Advancing The Australian Rail Industry - ICN

112
Advancing the Australian Rail Industry

Transcript of Advancing The Australian Rail Industry - ICN

Page 1: Advancing The Australian Rail Industry - ICN

Advancing the Australian Rail Industry

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Advancing the Australian Rail Industry

2014 Queensland Briefing Session

Steven Silvester – Director of Investment Attraction, Brisbane Marketing

2pm Wednesday 4th June, Level 5, 123 Eagle Street Riverside Centre, Brisbane

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Advancing the Australian Rail Industry

2014 Queensland Briefing Session

Tony Carney - National Sector Manager, Rail

Industry Capability Network (ICN)

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Agenda – Queensland Briefing Sessions

Official Welcome: Steven Silvester, Director of Investment attraction, Brisbane marketing

Introduction and Overview: Tony Carney - National Sector Manager – Rail

Developing a Sustainable & Global Competitive Australian Rail Industry:

Bryan Nye OAM, CEO Australasian Railway Association

Rail Supplier Advocate update and

Keeping the Rail Industry ON Track to 2040, the Rail manufacturing CRC:

Bruce Griffiths, OAM, Rail Supplier Advocate; Interim Chair Rail, manufacturing CRC

Queensland Future Opportunities for Rail Suppliers and Manufacturers: .

Matt Schlotterbach, Executive Director (Rail Strategy) TransLink Division

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Agenda – Queensland Briefing Sessions

Break: Speed Networking

InnoTrans 2014 & Austrade: Naomi Frauenfelder, General Manager, Australasian Railway Association and Peter Ironmonger, Trade Manager – Infrastructure, Austrade

Improving the Rail Supply Chain - Update on the Rail Supply Chain Continuous Improvement Program: Mal Clark, Enterprise Connect

Opportunities for Rail Suppliers in Queensland Mining projects: Dr Ian Dover, Business Development and Commercialisation, Minerals Down Under Flagship, CSIRO

Panel Discussion: The Future of Rail Manufacturing in Australia – chaired by Bryan Nye OAM

Wrap-up and Next Steps: Bruce Griffiths OAM, Rail Supplier Advocate

Close & Informal Networking

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Role of the National Sector Manager, Rail

• Facilitate a national approach to all ICN rail activities

• Identify rail opportunities locally and internationally

• Maximise ANZ content for local and International opportunities

• Promote ANZ rail capabilities

• Rail Industry Development Strategy

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ICN Australia & New Zealand Rail Team

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Industry Capability Network (ICN)

• National organisation

• Team technical business consultants (Rail specialist)

• Match opportunity with local capability

• ICN Gateway – Rail Directory

• Company profile – must be

comprehensively populated

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ICN State Rail Team Contacts For further project information:

Steve Van der lit - Victoria

m: +61 447 888 005

e: [email protected]

Thuy Ho – New South Wales

m: +61 412 526 605

e: [email protected]

Gerhard Klooster – Queensland

m: +61 447 200 499

e: [email protected]

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ICN National Sector Manager, Rail For further information:

Tony Carney – National Sector Manager Rail

m: +61 418 353 718

e: [email protected]

Visit the ICN Australian Rail Directory:

www.rail.icn.org.au

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www.ara.net.au

ABN 64 217 302 489

OUTLOOK FOR RAIL

Bryan Nye, CEO ARA

4 June 2014

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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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www.ara.net.au

6th largest rail network globally

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Passenger Operators

• Sydney Trains/ NSW Trains

• Metro Train Melbourne

• Yarra Trams

• V/Line

• Adelaide Metro - DTEI

• Public Transport Authority WA

• Queensland Rail

• Great Southern Railway

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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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Congestion in context

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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

20010/11 2011/12 Change

Ore 435.08 496.25 14.06%

Coal 305.06 306.77 0.56%

Sugar 25.23 25.43 0.79%

Bauxite 17.79 17.35 -2.47%

Other Bulk 56.76 61.52 8.39%

Non-Bulk 19.58 22.32 13.99%

Total 859.5 929.64 8.16% * Numbers in million tones.

