Local industrial companies will reap the benefits of a $40 million state government investment in freight on the South Coast Line.
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Manildra Flour Mills’ successful bid will see upgrades to a 13km stretch of track between Bomaderry and Berry.
The upgrade will allow for heavier trains, meaning cheaper, more efficient transportation of goods.
Manildra spokesman Mark Owens said the upgrade was integral to the company’s expansion.
“The demand for Australian-grown and made produce is huge, so we need efficiencies to move that produce,” he said.
“We move starch, gluten, glucose, food and industrial-grade ethanol so this will allow us to grow our volumes through the port [Botany].
“We’re fairly tied in today with what we’ve got, so this will free us up a bit.”
Mr Owens expects output will increase by a third once the rail line is improved.
This means Manildra will employ more staff, adding to a workforce of 300 at Bomaderry.
Kiama MP Gareth Ward anticipates an all-round boost to industry in the Shoalhaven.
“What we will see is businesses currently using freight on road move to using freight on rail,” he said.
“It’s not just about the businesses that are here now.
“We have a dearth of industrial land here so we’ll have businesses in Sydney looking to set up here because this connectivity exists.
“Economic growth in areas like ours relies on food, produce and raw materials, which feed and power NSW, being able to move to market efficiently.
“This program is designed to reduce the cost of getting goods to market, creating benefits to our consumers at the till of their local supermarkets and increases competition.”
Trains carrying 25 tonne axle loads will be able to use the track, meaning less pressure on roads.
Freight minister Melinda Pavey said the $137 million statewide program will remove more than 10,000 trucks from the roads each year.
“Regional NSW produces an estimated 210 million tonnes of freight a year and this is expected to increase by 25 per cent in the next 40 years,” Mrs Pavey said.
“The removal of speed restrictions and the increased capacity on the South Coast Line will lead to a more efficient movement of higher volumes of freight to Port Botany.”
