National Rail Action Plan - Prepared for the Transport and Infrastructure Council - National Transport Commission
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National Rail Action Plan Prepared for the Transport and Infrastructure Council
Contents Introduction 3 1. Workforce 4 2. Harmonisation and standardisation 5 About the plan 7 1. Meeting rail’s critical skills and labour needs 8 2. Common rules for infrastructure standards 12 3. Common standards for components for rolling stock 13 4. Common rules for safe work 14 5. Interoperable communication and control systems 15 2 National Rail Action Plan
Introduction This plan is an agreed set of actions that will be undertaken by the Commonwealth, state and territory governments and key members of the rail industry. The plan aims to implement changes to improve delivery of rail infrastructure and improve the safety and productivity of rail operations. An additional focus will be to create opportunities for manufacturers of rail equipment to supply rolling stock and components. The actions have two main focuses: Australia will be spending more on rail in the next decade than submarines. Rail 1. to ensure we have the skills and labour manufacturing employs 5,000 workers required to build and operate the rail directly, with a further 7,000 in the network; and extended supply chain. 2. to improve the efficiency and safety of Australia‘s rail system by continuing to This rapid increase in public investment align or harmonise operating rules, creates both opportunities and challenges. infrastructure and operational Rail can reduce congestion in metropolitan standards and systems across the areas and improve freight productivity nation’s rail network. across the nation. One of the challenges is having a rail construction capability which The plan will be a collaboration between is able to match the demand created by governments and the rail industry as each the proposed new projects. There is also an has a part to play in delivering the actions. opportunity to leverage the investment to improve operational effectiveness and Australia is currently experiencing a major safety, as well as provide economic wave of public investment in the delivery of opportunities in the rail manufacturing rail infrastructure. A BIS Oxford and sector. Australasian Railway Association (ARA) report (November 2018) has found that rail As new infrastructure projects are construction activity rose by 18 per cent to completed and move to operations and as $4.5bn total capital expenditure in 2016-17 rail operators update their fleet, there will and expanded again in 2017-18 to $7bn. The be a greater need for passenger car sets as medium-term outlook for the rail well as locomotives and rolling stock. This construction sector is the strongest of all provides an opportunity for local engineering construction markets in manufacturers to be able to build those Australia, with the annual increase passenger car sets and other rolling stock expected to surpass the resources-driven or to supply components. peak of $8.3bn by 2021. Total activity is expected to grow around 8 per cent per annum over the five years to 2022-23. 3 National Rail Action Plan
1. Workforce A number of studies have highlighted concerns over capacity constraints in both skilled and unskilled labour. BIS Oxford’s analysis notes that the rail construction sector is likely to experience challenges in sourcing skilled workers over the coming decade. Indeed, the sector is already experiencing challenges with the number of train drivers, controllers, track workers, signalling engineers and technicians, maintenance workers, electrical technicians and tunnellers not keeping up with growing demand. The rail industry has called for Infrastructure Australia publishes the governments to work together to help meet Infrastructure Priority List. The Priority List these challenges. The ARA has called for a is regularly reviewed and updated as collaborative working group to develop a proposals for nationally significant projects national rail workforce strategy to manage move through stages of development and skills shortages and facilitate enhanced rail delivery. The Priority List is also available skills development and workforce as an interactive map on the Infrastructure capability across construction, operation Australia website. State infrastructure and maintenance. agencies maintain similar lists of projects for their jurisdiction. This Plan focuses on skill issues that are specific to the rail sector. Some actions will be undertaken collaboratively with industry and some actions will be led by industry. Planning to acquire skills for rail construction projects will be helped by a transparent investment pipeline. Governments have identified that a consistent and reliable infrastructure investment pipeline is a key driver in achieving value for money in infrastructure provision. There is significant information that outlines the investment by governments in transport infrastructure. The Australian Government’s National Infrastructure Construction Schedule (NICS) links to state, territory and industry-led infrastructure websites, that provide investors and construction contractors with detailed information on infrastructure pipelines, tendering and contracting opportunities. 4 National Rail Action Plan