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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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Project Overview Roy Hill

• Roy Hill will build, own and

operate a 342 kilometre single

line, heavy haul railway to

transport processed iron ore to

the south of Port Hedland

• Five ore trains will operate per

day, with a total payload of

31,450 tonnes of ore

• An advanced communications

based signalling system will

provide improved safety and

operational efficiency, while also

making the rail system ready for

future autonomous operations

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Rail Market Share of

Interstate Freight Movements

TARCOOLA

KALGOORLIE

BROKEN HILL

TENNANT CREEK

BRISBANE

ALICE SPRINGS

ADELAIDE

DARWIN

KATHERINE

PERTH

SYDNEY

MELBOURNE

90%+

80%+

80%+

5% 5%

21%

5%

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Inland Rail

A $4.4 billion

Melbourne – Brisbane

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

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Inland Rail – progress

• $300m currently in Federal budget from 2014/15 for pre construction works

• Coalition commitment – A 10 year timeline for construction from 2016-2026

– Additional funding from the QLD Government- so far committed $67 million for passing loops and tunnel expansions

– Stated link to a Port of Brisbane proposed new corridor through Brisbane.

• Critical element is the tunnel through the Toowoomba Range and route down to Port of Brisbane

• Remainder of funding to be determined

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Northern Sydney Freight Corridor

• Planned to enhance the capacity and

reliability of the freight rail network and

passenger services between Newcastle

and Sydney

• Currently a major bottleneck for rail into

and out of Sydney

• $1.1 billion commitment in December 2011

– $840 million federal government

– $214 million state government

• ¼ of the sections of work completed so far

• All scheduled for completion in 2016

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Poor Track Quality

Grain Lines are Cactus

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Locomotive Fleet

0

20

40

60

80

100

0

100

200

300

400

500

600

less than 5 years 6 to 10 years 11 to 15 years 16 to 20 years 21 to 25 years 26 to 30 years more than 30years

Cu

mu

lati

ve

to

tal (%

)

Nu

mb

er

of

loc

os

Diesel

Electric/XPT

Average age

Australia

21 years

Average age

USA

8 years

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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

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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

Queensland Rail $797M

Gold Coast Rapid Transit

System

$178M

Moreton Bay Rail Link $170M

Surat Basin Rail Corridor $4M

Rail Crossings Upgrade $128M

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VIC – Key Investment

Projects Funding

Victrack

New projects $121M

Existing projects $1.5B

Avalon Airport Raillink $325K

Cranbourne – Pakenham

Rail Corridor project

$20M

Port Rail Shuttle

(Intermodal System)

$3.8

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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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Benefiting all Australians

Whether they travel on public transport

or not, every Australian benefits from it

• One passenger train takes 525 cars off

our roads

• Less cars on the road =

– Less road congestion

– safer roads

– reduced greenhouse gas emissions

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Rail Suppliers

Single Rail Supplier Industry Voice Guiding

government policy and agency actions

including Austrade

ARA Board

RCG

JHG, Thiess,

Laing O’rourke,

Leighton,

Downer Works,

Abigroup,

McConnel

Dowel, Balfour

Beatty, Ansaldo

STS.

RMG

UGL Rail,

Bombardier,

Downer, Alstom`,

CAF, Bradken,

Siemens,

Invensys,

ComSteel.

RSNA

Waranga

Engineering,

TTG Transport,

OEM Technology,

Faiveley.

ARA Operator

Groups

PTG

FTG

WDG.

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ARA Economic Analysis of Rollingstock Procurement: Industry Brief

Deloitte Access Economics | 42

• Time gaps between orders creates significant

resourcing issues for the industry. For instance,

Future Australian Passenger Rolling Stock Report Phase 2 Sporadic Ordering

• Repeated re-tooling and

disassembly of production lines

increases costs.

• Investments in R&D or equipment

may also need to be recouped over

a shorter timeframe.

• Ongoing uncertainty regarding the

timing and size of orders impact on

how industry is able to invest.

