2015

Aurizon double-stacked intermodal train. Photo: Aurizon
 Freight Rail, Safety, Standards & Regulation, Mark Carter

It’s a hard, hard road we travel

COMMENT: Recent comments from Aurizon CEO Lance Hockridge highlight the fact that the current road user charging system still results in the lack of a level playing field for freight transport and that its reform remains a key issue for the rail industry, but this, Mark Carter explains, is nothing new.

According to reports in the Brisbane Courier Mail, Aurizon Chief Executive Lance Hockridge told the company’s November AGM that the Federal Government had to end the unfair advantage that trucks held over rail in getting goods to market.

The article suggests that Aurizon wants to expand its intermodal freight operations to reduce reliance on coal and iron ore and at the same time wants a more level playing field against road transport.

Has the penny finally dropped for Aurizon?

After several years of almost blind reliance on coal revenues to support its business, and dabbling in iron projects while seemingly turning its back on other freight flows, are there now signs that the tide may be starting to turn?

Aurizon is a joint venture partner with Qube Holdings in the Moorebank intermodal freight facility southwest of Sydney, which when on line in a couple of years’ time will be the largest integrated warehouse rail terminal in Australia.

The company is now investigating further intermodal opportunities as it faces a sluggish global commodities market and of late has been investing heavily in new locomotives and rolling stock for its interstate intermodal operations.

But Hockridge said that for such intermodal projects, as well as bigger projects such as the proposed Brisbane to Melbourne Inland Rail to be financially viable, governments had to change their policy settings.

“There are many benefits to getting more trucks off the road and more freight onto rail but the right policy settings have to be in place,” Hockridge said.

He said that while rail freight operators paid a direct user charge to access infrastructure, truck operators primarily pay for road use through fuel excise.

The combination of low increases in excise and improved fuel technology means heavy vehicle operators are paying less in real terms for the access they are getting to improved infrastructure that delivers them a commercial benefit.

He added there was a need to implement road pricing for heavy vehicles where direct user charges genuinely reflect the cost of infrastructure, its maintenance and expansion, and ultimately, drive the best investment decisions.

Now while this is all music to my ears, there are a couple of issues with this approach that do make me squirm in my seat a little.

It is now well over 20 years since the small community based lobby group I was involved in, Rail2000, started calling for changes to Australia’s heavy road transport pricing regime – and let’s face it, while this is something the industry has been calling out for since then, there has been  precious little change over that time.

A similar call to that made by Hockridge was also repeated on more than one occasion at AusRAIL last month. I am sure the same issue was raised at the very first AusRAIL back in the mid-1990s. The more things change, the more they remain the same.

In order to bring about a change in road pricing, the rail industry obviously needs a strong lobbying voice. Some would argue that the fact that nothing has happened in this area demonstrates a failure of the industry’s main voice, the Australasian Railway Association (ARA).

It could also be argued therefore that changes are required within the organisation, and with a new CEO at the helm would seem to be the ideal time to embark on a new campaign in this direction.

But rather than strengthen the ARA at this time there are continued rumours within the industry that some of the major players within the industry do not feel they are “not getting value for money” from their membership of the ARA and are considering withdrawing their support for the organisation. It has certainly been suggested to me that Aurizon is at the forefront of such moves.

Whether Hockridge’s comments are an early sign that Aurizon is thinking of going it alone on the lobbying front, remains to be seen. Despite the argument that the ARA has failed in its endeavours in the area of securing road pricing reform, it is also unlikely that one organisation, no matter how big, is going to be able to successfully force the government’s hand against the vested interests of the trucking industry.

Some years ago the industry considered a concerted lobbying exercise to bring about a level playing field in road and rail user charges, but ultimately this was knocked back by more conservative voices within the ARA at the time.

It would not surprise me if some of those same voices are those whose current machinations have the potential to destabilise the future effectiveness of the ARA.

