Brian Nye OAM - ARA - Rail industry update from the ARA

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www.ara.net.au ABN 64 217 302 489 NZ Rail 2014 Bryan Nye, CEO ARA June 2014

description

Brian Nye delivered the presentation at the 2014 New Zealand Rail conference. The 2014 New Zealand Rail conference explored issues that would help to secure the economic development of New Zealand. With a focus on new projects and balanced funding, this event discussed ways to ensure the seamless growth of the next 10 years. For more information about the event, please visit: http://www.informa.com.au/nzrailconference14

Transcript of Brian Nye OAM - ARA - Rail industry update from the ARA

Page 1: Brian Nye OAM - ARA - Rail industry update from the ARA

www.ara.net.au

ABN 64 217 302 489

NZ Rail 2014

Bryan Nye, CEO ARA

June 2014

Page 2: Brian Nye OAM - ARA - Rail industry update from the ARA

www.ara.net.au

The ARA

• Who we are: a member-based association that represents

the interests of the rail sector

• Our purpose: to create an environment that will permit

the Australasian rail industry to prosper

• Who we represent: all rail operators, both private and

government, track owners and managers, manufacturers

of rollingstock and components, and other aspects of the

rail industry

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Passenger Operators

• Transdev, Auckland

• KiwiRail, Wellington

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NZ Investment: 2014-2015 Budget

• Funding for Rail = 11% of the Vote or around $513 million, mainly: – $198 million for the KiwiRail Turnaround Plan - put the

freight business on a commercially viable footing

– $192 million to assist with the funding of the Electric Multiple Unit package (Loan)

– $90 million to assist with the funding of the Electric Multiple Unit package (Grant)

– $16 million for metro rail projects in Wellington.

– $10.7 million for New Zealand Railways Corporation Loans

– $500,000 for rail safety

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National initiatives

• Draft Government Policy Statement on

land transport released in June 2014

• KiwiRail Turnaround Plan for freight

(infrastructure upgrades, new wagons, IT

systems)

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Patronage • Approximately 21 million / year

– Over the past five years, patronage has more than

doubled in Auckland to approx 10 million / year

– Wellington rail patronage has been consistent around

11 million / year since 2009

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The Auckland Rail Upgrade

• Electrification of the network

• Signalling renewal

• 57 x 3 car EMU fleet

– To boost capacity

and use of the network

– April 2014 - mid 2015

• 23 Station upgrades

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Wellington Metro Upgrade Project

• $88.4 million over 8 years

– Slope stabilisation

– Overhead electrification hardware

– Signalling upgrades

– Tamping

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Challenges

• Patronage growth

- Meeting continuing growth in Auckland

- Generating patronage growth in Wellington

• Future proofing the network

• Continuing to entice investment

– Government level

– Private partnerships

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Environment Change

Marchetti Travel Principle

Relative change 2004 – 2008

Petrol price +31%

Population +6%

Private road vehicle use +1%

Heavy rail +23%

Light rail +10%

Bus +11%

Public transport +18%

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Rail freight – The big picture

News Zealand rail freight differs to Australia in that:

• Government (through KiwiRail) owns and controls the tracks, as well as

the majority of rollingstock

• Same gauge- avoiding many of Australia’s issues with differing gauges

between and within states

• Rail carries approximately 15 per cent of freight moved in New Zealand

(tonne-kilometres). In Australia it moves 46 per cent of bulk freight and

25 per cent of non-bulk freight

Sources- Meeting the 2050 Freight Challenge, IPA and NZ Ministry of Transport.

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Rail Freight

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Rail Freight Market Share

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TrackSAFE

tracksafefoundation.com.au

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Aims:

1. Reduce suicide and suicide attempts;

2. Decrease trespass incidents;

3. Improve level crossing safety education and awareness; and

4. Provide best practice trauma support for rail employees.

Structure:

• funded by Australian rail industry, 19 members

• independent Board, the Hon Tim Fischer AC

tracksafefoundation.com.au

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tracksafefoundation.com.au

tracksafefoundation.com.au

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ABN 64 217 302 489

Update on Australian Rail

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Passengers

That means an

additional 80 million

trips taken on our trains

over 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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Coal

Ore

Sugar

Bauxite

Grain

Other Bulk

Source: Royal Bank of Scotland Transport Equities Update (2012)

Grains 3-4%

Bulk Commodities

931 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

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Rail Freight

0

200

400

600

800

1000

1200

1400

1600

1800

Y2012 Y2020

Coal and Iron Ore

Source: Royal Bank of Scotland Transport Equities Update (2012)

818 million

tonnes

1530 million

tonnes

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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

