ISSUE 1 | 2017
SPECIAL SUPPLEMENT
WOMEN IN RAIL:
TIME FOR ACTION
TURNBULL SPRUIKS BIG BUDGET FOR RAIL
INDUSTRY PRAISES INLAND RAIL DEVELOPMENTS
SYDNEY METRO ROLLS ON
KIWIRAIL BOSS TALKS KAIKOURA RECOVERY RAIL HANDLES MASSIVE GRAIN CROP
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CONTENTS
ISSUE 1 | 2017
4 5 51 56 58
Editorial: Politics gets in the way of progress, again New owner for Rail Express Q&A with KiwiRail boss Peter Reidy Product news: Schaeffler’s heavy rail bearings Analysis: Is the bureaucracy of democracy bogging down our future?
NATIONAL 6 8 8 10 16 46 48
ARA: Broad praises Budget Road pricing reforms on the table Dalla Valle to lead Pacific National Inland Rail taking shape Federal Budget: Turnbull says new method will create more projects States respond to Federal Budget Infrastructure Australia calls for corridor protection
10 16
NEW SOUTH WALES 18 18 19 20 22 45 52 54 56
Yancoal beats Glencore to buy Rio’s Hunter coal mines TfNSW opens graduate program ARTC reaches Hunter Valley Access Undertaking deal Three stages of Sydney Metro in development Moorebank Intermodal Terminal work kicks off Bank cards the next step for Opal system Newcastle Agri Terminal has successful first season Hunter farm gets new rail access system Quattro ports enjoys grain success
24 20
QUEENSLAND 23 23 24 25 26 27 28
Moreton Bay Rail Link closure justified QR, ATSB look into rail worker death Changes afoot at Aurizon, jobs axed State moves on Townsville rail link Cross River Rail project funded by Palaszczuk Government Glencore copper operation struggles under energy costs Labor at odds over Adani’s Carmichael project
28
32 34 34 50
45
40
VICTORIA
Turnbull, Victoria trade barbs as Regional Rail gets funding McConnell-Martinus J/V wins Murray Basin contract Minister defends level crossing program despite low cost-benefit ratio Melbourne Airport rail link: A necessity
SOUTH AUSTRALIA 36 36 37 37
Oaklands crossing to go thanks to joint funding British bidder saves Whyalla steelworks New Adelaide site for Northline Viterra credits rail for successful bumper crop
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SPECIAL SUPPLEMENT
SPECIAL SUPPLEMENT
WESTERN AUSTRALIA 38 39 39
Leader named for Metronet project 5bn tonnes of iron ore exported by Rio Brookfield completes Merredin upgrade
OUT & ABOUT 40 42 44
Rail R U OK? Day at Sydney’s Central Station RTAA’s Field Day a success Alstom celebrates 100 years for Ballarat workshops
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WOMEN IN RAIL: TIME FOR ACTION Q&A WITH RTAA’S DAVID BAINBRIDGE AND JULIE TASSONE
AUSRAIL FORUM FOCUSES ON WOMEN IN RAIL
BOMBARDIER’S ANNE KOOPMANN WINS MAJOR INDUSTRY GONG
PUBLIC TRANSPORT NEEDS TO BE SAFER FOR WOMEN
WOMEN
IN RAIL TIME FOR ACTION See centre pages
RAIL EXPRESS | ISSUE 1 2017
3
FROM THE EDITOR
POLLIES INSULT VOTER INTELLIGENCE WITH INFRASTRUCTURE BICKERING oliticians on both sides of the house continue to show disregard for Infrastructure Australia advice when it doesn’t suit them. But have they considered a significant portion of swing voters may be happy to trust the independent body? Infrastructure is not a sector for the impatient. Hospitals, railways, roads, airports — these are all long-term developments. They remedy long-term needs; they take years to build; they often take decades to pay off. If there’s a portfolio of government spending that should, ideally, transcend the political cycle, it’s infrastructure. But what we have in Australia is the precise opposite of that. In 2014, Victorian premier Daniel Andrews was elected in what his party called a ‘referendum’ to cancel the East West Link toll road project, which was hurriedly awarded to a private consortium by the outgoing Liberal Government, just weeks before the election. Andrews cancelled the road, in a saga which wasted hundreds of millions in taxpayer funding. The 2016 Australian Capital Territory election saw one party promising to build the Canberra Light Rail narrowly defeat another party promising to scrap it. Earlier this year, West Australians elected a Labor leader promising to tear up contracts for the Perth Freight Link toll road, a promise he has since followed through with. And in June, in Queensland, the Palaszczuk Government announced it was tired of waiting for money from Malcolm Turnbull, and will fully-fund its Cross River Rail project. You can only assume the CRR Delivery Authority will soon begin looking for bidders for the $5.4 billion contract. So now may be a slightly awkward time to mention that the Queensland Liberal Nationals, who aren’t too crash hot on Cross River Rail, are paying around $2 at the bookies to kick Labor out at the next state election, which must take place between now and May 5, 2018. To summarise: the most recent elections in Victoria, the ACT, and WA, saw a major infrastructure project, already awarded to a private consortium, facing the threat of cancellation by the challenging party. In two of those three cases, contracts were indeed cancelled, an embarrassing and harmful series of events for Australian projects in the eyes of the private sector multinationals who deliver them. Now in Queensland, we could be hurtling head-long into Episode III: Revenge of the Liberals. What is there to save us from this damaging trend? In this case, our caped crusader is supposed to be Infrastructure Australia, the independent body tasked with considering business cases for projects all around the country, putting them through rigorous cost-benefit analyses, among other tests. Projects whose business cases are approved by IA’s board are granted High Priority Project, or Priority Project status. Politicians around the
Published by:
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ISSUE 1 2017 | RAIL EXPRESS
Oliver Probert
EDITOR – RAIL EXPRESS
Level 14, 309 Kent St, Sydney NSW 2000 Australia Tel: (02) 9994 8086
www.mohimedia.com nation are directed to prioritise (it’s right there in the title) projects that are on those two lists. More importantly, politicians are supposed to hold off on making major funding decisions on projects that are yet to qualify for either of these lists. Two past iterations of Cross River Rail were described as “ready to proceed” by IA, in 2012 and 2013. But the Cross River Rail concept has been through so many changes – including a slightly wacky Bus and Train (BaT) tunnel concept, proposed by the Newman Government in 2013 – that IA is still processing the latest iteration of Cross River Rail. As such, the current edition of Cross River Rail is still just listed as a High Priority Initiative, with a potential promotion to be decided on by IA in the next six months. Prime Minister Malcolm Turnbull has repeatedly said his Government will work to fund, or facilitate funding for a project once it reaches High Priority Project, or Priority Project status. To his credit, many of the 18 projects currently on the priority lists are receiving support from the Commonwealth. Shadow transport minister Anthony Albanese, who often takes credit for fostering the independence of IA, frequently uses its lists to back up his support for projects like Melbourne Metro Tunnel, Inland Rail, the Western Sydney Airport, the Murray Basin Rail Project, and the AdelaideTarcoola Rail Upgrade. It doesn’t suit politicians like Albanese, however, to consider that the Perth Freight Link, a road project he campaigned strongly against, was listed by IA as High Priority Project when it was cancelled by the new WA Government. The issue here is not as simple as good or bad infrastructure projects getting funding, or not getting funding. The issue is the total disregard many politicians seem to have for IA, when IA’s list doesn’t back up whatever they think will win them an election. Whether it’s a road project, a rail project, or another piece of major infrastructure, if you take IA’s advice on one, you must take their advice on them all. This doesn’t have to come at the cost of elections. In fact, with a little change in rhetoric, voters may be ready to elect politicians who are committed to following independent advice, over those who discriminate against worthy projects that don’t fit their political agenda.
Publisher Michael Mohi Tel: +61 (2) 9994 8086 Email: Michael.Mohi@mohimedia.com
Editor Oliver Probert Tel: +61 (0) 406 111 902 Email: Oliver.Probert@mohimedia.com
Head of Marketing Daniel Macias Tel: +61 (0) 427 270 774 Email: Daniel.Macias@mohimedia.com
Head of Sales Patrick Roberts Tel: +61 (0) 450 928 798 Email: Patrick.Roberts@mohimedia.com
Sales Executive Margaret Shannon Tel: +61 (2) 9994 8086
Production Manager Ronda McCallum Tel: +61 (0) 411 045 046 Email: Ronda.McCallum@mohimedia.com
Design and Layout Jo Fuller Designs Tel: +61 (0) 414 289 699 Email: jodesign@bigpond.net.au
www.RailExpress.com.au The Publisher reserves the right to alter or omit any article or advertisement submitted and requires indemnity from the advertisers and contributors against damages or liabilities that may arise from material published. © Copyright 2017 – No part of this publication may be reproduced, stored in a retrieval system or transmitted in any means electronic, mechanical, photocopying, recording or otherwise without the permission of the publisher. Printed by: Spotpress
FROM THE EDITOR (Left to Right) ABHR editor Charles Macdonald; Rail Express editor Oliver Probert; Mohi Media principal Mohi Media; Bulk Handling Equipment & Services Guide editor Ronda McCallum; ABHR and national sales manager Patrick Roberts; Informa Australia publishing director Peter Attwater; and ABHR sales executive Margaret Shannon. Not pictured: Rail Express national sales manager Daniel Macias.
NEW OWNER FOR RAIL EXPRESS RAIL EXPRESS, THE LEADING INDUSTRY TITLE IN AUSTRALIAN RAIL, HAS A NEW OWNER: MOHI MEDIA.
nnouncing the sale, Informa publishing director Peter Attwater said the company had decided to concentrate on other core areas of its business as opposed to trade publishing. “It has been a great pleasure to have Rail Express in our stable, and I am delighted that the magazine and staff have found a new home with Mohi Media,” he said. “I am sure it will continue to produce its high standard of content and I wish the whole team all the best,” he added. Mohi Media is a local, specialist publishing company. The business’ principal, Michael Mohi, is an experienced media executive with an extensive background in television, publishing and printing. Michael has a long association with Rail Express. As senior executive for printing company Spotpress, he has handled the magazine’s printing and production for the past seven years. For the last six months, Michael worked closely with the Rail Express team and Informa management during the magazine’s transition of ownership. “I’ve been close to Rail Express for many years,” Michael explained. “I’m very confident that the publication will grow over the next few years and I am currently developing new ideas with the team to build upon what is a very well established and important industry product.” Michael, a Kiwi, has 45 years’ media experience. He worked as a radio and television journalist and current affairs producer with the New Zealand Broadcasting Corporation and Television New Zealand. Crossing the Tasman, Michael joined TCN Nine as a director and amongst other duties was responsible for the network’s promotion of World Series Cricket. In the 1980s he formed his own publishing business, successfully launching a raft of national magazines in Australia. He launched Countdown magazine with the ABC, the title becoming Australia’s biggest circulating youth music lifestyle magazine with a circulation of over 100,000 copies. Mohi Media has also acquired Rail Express sister publication Australian Bulk Handling Review, also from Informa.
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RAIL EXPRESS | ISSUE 1 2017
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ARA
AUSTRALASIAN RAILWAY ASSOCIATION
The 2017-18 Budget will be remembered as a very significant milestone in years to come for the freight and passenger rail industries in Australia.
BROAD PRAISES ‘SIGNIFICANT’ FEDERAL BUDGET THE 2017-18 BUDGET WILL BE REMEMBERED AS A VERY SIGNIFICANT MILESTONE IN YEARS TO COME FOR THE FREIGHT AND PASSENGER RAIL INDUSTRIES IN AUSTRALIA – WITH A $20 BILLION INVESTMENT INTO THE RAIL SECTOR BY THE COMMONWEALTH, AUSTRALASIAN RAILWAY ASSOCIATION CHIEF EXECUTIVE DANNY BROAD WRITES.
s the Treasurer, the Hon Scott Morrison MP, delivered his Federal Budget speech on the evening of 9 May his first commitment within the infrastructure portfolio was a guarantee to rail. The Treasurer pledged $8.4 billion to the Inland Rail project in the form of equity investment in the Australian Rail Track Corporation and a public private partnership for the Toowoomba to Kagaru tunnel section. Under this delivery arrangement, it is proposed that the private sector will design, build, finance and maintain this section of Inland Rail over a long-term concession period. The ARA, together with the rail industry has been strongly advocating for a significant funding commitment to the Inland Rail project over several years. To see this come to fruition is a significant win for Australia’s freight industry and the national freight supply chain network.
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50 percent of the funding for the development of up to three businesses cases. The completed business cases will be considered by the Government in 2018 and future years. Furthermore, the Federal Government announced investment of: • $17 million over four years towards the establishment of the Infrastructure and Projects Financing Agency, which will be absorbed into the Department of Prime Minister and cabinet. The Agency will provide advice to Government on potential private sector financing models for future infrastructure projects • $23.5 million over four years to support the delivery of the National Cities Agenda, an initiative I am involved in as a member of the Cities Reference Group.
“
TO SEE THIS COME TO FRUITION IS A SIGNIFICANT WIN FOR AUSTRALIA’S FREIGHT INDUSTRY ...
Danny Broad, Chief Executive Officer, Australasian Railway Association
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As part of further budget commitments, the Commonwealth has pledged their support behind a $10 billion over ten year investment towards the National Rail Program. The program aims to deliver on critical passenger and freight rail projects throughout Australia. $600 million towards this program has already been allocated in the 2017-18 Budget, with further spending to be provided in the forward estimates. The Commonwealth has also committed $20 million to support the development of up to three formal business cases for faster rail connections between the major cities and regional centres. The Federal Government has indicated that they will provide up to 6
ISSUE 1 2017 | RAIL EXPRESS
NEW SOUTH WALES
• $20 million has been provided towards the Port Botany Rail Line Upgrade in 2017-18, which is part of a broader $75 million package of works • Through the Asset Recycling Scheme, Parramatta Light Rail has been allocated $78.3 million; Sydney’s Rail Future has been allocated $98.4 million and Sydney Metro $1.7 billion. QUEENSLAND
• $95 million has been provided towards the Gold Cast Light Rail between 2013-14 to 2020-21 that will provide track extensions, new stations and a new heavy rail/light rail interchange • $147 million has been allocated towards the Townsville Eastern Access Rail Corridor between 2013-14 to 2020-21 to provide a link from the North Coast rail line to the Port of Townsville. WESTERN AUSTRALIA
• $792 million towards the Perth Metronet. SOUTH AUSTRALIA
• $42.8 million has been provided towards the extension of Flinders Link. The Budget also confirmed Commonwealth funding towards a number of State and Territory projects, they are as follows: VICTORIA
• $500 million towards the upgrade to the regional rail networks in Victoria • $55 million this year for the St Albans grade separation • $30 million towards a business case for the Melbourne Airport Link • $38 million has been provided towards the Melbourne Port Rail Shuttle from 2013-14 to 2020-21, including $5 million in 2017-18 • $20.2 million towards the Murray Basin.
TASMANIA
• $59.8 million committed from 2013-14 to 2020-21 towards the Tasmanian Freight Rail Revitalisation project. AUSTRALIAN CAPITAL TERRITORY
• Through the Asset Recycling Scheme, Capital Metro has been allocated $67.1 million.
The ARA looks forward to working with industry, state and federal governments to ensure the success of the National Rail Program and that rail more broadly continues to be the transport backbone for our nation.
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NATIONAL
Image © istockphoto
ROAD PRICING REFORMS OPENED TO COMMENT A LEVEL PLAYING FIELD FOR ROAD AND RAIL OPERATORS COULD BE CLOSER TO REALITY, THANKS TO THE RELEASE OF A DISCUSSION PAPER INTO THE ESTABLISHMENT OF INDEPENDENT PRICE REGULATION FOR HEAVY ROAD VEHICLE CHARGES BY THE DEPARTMENT OF INFRASTRUCTURE AND REGIONAL DEVELOPMENT.
rban infrastructure minister Paul Fletcher announced public consultation was underway on independent price regulation for heavy vehicle charges, following the release of a Land Transport Market Reform discussion paper by the Department on May 25. Road pricing reform has long been a goal of the rail industry. The 2015 Harper competition policy review described roads as “the least reformed of all infrastructure sectors”. The Australian Logistics Council has repeatedly called for a single national economic regulator for land transport to make road and rail pricing decisions in a consistent manner. Australasian Railway Association boss Danny Broad called for road pricing reform before this year’s Budget, citing the illogical advantage enjoyed by “heavy vehicles along major interstate routes which compete with rail”. Heavy vehicle users are currently charged for access to public roads via federally-managed, fuel-based road user charges, and through state-managed vehicle registration fees. The Australian Trucking Association argues the existing rules see truck operators over-
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charged for their road use, but the rail sector contends the current scheme gives roads an unfair advantage over rail on long-haul journeys. Rail, the industry argues, is the safer, more efficient, and more environmentally friendly choice in many cases, but is unable to compete with road operators in dollar terms, due to access charges applied by railway owners, that simply do not compare to fuelbased road charges. The discussion paper says future charges should be set by an independent regulator, and based on forward-looking cost base estimates aimed at more closely tying together the amount heavy vehicle users are charged, and how much it will cost to maintain the roads they use. The three candidates proposed to act as independent regulator are the Australian Competition and Consumer Commission, the National Transport Commission, or stateand territory-based economic regulators. Either way, Fletcher said in May, the paper is a big forward step for road reform. “Independent price regulation of heavy vehicle charges would enable a regulator to determine road user charges for heavy vehicle operators
The rail industry has called for road pricing reforms for some time. at arm’s length from government,” the minister’s office said. “Charges would be designed to more directly and effectively link user charges to government expenditure on roads.” ALC boss Michael Kilgariff immediately welcomed the discussion paper, saying the move towards independent road pricing was a positive one for supply chain efficiency “against the backdrop of an increasing national freight task”. “Australia’s freight logistics industry and the wider economy rely heavily on an efficient road network,” he said. “Independent price regulation will help to achieve this by more directly linking road use charges with government investment in the road network.”
NEW PN BOSS SETS UP OLD MINING RIVALRY FORMER BHP BILLITON COAL BOSS DEAN DALLA VALLE HAS REPLACED DAVID IRWIN AS CHIEF EXECUTIVE OFFICER OF PACIFIC NATIONAL.
alla Valle left BHP Billiton in March, after 40 years at the mining giant. He served most recently as its chief commercial officer, responsible for the marketing and distribution of commodities, and was the president of its international coal business prior to that. The Pacific National appointment sets Dalla Valle up to go head-to-head with Andrew Harding, the chief executive of Pacific National’s major competitor, Aurizon. Harding took over at Aurizon in December 2016, after a 24-year career at Rio Tinto, BHP Billiton’s biggest Australian rival. Pacific National executive chairman Russell Smith said Dalla Valle had been chosen for his background in managing large, capital intensive businesses, and for his supply chain management experience. “As CEO, Dean will be extremely well placed to lead Pacific National as we continue to deliver on the company’s plans to strengthen and
grow the business, leveraging the expected expansion in the national freight task over coming years,” Smith said. The announcement also confirmed earlier reports of David Irwin’s departure, after roughly eight years in the chief executive role. Irwin
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ISSUE 1 2017 | RAIL EXPRESS
Aurizon and Pacific National are now both led by former mining bosses. Photo: Rail Gallery
will stay on in an advisory role, with Dalla Valle set to join the business on July 17. “The company is stronger for [Irwin’s] leadership and I know we will continue to benefit from his deep knowledge of the freight and logistics sector in the future,” Smith said. The Australian Logistics Council welcomed Dalla Valle’s appointment. “At a time of considerable change in the Australian freight logistics industry, Dean Dalla Valle’s experience and insights will be a welcome addition to the policy debate,” the ALC said in a statement. Irwin, who is an ALC director, began his tenure as Pacific National boss while it was still part of ASX-listed Asciano. Asciano, which also included the Patrick container port business, was broken up and sold off in a major takeover move in 2016, effectively de-listing the Pacific National business. Pacific National is now owned 32% by the Canada Pension Plan Investment Board, 27% by Global Infrastructure Partners (of which Smith is an Australian partner), 16% by China’s CIC Capital, and 12% each by GIC and British Columbia Investment Management Corporation.
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ISSUE 1 2017 | RAIL EXPRESS
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NEWS
INLAND RAIL PROGRESSES DESPITE CRITICS DEPARTMENT OF INFRASTRUCTURE AND REGIONAL DEVELOPMENT SECRETARY MARK MRDAK HAS FACED A BARRAGE OF QUESTIONS OVER THE VIABILITY OF THE INLAND RAIL PROJECT, AFTER THE PROJECT RECEIVED A MAJOR BUDGET BOOST.
