International Opportunities for
Australia’s Heavy Haul Sector and
Austrade Assistance Peter Ironmonger – rail sector lead & Trade Manager,
Infrastructure
Heavy Haul Conference Newcastle 2014
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Agenda
• Global HH Opportunities and Growth Areas
• How to Assess and Pursue the Opportunities
• Austrade’s role and assistance
• India freight rail snapshot
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Is there an Australian “brand” in HH rail?
• Feasibility and design, simulation modelling, systems integration
• EPCM
• Operations and asset management, remote condition monitoring, automation
• Training & Education
• Environmental sustainability, safety
• Regulation
• Innovation, R&D, niche equipment and technologies
• Flexible solutions for making things work reliably, efficiently in extreme conditions, high temperatures, remote locations, with longest and heaviest trains
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Opportunities and areas of growth – matched
with Australian capability
• GCC – UAE, Saudi Arabia, Oman
- harsh, remote conditions, greenfields, Aussie expats, capacity bldg
• South Asia – India and Pakistan
- little or no HH experience and expertise, positive re Aust
• SE Asia – incl. Indonesia, Thailand
- proximity to Australia, road freight congestion, capacity constraints
• Latin America – Brazil, Chile
- seeking operational and cost efficiencies, need for flexible
regulation model, resources focus
• Africa
- need for infrastructure, harsh conditions, resources focus
But Australian strategy, capacity and appetite to
compete is the key...
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- $15-25 billion
- Linking 6 GCC
members West to
East: Kuwait,
Bahrain, Qatar,
KSA, UAE, and
Oman via 2,177km
of railway
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GCC rail opportunities
Picture provided by Saudi Railway Company
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Assessing and Pursuing global rail opportunities
• Research and understand your global competitors and recognise what global markets truly value
• Utilise and cross-check diverse sources of intelligence and avoid taking anything on face value
• Partner where possible – understand where you fit in the global value chain and don’t try to go it alone – maybe start here in Aust
• Develop a strategy and deliver a tailored “pitch” re your competitive offering
• Be focused, persistent and be proactive
• Join missions and other initiatives to benefit from “Australia Inc”
• Allocate sufficient people and budget to global marketing and business development
• Seek help from others with relevant capabilities – consultants, ARA, ICN, State Govts, other more experienced companies, Austrade
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How Austrade can assist Australia’s rail sector • By knowing your (and the industry’s) capabilities and interests
are
• Global network, diplomatic status, to connect you with projects, decision-makers, partners – not only in rail, but infrastructure, resources, manufacturing, research, education and training, energy efficiency
• Through our relationships – e.g. in Japan, Korea, Turkey, Europe – for third-market projects
• Promoting and profiling Australia’s HH rail in partnership with other parts of govt, industry – e.g. HH capability brochure
• Information on opportunities, market dynamics and practices – rail market profiles – GCC, Brazil, India, Thailand, Turkey, etc
• Export Market Development Grants http://www.austrade.gov.au/Export/Export-Grants
• Introduction to Efic – SME and structured financial assistance - www.efic.gov.au
• Many other things – just ask and we will either assist or refer you to others who can
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Austrade’s global network
Peter Ironmonger, rail sector lead,
Trade Manager - Infrastructure
Phone: 02 9392 2784
Mobile: 0434 650 404
Email: [email protected]
For further information
India Freight Rail & Heavy Haul
Sector – Focus on DFC
Hemant Padale - Business Development Manager
Australian Trade Commission, India
Heavy Haul Conference 2014, Newcastle
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Indian Rail Market-
Abundant Challenges & Opportunities
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Overview on Indian Railways
• Owned and operated by Government
– Budget CAPEX for FY 2014-15 is $10 billion
– Annual procurement $ 5 billion (Import- $ 500 million)
• Fourth largest network & Second largest freight carrier
• 64,000 kms, 19,000 trains, 25 million passengers/day,
2.65 million tonnes freight/day
• Owns and Operates various manufacturing facilities
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Indian Rail Sector
• Dedicated Freight Corridor (DFC) Projects
• Urban Metrorail Projects
• Indian Rail Expansion & Modernisation Programs
• High Speed Rail Programs
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The Current Freight Scenario…
$14 Billion
Freight
Revenue
