (Cargill), and a large cotton seed distributor located in the Shire. Grain and pulse production is concentrated to the north and west of Narrabri. To the north, the Edgeroi-Bellata area lies within the ‘Golden Triangle’ which produces some of the best ‘prime hard wheat’ (durum) in Australia. Narrabri Shire has three agricultural research facilities – the Australian Cotton Research Institute, Monsanto Narrabri Research Centre and the recently expanded IA Watson Grains Research Centre (University of Sydney). Narrabri Shire is located at the northern end of the Gunnedah Basin. There are four coal mines in the Shire – two open cut mines in the Boggabri area, plus an open cut mine at Maules Creek to the south east of Narrabri and a large underground mine at Turrawan, between Boggabri and Narrabri. The Shire also has a growing coal seam gas (CSG) industry with the Pilliga Forest being the focal point for gas exploration. According to Santos, the CSG reserves in the Pilliga Forest have the potential to supply 50 % of NSW’s gas needs. Narrabri Shire has an estimated population of 13,759 people. The town of Narrabri, with a district population of around 7,390 people, is a subregional centre, with its trade area extending into the surrounding Shires. Narrabri has a comprehensive services sector offering a diverse range of professional, business and personal services. Narrabri is a major transport hub and service centre for agricultural produce, with the town drawing commodities from a 350 kilometre radius, with Narrabri’s catchment area including surrounding Shires and areas of Southern Queensland. The town has two intermodal terminals (Narrabri North and Narrabri West), a major GrainCorp receival and storage site, a number of trucking and freight forwarding companies and a range of transport and logistical service providers. The transport and 3 Cotton Gins in Narrabri Shire: Boggabri, Merah North and Yarraman (2) operated by Namoi Cotton; Narrabri (2) operated by Auscott; and Wee Waa operated by Queensland Cotton.

Narrabri Shire

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logistics sector is poised to grow substantially when the proposed Melbourne to Brisbane inland rail line is developed. Wee Waa and Boggabri are the other main towns in the Shire. Located 40 kilometres west of Narrabri, the Wee Waa district is now one of the largest cotton producing areas in Australia, with 4 cotton gins, a large cotton seed distributor, and an intermodal terminal with large-scale storage facilities. The District is also a significant grain, pulse, oil seed and legume producing area. The Wee Waa intermodal terminal services the cotton, grain, pulse and oil seed sectors. Boggabri, on the Kamilaroi Highway, is located on the south eastern corner of the Shire approximately 60km south of Narrabri and 40km north of Gunnedah. The town is a local service centre for both agricultural production and coal mining. The Boggabri district has a grain storage facilities, a cotton gin and a coal loader. The villages of Edgeroi and Bellata, located on the Newell Highway and North West Rail Line, 25km and 48km respectively north of Narrabri, lie within Golden Durum Triangle’ and produce some of the best ‘prime hard wheat’ in Australia. Both towns have large GrainCorp silos, with bulk rail transport to ports in Newcastle and Port Kembla. 2.2 Access & Transport Infrastructure Narrabri Shire is located on the intersection of the Newell and Kamilaroi Highways and is traversed by a number of regional feeder roads. It is also serviced by the North West Rail Line (freight and passenger services) and the Walgett Branch line (freight line via Wee Waa). Narrabri has an Airport, which until 2014 had RPT services. The Airport is currently used for general aviation (charter, air freight, agricultural and recreational use), and is being upgraded to facilitate the recommencement of RPT services. Road The Newell Highway (SH 17) is a National Highway and is the main route between Melbourne and Brisbane / North Queensland, connecting Narrabri Shire to Queensland and Victorian domestic markets and to Queensland Ports and the Port of Melbourne. The Newell is a major intra and interstate route for heavy traffic, with the volume of truck traffic (30-50% of total traffic depending on location) on the route growing strongly. Outside of the Narrabri urban area, heavy vehicle movements account for around 44% of vehicle movements on the Newell Highway. The Newell Highway is an integral component of both the National4 and NSW5 freight networks with freight volumes on the Highway forecast to increase by 79% between Narrabri and Moree to the north, and 84% between Narrabri and Coonabarabran to the south, by 20316. The other significant corridor in the Shire is the Kamilaroi Highway (SH29). This route connects the New England Highway at Willow Tree to the Newell Highway at Narrabri (via Quirindi, Gunnedah and Boggabri) and then continues onto Bourke through Walgett and Brewarrina. The Kamilaroi Highway to the east of Narrabri services both the mining and agricultural sectors, while the Highway to the west of Narrabri is a major corridor for the transport of agricultural commodities. The Kamilaroi Highway is part of the link between Narrabri Shire and the Port of Newcastle, Port Jackson (Sydney Harbour), Port Botany and Port Kembla. The distance, by road, from Narrabri and Wee Waa to key ports is given in Table 2.1.

4 Department of Infrastructure and Transport (2012) National Land Freight Strategy - A Place for Freight. 5 Transport for NSW (2013) NSW Freights and Ports Strategy. 6 Transport for NSW (2015) Newell Highway Corridor Strategy 2015.

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Table 2.1 Distance by Road from Narrabri to Key Sea Ports. Port Approximate Distance by Road

From Narrabri From Wee Waa Port of Newcastle 400km 440km Port Botany 540km 580km Port Kembla 640km 680km Port of Brisbane 600km 640km Within the Shire, significant regional and local roads that service the agricultural and mining sectors and the intermodal terminals are listed below. Further information on the Road Network is provided in Chapter 5. Regional Roads • Pilliga Road (MR127). • Cypress Way (MR329). • Killarney Gap Road (MR133). • Boggabri Manilla Road (MR357). • Grain Valley Road (MR7709). Local Collector Roads • Bald Hill Road (SR9). • Springs Plains Road (SR4). • Harparary Road (SR11). • Millie Road (SR1). • Culgoora Road (SR30). • Middle Route Road (SR47). • Doreen Lane (SR46). • Nowley Road (SR45). • Kaputar Road (SR05). • Gwabegar Road (SR39). • Homestead Road (SR55). • Couradda Road (SR07).

There are four significant trucking companies based in Narrabri Shire: • Gordon Roadways – 40 + trucks. • Namoi Logistics – 20 trucks plus up to 100 contractors (owner drivers) during the cotton season. • Anderson Haulage – 6 trucks. • Woods Haulage – 4 trucks. There are also 6 operators who each own 1-2 trucks. Road Freight companies with depots and operations in Narrabri include Toll, Statewide Freight, Lattak Freight and Bohena Freight. Narrabri also has two bulk fuel depots, Woodham Petroleum in Narrabri South a new $1+ million facility) and Lowes in Narrabri.

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Rail Narrabri Shire is serviced by the North West Rail line and the Walgett Branch line, with the township of Narrabri sitting at the junction of the two lines. The North West Rail line, extends from the Main North Line at Werris Creek, through Gunnedah, Narrabri to Moree. The Line caters for both passenger and freight services, with freight being the main user of the line. The Line is leased to and operated by the Australian Rail Track Corporation (ARTC). The section of line from Turrawan (North Narrabri Coal Mine) to Werris Creek is part of the Hunter Valley Coal Chain Network7 and primarily carries coal. This section has been significantly upgraded to permit the use of 30 tonne axle load operations which allow the use of 120 tonne wagons. North of Turrawan, the track is rated for 25 tonne axle loads (100 tonne wagons). This section of the track primarily carries agricultural commodities which are transported both in bulk and containerised. The maximum approved train length within the Gunnedah Basin is 1,329 metres. GrainCorp in Narrabri and the Auscott Intermodal Terminal at North Narrabri have spur lines off the North West Rail Line. The North West line also services the GrainCorp receival Sites at Boggabri, Edgeroi and Bellata in Narrabri Shire as well as sites in adjoining Shires. The Walgett Branch Line is part of the Country Rail Network (CRN). It is operated by John Holland. The Line runs from the North West line at Narrabri Junction, west to Walgett via Wee Waa and Burren Junction. The line splits at Burren Junction, with the main line continuing west to Walgett and a branch line northwest to the grain silos at Merrywinebone. The line services Narrabri West and Wee Waa Intermodal Terminals and the GrainCorp Receival Sites at Wee Waa and Merah North in Narrabri Shire and Walgett, Cryon, Burren Junction and Merrywinebone in Walgett Shire.

7 ARTC (2015) Hunter Valley Corridor Capacity Strategy 2015-2024.

Source: Transport for NSW - NSW Rail Network

Bulk Grain Train servicing the Louis Dreyfus Bulk Grain Terminal, Narrabri

Port Kembla

Port Botany

Port of Newcastle

Figure 2.2 Rail Network

ARTC controlled CRN Operational CRN Non Operational

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The proposed Inland Rail line passes through Narrabri Shire, with Narrabri identified as the primary freight hub on the route. Access to the line will also be available at Gwabegar in the south west of the Shire. Further information on the rail network is provided in Chapter 6.

Air Narrabri Airport is located approximately 4.5 kilometres east of the town. Until 2014 Narrabri had RPT passenger services which operated between Narrabri and Sydney and Narrabri and Brisbane. The Airport is currently used for charter flights (primarily generated by the mining sector), medical services, general aviation, air freight, agricultural services and recreational flying. The Toll Group operates airfreight services into Narrabri, for mail and smaller parcels. Narrabri Shire Council is in the process of upgrading and expanding the Airport. $10.5 million has been spent on upgrading the Airport infrastructure including lengthening and strengthening the runway, expanding the existing apron and installing a Precision Approach Path Indicator System. The next stage, which is dependent on securing funds, includes the development of a new passenger terminal and improving car parking. The upgrade is designed to facilitate the recommencement of Regular Passenger Transport (RPT) services. 2.3 Economic Activities8 Narrabri Shire has a diverse economic base, with the main activities being coal mining and agriculture. In 2011/ 12, the Shire had a Gross Regional Product (GRP) of $939.3 million. In 2011/12 the Shire’s GRP grew by 4.7%, almost double the State average. The mining and agricultural sectors are the largest contributors to the Shire’s economy, accounting for $224.9 million and $185.5 million, respectively. The Transport and Warehousing sector is the fifth largest contributor to the local economy, contributing $38.3 million. The agricultural sector is the largest employer in the Shire, employing 1,124 people (2011 Census) and accounting for 21.6% of jobs within the Shire. The mining sector ranked 5th employing 339 people and providing 6.5% of jobs, with the transport and warehousing sector ranking 7th, employing 285 people and providing 5.5% of jobs. Agricultural Production Narrabri Shire is a significant agricultural producer. In 2010/11 the total gross value of agricultural production was $395.6million, with crops accounting for 91.9% ($362.7million) and livestock (8.1%) of the value. In terms of value of production, cotton was the single largest agricultural commodity ($223.5 million) followed by wheat ($99.5 million). Other grains generated $11.8 million, pulses $26.6 million and oil seeds (excluding cotton seed) $4.1 million. Narrabri Shire incorporates some of the most productive agricultural land in NSW and is part of one of the highest yielding grain regions in NSW (Figure 2.3). The highly fertile black soil plains were classified

8 Statistics in this section are taken from the Narrabri Shire Economic Profile produced by Narrabri Shire Council.

Figure 2.3 Grain Production in NSW (2009)

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in the New England North West Strategic Regional Land Use Plan9 as ‘Strategic Agricultural Land’ of State and National significance (Figure 2.4). Agricultural production in the Shire has been increasing and diversifying, with this due primarily to changes in farming practices and the development of high yielding, more resistant and water efficient crop varieties. There has been significant growth in dry land cotton production as well as the introduction of pulse and oil seed crops as part of changes in farming practices. Further west, in Walgett Shire, land that has traditionally been used for sheep grazing is being increasingly converted to broad acre cropping. A lot of the produce from the eastern half of Walgett Shire is now stored, packed and shipped via the bulk and containerised intermodal terminals in Narrabri Shire. Figure 2.3 Grain Production in NSW (2009).

9 NSW Department of Planning and Infrastructure (2012) New England North West Strategic Regional Land Use Plan.

Narrabri Shire is one of the most productive grain producing areas in NSW. The Shire is also well positioned within the North West Region to ‘receive’ grain from surrounding LGAs and transport to the Port of Newcastle (bulk) and to Port Botany (containers).

Source: Commonwealth of Australia (2009) NSW Grain Freight Review

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Figure 2.4 Strategic Agricultural Land – North Western NSW.

A number of significant global and national agricultural companies have invested in Narrabri, with these companies including: • Cargill – operates the largest oilseed crushing plant in Australia in Narrabri, plus produces stock feed

and is a buyer and marketer of grains, pulses and oilseeds. • Viterra which is part of the Glencore Group – major storage and distribution centre. • Auscott – owns cotton farms, two cotton gins and warehouse and distribution centre in Narrabri

North. • Graincorp – operates 9 grain receival, storage and bulk rail facilities within the Shire. • Louis Dreyfus – bulk grain handling terminal at Narrabri North Intermodal and is a JV partner in the

Namoi Cotton Wee Waa Intermodal terminal. • Namoi Cotton – operates 4 cotton gins within the Shire plus the Namoi Cotton Wee Waa Intermodal

terminal. • AGT Foods (Australian Milling Group) – pulses and grain merchant, storage and shipping agent. • Agriex Australia. • Queensland Cotton (OLAM) – operates the Wee Waa Cotton Gin. • Australian Wheat Board. • Monsanto. • Australian Cotton Seed Distributors. • Namoi Logistics – provides road transport services for the cotton industry, Australia Wide.

Source: NSW Department of Planning and Infrastructure (2012) New England North West Strategic Regional Land Use Plan

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Coal Production Narrabri Shire incorporates the northern end of the Gunnedah Basin. There are six coal mines operating within the Shire and just across the border in Gunnedah Shire - Narrabri North Underground Mine, Maules Creek, Boggabri Coal, Tarrawonga, Vickery and Rocglen. The Rocglen Mine will close in 2017, with the other mines having estimated lives of 20 – 30 years. There are also proposals to develop additional mines at Vickery South and Narrabri South in the northern part of the Gunnedah Basin, and at Breeza (Shenhua and BHP) in the southern part of the basin. Coal produced in the area is transported by rail (North West line) to the Port of Newcastle for export. Current production is in the order of 23 million tonnes per annum, with this forecast to increase to over 30 million tonnes per annum when the Maules Creek mine becomes fully operational in 2018.

