Kirsty O'Connell - ARTC - The Inland Rail Program: transforming East Coast logistics

PROGRAMME UPDATE

JUNE 2015 – KIRSTY O’CONNELL

THE STRATEGIC CONTEXT

Inland Rail Overview 2 |

• The Melbourne to Brisbane corridor generates $1.1 Trillion or 75% of GDP and exports $260 billion in agricultural and mining products from its ports annually

• Melbourne to Brisbane rail freight is constrained by passing through Sydney

• Transport options for regional mining and agricultural products are limited and can be 30% of the cost of production.

THE CHALLENGE


• Significant growth expected in freight volumes by 2030 (as much as double).

• The existing road-dominated freight network can’t cope with this growth without further investment.

• Even without any increase in freight, the constraints of the existing network mean that we aren’t realising the full potential of our regions

WITH A ROAD-ONLY SOLUTION


• Congestion will worsen

• The size and number of trucks on our highways will increase

• Greater pressure on the condition and safety of our highways

• Supply chain costs will increase making our exports less competitive and domestic products more expensive.

SHARING THE LOAD WITH INLAND RAIL


• A new 1700km freight rail connection from Melbourne to Brisbane via regional NSW and QLD.

• A road-competitive rail service based on transit time, reliability and cost (<24 hours Melbourne to Brisbane).

• Completes the backbone of Australia’s freight rail network, linking cities, farms, mines and ports.

• The safest, most sustainable solution to the freight challenge.


TAKE THE JOURNEY WITH US

COMMITMENT TO DATE

The Minister for Infrastructure and Deputy Prime

Minister has charged ARTC with developing a 10

year delivery plan for Inland Rail.

$300 million committed to finalise plans, engineering design and environmental assessments for Inland Rail. This includes:

• The development of the 10 year programme

• Early design work and approvals

• The commencement of early works and land

acquisition (where required)

• A detailed business case

Inland Rail Overview 7

Australian Government (Deputy Prime Minister)

Inland Rail Implementation Group (IR-IG)

(Chair – John Anderson)

Australian Rail Track Corporation

(IR Programme Team)

SERVICE OFFERING

COLLABORATIVE DEVELOPMENT OF THE SERVICE OFFERING

• Service offering is core to Inland Rail

• Developed in close consultation with industry and rail users.

• Sets out the operational outcome and thus specifications to meet industry needs.


CORE SERVICE OFFERING


WHAT DO THE CUSTOMERS SAY?


WHAT DO THE CUSTOMERS SAY?


Australian Financial Review, 2 May 2015

WORK TO DATE

OUR WORK TO DATE

• Established the Programme Team and Project Management Office

• Significant work on an updated cost estimate

• Developed a preliminary business case which shows a positive BCR

• Engaged with government, industry and customers through more than 50 separate events and workshops to gain input on the service offering and alignment

• Completed a delivery plan and preliminary approvals strategy

• Completed detailed aerial photography and mapping

• Undertaken preliminary field studies for the upgrade projects (Parkes to Narromine and Narrabri to North Star)

• Established key programme systems including a GIS portal


Short term • Finalise the Business Case and prepare submission for Infrastructure Australia if

directed • Early consultation to inform alignment refinement • Field studies in NSW to inform development of the priority construction projects –

Parkes to Narromine and Narrabri to North Star • Potential early construction works

Medium Term • Field studies and environmental approvals across the alignment • Reference design across the alignment • Finalise preferred alignment in greenfield sections • Construction

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WHERE TO FROM HERE?

Inland Rail Overview

BUSINESS CASE

ARTC and Pricewaterhouse Coopers have recently completed the key task of developing the Business Case for Inland Rail.

Key elements of its preparation included:

• A detailed demand study independently prepared and verified

• Extensive engagement with customers, rail users, local and state governments and industry groups

• Options analysis and benchmarking against other contemporary projects of a similar scale

• Extensive cost estimation process leveraging ARTC resources, external resources and independent industry experts.


PROGRAMME BUSINESS CASE

• Sound strategic rationale

• Provides both economic and social benefits throughout the country by completing the backbone of the national freight rail network between Qld, NSW, SA and WA.

• Provides a strategic opportunity to make a decisive step change in the capacity, capability and interoperability of the national freight rail system.


THE PROGRAMME BUSINESS CASE WILL HAVE:

THE BENEFITS

Port of Brisbane Rail Extension 19 |

Road competitive service

1/3 of the fuel of road