PROCESS TO REFINE THE ROUTE
he Inland Rail project, between Brisbane and Melbourne via regional Queensland, NSW and Victoria, is being delivered by the Commonwealth Government through an $8.4 billion equity investment in the Australian Rail Track Commission, announced in the May 9 Federal Budget. Mrdak, whose department will oversee the spending, fronted up to a post-Budget Senate estimates hearing where he and other representatives were questioned over the alignment, cost, and other details surrounding the massive project. He was forced to concede that while the project is estimated at $10 billion, and has secured the Government’s $8.4 billion equity investment, the overall cost of the project is yet to be determined. Questioned over the commercial viability of the rail line by Labor senator Malarndirri McCarthy, who represents the Northern Territory, Mrdak also confirmed the assertion that the rail line was not a viable investment for a private sector developer. “It is clear that the project would not meet commercial rates of return,” Mrdak said, “and such a large railtrack investment can only meet the ARTC rates of return, which are lower than commercial rates of return.” Inland Rail is forecast to achieve a rate of return of between 5% and 5.5% from the start of operations in FY25. Mrdak estimates the private sector would not invest in a greenfield project like Inland Rail for anything less than an 11% rate of return. “In the absence of the ARTC, it is very difficult to see that anyone would be investing in an interstate rail network,” he said. “Only government has the resources and, effectively, the patient equity to invest in long-term assets like this. The private sector, as we have seen globally, finds it hard to generate the rates of return on rail track for purely private sector investment.” The estimates committee also questioned Inland Rail’s position on Infrastructure Australia’s Infrastructure Priority List, where it appears as one of 11 ‘priority’ projects, below the 7 ‘high priority’ projects.
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Image courtesy of RailGallery
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t FROM PAGE 11 – INLAND RAIL
“So it is in the second tranche,” remarked Senator Glenn Sterle, who represents Western Australia. “It is coming off the bench,” quipped Senator Chris Back, also from WA. “When you are playing footy, you don’t want to hear that,” Sterle added. Determined to justify the project, ARTC chief executive John Fullerton explained to the panel that Inland Rail would provide efficiencies from day one, and would allow for future growth to be catered for with longer trains.
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I THINK THE MOST IMPORTANT THING … IS THAT THE PROJECT IS CASH FLOW POSITIVE FROM DAY ONE IN TERMS OF THE REVENUE EARNED AND THE COST INCURRED TO MAINTAIN THE NETWORK.
“I think the most important thing…” Fullerton said, “is that the project is cash flow positive from day one in terms of the revenue earned and the cost incurred to maintain the network. “ARTC will take benefit from Inland Rail from the point of view of the additional freight that will operate on that new rail track, as well as the additional freight that will flow between Brisbane and Perth and between Brisbane and Adelaide because of the improved service linkages between those capital cities and also the fact that you can run trains similar to what runs to Perth today – double-stacked long trains.
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“So, from day one, it is cash flow positive to us. We earn that revenue through access charges that we charge the rail operators who use our corridor.” The tough questioning over Inland Rail came days after Port of Brisbane chief executive Roy Cummins was quoted in the AFR pushing for the addition of a new freight line to the port, from the planned terminus of Inland Rail at Acacia Ridge. Without a dedicated line, goods on doublestacked trains will need to be unloaded at
ISSUE 1 2017 | RAIL EXPRESS
John Fullerton
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Acacia Ridge, and reloaded to complete their journey to the Port of Brisbane via trucks or the electrified passenger network, which doesn’t allow double stacking. The dedicated line would add an estimated extra cost of $2.5 billion to the Inland Rail plan. “Inland Rail proposes the movement of double-stacked containers, as well as increased volumes of resources and agriculture products. If that is the objective, then a dedicated connection to the Port of Brisbane is imperative,” Cummins was quoted as saying. Cummins reportedly believes construction of this 38-kilometre “missing link” should go to market as a PPP contract.
“We are willing to work with all stakeholders and all levels of government to get it done. Inland Rail without a port connection will be less appealing to any PPP case, but with a PPP it would be a more attractive proposition to market.” Australian Logistics Council boss Michael Kilgariff echoed Cummins’ statements at a conference in Brisbane after the Budget, saying work should begin immediately to preserve a corridor for a future Acacia Ridge-Port of Brisbane connection. “It is estimated that the existing rail link to the Port of Brisbane can meet demand for the next decade, however we must start to plan beyond that now,” Kilgariff said. “It is very important that when we construct Inland Rail, key future freight corridors are protected and preserved, so that our freight infrastructure will be able to accommodate demand levels that will exist decades from now.” Chester backs plan despite critics
Infrastructure minister Darren Chester reinforced the government’s Inland Rail plan, despite a private sector group suggesting the project could blow out by up to $6 billion above forecast costs. National Trunk Rail director Jon Grayson told Fairfax after the Budget that the government’s plan – which has approval from Infrastructure Australia – could cost as much as $16 billion, despite the current business case forecasting a cost of between $9.9 billion and $10.7 billion. CONTINUES PAGE 14 u
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Brisbane
2017
21– 23 No v emb er
RAIL’S DIGITAL REVOLUTION
SPEAKERS INCLUDE:
Sir Terry Morgan CBE, Chairman, Crossrail UK
Nick Easy, CEO, Queensland Rail
Howard Collins OBE, Chief Executive, Sydney Trains
Danny Broad, CEO, Australasian Railway Association
Michael Bailey, General Manager Railroad Operations, BHP
Neil Scales OBE, Director-General, Department of Transport and Main Roads
Roy Cummins, CEO, Port of Brisbane
Emma Thomas, Director General, Transport Canberra
Stephen Troughton, Deputy Secretary Infrastructure and Services, Transport for NSW
Bob Herbert AM, Chair, Australasian Railway Association
John Fullerton, CEO, Australian Rail Track Corporation
Michael Miller, CEO, Downer Rail
Nicole Stoddart, Managing Director, Construction Services, ANZ, AECOM
Damien White, CEO, TasRail
René Lalande, CEO, Transdev
Andrew Dudgeon, Managing Director, Bombardier
Loretta Lynch, Managing Director, Keolis Downer Gold Coast
Paul Gill, Managing Director Signalling, Alstom Transport > > And many more
Alan Beacham, Executive General Manager Rail & Defence, UGL
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The reference intermodal train travelling on Inland Rail will be 1800m long, have a 21 tonne axle load, and will be able to travel at up to 115km/h. Graphic: ARTC
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THIS PROJECT HAS BEEN THROUGH AN EXHAUSTIVE PROCESS. IT’S BEEN TALKED ABOUT FOR DECADES, IT’S HAD THE TICK OF APPROVAL BY INFRASTRUCTURE AUSTRALIA, IT HAS A POSITIVE COST-BENEFIT RATIO. IT’S THE TYPE OF PROJECT THAT WILL MAKE A DIFFERENCE IN PEOPLE’S LIVES.
Calvert to Kagaru section progressed Queensland state development minister Anthony Lynham said the Calvert to Kagaru section of the Inland Rail project could create as many as 1600 jobs during construction, after the section was declared a coordinated project by the state’s coordinator-general. The third Queensland stage of the Melbourne to Brisbane project was declared by the coordinator general on June 16. Lynham said the $1.2 billion section covering 53 kilometres from Calvert to Kagaru would now require an environmental impact statement to be prepared.
The Inland Rail project has an estimated cost of $10 billion. Photo: Rail Gallery
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Darren Chester
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“This section could create up to 1600 jobs during its four-year construction phase starting in 2020 and 700 jobs during operation for the entire program,” Lynham said. The Calvert to Kagaru section consists of a new single-track dual-gauge line, including approximately 1.1 kilometres of tunnels through the Teviot Range at Woolooman. Lynham noted the stage was one of five Inland Rail stages in Queensland, and one of 13 across the whole route. “This project could be a real boon to Queensland industry, for both growers and manufacturers,” he said. “However, this section will require rigorous planning and engineering to address the potential impacts on the rural community and small farms including minimising flooding impacts on properties along the alignment.” Federal infrastructure minister Darren Chester said the announcement was an important step in seeing the Inland Rail built. “Over the next few weeks there will be information on the environmental impact assessment process and opportunities for the community to have their say on the Calvert to Kagaru project,” the minister outlined. “Calvert to Kagaru is the third section of Inland Rail in Queensland to be declared a coordinated project, following earlier declarations for the Gowrie to Helidon and Helidon to Calvert sections. “Around 60 per cent of [Inland Rail] construction expenditure is expected in Queensland, while economic modelling forecasts that Inland Rail will boost Queensland’s Gross State Product by $7.3 billion.”
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Image courtesy of RailGallery
The Turnbull Government aims to deliver Inland Rail – an inland connection between Brisbane and Melbourne – via an $8.4 million equity investment into the Australian Rail Track Corporation, as well as a PPP for the most complex section of new track – a tunnel through the Toowoomba Range. The 1700-kilometre Inland Rail route would only need new track to be built along 40% of its length, with the rest of the route created by upgrading existing track. Grayson reportedly believes this method could result in a major blowout in costs, pushing it well above the $12 billion to $13 billion price tag NTR has placed on its alternative plan. NTR wants to build an all-new, 1595-kilometre rail line between the two major cities, which would rely on no existing infrastructure and – NTR says – would deliver a better end-product. “We don’t believe [the Government’s proposal] can be built for $10.7 billion,” Grayson was quoted in the AFR on May 12. “We think it will be significantly more than that.” Grayson reportedly believes the plan to upgrade vast amounts of existing track presents significant construction risks, while a 100%-new rail plan would create a shorter, flatter, more reliable piece of infrastructure. Nonetheless, the Turnbull Government appears to be committed to its existing plan, with Minister Chester visiting regional NSW on May 12 to promote Inland Rail to the local community. “This project has been through an exhaustive process. It’s been talked about for decades, it’s had the tick of approval by Infrastructure Australia, it has a positive costbenefit ratio. It’s the type of project that will make a difference in people’s lives,” Chester told the media gathering. “It is a long-term investment that our kids and our grandkids will thank us for. “Admittedly, it takes several decades to maximise the benefits but governments have to think long term.”
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The Turnbull Government’s Budget looked to tackle a pressing need for new projects around the country, despite a major lack of free money. Photo: Rail Gallery
BUDGET: TURNBULL SAYS INFRASTRUCTURE FINANCING UNIT WILL LEAD TO MORE PROJECTS MALCOLM TURNBULL SAYS HIS NEW INFRASTRUCTURE FINANCING UNIT WILL HELP DELIVER MORE DEVELOPMENTS IN TIGHTER FINANCIAL TIMES, WHICH HE BLAMES ON IRRATIONAL OVERSPENDING BY LABOR GOVERNMENTS.
n an opinion piece that took several shots at the Opposition’s infrastructure approach, the prime minister said the unit, announced in this year’s Budget, would help solve Australia’s infrastructure challenge, through both government grants, and private co-financing. “It is clear our infrastructure needs have never been greater, but our fiscal circumstances have never been tighter,” Turnbull wrote in the AFR ahead of a COAG meeting in Hobart. “The AAA credit rating is under threat following years of Labor first piling unsustainable spending onto the budget and then blocking Coalition attempts to rein it in. Our approach to managing this challenge is simple: reduce spending that is no longer fit for purpose so we can get back into surplus and create space for new spending that boosts our productivity and competitiveness.” The Coalition is committed to working with state and local governments on the projects identified on Infrastructure Australia’s Priority List, he said, but not all those projects can receive government funding. “It’s time for a smarter approach to infrastructure investment,” the PM wrote. “Of course, there are projects where grant funding is the most appropriate funding mechanism. But where there is a project that generates a return for the taxpayer and for private investors, then we want to be a partner in that as well.” Turnbull said the Commonwealth has committed to 15 out of 18 projects on the IA Priority List (split between High Priority and Priority projects), and criticised Labor for cancelling contracts for the Perth Freight Link
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and Melbourne’s East West Link, “costing taxpayers billions and delaying vital transport for these growing cities for years”. Industry not convinced
The Infrastructure Financing Unit proposal has faced heavy criticism. “Prime Minister Malcolm Turnbull continues to fail to match his rhetoric on infrastructure with actual investment in railways, roads and ports,” shadow infrastructure minister Anthony Albanese said earlier this year.
Turnbull says his $10 billion national rail fund will help deliver urban rail projects. Photo: Malcolm Turnbull / Facebook
“There is a contradiction in the Government’s position on this fund. On one hand, it wants financing to be available where private financing is not. But on the other hand, it claims this unit would work on projects that would be taken off Budget as they would produce a return for government.” Industry group Infrastructure Partnerships Australia has also dismissed Turnbull’s proposal, saying there is no shortage of private finance for projects that are appealing to the private sector. “Beyond Western Sydney Airport and Inland Rail, Federal Government ‘equity’ and Federal Government project ‘loans’ can’t help, because they can never be repaid,” IPA boss Brendan Lyon said after the Budget announcement. “Everyone from the Productivity Commission to Infrastructure Australia have found that public infrastructure like passenger railways, highways and most motorways need government budget grants or subsidies, because they cost more than they earn. “If infrastructure projects were commercially feasible without government funding, they would already have been done by increasingly desperate state governments. The Federal Government has a hard job to balance its books and fix flagging productivity, but we need to be transparent about the problems and the solutions because Australia is fresh out of easy answers.” Debate heats up
Meanwhile, urban infrastructure minister Paul Fletcher defended the Turnbull Government’s infrastructure program,
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amid claims the 2017 Budget cuts real infrastructure funding by $7.4 billion. Analysis from Infrastructure Partnerships Australia suggests the latest Budget cuts real infrastructure spending over the forward estimates by $7.4 billion compared to the 10-year average, dropping Commonwealth funding to its lowest level since the early 2000s. “Real funding matters because state governments and companies cannot build projects or employ a workforce for projects beyond the budget’s forward estimates, which are several Federal elections in the future,” Brendan Lyon said. “The Commonwealth must commit to a long-term and predictable budget funding stream at the decade average of circa $6 billion per year and use that money to fund the more-than 100 national priority projects sitting idle on Infrastructure Australia’s list.” Lyon recognised the direction to State Governments to provide the Commonwealth with detailed business cases, but said the Federal Government needed to provide “a long-term, stable and real funding stream” to boost confidence. Anthony Albanese latched onto the IPA analysis, asking for an explanation from the Government. “[IPA] have said the Budget cuts real budgeted capital funding to its lowest level in more than a decade, using a mix of underspend, reprofiling and narrative to cover this substantial drop in real capital expenditure,” he suggested. Minister Fletcher rejected the analysis, saying it was flawed to ignore the equity investments the Government was making in Inland Rail and the Western Sydney Airport. “Misleading claims made by Mr Albanese and others focus on one component of the infrastructure spend, Payments to Support State Infrastructure Services,” he said. “This is part of, but not the same thing as total infrastructure spending. The numbers are clear – under this budget, the Coalition is investing on average $2.1 billion more per year than Labor.” Fletcher said a $5.3 billion equity commitment for a Government Business Enterprise
to build and operate the Western Sydney Airport, and an $8.4 billion equity commitment to the ARTC for Inland Rail, end “decades of indecision”. “Our commitment of equity to these two projects reflects a clear and deliberate shift in the way the Turnbull Government is funding and financing major, nation-building pieces of infrastructure, with a greater use of equity and loans.” Albo on warpath
Anthony Albanese criticised the Turnbull Government for continuing an ‘all talk, no action’ approach to infrastructure in the Budget.
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“There was no funding for Brisbane’s Cross River Rail, Adelaide’s AdeLINK, the Western Sydney Rail project or the Melbourne Metro.” The third Budget paper shows a $200 million commitment to the National Rail Program in FY20, and a $400 million commitment in FY21, with no further projections offered. A $760 million commitment was also made to the first stages of Metronet in Perth, but this was re-allocated from monies originally set aside for the Perth Freight Link toll road project. “A financing facility is not how important urban rail projects will become reality,” Albanese argued. “The new facility sounds a lot like the Coalition’s failed Northern Australia
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YOU CAN’T RIDE TO WORK ON A TRICKY LINE IN A SPEECH.
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Anthony Albanese has criticised the Government for inaction. Photo: Anthony Albanese / Facebook
In the 48 hours after Federal Treasurer Scott Morrison made the Budget announcement, Albanese criticised it for ignoring South Australia, for cutting overall infrastructure spending in FY18, and for being an empty promise to the rail industry. The former infrastructure minister sought to draw attention to the fact that despite promising $10 billion for a National Rail Program, no money has been set aside for this fund until FY20. “Budget 2017 failed to allocate a dollar of new investment for public transport,” Albanese said.
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Infrastructure Facility, which it created two years ago amid fanfare, but which has not funded a single project.” He accused the treasurer of using “tricky” lines to conceal a lack of real action on urban public transport. “You can’t ride to work on a tricky line in a speech,” he said. “Australians need actual investment in actual train lines to address traffic congestion, which Infrastructure Australia has warned will cost the nation $53 billion a year in lost productivity by 2031 without investment now.”
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RAIL EXPRESS | ISSUE 1 2017
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RIO SHAREHOLDERS VOTE FOR YANCOAL HUNTER TAKEOVER RIO TINTO SHAREHOLDERS HAVE APPROVED A TAKEOVER OF THE MINING GIANT’S HUNTER VALLEY COAL BUSINESS TO CHINESE-BACKED MINER YANCOAL, AFTER A COMPETITIVE BIDDING PROCESS WITH COMMODITIES GIANT GLENCORE.
ancoal will buy Rio’s Hunter coal assets – incorporated as Coal & Allied – including the Warkworth and Mount Thorley thermal and semi-soft coking coal mines, and a share in the Port Waratah
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Coal Terminal at the Port of Newcastle, for US$2.69 billion (A$3.5 billion). 97.2% of the shares represented in the voting process voted in favour of the sale, while 2.8% of the voting shares were against
The sale of Coal & Allied to Yancoal includes the Mount Thorley Warkworth operation, which includes two open cut mines in the Hunter Valley, which together export 12 million tonnes of semi-soft coking coal and thermal coal per annum. Photo: Rio Tinto
the move. Shareholders owning around 45 million shares – roughly 4% – of Rio’s ownership abstained from the vote. The result followed a fortnight of frantic negotiations between Rio Tinto, Yancoal, and second bidder Glencore. This sale of Coal & Allied to Yancoal was initially announced on January 24, for $1.95 billion, and $500 million of payments deferred over five years. But Glencore kicked off a bidding war on June 9, offering Rio $2.05 billion up-front, plus $500 million in deferred payments over five years. Yancoal then made a more appealing offer, saying it would pay all $2.45 billion of its initial offer up-front. Glencore responded by upping the bid to $2.675 billion up-front on June 23, along with a minimum of $175 million in additional payments. Yancoal then submitted a further proposal to acquire C&A for $2.45 billion up-front, along with $240 million in guaranteed, and unconditional royalty payments, of which $200 million will be received by the end of 2018. All bids throughout the process also included coal price-linked royalties. The final, successful bid by Yancoal offered a royalty capped at $410 million. “The board has now considered the latest offers received from Glencore and Yancoal in recent days and is recommending Yancoal’s improved offer to shareholders based on greater transaction certainty and a higher net present value,” Rio chairman Jan du Plessis told shareholders ahead of the vote.
TFNSW OPENS GRADUATE PROGRAM TRANSPORT FOR NSW HAS OPENED APPLICATIONS FOR ITS 2018 GRADUATE PROGRAM.
he state transport department said its two-year development program aims to build future transport leaders, with participants given access to diverse projects and career development opportunities that allow them to play a key role in making NSW a better place to live, work and visit. “In one year I have successfully delivered numerous projects and been mentored by senior leaders,” business graduate Gabby Puskas said.
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Puskas has been a part of the graduate program for 12 months. “The opportunities at Transport are endless and I look forward to seeing what the next 12 months have in store. The most rewarding thing about working at Transport is being able to work on projects that help improve the lives of millions of people every day.” Graduate programs are available in relation to projects like Sydney Metro, Sydney Light Rail and WestConnex, along with other organisa tional roles.
Graduate programs are available in relation to projects like Sydney Metro, Sydney Light Rail and WestConnex.
Next print edition: August 2017
RAIL EXPRESS
Hundreds of millions of tonnes of bulk and other freight is moved by rail in Australia and New Zealand every year. It is no surprise, then, that some of the great cutting-edge ideas, designs and operations come from the region. The Bulk & Freight feature, which will be included in the second issue of Rail Express in 2017, will cover the latest trends in bulk and freight rail, from operators, engineers, academics and more.
Photo: Rail Gallery 18
To discuss what marketing opportunities are available for your business, please contact Daniel Macias on 0427 270 774 or daniel.macias@mohimedia.com
ISSUE 1 2017 | RAIL EXPRESS
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The Hunter Valley Access Undertaking regulates the Australian Rail Track Corporation’s operation of the rail network linking mines in the Hunter Valley to the Port of Newcastle, and is administered by the ACCC. Photo: Rail Gallery
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ARTC, COMPETITION WATCHDOG REACH TEMPORARY MIDDLE GROUND ON HUNTER RATES THE COMPETITION WATCHDOG HAS CONSENTED TO THE ARTC’S UPDATED HUNTER VALLEY ACCESS UNDERTAKING FIGURES, AFTER IT REJECTED THE NETWORK OPERATOR’S ORIGINAL PROPOSAL.
fter taking issue with the calculations for rate of return (RoR) and weighted average mine life (WAML) figures in the ARTC’s originally-proposed amendment to the 2011 HVAU, the ACCC accepted adjusted figures at the eleventh hour, late in June. However, the ACCC said the rushed terms – which replaced terms due to expire on June 30, 2017 – are not ideal, and it expects the ARTC to continue working towards an updated variation application with its stakeholders. The HVAU regulates the ARTC’s operation of the rail network that connects coal mines in the Hunter Valley to the Port of Newcastle. In this round of variations, the ARTC initially proposed an RoR of 6.51% (real pre-tax) and 7.86% (nominal pre-tax), with a WAML of 16.5 years.
