www.ara.net.au

ABN 64 217 302 489

Freight and Intermodals:

Opportunities and Roadblocks

Danny Broad, CEOAustralasian Railway Association19/11/2015

28 October 2015, Brisbane

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Introductions – Danny Broad CEO ARA2

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Indicative map of key freight routes

identified by Infrastructure Australia

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This is a supply chain issue

Rail Operators

Track Owners

Terminals

Ports

Freight Forwarders

Trucking Industry

Customers

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The Opportunities

Significant current and

future investment in

passenger and freight

rail by governments

and the private sector

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Pipeline

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Rail Market Share of

Interstate Freight Movements

TARCOOLA

KALGOORLIE

BROKEN HILL

TENNANT CREEK

BRISBANE

ALICE SPRINGS

ADELAIDE

DARWIN

KATHERINE

PERTH

SYDNEY

MELBOURNE

90%+

60%+

80%+

5% 5%

27%

5%

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Freight Rail performance

• Carried over 1b tonnes in 2013/14

• Approximately 97% is bulk – iron ore, coal, bauxite, grain (grain is around 3%) etc

• Intermodal freight increased by 65% from 2009/10 to 2013/14

• Strong performance on longer legs

• Poor performance on the east coast

• Growing support for port shuttles

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Some key freight projects

• Inland Rail (and intermodals)

• Murray Basin Rail Project

• Tasmanian Freight Rail revitalisation

• NSW grain line upgrades

• Northern Sydney freight corridor

• Port Botany Rail Access

• WIFT Melbourne

• Melbourne port shuttles

• Northern Australia – a role for rail?

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Inland Rail

• Melbourne to Brisbane, bypassing congested Sydney

• 1700km route• 669 km of new track, 292

km of upgraded trackand 706 km of enhanced track

• 22 hours of transit time• $10 billion project cost• Boosting regional

development

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Inland Rail: Transforming the

Freight Sector

Inland Rail will be built to modern standards, accommodating:

• heavier axle loads

• train speeds of 115km/h

• double-stacked trains and

• an advanced train management system, which runs trains

safely and more efficiently while eliminating the need for a lot

of traditional trackside equipment

• Will be future proofed for longer trains (e.g. longer passing

loops)

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Inland rail will….

• create jobs

• support the growth of existing businesses and the launch of new

businesses

• make our exports more competitive

• ease congestion on our highways and through the Sydney rail

network

• prevent additional wear and tear on our roads and make our roads

safer

• reduce environmental emissions and fuel consumption

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Freight Rail Challenges

• Handling (freight on and off locomotives)

• Access to urban rail networks and alignment with port access

• 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)

• Location of terminals in relation to warehousing and industrial areas

• The interface between road and rail

• Quality of the tracks (particularly grain lines)

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Freight Rail Challenges (2)

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Poor Track Quality

Freight Rail Challenges (3)

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Age of locos ..over 300 years old…

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Transloading & Expressway 18

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What do rail freight customers want?

• 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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The Solutions

• BETTER PLANNING - ensure there are long term and integrated plans in place for freight;

• SMARTER INVESTMENT – Federal Government and private sector need to invest in the right infrastructure at the right time;

• IMPROVED ACCESS TO PORTS – freight cities (Intermodals combined with distribution centres) with rail connections to the port;

• LEVEL PLAYING FIELD – use the same charging mechanism for trucks and trains - improve access, investment and charging arrangements for heavy vehicles;

• APPROPRIATE REGULATIONS - create better and more consistent regulation across all modes (safety, environment, economic)

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What rail needs

• Continued support from governments –all say they want more freight on rail

• It requires investment in infrastructure, processes and systems

• It requires a re-think re how we fund infrastructure and which infrastructure

• It requires innovation

• It requires the rail industry to play its part

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Thank You

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