International Opportunities for Australia’s Heavy Haul Sector and Austrade Assistance Peter Ironmonger – rail sector lead ...
Australia Unlimited 
Agenda 
•Global HH Opportunities and Growth Areas 
•How to Assess and Pursue the Opportunities 
•Aust...
Australia Unlimited 
Is there an Australian “brand” in HH rail? 
•Feasibility and design, simulation modelling, systems in...
Australia Unlimited 
Opportunities and areas of growth – matched with Australian capability 
•GCC – UAE, Saudi Arabia, Oma...
Australia Unlimited 
- $15-25 billion 
- Linking 6 GCC members West to East: Kuwait, Bahrain, Qatar, KSA, UAE, and Oman vi...
Australia Unlimited 
GCC rail opportunities 
Picture provided by Saudi Railway Company
Australia Unlimited 
Assessing and Pursuing global rail opportunities 
•Research and understand your global competitors an...
Australia Unlimited 
How Austrade can assist Australia’s rail sector 
•By knowing your (and the industry’s) capabilities a...
Australia Unlimited 
Austrade’s global network
Peter Ironmonger, rail sector lead, 
Trade Manager - Infrastructure 
Phone: 02 9392 2784 
Mobile: 0434 650 404 
Email: pet...
India Freight Rail & Heavy Haul Sector – Focus on DFC 
Hemant Padale - Business Development Manager 
Australian Trade Comm...
Australia Unlimited 
Indian Rail Market- Abundant Challenges & Opportunities
Australia Unlimited 
Overview on Indian Railways 
•Owned and operated by Government 
–Budget CAPEX for FY 2014-15 is $10 b...
Australia Unlimited 
Indian Rail Sector 
•Dedicated Freight Corridor (DFC) Projects 
•Urban Metrorail Projects 
•Indian Ra...
Australia Unlimited 
The Current Freight Scenario… 
$14 Billion Freight Revenue 
$43/tonne 
$5 Billion Passenger Revenue
Australia Unlimited 
Dedicated Freight Corridor (DFC) Project 
•DFCCIL* – an SPV 
•Length: 3,300 Km 
•Cost: $16.7 billion ...
Australia Unlimited 
Dimensions for DFC 
Feature Existing On DFC Moving Dimensions Height 7.1 m for Western DFC 5.1 m for ...
Australia Unlimited 
Design features of DFC 
Heavier Axle Loads 
Axle Load 
22.9t/25t 
32.5t/25t for Track Superstructure ...
Australia Unlimited 
DFC Project- Contracting Strategy 
•FIDIC yellow book customized for Design – Build railway infrastru...
Australia Unlimited 
Future Plan for Dedicated Freight Corridors
Australia Unlimited 
Impact on Bulk Commodity Transport 
Pre DFC 
Post DFC
Australia Unlimited 
What’s in it for Australia ?
Australia Unlimited 
Global Collaboration with Indian Railways 
•Recognition of Australian expertise in Heavy Haul 
•Broad...
Australia Unlimited 
Engagement Opportunities for Australia 
•Collaborative Research with Indian Railways research arm and...
Australia Unlimited 
Specific Opportunities for Australian Rail Industry 
•Consultancy Services 
–Project Management 
–Qua...
Australia Unlimited 
Challenges and Mitigation Strategies 
•Managing Business Risk 
•Contracting Process 
•Relationship Ma...
Australia Unlimited 
Austrade Support in India 
•Dedicated Rail & Transport Initiative team 
•Profiling of Australian Rail...
Australia Unlimited 
Austrade Contact Points for India 
Grayson Perry Trade Commissioner Email:grayson.perry@austrade.gov....
Australia Unlimited
Australia Unlimited 
Back Slides
Australia Unlimited 
Key Challenges & Mitigation – Indian Market 
•Managing of Risk 
•Bureaucracy & Project delays 
•Tende...
Australia Unlimited 
Strategies to tackle the challenges 
•Partnership 
•Research 
•Patience & long term approach 
•Relati...