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The ACCC countered with suggestions of an RoR of 4.60% (real pre-tax) and 7.11% (nominal pre-tax), with a WAML between 20 and 32 years.
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THIS VARIATION TO THE HUNTER VALLEY ACCESS UNDERTAKING PROVIDES REGULATORY CERTAINTY FOR ARTC AND ITS USERS ...
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The result is accepted terms of an RoR of 5.38% (real pre-tax) and 7.91% (nominal pre-tax), and a WAML of 23 years.
“This variation to the Hunter Valley Access Undertaking provides regulatory certainty for ARTC and its users, including coal producers as well as passenger trains and non-coal freight,” ACCC commissioner Cristina Cifuentes said. “Stakeholders were disappointed by the short timeframe and that the application did not address all the issues that had been identified as part of ARTC’s earlier application,” she continued. “However, given the expiry date of the current undertaking, stakeholders supported the variation as the best way to ensure stability in the regulatory framework. “The ACCC acknowledges and shares stakeholders’ concerns that this process illustrates significant issues with the current regulatory framework as it applies to the Hunter Valley rail network.”
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(left) Sydney Metro City & Southwest will include the second rail crossing of Sydney Harbour (after the Harbour Bridge), and the second tunnel crossing (after the Sydney Harbour Tunnel). (right) The new Sydney Metro City & Southwest contract will utilise five tunnel boring machines, including a specialised TBM for drilling under Sydney Harbour. Images: Transport for NSW
$2.8BN SYDNEY METRO TUNNEL CONTRACT AWARDED A CONSORTIUM OF JOHN HOLLAND, CPB CONTRACTORS AND GHELLA HAS WON THE NSW GOVERNMENT’S $2.81 BILLION TUNNELLING CONTRACT FOR THE SECOND STAGE OF THE SYDNEY METRO URBAN RAIL PROJECT.
he first of five tunnel boring machines (TBMs), to build the new twin metro rail tunnels under Sydney Harbour and the CBD, will be in the ground by the end of next year, Premier Gladys Berejiklian and transport minister Andrew Constance announced on June 22. Ahead of awarding the tunnelling contract, Transport for NSW took rock soil samples from more than 50 boreholes beneath Sydney Harbour, which determined a specialised TBM will be required to tunnel through a combination of sandstone, clay and sediments between North Sydney and the new metro station at Barangaroo. The other four TBMs required for the project are more standard, hard rock TBMs. “Today’s historic milestone unlocks a generational change to the way people will get around Sydney,” Berejiklian said. “The scale of this project and what it will do for the ease and speed of travelling across Sydney is hard to comprehend. We’ve done the hard yards and now it’s delivery time for the next stage of Sydney Metro.” With first trains expected to operate on the first stage of Sydney Metro by 2019, the
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second stage of the project will take the rail line under Sydney Harbour, through the CBD and on to Bankstown. “This new metro line will eventually stretch 66 kilometres and connect dozens of suburbs along the way,” Constance said. “When services through the City start in 2024, the tunnels will move more people than the Harbour Bridge and Sydney Harbour Tunnel combined.” The contract involves: • delivering four double-shield, hard rock, gripper type TBMs and one specialised TBM for tunnelling under Sydney Harbour; • building twin 15.5km metro rail tunnels from Chatswood to Sydenham; and, • the excavation and civil works for six new metro railway stations at Crows Nest, North Sydney, Barangaroo, Martin Place, Pitt Street and Waterloo. The Government expects the tunnelling contract work to be completed in 2021, at which point work will continue along the 30-kilometre length of the second stage to lay tracks, fit out stations and upgrade the existing rail line from Sydenham to Bankstown to metro rail.
Seven major contracts will make up the project, with Thursday’s tunnelling contract the first to be awarded. The Government says the massive scale of the project means the tunnelling contract value may vary, due to ongoing fine-tuning and optimisation involving the other six major Stage 2 contracts, for which tenders are yet to be received. The total project cost for Sydney Metro City & Southwest has been set between $11.5 billion and $12.5 billion, compared to the $8.3 billion price tag for stage one of the project, called Sydney Metro Northwest. John Holland’s chief executive officer Joe Barr said the joint venture was honoured to be selected to help “build a lasting legacy that will transform Sydney”. “This iconic project will build the first ever rail tunnels under Sydney Harbour – a crucial transport connection to meet the ever-growing needs of our global city,” he said. “This one-in-a-generation project will transform the rail network in Sydney, delivering a step-change in public transport capacity and customer experience, and it is a privilege to be trusted to build it.” Barr said the joint venture’s construction solution addresses the challenges of intricate underground construction in the heart of the Sydney CBD, where new stations will be built at Barangaroo and Pitt Street, and new metro platforms will be built beneath existing infrastructure at Martin Place and Central. The project also includes new stations north of the bridge, at Crows Nest and Victoria Cross. John Holland’s NSW/ACT executive general manager Scott Olsen said the tunnelling project continued a great relationship between the engineering firm and the NSW Government.
(left) The Sydney Metro Northwest skytrain is made up of more than 1,100 concrete spans. (right) The last concrete span was installed in June. Photos: Transport for NSW 20
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John Holland won the $1.15 billion tunnels and stations civil works contract for the first stage of Sydney Metro, as part of a joint venture with CPB and Dragados, and is also working with Hong Kong’s MTR Corporation, CPB and UGL Rail on the $3.7 billion Operations, Trains and Systems contract for Stage 1. “We bring vast local and international expertise in tunnelling and the delivery of major infrastructure in urban areas,” Olsen said. “We are focussed on delivering a worldclass project in partnership with Transport for NSW, with sustainable design, opportunities for local employment and a socially inclusive procurement strategy.” Construction is scheduled to commence on the new tunnelling contract in the coming weeks, John Holland said in a statement. Sydney Metro City & Southwest is forecast to open in 2024. Work continues on Sydney Metro Northwest
The entire deck of Sydney Metro Northwest’s 4-kilometre elevated skytrain bridge is now in the air, with Gladys Berejiklian welcoming the development as a “critical milestone in delivering a 21st century railway system” to the city. The skytrain between Bella Vista and Rouse Hill was completed in June, sitting an average of nine metres above Windsor Road and Old Windsor Road. It was built from 1,128 concrete segments, each weighing between 56 and 147 tonnes, comprising a total of 80,000 tonnes of concrete, tightened internally with roughly 1,400 kilometres of steel cable. It features the 270-metre railway bridge over Windsor Road, the first cable-stayed railway bridge to be built on a curve in Australia. The bridge deck will eventually be supported by 32 cables and two 45-metre-high towers, to be installed over the coming months. More than 4,600 workers have reportedly worked on the skytrain project so far. The premier joined NSW’s transport and infrastructure minister Andrew Constance to walk along the newly raised deck of the bridge, the design of which is inspired by the Anzac Bridge over Windsor Road at Rouse Hill. Constance said the Sydney Metro project was moving ahead quickly and would soon alter transport in the city. “Before you know it, a new metro train will be running here every four minutes in the peak in each direction, bringing reliable metro rail to this region – and Australia – for the first time,” the transport minister said. Sydney Metro Northwest will open in the first half of 2019.
Photo: Rail Gallery
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“New metro rail will become the fastest, easiest and most reliable journey between the Sydney and Parramatta CBDs. “Like the Sydney Harbour Bridge did a century ago, Sydney Metro West will shape this city for the next one hundred years and beyond.” The State Government believes Sydney Metro West can help unlock housing supply and employment growth between the two major CBDs. The project will work separately from the existing T1 Western Line, effectively doubling rail capacity from Parramatta to the CBD. Constance said the aim of the community and industry consultation is to finalise the number of stations and the alignment of the line, with four key precincts already identified:
on what the Sydney Metro West project should look like. “This is a chance for the people of Sydney’s Greater West to have their say on this massive city-shaping project,” the minister said in late June.
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Parramatta Sydney Olympic Park The Bays Precinct west of the Sydney CBD The Sydney CBD
The project is expected to be built largely underground and be operational in the second half of the 2020s.
TRIO OF FIRMS LISTED FOR CENTRAL STATION REVITALISATION Three groups have been shortlisted to deliver the NSW Government’s Central Station revitalisation project, which includes building a new underground concourse linking the station with future Sydney Metro platform. Transport and infrastructure minister Andrew Constance announced the shortlist: • Laing O’Rourke Australia Construction Pty Ltd • CPB Contractors Pty Ltd and John Holland Pty Ltd joint venture • Lendlease Engineering Pty Ltd/Lendlease Building Pty Ltd The winning bidder will be given the contract to build the Central Walk, and the new Sydney Metro platforms under the railway station. The contract is expected to be awarded in the first quarter of next year.
“Central is the backbone of our public transport network with more than 250,000 people passing through the station every day,” Constance said. “But that number’s expected to grow to 450,000 in the next two decades, and we need to ensure better transport connections are in place to help people get around.” The 19-metre wide Central Walk tunnel will open to Chalmers Street. “This is the first step towards revitalising Central Station,” Constance said. “We want to unleash its potential as a world class gateway, on par with some of the grand stations of the world, and Sydney Metro is the key enabler in making that happen. “By combining the works of the metro platforms and Central Walk we can deliver both projects at the same time and minimise the disruption to customers.”
Metro West consultation begins
With Sydney Metro Northwest under construction and a major contract awarded for Sydney Metro City & Southwest, Transport for NSW has begun consultation on the next portion of the network: a metro line from the CBD to Parramatta. Transport minister Andrew Constance welcomed input from the community and industry www.railexpress.com.au
The Central Station Revitalisation contract includes the development of a concourse between the existing infrastructure and the new Sydney Metro platforms. Graphic: Transport for NSW
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QUBE KICKS OFF MOOREBANK; LOOKS TO MARKET FOR CASH LOGISTICS FIRM QUBE UNDERWENT A $350 MILLION EQUITY RAISING PUSH IN JUNE, TO FUND ITS MOOREBANK INTERMODAL TERMINAL PROJECT, AND OTHER GROWTH OPTIONS.
evelopment has formally begun at Moorebank Logistics Park, the largest intermodal logistics precinct in Australia. A ceremony held at the site in Sydney’s south-west marked the official launch of the Moorebank project, which is now fully-owned by Qube, after it bought out joint venture partner Aurizon’s 33% share in the project for $98.9 million in August last year. Qube managing director Maurice James said the Moorebank precinct would transform the freight and logistics supply chain all along the East Coast. “The Moorebank development is certainly a once in a lifetime opportunity,” the Qube boss said. “Linking one of the nation’s busiest ports by rail to an inland facility with the sheer scale and location benefits of the Moorebank site is a game changer that will deliver huge long term benefits to consumers and businesses that will operate here.” Moorebank will connect via a direct rail link with Port Botany, and will also be connected to the interstate rail network. “The commencement of construction is a significant milestone that recognises our success and brings us a step closer to realising
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(L to R) Moorebank Intermodal Company chair Dr Kerry Schott, federal finance minister Mathias Cormann, and then-chairman of Qube Holdings Chris Corrigan at the Moorebank sod-turning ceremony. Photo: MICL
the substantial benefits this development will deliver for the people of southwest Sydney, and NSW more broadly,” James added. Qube will develop, manage and operate Moorebank on 243 hectares of land, owned under a 99-year lease. It embarked on an equity-raising drive in June, looking to raise $80 million for construction of new warehousing at Moorebank to begin early next year, and $70 million for growth capex already committed or approved this year. The remaining $200 million raised will be set aside to improve the liquidity of Qube’s balance sheet, and better position the firm “to pursue other identified strategic growth opportunities”.
(L to R) Then-chairman of Qube Holdings Chris Corrigan, finance minister Mathias Cormann, Moorebank Intermodal Company chair Dr Kerry Schott, and transport and infrastructure minister Darren Chester. Photo: MICL
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James said the $80 million for new warehousing would accommodate Moorebank’s first tenant, and would provide an initial warehouse facility for Qube Logistics – the company’s intermodal freight division. “We are delighted with the initial reaction of potential tenants to the transformational proposition that is provided by the Moorebank facility,” James said. “Qube is pleased to have achieved a further important milestone, with the development of the first new warehousing at Moorebank bringing us a step closer to realising the substantial benefits that the Moorebank project will deliver for customers, suppliers, and the entire East Coast freight and logistics chain.” Along with Moorebank spending, Qube in FY17 committed around $70 million to buy new locomotives, warehousing at Altona, facility upgrades at Minto for an automotive logistics hub, equipment for new contracts and South Australian port facilities.
Transport and infrastructure minister Darren Chester. Photo: MICL
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The Moreton Bay Rail Link during construction. Photo: Queensland Government
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ATSB OPENS INVESTIGATION OVER QUEENSLAND RAIL WORKER DEATH
MORETON BAY CLOSURE JUSTIFIED: REPORT AN OFFICIAL REPORT HAS SAID THE DECISION TO STALL THE OPENING OF QUEENSLAND’S MORETON BAY RAIL LINK WAS JUSTIFIED AND NECESSARY.
ransport minister Jackie Trad in May announced the findings of rail expert Robert Smith’s investigation into the line’s closure, which were provided to the Government last year, but could not be released until “residual commercial negotiations with the contractor were finalised and the legal process concluded”. Informing the Government’s decision to delay the opening last year, Queensland Rail had cited both “operational and safety” concerns over the line’s signalling system.
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Queensland Rail had cited both “operational and safety” concerns over the line’s signalling system.
Photo: Rail Gallery
The report found the decision to delay the opening of the MBRL was “justified and necessary,” but noted Queensland Rail’s identification of safety as a reason to delay the commissioning was not applicable, as safety issues had not yet been formally assessed as part of the line’s regular commissioning schedule.
The report made 40 recommendations; the first 16 of which were applied immediately to the MBRL to allow it to open late last year. “Since its implementation, the signalling system has performed well,” Trad said. “The remaining 24 recommendations relate to lessons learned and future projects are all being addressed.” Scheduled to open midway through 2016, the Moreton Bay Rail Link’s final commissioning was delayed until October, after then-transport minister Stirling Hinchliffe put the line on hold due to concerns over signalling. The $988 million MBRL project was jointly funded by the Federal Government ($583 million), Queensland Government ($300 million) and Moreton Bay Regional Council ($105 million), with Thiess listed as the project’s managing contractor and full rail service provider. Hinchliffe launched the independent audit a week after he delayed the line’s opening. “Queensland Rail testing has determined the signalling system currently installed does not meet the operational and safety standards found across the rest of the net work,” Hinchliffe said at the time.
QUEENSLAND RAIL AND THE AUSTRALIAN TRANSPORT SAFETY BUREAU ARE INVESTIGATING THE DEATH OF A TRACK WORKER WHO WAS HIT BY A PASSENGER TRAIN AT PETRIE RAILWAY STATION IN MAY.
ueensland Rail chief executive Nick Easy confirmed the man died after being struck by a passenger train while working in the rail corridor at 10:26pm on May 29. “The employee was working as part of a track maintenance team and has sadly passed away,” Easy said. “I want to express my heartfelt sympathies to the man’s family and friends and Queensland Rail employees who I know will also be devastated by this incident.” Petrie station is where the newly-opened Moreton Bay Rail Link joins the main South-East Queensland passenger network. The opening of the MBRL was delayed last year due to concerns over the line’s signalling system, with then-transport minister Stirling Hinchliffe saying the system initially installed was not capable of managing a junction “as critical as Petrie”. Safety concerns were resolved throughout a lengthy investigation yielding dozens of applied recommendations, however, and the line was opened late last year. It is not known at this time whether signalling played any role in the fatality. Easy said QR was working with investigators to examine the cause of the incident. The ATSB opened its formal investigation, with a preliminary report expected within 30 days. Deputy premier and minister for transport Jackie Trad, quoted by the ABC, said: “Safety for our Queensland Rail workers is my absolute priority and there is a full investigation underway.”
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The Centre for Railway Engineering (CRE) at CQUniversity is an industry focused research centre located in Rockhampton. CRE is known for its work in train dynamics, wagon and bogie dynamics, wagon/track system dynamics and is strongly committed to providing high quality research and consultancy services to the rail industry. This includes involvement in projects from the initial concept right through to the development and pre-commercialisation stages. Our physical resources include a unique laboratory purpose designed for full scale testing of bogies, wagons, locomotives and civil infrastructure components. We are therefore pleased to be hosting IAVSD2017, the peak world forum on the dynamics of ground based vehicle systems, here in Australia for the first time. Contact CRE | Phone: +61 (0)7 4923 2277 Email: cre@cqu.edu.au | Website: www.cqu.edu.au/cre
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JOB CUTS, RESTRUCTURE FOR AURIZON IT’S BEEN AN ACTIVE FEW MONTHS FOR AURIZON, WITH CHANGES ANNOUNCED TO THE COMPANY’S BOARD, A TURN TO THE DEBT MARKETS, AND A RESTRUCTURE THAT WILL SEE AS MANY AS 370 JOBS CHANGED, OR CUT ENTIRELY.
bout 180 maintenance jobs and 190 train crew jobs will be cut after Aurizon announced plans in June to close its Rockhampton rollingstock maintenance workshop, and change train crew conditions in the region. The Queensland-based freight operator announced the Rockhampton on June 1, along with a proposal to move to more flexible train crewing operations in Central and North Queensland, as a result of changing customer needs. Aurizon said the changes, which will be phased through to late 2018, are necessary to address the varying demand in the resources sector as well as changes to the company’s operating footprint. Of the 181 workers at Rockhampton, roughly 40 may find work at Aurizon’s Jilalan facility at Sarina, where most of the Rockhampton work is being consolidated. Meanwhile, 126 permanent train crew positions are expected to be phased out in Central Queensland in the next 12 months, to be replaced with around 70 locally-based train crew contractor positions. In North Queensland, the end of a deal with Wilmar Sugar will see the further reduction of roughly 62 permanent positions including train crew, freight operators and leaders at Aurizon’s Mackay and Townsville depots. The Mackay depot will also be closed as a result of the changes. Then-head of operations Mike Carter said as market demand had changed in recent years, Aurizon’s business had changed significantly as well. “Aurizon needs to continue to change in line with what our customers need if we are to remain competitive,” he said. “Historically, most of our train crew have been permanent full-time employees and we have been unable to match fluctuations in weekly and monthly demand in train haulage services from coal customers or contract wins or losses. “As a result we are proposing to change the composition of our train crew workforce in Central and North Queensland.”
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Carter said the move would involve engaging more contractors. “This will result in reducing the number of permanent full-time train drivers,” he said. The changes are in addition to the staged closure of the Rockhampton rollingstock maintenance workshop by late next year. “The amount of work required at this workshop has significantly reduced in recent years,” Carter said. “It is a legacy facility – designed for a different operating footprint in a different time – and is not located close to our operations in the Central Queensland Coal Network.” Aurizon said it intends to explore all options for employees including retraining, redeployment and redundancy. The Rockhampton Workshop was first established in 1870s and includes a ‘roundhouse’ previously used to move locomotives
Aurizon announced the sacking of roughly 180 maintenance staff, and the re-structuring of roughly 190 train crew roles, in June. Photo: Rail Gallery
into various maintenance bays. The heritagelisted roundhouse is largely preserved and provides an ideal opportunity for integration into any future urban redevelopment, Aurizon has said. Harding restructures board
Aurizon managing director Andrew Harding also made a number of organisational and leadership changes at the start of the new financial year. The former mining boss, who took over at Aurizon late last year, said the operator would move from a functional based model to a business unit model designed along four core areas of the business: Network, Coal, Bulk and Intermodal. He named Michael Riches as the group executive for Network, Ed McKeiver for Coal, Clay McDonald for Bulk, and Andy Jakab for Intermodal, with Jakab’s appointment “pending the outcome of our previously announced freight review”. The changes also led to the departure of former network head Alex Kummant, after a five-year stretch at Aurizon. Harding said the business unit model would help drive transformation efforts with greater efficiencies, improved customer service and productivity improvements. “We have collapsed management layers and removed roles from the broader management group,” Harding said. He said one of new network boss Michael Riches’ first priorities will be the successful negotiation of Aurizon’s fifth rail access undertaking (UT5) with the Queensland Competition Authority. “Michael is an experienced executive with extensive regulatory and legal experience in Australia,” Harding said. “Our regulated network business is a key part of our business portfolio and Michael’s experience in negotiating regulatory outcomes will assist in driving reform for the benefit of Aurizon and our customers.” Riches most recently held senior roles at Alinta Energy. Prior to that, he spent six years as a partner at Clayton Utz, and over 11 years at Minter Ellison.
