In 1857, transporting a ton of goods from Sydney to Bathurst required a bullock cart, took 23 days, and cost 15 pounds 10 shillings (approximately $3,000 in today’s money). Once a rail connection was established in 1871, travel time shrank to just 16 hours and price reduced to 2 pounds 12 shillings per ton.
Building railways revolutionised transport across NSW, overcoming the tyranny of distance, expanding economic development and linking the far regions with Sydney’s ports.
Between 1870 and 1880 the number of passengers travelling had risen from 776,707 to 5,440,138 in a decade, and the distance of railway line in the state had increased from 339 to 849 miles.
NSW Treasury was aware that in the short-run some rail lines would operate at a loss. According to Railway Commissioner John Rae, ‘it was expected that, with the growth in the volume of traffic…. earnings would not only cover working expenses, but also service the debt by which such railway construction was financed’.
Cheap capital was available from London, and in the period from 1879 to 1886, New South Wales raised some £27 million in overseas loans and became recognised as one of the largest borrowers to appear regularly on the London capital market.
Rail lines were strategically built to ensure Sydney rather than Melbourne, Brisbane or Adelaide was the destination for goods being produced around the NSW.
The fact that all rail lines were tied back to Sydney ensured that the financial benefits of the interior’s lucrative commerce were a net gain for the NSW budget, especially since much of this transhipped produce was for export.
When ‘the Rail’ arrived at a rural town, new small-scale industries developed, partly to serve the railways, partly to serve the increased population, but also to take advantage of access to local products.
Last updated: 04/11/2024
NSW Treasury pays respect to the Traditional Custodians and First Peoples of NSW and acknowledges their continued connection to country and culture.
