Melbourne to Brisbane Inland Rail

22 June 2012

• Introducing GATR• Why Inland Rail?• The GATR concept • ARTC’s Inland Rail Alignment Study and GATR• The GATR rationale• Proposed corridor• 21st Century infrastructure• A new rail service paradigm and huge productivity gains• Better environmental and safety outcomes• Regional influence• Network connectivity • A robust “future proofed” network• Market potential• Re-direction of capital funding• What would the GATR project achieve?• In conclusion

Overview

Introducing GATR• GATR is a company established to promote and

potentially participate in creation of an inland rail network which integrates Australia’s railways and maximises the cost and time benefits of efficient freight transport.

• GATR aims to facilitate delivery of a trunk rail route between Melbourne and Brisbane which is direct and aligned to allow high performance, market oriented operations comparable with those of the best and most profitable North American railroads.

• GATR’s key people have a strong background in strategic planning, Local Government, transport and logistics, and the rail industry.

Why Inland Rail? • A much shorter Melbourne-Brisbane railway via Parkes and

Moree than the existing route via Sydney has long been seen as a more effective means for rail to provide competitive and efficient freight service on Australia’s east coast.

• The existing Melbourne-Sydney-Brisbane lines remain as slow, circuitous and inefficient “steam era” railways that cannot provide effective competition with trucking notwithstanding ARTC’s current $2.5bn “catch-up” investment programme.

• The cost of adequately overcoming conflicts with passenger and other freight services through the Sydney-Newcastle region is massive and clearing the corridor for container double stacking or hi-cube wagons could never be justified in economic terms.

• Inland Rail would provide network redundancy by having all east coast capitals connected by at least two routes, significantly improving reliability and minimizing delays or disruptions caused by planned works, failures and weather related events.

The GATR concept• An open access Melbourne-Brisbane inland railway of the

shortest practical length and the backbone of a high standard network that would allow rail to deliver consistently high quality customer service, more than double current productivity and take full advantage of modern technology.

• A route has been developed that is substantially shorter than other inland railway proposals, minimises elevation change and is aligned to a very high standard whilst minimising construction costs.

• Extended passing loops and bypasses of major town centres will allow operations at consistently high average speeds over considerable distances.

• The proposed alignment will allow any train to achieve optimum operating efficiency and consume minimum energy at its chosen operating speed.

ARTC’s I.R.A.S. and GATRKey points of difference:•GATR proposes a much shorter, better aligned corridor that will allow trains to provide faster, more competitive, reliable and cost-effective service and achieve greater asset productivity.

•GATR’s corridor infrastructure anticipates future standards, not past or current standards - wide radius curves, flat grades wherever possible, town bypasses, higher axle loads and clearance for larger dimension rolling stock.

•GATR is proposing the basis of an ultimate network configuration for interstate rail – not just a single corridor.

•GATR is proposing a much earlier start for the Inland Railway to maximise capital cost offsets against proposed coastal railway upgrades that could be deferred, curtailed or cancelled, and to offset the cost of otherwise needed highway upgrades.

•GATR rejects the view that Inland Rail should be deferred until the existing coastal railway reaches a certain tonnage threshold – a self-defeating proposition for continued inaction.

The GATR rationaleThe high capability inland route proposed by GATR seeks to overcome the long term lack of modern rail infrastructure on Australia’s east coast and become the transport mode of choice for a significant volume of contestable freight.

It would: •provide a totally new set of rail transport connections between far more origin/destination pairs than is now achievable.

•introduce a choice of six ports in three States for the despatch of many regional exports.

•capture a large share of Victoria to Queensland freight from road transport with resultant safety, environmental and road maintenance benefits.

•facilitate economic development in regional Eastern Australia, particularly for centres along the inland rail network.

Proposed corridor The GATR route would generally serve but not directly pass through the following main centres being linked to them by connecting lines

– Shepparton– Tocumwal– Narrandera– Parkes– Dubbo– Gilgandra– Narrabri– Moree– Inglewood– Millmerran– Toowoomba

21st Century infrastructure• Once selected and built, the Inland Railway corridor

and its base infrastructure is likely to have a useful life of at least 100 years.

• For a relatively modest increase in initial capital cost, this “once in a lifetime” project should be of the highest practicable standard that minimises distance and transit time and provides for both present and future train speeds, dimensions and axle loads.

• Only a high standard railway can attract the freight volumes required for a large rail market share and long term financial success. A railway at the current east coast standard of low average speeds, poor reliability and inadequate axle loads does not and cannot compete with road transport.

A new rail service paradigm and huge productivity gains (1)

• High cube and double stacked container trains conveying up to 350 TEU operating at up to 120 km/h would make the journey in 18 to 19 hours, enabling rail service for the first time to be strongly competitive with road on the east coast. By comparison, coastal route transits via Sydney, after current upgrading work is completed, will be 27-30 hours.

• The GATR corridor would also allow high speed (160km/h) specialised freight trains to operate Melbourne - Brisbane in less than 14 hours.

A new rail service paradigm and huge productivity gains (2)

• Productivity of key rail resources (locomotives and wagons) would more than double by virtue of their greater capacity and potential 48 hour cycle times (i.e. one train set on GATR would perform the same task as two train sets on the existing route).

• For long hauls, double stacking of containers or the use of higher capacity and larger rolling stock coupled with higher axle loads is an efficient way to minimise costs by fully utilising the space/weight relationship of a modern railway.