• Rolling Stock Orders, Vic, Qld NSW and WA

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Federal Government – Budget 14/15 New South Wales

• Northern Sydney Freight Corridor $691.6m

• Road underpass at General Holmes Drive $40m

• Maldon – Dumbarton Rail Link $10.8m (for detailed design)

• Port Botany Rail Access $67m (for ARTC)

• Port Botany Rail Line Upgrade $75m

• Scone Level Crossing $45m

Tasmania

• Freight Rail revitalisation $119.6m

• Bell Bay Intermodal Terminal $4.9m

• Rail Capacity improvements at Rhyndaston $13.3m

Queensland

• Moreton Bay Rail Link $518.4m

• Northern Territory

• Rail overpass south of Alice Springs $13m

Western Australia

• Kewdale Intermodal Rail Supply Chain $17.2m

• Portland Inland Freight Corridor Concept Plan $0.9m

• Nicholson Road Grade Separation $18m

• Trial of low profile concrete sleepers on WA Grain lines $2.9m

Victoria

• St Albans Road Rail Level Crossing $151m

• Ballarat Avenue of Honour Rail Crossing opening $1.0m

• Melbourne Metropolitan Intermodal System (port shuttle services) $38m

South Australia

• Goodwood and Torrens Junctions $232m

+ $300M for

Melbourne – Brisbane

Inland Rail project

No $$ for public

transport projects

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Inland Rail

A $4.4 billion

Melbourne – Brisbane

41% existing, 25% upgraded, 34% new track

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NSW – Key Investment

Projects Funding

TfNSW Capital projects $2B

Country Rail Capital Maintenance $67M

Light Rail – CBD and South East $75M

Light Rail Inner West $67.4M

Opal Delivery $132M

‘Fixing the train’ investment $116M

Automatic Train Protection System $61.8M

Digital Train Radio $130.3M

Lidcombe – Granville Corridor Upgrade $76.7M

Northwest Rail Link $805M

South West Rail Link $353M

Northern Sydney Freight Corridor $313M

Transport Access Program $177M

Waratahs $833M

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QLD Investment

Projects Funding

Public Transport Rail

Infrastructure Fund

$1B

Bus and Train project $1B

Moreton Bay Rail Link

(Already underway)

$1B (committed $378M for

2014/15)

New Generation Rolling

Stock

$ 25.4M

The QLD aims to raise $33.6B from the privatisation of state

assets. $8.6B of this revenue will go into infrastructure.

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VIC – Key Investment

Projects Funding

Victrack

New projects $121M

Existing projects $1.5B

These Include:

Regional Rail Link $577M

Metro rail infrastructure

renewal program

$127M

Level Crossing Blitz (rural

and Metro)

86M

Metropolitan and Regional

Rolling stock

$83M

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SA – Key Investment

Projects Funding

Goodwood and Torrens

Rail Junction Upgrade

$110M

Lonsdale Pedestrian Rail

Crossing Safety Upgrade

$800K

Rail Revitalisation project $243M

Railcar Upgrade $6.4

Seaford Rail Line $59M

Train Protection System $11M

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WA – Key Investment PROJECTS FUNDING

Country Passenger Rail and Coach Services $52.4M

Extension to the northern suburbs railway to Butler $26.5M

Fremantle Port Rail Service $3.7M

Perth City Link $99.6M

Rail Corridor Upgrades $108.7M

Rail Station Upgrades $31.1M

Rail Cars Upgrades $60M

Forrestfield Airport Link $12M

Port Infrastructure Enhancement $3.7M

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TAS and ACT Investment

Projects Funding

TAS

Tas Rail projects $16.5M

ABT Rail $600K

Rail Safety $531K

ACT

Capital Metro Light Rail project $614M

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Future Train Control

Control Centre Voice comms

On board train detection

Movement authority

Advisory speed

Key nodes Limited signalling Limited train detection

Intelligent

Traffic

Management

Satellite navigation?

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Passenger Challenges

• An increasing transport demand

• Climate change

• Need for integrated and sustainable

planning for all transport modes to

ensure seamless connectivity

• Lack of strategic and long term planning

and investment

• Potential to improve operations to meet

customers’ needs

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Information

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Manufacturing Challenges

• No more Government design

• Off the shelf options

• Financing

• Limited support for Australian made

• Industry Assistance minimal

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Sector Response

• Refurbish and Refit

• Fit out

• Maintain

• Chinese impact

• Keeping Trade Skills

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Rail…

• Travelling to work

• Sending freight

• Getting there safely

• The impact on the environment

• Costing less

• … it’s better