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3. FREIGHT IN NARRABI SHIRE & SURROUNDING REGION Narrabri Shire is recognised in the State and Regional Freight and Transport Strategies as a regional transport and logistics ‘hub’. Freight infrastructure in the Shire services the whole of the North West Region as well as parts of Central NSW and Southern Queensland. The Shire is a significant ‘exporter’ of agricultural commodities and coal. Incoming freight movements are relatively low and include general freight (eg supermarket and retail supplies, fuel) and mining and agricultural equipment, fertiliser and chemicals. The NSW Department of Primary Industry Farm Enterprise Budget (2011/12) estimated that Narrabri Shire’s freight demands from broadacre cropping were 655,315 tonnes grown in and leaving the Shire, with 47,887 tonnes (primarily agricultural equipment, fertiliser and agricultural chemicals) coming into the Shire. Based on the Northern Inland Region of NSW – Freight Study (2012), Regional Development Australia estimated that in 2010/11 Narrabri Shire produced and exported 589,000 tonnes of grains, oilseeds, legumes and cotton seed and lint, with the Shire also receiving and shipping in the order of 2.333 million tonnes of grains, oil seed and legumes and 971,000 tonnes of cotton seed and lint from surrounding LGAs. Table 3.1 Agricultural Commodities coming into Narrabri Shire from the surrounding region, for storage,

packaging and transport (2010/11).

LGA / Region Grain, Oil Seed, Legumes Cotton Seed and Lint Walgett 668,000 156,000 Moree 1,009,000 697,000 Gwydir 125,000 13,000 Gunnedah 236,000 105,000 Central NSW 295,000

Total 2,333,000 971,000 Source: Regional Development Australia – Northern Inland The Northern NSW Containerised Cargo Demand Study (2015) found that Narrabri Shire was the largest exporter of containerised freight in the New England – North West Region accounting for 33.2% (by weight) of freight leaving the Region. Tamworth ranked second with 29.4%. The Study estimated that in 2011/12, there were 427 kilotonnes of containerised freight leaving Narrabri Shire, with 107 kilotonnes of freight coming into the Shire. 3.1 Commodity & Freight Movement Patterns – Narrabri Shire The movement patterns for commodities produced in Narrabri Shire and surrounding region area summarised below and illustrated in Figure 3.1. Grain & Pulses For grain and pulses, the primary movements are from the farm, direct to a bulk grain or containerised intermodal terminals or alternative to on and/or off farm storage facilities then to the intermodal terminal for packing and shipment. All transport between the farm and the terminal is by truck. The trucks are using a mix of local, regional and State Roads to access the storage facilities and terminals. 90% of grains are transported in bulk, with 10% being containerised. The proportion of grain being containerised is increasing.

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Narrabri Shire draws its grain primarily from the area to the north and west of Narrabri, including the northern and north western parts of Narrabri Shire, Walgett Shire and parts of Moree Plains Shire. Some grain also comes from the south eastern area of the Shire (Boggabri – Baan Baa – Maules Creek area) and parts of Warrumbungle Shire. The closure of the GrainCorp Baan Baa Receival site is resulting in more grain coming back into Narrabri via the Kamilaroi Highway.

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Figure 3.1 Estimated Agricultural Commodity Freight Volumes and Flows – 2010/11 – Narrabri and Surrounding LGAs. Sourced Regional Development Australia – Northern Inland.

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Pulses are drawn from a wider area, extending for approximately 350 kilometres radius of Narrabri. This includes the North West Region extending into southern Queensland and Central NSW.

90% of pulses are containerised with 10% shipped in bulk.

Cotton & Cotton Seed For cotton, the picked cotton is usually taken to the nearest Gin for processing. Once processed almost all cotton lint (in bales) is taken from the Gin to one of the three intermodal terminals in Narrabri Shire where it is containerised in 40 foot containers and shipped by rail to Port Botany. Only a very small proportion of the cotton is trucked directly from the Gin to the Port. The cotton seed produced as a by-product of ginning has a number of destinations: • Returned to the grower by truck to be used for seed cotton or stock feed. • Transported by truck to the Cargill Oilseed Plant at Narrabri for crushing, with the oilseed either

going directly to the Plant or going to the Corglen storage facility located in close proximity to the Narrabri West intermodal terminal. From Cargill, the oil is transported by road tanker to refineries at Newcastle and Melbourne. The seed meal is used for stock feed, with this primarily sent, by truck, to feed lots in the North West, New England and Central NSW Region.

• Transported to one of the intermodal terminals (generally Namoi Cotton) for containerisation and

export. Other Oilseeds After cotton seed, the primary oilseed grown and crushed in Narrabri (Cargill) is sunflower. The seed is often stripped and dried and stored on site and then trucked from the farms to the Cargill Oilseed Plant. Sunflower seeds come from a relatively wide area, extending from Liverpool Plains Shire into Southern Queensland. Sunflowers are a minor crop. Cargill is establishing a Canola Crushing Plant. Initially the canola will be drawn from areas to the east of Narrabri Shire and from Central NSW. The seed will be trucked with most of the truck movements within Narrabri Shire concentrated along the Newell (from Central NSW) and Kamilaroi (from the east) Highways. Livestock Livestock accounts for around 5-6% of agricultural freight movements in Narrabri Shire. All livestock is transported by truck to or from saleyards in Narrabri and surrounding shires, or direct to Feedlots or abattoirs. There is an increasing volume of sales being conducted on-line, with livestock shipped from the farm direct to the end destination. Coal Coal produced in Narrabri Shire is transported by truck or conveyor to coal loading facilities at Turrawan, Boggabri and Gunnedah, and shipped by rail to the Port of Newcastle. Incoming mining equipment and mine-related freight is brought in by truck from Sydney, the Hunter Valley and to a lesser extent Queensland. The Kamilaroi Highway is the main route from Sydney, with the Newell Highway being the main route from Queensland.

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Plastics Australian Recycled Plastics in Narrabri trucks in plastic bottles and containers from recycling plants in Sydney, with the output (recycled plastic flakes) being transported to Melbourne by truck. Incoming Freight Most of the agricultural inputs and general freight coming into Narrabri Shire arrives by truck, via the Kamilaroi and/or Newell Highways. A small volume of parcels arrive by air through Narrabri Airport. Very occasionally, some goods (eg pipes) are transported in containers by rail. 3.2 Suitability of Narrabri Shire for Intermodal Terminals Narrabri Shire has a number of significant advantages which render it a prime location for the operation of intermodal terminals. These advantages include: • Convergence of road and rail infrastructure – with Narrabri sitting at the intersection of the Newell

and Kamilaroi Highways and on the North West Rail line and the Walgett Branch line. The routing of the Inland Rail through Narrabri Shire, with Narrabri nominated as a freight terminal consolidates and strengthens this advantage.

• Accessibility to markets and ports – through the Newell and Kamilaroi Highways, Narrabri has ready

access to the Brisbane, Melbourne and Sydney markets, with Narrabri located mid-way between Sydney and Brisbane. The rail network provides access to the Port of Newcastle, Port Botany and Port Kembla. The proposed Inland Rail Line will provide access to the Ports of Brisbane and Melbourne, providing alternatives to Newcastle and Sydney.

• Distance from the Ports – Narrabri is 400km from the Port of Newcastle and 540km from Port

Botany. As such it is far more cost effective to transport most agricultural commodities to Port by train, rather than by truck. Narrabri Shire is geographically well positioned in NSW to attract and gather agricultural product from north west NSW and southern Queensland and to channel that product to export ports in Newcastle and Port Botany, thereby contributing to State Government revenues.

• Narrabri marks the southern limit for High Mass Vehicles on the Newell Highway. It also marks the

eastern boundary of the unrestricted area for road trains (ie road trains can operate on most roads to the west of the Newell Highway).

• Availability of rail infrastructure including the North West Rail Line, Walgett Branch Line, the Narrabri

West goods yard and siding, and the passing loops just north of the Narrabri junction. The significant upgrading of the North West Rail line by ARTC to service the coal industry and the proposed upgrading of the line between Narrabri and Moree as part of the Inland Rail, should enable the introduction of longer and ‘heavier’ trains to transport agricultural commodities (medium term). The increase in capacity should increase efficiency and reduce transport costs, further increasing Narrabri’s competitiveness.

• Availability of large tracts of zoned industrial land with frontage to, and potential access from, the

rail corridors. The land is cleared and flat, rendering it ideal for bulk storage facilities. The land is also competitively priced.

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• Access to a variety of commodities – most of the broad acre farms within Narrabri and the surrounding area practice crop rotation and plant a variety of crops to spread risk. There are three harvest seasons – grain, cotton and pulses, which significantly increases the utilisation of the terminals and spreads the risk.

• Many of the farming properties within the Region are owned by large agricultural companies who

are investing in research and development, land management and technology to improve productivity and profitability.

• Changes in farming practices and the introduction of new crop varieties that are high yielding,

disease resistant and water efficient, has and is continuing to increase productivity (yields). More land is also being brought into production, with broad acre cropping replacing sheep grazing. Over the next decade, production in Narrabri Shire and surrounding areas, is forecast to grow by 1-2 million tonnes per annum.

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4. INTERMODAL TERMINALS IN NARRABRI SHIRE Narrabri Shire has three intermodal terminals, two of which are located in Narrabri and one in Wee Waa. These terminals store and transport agricultural commodities (in containers and bulk) from Narrabri Shire, primarily to Port Botany in Sydney (containerised freight) and to the Port of Newcastle (bulk). Depending on the season, the three terminals combined, transport between 35,500 and 49,300 TEU’s per annum. Table 4.1 Intermodal Terminals in Narrabri Shire.

Terminal Rail Siding Operator

Companies Serviced

Commodities TEUs through the Terminal

Narrabri North

Auscott Auscott Cotton Lint (primary) Grain & Pulses (secondary)

5,000 – 6,000 pa

Louis Dreyfus

Bulk transport – grains 4,000 pa

Narrabri West

Viterra (Glencore) Viterra Grains, Cotton, Pulses 7,000 – 11,000 AGT Foods Pulses (primary)

Grains (secondary) 4,000 – 7,000

Cargill Oil Seed – Cotton Seed and Sunflower Oil + proposal to extract canola oil Oil Seed Meal for Stock Feed

1,500 – 1,800 oil 8,000 – 10,000 protein meal

Wee Waa Namoi Cotton – Louis Dreyfus Joint Venture

Namoi Cotton

Cotton Lint (primary) Packing of Grain & Pulses (secondary)

6,000 – 9,500 pa

Total 35,500 – 49,300 pa

Within the Shire, there are also 9 Bulk Grain receival and storage sites operated by GrainCorp, with grain primarily transported by rail, in bulk to ports in Newcastle and Port Kembla. The Narrabri Receival Site is classified as a ‘Primary’ site in GrainCorp’s Export Logistics Network. There are a number of issues with the operation of GrainCorp’s Narrabri terminal which impact on the overall efficiency of the supply chain, including the efficiency of the Narrabri North and Narrabri West Intermodal Terminals. These issues are discussed in Sections 4.4 and 5.1.

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Figure 4.1 Location of Intermodal Terminals in the Township of Narrabri.

4.1 Narrabri North Intermodal Terminal The Narrabri North Intermodal Terminal is located on the northern edge of the township of Narrabri, with truck access from both the Newell and Kamilaroi Highways. The Terminal was established in 1994 by Auscott for the storage and distribution of cotton lint. A spur line (rail siding) off the North West Rail line was constructed in 1996. The Terminal currently services: • Auscott – cotton and grain storage and distribution. • Louis Dreyfus - bulk grain terminal. The combined operations are currently generating 9,000 – 10,000 TEUs per annum. Both operations have capacity to increase throughput, with Louis Dreyfus having the capacity for an additional 4,000 TEUs per annum, with Auscott having the capacity to increase its grain and pulse operation and increase its storage capacity through the development of additional sheds. The Terminal is part of the Narrabri North industrial area. There is vacant industrial land abutting the land held by Auscott and Louis Dreyfus. The land to the west of Auscott is Crown Land that is currently occupied by the Newtown Park Motorsports Complex (motorcross and speedway). The land to the north of the Terminal is agricultural and used for broadacre cropping. This land has frontage to the rail spur line. If required for future expansion of the Terminal, this land could be rezoned for industrial use.

GrainCorp

Narrabri West

Narrabri North

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Figure 4.2 Narrabri North Intermodal Terminal.

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4.1.1 Auscott Warehouse & Distribution Centre The Auscott Site has an area of 26.35 hectares. Access is from the Kamilaroi Highway, with Auscott exploring options to secure access from the Newell Highway. The Operator - Auscott Auscott is a major cotton producer operating out of both North West NSW (Narrabri and Moree Plains Shires) and Central NSW. The company is vertically integrated with its facilities and services within North West NSW including: • Auscott Farms – producing cotton, cereal grains and sorghum.

• Cotton Ginning – 3 Gins, two of which are located in Narrabri Shire and one in Moree Plains Shire.

The Gins process cotton from both Auscott and other growers within the surrounding region. The Narrabri Gins produce up to 330,000 bales of cotton lint (75,900 tonnes – wrapped), plus cotton seed. Cotton lint produced for Auscott is trucked to Auscott’s Narrabri Warehouse and Distribution Centre.

The distribution of cotton lint processed for non-Auscott growers is determined by the grower or the purchasing merchant. It is generally trucked to storage facilities at Auscott (Narrabri North Intermodal), Viterra (Narrabri West Intermodal) or Namoi Cotton (Wee Waa Intermodal) terminal for containerisation and rail transport to port. Some merchants occasionally truck cotton lint from the Auscott Gin direct to ports in Sydney, Melbourne and Brisbane. Cotton seed, may be returned to farmers for seed planting for the next crop, crushed for oil or used to produce stock feed. Most of the Auscott cotton seed is sent to the Cargill oil crushing plant at Narrabri. For non-Auscott cotton seed, the use and destination (domestic or export) of cotton seed is dependent on demand and price.