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New coal boss Ed McKeiver is described by Harding as being “well known to our customers and staff,” having held several senior roles across Aurizon over the past seven years, including four years running its coal service delivery operations. “He has been heading up our current customer and strategy function and his substantive role is supporting our coal customers so he is well placed to transition this part of our business,” Harding said. “Prior to joining Aurizon, Ed worked for BlueScope Steel and BHP and held senior roles in logistics, steel, coal processing and energy.” New bulk boss Clay McDonald will be in charge of diversified bulk and iron ore businesses. “Clay has been with Aurizon for the past nine years and has served in several senior management roles,” Harding outlined. Meanwhile, Aurizon CFO Pam Bains will lead the company’s finance and strategy team under the new structure, and current HR head Tina Thomas will lead the new corporate function, which includes HR, legal, brand and communications, risk, and company secretary. Another current Aurizon executive, Mike Carter, has been appointed to lead the new technical services and planning business unit, which Harding said will provide “key enterprise-wide specialised services to the other business units”. “This includes central stewardship of key company assets such as rollingstock fleet, real estate, information technology and operational technology,” Harding explained.
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Aurizon’s new-look executive team. Top row (L to R): CEO and managing director Andrew Harding, CFO and group executive strategy Pam Baines, group executive bulk Clay McDonald, and group executive coal Ed McKeiver. Bottom row (L to R): group executive technical services and planning Michael Carter, group executive network Michael Riches, and group executive corporate Tina Thomas. Photos: Aurizon
Aurizon Holdings told the ASX on June 14 its subsidiary, Aurizon Network, was issuing $425 million in 7-year notes. The notes were issued at a fixed coupon of 4% per annum, pricing at 177 basis points over the 7-year swap rate. The operator expects the bonds to be rated at Baa1 and BBB+ by Moody’s and Standard & Poor’s, respectively, in line with Aurizon Network’s existing debt facilities.
Aurizon said the proceeds from the notes will pay off existing bank debt, which matures in 2018. The new notes will mature in June 2024. “This issuance represents a successful return to the domestic bond market and marks another step in fulfilling our strategic objectives to diversify funding sources and lengthen our debt maturity profile,” Bains said. “We are very pleased with the strong support received from debt investors for Aurizon Network.” Aurizon boss Andrew Harding, who joined the company late last year, has moved to restructure the business. Photo: Rail Gallery
$425m turn to debt market
Aurizon chief financial officer Pam Bains says the recent successful pricing of $425 million in medium term bonds will help the operator diversify its funding sources and lengthen its debt maturity profile.
TOWNSVILLE LINK ALIGNMENT UNDER CONSULTATION COMMUNITY CONSULTATION HAS BEGUN ON THE PROPOSED ALIGNMENT OF THE TOWNSVILLE EASTERN ACCESS RAIL CORRIDOR, WHICH WILL ALLOW TRAINS UP TO 1,400 METRES LONG TO ACCESS THE PORT OF TOWNSVILLE.
nspecting the potential TEARC site on June 26, state minister assisting the premier on North Queensland Coralee O’Rourke said Townsville business owners deserved more opportunities to grow and thrive. “While our current rail line has served our community well, we have now reached a point where local businesses and suppliers are missing opportunities to move freight because of limitations,” O’Rourke said. “We know TEARC is a massive project for our region, with a proposed freight line to connect the existing rail line from Mt Isa into the Port of Townsville, opening up more opportunities for local businesses and suppliers. “That’s why the Palaszczuk Government has committed to progressing the detailed business
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Photo: Rail Gallery
case for TEARC, in partnership with Council and the Commonwealth, through the City Deal.” The detailed business case is being developed by independent statutory body Building Queensland and the Department of Transport and Main Roads, and is expected in the fourth quarter of 2017.
The proposed corridor would branch off from the North Coast Line at Cluden, south of Townsville, running parallel to the Port Access Road into the port. Infrastructure Australia has the upgrade of the Mount Isa to Townsville rail corridor – which includes the TEARC – listed as a medium term priority initiative, in the business case development stage. “This rail corridor will be a part of our community for generations to come, so I encourage locals to come along to one of the information sessions and have your say on our city’s future,” O’Rourke said. “Townsville needs long-term infrastructure solutions to support local jobs and keep up with demand in our region.”
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QUEENSLAND FUNDS, STARTS WORK ON CROSS RIVER RAIL PRIME MINISTER MALCOLM TURNBULL QUESTIONED QUEENSLAND’S COMMITMENT TO THE INLAND RAIL PROJECT AFTER PREMIER ANNASTACIA PALASZCZUK ANNOUNCED THE STATE WOULD FULLY FUND BRISBANE’S CROSS RIVER RAIL PROJECT WITHOUT FEDERAL FUNDING.
alaszczuk, treasurer Curtis Pitt, and transport minister Jackie Trad announced the State Government will fully fund the $5.4 billion project, which it has been asking the Commonwealth Government to help fund for some time. Palaszczuk left the door open for federal funding, but said the project was too important for the state to keep waiting. “The importance of Cross River Rail for the future of South East Queensland is unquestionable,” the premier said. “Industry experts and the community agree that we need this project and we need it now. That is why my government is fully funding the $5.4 billion Cross River Rail project. “However, we are not shutting the door on other sources of funding – the Cross River Rail Delivery Authority will continue to look at options to partner with the private sector and we expect to secure funds from future Australian Governments.” Treasurer Curtis Pitt, who handed down the State Budget on June 13, said the FY18 Budget allocates $2.8 billion over the forward estimates, with a further $2.6 billion to be committed in future Budgets. “We will no longer wait for the do-nothing Turnbull Government. We are getting on with building Cross River Rail,” Pitt said.
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The news did not seem to please the prime minister, who was asked by shadow transport minister Anthony Albanese in question time, why the Coalition had so far failed to fund the project.
Queensland transport minister Jackie Trad (left) and Premier Annastacia Palaszczuk launching the Cross River Rail project in June. Photo: Jackie Trad / Twitter
“Why is the prime minister purporting to support public transport in our cities, while pretending this essential project is not ready to go?” Albanese asked. The prime minister accused Labor of being too focused on urban rail projects, suggesting the State Government should do more to
support Inland Rail – a project which has received Infrastructure Australia approval. “[Consider] Inland Rail, which the Labor Party doesn’t have much passion for, and the Queensland premier wants to sort of hold hostage until there’s commitment to the Cross River Rail in Brisbane,” the PM said during Question Time on Tuesday. “A vital piece of nation-building infrastructure across regional Australia is to be held hostage until there is commitment to an urban rail project in the middle of Brisbane.” The PM seems determined not to waiver from the Infrastructure Australia guidance in this case. “The Cross River Rail project is being considered by Infrastructure Australia now … and we are awaiting Infrastructure Australia’s assessment of the project,” he said. Nonetheless, just a day after Palaszczuk Government announced it would fund CRR, the premier, treasurer, and transport minister were on hand at the GoPrint site at Woolloongabba, to announce approval for work to begin. Palaszczuk said the GoPrint site, a former rail and tram depot, would become the new Woolloongabba Station, one of four new underground stations planned along the Cross River Rail route.
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Cross River Rail is a 10.2-kilometre rail link from Dutton Park to Bowen Hills, via four new inner-city, high-capacity train stations. Graphic: Queensland Department of Infrastructure, Local Government and Planning
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“The area will also be the primary staging site for the tunnel boring machines to dig the twin tunnels towards the city as well as south towards the new Boggo Road Station,” the premier added. “People will soon see fences and signs at the site proudly proclaiming this is the start of Cross River Rail. I’m proud to be delivering this critical project for Queensland – the jobs start now.” Trad said early site works at Woolloongabba were scheduled to start in September. “This is the start of the something big,” the transport minister said. “Cross River Rail will transform South East Queensland, taking 18,500 car trips off our major arterial roads every day. It adds a second inner city river rail crossing and is the key to connecting road, rail and bus networks to create a fully integrated transport network. It will get Queenslanders home faster, create thousands of jobs and it is critical for the growth of our region.” Brisbane Metro, CRR rolled into single funding pitch
Despite committing to fully-fund Cross River Rail, the State Government and Brisbane City Council have released a joint roadmap for the future of the city’s public transport, which includes plans for the “complementary” Cross River Rail and Brisbane Metro projects. The Brisbane Metro is a proposal from Brisbane’s Mayor, Graham Quirk, to build a high-frequency metro network across 21 kilometres of existing busway. Previously the two projects have been framed by local media as competing; while they don’t serve the same purpose, and could
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Brisbane Metro is a proposal from the Brisbane City Council for a high-frequency public transport system to reduce CBD bus congestion and improve connectivity to surrounding suburbs. Graphic: Brisbane City Council
feasibly both be built, both would need significant funding to come to fruition. But the new plan, outlined by Mayor Quirk and transport minister Jackie Trad, describes both proposals as “vital and complementary”. The combined plan, called Connecting Brisbane, has been designed around the federal government’s Smart Cities Plan. “We are bringing together the vision of the Palaszczuk Government and Brisbane City Council in a strategy that will lay the foundation for us to transform transport and tackle congestion in Brisbane and the wider region, as well as drive economic growth,” Trad said. “It is a blueprint that will free up the bottlenecks and increase mobility around the region through two cornerstone public transport projects – Cross River Rail and Brisbane Metro.” Trad said the two projects would together allow the whole public transport system to provide faster, more frequent transit through, to, and from the city.
“It will transform Brisbane from having a radial network, with buses and trains making journeys into the city centre, to an integrated ‘turn up and go’ high-frequency with improved connections and reduced duplication,” she said. “This strategy also shows how Cross River Rail and Metro will provide the long term backbone for the next wave of medium and long term infrastructure projects to improve transport for the whole of South East Queensland.” Quirk said the business case for Brisbane Metro confirmed the project is a cost-effective solution. “Right now, buses carry two of every three public transport patrons in Brisbane,” Quirk said. “Our existing bus infrastructure is already at capacity in a number of areas and cannot cope with the continued forecast growth of our city. Brisbane Metro will provide significant benefits for both the city and the region, complementing the Cross River Rail project and existing heavy rail services.”
ENERGY CRISIS THREATENS GLENCORE’S COPPER OPERATION THE NATIONAL DEBATE OVER ENERGY PRICES FOR INDUSTRIAL CONSUMERS REIGNITED IN JUNE AFTER GLENCORE THREATENED TO WIND UP ITS MASSIVE QUEENSLAND COPPER OPERATIONS IF CONDITIONS DIDN’T IMPROVE.
lencore, which operates a large copper operation in Queensland’s north, appeared to use the national debate over government funding for Adani’s controversial Carmichael coal mine and railway, to highlight the lack of help it feels like it is getting from the State and Federal Governments in the ongoing energy crisis. Major industrial energy buyers like Glencore have faced increasingly steep energy bills of late, due in part to the huge amount of gas being exported through Queensland’s three new LNG terminals, which are drying up domestic supply. While the Turnbull Government and ACCC have moved to investigate the situation, Glencore wants action soon. In a letter reportedly sent to Queensland’s Premier, the prime minister, and the respective state and federal resources ministers, Glencore copper boss Aristotelis Mistakidis said the
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company may consider closing its copper processing facilities, including its smelter in Mount Isa, and refinery in Townsville. “There are a range of cost factors which are currently impacting the ongoing viability of our copper operations in Queensland,” he was quoted by Fairfax, “including energy, labour, rail and freight. “Given the current electricity prices and uncertainty around future supply, we need
to consider options for shutting our smelter and refinery [and] ship copper anodes direct to market and/or refine at one of our other plants offshore.” The letter has sparked further comments from industry members, also unhappy with the continued state of energy supply. Matt Howell, chief executive of Australia’s largest aluminium smelter business Tomago, told the AFR the company was also investigating cutting into production as a result of “ridiculously high” wholesale energy prices. Part of the Turnbull Government’s response has been an investigation by Chief Scientist Alan Finkel. The Prime Minister’s office has ruled out any emissions intensity scheme, and has said the Clean Energy Finance Corporation funds could indeed be used for “clean” coal technologies.
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Aurizon’s desire to export as much as 60 million tonnes more coal from Queensland’s coastline every year has not been well-received by activists. Photo: RailGallery
ADANI PUSHES ON WITH CARMICHAEL DESPITE HEAVY CRITICISM INDIAN ENERGY GIANT ADANI PUT PEN TO PAPER ON KEY MULTI-MILLION DOLLAR CONTRACTS AND OPENED ITS TOWNSVILLE OFFICE IN JUNE, AFTER ANNOUNCING A POSITIVE FINAL INVESTMENT DECISION ON THE MASSIVE CARMICHAEL COAL MINE AND RAIL PROJECT IN QUEENSLAND’S GALILEE BASIN.
ut the project still faces significant opposition from multiple angles, including criticism from politicians, green groups, and major Queensland operator Aurizon. Adani chairman Gautam Adani said the final investment decision represented the “official start” of the project, which includes building a 60 million tonne per annum coal mine and processing site, and a new 189-kilometre rail line to link the site with the existing Goonyella rail line at Moranbah. “We have been challenged by activists in the courts, in inner-city streets, and even outside banks that have not even been approached to finance the project,” the chairman said. “We are still facing activists. But we are committed to this project. We are committed to regional Queensland and we are committed to addressing energy poverty in India.” Adani’s Australian boss Jeyakumar Janakaraj outlined a number of contracts signed by Adani in to kick off the project, including a $74 million deal for rail to be supplied from Arrium’s steelworks in Whyalla, and an $82 million deal for sleepers from Austrak’s facility in Rockhampton.
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Janakaraj also referenced agreements with AECOM to survey and design the rail link, and Downer Mining for the construction and operation of the mine itself. “We are building more than a rail line,” Janakaraj said. “We are building a line that will open the Galilee Basin, linking that massive coal reserve to markets around the world, generating power, and – importantly – generating many thousands of direct and indirect jobs in regional Queensland. “In Adani’s case, it will link its Carmichael coal mine to our bulk loading facility at the port of Abbot Point from where it will be shipped to Adani’s power stations in India.” Janakaraj said Adani was delivering on its promise “to address power poverty for hundreds of millions in India and unacceptably high unemployment in regional Queensland”. “To those activists who sit in creature comfort and criticise us, I ask a simple question – what are you doing for those people?” Queensland Premier Annastacia Palaszczuk was on hand to officially open Adani’s regional headquarters in Townsville, at a ceremony also attended by Northern Australia and resources minister Matt Canavan.
Palaszczuk said the project would be built in a way that supports the local region and its economy. “Opening up these three regions [the Galilee and Surat Basins, and the North West Minerals Province] for development has the potential to support thousands of new jobs that are needed in regional centres along the coast as well as in outback Queensland,” the premier said. “With the final investment decision announced, I welcome contracts being completed for early suppliers to the project in regional Queensland and I urge the start to early works to support even more jobs for Queenslanders.” Funding questions rain on Adani’s parade
Critics slammed the “final investment decision,” after an Adani spokesperson told Fairfax the miner would have to “review its options” if it missed out on a controversial $1 billion loan from the Australian Government. CONTINUES PAGE 30 u
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Adani plans to build a new, 388km, standard gauge railway to export Carmichael coal, capable of handling 4km trains with 32.5-tonne axle loads. Graphic: Adani
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The first stage of the project, which will see the mine, rail and port operation exporting 20 million tonnes of thermal coal every year, will cost roughly $6.7 billion. Adani is reportedly $3.3 billion short of that at present, but a $1 billion loan from the Commonwealth – via the Northern Australian Infrastructure Facility – is said to be a key factor in reaching that figure. And that’s a problem, because the Turnbull Government, along with the NAIF chief executive and its seven-member board, have not made a final decision on the $1 billion loan request, which has faced fervent public opposition since it was made earlier this year. A spokesman for Adani conceded the loan was very important to the miner’s plans, reportedly telling Fairfax: “The fact is NAIF is critical. If we don’t receive that loan, then we are going to have to look at our options.” The news came after the Queensland Government sweetened the deal for Adani by cutting a controversial deal to defer millions of dollars in royalty payments for the mine, with Palaszczuk insisting the royalties would all be paid in full, plus interest, in the future. Canavan reportedly told the AFR it was a “potential risk” if Adani was indeed relying on the NAIF funding to progress its project. “They seem confident they can arrange the finance,” Canavan was quoted as saying. “They will lock down their financial models and as part of that due diligence they will share that with NAIF. It is a potential risk – there’s no doubt about that – but it’s a project of enough significance and potential to push ahead regardless to see that it can happen.”
Prime Minister Malcolm Turnbull, pictured here with Indian Prime Minister Narendra Modi, met with Adani chairman Gautam Adani on a trip to India earlier this year. Photo: Malcolm Turnbull / Facebook
The Greens have accused Adani of essentially trying to bully the Government into approving the loan. “The Greens will establish a Senate inquiry to investigate the NAIF, which looks set to become a $5 billion coal slush fund,” Greens Senator Larissa Waters said. “If a billion dollars wasn’t enough Queensland Labor are also offering a ‘dig now, pay later’ $253 million freebie for a dodgy multi-national mining company. “This so-called final investment decision is meaningless. Adani is still broke, and 19 banks have refused to fund their deadly mega-coal mine. Today’s announcement does not mean the mine will go ahead, it’s
a grab for a $1 billion handout of public funds from the Northern Australia Infrastructure Facility. This is desperate PR stunt from a desperate company trying to squeeze even more freebies from their mates in Labor and the Liberal Nationals.” Labor climate spokesperson: Carmichael ‘not positive for Australia’
Shadow climate change minister Mark Butler further muddied Labor’s support for Adani’s proposed Carmichael coal mine and rail project in Queensland, saying last month the economics of the project do not stack up. Australian Labor leader Bill Shorten has been stuck between a rock and hard place on Carmichael for some time. Labor’s progressive climate policies contradict the premise of supporting a new coal mine, but Shorten’s historical union backing means he can’t speak out against the project. Add to that a fractured Labor Government in Queensland, which is trying to progress the mine despite challenges from its powerful Left faction, and the nature of Shorten’s conflicted position becomes clear. As a result, Shorten has been forced to hedge his bets, not speaking against the project itself, while criticising Adani’s bid for a $1 billion NAIF loan. CONTINUES PAGE 31 – AFTER WOMEN IN RAIL SUPPLEMENT u
Bill Shorten has reasons to support the Carmichael project, but several key state and federal party members are against it. Photo: Bill Shorten / Facebook
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But Butler, who served as Kevin Rudd’s minister for climate change, and now serves as the shadow minister in the same portfolio, made his own feelings clear in late June, condemning the Carmichael project as being “built on a false premise”. “I have a very clear view that the economics of Adani don’t stack up, and that it would not be a positive thing for Australia for the Adani mine to go ahead, because I think that all it would do is take jobs from elsewhere in the coal industry,” the member for Port Adelaide said on The Guardian’s politics podcast on June 22. “I understand why the Queensland Government might be pressing this, but from a national perspective, I just don’t think it stacks up.” The shadow minister rejected the premise that Australia had a moral obligation to help provide India with coal that Adani says will give electricity to millions of Indian citizens. “If the Indian Government seeks support from the Australian Government then we should do all that we can,” he said. “The problem with the chain of reasoning that the Coalition runs here is that the Indian Government is doing pretty extraordinary things in connecting Indian villages to electricity … but it’s not doing it with Australian coal. It is reducing its thermal coal imports at rapid rates.” Despite his personal opposition to the project, however, Butler conceded the Labor Party was indeed stuck in a balancing act on Adani. “Coal-fired generation is going to be a part of the national electricity market for quite a number of years,” he conceded. “[But] the reality of climate change is becoming clearer and clearer to people, and I think these debates may well move quickly through the course of the 2020s and certainly into the 2030s. “The issue before us is whether or not the Commonwealth should provide a loan [to Adani],” Butler added. “We’ve got a very clear position about that, [but] beyond that there are different assessments people can make about the prospects of Adani.”
Image: Aurizon
Aurizon, Adani go head-to-head over railway plans
Along with the basic debate over whether the Carmichael mine should go ahead at all, there is also an ongoing battle over how Adani should transport its coal to market. Aurizon chief executive Andrew Harding has criticised the miner’s plans to use taxpayer money to build a more than 300-kilometre greenfield railway, and has said his company will be able to transport the coal via a connection of less than 200 kilometres of new track, to its existing Queensland coal railways. “We estimate that construction costs of our proposal would be at least $1 billion less than the alternative of a standalone ‘greenfield railway’ running 380 kilometres from the Galilee to Abbot Point,” Harding told a Melbourne gathering in late April. “Aurizon’s proposal would significantly reduce the number of land acquisitions and have less impact on the natural environment and agricultural land. “Aurizon has consistently advocated an open-access railway for all miners and rail operators, and integrated into the existing network that works well. Yet when I brought a new lens to the challenge of developing and funding rail infrastructure for the Galilee, I again struggled with some of the constructs.” The former Rio Tinto boss said there was “no question” in his mind about the merits of mining and exporting high-quality thermal coal from the Galilee Basin, instead telling the gathering, “the question is how?” “We have a proposal to build a new and expensive railway adjacent to an established network with spare capacity,” he said. “The Aurizon and proposed Adani corridors are so close that drivers could wave to each as trains crossed.
