Freight on rail

Fremantle container rail subsidy

The Fremantle container rail subsidy helps to make moving containers in and out of Fremantle Port by rail more cost competitive with road transport.  

The Department of Transport (DoT) administers the subsidy through a deed with the North Quay Rail Terminal (NQRT) operator at Fremantle Port.

Rail customers receive a $50 subsidy per twenty-foot equivalent unit (TEU).

The rail operator provides the subsidy to the rail customer by reducing the cost of the transport.

Eligibility

Eligible rail containers include:

• Full containers transported by rail between NQRT and eligible intermodal terminals (Forrestfield, Kwinana, Rockingham and Kenwick).
• Containers that are filled with hay and are received by rail at NQRT for international export.

Empty containers and interstate or Kalgoorlie-based full containers transported by rail are not eligible for the subsidy.

How the subsidy is paid

1. The rail customer receives the $50 subsidy for each eligible container.
2. The rail operator provides the subsidy to the rail customer, then invoices DoT for the subsidy provided to rail customers.
3. DoT reviews and pays the rail operator’s invoices. The rail operator is only reimbursed once they provide proof of moving an eligible TEU for a rail customer.

Why do we need the subsidy?

Fremantle Port is Western Australia’s largest cargo port, operating from the Inner Harbour in Fremantle.

In place since 2007, the subsidy encourages rail freight use to help reduce congestion on key arterial port roads, improve road safety and community amenity, and provide environmental benefits.

Governance

The State Government allocates funding for the subsidy to DoT through the State Budget.

DoT monitors:

• key performance indicators (percentage of containers on rail) (KPI)
• subsidy budget versus actual expenditure.

DoT also assesses data consistency on a quarterly basis through random audits of the rail operators documentation.

Each year, an external auditor examines DoT and the rail operator’s processes and the Office of the Auditor General audits KPI compliance.