www.ara.net.au ABN 64 217 302 489

RAIL IN AUSTRALIA Phil Allan, Director Policy & Advocacy

Wingecarribee High Speed Rail & Rail Freight Seminar 28 May 2013

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The Australasian Railway Association

Peak organisation representing: • Passenger operators • Freight operators • Track owners and managers • Manufacturers of rolling stock • Construction companies • Public and Private

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6th largest rail network globally

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Our annual customers... 951 million tonnes

of freight 783 million customer

journeys

Our passenger and freight rail networks are at or exceeding capacity

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Rail Industry: Size • Labour force: 44,210 people

(+70,000 working in industries supporting rail)

• Investment commitments in rollingstock and track $36 billion

• Track 44,262 km in Australia • Over 1,800 locomotives and 32,000

wagons and carriages

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Rail – on the national agenda

• Massive investment in national network • Funding for urban projects – Cross River

Rail?, Melbourne Metro?, electrification of Adelaide’s urban network?, Perth expansion? etc

• Untangling freight and passenger networks • Light Rail emergence • Intermodals being developed • Level Crossings being upgraded

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Rail in Australia

Part one: Rail Freight Part two: High Speed Rail

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Rail freight – The big picture 2008/09 2009/10 Change

Coal 282.73 318.62 12.7%

Ore 350.7 412.02 17.8%

Sugar 25.88 27.57 7.7%

Bauxite 18.03 17.91 -0.67%

Other Bulk 56.74 56.79 -

Non-Bulk 18.84 17.94 -4.8%

Total 755.29 853.46 13.39% * Numbers in million tones.

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Freight task to double within 20 years

409 million

794 million

2011 2031

Total freight moved in NSW /year (million tonnes)

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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 852.5 million tons

Non-Bulk Commodities 13.99 million tons

Rail freight Rail Freight moves nearly 1billion tons of goods p.a. (2012)

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Rail’s share of containerised freight Rail’s share of containerised freight

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Some lines need work!

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Agriculture and rail

• The agricultural sector represents around 15% of the nations GDP

• Transport is a critical component and

rail can play a much larger role • The ARA is working with the NFF and

others to promote improvements in the supply chain (e.g containerisation)

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Over 300 years old…

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Freight from road to rail

• Everyone says it – safe, environmental benefits, efficient

• It is happening • It requires investment in infrastructure,

processes and systems • It requires a re-think re investing in

roads • It requires the rail industry to play its

part

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What do rail customers want? A Woolworths’ perspective

16

• 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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Inland Rail

$4.4 billion Melbourne - Brisbane 1731km, 41% existing 25% upgraded, 34% new

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Inland Rail: TRANSFORMING the transport sector • Increase rail’s reliability and efficiency

– double stacking, longer trains, – avoids Sydney bottlenecks – 2m tonnes of freight each year simply pass through – reduce travel times by 6hrs, train speeds of 110kmph

• Increase rail’s market share – 80% on Brisbane - Melbourne – up to 25% for shorter legs

• Eastern Corridor: Highest freight volume in Australia

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Inland Rail: Issues

• Currently lacks a terminal strategy – A new terminal in Western Victoria – A new freight village and terminal in

Bromelton

• $2 billion cost of construction through the Toowoomba and Little Liverpool ranges (environmental, cultural and engineering reasons)

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High speed rail: Imagine…

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High speed rail around the globe Current, under construction and planned HSR = 43,000 km Existing: Austria, Belgium, Bulgaria, China, France, Germany, Greece, Italy, Japan, Portugal, Russia, South Korea, Spain, Sweden, Switzerland, Taiwan, The Netherlands, Turkey, United Kingdom, Uzbekistan

Under new/continued construction: Algeria, Argentina, Austria, Brazil, Bulgaria, Canada, China, Denmark, France, Germany, Greece, Indonesia, India, Iran, Italy, Mexico, Morocco, Norway, Poland, Portugal, Russia, Saudi Arabia, South Korea, Spain, Sweden, Switzerland, Turkey

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China’s HSR Story

• 2008 – “4 vertical & 4 horizontal National High-Speed

Rail Grid” announced

• 2010 – 7,413km of 200-350km/h HSR

– More than 1,000 high speed services in operation

– Moving around 925,000 passengers daily

• By 2020 - 16,000 km of High Speed Lines will operate

in China

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2010: China’s HSR Network

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2020: China’s 25,000km HSR Network

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Travel time comparison

2009:

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New living circles

• HSR is changing business

and leisure travel patterns

• Providing new opportunities

in the regional cities

• Bringing people closer together

• Improving rural developments

• Increasing in patronage (e.g. 85%

increase on Beijing-Tianjin Line) Photo courtesy: RailGallery

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New living circles Through fast, frequent & reliable High Speed Trains

– “One-hour living circle”

• Reach cities within 300 km in 1 hour

– “Three-hour living circle”

• Reach cities within 900 km in 3 hours

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Creating new living circles

What about here in Australia?

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Australia - Why High Speed Rail?

• An efficient and comfortable way to travel

• Reduced congestion

• Regional development and improved labour supply

• Deferral of second Sydney Airport

• Increased Land Values

• Less reliance on fossil fuels

• Safety

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Regional benefits

• Huge economic and social benefits - $5.2BN annually

• Better access regionally

• Increased housing values

• Social connectedness

• Transform where and how people work

• Stop the development of mega cities

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HSR – next steps?

• Currently not a policy for either major party

• Requires vision • Requires a re-think of scope and cost • Route should be defined and land

preserved • Funding options should be investigated

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Building High Speed Rail –

The Time is Right!