If Aurizon and others within the industry are serious about the need for reform to the structure of access pricing for heavy road vehicles then a well thought out campaign with clear objectives and outcomes is required. The campaign also needs to be presented with unified front, rather than have lone wolves running around with their own agendas, which obviously will see nothing achieved.

Heaven forbid we are having this same debate again in another 20 years time.

Pacific National crane at Chullora NSW. Photo: Cameron Boggs
 Freight Rail

ACCC sheds light on Brookfield’s proposed undertakings

The Australian Competition and Consumer Commission has kicked off market consultation on the revised undertakings offered by the Brookfield consortium in its proposed takeover of ports and rail group Asciano.

The ACCC raised preliminary competition concerns over Brookfield’s planned takeover of Asciano in a Statement of Issues on October 15.

Brookfield, which already owns roughly 5000km of track in Western Australia through a long-term lease, as well as the Dalrymple Bay Coal Terminal in Queensland, made initial behavioural commitments to avoid the ACCC’s vertical competition concerns.

But these were rejected by the ACCC on November 26.

Brookfield has therefore made a number of formal proposed undertakings in an effort to win the ACCC’s approval.

Brookfield has committed to divest the intermodal business of Pacific National – Asciano’s rail subsidiary – as well as Pacific National’s limited bulk rail operations in WA, if it were to win in its takeover bid.

It has also made commitments to ensure independent operation and decision making at the Dalrymple Bay Coal Terminal, the ACCC explained.

Now the competition authority has begun its public consultation over the new terms.

But ACCC chairman Rod Sims says the opening of a consultation period should not be interpreted as any indication that the commission approves or disproves of the terms themselves at this stage.

“Indeed, the Commission has not yet had the opportunity to consider these undertakings fully but considers that its views on the undertakings will benefit significantly from market feedback,” Sims explained.

“Past experience has shown that the Commission needs to emphasise that the release of these undertakings for public comment should not be interpreted as a signal that the ACCC will ultimately accept these undertakings.”

The ACCC is inviting submissions from the public up to January 22, 2016.

Following market consultation, the ACCC will decide whether to accept or reject the proposed undertakings, with a final decision anticipated by February 18 – the same indicative date the commission has stated for its decision on the other proposed takeover bid for Asciano, from a consortium led by Qube Holdings.

“It should be noted that both the Brookfield and Qube decision dates are only indicative and may change,” the ACCC stated.

Metro Trains Comeng EMU. Photo: Zed Fitzhume / Creative Commons
 Passenger Rail, Workforce, Certification & Training

Metro used safety to selectively sack five, union claims

The Rail Tram & Bus Union claims Melbourne operator Metro Trains has sacked five of its members over an alleged safety concern which the union says was a systemic issue which should have been addressed by Metro long ago.

RTBU state secretary Luba Grigorovitch on Monday said a group of five workers had been sacked, two of whom were leading delegates in the union.

“Together these men hold almost 100 years of track safety experience,” Grigorovitch said.

“Today’s heavy handed decision by Metro to terminate a group of track maintenance workers, four days before Christmas, fails to address systemic safety issues in the industry.”

The union claims the workers were dismissed for alleged safety breaches, despite the fact that their actions were part of longstanding work practices, which the union says Metro has “failed to take seriously since taking control of the operation”.

“Failing to take localised action to improve safety and offer the training necessary to rectify these systemic issues, Metro management has negligently maintained the status quo, only now exploiting the issue to selectively eliminate this work group while others escape unscathed,” Grigorovitch claimed.

“If management are serious about improving safety and changing culture, not changing personnel, we need to see the promotion and education of safe work practices amongst and for workers.

“But the truth is, there has been little effort made by management to change and enforce these longstanding practices.”

Grigorovitch accused the passenger operator of unfairly treating workers, poorly applying policies, “sham contracting”, and short-changing the public on an “ongoing” basis.

“This year the RTBU has contacted Metro about safety on many occasions but little has been actioned by the company to deliver critical changes,” she claimed.

