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www.ara.net.au 
ABN 64 217 302 489 
Heavy Haul 
Bryan Nye OAM- CEO 
27 August 2014
www.ara.net.au 
6TH Largest Rail Network Globally
www.ara.net.au 
OUR ANNUAL CUSTOMERS... 
930 million tonnes of freight 
(23.4% + since 2008) 
620 million heavy rail journ...
www.ara.net.au 
Coal 
Ore 
Sugar 
Bauxite 
Grain 
Other Bulk 
Source: Royal Bank of Scotland Transport Equities Update (20...
www.ara.net.au 
Rail freight – The big picture 
2010/11 
2011/12 
Change 
Ore 
435.08 
496.25 
14.06% 
Coal 
305.06 
306.7...
www.ara.net.au 
Rail Industry: Size 
•Labour force: 44,210 people (+70,000 working in industries supporting rail) 
•Invest...
www.ara.net.au 
Freight Rail key concerns 
•Rail freights poor market share on North- South corridor- i.e between Brisbane...
www.ara.net.au 
Rail Market Share of Interstate Freight Movements 
TARCOOLA 
BROKEN HILL 
BRISBANE 
ALICE SPRINGS 
ADELAID...
www.ara.net.au 
Trends In Modal Share – Road vs Rail 
Key questions: 
•Is inter-city rail freight in terminal decline, or ...
www.ara.net.au 
Rail’s share declining in some products 
Rail’s share of agricultural products has significantly decreased...
www.ara.net.au 
Locomotive Fleet 
0 
20 
40 
60 
80 
100 
0 
100 
200 
300 
400 
500 
600 
less than 5 years 
6 to 10 year...
www.ara.net.au 
Some lines need work!
www.ara.net.au 
Objectives of ARA for rail freight 
1. Equity of pricing 
2. Increased rail infrastructure investment 
3. ...
www.ara.net.au 
What do rail customers want? 
14 
•Reliability (meet advertised availability times) 
•Right balance of ser...
www.ara.net.au 
1. Equity of Pricing 
•Trucks currently pay less than the true cost of the infrastructure they operate on,...
www.ara.net.au 
Equity of Pricing 
•Levelling playing field, not subsidising 
•Supporting costs of maintenance and new inf...
www.ara.net.au 
Equity of Pricing 
•A 36 tonne truck does as much equivalent damage to roads as 9,600 cars. 
•Yet weight i...
www.ara.net.au 
2. Increased rail infrastructure investment 
•Along with much publicised scrapping of federal funds for pa...
www.ara.net.au 
Complementary modes 
Road 
-Flexible, responsive 
-Door to Door 
-Suits small volumes 
-Large Volumes help...
www.ara.net.au 
Variability of Agricultural Production 
Source: ABARE 2010 
0 
2 000 
4 000 
6 000 
8 000 
10 000 
12 000 ...
www.ara.net.au 
Funding challenges of Rail 
•Almost every state has a different ownership structure for rail freight lines...
www.ara.net.au 
Inland Rail: TRANSFORMING the transport sector 
•Increase rail’s reliability and efficiency 
–double stack...
www.ara.net.au 
Inland Rail- demand analysis 
•There is demand for the railway that would result in a freeing of capacity ...
www.ara.net.au 
Inland Rail – progress 
•$300m currently in Federal budget from 2014/15 for pre construction works 
–A 10 ...
www.ara.net.au 
Inland Rail- Implementation Group 
•Announced November 2013 
•First priority is to settle alignment and re...
www.ara.net.au 
3. Reduced regulatory burden for rail 
•Environmental and emissions standards and measures which fail to l...
www.ara.net.au 
Reduced regulatory burden for rail 
•Safe, environmental benefits, efficiency 
•Safety and Environmental b...
www.ara.net.au 
Rail – Future is bright 
•Massive investment in national network 
•Funding for urban projects – Cross City...
www.ara.net.au 
Rail… it’s always better 
•Travelling to work 
•Sending freight 
•Getting there safely 
•The impact on the...
www.ara.net.au 
Thank you
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Bryan Nye - ARA - Australasian Railway Association address

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Bryan Nye delivered the presentation at the 2014 Heavy Haul Rail Conference.

The 2014 Heavy Haul Rail Conference had a focus on driving efficiency with smarter technology. Australasia’s only heavy haul rail event is the annual meeting place for professionals interested in the latest projects, technologies and innovation in this dynamic sector.

