Productivity Gains

Economic Growth
Integration with the
National Transport &
Logistics Network
Partnership between
Public & Private
Sectors
Social Benefits

Riverina Intermodal Freight & Logistics Hub (RiFL)

Benefits delivered
The efficient and reliable movement of goods through supply
chains is a key determinant of national productivity and
economic performance (Infrastructure Australia 2012). There
is consensus amongst industry stakeholders that over the
medium to long-term demand for freight services will increase
faster than population growth. Infrastructure Australia estimates
that between 2010 and 2030 the number of containers handled
by Australian ports will increase by 150%. The impacts of this
growth are reflected in truck traffic increases of 50% and rail
freight increases of 90% over the same period.

economy. The Strategy aims to support and promote effective

and efficient freight movement by rail, road, sea and air. The
Strategy notes that NSW has suffered from under investment
in transport infrastructure, including rail, for the freight task and
that Government can facilitate private investment.

NSW 2021 A Plan to Make NSW Number One

(2011)
This is the NSW Governments 10-year strategic plan and
guides policy and budget decision making while also providing
accountabilities for Ministers and the agencies which support
them. Polices the RiFL Hub would help deliver include, economic
and employment growth, job creation in regional NSW, increased
expenditure on critical NSW infrastructure and doubling the
proportion of container freight movement through NSW ports
by 2020.
These strategic plans all recognise five key areas which any new
transport infrastructure investment will need to support:

Productivity Gains: Allowing regionally based businesses

access to transport based productivity gains, critical to their
competitiveness, the ongoing growth of the regional economy
and employment opportunities;

Economic

Growth: Generating significant

economic and social benefits to the region;

positive

Integration within the National Transport and

Logistics Network: Providing an integrated component of
The Riverina Intermodal Freight and Logistics (RiFL) Hub has
been developed with the goal of increasing the productivity
and therefore competiveness of businesses throughout the
region. On completion, the RiFL Hub would align with key NSW
Government strategic objectives including:

the NSW and Australian land freight network which is closely

aligned to current freight policy;

Partnership between Public and Private Sectors:

Leveraging the value within partnerships between the public and
private sectors; and

The NSW Long-term Transport Master Plan

(2012)

Social Benefits: Supporting improved environmental and

The Master Plan seeks to inform transport funding priorities

over the next 20 years and recognises investment in road and
rail infrastructure will be critical to the prosperity of regional
NSW. The Master Plan also notes the NSW Governments role
in strategic planning, facilitating private investment, providing
services and infrastructure where the market will not deliver
solutions and coordinating economic activity where there are
multiple commercial parties involved.

RiFL Hub concept

NSW Freight and Ports Strategy (2013)

The NSW Freight and Ports Strategy recognises an efficient
transport network is a basic requirement for economic growth.
The ability to get goods to market at the right time and
sell them at the right price is a cornerstone of a free market

safety outcomes.

The RiFL Hub project concept envisages the construction of

an integrated rail and road infrastructure development in 80
hectares of land within the Bomen Business Park. The Hub is
strategically located to service export and domestic markets via
the national rail and highway networks.
The Bomen Business Park will be a high-quality and nationally
renowned location for transport and logistics-based enterprises
and is likely to attract further large scale industries requiring
innovative logistics solutions. The RiFL Hub would operate as an
open access facility to maximise the potential throughput and
associated benefits. The current RiFL Hub concept is composed
of three major components:

Container terminal development

Economic Growth

Site for transfer of containers between road and rail transport

including temporary storage and supporting infrastructure.
The base RiFL development allows for two 900 metre long rail
loading faces with room for over 1,000 containers to be stored
in the loading stockpile adjacent to the rail loading faces.

The role of efficient transport infrastructure investments in

supporting economic development is well understood and is
recognised in our nations large public investments in facilities
such as ports, airports and roads. Transports contribution to
economic development includes the following (World Bank
2013):

Rail infrastructure
A 5.8 km length of new rail track parallel to the main line to
allow trains to quickly exit and enter the main line with minimal
interruption to schedules and avoiding the risks associated
with working on trains which are stationary on the main line.
The base RiFL development allows the termination of a 900
metre long train and the amalgamation of trains to form a
maximum corridor length train (1,800 metres) to capitalise on
cost efficiencies.