• Narrabri – Warehouse and Distribution Centre – intermodal terminal. Terminal Facilities The Warehouse and Distribution Centre incorporates: • 8 large storage sheds which are humidified for cotton storage, plus an undercover storage area

which is used in peak times. Auscott has space on site and approval for two additional storage sheds.

• Container packing and loading facilities. • A weighbridge for B-double and road train weighing. • Office and Equipment sheds. • Spur line – 3.6 kilometres in length, with a double length of track in the loading area. The trains are

shunted off the main North West Rail Line. The loading area can accommodate up to 32 wagons on a single track. Trains over 32 wagons are split.

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Figure 4.3 The Auscott Terminal.

Potential to provide 2 additional storage sheds

Terminal Entry, Kamilaroi Highway

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Capacity & Operations The Auscott Warehouse and Distribution Centre have 7 full-time employees, plus up to 10 additional employees during the peak cotton and grain harvest seasons. The Centre stores and containerises Auscott cotton and grain and also provides contract storage of cotton and other commodities for both growers and merchants. From the warehouse and distribution centre, cotton is distributed to Sydney, Brisbane and Melbourne for export. 99% of Auscott’s cotton production is transported by rail, primarily to Port Botany. Auscott exports to 9 countries within the asia-pacific region. The Centre has the capacity to store 130,000 bales of cotton (125,000 in sheds and 5,000 covered area) or 65,000 tonnes of grain (all in storage sheds). Cotton Throughput ranges from 230,000 to 280,000 bales of cotton per annum (52,900 – 64,400 tonnes) depending on the season. Cotton is shipped in 40 foot containers, with 114 bales per container. The number of containers (40’) ranges from around 2,000 to 2,500 containers per annum. This equates to 4,000 – 5,000 TEU’s per annum. Depending on the season, cotton is stored at and shipped from the Centre for 8-10 months of the year. From May to August, the terminal handles 12 to 15 cotton trains per month. Outside of this time, Auscott averages 1 cotton train per month. It shares trains with AGT Foods which is located at the Narrabri West Intermodal Terminal – often mixing one 40ft container of cotton bales from Auscott, with a 20ft grain or pulse container from AGT. Auscott has access to storage facilities in Sydney and Brisbane, and during peak periods stores cotton at these facilities. This cotton is a ‘buffer’ which enables Auscott to respond to changes in shipping vessel schedules, and to meet their allocated ‘windows’ if the train from Narrabri is delayed. Grain Auscott stores, containerises and transports grain and pulses, both for its own farms and for other growers and merchants including AGT Foods. Auscott acts as the receival centre for grain and pulses arriving in Narrabri from the north and north-west in AB and B-Triple vehicles and going to localities in Narrabri South and West (AGT Foods and Viterra). These high mass vehicles are not permitted to travel through Narrabri. The grain and pulses are stored until needed and then put onto smaller trucks for transport to AGT and Viterra at the Narrabri West intermodal terminal. Grain is stored from the start of the harvest season (around November) through to the start of the cotton harvest (February – March). Most of the grain is transported out of the terminal by truck, with a significant proportion going to AGT Foods for containerisation and export. Around 25,000 tonnes per annum is containerised on the Auscott site and shipped by rail. Grain is shipped in 20 foot containers, with each container holding around 25 tonnes of grain. This equates to around 1,000 TEUs of grain per annum. TEU’s In total, the Auscott intermodal terminal ships by rail in the order of 5,000 to 6,000 containers per year, primarily to Port Botany. There is capacity on site to increase the volume of containers shipped.

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Challenges & Issues Locally • Transport circulation on site could be improved with direct access to the terminal from the Newell

Highway. All access to the terminal is currently via the Kamilaroi Highway. Auscott is currently negotiating for an easement to provide access from the Newell.

• The entry to the site from the Kamilaroi Highway is not optimum for large trucks entering and exiting

the site. Acceleration, deceleration and turning lanes are needed. • High mass vehicles (HMV) are not permitted on the Newell Highway through Narrabri. Commodities

arriving on HMV are often stored at Auscott and taken across town in smaller trucks, resulting in double handling of commodities.

• The GrainCorp Terminal in Narrabri South is a ‘pinch-point’ at certain times of the year (see Section 4.4 and 5.1). At peak periods, this has flow-on impacts for the local supply chain (including the Auscott facility), with trucks ‘tied up’ trying to access the GrainCorp terminal.

• Difficulties in attracting and retaining skilled people due to seasonal nature of the work. Rail • Difficulty in getting trains and ‘paths’ during peak cotton and grain seasons, with the need to ramp up

from 1-4 trains per month outside of peak times to 12-15 trains per month in peak times. • During peak times, shunting has to work around the passenger service operating on the North West Rail

Line. This can delay shipments.

• Delays on the rail network, often due to broken down trains and track / track infrastructure repairs in both the Sydney and regional network, and delays for trains trying to access Port Botany (Sydney network). Trains can get ‘bumped’ off the track and then ‘parked’ until a ‘path’ becomes available. As a result, the shipment misses its ‘window’ at the Port, which means that containers have to be stored in Sydney and then transported to the Port by truck, which significantly increases transport costs. Auscott stores some cotton in Sydney to provide a ‘buffer’ and enable it to meet its windows if the train is delayed. This however increases transport, handling and storage costs.

• Preference by the Train operators to enter into ‘Take or Pay’ contracts, which are too inflexible for

agricultural commodities. Port • Port Botany is inefficient, with the duration of the ‘windows’ allocated often not being sufficient to

completely un-load a shipment. • Changes in vessel scheduling, particularly at short-notice is difficult to respond too. Auscott books its

trains to meet the vessel arrivals, with the trains being booked one month ahead. The distance and travel time to the Port is also an issue, with ‘windows’ being changed after a shipment has been dispatched on the train.

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Containers • Difficulty in securing empty containers, particularly during peak periods. There is a global shortage of 20

foot containers suitable for food products (grains and pulses). • The demurrage on containers adds to transport costs. There is a 6 day turn-around on containers. This

is very tight, particularly when the containers spend two days travelling (one day each way). Any delays on the rail network or at the Port creates problems and adds to cost.

Future Direction • Auscott considers that there will be limited growth in the cotton sector. Due to water restrictions, there

is likely to be no increase in irrigated cotton crops, with the yield from irrigated areas expected to remain relatively stable. Most of the fluctuations will occur in cotton produced by dryland farming. The amount of cotton planted is dependent on the water available (rainfall – soil moisture, and water held in on-farm storage dams), global demand and prices for cotton and other commodities.

• Auscott is looking to increase utilisation of its terminal facilities through the storage and containerisation of grains and pulses. Both grain and pulse production is increasing within the North West Region, however like cotton, it is seasonal and dependent on weather (primarily rainfall) and global demand and commodity prices.

• Inland Rail – the proposed inland rail line will increase opportunities for Auscott to export through the

Port of Brisbane. It will also provide an alternative for Auscott to divert shipments to Brisbane if it is likely to miss its window at Port Botany. The main issue with Brisbane is the limited availability of empty containers to back-load on the train.

• Back-loads – while Auscott is endeavouring to identify opportunities to ‘back-load’ rather than bringing in empty containers from Port Botany, the potential volumes of freight are very small (compared to the number of containers moved) and the logistics are difficult because of the stevedoring arrangements, container ownership, demurrage, restrictions on what can be placed in food grade containers for grain and pulses, and the turn-around times in and around the Port.

4.1.2 Louis Dreyfus Commodities Australia - Terminal Louis Dreyfus operates a Bulk Grain Terminal as part of the Narrabri North Intermodal Terminal. The site has frontage to and is accessed from the Newell Highway. The site has an area of 6.41 hectares, with the terminal located on the northern end of the site. The Terminal was established in 2011. The Operator – Louis Dreyfus Commodities Australia The Terminal is operated by Louis Dreyfus Commodities Australia, which is a fully owned subsidiary of Louis Dreyfus Commodities. Louis Dreyfus Commodities is a global merchandiser of commodities (grains, pulses, cotton, dairy, mineral resources) and processor of agricultural goods, with the company operating a significant network of storage, bulk transportation and logistical assets in 53 countries. Within North West NSW, Louis Dreyfus has grain terminals at Narrabri and Moree, as well as cotton gins and storage facilities in Moree and is a joint venture partner in the Wee Waa Intermodal Terminal. The company also has storage and handling facilities in Newcastle.

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Terminal Facilities Facilities at the Narrabri Bulk Grain Terminal include: • Storage silos – 11,000 tonne

capacity. • Intake pit for fast receival of grain

+ grain elevators and distribution systems.

• Wet grain storage facilities. • Gas-fired grain drier. • Grain treatment silos for pest-

affected grain. • Weighbridge and sampling stand • Rail loading facilities – an Over-

rail Garner Bin that loads 400 tonnes per hour.

Capacity & Operations The Terminal is designed for a throughput of 200,000 tonnes of grain per annum, with this equating to 8,000 TEUs. It is currently operating at around 100,000 tonnes per annum which equates to 4,000 TEUs. The Terminal is operated with 2 full-time employees, plus one seasonal worker. The Terminal operates 12 hours per day during the harvest and 10 hours per day at other times of the year. With on-site farm storage, the Terminal receives grain year-round. Grain is sourced primarily from areas to the north and west of Narrabri, including Walgett Shire as well as some grain from the southern areas of Narrabri Shire. The closure of the GrainCorp silo at Baan Baa has resulted in grain from the south eastern part of the Shire coming back into Narrabri. On average, the Terminal generates 3 trains per week, with grain taken to the Port of Newcastle. Louis Dreyfus are running 2,500 tonne trains, with the number of wagons varying from 38-46. Louis Dreyfus has trialled a 5,000 tonne train (72 wagons), with the train split at Narrabri, with part of the train being loaded at Narrabri and the remainder continuing onto Moree, with the train then re-joined for the journey to port. Challenges & Issues The main challenges faced are: • The ‘small’ size of trains particularly during peak season, due to weight and speed restrictions on the

track. Louis Dreyfus would like to increase the size of the train from 2,500 tonnes (current) to 3,000 tonnes and ultimately to 6,000 tonnes.

• Not always being able to meet the ‘slot’ (path time) allocated on the network, and difficulty of re-

scheduling.

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Directions Forward • In the short-medium term the focus will be on increasing Terminal utilisation. • Seeking to be able to run both longer and ‘heavier’ trains on the line, to go from 2,500 tonne trains up

to 6,000 tonne trains. • Development of storage sheds and facilities on the undeveloped portion of the site. Part of the site is

flood prone and any development will require resolution of flooding issues. • The proposed Inland Rail Line will open up opportunities to export through the Port of Brisbane. Having

options will assist in negotiating more cost effective rail contracts. 4.2 Narrabri West Intermodal Terminal The Narrabri West Intermodal Terminal precinct is located in the Narrabri West Industrial Estate approximately 1.5 kilometres west of the Newell Highway – Kamilaroi Highway intersection on the southern edge of town. The Terminal accesses the Walgett Branch Line, which is part of the Country Rail Network, operated by John Holland. The Terminal services: • Viterra Operations, which is part of the Glencore Group. • The Australian Milling Group, which is part of AGT Food & Ingredients Group. • Cargill Australia Limited. Also located within the Narrabri West precinct are Australian Recycled Plastics and Santos Narrabri Gas Project. These businesses are both in the early development phase, and longer term may be potential users of rail transport.

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Figure 4.4 Narrabri West Intermodal Terminal Precinct.

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Corglen, a major cotton seed storage facility is located approximately 0.5 kilometre south of the Intermodal Precinct, while the GrainCorp Narrabri Receival and Storage Site is located to the east of the Precinct. Within the Narrabri West precinct there is 140.45 hectares of land zoned for industrial uses (but currently vacant or used for agriculture) that would enable the future expansion of the intermodal terminal. Combined, Viterra and AGT foods are transporting between 11,000 and 18,000 TEU’s per annum by rail, while Cargill is transporting around 1,500 – 1,800 TEU’s of vegetable oil to refineries in Newcastle and Melbourne by truck and 8,000+ TEU’s of protein meal for stock feed to feed mills and feedlots within the surrounding region. 4.2.1 Viterra Storage and Distribution Centre Viterra occupy an 18.4 hectare site that is serviced by a spur line off the Walgett Branch line. The spur line also services AGT Foods which abuts the Viterra site. Viterra own and maintain the spur line. The Operator - Viterra Viterra Operations is part of the global commodities company, Glencore. Viterra specialises in packaging, processing, storage and transport services for agricultural commodities. The Narrabri operation provides warehousing facilities for wheat (primary commodity), sorghum and other grains, pulses and cotton lint bales and cotton seed. Once the commodities stored on site are sold, Viterra organises the containerisation and transport (primarily by rail) of the containers to Port Botany. Terminal Facilities The Viterra Warehouse and Distribution Centre incorporates: • Shed (6), silo and bunker (3) storage areas. • Container packing and loading facilities. • A weighbridge for B-double and road train weighing. • Spur line – approximately 800 metres in length. The

spur line is operated in conjunction with the rail siding and yard at Narrabri West. The spur line loading area can accommodate 25 wagons, with trains split and ‘parked’ at the Narrabri West siding.

Capacity & Operations The Centre primarily services growers in the Narrabri, Moree Plains Shire, Walgett, Warialda and Gunnedah Shires, and occasionally Liverpool Plains, Warrumbungle and Gilgandra Shires. The Centre has the capacity to handle 11,000 TEU’s, with the number of TEU’s per year ranging from 7,000 to 11,000 depending on the season. The Centre operates year-round, with a strong surge during the wheat harvest (October to December). The Centre receives 2,000 to 6,000 tonnes of grain and pulses per week depending on the season. The increasing trend

Figure 4.4 The Viterra Intermodal Terminal and AGT Foods

AGT Foods

Viterra Bunker Storage

Viterra Terminal

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to on-farm storage is resulting in grain and other commodities coming into the Centre year-round. Rail services are provided by Qube Logistics. Viterra is contracted to 3 trains per week, with these trains having either 30 (low season) or 44 wagons and carrying 60 and 88 containers, respectively. During the peak harvest season (October to December), Viterra books extra train services. Challenges & Issues Narrabri Area • The Viterra site is at capacity. The company would need to purchase additional land if it were to

expand.