2. Harmonisation and standardisation Australia’s railways have mostly developed as isolated networks where each has applied standards suitable for their circumstances. This is most notably reflected in the different rail gauges across Australia. However, there remain different standards for rolling stock and components, operating rules for rail infrastructure and for communications and control systems. The significant expansion in the rail network provides the opportunity to move to a network that operates seamlessly across Australia. The Bureau of Transport and Regional Improved safety, efficiency and Economics (BITRE) Optimising harmonisation in the Australian railway manufacturing opportunities industry (2006) identifies that in addition to The growth of the rail sector provides an different gauges, other technical, opportunity for local manufacturers to be operational, regulatory and administrative able to build the passenger car sets and inconsistencies have also impeded the flow other rolling stock or to supply of rail traffic. BITRE notes that components. The Senate’s Rural and harmonisation may deliver benefits such Regional Affairs and Transport References as lower input costs, improvements in Committee 2017 Inquiry into Australia’s rail operational efficiency, higher inherent industry noted that rather than Australia safety and lower training costs. It can also being represented by one central, national widen rail’s freight market. Conversely, it market, Australia has historically been notes there are commercial pressures and made up of a number of smaller, historical legacies that mitigate against fragmented rail markets. This continues to greater standardisation. The report also act as a deterrent to investment in larger notes the potential folly of government scale manufacture and innovation. Scale setting standards for rail when rail also acts as a barrier to expansion. The transport operators have superior problems are compounded by the knowledge. Therefore, any move to greater inefficiencies associated with harmonisation and standardisation will be manufacturing railway products to done in close cooperation with the rail different standards and specifications. industry. Under Australia’s co-regulatory model, the Rail Industry Safety and Standards Board (RISSB) develops and manages standards, rules, guidance materials and other documents to assist the rail industry to manage rail safety, improve efficiency and achieve safety outcomes through standardisation, interoperability and harmonisation. This includes the Australian Network Rules & Procedures (ANRP) which is the master set of rules and procedures that define how Rail Transport Operators operate safely on the Australian rail network. 5 National Rail Action Plan
Infrastructure standards There are eight Rail Infrastructure Managers in Australia and more than 50 In most cases the rail industry is vertically above-rail operators, including freight and separated, with above rail operations passenger operations. When new typically separated from below-rail. This infrastructure is built, each RIM individually separation is reflected in the law. Rail determines the technical standards it operations in Australia are regulated under requires to enable it to meet its safety the Rail Safety National Law that is obligations under the national law. adopted or applied in each Australian state or territory. The National Law defines the This multiplicity of different standards, and responsibilities of Rail Infrastructure different infrastructure outcomes, across Managers (RIMs): this is the person or Australia (both on networks within and organisation that has effective control and outside each State/Territory) is causing manages the rail infrastructure. This isn’t inefficiencies for government and industry, always the infrastructure owner. RIMs are including higher procurement, delivery and responsible for below rail operations. maintenance costs. The problem has become critical during the current period The National Law also defines the of unprecedented investment by responsibilities of rolling stock operators. governments in new rail projects. Rolling stock operators have effective control and management of the operation or movement of rolling stock on rail Network operating rules infrastructure for a railway. Most rail freight trips in Australia do not The regulatory framework is co-regulatory occur on a single network but typically in that the Australian governments do not span several networks. For example, in directly prescribe the standards or rules by Victoria a relatively short freight trip from which railways need to operate. Rather, Gippsland to the Port of Melbourne they set a performance requirement on requires a train to travel on both regional railways to operate safely and provide and metropolitan networks, each controlled operational flexibility to establish and by two different Rail Infrastructure implement standards, rules and methods of Managers – V/Line and MTM. operation necessary to meet the safety performance requirement of their Safe-working rules tend to reflect in part operations. historic state-based rules in each jurisdiction, as well as the ‘overlay’ of The co-regulatory safety model and the individual networks controlled by different commercial access frameworks have Rail Infrastructure Managers. evolved in Australia over the last 20 years, as the nation has moved away from As a result, there are at least 11 different vertically integrated, state-based signalling and train control systems in use monopoly arrangements. across Australia, with each state having its own distinct safe-working rules – meaning The new approach is consistent with there are around 17 distinct safe-working world’s best practice from both a safety systems across Australia. This extensive and commercial perspective. array of systems imposes additional costs in management, maintenance and • It ensures that safety and operational competency training for both network risks are clearly and contractually managers and operators. allocated between network managers and above-rail operators. • It creates a competitive, private-sector market for above-rail operations, resulting in significant shifts in rail’s share of the freight task in various market segments (85% between Perth and Melbourne). However, it also results in less ability of governments to coordinate standards for rail operations and for infrastructure. This results in there being less ability for there to be nationally consistent standards for rail infrastructure and for operations, including for interoperability of communications and control systems. 6 National Rail Action Plan