• Over 1,200 rail cars are aged 30

years or over

• Over the next 20 years national

fleet will grow from 4,000 to

11,000 cars.

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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… it’s always better

• Travelling to work

• Sending freight

• Getting there safely

• The impact on the environment

• Costing less

• Rail… it’s always better

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Rail Supplier Advocate Update

Bruce Griffiths OAM, Rail Supplier Advocate

Rail Industry Briefing

Brisbane

4 June 2014

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Australian rail manufacturing

Annual turnover of more than $4 billion

Approximately 330 firms employing over 15,000 people, with over 150 years of both rail design and manufacturing capability

National rolling stock fleet projected to grow from 4,000 cars to 11,000 cars (average growth rate of 3.2% per annum nationwide) and cost $30 billion over the next 30 years

Largest tram network in the world (Melbourne, Victoria)

World’s 6th largest rail infrastructure network, spanning the continent with 44,262 kilometres of track

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Benefits of Better Coordinated Rail Procurement

ARA and Department of Industry comissioned Deloitte Access Economics to identify benefits of a more coordinated and harmonised approach to rail procurement.

‘Opportunities for Greater Passenger Rolling Stock Procurement Efficiency’ report launched by Minister Truss, Deputy Prime Minister and Minister for Infrastructure and Regional Development at AusRAIL 2013.

Findings of the report:

Over the next 30 years, state governments could spend $30 billion on procuring rolling stock.

More efficient planning around purchases can save governments nearly $6 billion on their upcoming rail projects.

Could retain nearly $15.5 billion in economic activity in Australia over the next 30 years.

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Benefits of Better Coordinated Rail Procurement

The industry benefits:

Increased foresight and ability to plan for upcoming orders.

More functional and well-coordinated supply chain.

Increased innovation for the industry.

Future growth and sustainability of the Australian rail industry.

Support Australian jobs and regional development.

Higher productivity.

ARA are now pursuing these issues with the states.

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On Track to 2040 – Tech Roadmap 210 participants from over 110 different

organisations.

Started June 2011. Launched in June 2012.

3 Technological Priority Areas– Materials and Manufacturing, Monitoring and Management, and Power and Propulsion.

18 Priority Opportunities:

Advanced design

Low cost manufacturing systems

High performance materials for heavy haul

Advanced manufacturing

Advanced, lightweight materials

Simulation for materials and manufacturing

Automated health monitoring for infrastructure

Automated control and operations

Low cost manufacturing systems

Safety threat detection, intervention

Advanced data analysis and

information systems

Advanced operation management

systems

Energy regeneration

Advanced braking systems

Energy use management tools

Electric motors and systems

Emissions reduction technologies

Gaseous fuels

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What’s Next? - Rail Manufacturing CRC

Rail Manufacturing CRC to pursue the Roadmap’s identified priority areas and implement recommendations.

Minister Macfarlane announced $31 million in funding funding for this CRC on 21 February 2014 to increase Australia’s rail industry capability and global competitive position.

$ to $ funding leverage.

6 Year Term.

Strong support from industry, government, and R&D providers.

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Rail Manufacturing CRC Status

Cash $21m

Participants

$16.0m

Other $5m

Participants :

• Confirmed

• Pending

19

6

In Kind

• Value

• FTE

$46.3m

172

Centre (including Admin, Education,

Board, Commercialisation)

$10m

Education $1.7m

Grant $31m

Total Value $98.3m

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Rail Manufacturing CRC

Participants:

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NEW Entrepreneurs’ Infrastructure Programme

$484.2 million over five years

Commences on 1 July 2014

Delivered through a Single Business Service initiative - new streamlined model for industry to interact with government

Provide market and industry information

Offer business management & commercialisation advice and skills

Supply access to researchers and innovators to help to re-engineer business operations, products and services

Help industry connect with supply chains and potential markets

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Increasing Global Competitiveness

Technology Roadmap – identified future opportunity areas for Australia’s manufacturing future – important lessons learned!

