“SWITCHPOINT” Template for rail to revive and thrive Hon Tim Fischer AC.
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Transcript of “SWITCHPOINT” Template for rail to revive and thrive Hon Tim Fischer AC.
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“SWITCHPOINT”
Template for rail to revive and thrive
Hon Tim Fischer AC
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SWITCHPOINT
Nerves of steel required Worldwide massive swingback to rail Double stack freight dominating USA Passenger London Paris – about 2 hours Australia East West Interstate rail freight Adelaide Darwin 90% freight goes by rail
- I declare Director APT Freightlink, Chair RFNR
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SWITCHPOINT
Rail is Greenhouse friendly Rail Branding – Greenhouse Great! Steel wheel 1 / 7 th friction rubber tyre wheel Need both good rail and good road operation Need now from Governments:
Balance in rail road policies Investment with priorities Grain and General Freight Mega Hubbing
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SWITCHPOINT
Victoria: Four operational gauges !!!!
RFNR appointed June 2007 to investigate
Unanimous Report Dec 2007 with 29 Recs
Key Access Charges and Network Priorities
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SWITCHPOINT
Platinum
Gold
Silver
Bronze
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Switchpoint
Take the Riverina:
“The Good the Bad and and the Ugly”
Bethungra Spiral: No bi-directional running
Wodonga saga
Branchline deterioration
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SWITCHPOINTVersus:
Upgraded Mainline and Regional Lines
Final elimination of 19th Century Signalling
New rail bridge Wagga Wagga
New Rail Bridges Lockhart and Boree Creek
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SwitchpointNew rail bridge at Boree Creek NSW
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Getting Started – the inheritance … Significant maintenance neglect – last 15 years
Private Track Lease Operator – 99 to 06
A dispersed rail freight network created over 120 years
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Getting Started – the inheritance …
Private lease buy back by Vic Govt – May 2007
RFNR – established June 07
Govt Policy – Target 30% freight railed to port Vs 15% actual…but its heading south!!
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The Team……a balance of skills… Chair – Tim Fischer AC – ABC Train Show Host
++ . Rail & Transport Mgt – Bruce McGowan (BHP
Transport; Freightlink) Career Economist - Journeyman – Peter Wilson Skills in Rural Development & Infrastructure
Kerry Murphy (ex CEO RDV, now CFA Chair) John McQuilton (Rural MLC ret’d; “97 out of 100” Red
Winemaker) Rob Spence (CEO, MAV)
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The Approach…….getting started Stakeholder Group – V/Line; AWB
Grainflow; Graincorp; ABB/ABA; VFLC;VFF; Alliance of Councils – RFD; PN – Asciano
Call for Public Submissions – 103 rec’d of all varieties
Strong Secretariat Assistance
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The Approach…….getting started Stakeholder Group – V/Line; AWB
Grainflow; Graincorp; ABB/ABA; VFLC;VFF; Alliance of Councils – RFD; PN – Asciano
Call for Public Submissions – 103 rec’d of all varieties
“Getting out there” Visits to all Major Tracks / Hubs Local Hearings in 13 Centres / Regions
City Hearings – in plenary, and ‘six on one’
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The Approach…….getting started
And ….a Robust Applied Economic Model (of course) – per SdD (the Strategic Design and Development Group).
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An Early Perspective…..is this all too hard!?
And more…. B – Doubles……winning the political and
economic battle Greenhouse Impacts of Rail & Road……
totally unpriced!! “Don’t You Dare Close my Rail line!” Sub Economic Pricing – what subsidy, if any,
makes sense?
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Moving Forward…..the emerging fundamentals Broad community and business support for Rail –
all city burghers and citizens want the ‘B-Doubles out of Main Street & off the Main Roads’
Greenhouse impact of Rail – its one third cost of road (city); one seventh of road (country)
Economic evidence strongly favours Rail for long hauls to Port
Economic Hubbing favours Rail revival Evidence that Access Pricing wasn’t either market
relevant or policy consistent
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A Case for Government Intervention Road subsidies heavily weighted against a
rail revival; Rail network re-entry barriers are high; Competition in ‘Above Rail’ operations is low
but emerging Emerging demands for new product on rail –
mineral sands; woodchips; logs; paper and packaging products; fuels.
