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Smoothing rail orders to save billions

03 December, 2013

A new report shows that state rail authorities could save nearly $6 billion if rolling stock procurement is more efficiently planned and coordinated.

Deputy Prime Minister and Minister for Infrastructure and Regional Development Warren Truss — representing Federal Industry Minister Ian MacFarlane — launched the report: Opportunities for Greater Passenger Rolling Stock Procurement Efficiency, at the AusRAIL 2013 conference in Sydney.

"Over the next 30 years state governments are forecast to spend approximately $30 billion on new rolling stock," Truss said.

"Not only will smoothing rail rolling stock procurement result in significant savings to state rail authorities, but it will also enable the Australian rail industry to make more informed decisions about investing in facilities and training."

The report highlights that growing populations and ageing rail fleets will drive demand for rail infrastructure and rolling stock in the future, with 1,900 rail cars due to be replaced and a further 1,100 cars needed in the next 10 years to meet this growing demand.

In addition, projected public transport patronage growth means the national fleet will need to grow from 4,000 rail cars today to 11,000 by 2043.

"Retaining this work for Australian rail businesses has significant national economic benefits, with the retention of nearly $15.5 billion in local economic activity over the next 30 years," Truss said.

"Better planning of upcoming procurement creates certainty for suppliers enabling them to better plan production schedules, increase productivity and encourage investment and, at the same time, potentially reduce costs for suppliers and customers.

"It will also support manufacturing hubs in regions like Maryborough and Newcastle, as well as urban regions like Auburn and Dandenong."

The report, by Deloitte Access Economics, was commissioned by the Australasian Rail Association and co-funded by the Department of Industry.


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