About the plan This plan sets a number of actions which will support the rail industry’s efforts to undertake workforce planning, address skill shortages and build and operate an expanded rail network, covering the following areas: • Identifying critical skill needs and options to meet these needs – to identify the critical skills needed by Each section will set out: industry and options to address these needs across the rail construction, operation and manufacturing • the outcome the Transport and sectors. Infrastructure Council expects; • Improving network and infrastructure harmonisation • the reasons for, and benefits of, this and interoperability – by capitalising on the outcome; opportunity created by infrastructure spending and • work underway that is contributing to advances in technology to improve the consistency of the expected outcome; rules for using and building transport infrastructure and the ability to communicate across the rail network. • who will lead the work; and This work will focus on the development of common • how the work will be funded. rules for railway operations, common standards for rail infrastructure and for rolling stock, and to improve the interoperability of train control and communications systems. National Rail Action Plan Government and industry working groups PHASE Skills & labour Common standards Interoperability Construction Operation and Components for rolling stock Common Communication manufacturing and infrastructure operating rules and control systems Plan to grow Plan for rail specific Common standards for rolling Common Interoperability critical rail operating and stock components and standard of control and sector skills manufacturing infrastructure operating rules communications skills for safe work systems CRITICAL COMPONENTS Rail skills such as Rail skills such as Development of common standards Development of standard operating tunnelling and signalling rolling stock components and major rules that would apply across the rail specific engineer and infrastructure elements network and the ability of train electrical train drivers control and communications 7 National Rail Action Plan
1. Meeting rail’s critical skills and labour needs The large increase in rail investment by governments creates challenges and opportunities in terms of skill and labour requirements including in construction, operations and manufacturing. Critical skills across each of these areas often require specialised training pathways. These pathways rely on public and private resources and institutions, including the training and education sectors. Construction Operational and manufacturing Construction is Australia’s third largest industry. It is The rail industry has a number of skilled jobs where highly competitive. Rail is just one component of the relevant training is best provided by those already in construction sector. Many of the skills required in the the industry such as train and tram drivers, train rail construction sector are portable across various controllers, railway signal operators. Similarly, there sectors, including the civil construction sector. As are several variously skilled jobs where the training acknowledged by the ARA and BIS Oxford, the rail for the role needs to be, or is best provided by, the rail construction sub-industry will need to draw operators. This includes jobs such as rail extensively from other parts of the construction maintenance worker and key rail specific industry (and elsewhere) to ensure the timely delivery administration and management roles. of projects. There is also a need for the rail industry to continue The Transport and Infrastructure Council notes there to develop people to have more specialised skill, e.g. is an existing joint forum of leaders from the engineers. The actions proposed in this plan are construction industry – the Construction Industry aimed at the development and training (and/or Leadership Forum (CILF). This group is comprised of retaining) such key staff. members from the Australian Constructors In terms of an audit, the Victorian Government has Association (ACA) and the Victorian and New South commissioned a study with the Rail Manufacturing Wales public sectors. The CILF works to address Cooperative Research Centre to investigate and capability and capacity constraints in the report on skills shortages in the train, tram and bus construction sector. In light of the significant work industry. The research will suggest strategies to already underway through the CILF, and to avoid improve workforce attraction and staff retention to duplication, this action plan focuses on critical rail ensure there is a sustainable industry that continues specific skills, e.g. high voltage electrical work, train to meet Victoria’s transport and manufacturing signalling, rail tunnelling. needs. In addition, the Council recognises that governments and industry are already partnering to develop Skills Council critical rail skills. For example, the Victorian