$43/tonne
$5 Billion
Passenger
Revenue
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Dedicated Freight Corridor (DFC) Project
• DFCCIL* – an SPV
• Length: 3,300 Km
• Cost: $16.7 billion
• Complete: FY 2018-19
• Funding Arrangement:
Government, JICA*,
World Bank and under
PPP
DFCCIL- Dedicated Freight Corridor Corporation of India Limited
JICA- Japanese International Co-operation Agency
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Dimensions for DFC Feature Existing On DFC
Moving Dimension
s
Height
7.1 m for Western DFC 5.1 m for Eastern DFC
Width
Container Stack
Single Stack
Double Stack
Train length
Train Load
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Design features of DFC Heavier Axle Loads
Axle Load 22.9t/25t
32.5t/25t for Track Superstructure
Track Loading Density
Maximum Speed
Single Stack
Double Stack
Grade Up to 1 in 100 1 in 200
Curvature Up to 10 degree Up to 2.4 degree
Traction Electrical(25 KV) Electrical(2x25 KV)
Station Spacing 7-10 Km 40 Km
Signalling Absolute/Automatic with 1 Km spacing
Automatic with 2 Km spacing
Communication Emergency
Sockets/Mobile Train Radio Mobile Train Radio
Existing On DFC
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DFC Project- Contracting Strategy
• FIDIC yellow book customized for Design – Build railway infrastructure works
• Slice and Package system – Enhanced competition
• PQ followed by one/two stage bidding – Pre-Qualification followed by two stage bidding – Eastern
Corridor
– Pre-Qualification followed by single stage bidding – Western Corridor
– Engagement of consultant through Quality-Cum-Cost-Based- System (QCBS)
• New Technology encouraged
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Future Plan for Dedicated Freight Corridors
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Impact on Bulk Commodity Transport
Pre DFC Post DFC
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What’s in it for Australia ?
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Global Collaboration with Indian Railways
• Recognition of Australian expertise in Heavy Haul
• Broader engagement strategy with Indian Railways
(Heavy Haul Rail)
• Current MOU with countries;
– Japan, China, Germany, France, Spain, Belgium, Austria, Czech
Republic
– Common areas of collaboration
o Development and Modernisation of assets
o High speed rail and improving speed on existing network
o Operation and Maintenance
o Safety and Station redevelopment
o Freight Rail
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Engagement Opportunities for Australia
• Collaborative Research with Indian Railways research
arm and Universities (Centre of Railway Research)
• Sharing of expertise on Rail Technologies
• Sharing expertise in Financing models and PPP
methodologies
• Engaging in common interest markets (Australia, Africa,
Middle East)
• Engaging with first & last mile connectivity project (private
port operator, private miners)
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Specific Opportunities for Australian Rail
Industry
• Consultancy Services – Project Management
– Quality/Safety Audit
– Freight Pricing; Marketing
– Capacity building; Earthworks; Energy efficiency
• Construction & Systems – Consultancy and design services
• Equipment and Technology – Technologies for condition monitoring
– Technologies for higher axle load and speed
• Education Services & Skills training – Development of Heavy Haul Research Institute & Rail University
– Training in areas of Heavy Haul operations
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Challenges and Mitigation Strategies
• Managing Business Risk
• Contracting Process
• Relationship Management
• Lack of Information
Partnership & Research
• Uncertainty
• Longer Gestation
• Human Resources
Long Term Approach
Within Control Limited Control
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Austrade Support in India
• Dedicated Rail & Transport Initiative team
• Profiling of Australian Rail capability
• Strong engagement with Ministry of Railways, DFCCIL, &
Other key players
• Opportunity identification
• Market Insights
• Partner search
• Market visit program
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Austrade Contact Points for India
Grayson Perry
Trade Commissioner
Email:[email protected]
Ankur Bhatia
Business Development Manager
(Infrastructure)
Email:[email protected]
Hemant Padale
Business Development Manager
(Infrastructure)
Email:[email protected]
Peter Ironmonger- [email protected]
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Back Slides
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Key Challenges & Mitigation – Indian Market
• Managing of Risk
• Bureaucracy & Project delays
• Tendering Process
• Lack of Transparency
• Financial constraints
• Relationship management
• Need of an agent /partner
• Lack of skilled manpower
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Strategies to tackle the challenges
• Partnership
• Research
• Patience & long term approach
• Relationships