• Most of the commodities handled by Viterra come from areas to the north and west of Narrabri. Restrictions on high mass vehicles through Narrabri can result in double handling of commodities, or trucks having to stop and uncouple their trailers and make 2-3 trips through town. The town itself is a ‘pinch point’ with traffic congestion, particularly with the number of trucks trying to come through town during the harvest season.

• There are also issues with access from Wee Waa, with no heavy vehicle access across Lagoon Bridge. As such vehicles have to stay on the Kamilaroi Highway to Narrabri and then come through the town centre, which adds to transport time and cost.

• GrainCorp Terminal is a ‘pinch point’ at certain times of the year, with the two main issues being extensive delays as a result of shunting trains into and out of the terminal, and the restrictions that prevent road trains delivering to the Terminal during school zone times – with flow-on impacts throughout the local transport network / supply chain.

• The power supply to the Viterra site is at capacity, and it would be very expensive to increase capacity. • Dust problems on the gravel section of Williams Drive leading into the Terminal. • Strong demand for access to trucks at harvest time, resulting in difficulties and delays in securing trucks.

This is exacerbated when trucks are held up trying to access the GrainCorp Terminal. • Slow internet speeds. • Seasonal fluctuations – production is currently down due to the drought.

Rail • Difficulty in getting trains and ‘paths’ particularly during the peak grain season. Agricultural

commodities are competing with coal for ‘paths’ with coal given priority. • Track work on the North West line is often scheduled for November which is peak harvest season. The

Terminal can ‘lose’ 1-2 weeks where there are no trains. This also impacts on access to empty containers, with no containers coming back into Narrabri for packing.

• Delays on the rail network locally as a result of shunting into the Narrabri GrainCorp Terminal and trains being ‘bumped’ by coal trains.

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• Delays on the rail network (across the full length), often due to broken down trains and track / track infrastructure repairs in the both the city and regional network, and delays for trains trying to access Port Botany (city network). Trains can get ‘bumped’ off the track and then ‘parked’ until a ‘path’ becomes available. As a result, the shipment misses its ‘window’ at the Port, which means that containers have to be stored in Sydney and then transported to the Port by truck, which significantly increases transport costs.

• Being locked into a Take or Pay rail contract. Port • Port Botany is inefficient and inflexible. The duration of the ‘windows’ allocated allow for a maximum of

50 containers to be unloaded. As trains carry 60-88 containers, the trains have to be split and be handled by different stevedores.

• Changes in vessel scheduling, particularly at short-notice. Viterra is ‘locked’ into its train schedules and has limited flexibility to respond. The distance and travel time to the Port is also an issue, with ‘windows’ being changed after a shipment has been dispatched on the train.

• Port of Newcastle does not have the cranes or capacity to handle containers. Given the capacity

constraints, delays and costs of using Port Botany, container capacity and facilities at the Port of Newcastle would be a highly desirable.

Containers • Shortage of 20 foot food standard containers, with the demurrage conditions on the turnaround of

containers (6 days) being an issue and increasing costs. Future Direction • Viterra has no plans to expand their operations in the short term. • The Inland Rail will provide options to send commodities to Brisbane and possibly to redirect shipments

to respond to changes in vessel schedules at Port Botany. The main issues with Brisbane are that not many vessels call in at the Port of Brisbane and difficulties in securing empty containers.

4.2.2 AGT Food (Australian Milling Group) Storage & Distribution Centre The AGT Food Storage and Distribution Centre is located adjacent to the Viterra Terminal and occupies a site of around 3 hectares (see Figure 4.5). The company also owns 4.4 hectares of vacant industrial land in Williams Drive (approximately 300metres north of its Centre) abutting the Walgett Branch line. The Operator – AGT Foods Australia AGT Foods is one of the world’s largest suppliers of value-added pulses, staple foods and food ingredients. AGT purchases lentils, peas, beans and chickpeas from in Canada, the United States, Turkey, Australia, China and South Africa and exports to over 100 countries around the globe. AGT Food’s Narrabri operations involves the receiving, cleaning and containerisation of a range of pulses, including chick peas, mung beans, faba beans, as well as some wheat and sorghum. The Centre employs 24 staff, increasing to 36 staff during the harvest periods.

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Terminal Facilities The terminal facilities include: • Silos. • Large storage shed. • Grain and pulse cleaning and drying facilities. • Treatment silos for pest affected crops. • Container packing and loading facilities. • Hardstand areas for containers. • Weighbridge. • Office & Amenities (for staff and truck drivers). The Centre was significantly upgraded in 2014 to improve efficiency. Truck time on site has been reduced from over an hour per delivery to 25 minutes, double handling of commodities on site has been eliminated and container packing capacity has been increased to 80 containers per day (16 hour shift). Figure 4.6 AGT Foods Storage & Distribution Centre – Narrabri West Intermodal Terminal.

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Capacity and Operations The AGT Foods Storage and Distribution Centre draws from an area of approximately 350 kilometres radius from Narrabri. This includes Narrabri, Moree Plains, Walgett, Gunnedah and Liverpool Plains (part) Shires in NSW and parts of South Western Queensland. The Centre has onsite storage capacity for around 14,000 tonnes, incorporating silo storage of 9,000 tonnes and shed storage of 5,000 tonnes. It also has the space to store 300 containers on site at any one time. The Centre operates at 100% capacity during harvest seasons (6 months of the year) and between 25%-35% capacity at other times of the year. The harvest seasons vary depending on the crops, with the wheat harvest occurring from October to December, sorghum in February and March and pulses in March and April. During the harvest seasons, AGT uses four, 46 wagon trains per week (88 TEU’s per train). For the other 6 months of the year, AGT has the option of 1 to 3 trains per week of either 30 or 46 wagons, depending on need. The trains are booked 1 month in advance. During the off-peak season (May to September) for grains and pulses, AGT shares trains with Auscott, with the peak season for cotton extending from (April to August). Auscott also stores surplus grain and pulses for AGT during the grain harvest season (October to March). Growers also store grain on-farm, and at the GrainCorp and AWB silos within the Shire, with this grain trucked to AGT for cleaning, containerisation and shipping. The only ‘down time’ at the Terminal is late August, early September, with this time used for maintenance (2 week period). The total number of containers shipped by AGT ranges from 4,000 to 7,000 TEU’s depending on the season. AGT also operates as the ‘terminal’ for incoming containers from other sources. On average it receives 15 full containers per year, as well as 20-30 empty containers that have been purchased by a local business that then on-sells these containers to local residents and businesses for storage.

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Challenges & Issues Narrabri Area • Restrictions on vehicle sizes through Narrabri results in inefficient handling of some commodities and

increased handling costs. AGT is using the Auscott Warehouse (Narrabri North Intermodal) on the northern side of Narrabri to store grains and pulses delivered to the area by AB and B Triple from the north and west of Narrabri.

• Access issues through Wee Waa – trucks have to stay on the Kamilaroi Highway and access AGT Foods

through Narrabri, which increases travel times and distances. It would be far more efficient and cost effective for trucks from the west and north-west to come off the Highway at Wee Waa and access the Narrabri West Intermodal Terminal via Culgoora Road.

• Operations at GrainCorp can delay truck and train movements in other locations within the town. • Williams Drive to the south of the railway is unsealed. This road needs to be regularly watered to

minimise dust. This adds to the terminal operating costs. • Slow internet speeds. There is a need for faster internet speeds at the same or reduced costs.

Rail • Difficulty in getting trains and ‘paths’ particularly during the peak grain season. Agricultural

commodities are competing with coal for ‘paths’ with coal trains given priority.

• Delays on the rail network locally as a result of shunting into the Narrabri GrainCorp Terminal and trains being ‘bumped’ by coal trains.

• Delays on the rail network (across the full length), often due to broken down trains and track / track infrastructure repairs in the both the city and regional network, and delays for trains trying to access Port Botany (city network). Trains can get ‘bumped’ off the track and then ‘parked’ until a ‘path’ becomes available. As a result, the shipment misses its ‘window’ at the Port, which means that containers have to be stored in Sydney and then transported to the Port by truck, which significantly increases transport costs.

• Issues with the weight limits on the line, with the wagons restricted to around 55 tonnes which equates

to 2 TEUs of grain or pulses, or one 40 foot cotton container and one 20 foot grain container. There is a need for trains with the capacity to carry three TEU’s of grain / pulses per wagon.

Port • Port Botany is inefficient and inflexible. The duration of the ‘windows’ allocated allow for a maximum of

50 containers to be unloaded. As trains carry 60-88 containers, the trains have to be split and handled by different stevedores.

• Changes in vessel scheduling, particularly at short-notice. AGT is ‘locked’ into its train schedules one month in advance and has limited flexibility to respond. The distance and travel time to the Port is also an issue, with ‘windows’ being changed after a shipment has been dispatched on the train.

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• Port of Newcastle does not have the cranes or capacity to handle containers. Given the capacity constraints, delays and costs of using Port Botany, container capacity and facilities at the Port of Newcastle would be a highly desirable.

Containers • Shortage of food standard 20 foot containers during peak demand periods.

• Most freight is shipped in 40 foot containers, however due to WHS standards the maximum weight for a

40 foot container is 30 tonnes. Due to the weight of grain and pulses, a 20 foot container holds 25 tonnes, whereas only 27 tonnes can be loaded into a 40 foot container. 40 foot containers are double the price of 20ft containers to transport.

• Demurrage on containers. If trains are delayed, it can be difficult to turn the containers around within

the 7 day timeframe. Future Direction • AGT Foods has purchased additional land within the Narrabri West Industrial Estate, approximately 300

metres north of its current operations. This provides the opportunity to diversify and/or expand in the future.

• The Inland Rail will provide the option to send commodities to Brisbane and possibly to redirect

shipments to respond to changes in vessel schedules at Port Botany. The main issues with Brisbane are that not many vessels currently visit the Port and difficulties in securing empty containers for the ‘return’ trip.

4.2.3 Cargill Australia – Oil Seed Plant Cargill Australia Limited has a large oil seed crushing and processing plant, located in the north eastern corner of the Narrabri West Intermodal Terminal area. The Cargill site has an area of 16.9 hectares and is accessed via Mooloobar Street off the Newell Highway. The site abuts the Walgett Branch line, with Cargill having its own rail siding.

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Figure 4.7 Aerial View of the Cargill Oil Seel Processing Plant.

Viterra

AGT Foods

Cargill Rail Siding Viterra Rail Siding

Narrabri West Siding

Cargill Oil Seed Processing Plant

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The Operator – Cargill Australia Cargill Australia Limited is part of the Cargill Group, which operates in 70 countries world-wide, in the areas of agricultural trading and processing (grains, pulses and oil seeds), oil seed refining, cotton, beef and poultry, farm and export services and engineering services. Within the North West Region, Cargill provides grain and cotton handling and marketing services to growers and operates a large oil seed crushing and processing plant in Narrabri. Grain and cotton purchased in the area is trucked directly to ports in Brisbane, Newcastle and Botany. The Narrabri Oil Seed Plant employs 40 fulltime equivalent staff. Narrabri Oil Seed Plant The Narrabri Plant was purchased from North West Vegetable Oils in 1972 (50,000 tonne capacity), and subsequently expanded to 300,000 tonne capacity. The Plant primarily crushes cotton seed and sunflower seeds to produce vegetable oil and protein meal for stock feed. Cotton seed is trucked from Gins within the North West to the Plant. Excess seed is stored at the Corglen Storage Facility (located just south west of the Narrabri West Intermodal Precinct) until required. The plant crushes around 250,000 - 300,000 tonnes of seeds per annum, with this fluctuating with the seasons. The oil yield is approximately 15%, equating to 37,500 – 45,000 tonnes of oil per annum. The ‘raw’ vegetable oil is trucked to Cargill’s Vegetable Oil Refineries in Newcastle and Melbourne for further refining. Depending on price, oil could be used for domestic consumption and/or exported to Asia in bladders within containers. Until 2010, cotton seed oil was transported to Newcastle by rail. The ramping up of the coal industry created logistical issues with access to rail and reliability of trains, with Cargill moving to road transport. Cargill has retained its rail infrastructure and periodically re-assesses costs and logistics. At present road transport is more efficient than rail transport. The residue from the oil crushing is converted into protein meal for stock feed. This is trucked directly to feed mills and feed lots in North West and Central NSW. Input Output

Cotton & Sunflower Seeds

Raw Vegetable Oil Protein Meal – Stock Feed

Weight - tonnes TEU Equivalents

250,000 – 300,000 16,600 – 20,000

37,500 – 45,000 1,500 – 1,800

200,000 – 250,000 8,000 – 10,000

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Future Directions • Diversification into canola oil - Cargill is currently seeking development approval to install a Canola Seed

processing plant and bio-filter in its Narrabri Plant. Initially, the plant will source canola seed from Central and Southern NSW and from Gunnedah and Liverpool Plains Shires to the east. New varieties of canola have been developed that are suitable for planting in North West NSW, with Cargill anticipating that canola will progressively become part of the crop rotation practices within the Region. Processing of canola seed will reduce seasonal fluctuations and increase plant utilisation.