Adani is facing a challenge from dominant Queensland operator Aurizon over how it transports Carmichael coal to its export facility at Abbot Point. Photo: Rail Express
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“The Adani proposal would cost more than $1 billion than the Aurizon option of tapping into an installed and efficient infrastructure asset. I can only ponder the parallels with the massive investment in triplicate of LNG trains in Queensland, now under-utilised, and the source of angst for Australian gas consumers. “Adani’s proposal, through the NAIF process, also seeks Australian taxpayer funding. I’ve got to say that doesn’t make a lot of sense to me. Should this happen, then incredibly, I might find myself siding with the activists, albeit for entirely different reasons.” Adani spokesperson Ron Watson reportedly told the AFR he didn’t think Aurizon’s plan would be as cheap as Harding suggested, however. “The so-called plan is a smokescreen aimed at defending Aurizon’s expensive monopoly of coal rail lines in Queensland,” Watson was quoted as saying. “Adani challenges the veracity of the $1bn saving. “Aurizon’s capex and opex costs for 60 million tonnes per annum of coal on a narrow gauge line will be more than the Adani standard gauge solution.” Image: Rail Gallery
Austrak lands $82m Adani sleeper deal
Despite the continued debate, Adani has already signed an $82 million deal with Austrak to supply concrete sleepers from Rockhampton for the project’s rail line. The deal was announced in June, with Queensland’s rural economic development minister Bill Byrne saying Austrak would triple its workforce to more than 80 at Rockhampton, to deliver the contract. Austrak, a vertically-integrated business which designs, produces, and supplies sleepers and related equipment, will supply Adani with more than 730,000 concrete sleepers to help build Carmichael’s 388 kilometres of standard gauge rail line. The line will connect the mine in central western Queensland to the company’s bulk coal handling port at Abbot Point near Bowen. “Adani advise this contract will mean Austrak will triple its workforce to more than 80 and generate up to 30 supply chain jobs, and provide job security for the two-year life of the contract,” Byrne said. The minister, who is also the local member for Rockhampton, noted the contract was a piece of good news for the region, coming just days after operator Aurizon announced it would be closing its Rockhampton worksite.
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REGIONAL RAIL GETS THE GO-AHEAD AS FUNDING STALEMATE ENDS $556 MILLION FOR THE BALLARAT LINE, $435 MILLION FOR THE GIPPSLAND LINE, AND OVER HALF A BILLION DOLLARS MORE IN UPGRADES TO OTHER LINES MAKE UP A MAJOR VICTORIAN REGIONAL RAIL PACKAGE ANNOUNCED BY PRIME MINISTER MALCOLM TURNBULL LATE IN JUNE.
urnbull announced on June 27 the Federal Government will contribute $1.42 billion to Victoria’s Regional Rail Revival program. “This is a once in a generation investment that will deliver improvements for every regional passenger line in Victoria,” state transport minister Jacinta Allan said. The Andrews Government will contribute only $150 million to the project, but says the federal commitment represents the $1.45 billion the state feels it is owed from the Commonwealth’s asset recycling scheme, for selling the Port of Melbourne last year. Turnbull denied the $1.42 billion regional rail commitment was related to the asset recycling claim, however. He says the money is new infrastructure spending, maintaining his Government’s position that Victoria missed the boat on asset recycling funds. Turnbull said the combined $1.57 billion funding package will see new services added, travel times reduced, and stations upgraded, through funding distributed as follows:
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Malcolm Turnbull says the regional rail funding has not come from the discontinued asset recycling scheme. Photo: Malcolm Turnbull / Twitter
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$555.6 million for the Ballarat line $435 million for the Gippsland line $140 million for the North East line $110 million for Surf Coast rail including Waurn Ponds duplication $91 million for the Bendigo and Echuca line $95 million for the Avon River Bridge upgrade An additional $20.2 million for the Murray Basin freight rail upgrade, bringing total Commonwealth commitment to $240.2 million $10 million for the Shepparton line
“Good transport infrastructure is absolutely vital for a 21st century economy and that’s what we’re doing,” Turnbull told Eddie McGuire on his radio show in Melbourne on the morning of his announcement.
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“You knit all of these cities together and you create greater options. It has a fantastic impact on housing affordability,” he continued. “Because it’s important to understand that distance is measured in minutes not in kilometres.” Federal transport and infrastructure minister Darren Chester said the funding was the result of extensive talks between him and Jacinta Allan, after he had initially called Allan’s request for funding a “Santa’s wish list” in April. “When I referred to it as Santa’s wish list, I had a 1.5-page letter from the Victorian Government and no detailed plans,” Chester told reporters. “Now we have been able to get detailed plans out of the Victorian Government. We want to get on with the job. It’s been a difficult negotiation process at times. But it’s fair to say that over the last month we have made a great deal of progress.” Chester also rejected the state’s assertion that the Commonwealth funding was owed to Victoria for selling the Port of Melbourne, saying on AM Radio: “The premier can say what he likes really; I just don’t particularly care what he says about most things these days. He’s completely out of touch with Victorians.” Turnbull also used the announcement to take a swipe at the premier, highlighting the cancellation of the East West Link tollroad project “wasting over $1 billion”. Unperturbed by the continued attacks from the federal politicians, Andrews hailed the funding announcement as a major win for Victorians and Victorian jobs. “We said we would fight every day to get the money that was owed to Victorians and that’s what we’ve done,” he said. “The Liberals said we should be happy with whatever crumbs fell our way. But we weren’t copping that. We told the Federal Government that our fight would simply continue until we saw results.” Victoria’s asset recycling saga ‘fake news’: PM
Prime Minister Turnbull teed off on journalists who questioned the nature of Canberra’s $1.42 billion commitment to Victorian regional rail, calling speculation over missing asset recycling money “fake news”. The PM was in Melbourne discussing the federal funding for Regional Rail Revival, which the Andrews Government announced in April based on $1.45 billion it claimed it was owed by the Commonwealth for selling the Port of Melbourne in September 2016. Federal treasurer Scott Morrison has argued the state does not deserve any reward for the port sale, because the two-year asset recycling scheme closed before the deal went through – a fact Daniel Andrews has blamed on stalling tactics by Victoria’s Liberal Opposition. Moreover, Morrison has argued Victoria was never to receive $1.45 billion for selling the port, instead saying he offered state treasurer Tim Pallas an $877.4 million commitment, which Pallas did not sign.
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“My focus, our focus, is on the needs of 24 million Australians,” he continued. “We are committed to them. “I hear all the commentary. I see all the click-bait. I see all of the fake news. I’m not interested in that. I’m interested in results. That’s what we are delivering.” Lendlease/Coleman/SMEC bid wins $518 Ballarat upgrade
Victorian transport minister Jacinta Allan and premier Daniel Andrews say the Commonwealth funding is vindication for the state’s continued campaign for asset recycling funding for the sale of the Port of Melbourne last year. Photo: Jacinta Allan / Twitter.
The result has been nine months of bickering between the state and federal governments, with either side accusing the other of playing politics, and nothing getting done. That all came to an end with Turnbull’s announcement of $1.42 billion in regional rail funding, which the Victorian Government says has come from the asset recycling scheme, but the PM says has not. “No, it’s not [from the scheme],” the prime minister told reporters. “The asset recycling scheme has closed, this is money that’s coming out of our infrastructure budget. We found the funds available.” Turnbull’s patience was tested further, with a reporter asking whether Victoria would get any Commonwealth money for selling the Port of Melbourne, given the regional rail funding is not being attributed to the asset recycling scheme. “You are way out of touch,” the PM responded. “What Victorians are interested in is getting the job done. They want the infrastructure built. They are sick of politicians arguing and point-scoring. They’re sick of journalists and the media point-scoring and arguing too. “We are delivering this money today. The asset recycling scheme was closed. It had come to an end. I’m sorry, that’s the fact. But the bottom line is the money is there.
A week after claiming victory in the regional rail funding battle, Premier Daniel Andrews announced a consortium of Lendlease, Coleman Rail, and SMEC had been selected as preferred bidder for a $518 million contract to upgrade the Ballarat line on July 4. The upgrade will duplicate 18 kilometres of track between Deer Park West and Melton, paving the way for future electrification to Melton, the premier said. The Lendlease, Coleman Rail and SMEC consortium was one of the five shortlisted parties announced for the contract in June. A consortium of John Holland, Arcadis and KBR; a consortium of Laing O’Rourke and AECOM; a consortium of CPB Contractors and WSP; and a consortium of McConnell Dowell, RCR O’Donnell Griffin, Arup and GHD were also shortlisted. Along with the duplication, the project aims to deliver extra passing loops, new train stabling, better stations, and more car parking. It will also relocate stabling at Bacchus Marsh station to Maddingley. “We’re not wasting a moment upgrading the Ballarat line, and every regional passenger line in Victoria,” Andrews said. “We won the fight to revive regional rail and now we’re getting on with building the projects that regional Victorians need.” The state says the upgrade project will enable more trains to run more often in Melbourne’s west. It says the project will create up to 400 jobs during construction. Over 200 site investigations have been conducted and nearly 90 boreholes have been dug since February, to help the Melbourne Metro Rail Authority understand ground conditions along the Ballarat corridor. SMEC described the contract as “a significant win,” which “builds upon our reputation for delivering innovative solutions for transport infrastructure projects worldwide”.
The Ballarat line upgrade is the first major contract to come from the funding commitment from the Federal Government. Photo: Rail Gallery
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MURRAY BASIN UPGRADE GOES TO MCCONNELL-MARTINUS PAIRING FEDERAL INFRASTRUCTURE MINISTER DARREN CHESTER AND ACTING VICTORIAN PUBLIC TRANSPORT MINISTER LUKE DONNELLAN HAVE NAMED A MCCONNELL DOWELL / MARTINUS RAIL JOINT VENTURE AS THE SUCCESSFUL TENDERER TO DELIVER A MAJOR UPGRADE MURRAY BASIN RAIL NETWORK.
he contract represents stages two, three and four of the Murray Basin Rail Project, with work to take place from July 2017 to August 2018. “We are ready to maximise the benefits of this substantial investment in Victoria’s rail network, and deliver a safer, more productive rail freight network for V/Line and the people of Victoria,” McConnell Dowell’s Australian managing director, Jim Frith said.
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contract include gauge conversion and upgrades on rail freight lines from Maryborough to Yelta, Ouyen to Murrayville, Dunolly to Manangatang, Korong Vale to Sea Lake, and Gheringhap to Warrenheip. This follows the completion of the first stage of the project, where 175,000 sleepers were installed and 3,400 metres of new rail was installed on the Mildura and Hopetoun rail lines, in June last year. Terms for the fifth and
WE ARE READY TO MAXIMISE THE BENEFITS OF THIS SUBSTANTIAL INVESTMENT IN VICTORIA’S RAIL NETWORK
“Generating local jobs and spending locally will be a key focus of our team and we will be recruiting at least 15% of our workforce from the Murray Basin region.” Martinus Rail chief executive officer Treaven Martinus said the project was a major win for his business. “The project is consistent with both the values of Martinus Rail and our core business,” he said. “We are an organisation that is interested in working collaboratively with our clients and partners to deliver projects that improve local communities.” The three stages of work included in the
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final stage of the Murray Basin Rail Project, gauge conversion and upgrade works on freight lines from Warrenheip to Maryborough, are still TBC. All-in-all, the Murray Basin Rail Project will upgrade 1,055 kilometres of track, and convert it from broad gauge to standard gauge. This will increase the allowable train axle loading from 19 tonnes to 21 tonnes, although the Ouyen to Murrayville line will remain at a 19-tonne axle limit. Ministers Chester and Donnellan said the project, which has $240.2 million in funding
from the Commonwealth and $220 million from the Victorian Government, will increase exports of regional freight from Portland, Geelong and Melbourne. “Once the Murray Basin Rail Project is completed, trains on the freight network will be able to carry more product, more often,” Chester said. “There will be huge benefits to the Australian economy, with the project supporting an increase in competition between the three ports and operators of freight trains and increasing export volumes to overseas markets.” “This huge project will make it easier for primary producers to get their goods to market – boosting exports, supporting local jobs and growing our regional economy,” Donnellan added. “This project will create more than 400 jobs at peak construction.” Work will begin soon and will involve the temporary closure of the Maryborough to Yelta and Ouyen to Murrayville sections while the upgrades take place. The Sea Lake and Manangatang lines will remain open during this time so freight operators can use these as an option to move grain and other produce using rail, V/Line said. See next page for Murray Basin Rail Project Map
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VICTORIA DEFENDS POOR CROSSING REMOVAL BCR THE VICTORIAN GOVERNMENT HAS DEFENDED THE 0.78 BENEFIT COST RATIO SCORED BY ITS LEVEL CROSSING REMOVAL PROGRAM, SAYING THE PLAN IS ABOUT FAR MORE THAN ECONOMICS.
Project Business Case released on May 18 by Victoria’s Level Crossing Removal Authority – the body overseeing the removal of 50 level crossings between 2016 and 2022 – calculates the overall benefit cost ratio of the program at just 0.78, meaning just 78 cents of benefits will be realised for every $1 invested into the project. BCR analysis considers the financial benefits forecast to be made by a project, compared with its cost. Governments typically favour projects with the highest BCRs, and it goes without saying that projects with effectively negative BCRs – i.e. below 1 – are often ignored entirely. But in the case of level crossing removals, the Authority argues the non-financial benefits are worth the program’s $6 billion price tag.
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“The program of crossing removals will have benefits for safety, congestion, and creating better connected, liveable and thriving communities,” the Authority said. “20 people died after being hit by a train between 2005 and 2014 at one of the 50 crossings slated for removal, with more than 60 collisions and nearly 680 near misses also occurring at those 50 sites.” The program also achieves a better BCR when considered in conjunction with the rest of the Andrews Government’s package of rail works, including upgrades to the CranbournePakenham line, and the Metro Tunnel under the CBD. The Authority’s analysis estimates the BCR of the level crossings program at 1.2 with the additional programs’ benefits factored in.
The Victorian Government is in the middle of a program to remove 50 of the worst level crossings from around the greater Melbourne area. Photo: Level Crossing Removal Authority
“Together, this pipeline of projects will transform Melbourne’s transport network and the future shape of Melbourne,” the Authority said. “10 level crossings have already been removed, a further 13 are underway and all 50 will be removed by the end of 2022.”
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PROJECT MAP Murray Basin Rail Project
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OAKLANDS CROSSING REMOVAL GETS FUNDING THE TURNBULL GOVERNMENT WILL PROVIDE $95 MILLION TO UPGRADE THE OAKLANDS LEVEL CROSSING IN ADELAIDE’S SOUTH, FOLLOWING EXTENSIVE NEGOTIATIONS BETWEEN THE FEDERAL AND STATE GOVERNMENTS.
rban infrastructure minister Paul Fletcher in June announced a $55 million investment from the Commonwealth, adding to $40 million in funds already committed. The $95 million in federal funding will be combined with $74.3 million from the South Australian Government, and $5 million from the local City of Marion council, to fully fund the $174.3 million project to move the Seaford rail line underneath Diagonal Road. The $55 million in extra federal money, and $74.3 million from the state, both come from savings made on the North-South Corridor road project. The project will start next year, and is expected to take around 18 months to complete, employing 160 along the way. “Today’s announcement delivers on a 2016 election commitment and follows tireless advocacy by the Federal Member for Boothby, Nicolle Flint,” Fletcher said. “Pleasingly, we have now agreed funding for Oaklands Crossing with the South Australian
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The Oaklands level crossing removal is being jointly-funded by the Federal Government ($95 million), the South Australian Government ($74.3 million) and the City of Marion council ($5 million).
Government, as well as the City of Marion, and we are progressing this critical project.” South Australian Premier Jay Weatherill said the State Government had given the green light to provide a $74.3 million contribution to the project. “With the convergence of two major roads through the crossing, traffic
volumes are currently 42,000 vehicles per day, and are expected to grow to 66,000 by 2031, further exacerbating congestion,” he said. “This critical upgrade will ensure easier and safer access to the nearby State Aquatic Centre, along with other retail, leisure and health facilities, addressing longstanding concerns from the local community over the intersection.” State transport minister Stephen Mullighan said the new rail underpass would extend 400 metres to the east and west of Oaklands Crossing. “By separating the Oaklands rail crossing from the roads, we will significantly improve travel times for motorists who spend almost a quarter of the time during peak periods waiting at the boom gates,” Mullighan said. “I am very pleased to have been able to successfully negotiate this agreement to deliver this important upgrade, which will also deliver a 160-metre-long platform which will cater to longer trains as patronage continues to increase on the Seaford line.”
ARRIUM’S BRITISH BUYER HATCHES TURNAROUND PLAN THE FIRM ACQUIRING FAILED STEEL BUSINESS ARRIUM FOR $700 MILLION PLANS TO INCREASE PRODUCTION AT THE WHYALLA STEELWORKS, AND BURN EXCESS GAS TO HELP MAKE THE PLANT ENERGY SELF-SUFFICIENT, ACCORDING TO REPORTS.
rrium will be sold to a British partnership of GFG Alliance and Liberty House, having been under the control of administrators since it collapsed last year, citing debts of more than $4 billion. The company’s Whyalla steelworks is a key local rail manufacturing site: it was awarded a Federal Government contract after it went into administration to deliver 73,000 tonnes of steel rail to upgrade South Australia’s freight network, and has been linked to the potential Adani coal railway build in Queensland. Administrator KordaMentha announced the sale in June. The deal is still subject to approval by Arrium’s creditors, and the Foreign Investment Review Board, but finalisation is expected to occur in late August. “Subject to those approvals, this is a great result for Arrium Australia employees, and the city and people of Whyalla,” deed administrator Mark Mentha said. “It ensures their future and ends 15 months of uncertainty.” A Korean bidder had been the rumoured front-runner earlier in the sale process, but Mentha said the British firm ended up being the better option. “Taking all factors into consideration, including the timeframes required to complete a sale, the administrators and sale advisors Morgan
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Stanley, decided the GFG Alliance offer was superior to the conditional offer of the Korean consortium with whom we were negotiating.” South Australian Premier Jay Weatherill said the announcement was “great news for Whyalla and for the state, and offers a bright future for the workers and their families after so many months of uncertainty”.
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GREAT NEWS FOR WHYALLA AND FOR THE STATE ... Jay Weatherill – Premier of South Australia
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GFG Alliance and Liberty House plan to increase production at the Whyalla plant from the present 1.1 million tonnes a year to as much as 1.5 million tonnes, and potentially export steel slab as far as Britain, according to reports. On top of that, the owners are also planning to invest in converting the plant back to a hematite iron ore process, reversing the previous owners’ decision to move to magnetite.
This move would be made to allow the company to export the hematite if the market is peaking. The new owners also reportedly plan to utilise renewable energy, and burn unwanted gas generated during the steelmaking process, to help create a plant which generates enough energy to sustain itself – alleviating concerns over the rising cost of energy for industrial producers. “We have a vision to create a vertically integrated and sustainable industrial business that encompasses mining, metal recycling, primary metal production, engineering and distribution,” GFG Alliance chairman Sanjeev Gupta said on July 4. “We aim to leverage the advantages of integration across the value chain, from raw materials and metal production to high-end engineered products, coupled with supply chain and value added financial solutions. “Looking forward, we will continue to explore opportunities to further grow our presence in Australia in adjacent and complementary industries, including renewable energy, metals and mining.” GFG Alliance development director Michael Morley said the steelworks was well placed CONTINUES BOTTOM OF NEXT PAGE u
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NORTHLINE OPENS ADELAIDE SITE AUSTRALIAN FREIGHT BUSINESS NORTHLINE HAS OPENED ITS $23 MILLION ADELAIDE INTERMODAL TERMINAL, COMPLETE WITH A DIRECT ACCESS CARGO LINK TO PACIFIC NATIONAL’S NEIGHBOURING FACILITY.
he transport and logistics facility sits alongside the Kilburn railhead, in Adelaide’s inner north. This eliminates the need for freight to be moved by road between Pacific National and Northline’s facilities. Northline chief executive Craige Whitton said the new facility represents a major investment in the efficiency and effectiveness of his customers’ supply chains. “Northline recognises the need for a multi-modal solution to meet customer’s needs which has led us to bringing road and rail closer together as well as ensuring easy access to Australia’s major seaports for import/export,” Whitton said. The opening follows similar investments by Northline in new depots in Darwin, Brisbane, Townsville and Sydney over the last three years, as well as a move to a dedicated depot in Mackay. “With investments made over the last 3 years, Northline now has one of the most modern networks of transport and logistics depots across mainland Australia.” The new Adelaide depot facilitates B-Double movements, and is near Adelaide’s north-south road corridor, which is being upgraded with $2.5 billion in federal and state funding. It will also be a Quarantined Approved Premises (QAP), and therefore customs compliant. The 10,440 square metre facility is built on 30,000 square metres of hard stand, and
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to play “a significant role” in the expected growth in infrastructure spending in Australia in coming years. “The business is endowed with an experienced and skilled workforce, well-run operations, strong brands and long-established customer relationships and we look forward to exploring opportunities to grow the business further,” Morley said. “Whilst the Whyalla Steelworks has faced well-publicised operational and financial challenges over recent years, we have developed a comprehensive plan to secure its longterm future and that of the local community. “Our plan focuses on reducing the cost of iron ore feed, targeted modernisation investments, energy generation, expanding production and creating high value export opportunities. “We are particularly excited by the opportunity for the Whyalla Steelworks to directly supply intermediate steel products to our UK rolling mills that are currently sourced from third parties.”