The Council of Australian Governments (COAG) has Tunnelling Centre is being built at Holmesglen recently established a new COAG Skills Council to Institute’s Chadstone campus to train people in drive skills reform. Reporting to the new Skills Council, underground construction and tunnelling, the Level the Australian Industry and Skills Committee Crossing Removal Authority has developed nine new provides industry with a formal role in advising on training programs and a new Inland Rail Skills policy directions and decision making in the national Academy has recently been launched by Australian training system. There are a large number of Rail Track Corporation (ARTC). individual industry reference committees that advise on the development of national training packages, including for the rail industry and civil infrastructure. Any actions in the plan that go to training qualifications or broader skill system issues will need to be raised with the relevant officials and ministers responsible for skills issues. 8 National Rail Action Plan
Why Existing work Actions Lead By when Funding Outcome 1.a Government and industry understand the critical rail sector skill needs Current analysis has BIS Oxford Skills A report to Council on Labour and May 2020 Within indicated there will be Capability Study the critical rail sector Skills Working existing skills shortages across a (ARA) skills required across the Group budgets number of occupations nation. in the rail industry. Some of these shortages (especially the lower skilled roles) will be easier to resolve by industry. Many of the skills in demand have a skill specialisation that is in addition to the occupation’s qualifications. It is expected there will be a smaller number of highly skilled occupations which are critical to the delivery and operation of rail infrastructure (e.g. rail signalling engineers) and may need focused efforts to identify those skills gaps. Outcome 1.b Government and industry understand how these critical skills are established A skills pathway specific BIS Oxford Skills Audit of existing Labour and November Within to each in-demand skill Capability Study training, programs and Skills Working 2020 existing will be essential to (ARA) facilities as well as Group budgets ensuring that identified government policies and critical skill gaps are levers and other factors addressed. that will determine whether critical rail skills needs are met. Consultation will be required with officials responsible for skills matters. Consideration will need to be given to the appropriate role for industry and governments in respect of skill development. 9 National Rail Action Plan
Why Existing work Actions Lead By when Funding Outcome 1.c Governments and industry work together to improve portability of skills across jurisdictions Portability will allow Rail Industry A report that identifies NTC in May 2020 Funding employees to more Reference barriers to portability of conjunction to be easily move to areas of Committee critical skills (which with Rail resolved higher need without the (training packages) could include: training Industry need for additional packages; specific asset Operators, costly training. owner requirements; jurisdictions licence conditions; and the legislation; work health Commonwealth and safety departments requirements; and/or responsible for November industrial relations infrastructure 2020 requirements). and skills Recommendations to improve portability. Consultation will be required with officials responsible for skills matters and with rail industry operators. Expert input will likely be needed from the Rail Industry Reference Committee (which develops and manages training packages) on the barriers and possible solutions to improving portability. Outcome 1.d Government and industry understand and have strategies to address specific skills shortage challenges in the rail manufacturing industry It is critical to have Asset and Networks A Victorian Government Victoria October Within strategies to address Division (A&N) in study in conjunction 2020 existing skills shortages in the the Victorian with the Rail budgets rail manufacturing Department of Manufacturing industries in order to Transport has Cooperative Research manufacture in consulted with Centre will investigate Australia. Metro Trains and report on skills Melbourne, Yarra shortages in the train, Trams, Public tram and bus industry. Transport Victoria and several bus The research will operators. These suggest strategies to operators have improve workforce reported a attraction and staff significant retention, to ensure emerging skills there is a sustainable shortage. industry that continues to meet Victoria’s transport needs. 10 National Rail Action Plan
Why Existing work Actions Lead By when Funding Outcome 1.e Rail skill needs are taken into account as part of the COAG Skills Council’s reform priorities and the reform roadmap it is developing. The COAG meeting of Skills ministers will Chair of the Transport TIC Chair December N/A August 2019 resolved to work through the and Infrastructure 2019 establish a new COAG new COAG Skills Council (TIC) to write to Skills Council to deliver Council, in the Chair of the Skills a VET system which consultation with Council raising the helps all Australians get education importance of rail skills the skills they need for ministers, to advise development. employment. leaders on future reform priorities by It is important ministers the end of 2019 and responsible for skills and provide a reform Education take account roadmap to COAG of the rail sector’s needs in early 2020. as part of future reform priorities. Outcome 1.f Rail industry attracts and retains quality, diverse staff The rail industry needs Industry works together Industry Ongoing Industry to be seen as an to develop, fund and funding attractive and viable deliver ‘branding long-term prospect for campaign’. future employees, so it can attract a workforce with critical skills. Outcome 1.g Rail industry continues to invest in skills and workforce Industry investment is Training centres Industry continues to Industry Ongoing Industry critical as it is generally and programs take a coordinated funding best placed to including approach to investment understand the discreet in its skills and skills needs of its • Australian Rail workforce. workforce. Track Corporation (ARTC) Inland Rail Skills Academy. • The Rail Academy Newport (Victoria). • Centre of Excellence in Rail Training. 11 National Rail Action Plan