• The Inland Rail line may provide the opportunity for Cargill to transport raw oil by rail to its refinery in

Melbourne. This will depend on cost and logistics. 4.2.4 Possible Future Users There are two operations, Santos Narrabri Gas Project and Australian Recycled Plastics, located within the Narrabri West Intermodal Terminal Area that could at some stage in the future, utilise rail transport to transport goods to market. Santos Santos has established the Narrabri Gas Project, involving extraction of coal seam gas (CSG) in the Pilliga Forest to the west of Narrabri. The Pilliga Forest has sufficient reserves of CSG to supply up to 50% of NSW’s gas needs. There is also the potential to export CSG from the Port of Newcastle. The project is currently in the exploration and appraisal phase and will require Government approval to move into production. When the project commenced, the Queensland to Hunter gas pipeline was proposed, with Santos proposing to feed into the pipeline to transport the gas to Newcastle. The pipeline project is now on-hold and considered unlikely to proceed. If the Santos Project progresses to mainstream production, the transport options open to Santos are to develop its own pipeline (preferred option), truck the gas by road in large gas tankers or transport gas in bulk by rail.

Rolling stock is being stored on site. Depending on cost and efficiency, there may be potential for rail transport of vegetable oil to Melbourne via the Inland Rail.

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Santos occasionally uses rail to bring pipes and other equipment into Narrabri. Most of the pipes are transported in 40 foot containers. The Santos site and Narrabri Gas Project area could access the Walgett branch line. Australian Recycled Plastics – Namoi Logistics. Australian Recycled Plastics (ARP) was established in Narrabri in 2015 by Namoi Logistics. Namoi Logistics is a trucking company that primarily transports cotton from the cotton gins to storage and distribution centres and to port. The ARP Plant, which abuts the Walgett Branch Iine, purchases used plastic bottles and containers from recycling plants in Sydney, then cleans, crushes and processes the plastic to produce plastic flakes which are then bagged and sold to a plastic manufacturer in Melbourne. There is also global demand for the flakes, with export being an option for the future. The Plant processes around 60 tonnes (4 million bottles) of bottles per day. The bottles provide a ‘back-load’ for Namoi Logistics Trucks returning to Narrabri from Sydney. The plastic flakes are transported by truck to Melbourne. There are currently 3 trucks per week travelling to Melbourne (6 TEU equivalents), with the potential for this to increase to 10 per week (20 TEU equivalents). At this stage the operation is too small to utilise rail transport. As the operation grows, access to the Inland Rail may provide an option for transporting the plastic flakes to Melbourne by rail and to port for export.

4.3 Wee Waa Intermodal Terminal The Wee Waa Intermodal Terminal is located within the Wee Waa industrial area on the western side of Wee Waa. Wee Waa is a small rural town located approximately 40 kilometres west of Narrabri. The town sits on the junction of the Kamilaroi Highway and the Pilliga Road, with the Kamilaroi Highway linking through to Walgett, Brewarrina and Bourke Shires, and the Pilliga Road through to Warrumbungle and Coonamble Shires. Both routes carry large volumes of agricultural commodities. The Terminal services: • Namoi Cotton • Graincorp Wee Waa Receival Site (silos) Namoi Cotton is currently shipping between 6,000 and 10,000 TEU’s per annum from the Terminal (depending on the season).

Figure 4.8 Location of Wee Waa.

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Figure 4.9 Aerial View of the Wee Waa Intermodal Terminal.

Namoi Cotton Complex

GrainCorp Silos

Wee Waa Intermodal Terminal – showing part of the Namoi Cotton Warehouse & Distribution Centre (left) and the GrainCorp Silo (right).

Area for future expansion

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4.3.1 Namoi Cotton Complex The Operator - Namoi Cotton Namoi Cotton is one of Australia’s largest cotton processors, and cotton lint and cotton seed marketing companies. The company has 13 cotton gins in NSW – Southern Queensland, and as part of joint venture with Louis Dreyfus, owns and operates three large warehouse and packing facilities, including the facility at Wee Waa. Namoi Cotton exports cotton to China, Indonesia, Japan, Thailand, Bangladesh and India, and cotton seed domestically and to China and Japan. Namoi Cotton’s Wee Waa facility is used for the storage and distribution of cotton lint and cotton seed, as well as grain and pulses outside of the cotton season. Namoi Cotton stores and ships both its own cotton, as well as cotton bales for growers and merchants. For grain and pulses, Namoi cotton provides a container packing service (fumigation, packing, AQIS Approval) and delivery to the Port only. The Wee Waa Facility employs 53 full time staff and an additional 40 casual staff during peak times. The Facility draws cotton from 8 Gins, with these located in Narrabri, Moree Plains and Walgett Shires. The Namoi Cotton Gins have been upgraded to increase efficiency, with each Gin now processing 1,600 bales per day (24 hour operation), up from 800 per day. This has doubled truck movements from 4 road trains per day to 8 road trains per day to transport the cotton to the Wee Waa Warehouse Facility. All cotton processed by the Gins has to be moved off-site within 7 days. Terminal Facilities • Warehouse – 17 large storage sheds

(floorspace 41,850 m2). • Receival Pad Storage area (30,000

bales). • Pallet Stack Storage area (50,000

bales). • Seed and Grain Packing Facilities. • Fabrication and Electrical Shops. • Office & Stores. Capacity and Operations The Facility operates year-round, with Cotton and Cotton Seed from April to October and grain and pulses from October to March. While the Facility has always packed some grain for its cotton farmers, it only moved into grain packing and transport on a large scale in 2012/13. The Facility is serviced by two trains per week (Monday and Friday) for 50 weeks of the year. Cotton and cotton seed are transported in 40 foot containers, and grains and pulses in 20 foot containers. Cotton The Facility has the capacity to store 480,000 bales of cotton, of which 251,100 bales can be stored under cover. The amount of cotton exported depends on the season and over the past 7 seasons has ranged from 4,082 TEUs to 7,652 TEU’s.

Season 2009 2010 2011 2012 2013 2014 2015 TEU’s Cotton 5752 5906 7652 7534 5830 4972 4082

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Grains & Cotton Seed The Facility is packing around 40,000 tonnes of grain per annum, generating 1,600 TEUs. It is also containerising around 5,000 tonnes per annum of cotton seed, which generates around 200 forty foot containers, or 400 TEUs. Challenges & Issues Wee Waa Area • Restrictions on vehicle sizes through Wee Waa. An increasing number of the trucks servicing the North

West and most of the trucks coming out of Southern Queensland are AB Triples. These trucks are not permitted in Wee Waa, resulting in drivers having to stop and split their load, making two trips to the Wee Waa Facility.

• Lagoon Bridge – The bridge has load restriction with no heavy vehicle access available from south of

Wee Waa. This requires a significant (30 – 80km depending on location) detour. • During peak periods it can be difficult to secure sufficient trucks. The need to remove cotton from a Gin

site within 7 days of being ginned, places pressure on the growers and buyers.

Rail • The spur line into the Wee Waa Facility is too short. The train has to be split into 3 and shunted on and

off the main line. Each shunt takes about 45 minutes. The cost of extending the spur line (around $1,000 per metre - $1.0 million) is prohibitive.

• The condition of the Walgett Branch line – the line has speed and weight restrictions. Wagons are restricted to around 55 tonnes which equates to 2 TEUs of grain or pulses, or one 40 foot cotton container and one 20ft grain container. Trains are restricted to 45 wagons. It would be far more efficient to operate the larger 60 wagon trains that can carry 3 TEUs of grain per wagon.

• Difficulty in getting trains and ‘paths’ particularly during the seasons. Agricultural commodities are competing with coal for ‘paths’ with coal trains given priority.

• Delays on the rail network between Narrabri and Newcastle with agricultural trains being delayed or ‘bumped’ by coal trains. Windows at the Port can be lost.

• Delays on the rail network into and through Sydney often created by inefficiencies at Port Botany. Trains can get ‘bumped’ off the track and then ‘parked’ until a ‘path’ becomes available. As a result, the shipment misses its ‘window’ at the Port, which means that containers have to be stored in Sydney and then transported to the Port by truck, which significantly increases transport and handling costs.

Port • Port Botany is inefficient and inflexible. The duration of the ‘windows’ allocated allow for a maximum of

50 containers to be unloaded. As trains out of Wee Waa generally carry around 83-86 containers, the trains have to be split and handled by different stevedores.

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• Changes in vessel scheduling, particularly at short-notice results in missed shipments, or having to offload in Sydney and pay storage and additional transport costs. The distance and travel time to the Port is also an issue, with ‘windows’ being changed after a shipment has been dispatched on the train.

• Port of Brisbane has bottle necks and it is difficult to secure empty containers for back-loading. Containers • Shortage of food standard 20 foot containers. There is no local container depot to source stock to

continue packing if trains are delayed. Future Direction • Namoi Cotton is ramping up its grain and pulses packing and exporting services in response to significant

growth in crop production within the North West NSW. Key drivers are: - Changes in farming techniques and more resistant and higher yielding crop varieties, is resulting in

the expansion of cropping in North West NSW. Land that has traditionally been used for sheep grazing is now under a variety of crops, including grain, pulses and cotton. The volume of crops being produced is increasing, with resultant increased demand for storage, packing and shipping services. With farmers sowing multiple crops with different harvest times, seasonality at Wee Waa Warehouse is declining with the Centre now being utilised year-round.

- Trend to on-farm storage of grain and pulses, with the farmer controlling when these commodities

go to market. This is also helping to reduce the impacts of seasonality and increase the utilisation of the warehouse storage and shipping facilities year-round.

- Trend to containerisation of grain, rather than putting all grain through the bulk handlers. This

allows growers to access more markets, and to differentiate their grain on its characteristics (eg on protein content), which enables them to achieve a higher price. As such the demand for container packing and transport is increasing.

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4.4 GrainCorp Bulk Grain Terminal, Narrabri The Narrabri Grain Terminal is located on the southern edge of Narrabri approximately 1.1 kilometres to the east of the Narrabri West Intermodal Terminal. It is access via Old Turrawan Road off the Newell Highway. It is identified in GrainCorp’s Export Logistics Network as a ‘Primary’ site. A ‘Primary’ site is defined as one that is export focused, provides fast cycling services to ports and is serviced by point-to-point unit trains with 40+ wagons. The Terminal employs five staff full time and 16 staff during harvest. Facilities at the Terminal include: • Concrete grain silo. • Grain storage shed. • Grain receival and outloading structures. • Weighbridge. • Staff facilities. • Rail siding. The current operation on the site is relatively inefficient. The rail siding is relative short resulting in trains having to be broken up and shunted between the Narrabri West rail siding and the Grain terminal for loading. It currently takes 8 shunting movements to fill a train with the shunting taking a minimum of 54 minutes. During the shunting process, two level crossings, including the Newell Highway crossing are shut each time the train passes (18 crossing closures during the shunting process). The same happens when a loaded train leaves the terminal. GrainCorp have submitted a development application to Council to replace their on-site single track siding with three parallel spur lines. This will enable one train (48 wagons) to be shunted on site, broken up and parked on site, loaded and then reassembled. This will require only train movement into and out of the site reducing the shunting time to 18 minutes and significantly reducing the number of crossing closures and delays on the Newell Highway. The other major issue with the Terminal is the ‘curfew’ that has been placed on access to the Terminal by road trains during school zone times (8 – 9.30am and 2.30-4pm, school days). During harvest, the Terminal receives on average 45 deliveries by truck per day. While semi-trailers are permitted to access the Terminal during school zone times, road trains are not. While truck operators endeavour to program runs around the school zones, if trucks are delayed (eg congestion through Narrabri, other trucks are already on-site etc), the road trains have to park and wait for the school zone to finish. This then creates further congestion as trucks that have been parked queue to enter the Terminal. Delays have repercussions throughout the day for harvesting and delivery operations throughout the supply chain. The delays also increase costs as the road train is effectively ‘off the road’ for 1-3 hours (depending on the number of trucks wanting to access the terminal), during each school zone period, with wages still having to be paid.

Narrabri West Rail Siding

GrainCorp Terminal

Kamilaroi Highway North West Rail Line

Bunker Storage

Newell Highway

North West Rail Line

Figure 4.10 GrainCorp Narrabri Terminal.

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5. ROAD NETWORK TO SUPPORT THE INTERMODAL TERMINALS The road network to support the three intermodal terminals in Narrabri Shire, operates on three levels, state roads, regional roads and local roads. In relation to the intermodal terminals and the movement of commodities and freight within Narrabri Shire and surrounding regions there are three key issues: • ‘Pinch points’ on the Shire’s road network that have a direct impact on transport efficiency and costs. • Access to the Intermodal Terminal Sites. • The capacity of the Shire’s road network to respond to changes in, and/or support growth and

diversification within the agricultural sector. 5.1 Pinch Points on the Shire’s Road Network There are four main ‘pinch points’ on the road network within the Shire that impact on the supply chain to the Intermodal terminals and/or create inefficiencies in handling of commodities and/or add to transport time and cost: • Restrictions on high mass vehicles entering the township of Narrabri. • The ‘curfew’ on road train access to the Narrabri Grain Corp terminal during school zone times. • Lagoon Bridge in Wee Waa not being suitable for trucks. • Restrictions on high mass vehicles in Warrior Street, Wee Waa. Restrictions on high mass vehicles entering the township of Narrabri The Newell Highway through Narrabri has three 90o corners, one of which involves negotiating a roundabout. There are also structural issues with the Namoi Creek Bridge. As such, the longer and higher mass vehicles are not permitted to travel through town, other than under permit for one-off activities (eg transport of mining equipment). High Productivity Vehicles (HPV - AB and B-Triples) arriving on the Newell and Kamilaroi Highways on the northern side of Narrabri, must stop and unload a trailer and ‘shunt’ the trailers through town. Alternatively, commodities are unloaded and stored at the Narrabri North Intermodal Terminal and then transported by ‘smaller’ trucks across to the Narrabri West Intermodal Terminal. This double handling is inefficient and increases handling and transportation costs. The Newell Highway Strategy (2015)10 forecasts that freight traffic along the Newell Highway will increase from between 76% to 84% (depending on location) over the next 15 years (to 2031). In Narrabri, freight movement are forecast to increase by 84% on the Highway to the south of the town, and by 79% on the highway to the north of the town. Freight movements currently account for 44% of vehicles on the Newell Highway to the south of the town and 48% to the north of the town. The Strategy has as one of its goals, to upgrade the Highway along its entire length to provide access for HPV vehicles. In the short term, the Strategy aims to remove ‘pinch points’ to facilitate HPV access. The Narrabri town centre has been identified as a priority, and planning has commenced to assess the capital works required to upgrade the Highway to enable the movement of HPV through town. Works are programmed to commence in 2018 (funding dependent). When completed HPV will be able to directly access the Narrabri GrainCorp Terminal, Narrabri West Intermodal Terminal and other businesses within the Narrabri West industrial area.

