Viterra told InDaily it’s in talks with the State Government about upgrade existing light-gauge railways to a standard gauge, with the possibility of linking to wider network.

“We are in discussions with key infrastructure stakeholders and Government with a view to jointly approaching the federal government for funding,” the company said in a statement.

“The level of funding will impact the quality of the rail infrastructure that can be built, Viterra would invest in its own infrastructure to facilitate the use of the rail.”

The rail network line colloquially known as the ‘Eyre Peninsula line’ connects Port Lincoln to Cummins, where it splits to Kimba and Wudinna.

Owned by the state government and under lease to freight haulage operator Aurizon, it is currently unused.

Viterra stopped using the rail lines in 2019 when it said a lack of investment caused the line to deteriorate to the extent that speed limits were cut to 20kph in some sections, helping make the transport commercially unviable.

“The condition of the infrastructure, the restrictions on operations, and ultimately the cost all contributed to rail no longer being efficient or competitive to move grain,” it said.

“It was a significant decision that was very carefully assessed and considered based on the situation and information at the time.”

When it stopped using rail, Viterra said that if the situation changed on Eyre Peninsula and rail became efficient and cost effective compared to road freight, it would reconsider its move.

There would be enormous benefits and opportunities for the community and other industries if a standard gauge line could be established on the Eyre Peninsula that connects with the national rail network

“For it to be an efficient and cost effective solution to transport grain, we want to see the rail line upgraded to standard gauge and linked with existing national railway infrastructure,” it said.

“This would enable grain rail assets to be moved around South Australia to serve areas of most need and enable more flexibility around managing volumes for shipping and growers.”

Viterra said 1.3 million tonnes of Eyre Peninsula grain could move from road to rail ‘in an average year’ under the plan.

“In our view there would be enormous benefits and opportunities for the community and other industries if a standard gauge line could be established on the Eyre Peninsula that connects with the national rail network,” the spokesperson said.

“There are stakeholder groups who are calling for it to go up to the ARTC national line which would go to Whyalla through Kimba, probably.

“We would be in support of that because it would open up more markets domestically – it might open up opportunities for minerals to go through other export pathways.”

Marie Shaw KC, a barrister campaigning for the re-introduction of rail on the Eyre Peninsula, said the announcement was a step in the right direction.

“It’s a step towards communities on the Eyre Peninsula once again thriving,” she said.

“It will link them to employment opportunities and the circular economy – it’s a lifeline that’s needed because those communities are dying.”

Shaw, who helped start the March for Eyre action group which advocates for the region, said she hopes a return to freight rail will pave the way for passenger services down the track.

“The proposal we’ve argued for is that it’s critical the line connects to the national network to give people the ability to travel to Adelaide and elsewhere,” she said.

“It will save lives. It will boost the economy it will be the future, the rest of Australia, is embracing rail, reducing carbon emissions, reducing transport times and reducing the risk to people’s lives.

“The roads aren’t going to last with the amount of trucks on them, elderly people now will not drive at night – they don’t want to sit behind trucks.”

Shaw said regional transport spending should be increased.

“We are not talking about billions like the south-eastern corridor: we are talking about $700 million to reopen the rail on Eyre Peninsula,” she said.

“It was $160 million to shave off three minutes of the O-Bahn to the city, but we can’t get $700 million to reopen a rail that will make the roads safer and make a place two and a half times the size of Tasmania revitalised?”

Shaw gave evidence before an ongoing parliamentary select committee on public and active transport in September, saying a whistleblower in the Department of Transport and Infrastructure had told her that reports favouring rail were being ‘buried’.

The department denied the claims.