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$vuetify.icons.faPhone1300 650 620

Rail closure reignites rears of supply chain disruption in WA

Media release

Rail closure reignites rears of supply chain disruption in WA

Media release
The most isolated city in the world has once again become even more isolated, with the Australian Rail Track Corporation announcing that the East–West rail line will be closed for at least a week to repair track that was washed away during heavy rainfall in South Australia.

WA businesses are again monitoring their stock levels closely, with further rainfall predicted and memories resurfacing of the similar disruption experienced in 2022.

In January 2022, a one in 200 year weather event washed out the rail link in almost the same location, causing significant disruption and delays to the Western Australian economy.

That flood led to major shortages in materials for the residential building industry. With many products affected, it took more than six months for supply chains to recover, delaying the delivery of thousands of homes.

HIA Executive Director WA, Michael McGowan said the national rail link built through a floodway is no longer fit for purpose.

"We understand that weather events are changing and becoming increasingly unpredictable, which is even more reason why we need a long term solution for the reliability of the East–West rail network — not another patch up job that simply gets us through to the next event.

“The building industry is being asked to continually lift the bar when it comes to climate resilience, yet our key logistics corridor from east to west keeps letting us down.

“This is no longer an isolated issue. The rail line has now been impacted three times in the past three years. The Federal and WA Governments must commit to a long term resolution to ensure WA is never again cut off from the East Coast.

“A patchwork solution will get things moving this time, but it is time for State and Federal Governments to begin long term planning for a solution that won’t be washed away.

“We can no longer accept that just because we are isolated, disruption is simply part of doing business in WA.

“WA businesses transporting materials into the state shouldn’t have to carry significant contingency stock in case it rains in South Australia.

“Such contingency means consumers are unlikely to feel major impacts if the rail is back online within a week — but if the outage goes longer, it might be worth grabbing an extra pack of toilet paper,” concluded Mr McGowan.

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