Road costs four times more than rail
By ERWIN CHLANDA
Measured as energy consumed per tonne of freight moved, road transport is four times more expensive than rail.
This is one certainty in the current diesel price fiasco, and has a special meaning for Alice Springs which is at the end of 1500 km of railway, from north or south, and where "it's the freight" is a common explanation for high prices.
As there is no certainty about the Middle East oil price, current taxpayer-funded relief measures such as cuts to the fuel excise duty rate and the heavy vehicle road user charge reduction will become difficult to justify. There can be a cheaper choice: Rail.
The Institute for Energy Economics and Financial Analysis (IEEFA) today described Australia’s use of diesel as “skyrocketing” and published suggestions about how truckies can reduce fuel consumption – steady acceleration, tyre pressure, low-rolling resistance tyres, removing non-aerodynamic features – lights, bull bars and horns, and so on.
“Each 10% drop in vehicle weight can save five to 10% in fuel.
“Planning and logistics: Telematics systems, better route planning, delivery scheduling and customer integration," all will help, says IEEFA.
“AI management and online matching platforms can reduce the about 40% of under-utilised truck space and one in four empty trips (25%).
”Fuel-efficient vehicles: Larger dimension, high-productivity vehicles through load consolidation (up to 20%) and battery electric vehicles (100%).”
IEEFA says rail needs to be part of the solution, suggesting “an accompanying shift from road to rail freight is difficult but worth pursuing”.
IEFFA Lead Analyst James Bowen says: “Even if global fuel supplies were to return to normal levels, which appears unlikely in the short-term, the effects of the Iran crisis could be felt for a year or more afterwards.”
Mr Bowen says increased rail use “stacks up” for east-west transport across the nation.
Speaking with the Alice Springs News he described obstacles – perceived or actual – to the greater use of rail: Speed, flexibility, scheduling, reliability.
However, a coherent initiative to integrate the much cheaper rail in long distance freight is clearly not under way.
The “first mile” and the “last mile” are considerations in the use of rail, says Mr Bowen: The transport of freight from the depot to the rail yard and the rail yard to the store. In the case of the two main Alice supermarkets, for example, that is a mere few hundred metres.
Road trailers can travel on rail wagons which is called intermodal transport or piggyback transport, widely used in Europe and the USA, according to information obtained through ChatGPT.
The 831 km standard gauge line between Tarcoola (on the east-west rail link) and Alice Springs was built between 1975 and 1980 by engineer Des Smith for $145m, replacing the old narrow-gauge Ghan line.
It was later extended to Darwin. The Centre is well equipped with rail assets and should push for their better use.
We have asked Woolworths: “Why is Woolworths using road instead of rail to transport goods to its store in Alice Springs? If they use both, please advise the respective percentages (tonnes).”
And: “Woolworths pricing policies – is it all the same across the nation?”
We will report any replies as an update.
PHOTOS obtained through ChatGPT.
UPDATE 31/7/26 9am: Woolworths declined to answer our questions.