As we move into 2025, with a robust pipeline of transport infrastructure projects underway, it is incredibly timely — and truly exciting — that the industry has reached an historic agreement to implement a National Product Type Approval Framework (PTAF).
This is a monumental milestone, not only for the rail industry but for all modes of transport. The fact that both industries have come together to resolve this long-standing issue – one that has hindered productivity and innovation for decades – is an achievement worth celebrating. If we can channel the same bipartisan energy into addressing decarbonisation, the whole community will see significant benefits in the near future.
Inefficient and fragmented Product Type Approval processes in the transport industry have long been a major challenge, driving up costs and impeding supply chain efficiency and hindering innovation. The commitment across jurisdictions to align on national standards marks a significant win and will be transformative for the industry as a whole. It will reduce duplication and foster efficiency, innovation, and cost-effectiveness.
It will support an environment where the rail industry, which plays a vital role in the nation’s passenger and freight transport infrastructure, will continue to thrive, and ensure the Australian rail sector remains competitive in the global market.
Read more: Australasian Railway Association launches free course
The importance of Product Type Approval processes
Product Type Approval processes ensure that rail products are fit-for-purpose and meet safety, performance and interoperability standards and regulatory requirements.
The ARA has advocated on behalf of industry for the past several years on the benefit of developing a nationally consistent Product Type Approval Framework – which would save the industry about $40 million annually by eliminating redundancies and expediting approval processes. This figure will be much higher when taking into consideration the PTAF applies to all modes of transport.
The report estimating the economic cost of Type Approval processes in the Australian rail industry, commissioned by the ARA and Rail Industry Safety and Standards Board (RISSB), shows that the rail industry incurs $230 million annually due to duplicated type approval requirements across jurisdictions. This duplication often involves redundant documentation, studies, trials, and evaluations for the same product across different rail networks, which stifles efficiency and innovation.
The 2022 report by Synergies Economic Consulting has been a springboard for change over the past few years and it is very encouraging that the industry is finally seeing strong commitment from government to properly address this issue.
In recent months, the Commonwealth (ARTC), New South Wales, Queensland, Victoria and Western Australia have expressed interest and some jurisdictions have already signed the Memorandum of Understanding to adopt a National Type Approval Framework and the ARA is looking forward to seeing the benefits of the rollout in 2025.
National Product Type Approval Framework
This pivotal strategic initiative to standardise and streamline type approval processes for products across transport and asset classes was spearheaded by Transport for NSW and the Department of Transport and Planning (DTP) Victoria.
The goal of the National Product Type Approval Framework is to enable harmonisation across transport modes and jurisdictions and deliver value creation by proactively reducing cost and improving efficiency in the product type approval process. This framework will guide the development of supporting processes to ensure consistency and harmonisation of product type approval across jurisdictions achieving multimodal outcomes where practicable.
Since 2021, Transport for NSW has led a working group to develop the framework in collaboration with 49 members from different modes and jurisdictions across Australia, industry experts, transport operations and industry bodies.
The initiative aligns with the National Rail Action Plan to enhance safety and promote regulatory consistency across Australian transport networks.
The framework also informed the principles of the revised AS7702 Type Approval for Rail Equipment standard released by RISSB in 2023.
The framework is built around 10 core principles intended to foster knowledge sharing, build trust and reduce duplication of effort through shared assessments across different jurisdictions and transport modes. These principles are designed to support a risk-based, efficient, and timely approval of products.
Ahead of a national, staged rollout planned for 2025, a pilot trial of the framework was conducted in collaboration with TfNSW and DTP Victoria in 2023 and 2024. The project utilised the technical capabilities, expertise, and resources of Transport Certification Australia (TCA), National Transport Research Organisation (NTRO), AECOM, the Australian Rail Track Corporation (ARTC), Queensland Rail, industry partners, and industry bodies to evaluate the framework before national adoption.
The Harmonisation of Rail Standards launch earlier this year. Image: ATA
The pilot included three interconnected trials for 16 products (eight approved in New South Wales and eight in Victoria, including four rail electrical and signalling products and a level crossing product) designed to assess the framework’s effectiveness:
NTRO: A trial for the Rail Safety Systems Rail Active Crossing Safety System, aimed at enhancing railway safety and efficiency.
TCA: A trial involving eight road civil products, each already approved by one jurisdiction, to test cross acceptance and mutual recognition:
Four products approved by DTP
Four products approved by TfNSW
AECOM: A trial involving eight rail-related products:
Four electrical products
Four signalling/ control systems
Each product previously approved by one jurisdiction, with four by DTP (MTM) and four by TfNSW
All products have been previously approved by one jurisdiction, four by DTP (MTM), four by TfNSW
The outcomes of the pilots confirmed the value of a streamlined approach.
Benefits of the National Framework
Historically, type approvals have varied across jurisdictions and transport modes, creating inefficiencies and discouraging the adoption of innovative products that could improve asset performance and operational efficiency.
Industry stakeholders have expressed concerns that current processes are overly complex, time-consuming, and difficult to navigate, hindering both innovation and value creation.
Product type approval is critical for ensuring that rail equipment meets stringent safety, operational, and interoperability standards. A robust and consistent type approval system offers the following benefits:
Safety assurance: By evaluating products rigorously, type approval minimises risks associated with equipment failure.
Interoperability: Uniform standards enable equipment and technologies to be used across multiple jurisdictions and rail networks seamlessly.
Enabling innovation: Streamlined approvals lower barriers for introducing new technologies and commercialising innovations.
Cost efficiency: Reducing duplicative processes saves time and money, benefiting rail operators and taxpayers alike.
Next steps
The National Product Type Approval (NPTA) Steering Committee, comprising representatives from New South Wales, Victoria, Queensland, Western Australia and the ARTC, has outlined a comprehensive action plan to bring the framework to fruition.
Through the signing of a MoU, all parties commit to adhering to the fundamental principles of the framework, thereby ensuring consistency, transparency, and integrity in the approval mechanisms. This collaborative undertaking is anticipated to achieve the following objectives:
Reduce redundant work and associated costs through shared assessments.
Facilitate faster and more efficient approval processes via a harmonised approach.
The framework ensures that all parties actively collaborate and share information, which enhances transparency and aids in aligning strategies across different jurisdictions.
The project is focused on developing a comprehensive strategy for change management and implementation. This strategic development includes several key components:
The Product Type Approval Guide: This guide will provide detailed instructions for navigating the product type approval process under the new framework.
Product Type Approval criteria: Clear assessment and evaluation criteria will be designed to outline which products require type approvals and assess the value creation potential of approving products.
Competency framework: A framework to define the required skills, knowledge, and abilities necessary for third-party assessors involved in the product type approval process ensuring the expertise and decision-making within the teams.
Change management strategy: This strategy will address how the framework will be implemented, ensuring smooth transitions and minimising disruption.
Initiate a phased integration of the proposed PTAF. Beginning with an early adoption strategy in DTP Victoria and TfNSW, this approach allows for iterative learning and adjustments, setting a robust foundation for broader implementation.
With the framework laying the groundwork for streamlined processes, the rail industry is poised for a future of enhanced safety, innovation and economic efficiency.