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includes 3,500 square metres of warehousing space with modern high bay racking, along with a 440 square metre wash bay and container servicing area. Pacific National Intermodal general manager Andrew Adam welcomed the Adelaide investment, and recognised the need for greater collaboration between road and rail transport providers. “Northline’s facility represents the first intermodal cargo link operation in South Australia,” Adam said. “The benefits of the direct movement of rail containers between the rail terminal and Northline’s facility is already being shown with a reduction of trucks on the road and an overall improvement in supply chain efficiency.” Northline said the new depot also continues its ongoing relationship with real estate developer Gibb Group, which helped facilitate the development. Gibb Group Managing Director Matthew Gibb said we’re a customer oriented developer and focus on forming long-term relationships with our clients. “This is at the core of what we do,” Gibb Group managing director Matthew Gibb said. “So we are naturally very excited and proud to be delivering our third facility for Northline and our first in Adelaide.” Northline now has 13 branches across Australia.
Photos: Courtesy of Northline
RAIL KEY TO VITERRA’S BUMPER EXPORT GRAIN HANDLER VITERRA HAS EXPORTED OVER 5 MILLION TONNES FROM SOUTH AUSTRALIA IN THE PAST SEASON, WITH EXPORTS FROM THE EYRE PENINSULA ALONE ECLIPSING 2 MILLION TONNES LATE IN MAY.
he company credited effective supply chain management for the record shipments, which are being handled through its six export terminals in the southern state. Viterra logistics and commercial relations GM Jonathan Wilson said the huge shipping task was supported by the company’s rail and road outturn program, allowing export requirements to be met on time. “Moving a record crop cannot happen without buy-in from across the supply chain and with the aid of our strategic partners,” Wilson said. “We’ve been able to manage port capacity and move grain throughout the system in a timely manner to meet the needs of export markets and customers.” Viterra is owned by Glencore, and helping tip the shipping figure over 5 million tonnes was the barley vessel Densa Puma, headed
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for China through Glencore Agriculture. “We loaded 36,000 tonnes of barley, including the new variety Compass, bound for one of the world’s biggest maltsters,” Glencore Agriculture senior commercial manager Lyndon Asser said. “Securing a bulk cargo of Compass is an important step in our development of Compass as a new malting variety while we wait for accreditation. “Chinese customers have enjoyed the quality seen in Australian malting barley and varieties such as Compass this year. This bodes well for continuing demand in 2017/18 given Compass plantings look to be high again.” Viterra said 11 exporters have been shipping grain from South Australia this season to 21 different countries in Asia, the Middle East, Europe and Africa.
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SAFFIOTI APPOINTS METRONET PROGRAM LEADER
WA TRANSPORT MINISTER RITA SAFFIOTI HAS APPOINTED FORMER INFRASTRUCTURE AUSTRALIA BOARD MEMBER ANTHONY KANNIS TO LEAD A MULTI-AGENCY TEAM TO DRIVE THE MCGOWAN GOVERNMENT’S METRONET RAIL UPGRADE PROGRAM.
he specialist team will include experts from the Department of Transport, Public Transport Authority, Main Roads WA, Metropolitan Redevelopment Authority, the Department of Finance, Treasury, and the soon-to-beestablished Department of Planning, Lands and Heritage. Saffioti named Kannis, who worked for six years on the Infrastructure Australia Board, to lead the team, which will develop Metronet – a staged, multi-billion-dollar rail expansion and upgrade program aimed at transforming Perth’s urban transport network. “This team will comprise of experts from a variety of fields, who will work together under one office to deliver the best land use, transport and finance outcomes for Metronet,” Saffioti said. “Metronet is not only a transport plan but a blueprint for creating a network of well-connected activity centres across Perth.” The first stage of METRONET includes:
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• Completion of the Forrestfield-Airport Line (Expected completion end of 2020); • Building the Yanchep extension (Expected completion 2021); • Building the Thornlie to Cockburn line (Expected completion 2021); • Planning and construction of the Morley-Ellenbrook Line (Expected completion 2022); • Building the Byford extension (Expected completion 2023); • Starting a program of removing level crossings on the Armadale, Fremantle and Midland lines; and • Building new stations at Karnup and Midland. u
GUIDE TO NEW LINES Existing rail network North circle South circle Wanneroo line Ellenbrook line Yanchep extension Airport Line Pinjarra extension The McGowan Government’s METRONET vision. Graphic: WA Government
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Rio Tinto has exported over five billion tonnes of iron ore via its Pilbara network. Photo: Rail Gallery
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Part of the first stage of Metronet will also include planning for an inner suburb light rail system, as well as improving bus services and circle routes, and “creating better synergies” between cycling and public transport, Saffioti said. “The team will combine their expertise to achieve these outcomes and deliver on the McGowan Government’s plan to connect our city, reinvigorate suburbs, cut congestion and create thousands of jobs in the process,” she concluded. Forrestfield-Airport TBM arrives
The first of two $20 million tunnel boring machines has arrived in Perth, to help build the $1.9 billion Forrestfield-Airport Link rail project. The TBM arrived at the future site of Forrestfield Station in June. From July it will begin a two-year journey underground to Bayswater, where the new line will spur off the Midland Line. The new rail line will provide a much-needed rail connection to Perth Airport, with stations for the Domestic and International terminals positioned along the route. The TBM arrived at the Port of Henderson after spending nine months in China for initial assembly and testing. It comes from German manufacturer Herrenknecht. While the first TBM drills a seven-metre diameter, 8-kilometre tunnel from Forrestfield to Bayswater, the second TBM will drill the twin tunnel in the other direction. “The TBMs use new dual-mode, variabledensity technology, which is important given the varied ground conditions between Forrestfield and Bayswater,” Saffioti said. “The machines will tunnel under Perth Airport and the Swan River, reaching depths of 25 metres, and the conditions underground on the route are incredibly diverse – ranging from sandy material to clay and rocks, all under water.” The tunnel contract belongs to a joint venture of Salini Impregilo and NRW.
RIO EXPORTS FIVE BILLIONTH TONNE MINING GIANT RIO TINTO HAS CELEBRATED EXPORTING THE FIVE BILLIONTH TONNE OF IRON ORE FROM ITS PILBARA MINE, RAIL AND PORT OPERATION.
he five billionth tonne was exported to Japan’s Nippon Steel & Sumitomo Metal Corporation on the bulk carrier MV Onozuru Maru in May, and was celebrated by executives in Tokyo a month later. “The five billion tonne milestone would not have been achieved without the pioneers who developed the Pilbara more than 50 years ago and the hard work and dedication of the 11,000 Rio Tinto Iron Ore employees running the business today,” Rio’s iron ore boss Chris Salisbury said. “Shipping five billion tonnes is a remarkable accomplishment and it is fitting that it was delivered to Japan, our first customer and valued long-term partner.”
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Salisbury used the opportunity to reinforce Rio’s importance to the Australian economy, with the miner facing ongoing pushes from federal and state politicians over taxes and royalties. “When we began shipping Pilbara iron ore more than 50 years ago we had no idea how important this commodity would become to the Australian economy,” he said. “We are immensely proud of the role we have played in supporting Australia’s economic growth. “Rio Tinto is one of the largest contributors to the Australian economy and our Pilbara business plays a key role in driving this through taxes, royalties, employee wages and local procurement.”
BROOKFIELD COMPLETES 3-YEAR MERREDIN UPGRADE THE COMPLETION OF A TURNOUT INSTALLATION IN THE MERREDIN TOWN SITE ON JUNE 1 MARKED THE END OF A THREE-YEAR UPGRADE OF RAIL INFRASTRUCTURE IN THE TOWN, A MAJOR HUB ON THE EASTERN GOLDFIELDS RAILWAY, WA NETWORK MANAGER BROOKFIELD RAIL HAS SAID.
$3 million upgrade program has been carried out along the track between the Mary and Barrack Street level crossings in Merredin. The work involved the installation of 3000 concrete sleepers, two new concrete turnouts and an upgrade of the Barrack Street crossing. The final turnout installation involved over 30 Brookfield Rail employees and local contractors from Merredin, Northam and the Goldfields, working through a single 10-hour shutdown of the EGR, Brookfield said. The EGR provides western WA with its only rail connection to the eastern side of Australia. It handles around 80% of all containerised
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The first TBM to drill the Forrestfield-Airport Link was named Grace, after pre-primary student Grace McPhee, who is being treated for leukaemia. Photo: Rita Saffioti / Facebook
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freight passing between east and west, and provides regional bulk minerals and grain customers with access to port sites at Fremantle and Kwinana. Brookfield says the Merredin upgrade program was designed to “future proof” EGR operations, with new structures designed to withstand harsh conditions, carry higher axle loads and cater for projected rail traffic requirements. “This will ensure Brookfield Rail can continue to optimise operations and work with customers to improve the supply chain and maximise use of the railway,” the company said in a statement.
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RAIL ASKS, R U OK? AUSTRALIAN AND NEW ZEALAND RAIL COMPANIES HAVE COME TOGETHER TO RECOGNISE THE THIRD ANNUAL RAIL R U OK? DAY, WITH CELEBRATIONS TAKING PLACE ACROSS BOTH COUNTRIES.
he event is a joint effort between rail harm prevention body TrackSAFE and mental health charity R U OK?, aimed at tackling issues of mental health within the rail workforce. R U OK? ambassador and former rugby league star Brett Finch was on hand at a launch event at Sydney’s Central Station on April 19. “I know about the trauma and tragedy that can happen on Australian rail networks,” Finch said. “My father-in-law works on the railway, and I know first-hand the life changing experiences he’s been through and the impact it has had not only on him, but also his family. “If you notice a workmate is a bit off or doesn’t seem themselves, don’t joke or make light of it, because it really could be something important you could help them open up about.” TrackSAFE Foundation chairman Bob Herbert said the event helped the rail industry proactively address the issues of mental health within the sector, and suicides on rail networks around the region. “We strive to create healthy and resilient workplaces by empowering coworkers to support one another and continually check in, asking one simple question: ‘Are you okay?’,” he said. “It is an important opportunity to convince workmates that they can make a real difference to someone who is struggling by having genuine conversations.”
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Contact: www.ruok.org.au, www.tracksafefoundation.com.au All photos courtesy of TrackSAFE Foundation
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OUT & ABOUT
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OUT & ABOUT
RTAA’S SEVENTH FIELD DAY A SUCCESS THE RAIL TRACK ASSOCIATION AUSTRALIA HOSTED ITS SEVENTH FIELD DAY EVENT ON MARCH 1 AND 2 THIS YEAR.
TAA president David Bainbridge thanked all involved in organising the event, in particular Sydney Trains for serving as its co-host and sponsor. “This year, despite some less than ideal weather, we exceeded expectations and had more than 1,500 participants through the gates,” Bainbridge said. “This included young people from schools in the local area – a group that has now become the norm at our showcase event. “The inclusion of young people at the Field Day is important for a number of reasons, not the least being the opportunity to promote careers in rail to a younger audience. ‘Get ‘em while they’re young’ is one of the most successful industry recruitment strategies to ensure longterm sustainable workforces, and we have no qualms in doing just that.” Planning is already underway for the RTAA’s next Field Day, in 2019.
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All photos: Lynne Greenaway / RTAA
OUT & ABOUT
OUT & ABOUT Alstom acquired the Ballarat site in April 1999. Photo: Alstom
COXON CALLS FOR CONTINUED SUPPORT AS
ALSTOM’S BALLARAT SITE REACHES 100 YEARS ROLLINGSTOCK AND RAIL SYSTEMS MANUFACTURER ALSTOM HAS CELEBRATED THE HUNDREDTH YEAR OF OPERATIONS FOR THE BALLARAT WORKSHOPS WHERE IT BUILDS MELBOURNE’S X’TRAPOLIS TRAINS.
he site was opened in April 1917 by Victorian Railways, the main operator in Victoria at the time, in response to pressure from provincial groups calling for decentralisation of manufacturing from Melbourne to regional areas around the state. The workshops were handed over to the State Transport Authority, then the Public Transport Corporation, after Victorian Railways was broken up in the 1980s. Alstom purchased the site in 1999, and celebrated the facility’s 100-year milestone with a ceremony last week. “The Ballarat site is an integral part of railway manufacturing in Victoria and has become the cornerstone of Alstom’s industrial base in Australia,” Alstom’s Australian managing director Mark Coxon said. “The site holds significant importance to our business and we are proud to have delivered Australia’s largest fleet of trains from the site.” Since taking over the site, the France-headquartered manufacturer has received orders from the State Government for 101 six-car X’Trapolis trains – a total of 606 carriages – making it one of the largest fleet of trains in Australia. Coxon said the workshops have been a significant employer over the years, often employing generations of families that have resulted in parents and their children working side by side. He also noted the importance of the facility in supporting and developing apprentices into
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trade professionals, while also supporting a significant local supplier base. “Alstom is committed to manufacturing trains in Victoria for Victoria, ensuring the transfer of technology, supporting local jobs and developing skills,” Coxon said, before urging the State Government to continue working with his business.
“This commitment can only be met with a rolling stock workload that provides a sustainable long term operation. We look forward to continuing to work closely with the Victorian Government to establish a long term plan for the site – well beyond the end of the current build in late 2018.”
The site was initially built to respond to political pressures to move industrial work out of Melbourne, and into Victoria’s regional areas. Photo: Alstom
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TICKETING The contactless bank-card payment system also allows smart phone payment solutions. Photo: Cubic Transportation Systems
(below) Mastercard users will be able to use their bank cards to pay for their Manly Ferry trips under the new trial. Photo: Mastercard
CREDIT CARD TAP-AND-GO A STEP CLOSER IN SYDNEY A TRIAL FOR THE USE OF CONTACTLESS TAP PAYMENTS FROM CREDIT CARDS ON PUBLIC TRANSPORT HAS BEGUN IN SYDNEY, WITH FERRY CUSTOMERS TRAVELLING BETWEEN MANLY AND CIRCULAR QUAY ABLE TO USE THEIR MASTERCARD TO PAY FOR THEIR TRIP.
ontactless card payments is being pushed as the logical next step for Sydney’s relatively new Opal ticketing system, with NSW transport and infrastructure minister Andrew Constance announcing the trial on July 7. Opal card readers on the F1 ferry service, between Manly and the city, have been fitted out to register payments from credit and debit cards, or a smartphone with contactless technology, linked to a credit or debit card account. Mastercard is the only provider currently supported by the new system, however, with other providers set to join over the next year. “From today, anyone catching the ferry with a Mastercard no longer needs to queue for a single Opal ticket and can simply tap on with their card at the Opal gates,” Constance said. “Australia is a world leader in the uptake of contactless payments in the retail secotr so it makes sense to trial this convenience with our transport customers.” Constance said the Circular Quay to Manly ferry route was a key starting point, as 40% of passengers are visitors to Sydney. “It makes sense to provide a convenient solution to those who may not have an Opal card,” he said.
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“And for regular commuters, this is part of the Government’s focus on adapting the technologies of today to make the customer experience easier while testing out this technology for the future.” Ticket pricing will be the same with contactless debit and credit card payments, the minister said. Mastercard vice president of enterprise partnerships Doug Howe said Australians were notorious for embracing digital payment technology, with surveys showing 82% of card users use tap-and-go to make payments every week.
Photo: Cubic Transportation Systems
“This indicates that many recognise the benefits of faster and more convenient payment methods, so it makes good sense to extend this option to transport,” Howe explained. “Mastercard is committed to providing innovative technology to make cities more inclusive and sustainable, as seen in the success of contactless rollouts in other transport networks in global cities such as London, Milan and Singapore.” Opal system operator Cubic, which developed its contactless technology in conjunction with Transport for London while working on its Oyster Card scheme, said the technology has already seen a billion bank card “taps” since its inception in the UK capital. “Contactless offers freedom of choice, providing another convenient option for people using public transport,” Cubic Transportation Systems Asia Pacific managing director Tom Walker said. “The new contactless payment system is an exciting step into the future of ticketing for Australia as it promises greater convenience for commuters, coupled with greater efficiencies for operators.” Cubic was awarded a $12 million contract by Transport for NSW in December 2016, to conduct the trial.
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FEDERAL BUDGET
BUDGET GETS MIXED RESPONSE FROM STATES, INDUSTRY A FEDERAL BUDGET, BY ITS VERY NATURE, IS NOT GOING TO PLEASE EVERYONE. OLIVER PROBERT ROUNDS UP THE VIEWS OF THE KEY PLAYERS, ON WHAT WAS A VERY INTERESTING BUDGET FOR RAIL. he Australasian Railway Association praised Treasurer Scott Morrison’s Budget announcement, with ARA boss Danny Broad calling its plan for rail “bold”. “The Government’s renewed commitment to rail, including through its $10 billion National Rail Program for urban and regional passenger rail, underscores its importance to Australia and is welcomed by the rail industry,” the industry advocate said. Broad was particularly happy with the $8.4 billion commitment to Inland Rail, a project he called “fundamental” to boosting rail freight efficiency over the next decade.
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governments to enact policy reforms to allow Inland Rail to realise its full potential. “To improve the competitiveness of rail freight, the Inland Rail project and linked supply chains will need more than the correct design and construction,” Harding said, “they will require major transport policy reform.” The Aurizon managing director said rail freight companies needed to be on equal footing with other transport modes before they could do more of the “heavy lifting” of the national freight task. “Currently heavy [road] vehicles are charged indirectly by government through diesel excise and registration to recover an historical average of spending on road infrastructure,” Harding explained. “Whereas rail freight operators are charged for access to, and use of, rail infrastructure, with prices that are more cost-reflective and overseen by an independent economic regulator.” National Farmers Federation president Fiona Simson said Inland Rail was the “crown jewel” of the Budget for farmers. “This is a
Federal treasurer Scott Morrison’s 2017 Budget was well received by the rail and freight sectors, but states gave mixed reviews. Photo: Minerals Council of Australia / YouTube
Australian Logistics Council boss Michael Kilgariff also praised the Inland Rail move. “The transformative potential of the Inland Rail project has been talked about for decades, with incremental progress being made over the past several years, including a positive assessment of the business case by Infrastructure Australia,” Kilgariff said. “At long last, we can stop merely talking about this project’s potential, and instead begin to witness it.” Pacific National’s then-chief executive David Irwin said the funding addressed a growing problem Australia could no longer ignore. “We are trying to move too much freight on our increasingly congested road and rail networks along our Eastern seaboard,” Irwin explained. “Inland Rail is a true game-changer and we commend the Government for its commitment to such an important nation-building project.” Aurizon boss Andrew Harding agreed with his competitor’s sentiment, but urged 46
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significant investment in the efficiency of our industry, better connecting our farms with new markets here and overseas,” Simson said. Export Council of Australia chief executive Lisa McAuley praised the infrastructure funding, including the money set aside for Inland Rail, saying: “Ironically, for a country suffering the tyranny of distance, it is often domestic costs that make our exporters uncompetitive.”
Passenger rail program gets mixed reviews
In the west, WA transport minister Rita Saffioti said the state would fight for a significant portion of the $10 billion National Rail Program fund announced by Morrison. “Now that the Federal Government has realised the importance of trains and public transport, it is time they get behind Western Australia’s plan for Metronet,” the minister said on May 11. “Metronet is a transformational project that will revitalise parts of the
city and create better connections to jobs, education and essential services.” The Budget included a $760 million commitment from the Commonwealth to Metronet, outside of the National Rail Program, although this was not ‘new’ money, being reassigned from the cancelled Perth Freight Link toll road. Victorian treasurer Tim Pallas lashed out at the Turnbull Government, after a post-Budget estimates hearing confirmed the 2017 Federal Budget added no new money for the state’s infrastructure. “We said on the night of the federal budget that there was nothing new in this for Victorian infrastructure, and today the federal government has confirmed it,” the state treasurer said. “The Turnbull Government is all smoke and mirrors as it short-changes Victorians and pumps billions into new infrastructure in the Prime Minister and Treasurer’s state of New South Wales.” Victorian public transport minister Jacinta Allan said the news was “further proof” of Malcolm Turnbull’s disregard for the state. South Australian treasurer Tom Koutsantonis slammed the Commonwealth’s infrastructure plan, saying no new funding has been set aside for his state, either. “This Federal Budget completely ignores South Australia in favour of voters in the Eastern states and WA,” the state treasurer said. Queensland treasurer Curtis Pitt was also unhappy. Pitt was quick to point out the National Rail Program did not specify any projects that would immediately receive funding, and raised concerns over a lack of direct funding for Cross River Rail, the Queensland Government’s solution to rail congestion in the Brisbane region. “Scott Morrison is writing undated cheques with no figures filled in,” Pitt said. “Instead of solid funding commitments we repeatedly see a plan for a plan. We have no firm funding commitment for Cross River Rail despite the Turnbull Government already having our business case.” Pitt noted the Budget’s forward estimates only include $600 million of allocation for this National Rail Project, and that funding is not until FY20 and FY21. “The Budget says projects such as Cross River Rail and the Lord Mayor’s Brisbane Metro could potentially be supported through the program subject to a proven business case,” he said. “The Budget also mentions a list of other potential multi-billion-dollar projects such as Adelink, Tullamarine Rail Link, and the Western Sydney Airport Rail Link, so it seems we will need to fight off projects in other states to get even a small share of the new funds. “Yet again other states get direct funding injections but Queensland has to jump through hoops. “Even though they have had our Cross River Rail business case for nearly a year it seems the Turnbull Government is incapable of making a decision.”