For more information about the event, please visit: http://bit.ly/hhroz14

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Transcript of "Bryan Nye - ARA - Australasian Railway Association address"

  1. 1. www.ara.net.au ABN 64 217 302 489 Heavy Haul Bryan Nye OAM- CEO 27 August 2014
  2. 2. www.ara.net.au 6TH Largest Rail Network Globally
  3. 3. www.ara.net.au OUR ANNUAL CUSTOMERS... 930 million tonnes of freight (23.4% + since 2008) 620 million heavy rail journeys 787 million customer journeys (11.8% + since 2008) An extra 80 million trains trips in the last 4 years! 167 million light rail journeys
  4. 4. www.ara.net.au Coal Ore Sugar Bauxite Grain Other Bulk Source: Royal Bank of Scotland Transport Equities Update (2012) Grains 3-4% Bulk Commodities 930 million tons Non-Bulk Commodities 20 million tons Rail Freight Rail Freight moves nearly 1billion tons of goods p.a. (2011) Coal Ore Sugar Bauxite Grain Other Bulk
  5. 5. www.ara.net.au Rail freight – The big picture 2010/11 2011/12 Change Ore 435.08 496.25 14.06% Coal 305.06 306.77 0.56% Sugar 25.23 25.43 0.79% Bauxite 17.79 17.35 -2.47% Other Bulk 56.76 61.52 8.39% Non-Bulk 19.58 22.32 13.99% Total 859.5 929.64 8.16% * Numbers in million tones.
  6. 6. www.ara.net.au Rail Industry: Size •Labour force: 44,210 people (+70,000 working in industries supporting rail) •Investment commitments in rollingstock and track $36 billion •Track 44,262 km in Australia •Over 2,276 locomotives and 32,000 wagons and carriages
  7. 7. www.ara.net.au Freight Rail key concerns •Rail freights poor market share on North- South corridor- i.e between Brisbane, Sydney and Melbourne •Decreasing market share of movement of agricultural products by rail •Declining investment in rail freight infrastructure •Regulatory burden which disadvantages freight rail
  8. 8. www.ara.net.au Rail Market Share of Interstate Freight Movements TARCOOLA BROKEN HILL BRISBANE ALICE SPRINGS ADELAIDE DARWIN PERTH SYDNEY MELBOURNE 90%+ 80%+ 80%+ 5% 5% 21% 5%
  9. 9. www.ara.net.au Trends In Modal Share – Road vs Rail Key questions: •Is inter-city rail freight in terminal decline, or can it make a significant contribution to the national economy? •If it can make a significant contribution, what in broad terms is required to make this happen? 20% 40% 60% 80% 100% Road Rail
  10. 10. www.ara.net.au Rail’s share declining in some products Rail’s share of agricultural products has significantly decreased in some markets (source- Graincorp submission to QLD Parliament)
  11. 11. www.ara.net.au Locomotive Fleet 0 20 40 60 80 100 0 100 200 300 400 500 600 less than 5 years 6 to 10 years 11 to 15 years 16 to 20 years 21 to 25 years 26 to 30 years more than 30 years Cumulative total (%) Number of locos Diesel Electric/ XPT Average age Australia 21 years Average age USA 8 years
  12. 12. www.ara.net.au Some lines need work!
  13. 13. www.ara.net.au Objectives of ARA for rail freight 1. Equity of pricing 2. Increased rail infrastructure investment 3. Reduced regulatory burden for rail
  14. 14. www.ara.net.au What do rail customers want? 14 •Reliability (meet advertised availability times) •Right balance of service, cost and risk •Understand customers needs •Need to be able to compete with road freight – productivity and flexibility •Logistics – efficient terminal access and locations •Price
  15. 15. www.ara.net.au 1. Equity of Pricing •Trucks currently pay less than the true cost of the infrastructure they operate on, in contrast to the freight rail industry. •Investment in road and rail are based on different cost recovery principles. •Through the efforts of the ARA and its members, we are actively supporting proposals for heavy vehicle charging and investment reform.
  16. 16. www.ara.net.au Equity of Pricing •Levelling playing field, not subsidising •Supporting costs of maintenance and new infrastructure •Transport Service Contracts in Queensland are a positive small scale example- providing support for livestock transportation
