www.ara.net.au

ABN 64 217 302 489

Strategic Direction for

Australia Rail

Danny Broad, CEO, ARA

New Zealand Rail Conference 2016

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Rail is Critical for a Better Future

• For economic growth and productivity

• For international competitiveness

• For social enhancement and environmental sustainability

• A prominent employer in Australia with close to 200,000 people working in the industry

• Close to $45 billion in committed investment in the next 5 years.

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6th Largest Rail Network in the World (44,262km)

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OUR ANNUAL CUSTOMERS...

1.3 billion tonnes

of freight

627 million heavy

rail

journeys

810 million customer journeys

183 million

light rail

journeys

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Challenges

• Capital city population increases

• Freight volume to double

• Industry needs certainty

• Long-term strategic planning

• Integrated transport solutions

• Investment

• Social and Economic Benefits

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The Rail Industry Vision

The rail industry sees four key platforms going

forward to address the challenges:

• Longer term planning

• Smarter investment

• Enhanced productivity

• Practical innovation

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PASSENGER COVERPAGE

Passenger Rail

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Unprecedented Investment…

Sydney - $22.4 billion committed

(light rail and metro style heavy rail, rollingstock, regional rail)

Melbourne - $21 billion committed

(new rollingstock, RLX removal, metro

new line)

Brisbane - $5.8 billion committed(rollingstock, light rail, new line,

duplication)

But gaps exist…

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Source: Orion Advisory, The Future of Australian Passenger Rollingstock (2012)

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Passenger Rail Solutions

• Long-term planning independent of political cycles

• State and Federal governments to work together

• Harmonisation of standards

• Producing a steady, long-term pipeline

• Integration of transport modes

• Alternative investment approaches

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RAIL FREIGHT

RAIL FREIGHT

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Freight rail moves…

Bulk movements

account for 97% of the

overall freight task.

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Freight rail moves…

Containerised goods moved on

rail have increased by 65% since

2009-10, to 27 million tonnes.

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Rail’s market share of

interstate freight movements

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• National freight rail long-term supply chain

• More freight on to rail

• Road/Rail pricing – separate

regulator

• Rail to ports

• Inland Rail

Freight Solutions

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• 1700km route

• Melbourne to Brisbane,

bypassing Sydney

• $10 billion

• < 24 hours transit time

• Removing thousands of

trucks from roads

• Boosting regional

development

Inland Rail

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Perspective On Inland Rail

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RAIL MANUFACTURING

Challenges and SolutionsRAIL MANUFACTURING

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Rail Manufacturing Sector

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Current Challenges – Rail Manufacturing

Sector

• Volatile procurement cycle

• Variations relating to rollingstock specifications

• Matching rail capabilities with future opportunities

• Supply chain inefficiencies

• Maximising international opportunities

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Addressing the Challenges

• Invest in productive and efficient rail infrastructure including rollingstock

• Continue supply chain development activities

• Harness innovation

• Ensure continuity of critical skills development and training

• Pursue harmonisation of specifications issues through the development of harmonisation principles and harmonised rolling stock standards

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• Rail is doing well but there is much more to do

• There are many rail projects in place and into the future particularly

significant light and heavy passenger rail projects

• This is good for the industry and growing the economy

• Rolling stock procurement needs co-ordination and harmonisation

• Inland Rail needs to be built and freight and passenger lines

untangled in capital cities

• Port shuttles need serious attention

Summary

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Rail today