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ARA Rail Freight Conference 17 – 18 August 2017 | InterContinental Sydney PRESENTATIONS FROM:
The Hon. Darren Chester MP, Minister for Infrastructure and Transport The Hon. Anthony Albanese MP, Shadow Minister for Infrastructure, Transport, Cities and Regional Development
Mike Mrdak AO, Secretary, Department of Infrastructure and Regional Development Marika Calfas, &KLHI ([HFXWLYH 2É?FHU NSW Ports
Clare Gardiner-Barnes, Deputy Secretary Freight, Strategy and Planning, Transport for NSW Maurice James, &KLHI ([HFXWLYH 2É?FHU, QUBE
Paul Larsen, &KLHI ([HFXWLYH 2É?FHU %URRNČ´HOG 5DLO
Phil Davies, &KLHI ([HFXWLYH 2É?FHU Infrastructure Australia Michael Bailey, General Manager Rail, BHP Billiton Mitsubishi Alliance
Adrian Hart, Senior Manager, Infrastructure and Mining, BIS Oxford Economics Damien White, &KLHI ([HFXWLYH 2É?FHU TasRail
Marion Terrill, Transport Program Director, Grattan Institute Robert Agnew, Commercial Manager - Supply Chain, Woolworths Limited
Samantha Martin-Williams, General Manager Corporate Services & Company Secretary, Hunter Valley Coal Chain Coordinator Peter Reidy, &KLHI ([HFXWLYH 2É?FHU KiwiRail
Danny Broad, &KLHI ([HFXWLYH 2É?FHU Australasian Railway Association
Peter Winder, Executive Director Inland Rail, Australian Rail Track Corporation Priscilla Radice, Ports Business Leader Australasia, ARUP
Ken Keith OAM, Mayor, Parkes Shire Council; Chairman, Melbourne Brisbane Inland Rail Alliance Michelle Reynolds, &KLHI ([HFXWLYH 2É?FHU InterLinkSQ
Brett Lynch, General Manager Queensland, 3DFLČ´F 1DWLRQDO Peter Thomas, Projects Director, Adani
George Bradley, &KLHI 2SHUDWLQJ 2É?FHU Biarri Rail
Bonnie Ryan, Senior Manager, GS1 Australia
Jesse Baker, Safety, Systems and Innovation Manager, Rail Industry Safety and Standards Board
EXHIBITOR
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PLANNING
MAJOR RAIL PROJECTS TABBED
IN IA’S CORRIDORS REPORT A WESTERN SYDNEY AIRPORT LINE AND A PROPER FREIGHT LINK INTO THE PORT OF BRISBANE ARE AMONG THE VITAL INFRASTRUCTURE CORRIDORS INFRASTRUCTURE AUSTRALIA HAS IMPLORED AUSTRALIAN GOVERNMENTS TO PROTECT, IN A REPORT RELEASED ON JULY 7.
nfrastructure Australia’s new report, Corridor Protection: Planning and investing for the long term, argues for the protection and early acquisition of seven corridors identified as representing national priorities. IA believes early moves could save taxpayers close to $11 billion in later land purchase and construction costs. IA chairman Mark Birrell said Australia’s future growth challenges require a long-term vision. “As our cities and regions undergo a period of considerable change, strategically important infrastructure corridors need to be preserved early in their planning to avoid cost overruns, delays and community disruption during the project delivery phase,” he said. “Australia’s governments have an immediate opportunity to deliver an enduring infrastructure legacy to future generations. If we protect infrastructure corridors we will reduce project costs and especially minimise the need for underground tunnelling, where the cost to government and therefore taxpayers can be up to ten times higher than it would have been.” Birrell equated the $11 billion IA believes can be saved through early land acquisitions, as being the equivalent of more than two years’ spending by the Australian Government on land transport such as major roads, railways and local roads. “State and territory governments historically have shown leadership in protecting infrastructure corridors, but more needs to be done now,” he said. “Experience clearly shows that planning the right infrastructure early, timing delivery to meet demand and ensuring it is fit for purpose enhances economic opportunity and delivers the best community outcomes.” He noted the M4, M5 and M7 motorways in Sydney, the M1 and EastLink motorways in Melbourne, and the rail line to Mandurah south of Perth, as good examples where the foresight to protect infrastructure corridors facilitated growth projects. He also described the East Coast High Speed Rail corridor as “the most urgent priority,” an assertion which pleased shadow infrastructure minister – and high speed rail advocate – Anthony Albanese. “Malcolm Turnbull must accept the advice of Infrastructure Australia and begin to secure the corridor for a High Speed Rail Link between Brisbane and Melbourne via Sydney and Canberra before it is built out by urban sprawl,” Albanese said. He criticised the Government for not engaging with a Bill he introduced to create an official Authority to lead the project’s delivery.
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“This remarkable lack of vision threatens the viability of the project, with Infrastructure Australia’s report warning that development is now consuming land along the route,” Albanese said. “High Speed Rail would revolutionise interstate travel, allowing people to travel between capital cities in as little as three hours. It would also turbo charge the economic development of the regional centres along its route”. Australian Logistics Council boss Michael Kilgariff welcomed the overall direction of the report. “Good planning leads to good infrastructure outcomes for the community,” he said. “Preserving the freight corridors to accommodate the infrastructure needed to meet our future freight task lies at the heart of responsible planning policy.”
Photo: Rail Gallery
Corridor protection tackles negative trends
One issue explored in IA’s report is the constant battle underway between the freight industry and residential development. “As our cities redevelop, protecting a range of smaller ‘first and last mile’ links is likely to become increasingly important,” the paper says. “Targeted protection initiatives may be required to facilitate the movement of freight and deliveries in the established parts of our cities.” The issue of urban encroachment is worsened for the freight sector, due to the very nature of what it needs to use the corridor for, the report explains. “Governments must also protect the operational integrity of major infrastructure corridors from undue constraints on their efficient use. “Such corridors are vitally important for the economy and for Australians’ social well-being. “Periodically, communities raise concerns about the operational impacts of infrastructure corridors, especially transport corridors and facilities that cause environmental impacts, such as noise, vibration and air pollution. “The pressure from ‘urban encroachment’ to introduce curfews or otherwise limit the use of corridors is a serious concern for those in the freight and logistics sector.
The front cover of Infrastructure Australia’s new report.
“For example, NSW Ports has identified protecting its ports and intermodal terminals from urban encroachment as one of five key objectives to sustainably cater for forecast trade growth.”
Tunnelling, rural development more challenging over time
Infrastructure development is, of course, a three-dimensional issue, and IA is not ignoring the potential of future projects going underground more often: “Protecting underground corridors for future tunnels will become increasingly important,” the report states. “This is especially important in the established parts of our cities, where building foundations and underground carparks can compromise the alignment of planned projects.” Protecting land from future uses will also become more important in regional areas in coming years, the IA report predicts. “As the use of rural land changes, the risk of land use conflicts is growing,” the report states. “Companies are investing more in rural land to increase the productivity of farms and other rural land uses. Rural land is also being developed for new activities, such as renewable energy generation. “Although the options for locating a rural corridor are likely to be broader than for those in and around our cities, we need to be mindful that any failure to identify and protect some rural corridors could have adverse consequences.” The added benefit of acquiring land now, rather than later, is governments will be able to benefit from rental income in the period of time between acquisition, and the project being developed. “These revenues will at least partially offset upfront acquisition costs,” IA explains. “In the past, governments have pursued this approach, renting properties to interested parties, including previous land owners. Renting out the acquired properties for a productive use also minimises the risk that the community sees the land as an extension of local open space networks.” IA says corridors which have been protected in the past have sometimes been used as open space for a long period, making it harder for a future government to then use the land for its intended infrastructure purpose. www.railexpress.com.au
PRESENTING THE INAUGURAL
RISSB Rail Cyber Security Conference Fundamental education on protecting critical-infrastructure from cyber threats 18 October 2017
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Rendezvous Hotel Melbourne
“The web belongs to the bad guys. The attempt to recover it has only just begun. It won’t be easy.” Sydney Morning Herald, July 4, 2017
RISSB and Informa are proud to announce the inaugural RISSB Rail Cyber Security Conference, to be held on the 18th October, 2017 at the Rendezvous Hotel in Melbourne. From driverless trains to new signalling systems, the Australian rail industry is embracing automation and digital innovation. With new frontiers come new dangers however, and examples from all over the world show us how crucial cyber security has become for critical infrastructure systems. Infrastructure damage, threats to safety, disruptions, economic loss and data breaches are all possible outcomes from compromised operational technology, and it is these outcomes we wish to address. Starting annually from 2017, the RISSB Rail Cyber Security Conference will be the industry event to address all your rail cyber security concerns. In 2017 we will lay a foundation to build upon: detailing what threats are present, strategies that can be put into place, why cyber security is so important and what you can do to help. This will be achieved by open discussion and foundational education, examination of Australian casestudies, analysis from experts in the field, and commentary from leading government agencies and representatives. The Inaugural RISSB Rail Cyber Security Conference will give you the confidence to know that if your systems are compromised, you will know how to respond.
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PLANNING
LIVEABLE ON ARRIVAL: HOW AIRPORT RAIL LINKS UNLOCK CAPACITY AND CONNECT CITIES TO THE WORLD TO THE PRIDE AND DEBATE OF ALL ITS INHABITANTS, MELBOURNE HAS RETAINED THE TITLE OF “THE WORLD’S MOST LIVEABLE CITY” FOR THE SIXTH CONSECUTIVE YEAR. SO WHY CAN’T TRAVELLERS CATCH A TRAIN TO THE AIRPORT? ARCHITECTUS PRINCIPAL MARK VAN DEN ENDEN DISCUSSES.
espite full marks for infrastructure in the EIU’s full liveability report, Melbourne’s capacity is set to burst. By 2033, an annual 60 million people are projected to arrive or depart from Melbourne Airport, which is still (almost incomprehensibly) accessed entirely by road. After decades of deliberation and hesitation, $30 million in federal funding has been committed to Melbourne’s first airport rail link. The proposed connection from Melbourne’s CBD poses unimaginable benefits to a city whose growth has most certainly begun to outweigh its capacity. But the Victorian capital’s case is not a wholly unique one – and raises questions about the future of mass transit and the total journey experience in an increasingly autonomous and integrated world. Working on the designs of major Australian rail projects through Architectus, including Canberra’s Capital Metro, Sydney’s Parramatta Light Rail and the Gold Coast Light Rail, we’ve learned first-hand the transformational impact great rail design can have on a city. Here are some of the key considerations I see for Melbourne:
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Runway + Rail = Real Connection
Well-designed airport rail links are pivotal when it comes to connecting cities – and connecting within cities – now and for the future. But the need for private and governmental investment in scalable infrastructure is old news: every year since 1990, two new airport rail links have been implemented in airports across the globe. In fact, 83% of the world’s busiest airports are set to have rail links in place by 2021. Surely, in the world’s most liveable city, the absence of an airport rail service reveals a stark gap in critical infrastructure, especially as Melbourne’s population continues to soar? Road-widening initiatives and expanded bus services, whilst effective in temporarily increasing capacity, serve as band-aid solutions. At its core, an airport rail link does exactly that: it provides an alternative transport option with the opportunity to offer commuters certainty around travel times. Positive user experiences are centred on choice – the more choices you have, the better the outcomes. We cannot sustainably rely on singular modes of transportation. True flexibility comes with a broader network of arteries connected to the city’s heart.
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Photo: Rail Gallery
Distinctive arrivals create a sense of place
Providing a seamless connection into the CBD is one thing, but the arrival experience is another: in Hong Kong, you can check into your flight at the train station. The paradigm has shifted. Arrival or departure experiences no longer need to occur at the airport, but can occur in the CBD itself. This is a critical step towards cultivating memorable, captivating and uplifting arrival experiences. Integration is also the key to the total journey experience. Technologically, the integration is there, but it needs to extend to all points of traveller contact. We as design professionals need to address the questions that arise out of this: what’s the journey experience? How can we connect experientially? How can we make these connections sequential and seamless? At Architectus, the total journey experience is always our primary focus. Translating commuter needs into tangible design outcomes requires immersive testing, through virtual reality or often 1:1 scale prototypes of infrastructure environments with the support of specialists, including behavioural psychologists, human factors experts and customer-centred design.
The future is in the design
Ultimately, it’s not just about roads, rails, cars and trains: the design of new infrastructure must be centred on easy, friendly and memorable user experiences – after all, its users are people, not robots (yet). Capacity and frequency of airport rail link infrastructure is vital for quality commuter experience. In peak hours, capacity to accommodate an increased proportion of travellers is vital. User-friendly, memorable design that puts the traveller’s needs first is the only sure way to meet a growing and changing population’s needs. In this regard, way-finding plays an increasingly integral role. Designs that don’t need signage are ones that harness natural, intuitive flow with human behavioural at its core:
we naturally gravitate to light. Designing airport links with subtle or subconscious visual clues removes the need for large volumes of passengers to stop and scour their screens for directions. Increasingly globalised populations and diverse tourist demographics call for design that also transcends language. If we cannot design something innate, we cannot realise something experiential.
Where does technology come into play?
Our modern, tech-driven society poses further obstacles. How do you ensure that peoplemoving infrastructure accommodates a perpetual engagement with a lowered smartphone screen? The introduction of technological companions into the travelling mix significantly interferes with the perceived notion of people flow. Already, street-level traffic light testing is underway in Melbourne’s CBD (after similar initiatives to accommodate screen-distracted walkers decreased South Korea’s pedestrian fatalities by 40%). But our road and footpath network is already at capacity. In a world of other-worldly technology like driverless cars and passenger drones, is rail the answer?
Driving it forward
How do we revolutionise our ability to move people, whilst fuelling the economy? Discussions like these are a vital first step, especially for cities like Melbourne which faces unparalleled growth pressure, exacerbated only by the need for an alternative airport connection. With new federal support and the right design, the Melbourne Airport Rail Link will create a transport legacy that enables future generations to travel with ease – without the environmental, engineering and time constraints encountered with congested freeways. It is a wonderful opportunity to design a significant piece of infrastructure that serves residents and visitors alike. At the same time, we can showcase and celebrate our truly distinctive and liveable city. Mark van den Enden has over 18 years’ experience working on complex large-scale rail and infrastructure projects. Contact: www.architectus.com.au Image at top courtesy of Rail Gallery
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Q&A
NEW ZEALAND
REIDY REFLECTS ON BUSY POST-EARTHQUAKE STRETCH THE KAIKOURA EARTHQUAKE HIT IN NORTH CANTERBURY, ON THE EAST COAST OF NEW ZEALAND’S SOUTH ISLAND, EARLY IN THE MORNING OF NOVEMBER 14, 2016. KIWIRAIL’S RESPONSE SINCE THEN HAS EARNED THE NETWORK OPERATOR THE AUSTRALASIAN RAILWAY ASSOCIATION’S 2017 FREIGHT RAIL EXCELLENCE AWARD.
ccepting the award in July, KiwiRail chief executive Peter Reidy said the rebuild of the Main North Line had been the biggest rail project on the South Island since World War II. “We’d like to thank our customers for their support and patience over the last eight months,” he said. Reidy spoke with Rail Express about how the joint team has managed the crisis, and how it is working to potentially limit the damage caused by future seismic events.
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REX: What was the total damage done to your network by the Kaikoura earthquake? Peter Reidy: There were 36 major damage sites along the rail network, which included tunnels, bridges and embankments. The rail line was buried under more than 90 slips and landslides, and it severely damaged five bridges. There were overall about 750 items of structural damage.
for them. They were very supportive, and they gave us good feedback in terms of what they had to do. And in the first week we had to start looking at Plan B scenarios, like coastal shipping. How could we turn coastal shipping on? What was the demand for coastal shipping? We had to get the ferry link-span at Centrepoint Harbour in Wellington fixed, and then we had to make sure the other terminal, in Picton, was safe. It took us about a week to make sure that the ferry infrastructure was safe to use, and then we got three ferries up and running pretty quick.
REX: So to call the week after the quake ‘busy’ would be a bit of an understatement. PR: Yes, people were working around the clock, and there was significant effort from our people to get out in the field, and visually inspect the damage.
That recovery team is certainly, in our view, driving the program milestones very hard. NCTIR is responding extremely well to the pressure to try and open the rail, in a soft way, before Christmas. So it’s pretty positive in terms of what’s happening, and there’s been great engagement. The joint venture’s working very well together.
REX: Is there anything that can be done to minimise this sort of damage in the future?
PR: There’s a number of things you can look at in terms of the embankments; preventing any slips, preventing any rock-fall. It’s really around slope stability risks. When you deconstruct the slips, you focus on removal of all the fractured rock from the slip-faces, and that includes extensive sluicing (helicopters dropping water). Then we make sure we have special mesh installed to improve stability, or what they call rock bolts. And you’re effectively doing that to provide stability.
REX: What are KiwiRail’s actions the moment something like that occurs?
PR: It hit on the 14th of November, 2016 at 12.02am. We’ve got a pretty descriptive crisis management plan, so by 5.30am, we’d already had a crisis management team appointed, and we had a recovery centre set up that day. The first thing we had to do was make sure our people were safe, and could we get them out. There were two trains operating on that section, and we knew where they were but we didn’t initially know where the drivers were. We recovered them, and got them out by 11 o’clock in the morning. There was a briefing with the executive by 9am. And then there were twice-daily joint briefings with the minister of transport, including the New Zealand Transport Agency, for about the first three weeks, plus briefings with our board every second day for the first month. Then overall, for me, it was about making sure we had the resources to man the recovery centre, and we’d appointed people into roles, to identify the state of the damage. It took three weeks to really have inspected the network and the tunnels, but in the first ten days we had a good collection of data, we were sharing that data with NZTA; within ten days we were starting to get an assessment of the size of it. On day three we had a forum with customers. We brought the key freight customers together, to share with them the information we had, and to understand the implications www.railexpress.com.au
KIWIRAIL CHIEF EXECUTIVE PETER REIDY IS PROUD OF HIS TEAM, AND THEIR ALLIANCE PARTNERS, FOR HOW THEY’VE RESPONDED TO THE KAIKOURA EARTHQUAKE. Photo: KiwiRail
REX: How would you assess the current state of the recovery?
PR: There’s a very good team, called NCTIR (Noth Canterbury Transport Infrastructure Recovery): a joint venture, between three contractors, NZTA, and KiwiRail, which has been set up to reconstruct the road and the rail. KiwiRail have two members on that board. It’s an integrated approach to rebuilding road and rail. It’s progressing extremely well. It took probably three months to get mobilisation and people to the site, but now it’s really starting to show strong momentum. We’re looking to get roads open by the 15th of December, and we’re looking to get rail open before then, as what we call a Phase 1 opening.
They’re also working to shift the railway away from the slips, when they can. They build rock catchment fences. We’re building a few rock-fall shelters, particularly near the tunnel portals. And the team are putting in place slip-monitoring technology, designed to provide an alert before the trains and staff are put at risk. Then you manage it, also, through speed restrictions on the track, and effectively building bridges over the landslide debris-affected areas. Because in a lot of these areas you can’t remove the debris, you’ve just got to build around it. NCTIR have a good integrated risk register, and a pretty clear view of the risks which need to be addressed; the priority being around the safety of people. RAIL EXPRESS | ISSUE 1 2017
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NEWCASTLE AGRI TERMINAL BOSS
UPBEAT ON PROGRESS
AFTER ITS FIRST FULL YEAR OF OPERATION, NEWCASTLE AGRI TERMINAL EXECUTIVE DIRECTOR JOCK CARTER IS UPBEAT, WITH HEALTHY VOLUMES, THE ADVENT OF ‘MEGA-TRAINS’, AND VARIOUS TECHNICAL INNOVATIONS.
ast year was the first full season of operation since the terminal was commissioned and we are very happy with the result, shipping just under 600,000 tonnes for the 2015/16 grain season,” Carter, a co-founder and part owner of the terminal, told Rail Express partner magazine Australian Bulk Handling Review earlier this year. “We have capacity booked through to September 2017 with a target of exporting 900,000 tonnes for the 2016/17 season.” The Newcastle Agri Terminal (NAT) has chalked up a number of firsts. In December 2015, it organised a ‘mega train’ carrying 5,000 tonnes, compared to a historical train size of 2,000 tonnes. A year later, in December 2016, in cooperation with the Australian Rail Track Corporation (ARTC), NAT organised the first paddock-to-ship trains of chick peas from Moree to Newcastle, with two 3,000 tonne trains. In its first year of operation, NAT exceeded the industry standard train size by nearly 50% from 2,000-2,200 tonnes per train, to 2,8003,000 tonnes. In terms of its technologies and infrastructure, Carter observed that “the Siwertell shiploader and cascade chute are achieving load rates of up to 2,000 tonnes per hour and the dust control system is working well. “We were the first grain terminal in the world to install fumigant recapture utilising the Nordiko carbon recapture system. Our new road receival and container packing facilities are commissioned and operational. “The rail receival facility designed by Lindsay Dynon with InterSystems handling equipment
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is working well, discharging full trains in less than two hours.” Going back in time, NAT made its first shipment – of 28,000 tonnes of durum wheat – in February 2014. The cargo was loaded onto the North Princess, destined for Algeria on behalf of the Australian Durum Company (ADC), part of the Graintrend Group. At the time, ADC director Peter Howard said “Graintrend is excited about the prospect of exporting bulk vessels of chickpeas from NAT as this was not possible from Newcastle previously,” Construction at NAT was completed in August 2013. At that time, the facility comprised NSW’s second grain export facility
Loading at 1,800 tonnes per hour.
and the first major grain port development in the state in more than 25 years. The terminal is located on what was vacant port-zoned industrial land at Carrington. It uses existing rail infrastructure and shares access to the Dyke No.2 berth. NAT features 60,000 tonnes of storage (comprising two 20,000 tonne and three 6,780 tonne silos) and has the capacity to unload trains and load large vessels at 2,000 tonnes per hour, thanks to its shiploader, which features a Cleveland cascade chute. The goal for NAT then and now is to provide greater independent export access to grain growers in northern NSW. “We believe this project is a great example of the ‘working port’ concept where Australian growers achieve more efficient access to export markets with minimal impact on local portside communities,” Carter said. NAT is operated by CTC Terminals, a business headed by Carter and Martin MacKay. Investment for the project, which cost roughly $28 million, came from CTC and three grain exporters: Glencore Grain, Olam (now Agrex via its 2014 JV with Mitsubishi) and CBH Grain. “We are fortunate to have a great team of investors,” MacKay said, “who have a real interest in introducing innovation and efficiency to the grain supply chain. However, it’s a testament to our position as an independent service provider that our first customer, ADC, was not one of our investors.” Newcastle’s other grain export facility, operated by GrainCorp, is significantly larger than NAT — capable of storing as much as 188,240 tonnes of grain for export at any one time. www.railexpress.com.au
GRAIN (main image) Newcastle Agri Terminal.
