In June 2025, the NSW Government released its final report on the state’s freight policy, prepared by an independent panel and accepted in full by the Minister for Transport. The Delivering Freight Policy Reform in NSW report sets out a strategic roadmap to futureproof NSW’s freight networks in light of the challenges posed by population growth, decarbonisation and changing technologies.
For proponents and operators of infrastructure across roads, rail and ports, the reform areas outlined in the report provide an important signal on where reform and investment are expected to focus in the years ahead.
Rail: unlocking capacity and simplifying networks
The report highlights that the management of NSW’s rail freight network by three separate operators is fragmented and operationally complex. Each network operates under different access regimes, standards and pricing models, which makes it difficult for rail freight to compete with road, especially in high-density corridors, like metropolitan Sydney.
Key recommendations for the short-to medium term include:
- the completion of a formal review of the NSW rail access undertaking and implementing a revised access instrument by 2026;
- progressing with the planning and development of the Western Sydney Freight Line and an intermodal terminal and industrial precinct at Mamre Road, Erskine Park;
- optimising the existing rail capacity through improved coordination between operators and train path allocation; and
- reviewing and revising access pricing to be consistent with road access pricing, critical to driving mode shift and reducing freight emissions.
Looking towards longer term improvements, the report recommendations include:
- exploring opportunities for dedicated freight lines to relieve congestion on the Sydney Trains network, where freight is currently deprioritised relative to passenger services;
- activating opportunities from Inland Rail, such as upgrading the Port of Newcastle and connecting regional freight to the ports;
- addressing the significant capacity issues in Greater Sydney with increased infrastructure investment;
- developing a ‘one stop shop’ for rail access in NSW, simplifying network access and planning; and
- investigating delivery of a coordinated rail network.
Road: pricing reform and resilience investment
While the panel believes that the road network is generally more resilient than the rail network, the report identifies inconsistencies in access and regulation. As local governments control over 90% of the NSW road network, fragmented regulation creates uncertainty and inhibits access for high-productivity vehicles (HPVs).
Key recommendations include focus on road pricing reform, access and resilience planning, through:
- replacing declining fuel excise revenues with a distance-based road user charging model to align costs more closely with road use and ensure sustainable funding;
- expanding access for Performance-Based Standards (PBS) vehicles;
- completing upgrades to strategic freight corridors and addressing bottlenecks, particularly connections to Port Botany and distribution hubs such as Moorebank and Eastern Creek;
- delivering additional road capacity as population increases and freight volume grows; and
- addressing long-standing gaps in rest stop facilities for heavy vehicles.
Ports: focusing on Port Botany while enabling diversification
Port Botany remains the main container port for NSW, handling over 99% of containerised imports. The report recommends that infrastructure funding continues to be directed here while capacity allows. However, it also emphasises the need to support the diversification of activity at Port Kembla and Port of Newcastle, particularly in the context of coal export decline.
The report recommends implementing aspects of the Port Botany Landside Improvement Strategy (PBLIS), shifting from penalty-based regulation towards a performance incentive model to improve efficiency. The panel believes, however, that any changes implemented from the PBLIS should be subject to review within five years, supported by regular public reporting. A key long-term priority in the recommendations is improved alignment between port infrastructure and freight rail capacity.
Next steps
The NSW Government has accepted the panel’s full suite of recommendations and will begin implementing these reforms, with further consultation expected on night-time freight movements and decarbonisation incentives. The report has underscored the importance of the relationship between the industry, federal and state governments where matters are a shared responsibility, such as heavy vehicle access and infrastructure funding.
Stakeholders involved in infrastructure planning, approvals or operations should be aware of the likely implications of these reforms, including the greater emphasis on strategic corridor reservation and potential changes to access regimes and funding models. There is a clear push towards integrated, long term planning, and unlocking the efficiencies of end-to-end supply chains.
We will monitor the implementation of these recommendations and their practical impact across road, rail and ports infrastructure. For assistance on how these reforms may impact infrastructure projects, assets or operations, please contact Chris Mitchell and Larissa Buriak.
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