Freight rail operators carrying scrap metal from Canberra to Port Botany want to expand their container haulage work to include consumer goods for big-box retailers, and the territory's waste.
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Espee Railroad Services corporate services manager Bruce Blain says a new rail partnership has shown cost savings and reliability on a weekly service to Sydney provides a compelling case for Costco and IKEA to have their containers come to Canberra by rail instead of road.
"Now we are running to the port with container trains, we could feasibly bring their containers to Canberra. We are bringing back an empty train, basically," Mr Blain said.
Espee Railroad Services is in partnership with Access Recycling and Chicago Freight Car Leasing Company to take about 50 shipping containers a week away, replacing about five b-double trucks on the road.
Canberra Rail Museum formed Espee Railroad Services to increase its cashflow for restoring and running steam locomotive and passenger trains, and is bidding for more freight business out of Canberra.
Espee employs nine full-time staff, and about 15 part-timers who provide driving and observation services. On the northern NSW line Espee is providing locomotives and drivers to Australian Rail Track Corporation, and has won contracts on the main southern line between Albury and Sydney.
He said recent approval for logs being freighted from Goulburn to Sydney was a reminder of a similar enterprise out of Canberra, which could be resurrected in the future.
"In the past we have successfully railed logs from Hume, the NSW government put about 4000 steel sleepers into that [spur] line, the only reason we are not using that line is the Jerrabomberra [rail] bridge failed, and needed $150,000 (for repairs)."
The railway society had previously run passenger trains on the line to Royalla, but did not have the money to repair the bridge. "The NSW Government said if we get (freight) traffic back, they would spend that money."
Mr Blain said from a loss-making enterprise three years ago, the rail society was now in a stronger financial position and growing its tourism activities. Passenger numbers had grown 50 per cent in the past year and the museum now opened seven days a week.
The rail museum's marketing manager Garry Reynolds said a steam train which ran to Goulburn on a recent festival weekend attracted 2300 passengers. The freight business was enabling the society to subsidise passenger trains, but competition for even small amounts of freight business was tough.
"It is very cut throat, the only way we compete, we are up against massive corporations, we find our little niche. When the elephants fight, the grass gets trodden on, and we are a little blade of grass compared to their size. We want to build this commercial operation up," Mr Reynolds said.
Vandalism and theft were derailing some of the society's profit. A train parked overnight awaiting track repairs was milked of its fuel, and silver steel carriages rescued from the scrap heap, which the society wants to restore into luxury carriages, were vandalised.
"We had people staying out at night trying to catch them," Mr Reynolds said.