“Metro must do more to ensure proper processes, education, and training are delivered to workers in order to address safety issues in the network’s infrastructure maintenance department.”

Rail track. Photo: Shutterstock
 Engineering, Environment and Sustainability, Freight Rail

ARTC plans ‘mega’ holiday maintenance

The Australian Rail Track Corporation (ARTC) is preparing for a ‘mega maintenance shutdown’ in North East Victoria, the Riverina and Southern Highlands over the Christmas and New Years break.

65 projects will make up a package of essential rail upgrades between Melbourne and Sydney, the ARTC said, with $6 million in works planned over a four day stretch from December 27 to 31.

“This time every year we take the opportunity to deliver a large package of maintenance work when fewer trains are running after the Christmas freight rush,” ARTC executive general manager for interstate Peter Winder said.

“We do this to get the maximum amount of rail maintenance done efficiently in the safest possible environment for our people as well as minimising impact on everyday operations.”

Rail maintenance tasks will include rail grinding, ballast resurfacing, re-railing, upgrading rail turnouts, track undercutting, drainage maintenance and technical jobs like signalling work.

Roughly 600km of track will be worked on.

Track reconstruction work will take place within Junee, Moss Vale and Goulburn railway yards. The Bethungra level crossing (Olympic Highway) will be upgraded. Major repairs will take place at on the Spring Street underbridge at Moss Vale, and more underbridge repairs will take place in Tallong.

Almost 500 metres of track undercutting will also be delivered in various locations in North East Victoria from Craigieburn to Seymour, the ARTC outlined.

“We would like to get wide awareness of this work taking place, so the community knows what is happening around their neighbourhood and can ask us questions to find out how they are affected,” Winder continued.

“We know this period is a time when families are visiting and travel to different events is regular, so we want as many people as possible to know about what is going on, when.

“Around $6 million worth of work will take place in this shutdown, which is an important part of making sure we continue to run the safest possible network and maintain high reliability levels for our customers.”

The bulk of the work will take place between December 27 and 28 at the Victoria end of the corridor, and between December 29 and 31 in NSW.

The ARTC says most work will be during day time hours only, but some track machine and major work packages will require night work.

 AusRAIL, Below Rail Infrastructure, Engineering, Environment and Sustainability, Freight Rail, Passenger Rail, Rail Supply, Research & Development, Rolling stock & Rail Vehicle Design, Safety, Standards & Regulation, Signalling & Communications, Technology and IT, Workforce, Certification & Training

Christmas reading: Rail Express AusRAIL edition

In case you missed it, Rail Express published a digital edition of its AusRAIL magazine in November. You can read the magazine, which includes features, interviews, analysis and comment covering the Australian and New Zealand rail industry, in digital format on our website.

The 92-page magazine can be viewed in digital format by clicking here.

Instructions: simply use your mouse to drag the pages just like you were reading a magazine. Alternatively, you can use the left and right arrows on your keyboard. To zoom in on a page, use the magnifying glass icon on the bottom left menu.

We hope that you enjoy the magazine. If you have any feedback, please feel free to email our editor: oliver.probert@informa.com.au

For more information about advertising in Rail Express, please click here.

Marika Calfas, chief executive officer of NSW Ports. Photo: NSW Ports
 Freight Rail, Workforce, Certification & Training

NSW Ports appoints new CEO

After several months as the organisation’s interim chief, Marika Calfas has been formally announced as the CEO of NSW Ports.

NSW Ports, which owns and operates Port Botany and Port Kembla, announced the appointment on December 21.

“The board is delighted to appoint Marika to the position of chief executive officer,” NSW Ports chairman Paul McClintock said.

“Marika has demonstrated that she possesses the experience, qualities and capabilities required to successfully lead the business. We look forward to working with her to deliver on the organisation’s objectives.”

After a global executive search, McClintock said the board decided the best candidate was the one right in front of it.