Road infrastructure
Enabling roads that will improve the connectivity of existing sites
within the Bomen Business Park, the new RiFL Hub and future
developments. These roads will be suitable for the operation of
high productivity freight vehicles.

Network effects: linking more locations;

Performance improvements: reducing cost and

time increasing transports contribution to economic
growth;

Reliability: reducing loss and damage and therefore

economic drag; and

Market size: access to wider markets adds to

economies of scale in production, distribution,
and consumption, thereby increasing economic
growth.

Productivity: transport increases productivity gained

from access to a larger and more diverse base of
inputs such as raw materials, parts, energy, and
labor, and broader markets for more diverse outputs.

The NSW Long-term Transport Master Plan (2012) provides

an overarching framework which will support the development
of more detailed Regional Transport Plans. One of the primary
objectives for these regional plans will be to:
Ensure the right transport links are in place to support and
enable regional economic development.
A vibrant economy is critical to the long-term sustainability of
Wagga Wagga and the surrounding region. As the NSW Longterm Transport Master Plan (2012) notes:
Across regional NSW, a number of road and rail corridors
have strategic value in supporting economic development and
population and employment growth.

Productivity Gains
Sound transportation investments lower the costs of moving
people and goods, which increases economic productivity.
Efficient transport and logistics services are critical to improving
Australias productivity. Given current high operating costs
relative to competing nations, productivity gains in Australia
will be the prime determinant of the nations future standard of
living and per capita income.
Traffic congestion currently costs Australian businesses $15
billion per year and is expected to increase to approximately
$20 billion a year by 2020 due to increase freight loads far
beyond the current rate of road building (ARA 2013). The
RiFL Hub would offer locally based businesses access to a
much more efficient transport network, opening up access to
domestic markets as well as a choice of three major international
seaports and the overseas destinations they service. The RiFL
Hub would avoid exposing regional businesses to anticipated
above inflation increases in road haulage costs and expensive
delays as a result of limited access to the rail network and
congestion in and around major ports and cities.
At steady state demand, it is estimated the RiFL Hub would
handle an additional 44,000 Twenty Foot Equivalent Unit (TEUs)
per annum which would otherwise have been transported
by road. Transferring these volumes to rail would remove
approximately 33,000 trucks from the roads, equivalent to 90
vehicles per day.

Creating a diverse economy, which supports quality job

growth and opportunity, has the potential to position the
region as a major contributor the Australian economy and
support increased investment in the surrounding area. The
RiFL Hub would open up new employment lands for the City
with access to a contemporary integrated transport system
offering a productivity advantage over domestic and overseas
competitors. The RiFL Hub would provide existing businesses
with the opportunity to compete in new domestic and
international markets and attract new businesses to the region.

Integration within the National

Transport and Logistics Network
Freight transport demand is placing increasing pressure on
existing infrastructure and this is almost certain to increase as
freight volumes continue to grow (Infrastructure Australia 2012).
Although traditional freight policy has been mode-specific, it is
now recognised across all tiers of government that effective
integration of freight policies with all modes of transport and land
use planning is key to securing productivity gains (Infrastructure
Australia 2013). It is also vital the geographic location of any
facility is appropriate to the surrounding infrastructure network.
The RiFL Hubs location relative to Sydney, Melbourne and
Brisbane as well as regional centres throughout the Riverina
Region mean it is an ideal location for an integrated logistics
hub. The NSW Long Term Transport Master Plan (2012)
identifies Wagga Wagga to Mildura as a strategic regional
transport corridor. Distances from Wagga Wagga to the major
ports are above the economic haul distance for rail freight
which means that in addition to capturing freight generated in

surrounding area, the RiFL Hub has the potential to provide

consolidation services to commodities brought to the RiFL Hub
by road from other regional centres.

estimated 33,000 trucks removed from the roads each year

by the RiFL Hub, this would equate to a fuel saving of 9.9ML,
which would reduce carbon emissions by approximately 9.7kt.

From first concepts, the RiFL Hub has been designed to

integrate within the broader land freight network providing
critical infrastructure in a strategic location. The RiFL Hub
would leverage other transport investments including
Australian Rail Track Corporations (ARTC) expenditure on the
North-South Corridor and proposed capital city terminals at
Truganina and Moorebank. ARTCs concept plans recognise
the need to integrate transport modes. The RiFL Hub will be
the first intermodal facility designed to take advantage of high
productivity road freight vehicle access which will be critical in
securing the required freight loads.

