<span class="" id="parent-fieldname-description"> One of the most popular aspects of the upcoming AusRAIL PLUS conference is the Rai Suppliers CEO Forum. Rail Express, the official publication of AusRAIL, spoke exclusively with Downer Rail CEO Ross Spicer. </span> <p><em>REX: Given this year’s conference theme ‘Driving the Costs Out Of Rail’, what steps are you taking in your own business to reduce costs and how can the industry as a whole assist you in achieving that goal?</em></p><p>Spicer: As an organisation Downer Rail is establishing and driving continuous improvement practices throughout our business including the elimination of processes that deliver little or no end value.  This enables us to better utilise our workforce and the key skills within our organisation, providing a lower cost base capable of flexing with the dynamic industry conditions. </p><p>We are integrating parts of our business where feasible to reduce duplicate support structures and optimise our efficiencies. We are investing in our people, ensuring they have the right tools and skills to carry out their job. We have supported this with an ambitious set of change initiatives to ensure that we are well prepared for future business opportunities. If the industry takes similar steps we increase the chance of having a viable and successful rail industry in Australia.</p><p><em>REX: We have seen a trend towards the contraction of manufacturing activities for a growing number of rail suppliers. Do you see this trend continuing, and what does this ultimately mean for the railway supply and manufacturing industry in Australia?</em></p><p>Spicer: Manufacturing in Australia is changing across all industries. In order to compete, change is inevitable. If rail suppliers do not transform, evolve and learn from best practice elsewhere then yes I would envisage that this trend will continue. </p><p><em>REX: The unpredictable nature of rolling stock and infrastructure demand and the associated impact upon the railway supply industry are long term issues for our rail suppliers. Have you seen any improvement in government procurement practices of late and is there potential for more balanced demand moving forward?</em></p><p>Spicer: There is no doubt that Government procurement practices have improved, however there are ongoing challenges that make it difficult to create a more balanced demand. The two main scenarios that rail manufacturers face are:</p><ul><li>A steady state demand drawing down lower numbers of orders per year, resulting in standard products. When demand is low it leads to the increased possibility or risk of inefficiencies in production. </li><li>Current practice has shown that government are favouring larger orders upwards of 70 sets leading to bespoke and custom design. With this comes inherent design costs and risks, which in a complex Australian market with three different gauges (standard, narrow and broad), across multiple urban centres, can make planning on our part quite difficult.</li></ul><p>I would like to see government publish long term fleet plans, allowing providers to plan and strategically deliver the lowest cost solutions, allowing manufacturers to grow and operators to get best practice solutions.</p><p><em>REX: The industry recognises the impact that existing and future skills shortages have on rail’s workforce, with a number of strategies already implemented to redress the situation. How successful do you think these strategies have been, how can the private sector become more involved, and what else is required to avoid future skills shortages?</em></p><p>Spicer: The key strategies being implemented by the Australasian Rail Association (ARA) are in their early stages, but the potential benefits will have a significant positive impact on both the industry and the organisations within the rail industry.</p><p>The ARA is taking a lead role in a number of areas, in particular lifting the profile of the industry and promoting its benefits to a more diverse employment population which will have a long lasting effect on attracting skilled staff and potential entrants to the industry.</p><p>The continued lobbying and promotion of the rail industry is essential if we are to attract and retain employee capability of equal importance is the streamlining and simplification of how skills are recognised across state borders.</p><p>More needs to be done, or effort needs to continue in these areas:</p><ul><li>Managing the perception/image of the rail industry versus that of other industries in the wider community.</li><li>Developing an industry value proposition.</li><li>The industry and organisations within it, must keep abreast of technological advances and social media, thus attracting the interest of the next generation of employees.</li><li>Downer is contributing via the promotion of formalised internships, graduate and apprenticeship programs and diversity initiatives both formal and informal.</li></ul><p><em>REX: What government policy settings would you like to see in place to encourage growth and greater local involvement in Australia’s rail supply industry? </em></p><p>Spicer: Infrastructure investment should be predominantly driven towards the public transport sector. Australia has numerous urban centres, all of which would benefit from increased investment in public transport.  </p><p>There are many environmental and efficiency gains that could be made if government were to invest significantly in all public transport sectors.</p>