Rail Manufacturing CRC – global collaboration platform with funding available to invest in areas of Australia’s competitive manufacturing strengths – important opportunity to be involved.

Trade missions – InnoTrans 2014 – increase exposure to international customers and understand opportunities that might exist in the global market.

Better coordinated rail procurement – harmonised and coordinated procurement to increase integration with global supply chains.

Entrepreneurs’ Infrastructure Programme –help boost international competitiveness and improve connections with supply chains and markets

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Email: [email protected] DEPARTMENT OF INDUSTRY

Industry House

10 Binara Street

Canberra City, ACT 2601, Australia

Telephone +61 2 6213 6000

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Rail Industry Briefing

Matthias Schlotterbach

Executive Director (Rail Strategy) TransLink Division |4 June 2014

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Overview

Rail Industry Briefing| 6 June 2014

• Approximately 6,000 kilometres of rail network subsidised

by the State.

• Future upgrades need to be incremental and affordable.

• Key focus on supporting the four pillar economy (tourism,

agriculture, resources and construction).

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Current projects

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Moreton Bay Rail Link

Rail Industry Briefing | 6 June 2014

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Moreton Bay Rail Link

Rail Industry Briefing | 6 June 2014

• Network extension from Petrie including six new stations.

• Thiess Pty Ltd has been selected to design and construct

the project.

• Commenced late 2013 with commissioning in 2016.

• Cost of $1.147 billion – jointly funded by the Australian

Government ($742 M), the Queensland Government

($300 M) and Moreton Bay Regional Council ($105 M).

• The Koala Tagging and Monitoring Program is continuing

to be a success; to date, over 290 koalas have been

monitored and checked.

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Lawnton to Petrie upgrade

Rail Industry Briefing | 6 June 2014

• Additional track capacity between Lawnton & Petrie.

• Scope includes 4 additional tracks with 2 tracks servicing

North Coast Line and 2 servicing MBRL

• Will ensure services on the new Kippa Ring line do not

impact existing passenger and freight services on the

North Coast Line.

• Enables the benefits of MBRL to be fully leveraged.

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New Generation Rollingstock (NGR)

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NGR

Rail Industry Briefing | 6 June 2014

• The State has awarded a 32 year contract valued at around $4.4 billion to the Bombardier NGR Consortium for the NGR project.

• The State will purchase 75, 6-car train sets to cater for an increase in passenger services and to replace the current aging train fleet.

• Scope includes construction of a modern maintenance facility at Wulkuraka to cater for the NGR fleet.

• This will employ 150 full-time new ongoing positions.

• Arrival and testing of the first of the new trains will begin in late 2015.

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NGR to generate opportunities

Rail Industry Briefing | 6 June 2014

Job opportunities as part of the Maintenance Centre

construction include:

• More than 500 direct jobs (at peak) and over 1,500

indirect local jobs

• The majority of jobs will be in Ipswich

• Job opportunities can be found at

www.gateway.icn.org.au

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Projects in planning and

investigation

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Network and signalling upgrades

Rail Industry Briefing | 6 June 2014

• Outer network stabling sites

- Required to accommodate the expansion of the rollingstock fleet and the projected future growth of the SEQ rail network.

- Will improve the operational efficiency of the rail network by reducing the amount of ‘dead running’ across the network.

- Four confirmed sites: Robina, Banyo, Woombye and Elimbah.

- Construction to commence in 2015 and completed by 2016.

• Signalling upgrades

- European Train Control System Level 2.

- Queensland Rail business case is evolving.

- Review opportunities for funding models to ease the upfront cost with a staged implementation over a 10 year period.

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Planned activities and studies

• Other planning studies underway including:

- SEQ Capacity Improvement Study, Northern Surface Connection via Mayne Yard, Clapham Stabling & Salisbury to Park Road Infrastructure Requirements and Brisbane to Cairns Rail Line Capacity Improvement.

Rail Industry Briefing | 6 June 2014

• Coomera to Helensvale duplication:

- Duplication and signal upgrades on the Gold Coast line.