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Peter Ironmonger & Hemant Padale - Austrade - Exporting Australian heavy haul rail expertise: International opportunities and areas of growth

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Peter Ironmonger & Hemant Padale 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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Peter Ironmonger & Hemant Padale - Austrade - Exporting Australian heavy haul rail expertise: International opportunities and areas of growth

  1. 1. International Opportunities for Australia’s Heavy Haul Sector and Austrade Assistance Peter Ironmonger – rail sector lead & Trade Manager, Infrastructure Heavy Haul Conference Newcastle 2014
  2. 2. Australia Unlimited Agenda •Global HH Opportunities and Growth Areas •How to Assess and Pursue the Opportunities •Austrade’s role and assistance •India freight rail snapshot
  3. 3. Australia Unlimited Is there an Australian “brand” in HH rail? •Feasibility and design, simulation modelling, systems integration •EPCM •Operations and asset management, remote condition monitoring, automation •Training & Education •Environmental sustainability, safety •Regulation •Innovation, R&D, niche equipment and technologies •Flexible solutions for making things work reliably, efficiently in extreme conditions, high temperatures, remote locations, with longest and heaviest trains
  4. 4. Australia Unlimited Opportunities and areas of growth – matched with Australian capability •GCC – UAE, Saudi Arabia, Oman - harsh, remote conditions, greenfields, Aussie expats, capacity bldg •South Asia – India and Pakistan - little or no HH experience and expertise, positive re Aust •SE Asia – incl. Indonesia, Thailand - proximity to Australia, road freight congestion, capacity constraints •Latin America – Brazil, Chile - seeking operational and cost efficiencies, need for flexible regulation model, resources focus •Africa - need for infrastructure, harsh conditions, resources focus But Australian strategy, capacity and appetite to compete is the key...
  5. 5. Australia Unlimited - $15-25 billion - Linking 6 GCC members West to East: Kuwait, Bahrain, Qatar, KSA, UAE, and Oman via 2,177km of railway
  6. 6. Australia Unlimited GCC rail opportunities Picture provided by Saudi Railway Company
  7. 7. Australia Unlimited Assessing and Pursuing global rail opportunities •Research and understand your global competitors and recognise what global markets truly value •Utilise and cross-check diverse sources of intelligence and avoid taking anything on face value •Partner where possible – understand where you fit in the global value chain and don’t try to go it alone – maybe start here in Aust •Develop a strategy and deliver a tailored “pitch” re your competitive offering •Be focused, persistent and be proactive •Join missions and other initiatives to benefit from “Australia Inc” •Allocate sufficient people and budget to global marketing and business development •Seek help from others with relevant capabilities – consultants, ARA, ICN, State Govts, other more experienced companies, Austrade
  8. 8. Australia Unlimited How Austrade can assist Australia’s rail sector •By knowing your (and the industry’s) capabilities and interests are •Global network, diplomatic status, to connect you with projects, decision-makers, partners – not only in rail, but infrastructure, resources, manufacturing, research, education and training, energy efficiency •Through our relationships – e.g. in Japan, Korea, Turkey, Europe – for third-market projects •Promoting and profiling Australia’s HH rail in partnership with other parts of govt, industry – e.g. HH capability brochure •Information on opportunities, market dynamics and practices – rail market profiles – GCC, Brazil, India, Thailand, Turkey, etc •Export Market Development Grants http://www.austrade.gov.au/Export/Export-Grants •Introduction to Efic – SME and structured financial assistance - www.efic.gov.au •Many other things – just ask and we will either assist or refer you to others who can
  9. 9. Australia Unlimited Austrade’s global network
  10. 10. Peter Ironmonger, rail sector lead, Trade Manager - Infrastructure Phone: 02 9392 2784 Mobile: 0434 650 404 Email: peter.ironmonger@austrade.gov.au For further information
  11. 11. India Freight Rail & Heavy Haul Sector – Focus on DFC Hemant Padale - Business Development Manager Australian Trade Commission, India Heavy Haul Conference 2014, Newcastle
  12. 12. Australia Unlimited Indian Rail Market- Abundant Challenges & Opportunities
  13. 13. Australia Unlimited Overview on Indian Railways •Owned and operated by Government –Budget CAPEX for FY 2014-15 is $10 billion –Annual procurement $ 5 billion (Import- $ 500 million) •Fourth largest network & Second largest freight carrier •64,000 kms, 19,000 trains, 25 million passengers/day, 2.65 million tonnes freight/day •Owns and Operates various manufacturing facilities
