Movement at the station in WA’s bid to buy back railways covering area twice the size of Great Britain

The State Government’s mission to buy back WA freight railways from a Canadian investment behemoth has advanced beyond a seemingly frosty start earlier this year. Latest budget papers confirmed Treasurer Rita Saffioti, who also holds the State’s transport portfolio, has allocated $8.3 million for legal and commercial advice over the coming financial year to hash out available options for how a deal might take shape. The allocated funds are a solid sign the WA Government is pushing ahead with a declaration made by Premier Roger Cook and his deputy in January to bring sprawling railways that cover an area twice the size of Great Britain back into State hands. But the absence of any other clear financial projections suggests the cost of taking back the lease — which has another 24 years to run — are still being tightly held or not fully known ahead of any meaningful discussions. In February Ms Saffioti said there had so far been no response to a letter sent to Arc Infrastructure, the WA company that manages the 5500 kilometres of rail for Brookfield Infrastructure. That company’s ultimate parent is multinational alternative investment house Brookfield Corporation. However a recent update from the Treasurer’s office implies the cold call has since progressed to a two-way dialogue. “The State Government is engaging with Brookfield regarding the proposed freight rail buy back of Arc Infrastructure,” a spokesman for the minister said. “The allocation in the budget will assist with the progression of negotiations including the provision of external commercial and legal advice.” The spokesman said the engagement of external commercial and legal advice had also been undertaken “while other advisory services will be brought in as required.” One well-placed source suggested Arc Infrastructure had provided the State Government with figures that would inform an initial valuation of the network. The State Government acknowledged receipt of a document, but suggested it was part of a separate review into the Railway Access Code rather than direct negotiations. Arc Infrastructure and its parent company Brookfield declined to comment on that particular item. In its reasoning for taking back control of the network, the State Government claimed it had “little capacity” to support the industries using the rail and that public control would allow for “greater and more targeted government investment.” Grain handlers are eager to get more tonnes moving on the network, and have long-been displeased with what they claim is a lack of investment from Arc and Brookfield in the rail infrastructure. And while it is still waiting for more detail on the proposed deal, the mining industry is so far unopposed to an ownership change. Australia’s largest rail freight operator Aurizon has also backed a return of WA rail infrastructure to public hands. “Importantly, the policy aims to improve the efficiency and capacity of the freight rail network, and ultimately to shift heavy freight from road to rail, which has our support,” a spokesman for the listed company told The West Australian. “Rail is best positioned to do the heavy lifting for WA producers and industry, supporting their growth and continued success in global markets.” Recent financials lodged by Arc Infrastructure’s Australian parent BPIH Pty Ltd show the group made a $17.5m profit in 2024, compared with $34.9m the year prior. Tonnes shifted were lower at 51.7mt.