2. Common rules for infrastructure standards In rail, there is a strong link between the regulatory settings, operational requirements and rail infrastructure. The Rail Safety National Law defines infrastructure to standardised specifications, engineering solutions be the facilities necessary to enable a railway to and methodologies rather than developing bespoke operate and includes railway tracks and associated solutions on a project basis. Further work is required railway track structures. to determine the extent of the problem, and possible solutions. Governments and industry have highlighted a need for greater use of standardised documentation and design detail to minimise disparity in requirements for infrastructure, for example, through more Why Existing work Actions Lead By when Funding Outcome 2.a Industry establishes a higher level of standardisation / harmonisation of infrastructure standards Various governments Conduct an audit of RISSB Nov 2020 Funding have raised issues existing infrastructure to be regarding the variations standards and identify resolved in infrastructure opportunities for standards used by standardisation. different operators. This is leading to concerns RISSB to undertake a regarding productivity, survey of rail operators interoperability and to understand where the safety. differences are between the jurisdictions and rank these by: • How significant each difference is (i.e. how much effort it would take to change it) • What the value of changing it would be. 12 National Rail Action Plan
3. Common standards for components for rolling stock Australia has a manufacturing base that could support the rail industry. It could be self-sufficient in the development and supply of rolling stock and a wide variety of components. The large investment in rail projects and investment in rail operations will mean additional rolling stock will be needed to operate on the new or improved lines. This will be in addition to any routine replacement of rolling stock and components. To support this, Australia needs clarity around the A local manufacturing Industry faces challenges from number and type of trains to be purchased in coming cheap imports. The IBISWorld Railway Equipment years. A delivery timetable would assist the Manufacturing and Repair - Australia Market development of a rail manufacturing industry. This Research Report (May 2019) notes that there are will in part be addressed by the work on the rail three important success factors for the railway pipeline. In addition, common standards for rolling equipment manufacturing and repair industry. These stock are critical. Traditionally, Australian rail has are: had diverse standards and requirements for each state and territory. This has resulted in a fragmented • undertaking technical research and development; rail manufacturing industry and small disparate • economies of scale; and markets. Using key standard components will provide • well-developed internal processes. significant opportunities for cost savings and investments in jobs in the rail manufacturing sector, Technical research and development is being e.g. resulting in longer production runs and lower unit undertaken by the industry and the Rail costs. This will allow local manufacturers to be able to Manufacturing Cooperative Research Centre and is better compete to supply components within not covered in this plan. This plan proposes to Australia and abroad. address improving common standards for essential rail components as outlined below. Why Existing work Actions Lead By when Funding Outcome 3.a Industry establishes higher level of standardisation / harmonisation of rollingstock components Standardised RISSB is working 1. Release standards for RISSB Completed Already components will allow with governments glazing and bogies. funded local companies to more on standards for easily supply products components for rail 2. Develop a further six November (Funding for passenger car set rollingstock. standards: 2020 to be construction and for • egress (including determined repair. emergency egress) between jurisdictions A forward plan for • crashworthiness and RISSB) standardising key • energy storage components will provide • Heating, Ventilation greater certainty for the and Airconditioning rail component (HVAC) manufacturing industry. • emissions (diesel powered passenger trains). 3. Develop a 3 year plan November RISSB for developing 2020 standards for other key components. 13 National Rail Action Plan