  14. 14. Australia Unlimited Indian Rail Sector •Dedicated Freight Corridor (DFC) Projects •Urban Metrorail Projects •Indian Rail Expansion & Modernisation Programs •High Speed Rail Programs
  15. 15. Australia Unlimited The Current Freight Scenario… $14 Billion Freight Revenue $43/tonne $5 Billion Passenger Revenue
  16. 16. Australia Unlimited Dedicated Freight Corridor (DFC) Project •DFCCIL* – an SPV •Length: 3,300 Km •Cost: $16.7 billion •Complete: FY 2018-19 •Funding Arrangement: Government, JICA*, World Bank and under PPP DFCCIL- Dedicated Freight Corridor Corporation of India Limited JICA- Japanese International Co-operation Agency
  17. 17. Australia Unlimited Dimensions for DFC Feature Existing On DFC Moving Dimensions Height 7.1 m for Western DFC 5.1 m for Eastern DFC Width Container Stack Single Stack Double Stack Train length Train Load
  18. 18. Australia Unlimited Design features of DFC Heavier Axle Loads Axle Load 22.9t/25t 32.5t/25t for Track Superstructure Track Loading Density Maximum Speed Single Stack Double Stack Grade Up to 1 in 100 1 in 200 Curvature Up to 10 degree Up to 2.4 degree Traction Electrical(25 KV) Electrical(2x25 KV) Station Spacing 7-10 Km 40 Km Signalling Absolute/Automatic with 1 Km spacing Automatic with 2 Km spacing Communication Emergency Sockets/Mobile Train Radio Mobile Train Radio Existing On DFC
  19. 19. Australia Unlimited DFC Project- Contracting Strategy •FIDIC yellow book customized for Design – Build railway infrastructure works •Slice and Package system – Enhanced competition •PQ followed by one/two stage bidding –Pre-Qualification followed by two stage bidding – Eastern Corridor –Pre-Qualification followed by single stage bidding – Western Corridor –Engagement of consultant through Quality-Cum-Cost-Based- System (QCBS) •New Technology encouraged
  20. 20. Australia Unlimited Future Plan for Dedicated Freight Corridors
  21. 21. Australia Unlimited Impact on Bulk Commodity Transport Pre DFC Post DFC
  22. 22. Australia Unlimited What’s in it for Australia ?
  23. 23. Australia Unlimited Global Collaboration with Indian Railways •Recognition of Australian expertise in Heavy Haul •Broader engagement strategy with Indian Railways (Heavy Haul Rail) •Current MOU with countries; –Japan, China, Germany, France, Spain, Belgium, Austria, Czech Republic –Common areas of collaboration oDevelopment and Modernisation of assets oHigh speed rail and improving speed on existing network oOperation and Maintenance oSafety and Station redevelopment oFreight Rail
  24. 24. Australia Unlimited Engagement Opportunities for Australia •Collaborative Research with Indian Railways research arm and Universities (Centre of Railway Research) •Sharing of expertise on Rail Technologies •Sharing expertise in Financing models and PPP methodologies •Engaging in common interest markets (Australia, Africa, Middle East) •Engaging with first & last mile connectivity project (private port operator, private miners)
  25. 25. Australia Unlimited Specific Opportunities for Australian Rail Industry •Consultancy Services –Project Management –Quality/Safety Audit –Freight Pricing; Marketing –Capacity building; Earthworks; Energy efficiency •Construction & Systems – Consultancy and design services •Equipment and Technology –Technologies for condition monitoring –Technologies for higher axle load and speed •Education Services & Skills training –Development of Heavy Haul Research Institute & Rail University –Training in areas of Heavy Haul operations
  26. 26. Australia Unlimited Challenges and Mitigation Strategies •Managing Business Risk •Contracting Process •Relationship Management •Lack of Information Partnership & Research •Uncertainty •Longer Gestation •Human Resources Long Term Approach Within Control Limited Control
  27. 27. Australia Unlimited Austrade Support in India •Dedicated Rail & Transport Initiative team •Profiling of Australian Rail capability •Strong engagement with Ministry of Railways, DFCCIL, & Other key players •Opportunity identification •Market Insights •Partner search •Market visit program
  28. 28. Australia Unlimited Austrade Contact Points for India Grayson Perry Trade Commissioner Email:grayson.perry@austrade.gov.au Ankur Bhatia Business Development Manager (Infrastructure) Email:ankur.bhatia@austrade.gov.au Hemant Padale Business Development Manager (Infrastructure) Email:hemant.padale@austrade.gov.au Peter Ironmonger- peter.ironmonger@austrade.gov.au
  29. 29. Australia Unlimited
  30. 30. Australia Unlimited Back Slides
  31. 31. Australia Unlimited Key Challenges & Mitigation – Indian Market •Managing of Risk •Bureaucracy & Project delays •Tendering Process •Lack of Transparency •Financial constraints •Relationship management •Need of an agent /partner •Lack of skilled manpower
  32. 32. Australia Unlimited Strategies to tackle the challenges •Partnership •Research •Patience & long term approach •Relationships

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