On track for a stronger freight future

The Australian Government is investing up to $14.5 billion to develop and build Inland Rail, which has been declared a priority infrastructure project for Australia.

The balance of funds is provided by grant funding, ARTC’s direct contribution and through a Public Private Partnership.

Government funding

Australian Rail Track Corporation (ARTC) was appointed by the Australian Government to deliver Inland Rail under the Department of Infrastructure, Transport, Regional Development and Communications portfolio.

ARTC and the Department have been working closely with State Governments, principally through their transport agencies, to progress the project.

The Australian Government has entered into bilateral agreements with the New South Wales, Victorian and Queensland Governments, confirming a commitment to progressing Inland Rail.

Public Private Partnership

In 2017, the Australian Government confirmed the Gowrie to Kagaru section of Inland Rail in Queensland will be designed, built, managed and paid for through a Public Private Partnership (PPP) arrangement.

A PPP involves both the public sector (i.e. government) and the private sector (i.e. businesses) working together to deliver large-scale or technically complex infrastructure projects.

The 128 km Gowrie to Kagaru section is the most technically complex section of Inland Rail. It requires the construction of a 6.2km tunnel through the Toowoomba Range, numerous viaducts, bridges and crossing loops to build a new dual gauge track traversing Toowoomba, the Lockyer Valley, Ipswich and the Scenic Rim.

The Gowrie to Kagaru section is divided into three separate segments:

Gowrie to Helidon, QLD Helidon to Calvert, Qld Calvert to Kagaru, Qld

This delivery arrangement will provide effective risk allocation and harness innovative engineering and construction solutions through the private sector.

Under a PPP delivery arrangement, the private sector will design, build, finance and maintain this section and allow Inland Rail to benefit from private sector innovation to deliver these complex project elements.

Preferred bidder announced

Regionerate Rail has been selected as the preferred bidder to deliver the Gowrie to Kagaru section.

Regionerate Rail consortium is made of up Clough, GS Engineering and Construction, Webuild (formerly Salini Impregilo), Service Stream and Plenary Group.

The announcement on 22 March 2022 follows an extensive Request for Proposal (RFP) process to identify the private sector consortium partner to deliver the PPP. The bids from the three shortlisted consortia were received in June 2021.

This procurement process runs in parallel with the reference design and environmental assessment process.

Gowrie to Kagaru project factsheet

Gowrie to Kagaru project fact sheet

The Gowrie to Kagaru project fact sheet outlines the three separate projects, what a PPP is and how they work and explains why the Gowrie to Kagaru project is being funded by a PPP.

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