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10 September 1997NATIONAL RAIL SUMMITClick here for Map of the National Interstate Track System (Map Below) Transport Ministers of the Federal, State and Territory governments met in Melbourne today to discuss a range of issues affecting the future of our public rail system. The meeting was hosted by the Victorian Minister for Transport, the Honourable Robin Cooper, MP and chaired by the Commonwealth Minister for Transport and Regional Development, the Honourable John Sharp, MP. They met with prominent representatives of Australia's transport and rail industries, and received detailed briefings on how users and customers perceive the performance of our rail system. Mr Mark Vaile, Chairman of the House of Representatives Committee on Communications, Transport and Micro-economic Reform also briefed Ministers on his current inquiry, which is examining the role of rail in the national transport network. Interstate RailA viable interstate rail industry is important to the long term efficiency of our transport industry. It currently carries over 10 million tonnes of freight, and around 40% of the interstate freight task. It contributes to the distribution of container traffic, steel, and many bulk products, and serves our agricultural, mining, manufacturing and consumer industries. It competes with road and sea transport in a market that has consistently grown faster than GDP. While productivity has improved, over the last two decades rail has failed to compete effectively with road transport, and its relative performance has deteriorated. It has not realised its potential contribution to the national economy. Ministers considered the problems affecting our interstate rail industry and made a commitment to address them in a systematic and comprehensive way. These problems are clearly evident in our rail infrastructure and how it is used, our access arrangements, and the inconsistency of regulations and operating practices on the network. Our interstate rail system has been managed as a discrete set of State based rail systems. This is no longer acceptable. We need a vigorous interstate rail system that supports port competition and is genuinely competitive with road transport and domestic shipping industries. National Rail was established to improve interstate freight operations, and has made a significant impact on the performance of above rail operations. This process has continued with the emergence of private competitors, and will be strengthened by NR's impending sale and the privatisation of State based freight systems in Victoria, Tasmania and South Australia . Unfortunately our infrastructure management and operational systems have not responded effectively to these developments in the above-rail market. Ministers considered that it was possible to make dramatic improvements in the performance of interstate rail. They noted that no party involved in interstate rail is satisfied with the service provided by the infrastructure, the arrangements for access to it, and regulation of operations across State borders. Having completed the national standard gauge network regulatory and operational 'breaks of gauge' need to be eliminated. Ministers from the Commonwealth and all mainland States have today signed an Agreement to deal with these issues. The following principles will guide the development of detailed reform proposals to be considered by Ministers on 14 November:
Ministers will be asking an eminent person to act as a convenor to assist in reaching agreement on implementing these principles. He/she will be working with officials from the relevant governments and industry participants to achieve this. As a first step in implementing these principles Victoria and the Commonwealth will place their track, from Wodonga and Broken Hill to Kalgoorlie, under single management. Ministers Cooper and Sharp have agreed to achieve this by 1 July 1998. A plan will be considered in November for the extension of this network to Perth. Governments have responded to the reality that our interstate rail infrastructure, its users, and the customers they serve, do not recognise borders. The decision will advance the interests of consumers and businesses along the whole east-west corridor. Implementation of these agreements will clear the way for Commonwealth investment on interstate track beginning in 1998-99. Ministers supported the recent work by track owners on interstate access agreements, and encouraged further development of these co-operative arrangements. They will assist in reaching the decisions to be taken in November. Ministers envisage that this network should provide the following levels of service within five years:
SCOT will prepare a plan to achieve these service objectives and performance monitoring for consideration by Ministers at their meeting in November. In the longer term the system should deliver:
