The Western Australian government has introduced the Rail Freight System Bill 2026, a step towards regaining control of the state’s freight rail network 26 years after it was privatised. If passed, the bill would establish a legal framework for negotiations with Arc Infrastructure and its parent company, Brookfield.
The network spans about 5,500 kilometres and carries grain and minerals between regional areas and the ports of Geraldton, Fremantle, Bunbury, Albany and Esperance. It has operated under private ownership since 2000, when the network was leased for 49 years after the rail system accumulated significant debt. The government has said the proposed purchase is not a criticism of the current owner.
The government says public control could support more targeted investment and increase use of the rail system. The Rail, Tram and Bus Union supports the proposal, with WA branch secretary Josh Dekuyer arguing that public ownership would direct taxpayer-funded returns into local services. Grain handler CBH Group has also welcomed the move, saying a buyback could help infrastructure keep pace with increased production.
A central issue is whether the purchase could enable the reopening of the Tier 3 grain lines, which were closed in 2014. Farmer Jane Fuchsbichler said the closure of more than 500 kilometres of track had increased the number of trucks on roads and placed additional pressure on local governments. In the Goldfields, public ownership is viewed as a possible way to progress plans for a railway realignment around Kalgoorlie-Boulder’s Super Pit and an intermodal transport facility.
However, parts of the former Tier 3 network are in poor condition. The government has not provided a purchase price, describing it only as a significant investment, while an independent engineering report from 2020 estimated that restoring the line could cost hundreds of millions of dollars. Former Pastoralists and Graziers Association president Tony Seabrook put the overall figure in the billions and questioned whether greater government involvement could create additional bureaucracy.
The WA Nationals have welcomed the announcement but called for more transparency. Shadow transport minister Steve Martin said further information, especially about the cost, was needed before the Coalition could fully assess the proposal. The government says any transaction would cause minimal disruption to Arc Infrastructure’s customers and staff; Brookfield has declined to comment.