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TRANSPORT COLLOQUIUM 05 Infrastructure for the Rail Freight Industry Bryan Nye Chief Executive Officer. Today’s Challenge Look into the Future. Freight operations. Industry structure Vertical separation on inter-capital city network and NSW - PowerPoint PPT Presentation
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TRANSPORT COLLOQUIUM 05TRANSPORT COLLOQUIUM 05
Infrastructure for the Rail Freight IndustryInfrastructure for the Rail Freight Industry
Bryan NyeChief Executive Officer
• Today’s Challenge
• Look into the Future
Freight operations
Industry structure
• Vertical separation on inter-capital city network and NSW
• Integrated networks in Qld, Vic, SA, WA, Tas - most with access arrangements in place
• Heavy haul sector all integrated, some with access arrangements
Freight operators
Hire and Reward• Queensland Rail (QR)• Pacific National (PN) includes
Tasrail• Australian Railroad Group (ARG)• Specialised Container Services • CRT Group• FreightLink• Interail Australia• Austrac Rail • Silverton Rail• Southern Shorthaul Railroad
Freight operators
Ancillary
• BHP Billiton Iron Ore
• Manildra Group
• Pilbara Rail Company
• Comalco
• Sugar cane railways
Passenger Operators
• Rail Corp (NSW)• Connex (Vic franchise)• Yarra Trams (Vic franchise)• TransAdelaide• WA Public Transport
Authority• QR
Heritage and Tourist sector
Approx 200 Operators, less than 10 major operators• Great Southern railway• 3801 Ltd• South Spur Rail• Pichi Richi• Puffing Billy railway• ARHS• Lachlan Valley Railway
Track ownershipQR 9521 km
RailCorp (pre ARTC/NSW lease)
7310 km
ARG 6622 km
ARTC (pre ARTC/NSW lease)
4430 km
Sugar Cane Railways
4150 km
VicTrack (leased out)
3676 km
Asia Pacific Rail
2251 km
• Bulk Freight- All iron ore, 80% local Coal, 70% Grain
- 20% Australia’s exports worth $15 Billion
• East/West Freight 70+% - Investment in infrastructure - Single access manager - Double stacking West Adelaide/Parkes - No passenger interface problems
• North/South Route <20% - Lack of investment in track - Multiple track access managers - Sydney curfews - Complex safety environments
Freight Movement Today
• Volume & movement of freight will double over next 10 years
• Congestion cost 13BN in 1995, 30BN by 2015
• Current road & rail inadequate
Transport Challenge
Benefits
• Safest form of land transport
• Environment
9 times more energy efficient
one train, two drivers = 150 trucks & 45,000 litres of fuel
• Efficient rail is a cheaper mode of freight transport than road on all inter capital corridors
20
15
25
23
31
27
25
Syd - Bris
Melb - Syd
Melb - Bris
Melb - Adel
Adel - Perth
Melb - Perth
Syd - Perth
$ per '000 NTK's, at 2014
Source: PJPL Analysis
Road RailCost benefit of Rail
Variable Operating cost*Fixed operating cost*
Capital recovery cost
Externalities
Below
Variable operating cost
Capital recovery cost
Pick Up and Delivery (rail)Above Fixed operating cost
* assumes 50% reduction in RIC's cost base and impact of volume growth on rail fixed cost base
68
64
73
64
63
60
58
48
50
48
42
32
33
33
Average = 20
Total Cost Comparison
Investment Challenges
• Ongoing microeconomic reform
• National plan development
• Industry reform
Microeconomic Reform
• The next big Agenda• National Regulatory
framework• Access Pricing-
certainty• Heavy Vehicle/Rail
Pricing
National Plan Development
• Auslink and Political agenda
• Focus on regional freight
• Long term plan for terminals
• Urban planning
• ARTC challenge
Industry Reform
• Align above & below rail investment
• Improve insurance arrangements
• Efficiency improvements
• Maturity – “Grow the Pie”
• Establish a framework for assessing and allocating incident costs