- Construction anticipated to start in 2014/15 and to be completed by 2018 to support the Commonwealth Games.

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Linking the rail network

Rail Industry Briefing | 6 June 2014

• Beerburrum to Landsborough

- Track duplication between Beerburrum and Landsborough

- Support the future demand for freight rail operations on the North

Coast Line

- Detailed design completed

• Gold Coast Rapid Transit Expansion

- Potential link from University to Helensvale

- Preliminary planning and option analysis

- Business case development underway

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Bus and Train (BaT)

Rail Industry Briefing | 6 June 2014

• New 5.4 km north-south tunnel from Dutton Park to Victoria Park • New underground stations at Woolloongabba, George Street and

Roma Street • Pending approvals early construction works could begin in 2015 • Major construction works (mid 2016 to 2020) • Operational testing (2020) • Open the tunnel to trains and buses (2021)

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Projects enabling agricultural freight

Rail Industry Briefing | 6 June 2014

• Toowoomba Range crossing: - $50 million announced for two new passing loops and

tunnel lowering

- Will create up to 20 additional train paths per week

• Inland Rail: - The route would be approximately 1,731 km and would

provide a competitive freight price with road

- The Australian Government has committed $300 million to enable Inland Rail to commence in 2014

- In line with Moving Freight Strategy which aims at putting more freight on rail, supports agriculture sector and regional development

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Queensland regional network

Rail Industry Briefing | 6 June 2014

• The Federal and State governments have agreed to

investigate incorporating Queensland into the national rail

network

• Jointly the two governments have asked ARTC to

investigate the viability and benefits of this

• ARTC have begun working with Queensland Rail staff

and will report back to the Queensland and Federal

governments by this year

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Rail transport service contract funding

Rail Industry Briefing | 6 June 2014

• Contract for above and below rail services with

Queensland Rail

• Contract is designed to enable Queensland Rail to earn

an appropriate return on assets

• Funding provided through this contract supports the

continued maintenance and operation of rail

infrastructure, stations and rollingstock

• Funding also supports a significant program of capital

works

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Rail transport service contract capital

program

Rail Industry Briefing | 6 June 2014

• The RTSC supports a significant capital program of

upwards of $500m per annum

• Works include network upgrades/extensions,

bridgeworks, station upgrades and rolling stock overhauls

• Queensland Rail routinely seeks tenders for construction

works e.g. ten life expired timber bridges on the central

line near Emerald and on the Blair Athol branch will soon

be replaced with reinforced concrete box culverts

• Contractors will propose and design cost effective

solutions, and gain Queensland Rail approval prior to

construction

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Rail transport service contract - capex

program overview

Rail Industry Briefing | 6 June 2014

Asset Class

Network Upgrade/Extension

Track

Trackside Systems

Bridge Works

Corridor Integrity and Protection

Traction Power

Level Crossings

Total : Rail Infrastructure 2014 - $300m

Buildings

Business Systems

Rollingstock and overhauls

Rollingstock depots and stabling

Stations

Other

Total : SEQ and Regional passenger services 2014 - $210m

Grand Total 2014 - $510m

• Excludes corporate investment

• “Other” includes other infrastructure, fixed and portable plant and civil works.

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Thank you

Visit translink.com.au or call 13 12 30

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www.ara.net.au

ABN 64 217 302 489

INNOTRANS 2014

Naomi Frauenfelder, General Manager TrackSAFE and Industry Development ARA

4 June 2014

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www.ara.net.au

InnoTrans InnoTrans: 23 – 26 September 2014, Berlin Pre-InnoTrans trade mission: Middle East, Alstom, Bombardier and Rail Operators. Structured meetings an opportunity to meet with strategic buyers. 16-19 September 2014 28 companies attending The cost is $2,500 which includes: • access to the Australian Railway Industry Pavilion at InnoTrans • your logo and company information on the Pavilion • participation in relevant networking events • your company’s profile in the mission capability directory • participation in group trade mission activities, such as site visits and round

tables with potential customers If you would like register speak to myself or Tony Carney from ICN

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www.ara.net.au

Australian Pavilion

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Australia. Economic strength and resilience.

