Rail transport in Australia is a modern, national and diverse industry and a key element in the integrated logistics supply chain. The industry comprises freight and passenger train operators; track owners; infrastructure providers and maintainers; rolling stock manufacturers and maintainers; suppliers (particularly signalling); supply chain and logistics operators; and a wide range of service providers supporting the rail industry.

Each sector of the rail industry has quite different business and community objectives. ARA’s website www.ara.net.au provides information about Member companies.

There are over 250 private and public companies involved in the Australian rail industry employing around 70,000 people in urban and regional Australia. In many regional centres employment in the rail or rail related sector comprises a major source of employment.

`Modernisation of the rail industry began in the 1990’s resulting in productivity improvements worth over $2 billion. The majority of rail industry companies are private, profitable enterprises trading in highly competitive domestic and international markets. Australian rail has a high overseas profile as an innovative supplier of quality rail products, services and technology.

The following is a 2006/07 snapshot of rail activity (Endnote:1):

• 665.9 million passengers traveled on urban rail and light rail tram services (up 5%) and another 11.2 million passengers used non-urban and long distance services (up 19%);
• 665.6 million tonnes of freight moved (up 3.8%);
• $2.4 billion was invested in rail infrastructure across Australia (Endnote:2);
• rail is a significant contributor to Australia's rural and regional economies, producing economic benefits worth around $7.7 billion a year (Endnote:2).

Rail Industry Structure and Open Access to Infrastructure

Since the 1990’s Australia’s railways have undergone significant change.

Privatisation has seen a decline in government ownership and management of railways. ‘Above Rail’ operations (freight and passenger trains) have been separated from ‘Below Rail’ activities (track ownership, maintenance & construction, access to the rail network to run trains and allocation of train paths) as part of national competition reform and open access to government railway infrastructure. This resulted in private companies offering freight and passenger services over government-owned track. Significant milestones during the privatisation process are shown in Table 1.

Rail Network

Comprises 41,000 km of rail track in a mix of rail gauges, operational capabilities (including sugar cane railways in Queensland) with government and private sector ownership.

The interstate rail system includes over 10,000 km standard gauge track (Endnote:3), plus the 1,680 km narrow gauge link between Brisbane and Cairns. There is also around 250 km of light rail (tram) track in Melbourne’s extensive network and in the relatively short point-to-point routes in Adelaide and Sydney.

The Freight Task

Rail carries the majority of bulk freight such as iron ore, coal, minerals, grain and sugar. This has steadily grown from 559.8 million tonnes to 647.1 million tonnes in the five years to 2006/07 (Endnote:1). This is forecast to grow by around 2% a year to 2020 but is closely related to export demand.

Trucks move about 80% of domestic non-bulk freight and dominate every major inter-capital route except the Eastern States – WA and Adelaide - Darwin corridors. Rail carried 18.58 million tonnes in 2006/07 up from 15.83 million tonnes in 2002/03. The freight task is expected to grow by around 4% a year, doubling the total task by 2020.

Passenger Business

Urban and commuter railways generate significant economical, social and environmental benefits by providing an efficient mass transport alternative to the private motor car, helping reduce air pollution, road congestion and accidents, fossil fuel use and greenhouse gas emissions from transport.

Passenger journeys by rail networks keep over 500 million car trips a year off our roads. Significant recent increases in petrol prices has seen many more commuters getting out of their cars and using public transport.

Careers in Rail

The rail industry is addressing workforce and skills shortages that threaten to limit rail’s ability to handle future freight and passenger traffic levels in a collaborative, unified effort through the ARA’s Rail Skills and Career Council. More information on this initiative is available at www.ara.net.au/RSCC2.htm
Conclusion

Governments and industry are investing in the future of rail in Australia as the freight task expands and the community demands improved urban rail services and reliability. The rail industry seeks ongoing government commitment and community support to make rail the transport mode of choice for both freight and passengers because of its economical, environmental and social advantages. This involves:

• development of national integrated transport solutions for freight providing links to ports, intermodal terminals and road/rail interfaces;
• adoption of a National Passenger Transport Agenda;
• coordinated approach by governments and the business community to deliver change in travel behaviour;
• accelerated, ongoing investment in rail infrastructure for freight and public transport; and
• upgrading public transport services to provide attractive alternatives to car travel for all.

Increased levels of freight carried by rail will significantly reduce:

• greenhouse gas-related emissions;
• congestion on roads in Capital cities with travel time savings to the community and industry; and
• accidents and health-related problems (less noise and pollution).

Table 1 - Significant milestones in rail industry privatisation (Endnote:4)

Endnotes

1.             Australasian Railway Association (2007), Australian Rail Industry Report

2.             Australasian Railway Association (2005), Australian Rail Industry Report

3.             Australian Rail Track Corporation website – About ARTC – www.artc.com.au

4.             Bureau of Transport and Regional Economics (BTRE), 2007, Australian rail freight performance indicators 2005-06, Information Paper 59, BTRE, Canberra

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