en.Wedoany.com Reported - The Albanese government in Australia has abandoned the inland rail project worth over A$45 billion that was intended to connect New South Wales and Queensland. The original plan to build a 1,700-kilometer railway from Melbourne to a port near Brisbane has now been scrapped. The new proposal only connects Beveridge in suburban Melbourne with Parkes in central-west New South Wales, halving the length.
Project costs increased by more than 50% over three years. Independent reviewer Dr. Kerry Schott estimated the completion cost would exceed A$31.4 billion, double the previous estimate, calling the figure "staggering." The government has reallocated A$1.75 billion in funding to other national rail upgrade projects, and the Parkes to Beveridge section is currently expected to be completed by the end of 2027.
The Inland Rail project was announced by the Coalition government in 2017 with an initial estimate of A$9.3 billion, which rose to A$16.4 billion in 2020. Schott's 2023 review pointed to "immature preliminary design and approval requirements," lengthy approval processes, and escalating costs as reasons for the overruns. The government has budgeted A$14.5 billion for the freight line, and abandoning half the route while reallocating funds will bring a modest improvement to the budget.
The scaled-down Inland Rail project will connect Victoria and New South Wales, supporting double-stacked container freight train operations with access to Perth and Newcastle. The government is retaining the land for the originally proposed project to allow for future expansion. The project aimed to ease congestion on existing rail and road networks and improve national freight efficiency, but cost overruns and planning flaws have posed challenges. The current status shows the original full scope has been abandoned, but construction on the revised section is progressing, targeting completion in 2027.
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