Supporting

the Australian Rail Sector’s

International Success

Advancing the Australian Rail Industry briefings

Sydney, Melbourne, Brisbane

May & June 2014

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Australia Unlimited

Austrade

• Federal Government agency

• Promoting and assisting Australian business to be successful in overseas markets at government to government and commercial levels

• Facilitating productive foreign direct investment in Australia

• Promoting Australian education and training internationally

• Commercially focused, highly diverse team with local contacts, cultural, business, industry and language understanding in approximately 60 countries worldwide

• Able to support all types and sizes of Australian business in a variety of ways

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Australia Unlimited

Austrade’s global network of offices

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Australia Unlimited

Austrade in rail – accessing global opportunities Our global network can support you in opportunities across:

Sectors:

- Passenger (including metro and light rail),

- heavy haul,

- infrastructure,

- education & training; and

- Services

- R&D, technology and manufacture

Markets/regions

- Growth and emerging markets (e.g. Middle East, ASEAN, Mongolia, Kazakhstan, India, Latin

America,

Eastern Europe)

- Mature markets (e.g. Western Europe, Japan)

- Third country cooperation – e.g. With companies from Japan, Korea, Europe, Turkey, etc in Asia,

Middle East, South America

And use our networks and ‘badge of government’ to facilitate introductions to key influencers and

decision makers, including for third market opportunities.

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Australia Unlimited

Global Opportunities

Some examples:

• Abu Dhabi, Dubai & Doha Metro – planning, systems, operations and maintenance

• Etihad Rail, Saudi Rail – niche technologies and equipment, consulting, operations and maintenance, training and education

• Singapore & Hong Kong – mid-life upgrades and maintenance

• Thailand – double tracking, training, safety, reliability, maintenance

• India – Dedicated Freight Corridor consultancies, training, rail depot environmental management, urban transit

• Latin America – pit to port and metro development, operations, regulations and training

• Africa – pit to port development and operations, capacity building, training, upgrades and expansion of passenger rail

• China – technology and equipment partnerships, need for heavy haul operations expertise

• Indonesia – PPPs, coal infrastructure

• Vietnam – Metro, etc

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Australia Unlimited

What makes them Opportunities for Australian Rail?

Australia’s long experience and “Brand” in:

Resources, Heavy Haul

• Feasibility and design, simulation modelling

• EPCM

• Operation and asset management

• Training & Education

• Environmental sustainability, safety

• Innovation, R&D, niche equipment and technologies

• Making things work reliably, efficiently in extreme conditions, high temperatures, remote locations, with longest and heaviest trains

Metro, light rail

• Planning, simulation and modelling

• Engineering, operation, asset management, training

• Tunnelling, bridges and other infrastructure

• Innovative technologies, equipment

• solutions to complex problems

Intermodal facilities, transport interchanges

And several successful cases – so we should have some confidence!!

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Australia Unlimited

Branding, perceptions and promotion

• Leveraging the Australian “brand” to influence and position Australia’s rail capability favourably overseas

• Joint promotions, national pavilions, missions

• MOUs – e.g. ARA/RISSB and Indonesia on safety

• ‘Australia Unlimited’ national brand, “Badge of govt”

• Roundtables, briefings, industry showcases, technical seminars

• Capability marketing documents – e.g. Heavy Haul – now available in softcopy online and to be translated into foreign languages in future http://www.austrade.gov.au/ArticleDocuments/2814/Heavy-Haul-Intermodal-and-Freight-Rail-2013-10.pdf.aspx