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Recommendations – Rail Network – “Use it or Lose it”
Evidence and Economic Modelling – produced a consistent 4 Colour Heat
Map for ‘Nerves of Steel Winners’ Risk, Demand, Community Value and
Probabilities determined the colour ranking
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Recommendations – Rail Network – “Use it or Lose it”
………the colour ranking… Platinum – ARTC I/S; V/Line; Auslink
Gold – priority 1 for rehab to Class 4 or 5 (>50-60kmh)
Silver – priority 2 for rehab sub. to private commitment ‘above rail’
Bronze – basic maintenance / Canadian model – local mgt.
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Recommendations - Access pricing 2007 Rail Access prices had just gone up 250% -
based on ESC logic to recover 40% of full costs. The problem - Rail Freight is not a regional
monopoly like Water It is an intensely competitive market……small
variations in cents per tkm, will lead to instant shifts in demand amongst alternative transport media.
Results were counter to 30% rail freight policy objective, compounded by maintenance of all existing road subsidies
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Recommendations – Supply Chain – “Cycle Times”
Cycle times have deteriorated in Vic, because of a loss of focus on total supply chain – eg connections to Port of Melbourne
RFNR recommend maximum hubbing and making the hard calls to get connections to port working efficiently
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Recommendations – Supply Chain – “Cycle Times”
RFNR recommend maximum hubbing and making the hard calls to get connections to port working efficiently…….by….. Grain Logistics TaskForce Accelerating growth of Regional & Outer Metro Hubs Intermodal Hubbing – optimising mix of road and rail Set up RF Development Fund to make the catalytic
investments to better connect supply chain and improve the cycling
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Recommendations – Standardisation
RFNR concludes Rail Standardisation is not a panacea…..
….but Selective Standardisation is a big “Yes” In Nth West Vic (re mineral sands) Albury to Wodonga via lease to ARTC Geelong – around Gheringhap and Nth Geelong
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Recommendations – Other Infrastructure Portland – improve Maroona line and PoP terminal
receivals
Melbourne Dynon Link and better access to Port of Melb needed
Better planning between passenger and rail freight post Eddington Inquiry
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Recommendations – Other Infrastructure
The Great Swap – Vic & SA Swap Pinnaroo - Tiego to SA Swap Penola - Rennick to Vic Reason – comparative economic costs and benefits
don’t support public mgt acc to State Boundaries
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Recommendations – Rail Services and Practices To a World of Best / Better Practices for Rail
(Freight) Simplify driver accreditation and safety
training Remove unnecessary regulation re accred’n;
insurance Provide “One Stop Shop” for Above Rail
Access By private operators Improve Track operation procedures eg
better crew flexibility
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Recommendations – The Green Impact
All Road and Rail projects to include capture of externalities;
Any national carbon trading scheme include capture and pricing of road and rail impacts.
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29 Recommendations – & unanimously so…
A small but positive start to implementing the RFNR report, based on the principles of public – private co-operation, and mutual obligation and benefit sharing.
Hopefully more implementation of RFNR
soon………………….
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Switchpoint
Remember key Auslink Quotes:
There will be an integrated corridor approach to planning.
The new (Auslink) approach focuses on meeting future passenger and freight needs in the best way, irrespective of the transport mode.
Wall to wall Labor Governments: Anything if not everything re transport is possible!
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SWITCHPOINT:
“We went very close to losing large chunks of our interstate and intrastate rail network in the last quarter of the 20 th Century but now there is some rail revamp and revival. Rail properly operated, especially through mega hubbing with efficient elements of road,
is the way of the future.
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Switchpoint
Remember…….
RAIL: Greatly reliable & Greenhouse Great!
-Tim Fischer