• Future structure of Industry
Technology and People
• Communication
• Train control systems
• Age, profile, skill levels
• Image
• Rail Skills & Career Council
Outcome
• Industry - return on investment
- increase freight/passenger numbers - Improve price, time, reliability and service availability - continuous improvement to infrastructure - better investment environment• Government
- employment - regional and rural impacts - reduction in road investment costs
- social benefits - an improved economy
Next Opportunity
The Eastern Freight Corridor
Cryon
Broken Hill
Menindee
Ivanhoe
Condobolin
Tottenham
Griffith
Willbriggie
HillstonBurcher
WestWyalong
YancoTemora Young
Koorawatha
Cowra
NarranderaJunee
Boree Creek
The Rock
Wagga Wagga
Culcairn
Albury
Moss Vale
Goulburn
Harden
Queanbeyan
Canberra
Bomaderry/Nowra
Cootamundra
Gulgong
Ulan
Singleton
Newcastle
Sydney
Maitland
Dubbo Muswellbrook
Blayney
Weemelah
Grafton
Casino
Taree
Port Kembla
Kempsey
Narrabri
Burren Jnct
Merrywinebone
Walgett
MoreeCamurra
Nevertire
Nyngan
Coonamble
Gwabegar
Cobar
North Star
Armidale
Dumaresq
Warren
Lithgow
Narromine
Werris Creek
TamworthGunnedah
Merrygoen
Binnaway
Bathurst
Kandos
Orange
Parkes
Naradhan
To Adelaideand Perth
To Melbourne
To Brisbane
Wee Waa
NarrabriWest
ARTC Lease
Possible extension to lease
Eastern Corridor
Intrastate lines (ARTC to manage as agent for NSW Government)
Eastern Freight Corridor - Why• Rail has less then 20% share on the eastern corridor,
Melbourne to Brisbane and declining share on the shorter Melbourne – Sydney and Sydney – Brisbane routes
• Sydney is a corridor bottleneck• Range of track and operating constraints, single track,
train length limitations, no double stacking, terminals, access pricing
• The eastern corridor is the highest volume freight corridor • A new eastern route would carry Melbourne – Brisbane
freight freeing the coastal route for the Melbourne- Sydney and Sydney-Brisbane freight
Eastern Freight Corridor - Benefits• A major new microeconomic reform to improve the efficiency of the Australian
economy
• A boost to Australian GDP of $12 billion
• 2,400 jobs per year in rural and regional Australia over five years during construction
• 2,400 permanent new jobs
• A 50 percent reduction in the number of heavy vehicles on our interstate highways
• A reduction in greenhouse gas emissions and a saving in road accident costs
• A reduction in road construction and maintenance costs
• An 80% rail market share of the
Melb-Brisbane freight corridor
• A 50% rail share of the shorter
Sydney-Melb and Melb-Sydney corridors
Achievables
• A new $2.5 billion Melbourne to Brisbane corridor will deliver transit times of 22 hours (35 currently) and unprecedented rail reliability
• Train speeds of up to 110 km/h• 2 km trains and double-stacking of containers• Major capital works in regional NSW, Victoria and Queensland• This investment, together with already announced Government
commitments, will give rail the following market shares:
- Melbourne - Brisbane 80% (currently 21%)
- Sydney - Melbourne 50% (currently 10%)
- Sydney - Brisbane 50% (currently 10%)
Eastern Freight Corridor – the Business Case
• The Business Case is hampered by the costs associated with construction through the Toowoomba and Little Liverpool ranges
• The preferred route is through the ranges for a number of environmental, cultural and engineering reasons
• The costs of construction through the Toowoomba and Little Liverpool ranges is in the order of $850m
Eastern Freight Corridor – Investment Structure
• One option is a joint venture between Government and the private sector
• AusLink private/public partnership
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