www.ara.net.au

ABN 64 217 302 489

Delivering improvements to

Rail Freight

Bryan Nye CEO

Sydney, 9 Oct 2013

www.ara.net.au

6th largest rail network globally

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Our annual customers...

930 million tonnes

of freight 784 million customer

journeys

Our passenger and freight rail networks are at

or exceeding capacity

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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

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Rail – on the national agenda

• 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

• Intermodals being developed

• Level Crossings being upgraded

• Inland Rail

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Passengers

That means an

additional 80 million

trips taken on our trains

every week for the last 4

years!

Urban Passenger Rail 767.68 million journeys in 2012

(11.8% increase since 2008)

Non-Urban Passenger Rail 16.51 million journeys in 2012

(23.4% increase since 2008)

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Rail freight – The big picture

20010/11 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.

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Freight task to double within 20 years

409 million

794 million

2011 2031

Total freight moved in NSW /year (million tonnes)

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Rail’s share of containerised freight

Rail’s share of containerised freight

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Some lines need work!

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Over 300 years old…

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Agriculture and rail

• The agricultural sector represents

around 15% of the nations GDP

• Transport is a critical component and

rail can play a much larger role

• The ARA is working with the NFF and

others to promote improvements in the

supply chain (e.g containerisation)

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Freight from road to rail

• Everyone says it – safe, environmental

benefits, efficient

• It is happening

• It requires investment in infrastructure,

processes and systems

• It requires a re-think re investing in

roads

• It requires the rail industry to play its

part

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What do rail customers want?

A Woolworths’ perspective

14

• Reliability (meet advertised availability times)

• Right balance of service, cost and risk

• customer- focused – understand customers’ needs

• Understand its impact on customers’ supply chains

• Need to be able to compete with road freight – productivity and flexibility

• Logistics – efficient terminal access and locations

• Price

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Inland Rail

$4.5 - $6 billion

Required to complete

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Inland Rail:

TRANSFORMING the transport sector • Increase rail’s reliability and efficiency

– double stacking, longer trains,

– 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

• Eastern Corridor: Highest freight volume in Australia

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Inland Rail – progress

• $300m currently in Federal Labor budget from 2014/15 for pre construction works

• Coalition have matched the funding with 3 key differences: – A 10 year timeline for construction from 2016-2026

– Additional funding from the QLD Government- so far committed $67 million for passing loops and tunnel expansions

– 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

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Northern Sydney Freight Corridor

• Planned to enhance the capacity and

reliability of the freight rail network and

passenger services between Newcastle

and Sydney

• Currently a major bottleneck for rail into

and out of Sydney

• $1.1 billion commitment in December 2011

– $840 million federal government

– $214 million state government

• ¼ of the sections of work completed so far

• All scheduled for completion in 2016

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Northern Sydney Freight Corridor

• Will allow rail to be more competitive by:

– Improving access through Northern Sydney to

metropolitan network, Port Botany and container

freight terminals

– Improving reliability of passenger services into

and out of the North of Sydney

– Reduce restrictions to freight rail caused by

priority of passenger services during peak times

– Reduced transit times and increased reliability

will making freight rail cheaper

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HIGH SPEED RAIL

Catching up with the world

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The preferred route

• 1,748 km

• 4 city stations

• 4 city-peripheral

stations

• 12 regional stations

• 144km tunnels

(8% of the line) or

29% of costs

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Competitive travel times…

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Freight Rail Further Actions

• .Collection of Data across

supply chains

• A National Freight Plan

• A National Inland Terminal

Plan

• Pricing regimes resolved

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Rail into the future

• Freight on Rail

• More capacity in urban areas and on

national network

• Re-opening lines

• Intermodals

• High Speed Rail

• New technology

• Light rail