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THE CHALLENGE FOR THE GRAIN INDUSTRY IS HOW DO YOU GET MORE GRAIN PER TRAIN? NAT executive director Jock Carter.
But the new terminal should promote competition, and MacKay believes NAT has the potential to reinstate Newcastle as the key export facility in eastern Australia. “Competition and increased efficiency has a ripple effect right up the regional supply chain,” he said. Alluding to GrainCorp, he added “If you have one company that controls the ports, and because it is a cornerstone of the supply chain, it makes it very difficult for other people to invest in the rail resources or the up-country facilities. That is because you are always beholden to a monopoly competitor. We think the NAT will encourage innovation and investment.” Carter said NAT can accommodate both large and small customers. “At the end of the day we are very happy to tailor different sized solutions for different sized markets. We are effectively open to anyone who wants to export grain out of the country. Bulk traders will have different requirements to somebody who wants to market a niche variety.” Newcastle’s export capacity is limited by rail capacity, Carter said. Investing in larger locomotives and wagons, up to 7,000 tonnes, should deliver operators better economies of scale, he explained. Locos for grain haulage are typically older, twenty years or more, while the newer locos usually used for coal haulage are more powerful. GrainCorp uses relatively small 2,200 tonne rail wagons which are unloaded at a single receival point. “The challenge for the grain industry is how do you get more grain per train? A train, no www.railexpress.com.au
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matter the size, takes up the same amount of network capacity regardless of its size. “The current grain train into Newcastle hauls 2,200 tonne wagons and the current average coal train is 6,000-7,000 tonnes.” Carter explained that investing in larger wagons “ties up more capital, but will deliver a far more efficient operation too”. At the end of 2015, a 73-wagon, five-locomotive train arrived at NAT loaded with more than 5,000 tonnes of grain. Almost twice the length of a standard NSW grain train, and carrying nearly two-and-a-half times the tonnage,
the 1,250-metre train was believed to be the longest export grain train in Australian history. Carter said the achievement was the result of six years of development at the terminal. “Bigger trains means increased efficiency and lower costs, which equals better returns for growers,” he explained. “It also frees up capacity for other users of the rail network.” The train was loaded with wheat from a collection of north west NSW growers at Louis Dreyfus facilities in Moree and Narrabri. It unloaded in one pass on a continuous balloon loop at the terminal. Its passage to Newcastle was made possible thanks to work by the ARTC and the port, Carter explained. “ARTC worked with us to increase the axle load from 20 to 23 tonnes for this train,” he outlined. “This may sound small but this translates into a real saving of over $1.30 per tonne. “The Inland Rail upgrade will further increase this to 25 tonnes. This then justifies investment in new, more productive grain wagons which leads to further cost savings.” ARTC boss John Fullerton said the network from Newcastle to Moree provided growers with a key cost-effective solution for transporting their product. “We have dedicated train paths ready and available to help growers get their product to market,” Fullerton said, “and through heavier, more productive trains and improved cycle times, we can help increase farm gate returns and make the entire supply chain more efficient.” Carter praised Louis Dreyfus and Newcastle Agri Terminal shareholder Agrex – a division of Mitsubishi – for committing the exporter support to make the mega-shipment possible. “These exporters have generally been posting higher prices at up-country sites which demonstrates how larger trains and lower costs translates into higher returns for the farmer,” he said. CONTINUES BOTTOM OF PAGE 55 u
Silos at Newcastle Agri Terminal.
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GRAIN Tubeveyor feeding direct to wagons.
TUBE CONVEYOR DELIVERS MAINLINE LOADING FROM HUNTER FARM THE AUSTRALIAN RAIL TRACK CORPORATION SAYS IT HAS EXECUTED ITS FIRST ‘DIRECT FROM FARM’ MAINLINE TRAIN LOADING EVENT AT MILGUY IN NORTHERN NEW SOUTH WALES’ GRAIN BELT, THANKS TO AN INNOVATIVE LOADING SOLUTION.
he ARTC says the innovative mainline loading solution is the first of its kind on the Hunter network. Through the use of a customised Tubeveyor, the ARTC says a large local farmer has slashed freight costs, and demonstrated the kind of flexibility being explored by ARTC in the rail industry. “This week we have had trains literally arrive at the farm gate loaded direct from the paddock to the wagon,” ARTC executive general manager for the Hunter Valley Jonathan Vandervoort said. “This has all come about thanks to some local ingenuity and a close working relationship between farmer and the supply chain – and as
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result we will see tens of thousands of tonnes of farm produce loaded direct from the paddock into the wagon.” The farm in question belongs to the Boolah Partnership, which predominantly grows broad acre crops producing barley, wheat, sorghum, legumes and cotton. The ARTC said the Partnership has invested extensively in local farm storage and loading facilities enabling them to directly load into grain wagons at a rate of around 600 tonnes an hour with the Tubeveyor. “With one wagon loaded roughly every six minutes without additional loading or handling in between, and leveraging our own on-farm
storage, our supply chain costs have been dramatically lowered for this delivery,” Boolah’s part-owner Stuart Tighe said. “We are looking at a minimum of $5 per tonne being saved through this approach – this massively alters our logistics cost base and sets a template for how we do things in the future.” Boolah’s southern operations manager Sam Conway said that with the scale and volume of the Boolah Partnership operation, and being close to both a rail siding and the main railway line, they have always been keen to see how they could leverage rail better. u
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GRAIN
Tractor and grain bin.
“Rail is by far the most efficient and cost effective transport mode for farmers, if done right – and in recent times working closely with ARTC we have been able to realise the opportunity,” Conway said. “We have a big focus on how we can work directly with producers and the supply chain on looking at ways we can help rail ‘work’ for our customers in different markets,” Vandervoort added. “With farmers, this is about understanding their cost drivers, looking at the broader supply chain and infrastructure capability and seeing what we can do to improve productivity through rail for them. “By collaborating with Stuart and [co-owner] Lyndall [Tighe] and tapping into their innovation and drive – you can realise a different way of doing things and demonstrate the kind of flexibility rail is able to offer.
“This is an important signal from us, asking farmers to see rail from a different perspective, and understand there are a variety of ways that rail can be utilised by the farming community.” The first trains will contain chick peas heading for the international market (largely South Asia). Later, Boolah-produced barley will be railed to Minto for processing at a malting plant prior to use by brewers. “While this particular supply chain solution may not be the answer for every farmer – and is highly dependent on volume and the nature of the rail network – it demonstrates we are serious about making rail work for all of our customers,” Vandervoort said. This article originally appeared in Rail Express affiliate Australian Bulk Handling Review.
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He called on all levels of government to support innovation in road and rail freight to deliver productivity gains to growers across NSW. “As well as upgrades to strategic sections of regional track, road infrastructure and access improvements are needed to streamline the connectivity from farm gate to major rail interchanges.” Then Federal minister for infrastructure and regional development Warren Truss said the mega-train demonstrated the massive opportunity for grain producers to save transport costs using rail. “The size of this train more than doubles the payload capacity of the standard grain train that currently runs through the Hunter Valley network,” Truss said. “In simple terms, the increase in payload means at least a $5 to $10 a tonne reduction in hard costs for the grower – a massive saving.” www.railexpress.com.au
Port of Newcastle chief executive officer Geoff Crowe said facilities at the port could help the agricultural sector take advantage of larger trains. “Port of Newcastle is the largest bulk shipping port on the east coast of Australia providing grain marketers and growers with modern storage and export facilities to take greater advantage of growth in Asia,” Crowe said. “The Port of Newcastle is well positioned to support the growth of NSW’s grain trade, with plenty of capacity in the rail networks to the port, multiple grain terminals for ship loading and a shipping channel that can handle double the port’s current total trade.”
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RAIL IS BY FAR THE MOST EFFICIENT AND COST EFFECTIVE TRANSPORT MODE FOR FARMERS, IF DONE RIGHT – AND IN RECENT TIMES WORKING CLOSELY WITH ARTC WE HAVE BEEN ABLE TO REALISE THE OPPORTUNITY. Boolah Partnership southern operations manager Sam Conway.
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Australian Logistics Council boss Michael Kilgariff said longer, more efficient and more powerful trains travelling across the network had been made possible through investment in new rail infrastructure. “[Investment] has improved axle loads and increased the amount of freight that can be shifted by rail which can deliver significant advantages to businesses, particularly agriculture,” Kilgariff said. “Added to this, the ARTC has also worked hard to improve rail reliability, which is a critical factor when businesses weigh-up the composition of their national supply chains. “The record making trip is, I hope, the sign of things to come when it comes to the movement of agricultural products from rural and regional areas to ports.” This article originally appeared in Rail Express affiliate Australian Bulk Handling Review.
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PRODUCT PROFILE
SCHAEFFLER PUSHING MANCRODUR STEEL FOR HEAVY RAIL BEARINGS PRECISION BEARING MANUFACTURER SCHAEFFLER IS COMBINING ITS PROPRIETARY MANCRODUR STEEL WITH A CARBONITRIDING CASE HARDENING PROCESS, TO CREATE ITS NEW HIGH-CAPACITY TAROL CLASS K (HCT-K) TAPERED ROLLER BEARINGS FOR HEAVY RAIL USE.
chaeffler Australia told Rail Express the Mancrodur steel and carbonitriding case hardening process creates roughly 30% higher load-carrying capacity, compared with standard case-hardened steel.
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Graph depicting the increased reliability of Mancrodur carbonitrided bearings compared with standard alternatives. Graphic: Schaeffler Australia
The manufacturer says the greater surface hardness not only leads to increased load capacities and lower total cost of ownership, but also improved ductility. As a result, the nominal rating life of its HCT-K bearings is twice as long, Schaeffler’s HCT project manager Alexander Kabe said. “Even when subjected to extreme loads and shocks, this bearing consistently demonstrates its high-performance capabilities,” Kabe told Rail Express. “Compared to the case hardening steel that is typically used in these applications, we are seeing significant performance gains with bearings made from Mancrodur.” Schaeffler says its engineers have also added a number of other features to ensure the HCT-K bearings can be relied on to handle millions of kilometres of use in heavy goods traffic. Innovations include an inner ring that is heat stabilised up to 200°C, a cage made from glass fibre-reinforced polyamide, and a bearing
Schaeffler’s HCT-K bearing, which features its proprietary Mancrodur steel, in combination with a carbonitriding case hardening process. Photo: Schaeffler Australia
assembly that is fitted with extremely low-friction cartridge seals. The bearing also features a support ring, designed to make the mounting process more reliable and efficient. The carbonitriding process used to make the bearings generates fine carbides and carbonitrides that are evenly distributed throughout the material, resulting in a raceway surface that is harder and more resistant to wear, the manufacturer says. In addition, the heat treatment process increases the ductility of the raceway surface, making the material is less sensitive to contamination-induced overrolling. Contact: railway.au@schaeffler.com
GRAIN HANDLING
BRISK BUSINESS FOR QUATTRO SINCE FORMATION DENE LADMORE, TERMINAL MANAGER OF QUATTRO PORTS AT PORT KEMBLA, NSW, UPDATED RAIL EXPRESS PARTNER MAGAZINE AUSTRALIAN BULK HANDLING REVIEW ON PROGRESS AT THE SITE SINCE IT WAS COMPLETED IN MARCH 2016.
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to handle in excess of 1.3 million tonnes of export grain per annum plus the ability to also handle import cargo. The project includes an upgrade to berth 103, construction of new grain bulk storage and rail discharge facilities, conveyors and a mobile ship loader. The facility was completed in March 2016. Quattro’s design allows for other agriproducts to be both imported and exported through the facility. The terminal was constructed by Kerman Contracting and
This article originally appeared in Rail Express affiliate Australian Bulk Handling Review. Photo: Quattro Ports
ince March 2016, we have loaded in excess of 400,000 tonnes in both handy size and panamax vessels,” Ladmore explained. “The terminal handles predominately wheat, with some barley and canola. The catchment area for the grain is the central and south western regions of NSW. “The 2017 harvest continues to look very promising for export port terminals and Quattro Ports is well positioned to support our clients’ delivery of large volumes of grain and oilseed to their export customers. Our staff are well trained, our terminal is well maintained and our management team are driven to provide the best possible service.” Quattro is an incorporated joint venture between COFCO Agri, Qube, Emerald Grain and Cargill Australia. The Port Kembla operation is an openaccess terminal which provides grain export opportunities to all grain traders and exporters in the New South Wales grain market. The Quattro facility is specifically designed to receive grain by rail and utilises the existing Inner Harbour rail sidings. It has the capacity
included significant input from local Illawarra and NSW sub-contractors. Quattro has ten x 10,000 tonne and nine x 2,000+ tonne capacity vertical silos. Construction involved: dredging of approximately 120,000 cubic metres to increase berth depth to 14.5m; extension of berth 103 to handle vessels up to 225 metres in length; installation of rail receival hoppers and an overhead covered conveyor to link the existing rail siding to the new silos; and installation of a 1,500 tonne per hour capacity out loading conveyor to connect to a mobile ship loader.
The Pedhoulas Rose, the first panamax loaded at Quattro, and the first vessel loaded with canola.
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PLANNING
BY NICK GORDGE, AURECON
IS THE BUREAUCRACY OF DEMOCRACY BOGGING DOWN OUR FUTURE? peaking of his approach to building, the much-venerated 19th-century British engineer Isambard Kingdom Brunel said, “I am opposed to the laying down of rules or conditions to be observed in the construction of bridges lest the progress of improvement tomorrow might be embarrassed or shackled by recording or registering as law the prejudices or errors of today.” He didn’t mince his words. As one British barrister puts it, if Brunel were alive today the construction industry wouldn’t touch him with a bargepole. But could there be some merit in Brunel’s radical view on the subject? What if we took some of the red tape out of the construction equation and created a less cumbersome bureaucratic process that doesn’t bog down development?
the cut and the end result is a plan that has in effect already been approved.
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Shifting the focus
Using a modular method, Chinese prefab construction firm Broad Sustainable Building, two years ago built the rectangular, glass and steel Mini Sky City in a mindboggling 19 working days. At the back-end of that process of course was the four-and-a-half months the company spent fabricating the building’s 2,736 modules before it could begin construction. We often see design and construction phases being accelerated, and construction is often fast-tracked, so even if we employed more efficient building processes and used a just-in-time construction approach, we would still only be able to reduce a small part of the overall project life cycle. The largest part of the project cycle is preimplementation; from conceptualising the problem and developing the business case during the initiation phase, to wrapping up the planning phase, which includes community engagement, getting project approval and planning permission, not to mention a host of other approvals. Quite often, the pre-implementation phase takes months and even years, meaning that we are building infrastructure years after the need arose and, by this time, the challenges it was envisaged to solve are either far worse or, even more concerning, irrelevant. We need to turn the process on its head.
Democracy in the best sense of the word
In the wake of the digital revolution of the 20th century, the world has been hurtling forward at breakneck speed. Governments and industry have been racing to meet the very real challenges presented by the rapidly increasing demand for infrastructure development. But the industry’s hands are tied to a large extent by the lengthy review processes stymieing progress. 58
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The future should loom larger
Graphic: Aurecon
In the US, for instance, a trillion-dollar infrastructure plan will necessitate a reworking of a protracted federal review process. Projects invariably get delayed during the environmental review process; building a new highway can take anywhere from nine to 19 years. It’s a catch-22: democracy has given people a voice – people who pay taxes and in turn expect service delivery, but understandably want a say in the shape and form those services taken. Unfortunately, as demonstrated in the case of the US, the process is fatally flawed. As a consequence, service delivery is severely impacted – and the end result is an unhappy citizenry and lost economic benefit.
Turning the process on its head
Checks and balances are critical, but it’s counterintuitive to have these carried out at the end of a costly design process. In a 2014 report, the Australian Academy of Technological Sciences and Engineering notes the importance of “earlier richer community engagement and deliberation on processes for infrastructure development and delivery” which would “result in greater community acceptance of and hence faster and more successful completions of infrastructure projects”. The Asian Development Bank’s (ADB) Meeting Asia’s Infrastructure Needs report projects the infrastructure needs for 32 of the ADB’s 45 developing member countries. In its report, it emphasises the importance of a wellfunctioning, multi-stakeholder institutional “ecosystem” for infrastructure development. “Close coordination across government levels – national, provincial, and local – is essential for infrastructure development,” reads the report. If the regulatory mechanisms and public engagement were initiated at the outset of a process, it would influence the design from the very beginning. An oversimplified version of the approval process would look something like this: both government and the public are canvassed for comment; that data is then fed into a parametric design process which produces several optimal design scenarios based on the feedback; the best fit makes
The painting that hangs in a corner of Room 34 of London’s National Gallery is a picture of dull light and dark contrasts. Set against a backdrop of gloomy, overcast skies, a train – a blur – steams across Maidenhead Railway Bridge over the River Thames. The bridge depicted in English romanticist painter William Turner’s Rain, Steam, and Speed – The Great Western Railway forms part of Brunel’s most ambitious project; a network of tunnels, bridges and viaducts for the Great Western Railway. The railway transformed travel, pitching Britain into the industrial age and reducing the two-and-ahalf day journey from London to Bristol to two-and-a-half hours! Turner’s painting was a statement on the ascendancy of man-made industrial society – but can we afford a debate over the rapid advances being made today? Urban populations are expanding at full tilt – and with them a steep escalation in the demand for infrastructure and technology. The ADB’s report estimates the infrastructure needs for 32 of its developing member countries will require an investment of a whopping $26-trillion over the period from 2016 to 2030, including the cost of climate mitigation and adaptation. Well over a century-and-a-half after Turner’s painting was first exhibited, the question we have to ask is: what are we going to do to ensure that tomorrow’s infrastructure meets tomorrow’s needs instead of merely addressing yesterday’s problems? It’s a discussion engineers need to lead if we hope to see the world prepared for a future advancing towards it at a dizzying pace. Safeguards are important – but so is the opinion of the experts. But this hinges on trust. In the same way that we entrust our wellbeing to medical experts, we need to trust professionals in the built environment to do a brilliant job of designing and constructing sustainable, economically viable, future-ready cities. This means rethinking the way we do things. Massive financial outlays are required to develop infrastructure in both developed and developing countries worldwide – the ADB case is merely one such example. Do we really want to play it so safe that those financial outlays only just meet our current needs? Or do we need a touch of Brunel-like chutzpah mixed with a whole lot of innovation? It’s those cities willing to take the risk that will be at the forefront of the next revolution. This article came from Aurecon’s blog Just Imagine, which aims to provide a glimpse into the future for curious readers, exploring ideas that are probable, possible and for the imagination.
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A new railway for Australia’s biggest city Sydney Metro is Australia’s biggest public transport project. The Sydney Metro West project is proposed to deliver a direct connection between the CBDs of Parramatta and Sydney, linking communities along the way via Sydney Olympic Park and The Bays Precinct.
KEY Parramatta
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Industry Engagement has started Sydney Metro is seeking input from across all industry sectors both locally and internationally, to ensure a market led and innovative approach in the project development.
Interested parties are invited to register to participate in the Industry Engagement process taking place between 25 September and 27 October 2017. Registrations of Interest close on Friday 1 September 2017.
This engagement includes helping define the project to meet transport and land use outcomes and market sounding on how the project could be delivered.
For a registration form, contact the Industry Engagement Team at industry.sydneymetro@ sydneymetro.info or visit the website https://www.sydneymetro.info/industry
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