10 RMS (2015) Newell Highway Strategy.

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Narrabri GrainCorp Terminal - School Zone Curfew The ‘curfew’ on access to the GrainCorp Terminal by road trains during school hours (8.00am-9.30am and 2.30-4.00pm, school days) delays trucks accessing the terminal, which increases transport costs (drivers and rigs sitting idle) and has ‘flow-on’ ramifications throughout the local supply chain (see Section 4.4). The ‘curfew’ was originally proposed in the 1990’s when road trains were first being introduced, by the then Roads and Traffic Authority. This was a verbal agreement, applying only to road trains (not to semi-trailers) with no restrictions being gazetted. The anomaly is that semi-trailers can access to Terminal during school zone times, whereas road trains cannot. Since the curfew was first introduced there have been significant improvements in vehicle access to the school, parking at the school and in establishing ‘no parking’ zones along Old Turrawan Road which provides the access to the GrainCorp Terminal. Endeavours have been made to remove the ‘curfew’ however as Old Turrawan Road is a local road, it comes under Council control. The RMS supports the removal of the ’curfew’. Councillors however are concerned about potential risks to school children and as a precaution have decided against removing the curfew. An alternative option suggested by Councillors is to change the access to the GrainCorp Terminal via rebuilding part of the ‘old’ Newell Highway and re-opening a rail crossing. This is a $4million project, for which funds are not available. Council does not have the funds available to undertake a detailed Traffic Study to assess the risks and, if there are risks, to formulate and implement a cost effective solution. Lagoon Bridge in Wee Waa not being suitable for trucks Lagoon Bridge is an old timber bridge over the Wee Waa Lagoon. Load restrictions are in in place, with heavy vehicle access prohibited. Lagoon Bridge provides the ‘link’ between the Kamilaroi Highway which passes through Wee Waa to the rural areas to the south of the town, and also to Culgoora Road, which provides a direct link between Wee Waa and the Narrabri West Intermodal Terminal, Cargill Oil Seed Plant and Narrabri Grain Corp Terminal. At present, heavy vehicle traffic arriving from the west on the Kamilaroi and Pilliga Roads, has to stay on the Kamilaroi Highway into Narrabri, to join the Newell Highway north of Narrabri and travel through the Narrabri town centre. This adds to both travel time and costs, and generates additional heavy vehicle movements through the Narrabri town centre. Funds have been allocated to replace the timber bridge with a concrete bridge suitable for heavy vehicles, with the bridge expected to be in place by 2017. The opening of the bridge provides the opportunity to provide a direct link from the Kamilaroi Highway at Wee Waa via Charles Street, Lagoon Bridge and Culgoora Road, through to the Narrabri West Intermodal Terminal and Industrial Area. The Namoi Christian School has road frontage to Charles Street and concerns have been raised about possible risks of permitting trucks to use Charles Street. A Traffic Study is required to assess the level of risk and to identify and access options. Council does not have the funds available to undertake a Study. Warrior Street, Wee Waa Warrior Street Wee Waa provides heavy vehicle access to the Wee Wee Intermodal Terminal (Namoi Cotton). It is also used by trucks accessing Pilliga Road, which is an important regional road that links through to the Castlereagh Highway at Coonamble. There is a culvert under Warrior Street that was not designed for high productivity vehicles. As a precautionary measure Council has placed load restrictions on the road, closing it to HPV’s. The cost of replacing the culvert is less than $100,000 however Council does not have the funds available to undertake this work.

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5.2 Access to the Intermodal Terminal Sites Council and the Terminal operators have identified a number of issues that impact on access to their sites, that pose safety risks and/or create inefficiencies and/or additional costs. Narrabri North Intermodal Terminal – Auscott With the increase in both the number and size of trucks on the Kamilaroi Highway, the Kamilaroi Highway adjacent to the Terminal entry needs to be improved. This could include widening of the pavement, and providing acceleration, deceleration and turning lanes. Auscott is also seeking to secure a second access point from the Newell Highway. This requires negotiation with private land-holders to secure an easement. Parts of the area are also part of a floodway, the implications of which will need to be assessed. Narrabri West Intermodal Terminal Access to both the Viterra and AGT Foods sites is via Williams Drive through the Narrabri West Industrial Area. The Walgett Branch line crosses Williams Drive just to the north of the Viterra Complex. Williams Drive to the north of the railway line is controlled by Council, with the road being fully sealed. Williams Drive to the south of the railway line is a Crown Road. Access to both the Vittera and AGT sites is off this southern section of road. This section of the road, which is approximately 700 metres in length, is not sealed, which creates access problems in wet weather and dust problems at other times. To combat dust, the Terminal Operators use a water truck to regularly spray the road, with the truck operating full time during the summer harvest season. This is an inefficient use of water, which is a scarce resource. The operation also incurs running and labour costs. Wee Waa Intermodal Terminal The significant expansion of broadacre cropping and growth in yields within the Wee Waa District and to the north and west in Walgett Shires has increased by the number and size of trucks accessing the Wee Waa Intermodal Terminal. The location of the railway line means that trucks cannot access the Terminal directly from the Kamilaroi Highway, with the access route coming through Wee Waa via Warrior Street and Trucking Yards Lane.

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Figure 5.1 Access to the Wee Waa Intermodal Terminal.

Given the issues with truck access with Warrior Street and Charles Street – Lagoon Bridge, plus the need to improve access to Cotton Seed Distributors, who are located just to the east of Wee Waa, but only accessible by truck from Narrabri (no truck access from Wee Waa), there is a need for a comprehensive traffic study to improve heavy vehicle access to the Intermodal Terminal, the area to the south of Wee Waa, and between Wee Waa and Narrabri (Culgoora Road). 5.3 Capacity of the Shire’s Roads to Support Growth Economic development in and around Narrabri Shire has, and will continue to, increase the volume of heavy vehicle traffic on the Shire’s road network. As discussed in Section 5.2, growth in freight movements on the Newell Highway are forecast to increase by 79-84% over the next 15 years, with RMS undertaking works to increase access for HPV’s along the Highway Corridor. The RMS is also building a new bridge at Tulladunna (near Wee Waa) on the Kamilaroi Highway which will remove height restrictions on trucks along the entire length of the Kamilaroi Highway. The capacity of the regional and local road network within Narrabri Shire to accommodate growth has been raised as a significant issue, both by Council and the Regional Development Australia ‘Northern Inland Region of NSW – Freight Study’. In recent years there has been a significant increase in truck traffic on the Shire’s local and regional roads, as well as an increase in vehicle mass. The increase is due to a combination of factors including: • The shift from grazing to broadacre cropping, changes in farming practices, introduction of new types of

crops as part of rotational crop practices and the introduction of higher yielding, water efficient and disease resistant crop varieties is resulting in:

o More area under production, with additional land to be brought into production over the next

decade. It is forecast that agricultural production in the area will increase by 1-2 million tonnes per annum over the next 15 years.

o Higher volumes of commodities produced and requiring transport. o Multiple harvest seasons – the annual harvest, has been replaced by different seasons for cotton,

grain and pulses, with harvests occurring within the region for 10 months of the year. Harvesting now occurs from October through to the end of August (now only 4-6 weeks per year with no harvest activities).

Preferred Access Point

Current Access Rood Load restrictions on Warrior Street

Lagoon Bridge

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o On farm storage of grains and pulses – with this progressively shipped throughout the year, depending on world commodity prices – this is generating truck movements year-round.

• The rapid expansion of coal mining in the Gunnedah Basin, with coal given priority for rail access,

displacing some agricultural activities (eg bulk shipment of vegetable oil by rail from the Cargill Plant at Narrabri) with these activities transferring to road transport. Use of oversize vehicle to bring mining equipment into the area is also impacting on the road network in the south-eastern corner of the Shire.

• Introduction of higher productivity vehicles (HPVs) – AB and B Triples and increased use of road trains. The Gross Mass Limit (GML) of AB Triples and B Triples is 99 tonnes and 82.5 tonnes respectively, with the GML for Road Trains being 79 tonnes. In contrast, semi-trailers have a GML of 42.5 tonnes. The significant increase in mass is impacting negatively on the road pavement and formation and bridges and other structure.

• The introduction of the Grain Harvest Management Scheme, which enables the total combination mass

limits for vehicles with tri-axle groups to increase up to 5% above the General Mass Limit, for the transport of grains, oil seeds and pulses.

• Changes in the transport infrastructure within the Region. Over the past decade including the sealing of

the Kamilaroi Highway through to Walgett and the sealing of the Pilliga – Coonamble Road and the Killarney Gap Road, have ‘funnelled’ agricultural commodities from adjoining Shires into Narrabri Shire. In addition, the closure of some of the rail freight lines both in the Shire and surrounding region, resulted in goods having to be transported by road, with the Kamilaroi Highway becoming the main transport corridor.

Looking forward, the introduction of the Inland Rail and the development of terminal / access facilities at Narrabri (primary node) and Gwabegar (secondary node) will further concentrate and increase freight flows into Narrabri Shire. It may also help to attract new transport, warehousing and logistics businesses into the Shire, which could further increase freight movements.

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Figure 5.2 Road and Rail Networks in Narrabri Shire. The blue lines show the local and regional roads that form part of the agricultural commodity freight network.

COTTON GINS

INTERMODAL TERMINALS

INFLOW OF AGRICULTURAL COMMODITIES

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The Northern Inland Region of NSW - Freight Study11 identified four road projects in Narrabri Shire and one project in Gunnedah Shire (which will benefit Narrabri Shire producers, cotton gins and intermodal terminals) as high priority projects to support and facilitate the growth in production and freight within Northern Inland NSW. The high priority projects identified in this Study were: Table 5.1 High Priority Road Projects identified by the Northern Inland Freight Study, as needed to Facilitate and Support the Movement of Freight within the Region. Road Project Project Cost Funds

Allocated Narrabri Shire Millie Road Gravel & seal 56 km of road. $11,200,000 $2,700,000 Millie Road Strengthen & widen 22km of pavement $3,300,000 Kamilaroi Highway, Wee Waa

Upgrade bridge over Namoi River to the west of Wee Waa to HML standard.

Not known $0

Bald Hill Road Gravel & seal 51km of road. $9,000,000 $0 Gunnedah Shire Golden Grain Road Gravel & seal 17.6km of road to provide a

fully sealed link road from the Golden Highway near Dunedoo through to the Kamilaroi Highway at Boggabri.

$4,400,000 $2,700,000

Road projects within Narrabri Shire that were rated as ‘Medium’ priorities from a regional perspective were:

• Rehabilitate the Wee Waa Pilliga Road. • Seal the Pilliga – Coonabarabran Road. • Provide truck rest areas near the Newell – Kamilaroi intersections. • Seal the Boggabri – Manilla Road. Narrabri Shire Council as part of its submission on improving road capacity to accommodate HPV’s to service the Inland Rail corridor identified the following road projects as priorities: Project Description Cost

Estimates Benefits / Outcomes

Regional Roads Pilliga Road (MR127) Road Train Route

Upgrade and strengthen pavement (58.8km) replace 2 timber bridges.

$26.1 million (Road works $24M Bridges $2.1M)

Provide road trains with a direct all-weather route from Walgett and Coonamble to Wee Waa, with no load limits. Service the forestry industry in the Pilliga. Main transport route for Coal Seam Gas developments in the Pilliga.

Cypress Way (MR329)

Upgrade and seal Cypress Way (33.1km) and replace timber bridge at Gwabegar

$16.2M (Road works $14.6M, Bridge $1.6M

Provide an all-weather road train route from Coonabarabran to Pilliga + sealed access to the proposed Gwabegar Terminal on the Inland Rail corridor.

11 Regional Development Australia (2012) Northern Inland Region of NSW – Freight Study.

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Project Description Cost Estimates

Benefits / Outcomes

Rangari Road (MR357) Boggabri to Manilla

Upgrade and seal the road from Boggabri to the Shire border (10.8km) (note: unsealed sections in Gunnedah Shire).

$4.5M Improve flow of agricultural commodities and livestock between Narrabri Shire and processing plants in Tamworth and inflow of agricultural commodities to the Intermodal terminals in Narrabri for containerisation and export. Provide access to Maules Creek coal mine for transport of mining equipment.

Local Roads Bald Hill Road (SR9)

Upgrade and seal Bald Hill Road between Millie Road & the Kamilaroi Highway

N/a Provide an all-weather sealed access for HPV’s connecting agricultural areas in the north of the Shire to Intermodal facilities in Narrabri.

Millie Road (SR1) Upgrade and seal the remaining sections of Millie Road (51.2km) – this would link with the Spring Plains Road

$21M Provide HPV access from Collarenebri and the extensive cropping areas to the north west of Narrabri, to the grain storage terminal at Bellata and the Intermodal Terminals in Narrabri.

Spring Plains Road (SR4)

Extending the seal 11.4km to link with the Millie Road

$4.5M Upgrading from a road train route to a HPV route, feeding into the Intermodal Terminals at Narrabri and improving access to the Queensland Cotton gin at Waiwera Lane and to grain storage locations in this area.

Harparary Road (SR11)

Upgrade sections of the road from the Kamilaroi Highway to Maules Creek and replace the Harparary Bridge (currently 15 tonne limit)

$10M Increased access to the Intermodal terminals in Narrabri from the Baan Baa – Maules Creek area. Support the movement of mining equipment to the Maules Creek Coal Mine.

Culgoora Road (SR30)

• 17.1km shoulder widening.

• 14.1km reconstruction and sealing.

• 2x Intersection upgrade to accommodate road train type vehicles and increase in turning vehicles.

• New Intersection and railway level crossing construction.