• The GATR route would eliminate the slow and tortuous 150 year old narrow gauge Toowoomba Range railway with its confined tunnels and low axle load regime (only 15.75 tonnes) inherited from the steam era. It would remove limits on container sizes and the severely restricted volume of Darling Downs coal and

grain that can be railed to the Port of Brisbane.

Better environmental and safety outcomes

A railway in easy country on a direct alignment with no slow speed restrictions will minimise fuel use and reduce greenhouse emissions in two ways: •Trains will operate with minimum emissions compared to those on other lines. •The attractiveness of the line will divert substantial freight volumes from heavy road transport which generates much higher emissions on a like for like basis than a modern efficient rail operation.

The potential for serious accidents and trauma to road users will also significantly reduce.

Regional influence• The GATR route would pass through almost continuously

productive regions nearly all the way between Melbourne and Brisbane unlike any of the existing inter-capital rail routes.

• GATR would provide new transport opportunities and lower costs for regional areas in northern Victoria, southern, mid-western and northern NSW and south-western Queensland.

• It would facilitate development of processing and warehousing and/or distribution centres in regional locations.

• Regional centres not on the direct GATR line would also benefit. For example,

– produce for export from the MIA (Griffith and Leeton areas) would save 130 km in distance to Melbourne;

– cotton producers from the Narrabri and Warren areas could realistically choose Sydney or Brisbane or even Melbourne as their export port;

– Goulburn Valley produce sold into domestic markets would have direct rail access to all mainland capitals for the first time.

Network connectivity (1) GATR proposes a new 25km direct link between

Wallendbeen and Stockinbingal and re-building of the closed Hillston - Roto line. This allows:

– Sydney - Melbourne – the route via Narrandera is about the same length as via Albury but would be faster with lower operating costs. It would bypass the Bethungra Spiral and avoid the need for ARTC’s proposed Junee-Wodonga duplication.

– Brisbane - Adelaide & Perth – the GATR link between Brisbane and Parkes would reduce rail distance to Perth by over 600km and to Adelaide by 450km with marked reductions in transit time and cost, thus likely to generate new traffic.

Network connectivity (2)

- Melbourne - Perth & Darwin – the Melbourne-Narrandera route plus an upgraded Narrandera-Griffith-Roto line linking to Broken Hill and Port Augusta would provide an effective route for double-stacked container trains, thus eliminating double stack conversion in Adelaide without adding to overall transit time. This would largely offset any need for a major bypass around the Adelaide Hills.

A robust “future proofed” network• The GATR line, of contemporary high standard

construction, would be inherently more robust than the existing heritage routes and stand up more effectively to severe weather events and the like.

• In future, the GATR Inland Railway would be capable of handling much higher freight train speeds than are now accepted (by virtue of its very flat curves) allowing very fast end to end times as well as further improving resource utilisation.

• GATR would accommodate rolling stock built to North American weight and dimensional standards, instead of the more restrictive Australian outline and axle loads. Substantially lower procurement costs and added productivity gains would flow from adoption of their “off the shelf” locomotive and wagon designs.

Market potential• Melbourne-Brisbane rail market shares are forecast

to ultimately increase from the current sub-25% to around 75% with the GATR proposal.

• This is wholly dependent upon provision of high quality infrastructure and a resultant paradigm shift in the ability of rail freight service providers to meet today’s demanding customer requirements.

• Assessment is based on extensive input from key decision makers in the transport and logistics industries and from end customers.

• A high standard railway offering reliable next day and possible same day delivery will allow rail to compete effectively in markets now closed to it, including express road and possibly, some air freight.

Re-direction of capital funding• The GATR Inland Railway is estimated to cost around

$6 billion at current values, using efficient construction methods. Some major projects under consideration to improve freight transit and capacity over the existing coastal route could be postponed or curtailed with the advent of GATR, including:– A NSW Government $7.9bn proposal to IA in July 2010 for the

Northern Sydney Freight Corridor to enhance Sydney to Newcastle freight capacity. Much of the forecast growth used to justify this project is Melbourne-Brisbane traffic.

– ATRC’s proposal to invest some $1.4bn to upgrade capacity of the NSW North Coast line (Maitland to Brisbane).

• Mode shift to the Inland Railway will postpone many significant Newell Highway capacity and safety improvements that will otherwise be needed.

What would the GATR project achieve?

The GATR system would deliver wide-ranging benefits of national significance including:– Provide a long term sustainable solution to

many current infrastructure impediments on Australia’s east coast.

– Overcome the current lack of reliable, timely and cost-effective east coast rail freight that has underpinned much of the extensive growth of long distance road freight.

– Encourage economic development in regional Eastern Australia, particularly for major centres along the inland rail network.

In conclusion GATR is proposing a modern open access rail

network that can transform Australia’s transport system by delivering fast transits, low operating cost, low emissions and consistently reliable service to the transport and logistics markets.

There will only be one opportunity to build a new inland railway – it should therefore anticipate future standards, not past standards - wide radius curves, flattest practical grades, town by-passes, high axle loads and clearance for larger rolling stock.

The GATR Inland Railway is a visionary project of national significance, but one that can be delivered during the current decade at a fraction the cost of other large scale nation building projects.

A bold new approach is needed for rail to deliver its real potential.

Let’s do the job properly so that Inland Rail becomes a serious game changer for Australia’s land transport.