Infrastructure Australia acknowledges the current road network

is struggling to cope with current demands and that future
freight volume increases will exacerbate this situation. The
RiFL Hub would provide the infrastructure needed to relieve
pressure on the road system and the associated impacts.
Even where new road infrastructure is developed such as
WestConnex in Sydney and allowing for improved efficiencies
from high productivity vehicles, difficulties in connecting to
other transport infrastructure will continue to be a major issue
due to the scarcity of land in major cities.

The RiFL Hub is very closely aligned to NSW Government

policies including the NSW Long-term Transport Master Plan,
NSW Freight and Ports Strategy and NSW 2021 A Plan to
Make NSW Number One as well as the strategic plans of other
major transport operators including ARTC, Port Botany, and
the Ports of Brisbane and Melbourne. This close alignment
recognises the integrated transport solution offered by the RiFL
Hub concept.

Partnership between Public and Private

Sectors
All investors seek assurances that their funds will be used to
deliver target objectives and that there will not be unnecessary
delays in bringing the realisation of anticipated outcomes.
There is also a growing recognition that for large infrastructure
projects there are roles for the public and private sector to
bring their specific skills and expertise in order to improve the
efficiency of project delivery.

The RiFL Hub has already secured more than

$40 million of public sector funding for the
development and associated road infrastructure
improvements. Throughout the development
process discussions have been ongoing
with potential private sector investors. An
exhaustive Public Private Partnership process
has identified a foundation investor and several
additional potential private sector investors.
This approach means that if appropriate public
sector funding is available, the project could
quickly move to the implementation stage.

Environmental Impacts
Heavy vehicles make up just four percent of the Australian vehicle
fleet but contribute 22 percent of total transport emissions and
14 percent of Australias total greenhouse emissions. Some
estimates indicate that by 2020 these emissions will account
for 25 percent of transport sector emissions, or double that
of 1990 levels (NSW Long-term Transport Master Plan 2012).
Carbon emissions from rail are 40% less per km than road
transport and the average freight train takes 110 trucks off the
road (ARA 2013).
The RiFL Hub would significantly reduce the number of heavy
vehicle movements in the region and in and around connected
ports each year. This would significantly reduce associated
environmental emissions. Not only would fewer emissions
improve environmental outcomes, the long-term likelihood
of some form of emissions trading policy is likely to increase
the costs of less efficient transport services. Based on the

Safety Improvements
The RiFL Hub development will directly address a number of
local road network accident spots. In recent years these have
been the location of four separate fatalities. The infrastructure
will meet and exceed the current road, rail and workplace
statutory standards.
In 2012, there were 260 fatal crashes involving heavy vehicles
(NSW Department of Transport 2013). While their numbers
make up only 2.4 per cent of NSW motor vehicle registrations
and 7.1 per cent of kilometres travelled by all NSW vehicles,
heavy vehicles are involved in about 21 per cent of all road
fatalities.
The impact of road crashes is significant and is estimated
to cost the nation in the order of $27 billion each year (NSW
Department of Transport 2012). As the freight task grows and
road infrastructure struggles to keep pace with increased
demand, it is almost certain that the number of accidents and
the associated costs will continue to increase.
The RiFL Hub would contribute to improved transport safety by
providing a contemporary facility which would operate under
industry best practice and which would shift a greater share of
the freight task onto rail from road. The following table shows
the average crash frequency estimates per heavy vehicle trip
in NSW, the average cost per crash and the estimated cost of
crashes avoided by transferring freight from road to rail at the
RiFL Hub.
Accident Type

Per Trip

Cost per
Incident

Avoided
Costs

Fatalities

0.002%

$2.9 million

$1.9 million

Serious Injuries

0.027%

$0.3 million

$2.6 million

Non-hospitalisation
Incidents

0.040%

$16,000

$0.2 million

Sources: BITRE (2009), NSW Centre for Road Safety, (2009)

Contact Us
Wagga Wagga City Council
Commercial and Economic Development
P: 1300 292 442
E: business@wagga.nsw.gov.au

www.wagga.nsw.gov.au/rifl