$10.5 million (Road works $9M Level crossing $1.5M)

Provide road trains with a direct all-weather route from Wee Waa to Narrabri and Pilliga, with no load limits. This would enable trucks coming from the west and north west, to access the Narrabri West Intermodal Terminal, Narrabri GrainCorp Terminal and Corglen without having to pass through the Narrabri town centre. Service the local industry in Wee Waa (such as Cotton Seed Distributors) that currently have to travel an additional 60km due to 'pinch points'.

The regional and local road projects identified above would provide improved all-weather access to the Intermodal and Bulk Grain terminals in Narrabri and Wee Waa, enable higher productivity vehicles to be used within the Shire (more efficient and cost effective) and ‘channel’ freight movements to Narrabri. The projects would also reduce the number of heavy vehicle movements through the Narrabri urban area.

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Road Train negotiating the roundabout on the Newell Highway in Narrabri.

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6. RAIL INFRASTRUCTURE TO SUPPORT THE INTERMODAL TERMINALS

The Intermodal and GrainCorp Terminals in Narrabri Shire are dependent on continued rail access to the Ports, primarily to the Port of Newcastle for bulk grain exports and to Port Botany for containerised commodities. The Narrabri North Intermodal Site has direct access to the North West Rail Line, while the Narrabri West and Wee Waa Terminals access the North West Rail Line via the Walgett Branch Line. Within Narrabri Shire, GrainCorp has 5 bulk receival sites on the North West line, and four on the Walgett Branch Line. There are two key issues impacting on the performance and efficiency of the intermodal terminals: • Access to and the reliability of the rail services. • The capacity of the lines and trains – load and length restrictions. 6.1 Access to and the Reliability of the Rail Services Access to and the reliability of the rail services has major logistical and cost implications for the Intermodal Terminals in Narrabri Shire. Issues consistently faced by the Intermodal Terminals in Narrabri Shire include: • Limited availability of trains, rolling stock and containers during peak demand periods (eg harvest),

particularly to access additional services at short notice. • Competition with the coal trains to secure slots or paths on the line from Narrabri to Newcastle. As the

line from Turrawan (just south of Narrabri) to Newcastle is part of the Hunter Valley Coal Chain Network, coal trains are given priority. This is compounded by seasonality of production with the number of slots required for agricultural commodities fluctuating between harvest and non-harvest periods.

• Congestion and delays on the network, resulting in shipments being delayed, parked or bumped, and shipments missing their allocated Port ‘windows’. This is due in part to a lack of capacity on the lines into and through Sydney and the inefficient infrastructure and handling facilities and practices at Port Botany. The need to transit through intermodal terminals within Sydney and to break long trains for handling at Port are additional steps in the supply chain with resultant increased costs and complexity. The lack of choice of stevedores and a perceived lack of productivity improvement in stevedoring services were also identified as inhibiting factors.

Product often has to be unloaded and stored in Sydney until a shipping window becomes available, which adds to handling and transport costs. Delays also impact on the flows of containers. Most of the containers coming into the Shire have a 7 day cycle, with demurrage fees applying if the container is not re-positioned or de-hired within 7 days. Again this adds to transport and handling costs.

• Programming of maintenance (referred to as Track Possessions) on the North West Line generally occurs

during the grain harvest. This impacts of the ability of operators in Narrabri Shire to move product at this critical time and also impacts on the supply of containers, with none coming into the area and companies not having anything to pack into.

• The fixed nature of rail bookings and timetables is not flexible enough to cater for variability in ship

arrivals times. Arrival times may only be confirmed a few days out, while trains are booked a month in advance. Given the travel time between Narrabri and the Ports, shipments may already be in transit when arrival times and windows are changed.

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• Take or Pay contracts for trains – while this spreads the risks for the train provider it provides challenges

for the intermodal terminal operators – particularly for seasonal commodities. Individual growers and smaller merchants are dependent on the terminal operators to take small loads alongside their main load.

The issues with the NSW freight rail network have been well documented and are in the process of being addressed. The infrastructure program adopted as part of the NSW Freight & Ports Strategy incorporates a number of rail projects that, when implemented, will increase the capacity and reliability of the rail freight network, and potentially reduce transport and handling costs for the Intermodal Terminal Operators and users within Narrabri Shire. Rail projects included in the infrastructure program that will have direct benefits for Narrabri Shire are summarised in Table 6.1. In 2012, when the infrastructure program was formulated, funding for a number of these projects has not been allocated. Narrabri Shire Council and its Stakeholders would like to see the Regional Intermodal Taskforce, strongly recommend that, if not already commenced, these projects be funded and commenced as a high priority. Table 6.1 NSW Freight & Ports Strategy (2012) – Infrastructure Programs. Sponsor Project Description Funding

Status Implications for the Intermodal Terminals in Narrabri Shire

TfNSW Rail Freight Performance Regime for Metropolitan Sydney

To develop a performance regime for freight trains seeking to access the shared Metropolitan passenger and dedicated freight rail network. The project will assess and review freight train reliability issues and improve outcomes for both freight and rail passenger services.

Funding sources to be determined

More efficient and reliable movement of freight through the Sydney Metropolitan area, reducing delays and the transport and storage costs resulting from the delays.

TfNSW Northern Sydney Freight Corridor Stages 2 & 3

Further improvements to the efficiency of the rail network between Strathfield and Newcastle

Funding sources to be determined

More efficient and reliable movement of freight from Newcastle to and through Sydney, reducing delays and the transport and storage costs resulting from the delays.

TfNSW Lower Hunter Freight Corridor

Development of a rail-bypass around Broadmeadow and Newcastle Urban areas.

Funding sources to be determined

More efficient movement of freight through Newcastle, including a reduction in travel times.

ARTC / TfNSW

Botany Rail Line Duplication.

Joint ARTC / TfNSW project to duplicate the Botany Freight Rail Line from Marrickville to the Port. Duplication of the line will increase the rail capacity of Port Botany and reduce congestion and the resultant delays.

Planning Study is funded

More efficient movement of freight into Port Botany, reducing delays and the associated storage and transport costs resulting from delays.

ARTC Inland Rail Route

Feasibility and planning studies.

Partially funded.

Inland Rail will provide more options for the Intermodal terminals and agricultural

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producers and other freight users to get product to and from Ports (export) and the domestic market in Brisbane and Melbourne. Improvements to the rail line, through Narrabri will also facilitate the use of longer and ‘heavier’ trains for the transport of commodities which will increase the capacity and efficient and should reduce rail transport costs.

6.2 The Capacity of the Lines and Trains – Load and Length Restrictions As a rule, higher capacity trains are more economic to utilise than the smaller trains with weight limits. Each of the Intermodal Terminal operators / users advised that they would like to see improvements in rail infrastructure to provide access to trains with higher axles loads. The operators providing containers services want access to wagons that can carry three TEU equivalents of grain / pulses – 75 to 80 tonnes per wagon, rather than the current limit of two TEUs (50 tonnes of grain) per wagon. Weight is not an issue for cotton and cotton seed. The Bulk Grain terminal operators would like to increase train capacity from the current 2,200 – 2,500 tonne trains, to 3,000 in the short term and ultimately up to 6,000 tonnes. Moving to higher capacity trains will require improvements in the rail infrastructure. North West Rail Line The North West Rail Line is leased to and operated by the Australian Rail Track Corporation (ARTC). The section of the Line, from Turrawan (located 17.3 kilometres south of Narrabri) to the junction with the Main North Line at Werris Creek, forms part of the Hunter Valley Coal Chain Network. Over the past decade, ARTC has invested significantly in upgrading the line and associated infrastructure and developing sidings and passing loops, to facilitate the introduction of longer and ‘heavier’ trains to service the coal industry. Improvements have also enabled increases in speed on some sections of the track. To the north of Turrawan, there has been very limited investment in track infrastructure. There are speed and load limits on sections of the track. The passing loops and sidings from Turrawan through to Moree are also too small to accommodate long trains. The proposed Inland Railway will incorporate the North West Rail Line from Narrabri to Moree and the Branch line to North Star. As the first stage in developing the Line, ARTC (the proponent) is seeking approval to upgrade the existing line from Narrabri to North Star. The Project will include upgrading the existing track, replacing culverts and bridges to higher load-bearing structures, rationalisation and up-grading of level crossings, curve easing, construction of five new passing loops and upgrading the signalling and communications infrastructure. The upgraded track would be suitable for trains of up to 3,600 metres in length, double the current maximum length of 1,800 metres. It would also increase the axle loads from 22 to 30 tonnes, allow double stacking of containers, and increase speed limits from the current 90-100km per hour to 115km per hour

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(depending on axle loads). Once the line is completed to Brisbane (medium to long term) it will enable higher productivity trains to operate between Narrabri and the Port of Brisbane. Unless the track is upgraded between Turrawan and Narrabri, similar sized trains could not operate between Narrabri and the Port of Newcastle, Port Botany and Port Kembla. The section of line between Turrawan and Narrabri needs to be upgraded to the same standard as proposed for the section of track to the north of Narrabri. Walgett Branch Line The Walgett Branch Line is part of the Country Regional Rail Network, operated by John Holland. Both the Narrabri West and Wee Waa Intermodal Terminals have access off the Walgett Branch line. West of Narrabri, the Branch Line carries minimal traffic – two trains per week for the Wee Waa Intermodal Terminal and grain trains as required to service the GrainCorp terminals at Wee Waa, Merah North, Cryon, Walgett, Burren Junction and Merrywinebone. The rail infrastructure was constructed for ‘light’ traffic. While the track has been maintained there have been no significant improvements to the track formation. As such both load and speed limits are in place. The track has the capacity for 2,200 tonne trains, which accommodate 2 TEU’s of grain per wagon. Namoi Cotton, AGT Foods and Viterra advised that heavier axle trains, that with the capacity of 3 TEU’s of grain per wagon, would significantly increase efficiency and reduce transport costs. Qube Logistics, which provides the trains for Viterra and AGT Foods and maintains the Narrabri West Intermodal Siding is currently undertaking a review of rail logistics and is looking at the feasibility of introducing larger trains. This may require some upgrading of the Walgett Branch Line from Narrabri Junction to the junction with the Narrabri West (Viterra) spur line. The cost of upgrading the remainder of the line from Narrabri West through to the Wee Waa Intermodals and further west and north west to the GrainCorp terminals, to take the larger / heavier trains, is likely to be cost prohibitive. There may be opportunity to load the smaller trains in Wee Waa and consolidate into larger trains at Narrabri to access the North West line and, in the longer term, the Inland Rail Line.

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7. ACTIONS & PROJECTS TO SUPPORT NARRABRI’S INTERMODAL TERMINALS

7.1 Current Status • Narrabri Shire is the main freight hub in Northern NSW for containerised agricultural commodities. It is

also a significant hub for the transport of bulk agricultural commodities and coal, and in the future, potentially coal seam gas. Being 400+ kilometres from the Port of Newcastle and 540+ kilometres from Port Botany, rail transport of commodities is a highly viable option.

• Combined, the three Intermodal Terminals in Narrabri Shire handle between 35,300 and 49,300 TEU’s

per annum, depending on the ‘season’. • The Intermodal Terminals service Narrabri Shire and surrounding LGAs, drawing produce from a 350

kilometre radius, which includes North Western NSW and parts of South Western Queensland and Central NSW.

• Due to changes in agricultural practices and crop varieties, agricultural production in the area is forecast

to increase by 1-2 million tonnes over the next decade. Coal production is also increasing, and if the Pilliga Gas project proceeds, Narrabri will be a major producer and exporter of coal seam gas. Narrabri is identified as a primary hub on the proposed Inland Rail Line, which will further consolidate and strengthen its position as a freight hub.

• The Intermodal Terminals in Narrabri Shire are highly efficient and ‘fit for use’. There is land available to

expand each of the terminals. • To maximise throughput, the three Terminals work co-operatively in the storage and transport of

commodities, maximising use of storage space and ‘sharing’ trains. • The Terminals operate year round. Due to the diversity of crops produced in the Shire and surrounding

Region, harvesting extends from October through to end of August (wheat – October to December, pulses and other grains from December through to April and cotton from April through to August). The trend to on farm storage of grains and pulses is also helping to ‘spread’ demand throughout the year.

7.2 Issues & Challenges Faced The three Intermodal Terminals in Narrabri Shire and the bulk grain terminals face similar issues and challenges, most arising from capacity constraints in the road and rail networks and transport infrastructure and capacity constraints and inefficiencies at Port Botany. Locally, the main challenges are: • Capacity of the road network within Narrabri Shire to sustain the volume of heavy vehicle traffic being

generated and to accommodate the projected 79-84% increase over the next 15 years. Approximately $92.8 million dollars is required to address issues on the local and regional road network to facilitate production and transport of commodities. As a small rural Council, Narrabri does not have the funds to undertake this work.

• There are a number of ‘pinch points’ on the main routes in Narrabri and Wee Waa, where there are restrictions on vehicle mass, requiring significant detours, double handling on trailers and commodities and transport delays. These ‘pinch points’ impact on operational efficiencies (across the whole supply

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chain) and add to storage, handling and transport costs. Comprehensive traffic studies are needed in Narrabri and Wee Waa to assess these issues and formulate solutions. Narrabri Shire Council does not have the funds to undertake these studies.

• Although some of the industry in question is on the perimeter of Narrabri and Wee Waa, they suffer

from slow and intermittent internet speeds and connectivity. Although the National Broadband Network will be rolled out in Narrabri Shire in the coming years, it is the interim periods where upgraded telecommunications would allow a business to contact, transact and access customers allowing the company to grow.

Externally, the main challenges and issues lie with rail and port capacity and access, to shipping containers: Rail As discussed in Chapter 6, rail issues include: 7 Limits on the size, weight and speed of trains on the North West line (north of Turrawan) and on the

Walgett Branch line. Terminal operators want to move from 2,200-2,500 tonne trains to 3,000 tonnes and ultimately 6,000 tonnes, with the trains able to carry three TEUs of grain per wagon (currently 2 TEU’s).

