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FREIGHT ON RAIL IN AUSTRALIA

Danny Broad, CEO

Australasian Railway Association28 October 2015, Brisbane

NEW MAP SLIDE TO BE ADDED

The ARA: The peak body for rail

Rail is Critical for a Better Future

• For economic growth and productivity

• For international competitiveness

• For social enhancement and environmental sustainability

• For employers and employees in Australia with close to 200,000 people working in the industry

• For investment of close to $45 billion in committed investment in the next 5 years

ARA’s Priority Objectives

• To develop a world-class rail industry that contributes to a liveable and sustainable society that benefits all

• To promote a national integrated freight rail supply chain network including Inland Rail and rail to ports

• To reduce congestion in cities by growing an integrated, efficient and safe passenger rail infrastructure network

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Four Core Member Groups

Passenger FreightManufacturing &

SuppliersContractors

ARA Board

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ARA Freight Transport Group (FTG) Activities

• FTG supports 23 members

• FTG developing a Master Plan and Strategy like other sectors

• FTG Master Plan categories – Safety; Capacity & Growth; Funding & Investment; and Asset Management

• Other FTG activities include: longer term infrastructure planning – pipeline, ports and rail strategy, safety policy, asset and inventory management, SPADs and workforce development

Australia’s Key Freight Routes

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National Rail Freight Task (Million Tonnes)

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Freight Rail Performance• Australia’s total rail freight tonnage grew by approximately 25% from 2012-13 to 2013-14

• Carried over 1.3b tonnes in 2014-15

• Of freight rail task, 98% is bulk – iron ore, coal, bauxite, grain

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

• Intrastate bulk freight in Western Australia—principally iron-ore movements—accounted for approximately 70% of national rail freight tonnages

• Bulk movements in Queensland and NSW—principally coal—were approximately 19% and 6%, respectively.

• Despite the reported end of the mining boom, intrastate bulk tonnages in Western Australia increased by approximately 56% from 2012–13 to 2013–14

• Intermodal freight,. Which grew significantly from 19,519 thousand net tonnes in 2009-10 to 27 559 net thousand tonnes in 2012–13, reduced to 21 891 thousand net tonnes in 2013–14, a reduction of approximately 21%

Source: Trainline 3, Department of Infrastructure and Regional Development and ARA, 2015

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Freight Rail Challenges

• Infrastructure investment – Inland Rail and rail-to-ports

• Road/rail pricing

• Environmental issues

• Coastal shipping

• Inefficiencies – double handling

• Intermodal hubs

• Quality of tracks and rollingstock

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Some Key Freight Projects

• Inland Rail

• Murray Basin Rail Project (Stage 2 commences September 2016)

• Tasmanian Freight Rail Revitalisation Program ($119.6 million of Infrastructure Investment Funding to 30 June 2019)

• Northern Sydney Freight Corridor Program (scheduled for completion in 2016)

• NSW Government reserved $400 mill for a Fixing Country Rail program

• Western Interstate Freight Terminal Melbourne (currently pre-feasibility)

• Melbourne port shuttles (privatisation of Port of Melbourne))

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Rail’s market share of

interstate freight movements

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• 1700km route

• Melbourne to Brisbane, bypassing Sydney

• $10 billion

• < 24 hours transit time

• Allows for 1,800m double-stacked trains

• Removing thousands of trucks from roads

• Boosting regional development

• Opens up coal haulage to Brisbane Port

• Frees up rail capacity in Sydney

Inland Rail

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Indicative Inland Rail Alignment in Queensland

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Port Shuttles – Providing Inland Extensions to Port

• There are port shuttles in:

o Perth (SCT)o Adelaide (SCT)o Sydney (largely QUBE but Aurizon now running one) o Brisbane - around 5% of freight on rail o Melbourne (one port shuttle running in Melbourne (SCT) between Altona and

DP World)

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Port Shuttles – the future

• Melbourne needs dockside infrastructure to prevent double handling

• Build intermodal terminals

• ARTC has $75m to do up the connections to Port Botany e.g infrastructure, signalling, etc

• The key ingredients for port shuttles to work:

o be part of the logistics solution/ integrated planningo access to the port by railo focus of governmento investment from government and the private sectoro regulation to level the playing fieldo industry engagement - lots of players need to work togethero infrastructure at the port e.g. on dock rail

Rail Freight Solutions• BETTER PLANNING - ensure there are long term and integrated

plans in place for freight;

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

• IMPROVED ACCESS TO PORTS – freight cities (Intermodalscombined with distribution centres) with rail connections to theport;

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

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

• INNOVATION – use of new technologies, big data and improving productivity.

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Questions?

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