19th-century idea boosts Australia's 21st-century economy

It's been described as the final act of Australian nation-building. The recently completed railroad courses up from the temperate vineyards of the south, through the deserts of Alice Springs and the Red Center, to the Top End port city of Darwin. [Editor's note: The original version incorrectly called The Ghan the world's longest railroad.]

While a transcontinental railroad seems so 19th-century, the government touts the project as a cutting-edge push into the global markets of Southeast Asia. The immediate impact, however, has a familiar frontier-days ring to it: Prosperity is coming round the bend to the dusty, one- stoplight towns in Australia's Outback.

The nailing of the last spike in October completed a dream first proposed by a Melbourne businessman in 1858. A track had been built between Adelaide and Alice Springs, but it wasn't until 2001 that construction began on the remaining 880 miles from Alice Springs to Darwin.

Now, the Northern Territory towns of Katherine and Tennant Creek, each home to fewer than 10,000 people, are beginning to see its advantages.

"I just had a report that there has already been a 15 percent reduction of freight charge into Darwin as a result of the new train," says the mayor of Katherine, Jim Forscutt, who expects the costs of all goods sold by the town to eventually fall by one-third. "Katherine will now serve as a hub - we can now sell our lemons, pink grapefruit, and bananas and make some money out of all of this."

The building of the final line also pumped millions of dollars into the local economy. Of the $805 million worth of contracts, $507 million were awarded to Northern Territory companies. The regional governments of Northern Territory and South Australia each kicked in $126 million; the rest was financed by the federal government and private investors.

High hopes are riding on the investment. According to a Northern Territory fact sheet, the national GDP is expected to increase by $3.35 billion during the operational phase - between 2003 and 2025.

The journey from Adelaide to Darwin that once took a week now takes only 48 hours. That speed has attracted private shipping companies like Freightlink to move their goods off trucks and onto the train. It has also enhanced the attractiveness of the passenger line called The Ghan. In January, Freightlink began carrying mining equipment, furniture, and fresh produce, among many other products, five times a week to Darwin. [Editor's note: The original version incorrectly referred to The Ghan as shipping freight as well as transporting people.]

Although Freightlink anticipates moving only 350,000 metric tons of goods to Darwin in their first year of operation, it hopes that figure will rise to 800,000 metric tons in just a few years. Until recently an estimated 600,000 metric tons of freight traveled this route by road.

Within two months of the start of the railway, the number of trucks through Northern Territory towns have been visibly reduced.

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