• Rail industry market and opportunity profiles – India, GCC, Brazil, Thailand

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Australia Unlimited

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Australia Unlimited

Investigating and pursuing opportunities –

some options

• International trade shows

• Individual business trips with tailored business matching

• Sharing information and engaging with existing local

partners re international opportunities

• Initial business with international player in domestic

market then partner offshore

• Clustering / partnering with non-competing companies

• Engaging consultants / Austrade for market research and

partner identification

• Opportunities and relationships delivered by Austrade,

State Governments and industry partners

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Australia Unlimited

Investigating and pursuing opportunities –

pitfalls

• High costs of international travel and trade show participation

• Reactive vs proactive

• Transactional rather than relationship based, lack of management commitment

• Lack of research, due diligence, cross checking – not being able to get accurate, reliable information

• Lack of understanding of foreign business environment, protocols, culture

• Little or no assessment of risks, drain on resources

• Not focusing on own areas of true global competitiveness, not selling effectively

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Australia Unlimited

What Austrade can offer you:

• In-depth briefings on markets and target companies

• Opportunity identification and qualification assistance

• Video/teleconferencing for relationship building with o/s customers

• Chance for involvement in inwards and outwards missions

• Linkages to global supply chains and third country partners and customers

• Interpret business culture and local commercial practice, language support

• Business meeting program arrangement and accompaniment using our

relationships and badge of government

• Being your “eyes and ears” and provide practical on the ground support

• Export Market Development Grants (EMDG) assistance to qualified exporters.

• Introduction to others who can assist you – e.g. the Federal Govt. agency - Export

Finance and Insurance Corporation (EFIC) who support Australian exporters with

buyer finance and advance payment, performance and warranty bonds –

www.efic.gov.au

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What is EMDG?

•A key Australian Government financial assistance program for aspiring and current exporters.

•Designed to encourage small and medium sized Australian businesses to develop export markets.

•For applicants that have incurred $15,000 eligible export promotion expenses, EMDG reimburses 50% of

those expenses above a $5,000 threshold

•Provides up to eight grants to each eligible applicant

Who can apply?

Australian-based businesses, individuals, partnerships, companies, statutory corporations, co-ops and

trusts that have:

• carried on an export business in Australia during the grant year

• annual income not more than $50m

• exported or promoted for export eligible goods, most services, intellectual property or know how; or

promoted events held in Australia

• spent at least $15,000 on eligible export promotion activities over the last financial year (or the last two

financial years for first grant)

• no disqualifying convictions

• can satisfy the Grants Entry Requirements (First-time applicants only)

Export Market Development Grants Scheme

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How to apply for EMDG? Step One

• Learn about EMDG

• Email us your questions at [email protected]

• Visit www.austrade.gov.au/exportgrants

• Call Austrade on 13 28 78 and ask for your local EMDG office

Step Two - Check your eligibility to apply for EMDG and join mailing list:

www.austrade.gov.au/exportgrants/howtoapply

Step Three - Complete an application form and supporting schedules - available

shortly

www.austrade.gov.au/exportgrants

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Australia Unlimited

How you can help us to help you

• Let us know your capabilities, interests and experience

• Help us to understand your competitive strengths and reference

projects

• Ask about utilising our VC facilities and support for meetings with

overseas contacts

• Let us know when you are visiting overseas markets and meet with

our offshore colleagues

• Feel free to seek our views re offshore queries and companies

• Keep us in the loop – not only when you encounter difficulties!!

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Australia Unlimited

Next steps and events • Let us know if you’re interested in international business

• Join events organised / supported by Austrade, State Government, ARA and others.

• Here are some examples of events to consider:

– Heavy Haul Conference and Exhibition, (Newcastle) 27-28 Aug 2014

– ADB, World Bank and Australian Aid program briefings (Brisbane, Sydney

and Melbourne), October 2014 (details and timing TBC)

– Pre-Innotrans Middle East Stopover program, Dubai & Abu Dhabi, 15-17 Sept

2014 (TBC)

– InnoTrans, (Berlin) , 23 – 26 Sept 2014

– AusRail, (Perth), 11-12 Nov 2014

– Middle East Rail , (Dubai) 17-18 March 2015

– International Heavy Haul Association Conference, (Perth) 21-24 June 2015

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Australia. A Wealth of Opportunities .

