A rail alignment is in the process of being identified from Perth, through Bunbury and on to Busselton - mainly follwing the Forrest Highway north of Bunbury, and likely following the Bussel Highway south of Bunbury, although it may come down the existing rail alignment through Boyanup. Land is being procured for this corridor as it gets finalised, but this is in the very early stages.
Expect the rail line through the Manjimup town centre to be lifted within the next 24 months, as the council has decided that the rail line splits the town centre in half. The rail corridor will be developed into open space for the town centre, and the roads will be extended across the corridor to meet their other half. A western bypass of the Manjimup town site has been planned for, and this included allowance for a rail corridor as well, but don't expect a rail line to be laid during construction of this bypass (if ever). Unless the bauxite mines at Manjimup come on stream during the next ten years (or another suitable big load customer - the food processing facility doesn't count apparently), this will not be built.
The current best case scenario is that the rail line will be rebuilt through to Greenbushes on the existing alignment, but it is also possible that the status quo continues. The good news is that the planned heavy vehicle bypass through the old Bridgetown station site is being pushed aside for the alignment that follows the west side of the river past town. There is also a heavy vehicle bypass of the Boyanup town site to the west, and the interaction of the planned road with the rail corridors (Boyanup - Capel and Boyanup - Greenbushes) will show the future of these corridors.
MRWA and PTA are having interaction issues in the southwest at various places at the moment, with the PTA not appreciating MRWA building roads across the "services suspended" corridors and the rail-removed corridors. MRWA see the corridors as good low grade alignment options, and the PTA see the use of the land as detrimental to the future use as rail corridors. Should be some fun times ahead.