  17. 17. www.ara.net.au Equity of Pricing •A 36 tonne truck does as much equivalent damage to roads as 9,600 cars. •Yet weight is not a factor in what road freight is charged, in contrast to rail freight. •Proper road pricing not a new concept. Even Adam Smith advocated road pricing in 1776! From ‘The Wealth of Nations’: “When the carriages which pass over a highway or bridge…pay tolls in proportion to their weight or their tonnage, they pay for the maintenance of those public works exactly in proportion to the wear and tear which they occasion of them. It seems scarce possible to invent a more equitable way of maintaining such works”.
  18. 18. www.ara.net.au 2. Increased rail infrastructure investment •Along with much publicised scrapping of federal funds for passenger rail, freight rail funding is also in decline. •The partially funded Inland Rail is arguably the only major new federally funded infrastructure project on the horizon.
  19. 19. www.ara.net.au Complementary modes Road -Flexible, responsive -Door to Door -Suits small volumes -Large Volumes helped by increasing access to High Productivity Vehicles Rail -Suits long haul -Large volumes -Fixed times and often long term contracts -Emissions and safety benefits
  20. 20. www.ara.net.au Variability of Agricultural Production Source: ABARE 2010 0 2 000 4 000 6 000 8 000 10 000 12 000 14 000 16 000 18 000 20 000 kt Variability of production New South Wales Western Australia Victoria
  21. 21. www.ara.net.au Funding challenges of Rail •Almost every state has a different ownership structure for rail freight lines •Differences within state networks also (eg John Holland and ARTC in NSW, Aurizon and QR in QLD) •New project funding hard to ‘sell’ to politicians. Maintenance funding even harder.
  22. 22. www.ara.net.au Inland Rail: TRANSFORMING the transport sector •Increase rail’s reliability and efficiency –double stacking, longer trains –agricultural benefits- terminals etc. –avoids Sydney bottlenecks –2m tonnes of freight each year simply pass through Sydney –reduce travel times by up to 7hrs, train speeds of 110kmph •Increase rail’s market share –80% on Brisbane - Melbourne –up to 25% for shorter legs
  23. 23. www.ara.net.au Inland Rail- demand analysis •There is demand for the railway that would result in a freeing of capacity through Sydney (removing 5 northbound M-B services from the Main North Line by 2030) •Rail mode share increases to be greater than road’s share Melbourne to Brisbane freight modal share without Inland Rail Melbourne to Brisbane freight modal share with Inland Rail commencing in 2020
  24. 24. www.ara.net.au Inland Rail – progress •$300m currently in Federal budget from 2014/15 for pre construction works –A 10 year timeline for construction from 2016-2026 –Stated link to a Port of Brisbane proposed new corridor through Brisbane. •Critical element is the tunnel through the Toowoomba Range and route down to Port of Brisbane •Remainder of funding to be determined
  25. 25. www.ara.net.au Inland Rail- Implementation Group •Announced November 2013 •First priority is to settle alignment and reserve corridor. •Chaired by former Deputy PM John Anderson •VIC, QLD, NSW Governments each have a representative on the group, as does the ARTC
  26. 26. www.ara.net.au 3. Reduced regulatory burden for rail •Environmental and emissions standards and measures which fail to look at the big picture are a risk to the rail industry •The newly established National Rail Safety Regulator is a win for the industry, but some states are still yet to sign up
  27. 27. www.ara.net.au Reduced regulatory burden for rail •Safe, environmental benefits, efficiency •Safety and Environmental benefits not fully appreciated •Progress requires investment in infrastructure, processes and systems •It requires the rail industry to play its part According to BITRE reports- Rail is the cheapest mode of transport for all inter-capital freight movements
  28. 28. www.ara.net.au Rail – Future is bright •Massive investment in national network •Funding for urban projects – Cross City Tunnel, Melbourne Metro, electrification of Adelaide’ s urban network, Perth expansion Untangling freight and passenger networks •Access to ports •New train control technology (ATMS)(GSMR) •Light Rail emergence •High Speed Rail •Intermodals being developed •Level Crossings being upgraded •Inland Rail
  29. 29. www.ara.net.au Rail… it’s always better •Travelling to work •Sending freight •Getting there safely •The impact on the environment •Costing less
  30. 30. www.ara.net.au Thank you
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