“Marika has impressed the board during her period as interim CEO,” he said. “Marika has a comprehensive knowledge of the business having been a part of the NSW Ports executive team since 2013, and came to NSW Ports with 12 years’ experience at Sydney Ports Corporation.”

Prior to her work at Sydney Ports, Calfas worked at Sinclair Knight Merz.

“I am passionate about NSW’s port gateways and freight supply chains, and the vital role they play in supporting business and consumer needs,” Calfas said.

“Ensuring they continue to grow and operate efficiently and sustainably is essential. In my capacity as CEO, I look forward to continuing to engage with our many stakeholders and working with my colleagues at NSW Ports to deliver these strategic outcomes.”

Michael Kilgariff, chief executive of the Australian Logistics Council – which recently added Calfas to its board – praised the move by NSW Ports.

“Marika brings a wealth of high level experience to the position,” Kilgariff said.

“Her deep understanding of the long-term challenges and opportunities facing NSW Ports make her the ideal choice to lead the organisation through the next phase of its growth.”

Kilgariff stressed the importance of a number of freight initiatives concerning NSW Ports which are in their planning phases.

“These include an agreement between NSW Ports and Aurizon regarding the future of the Enfield Intermodal Logistics Centre; Asciano’s new intermodal strategy incorporating an intermodal site at St Mary’s and DP World’s and Toll’s proposed Villawood joint venture.

“They also include the Moorebank Intermodal Terminal in Western Sydney, to be operated by the SIMTA consortium (consisting of Qube and Aurizon), which is making significant progress,” he added.

“With NSW’s freight task set to nearly double by 2031, the logistics industry needs visionary and strategic leaders with a solid understanding of what’s required to meet this growth; and NSW Ports have this in Marika Calfas.”

New Acland station. Artists Impression: City of Port Philip
 Environment and Sustainability, Passenger Rail

Makeover for Route 96 terminus

The Council of Port Philip has endorsed a new streetscape framework for the tram terminus at Acland Street, St Kilda.

The renewal plan is part of Public Transport Victoria’s Route 96 Upgrade project.

Under the proposal, which was endorsed at a Council meeting on December 8, Acland Street will include “an integrated streetscape with a promenade feel to encourage pedestrians to stroll along the street”.

A new level-access tram terminus for Yarra Trams’ route 96 will be located just before the entrance to Acland Court, and will be designed for use by people with disabilities, parents with prams and people with luggage and shopping bags, the Council explained.

A new public plaza will be built between Acland Court and Barkly Street.

The Council decision came after a two phase community engagement stage during 2015, which yielded roughly 1500 individual consultation responses. The Council also worked with PTV and Yarra Trams to come to a proposed design for the project.

Now it has endorsed the proposal, the Council will draft a Memorandum of Understanding with PTV to detail each organisation’s responsibilities in the plan, and the delivery and co-funding of the project.

Construction is planned to start in mid-2016 and is set to be complete by summer 2016.

Wooden railway sleepers. Photo: Creative Commons / LooiNL
 Passenger Rail

Peak services to city double on South West Rail Link

The South West Rail Link has been integrated into the Sydney Trains network, delivering more direct journeys to the city and twice as many services in the peak.

NSW transport and infrastructure minister Andrew Constance announced the changes recently, which mean passengers can now catch a train every 15 minutes, instead of every 30 minutes in the peak, with the line becoming part of the T2 Inner West and South Line, travelling to the city via Granville.

“In February, we opened the $2.1 billion South West Rail Link ahead of schedule and $300 million under budget. It’s been a big hit with customers, with more than 1,500 train journeys every weekday to and from Leppington and Edmondson Park,” Constance said.

“Giving customers better access to destinations across Sydney and more trains to help them get there is the next step to delivering better public transport for South West Sydney customers.

“For the first time customers will be able to get a direct service to the city and improved access to key employment hubs including Parramatta, Liverpool and North Sydney.”

Constance said the government is anticipating the peak 15 minute frequency will remain in place for most of the day.