These standards, and progress towards them, need to be reviewed regularly. Ministers have asked for annual progress reports from officials. Ministers noted that a significant investment effort is required to achieve their objectives. The Commonwealth will make $250m available over four years from 1998-99 for this task, on the condition that satisfactory access arrangements and plans for investment and harmonisation of regulatory and operational requirements are in place. The States will also be making an investment commitment to achieve these objectives. In recognition of the difficulty freight traffic experiences with passage through Sydney, a plan will be developed for the provision of a dedicated freight track(s) through the metropolitan system. Achieving these objectives is not only a matter of improving the quality of our infrastructure. We can use our infrastructure much more effectively. Ministers consider that early action is necessary to harmonise regulations and operational practices on the network. There are presently 22 safeworking and 17 radio systems currently in use on the network. Some drivers need to be conversant with 11 different safeworking systems. This is simply unacceptable. Ministers have decided to develop a decision making process to ensure that rapid progress is made in harmonising the requirements on interstate operations. They will be consulting with rail track owners, regulators and operators, and consider proposals for achieving this decision in November. The eminent person engaged by Ministers will also assist in this work. Ministers will consult with track owners who are already aiming to achieve harmonised regulatory and access arrangements in 1998. Ministers have identified safeworking and communication systems as priorities for early attention. To ensure that future work in this area is soundly based, Ministers are commissioning work to document the more important safety, technical and operational standards and requirements in use on our rail system and how they differ as operators move through both the inter and intrastate networks. This work will be managed by ATC rail officials and completed early next year. Ministers noted that the Intergovernmental Agreement on Rail Safety was being implemented by most jurisdictions, and looked forward to the remaining States expediting passage and implementation of rail safety legislation. They agreed that one body in each State would have clear responsibility for safety accreditation. Ministers considered that there was a need to review and rationalise additional accreditation requirements individual States are imposing in the mutual recognition process. Ministers considered that when all jurisdictions have safety legislation in force and investigators have appropriate indemnities, accident investigations should become a more open process, including public reports of the kind published by the Bureau of Air Safety Investigation. Ministers also considered that reliability could be considerably improved by the uniform adoption of a train control protocol which aims to reward and maintain 'on time' operations across the network. They have asked SCOT to investigate how quickly such a protocol could be implemented, and what system adjustments would be necessary to achieve this. Private rail investmentMinisters discussed the general issue of private investment in rail, and have sought advice from ATC rail officials on any existing barriers and how to facilitate more effectively such investment on both intra and interstate infrastructure. The recommendations of the National Transport Planning Taskforce will be reviewed in this work. Private rail projects on the network will also be eligible for Commonwealth infrastructure tax rebates subject to meeting the standard criteria and being selected in a competitive process by the Commonwealth Government. Ministers received briefings on progress with a number of exciting projects being proposed at present. These included the Alice Springs to Darwin rail proposal, for which Expressions of Interest will close on 30 November. Invitations for detailed submissions on the Sydney/Canberra Very High Speed Train would be released to the six short-listed proponents shortly. Ministers also discussed the proposal from the Australian Transport and Energy Corridor company for a new service operating between Melbourne and Darwin and passing through the NSW and Queensland inland. Rail ResearchMinisters have asked ATC rail officials to provide advice for its November meeting on the case for establishing a rail research body (similar to the road sector's Austroads), how this might be done, and what the initial research priorities should be. Ministers noted that the Bureau of Transport and Communications Economics is about to publish a report on the full range of taxes and charges paid by operators in all transport modes. Ministers have also endorsed the development of a rail model which provides detailed information on investment and upgrading priorities, benefit-cost ratios, and marginal costs (which are important for access pricing). This work, based on data provided by governments and their track bodies, will initially focus on the standard gauge interstate network. SCOT will settle the commissioning and funding of this work . SCOT will also settle the arrangements for undertaking the work commissioned by Ministers on competitive neutrality issues affecting road, rail and sea transport. ConclusionThe decisions taken today, and those to be taken in November are a historic development for Australia and will be implemented and pursued with commitment. MEMBERS ATTENDINGChair: Hon John Sharp, Commonwealth Minister for Transport and Regional Services.
APOLOGIES
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Last Updated: 9 June, 2005 |
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