Development of The National Network
In the 19th century, railways were created to enable agricultural and minerals traffic to be carried to ports for export, and to allow passenger and freight operations between colonial capitals and regional areas. Coastal shipping handled most passenger and freight traffic between the colonies. John Whitton was appointed Engineer in Chief of the New South Wales Government Railways in 1856 and immediately advised his government that the short railway that had been opened in Sydney be converted to broad gauge in case the railways of New South Wales, Victoria and South Australia ever joined, but he was refused because "... his political masters ... were unable to envisage intercolonial traffic ever developing." However, the problem of different gauges became apparent with the meeting of lines of the different systems at Albury in 1883 and Wallangarra in 1888.
In the 1890s, the establishment of an Australian Federation from the six colonies was debated. One of the points of discussion was the extent that railways would be a federal responsibility. A vote to make it so was lost narrowly, instead the new constitution allows "the acquisition, with the consent of a State, of any railways of the State on terms arranged between the Commonwealth and the State" (Section 51 xxxiii) and "railway construction and extension in any State with the consent of that State" (Section 51 xxxiv). However, the Australian Government is free to provide funding to the states for rail upgrading projects under Section 96 ("the Parliament may grant financial assistance to any State on such terms and conditions as the Parliament thinks fit").
The Australian Government has full responsibility for railways in the federal territories, although the Northern Territory's railway is now owned and operated by the private AustralAsia Rail Corporation and the only railway in the Australian Capital Territory, the Canberra-Queanbeyan railway is now operated by the Rail Corporation New South Wales.
In 1910, a conference of Railway commissioners chose 4 ft 8 1⁄2 in (1,435 mm) to be the standard gauge. Over the decades, many plans were floated to fix the break of gauge. These failed, mainly because they were too ambitious and proposed to convert all lines, even lines of little economic value.
Read more about this topic: History Of Rail Transport In Australia
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