Like some other freight-oriented rail investments, the inland railway has been advocated partly on the grounds that it will stimulate the economies of some rural regions.

The aim of this study is to find out if railways are improving their financial performance following the industry reform programs initiated by the State and Commonwealth Governments in the 1980s.

BTCE (1992) Social cost of transport accidents in Australia, Report 79, p. 52, estimated the total cost of rail accidents in 1988 as $94.5 million (in 1988 dollars).

The value of transport safety is an important input to decisions on policies and investments with safety implications and for measuring the burden of transport accidents to the community.

Indicators currently published by Australian railways do not measure service standards from the viewpoint of customers, but rather are based on statistics compiled by management for other purposes.

Public debate on whether the road or the rail sector is relatively more disadvantaged in terms of competition tends naturally to be driven by the specific interests of the protagonists.

Transport models have been used for several decades now, both for research, and as an analytical tool to assist planners and decision-makers.

Increasingly in Australia, trucking is an essential feature of economic activity, with road being the only mode possible for much freight traffic (eg in cities), and with rail tending to be less competitive than road on many intercity links.

Historically, railways have provided the means to open up new areas for economic development. When built to link existing centres of economic activity, they have given rise to greatly increased opportunities for trade and travel.

The BTRE projects that the total freight task will continue to grow strongly. Such growth will increase the infrastructure maintenance needs and possibly hasten the need for capacity expansion.