Robbie Katter demands action to fix cattle train impasse

Mr Katter said tensions were simmering between operators in the continued fall-out of Labor's privatisation of Queensland's rail.

In February the state government selected Watco East West to operate cattle rail transport services in North West Queensland from 2022 following a competitive procurement process, knocking off incumbents Aurizon.

It sparked an indefinite shutdown of cattle freight on the line and Mr Katter made calls for immediate intervention from the State Government to address what he called "a fiasco".

He said Watco East West publicly stated they were having constructive talks with previous operator Aurizon and the State Government and hoped for a resolution by late April.

But he said "only a dismal fraction of cattle freight" has resumed on the line weeks later.

He said an estimated four trains have run for all of 2022 - a sharp decline from a typical seven trains per week.

Queensland Transport Minister Mark Bailey had replied to say transitionary arrangements were in place as Watco worked on delivering track and loading yard access, driver recruitment, cattle wagon refurbishment, and customer engagement and were working with producers, processors and councils about service arrangements and availability.

However, Mr Katter said the issue has only worsened, with cattle holding yards and corridors still blocked by Aurizon, preventing use by Watco and all but confirming alarming predictions that the service could be largely offline for two years.

"This problem has been created by the State Government, which took the contract from Aurizon, and the problem needs to be urgently fixed by the State Government," Mr Katter said.

"This impasse is forcing cattle from the rail to the road, spiking transport costs for all players in the supply chain and compromising road safety, exacerbated even further by impacts of recent high rainfall."

While Watco won the cattle contract, previous operator Aurizon absorbed the operational legacy of the former Queensland Rail, including their cattle yards, at key locations along the lines, the retention of local staff and drivers where possible and the running of driving training facilities in places like Cloncurry.

Mr Katter said Aurizon was reportedly padlocking cattle holding yards and blocking corridors, preventing use by Watco and bringing cattle trains to a standstill.

"Did the Government think that Aurizon would kindly offer up their assets after losing the cattle contract to assist their competitors? This is a case of a very poorly thought-out decision-making process," Mr Katter said.

He said the farce was an example of the slap in the face that Bligh Labor Government's privatisation of the rail line in 2010 had delivered to regional communities.

"That move cost hundreds of jobs and precipitated a slow and substantial decline in service delivery," he said.

"Now, the Palaszczuk Labor Government has thrown the rail freight contract to the control of the 'free market' which is all well and good, however they have failed to consider the fact that there is only one rail company that owns cattle yards along the line and that company is not the one that won the tender."

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