Wagga councillors will consider an urgent plan to spend more than $333,000 on stage two of the Riverina Intermodal Freight Hub to capture $35 million in state government grants.
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Wagga City Council has called an extraordinary meeting for August 6, apparently in response to guidance from the state government about potential funding.
The council will have to identify a new partner for the project to expedite a request for millions in rail funding.
The council will seek $14m for rail infrastructure and $21m for industrial subdivision from the NSW government.
Councillors will be asked for “critical” funding to secure a partner for a joint application around the project within a short time to access the major infrastructure grants.
Wagga council general manager Peter Thompson said he could not reveal the name of the partner on the application due to commercial confidentiality.
“(The hub) is progressing positively; we have secured, almost, the ideal partner,” he said.
“Both the grants are still going through the state government’s application process but the $14m for the rail siding if more progresssed.
“The $21m grant was only submitted some months ago but we understand that it is about to be shortlisted.”
Mr Thompson said he did not have a timeframe for announcing the new freight hub partner as “other pieces of the puzzle had to fall into place”.
Despite the language used in the meeting’s agenda, and its short notice, Mr Thompson said the issue was about procedure than an urgent response.
“It would have been easy for us not to do the report, but I realised that this particular contract with WSP Australia has been in place for three years and it was time to freshen it up,” he said.
Announced in 2012, the freight project was designed to “deliver strong economic dividends for Wagga”, according to Regional Development Australia.
The hub was intended to provide “freight consolidation, logistics support and open access to rail transport services for businesses throughout the Riverina and Murray regions”.
Councillors will be asked on Monday to approve an option in an existing contract with WSP Australia for project management services to cover stage two of the road and rail freight hub at the Bomen industrial estate near Wagga.
“The estimated cost to engage WSP for this scope of works is $333,460 excluding GST,” a report to councillors written by Mr Thompson stated.
According to the same report, the NSW Government has informed council that modifying its application for $14 million in funding for the freight hub’s rail siding and terminal “will ensure the success of the application”.
“The $21m industrial subdivision, enabling infrastructure and bulk earthworks is proposed to be funded through the State Government’s Growing Local Economies funding program,” the report stated.
“Council has submitted an expression of interest for this funding and it is expected that the project will be shortlisted in the very near future requiring the development of a detailed business case.
“If shortlisted, the detailed business case is expected to be submitted within a very short timeframe.”
“In order to develop the detailed business case within the set timeframes and according to the specifications of the program, it is critical that Council engage the technical services of WSP Australia now to assist with its development.”
Council will also submit an update projection for freight volume at the hub.
Construction on stage one of the freight hub started in 2016 but as of April 2018 it was unclear if US rail giant Genesee & Wyoming would continue its association with the project.
Counllors have previously approved $308,590 for the project, which has been combined with a “budget saving of $189,975 on the Bomen Roads project stage one”.
The council has already spent $145,699 of that allocation, leaving $352,866 available with which to pay WSP Australia for expanded project management services.
Wagga mayor Greg Conkey has been contacted for comment.
Cr Kerry Pascoe said he would give the motion to modify the budget careful consideration due to the importance of the freight hub.