8 Limited availability of trains, rolling stock and containers during peak demand periods (eg harvest). 9 Competition with coal trains to secure slots or paths on the line from Narrabri to Newcastle, with coal

trains given priority. 10 Congestion and delays on the network, resulting in a lack of capacity on both the rail network within the

Port of Botany. This results in shipments being delayed, parked or bumped, and shipments missing their allocated Port ‘windows’. Product has to be unloaded, stored and re-loaded in Sydney, adding to transport and handling costs.

11 Programming of maintenance (referred to as Track Possessions) on the North West Line generally occurs during the grain harvest, impacting on the ability to move product at this critical time.

12 The fixed nature of rail bookings and timetables is not flexible enough to cater for variability in ship arrival times.

13 Take or Pay contracts for trains – lacks flexibility and increases costs. ARTC has significantly upgraded the North West Rail Line to the south of Turrawan (17km south of Narrabri) and will be significantly upgrading the line to the north of Narrabri as part of the proposed development of the Inland Rail Line. The section between Turrawan and Narrabri needs to be upgraded to the same standards, to enable longer, heavier trains to operate along the full length of the line. Port The inefficiencies in the design, capacity and operation of Port Botany have been well documented and are being addressed by the State Government. The inefficiency of the Port creates logistical issues for the Intermodal Terminals in Narrabri Shire and adds to handling, storage and transport costs. Containers There is a global shortage of 20 foot, food standard containers, with containers being difficult to secure during peak periods. Due to the distance and travel time between Narrabri and Port Botany, and the delays on rail networks and at Port, the 6-7 day turnaround of containers is ‘tight’ with demurrage fees adding to transport costs.

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7.3 Facilitating and Supporting Growth of the Intermodal Terminals Actions and projects required to facilitate and support the operation and growth on the Intermodal Terminals and the broader agricultural and transport and logistics sectors in Narrabri Shire and the North West Region of NSW are summarised in Table 7.1.

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Table 7.1 Actions & Projects Required to Facilitate & Support the Growth of the Intermodal Terminals in Narrabri Shire Challenges / Issues to be addressed Actions & Projects Required to Facilitate & Support Growth of the Intermodal Terminals

in Narrabri Shire Funding Estimates

Road Network Required: Significant upgrades to the road network within Narrabri Shire to remove pinch points and ensure that the road network has the capacity to sustain growth in higher mass vehicles and provide safe, cost effective and efficient access to the Intermodal (container and bulk) terminals within the Shire. 1. Issue: Pinch Points in Narrabri and Wee Waa which are creating inefficiencies, impacting on the supply chain and adding to transport and handling costs. 1.1 Restrictions on Higher Productivity Vehicles (HPV) vehicles on

the Newell Highway through Narrabri. 1.1.1 Allocation of funds by the RMS to upgrade the Newell Highway corridor through the

Narrabri Urban Area (as proposed by the RMS) to permit the use of HPV’s through the town to access the Narrabri West Intermodal Terminal and GrainCorp Terminals.

Unknown

1.2 Delays and costs incurred throughout the local supply chain as a result of the curfew on Road Train Access to the Narrabri GrainCorp Terminal during school zone times.

1.2.1 Undertake a comprehensive traffic and risk management study into road access to the GrainCorp Narrabri Terminal.

$50,000

1.2.2 Implementation of the recommendations of the Traffic Study. Unknown 1.3 Load restrictions on vehicles accessing the Wee Waa Terminal

via Warrior Street due to culvert load-bearing capacity. 1.3.1 Replace the culvert in Warrior Street, with a culvert that has the strength to support

HPVs. $100,000

1.4 Restrictions on truck access between the Kamilaroi Highway and Culgoora Road in Wee Waa, and prohibition on truck access to the Wee Waa Intermodal Terminal direct from the Kamilaroi Highway – depending on destination, vehicles are having to make detours of up to 80km, and trucks coming through Wee Waa wanting to access the Narrabri West Intermodal Terminal and the Narrabri GrainCorp Terminal are currently channelled through Narrabri Urban Areas.

1.4.1 Replacement of the timber bridge (Lagoon Bridge) over the Wee Waa Lagoon with a bridge with the capacity to carry heavy vehicle traffic. Project is committed.

Project funded.

1.4.2 Comprehensive traffic study to address: • Access issues between the Kamilaroi Highway and Lagoon Bridge (Charles Street),

including possible risks to school children crossing Charles Street. • Options to provide access to the Wee Waa Intermodal Terminal directly from the

Kamilaroi Highway • Access to the Wee Waa Intermodal Terminal from Lagoon Bridge for trucks arriving

from the south.

$50,000

1.4.3 Implementation of the recommendations of the Wee Waa Traffic Study. Unknown 2. Issue: Access roads into the Intermodal Terminals in Narrabri need to be upgraded (Note: Access to the Wee Waa Terminal is address in Action 1.4.2 and 1.4.3). 2.1 Growth in heavy vehicle traffic along the Kamilaroi Highway is

creating issues with access to and egress from the Auscott Terminal.

2.1.1 Upgrading of the Kamilaroi Highway at the entrance to the Auscott Terminal – possibly including road widening and the provision of turning, acceleration and deceleration lanes.

Unknown

2.2 The southern end of Williams Drive, which is the only heavy vehicle access road to the Viterra and AGT Foods Australia terminals, is not sealed. This creates access problems during wet weather, and requires dust control at other times (water tanker operating continuously) which is an inefficient use of water and increases terminal operating and staff costs.

2.2.1 Sealing of the gravel section of Williams Drive – a distance of approximately 700m. $100,000

2.3 Truck parking constraints – during harvest. There are significant queues to access the Narrabri West Intermodal Terminal, with trucks queueing in surrounding residential streets.

2.2.2 Provision of an off-road heavy vehicle parking / queueing area within the Narrabri West Industrial Area.

$300,000

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Challenges / Issues to be addressed Actions & Projects Required to Facilitate & Support Growth of the Intermodal Terminals in Narrabri Shire

Funding Estimates

3. Issue: The capacity and condition of the local and regional road network in Narrabri Shire is not adequate to sustain the current level of heavy vehicle use nor to facilitate growth in heavy vehicle traffic to service the expected increase in production (1-2 million tonnes of agricultural commodities) and the needs of the proposed Inland Rail Line.

3.1 The capacity and condition of key regional and local roads is grossly inadequate to sustain current heavy vehicle traffic volumes and accommodate growth.

3.1.1 To strengthen the road formation, extend the seal and replace load restricted culverts and bridges on strategic regional and local roads that facilitate access to the intermodal and bulk terminals and other supporting infrastructure. The highest priority projects are summarised below with further details provided in Section 5.3. Access to the Narrabri West Intermodal Terminal from Wee Waa and access to the Wee Waa Intermodal Terminal from the south, via Culgoora Road – Lagoon Bridge was identified as the highest priority for the intermodal terminals (see Actions 1.4.2, 1.4.3 and 3.1.2)

$100 - $110M.

3.1.2 Culgoora Road (SR30) – link the Narrabri West and Wee Waa Intermodal Terminals and provide truck access to and through Wee Waa – widening (17.1km), strengthening and sealing (14.1km), intersection improvement (2), new intersection & rail crossing.

$10.5M

3.1.3 Pilliga Road (MR127) Road Train Route – upgrade & strengthen pavement (58.8km) and replace 2 timber bridges.

$26.1M

3.1.4 Cypress Way (MR329) – upgrade & seal (33.1km) and replace timber bridge at Gwabegar. $16.2M 3.1.5 Rangari Road (MR357) – upgrade and seal to the Shire boundary (10.8km). $4.5M 3.1.6 Bald Hill Road (SR9) – upgrade and seal to complete the link between Millie Road and the

Kamilaroi Highway. Not known

3.1.7 Millie Road (SR1) – Upgrade and seal the remaining sections of Millie Road (51.2km) to complete the link with the Spring Plains Road.

$21M

3.1.8 Spring Plains Road (SR4). Extend the seal to link with Millie Road (11.4km). $4.5M 3.1.9 Harparary Road (SR11) – upgrade sections from Kamilaroi Highway to Maules Creek and

replace Harparary Bridge (15 tonne limit). $10M

Rail Network Required: A rail network that provides efficient (no delays) and cost effective access to the Port of Newcastle, Port Botany and Port Kembla in NSW and interstate ports (via the Inland Rail), enables the use of longer and higher mass trains (3,000 tonnes minimum, 6,000 tonnes preferred), has sufficient rolling stock to accommodate growth, and provides flexibility in access to cater for seasonal fluctuations in demand. 4.1 Insufficient capacity on the rail network resulting in logistical

issues for Narrabri Shire’s Intermodal Terminals, and increasing transport, handling and storage costs.

4.1.1 Narrabri Shire Council and our Stakeholders fully support the implementation of the Infrastructure Program proposed in the NSW Freights and Ports Strategy (2012). The projects that will have the most significant benefits for the Narrabri Intermodal Terminals (and for other freight generating towns within the North West Region – Tamworth, Moree and Gunnedah) are: • Rail Freight Performance Regime • North Sydney Freight Corridor – Stages 2 and 3 • Lower Hunter Freight Corridor • Botany Rail Line Duplications • Inland Rail Line

State Government to allocate funding for projects to improve rail efficiency as a priority.

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Challenges / Issues to be addressed Actions & Projects Required to Facilitate & Support Growth of the Intermodal Terminals in Narrabri Shire

Funding Estimates

4.2 Constraints on train length and carrying capacity, that prevent the use of high productivity trains to transport agricultural commodities from Narrabri Shire. Introduction of 3,000 tonne trains (and ultimately 6,000 tonne trains) with wagons able to carry 3 TEU’s of grain (currently wagons can only carry 2 TEU’s of grain) would significantly increase efficiency and reduce transport costs. ARTC has significantly upgraded the North West Rail Line to the south of Turrawan (17km south of Narrabri) and will be significantly upgrading the line to the north of Narrabri as part of the development of the Inland Rail Line. The section between Turrawan and Narrabri needs to be upgraded to the same standards, to enable longer, heavier trains to operate along the full length of the line.

4.2.1 Advocate for the upgrading of the North West Rail line from Turrawan through to Narrabri to enable high productivity trains to operate along the length of the North West Line, providing options for the Intermodal Terminals in Narrabri to ship to Ports in NSW, Brisbane and Melbourne.

Cost of Upgrading Unknown

4.2.2 Upgrade the Wee Waa Branch Line from Narrabri Junction to the Narrabri West Intermodal Spur Line (Viterra Line) to provide access to higher productivity trains.

State Government – Country Rail Network Funding.

4.2.3 Ensure that the Walgett Branch line from Narrabri to Wee Waa is maintained to at least Class 3 standard and endeavour to improve ‘pinch points’ along the line to increase speed and/or weight limits.

4.2.4 Investigate options for enabling the Wee Waa Intermodal Terminal to access higher productivity trains when introduced on the North West Line and Inland Rail Corridor.

$50,000 for a study

Port Infrastructure Required: Significant improvements in the capacity and efficiency of Port Botany and/or a the Port of Newcastle expanded to include a container terminal. 5.1 Limitations with capacity and operational inefficiencies at Port

Botany impact on the performance to the Intermodal Terminals in Narrabri Shire and increases transport and handling costs.

5.1.1 Narrabri Shire Council and stakeholders support the upgrading of Port infrastructure at Port Botany and the Port of Newcastle.

5.1.2 State Government to assess options to provide a container wharf and facilities at the Port of Newcastle.

Access to Containers Required: Ready access to 20 foot, food standard shipping containers, and a relaxation of demurrage arrangements / costs for shipping containers. 6.1 There is a shortage of 20 foot, food standard shipping containers

world-wide, with Narrabri Terminal Operators experiencing difficulties in accessing shipping containers at peak times. Due to the distance and travel time between Narrabri and Port Botany, and the delays on rail network and at the Port, the 6-7 day turnaround of containers is ‘tight’ with demurrage fees adding to transport costs.

6.1.1 As demand for containerisation increases, there may be an opportunity to establish a container depot at Narrabri, both to service the demand from the Intermodal Terminal operators and to ‘distribute’ containers along the Inland Rail Corridor to other terminals and centres as required. Council is seeking funds to investigate the feasibility of developing a container depot.

Feasibility Study $50,000

Other Infrastructure 7.1 Internet speeds within Narrabri Shire (and surrounding region)

are relatively slow, with the cost of accessing higher speed services being prohibitive.

7.1.1 Narrabri needs access to the National Broadband Network.

7.2 Power supply to the Narrabri West Intermodal Terminal (Viterra Site) is at capacity and would need to be upgraded if Viterra wished to expand. The cost of upgrading is prohibitive.

7.2.1 Financial assistance to upgrade the power supply to the Narrabri West Intermodal Terminal to facilitate future growth.

Unknown

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8. REFERENCES ARTC (2015) Hunter Valley Corridor Capacity Strategy 2015-2024 ARTC (2016) Inland Rail- Narrabri to North Star – State Significant Infrastructure Application Supporting Documentation. Commonwealth of Australia (2009) NSW Grain Freight Review. Department of Infrastructure and Transport (2012) National Land Freight Strategy - A Place for Freight Narrabri Shire Council (2012) Narrabri Shire Economic Profile Narrabri Shire Council (2015) Submission into High Productivity Road Upgrades to Support Inland Rail. NSW Department of Planning and Infrastructure (2012) New England North West Strategic Regional Land Use Plan Peece Pty Ltd (2012) Northern Inland Region of NSW – Freight Study. Prepared for Regional Development Australia Price Waterhouse Coopers (2015) Containerised Cargo Demand Assessment, Northern NSW. Prepared for Transport for NSW. Regional Development Australia – Regional Plan Northern Inland NSW. Regional Development Australia – Regional Plan Orana and Western Region of NSW Transport & Infrastructure Council (2015) National Remote and Regional Transport Strategy Transport for NSW (2015) Newell Highway Corridor Strategy 2015 Transport for NSW (2013) NSW Freights and Ports Strategy

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9. APPENDICES 1. Letter of Support – Gunnedah Shire Council