Some low-demand services in the off-peak will continue to run every 30 minutes to Glenfield and Liverpool, he added.

“The South West is expected to house 300,000 new residents in the next decade,” member for Camden Chris Patterson added.

“As the population grows the NSW Government will continue to monitor patronage closely to ensure we are providing the appropriate level of services for customers.”

Member for Holsworthy Melanie Gibbons continued: “The South West Rail Link has been a vital connection for local residents, and with the line now integrated with the rest of the network, it means customers can get to where they need to go more conveniently.”

Coal wagons Aurizon. Photo: Aurizon
 Freight Rail, Workforce, Certification & Training

Changes at top for Aurizon

Queensland-based freight operator Aurizon has announced head of operations Mike Franczak will leave the company in March 2016 “by mutual agreement”.

Franczak joined Aurizon in 2013 after a long career in Canada.

“As we indicated at the time, we brought Mike in to bring our operating metrics in line with the North American Class 1 Railways,” chief executive Lance Hockridge said on Wednesday.

“He has delivered and has played a role in the ongoing success of our operational transformation.

“Our key operating metrics have improved and are trending towards and in some cases exceeding the performance of the Class 1 Railways.

“I would like to thank Mike for the work he has done.  His experience has been invaluable in helping the team achieve many of the performance targets we set our company in recent years.”

Michael Carter will be appointed as acting head of operations from January 1, while Franczak will be available to assist with the transition before his departure in March.

Vice president of business development David Welch will act in the role of executive vice president strategy and business development for Carter during this time.

Hockridge said a global recruitment process would be undertaken to fill the role permanently however the bench strength of the Aurizon team was strong and there was a number of outstanding internal candidates.

“Michael [Carter] is currently the executive vice president strategy and business development and has broad experience in leadership roles over a long career in the rail industry, including freight, passenger and heavy haul rail operations.

“We have set very clear targets to the market in terms of cost outs and performance improvements.

“I will also be working closely with the teams to ensure a seamless transition and help our highly experienced and capable leadership team in Operations deliver on our targets and our next phase of reform and growth.”

Queensland Rail passenger train - photo QLD Matt
 Engineering, Passenger Rail, Rail Supply

Tender awarded for Gold Coast heavy rail duplication

Queensland’s new minister for transport and the Commonwealth Games Stirling Hinchliffe has announced the winning bidder for civil construction works for the $163 million Gold Coast heavy rail duplication project.

Hinchliffe on Wednesday announced Golding Contractors will provide civil construction for the project, which will duplicate 8.2km of track between Coomera and Helensvale stations.

The minister says the project is on track to be finished before the 2018 Commonwealth Games, which will take place on the Gold Coast.

“The Gold Coast heavy rail line is a key gateway from Brisbane to the Gold Coast region and records around 4.5 million passenger journeys per year, but is currently at capacity during peak times,” Hinchliffe said.

“This project will involve duplicating the only remaining section of single track on the Gold Coast rail line, and is crucial to ensuring more frequent train services can be introduced.

“The works will also involve constructing eight new rail bridges, one of which will span 860 metres across the Coomera River, Hope Island Road and Saltwater Creek.

“Through duplicating heavy rail tracks between Coomera and Helensvale stations, we will be able to further improve public transport in the region ahead of the Games, by introducing extra peak hour services and extra capacity from Brisbane to the Gold Coast.”

Treasurer Curtis Pitt said the works would support approximately 200 local jobs once construction commenced in March 2016.

“The Palaszczuk Government is committed to investing in public transport infrastructure in the Gold Coast region, particularly ahead of the Commonwealth Games – an event that will inject $2 billion into the Queensland economy and generate around 30,000 jobs,” Pitt said.

“This project will not only support the Gold Coast region to host one of the world’s largest sporting events, but will also cater for the region’s growing number of residents and visitors.”

Following this work, Queensland Rail will install the duplicated line’s new rail infrastructure including track, overhead power lines and signalling systems, Pitt explained.