4. Common rules for safe work Australian railways should operate as a system. There are eight primary below-rail companies (excluding geographically separate Pilbara and Tasrail networks) and more than 50 above-rail operators, including freight and passenger operations. There are 29,000km of interconnected network spanning from the Perth to Brisbane and from Melbourne, via Adelaide to Darwin. Many rail trips across this system are not on a single network but typically span several networks, with each network operating as an independent business. There are still three different rail gauges in use in Australia. Standardising common aspects of rail operations The Rail Industry Safety and Standards Board can improve safety and reduce operating costs (RISSB), which is owned by industry, has developed across the system. Currently, separate networks had the Operational Concept for the Australian Rail different rules for safe work around trains and for Network. The report proposes a method to work operating trains. These different rules require specific towards nationally consistent key rules for rail training on each network. In addition, requiring operation. This work can be used as a basis for different rules for the same operation in different developing key common rules for safe work and rail states can create a barrier to mobility of staff and infrastructure use which will in turn improve increases the cost of training. efficiency and safety in rail operations. Why Existing work Actions Lead By when Funding Outcome 4.a Improved harmonisation of rail operating rules and work standards Various governments Over the past three RISSB finalise the RISSB and May 2020 Funding have raised an issue years, industry has National Rules Project. other to be regarding the variations been working with industry resolved in infrastructure RISSB to develop a standards used by set of national Rewrite the Australian Nov 2020 different operators on rules. This initial Network Rules and the same network. This project is well Procedures (ANRP) is leading to concerns advanced and is regarding productivity scheduled for RISSB to undertake a Nov 2020 and safety. completion in early survey of rail operators 2020. to understand where the A set of national rules differences are between (on operating rules and the jurisdictions and safe work standards) will rank these by: enable an optimal approach to improving • how significant each harmonisation. difference is; • how much effort/cost it would take to change it; • what the value of changing it would be. 14 National Rail Action Plan
5. Interoperable communication and control systems There are at least 11 different train control systems in use across Australia. Systems in use can broadly be classified as: progressed in Australia, each is designed to meet the challenges of the different types of railway 1. Signalling – provides for efficient operations so is operations, from less used interstate and regional used on the busier lines but with the drawback of trains, to dense intra-city rail lines. These new high levels of trackside equipment hence higher systems optimise train control and can automatically construction, operation and maintenance costs. slow trains to maximise network efficiency and 2. Train Order Working (TOW) – at least six different improve safety. forms are in use, ranging from manual TOW, though to computer-assisted TOW (henceforth Barriers to system wide investment in modernised cTOW) which can use voice or data transmission of and interoperable command and control systems authorisations to proceed/not proceed and limit include: speeds. • the distribution of costs and benefits including 3. Token – a legacy system, Staff and Ticket (S&T) (perceptions at least of) safety and environmental remains in use only on the most marginal corridors externalities; and in Victoria. This is a fully manual system. • fragmented economic regulatory (access) arrangements including different regulators and Rail network operators are increasingly adopting regulatory treatment (including return on capital). more sophisticated train control systems. There are three train control system improvements being Why Existing work Actions Lead By when Funding Outcome 5.a An assessment of the costs and benefits for interoperable system implementation options. The roll out of inter- ARA, the Freight on Complete a report for Industry November Funding operable systems Rail Group (FORG) government based on working group 2020 to be technology has and RISSB have all network business cases consisting of resolved significant benefits to commissioned or for the implementation network greater utilization of undertaken work on of interoperable owners and existing assets and train operating and systems, highlighting the operators. improvement in communications benefits available and productivity. These systems. the recommended role benefits however do not of government to deliver accrue to individual These audits those benefits. asset owners, impacting however do not their commercial address business cases and commercial highlighting a potential business cases and need for government what government support. support is needed to deliver the full potential productivity improvements available. 15 National Rail Action Plan
Why Existing work Actions Lead By when Funding Outcome 5.b National interoperable communications-based control systems. Leveraging the ARTC and TfNSW Develop a strategy to RISSB July 2021 Funding completed audits of are working on roll out an interoperable to be train control systems, greater control system based on resolved industry in collaboration interoperability an investigation of with RISSB is to develop within the NSW technological options. the appropriate roll out network. strategy to deliver interoperable control systems across to ensure strategic alignment across industry on what is required to deliver an interoperable system. 16 National Rail Action Plan
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