Let’s talk further

For more information, please email or call:

Peter Ironmonger, Trade Manager - Infrastructure

Contact: 02 9392 2784

Mobile: 0434 650 404

Email: [email protected]

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Supplier Continuous Improvement Program

Rail Industry Updates

Mal Clark / Richard Tooher

June 2014

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Business Review

• A holistic review of a business

• Uses analytical and benchmarking tools

• Business Adviser will work with a firm to:

– Understand its strategy and business operations

– Identify strengths and opportunities

– Identify problems and the root cause

– Assess potential for innovation, improvement and growth

– Assist firms to access world-class business tools, processes and

technology

– Agree specific action plans

• Business Adviser maintains an ongoing relationship with the firm

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Supplier Continuous Improvement Program

• Customers/Primes require their suppliers to:

– Measure and meet Quality, Cost and Delivery Standards

– Implement mature sustainable business processes

– Adopt efficient and effective manufacturing processes

– Demonstrate a commitment to and culture of continuous improvement

– Consider innovation as a normal part of business

• The SCIP encapsulates these into a three year internationally

recognised framework for continuous improvement; with each year

– Comparing Quality and Delivery KPIs with Key Customers

– Undertaking Business and Manufacturing Excellence diagnostics and

identifying areas for improvement

– Evaluating progress against previous years AFIs

– Undertake supplier/customer relationship development

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Completed cycle 1

Completed cycle 2

SME SCIP Participants

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What the Customer is saying (A Victorian Perspective)

• The travelling public are expecting higher performance;

• This has resulted in Mark Wild, CEO of PTV saying – “We have money and contracts ready for firms who can solve our problems”

• Faster turn around for rolling stock overhaul

• Introduction of new services – Wi-Fi in regional trains

• Jason Westwood, Procurement Director, Metro Trains Melbourne saying – “We are looking to work with our suppliers to deliver and solve PTV’s problems.”

• Supplier “X” winning major contract – Changed business processes – international exposure

– Lead time reduced from 9 weeks to 2 weeks (10 working days)

– Looking to reduce to 8 working days

– MTM want to place more orders

• Supplier “X” is coming to Queensland!

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Entrepreneurs’ Infrastructure Programme

From 1 July 2014, the new Entrepreneurs’ Infrastructure Programme

will provide:

• Market and industry information and advice;

• Business management skills for small and medium enterprises

including global supply chain engagement services;

• Support for businesses to collaborate with the research sector to re-

engineer business operations and develop new ideas with

commercial potential;

• Commercialisation advice and brokering services for businesses to

gain access to private sector capital; and

• Support for businesses to help them access specialist expertise,

such as expertise on intellectual property protection, as well the

commercialisation of their new ideas.

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Contact Details

• Sam McNaughton

– National Manager, Continuous Improvement Network

[email protected]

– Ph: 0420 960 934

In Queensland

• Richard Tooher

– Business Adviser

[email protected]

– Ph: 0400 662 583

In Victoria

• Mal Clark

– Business Adviser

[email protected]

– Ph: 0428 328 228

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The Future of Rail Manufacturing in Australia Chaired by Bryan Nye OAM, CEO, ARA

Featuring: ARA

Austrade

Rail Supplier Advocate

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Panel topics

How do you view the current state of the Australian rail industry?

How do you think we can work together to ensure a sustainable and competitive future for the Australian rail industry?

What else do you think we can do to improve the competitiveness of the rail industry?

Do you think a clustering approach would be useful?

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The Forward Plan for the Australian

Rail Industry: Wrap-up and Next Steps

Bruce Griffiths OAM, Rail Supplier Advocate

Rail Industry Briefing

Brisbane

4 June 2014

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The Forward Plan

The key stakeholders of the rail industry are now collaborating

Need to work together to take advantage of upcoming opportunities – domestic and international

Working with state purchasing authorities to take initiatives forward

Existing support mechanisms to pursue opportunities:

Rail Manufacturing CRC

Austrade – EMDG

ARA and InnoTrans

New measure – Entrepreneurs’ Infrastructure Programme

Importance of industry-driven activities going forward