AUSTRALIAN RAIL INDUSTRY REPORT

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1 AUSTRALIAN RAIL INDUSTRY REPORT 2010

2 AUSTRALIAN RAIL INDUSTRY REPOR T RT PREPARED FOR PREPARED BY THE ABN Apelbaum Consulting Group Pty Ltd Phone: admin@apelbaumconsulting.com.au DECEMBER

3 TABLE OF CONTENTS HIGHLIGHTS 1 Page BACKGROUND 5 The Data 5 Constant Group Analysis 5 General 5 TRANSPORT TASK 6 Passenger 6 Freight 7 FUEL CONSUMPTION 19 APPENDIX 1: DEFINITIONS 21 The Australian Railways Industry 21 Area Of Operation 21 Other Definitions 22 APPENDIX 2: PARTICIPATING COMPANIES 23 BIBLIOGRAPHY 23 LIST OF TABLES Highlights 3-4 Table 1 The Australian Passenger Task 8 Table 2 Tonnes Carried By Australian Rail 9-13 Table 3 Net Tonne-Kilometres Table 4 Direct Fuel Consumed By Passenger Services 19 Table 5 Direct Fuel Consumed By Freight Services 20

4 HIGHLIGHTS THE 2010 AUSTRALIAN RAIL INDUSTRY REPORT QUANTIFIES THE CONTRIBUTION OF RAIL TO THE AUSTRALIAN TRANSPORT TASK AND ASSOCIATED ENERGY CONSUMPTION. THIS REPORT WAS PREPARED FOR THE AUSTRALASIAN RAILWAY ASSOCIATION BY THE APELBAUM CONSULTING GROUP. Transport Task Passenger National rail passenger journeys grew by 48.4 million journeys (or 6.7 per cent) to million journeys in 2008/09. For the first time since the survey commenced, annual national rail journeys declined in 2009/10 to million journeys. Network expansion resulted in a 1.7 per cent increase in average journey distance in 2009/10, contributing to the national rail passenger task growing by 1.2 per cent to 14.1 billion passengerkilometres in 2009/10. The annual light rail passenger-kilometre task grew by 11.7 per cent to 0.6 billion passenger-kilometres in 2008/09. Despite a 0.2 per cent increase in average distance travelled, the decline in journeys diminished the light rail task by 1.2 per cent in 2009/10. The national urban heavy rail passenger task grew by 1.0 per cent in 2009/10 compared with 4.4 per cent in 2008/09. Despite continuing declines in the average distance travelled, the national non-urban passenger task grew by 7.1 per cent in 2008/09 and 2.9 per cent in 2009/10 to 2.2 billion passenger-kilometres.; Light rail journeys grew by 11.7 per cent to million journeys in 2008/09 and then declined by 1.4 per cent to million journeys in 2009/10. Urban heavy rail passenger journeys increased by 5.4 per cent to million journeys in 2008/09 then declined by 0.2 per cent to million journeys in 2009/10. Heavy non-urban rail journeys grew by 8.6 per cent in 2008/09 and then by a further 3.4 per cent to 15.0 million journeys in 2009/10. While the national average trip length for journeys declined by 1.5 per cent in 2008/09, significant growth in journeys facilitated a 5.1 per cent increase in the national rail passenger task during that period. Freight Total freight carried by Australian rail increased by 5.2 per cent in 2008/09 and a further 12.9 per cent to million tonnes in 2009/10. As at 2009/10, ore contributed 48.3 per cent of the national rail tonnes, followed by coal (37.3 per cent), other bulk products (6.7 per cent), sugar (3.2 per cent), bauxite (2.1 per cent), non-bulk products (2.1 per cent), and steel (0.3 per cent). Non-bulk traffics declined by 11.6 per cent in 2008/09 and 4.8 per cent in 2009/10. Australian Rail The 2010 Industry Report 1

5 Cargo carried by ancillary rail services increased by 9.2 per cent in 2008/09 and 16.4 per cent in 2009/10 to million tonnes in 2009/10. On a constant group basis, the annual growth rate for the national rail freight task (measured as tonne-kilometres) equated to 9.7 per cent and 8.0 per cent in 2008/09 and 2008/09 respectively, to billion tonne-kilometres in 2009/10. The role of H&R rail services in undertaking the national rail freight task continues to decline equating to 46.8 per cent of the total task in 2008/09 and 45.7 per cent in 2009/10. The non-bulk rail freight task declined by 8.4 per cent and 5.2 per cent in 2008/09 and 2009/10 respectively, to 28.4 billion tonne-kilometres in 2009/10. Fuel Consumed End-use electricity consumption grew by 8.7 per cent compared with 2007/08 to 1,917,838,799 KWh in 2009/10. Diesel consumed by all rail services grew 3.1 per cent in 2008/09 and 2.1 per cent in 2009/10 to million litres. Electricity consumed by passenger operations increased by 7.3 per cent in 2008/09 and by 2.4 per cent in 2009/10. All of the growth resulted from urban services. Almost 92 per cent of diesel was expended by the freight sector which increased annual diesel consumption by 3.1 per cent in 2008/09 and 2.2 per cent in 2009/10. Australian Rail The 2010 Industry Report 2

6 HIGHLIGHTS Australian Rail The 2010 Industry Report 3

7 HIGHLIGHTS (CONT) n.a. not available. - nil or negligible. Constant group excludes adjustment for hook and pull for 2005 to 2007 and additional operators in 2008/09 and 2009/10. The accuracy of the 2005 to 2007 surveys was further enhanced to quantify hook and pull cargoes. Sources: Apelbaum Consulting Group. ARA (2009). Australian Rail Operators, Managers and Suppliers, pers. comm. Australian Rail The 2010 Industry Report 4

8 BACKGROUND This report presents the findings of the seventh Australian Rail Industry Survey prepared for the Australasian Railway Association Inc (ARA) by the Apelbaum Consulting Group Pty Ltd (ACG). The survey is confined to the transport task and fuel consumed for 2008/09 and 2009/10. Delineation of the freight task by commodity is based upon individual returns reflecting the top five commodities of individual operators. Accordingly, aggregates by commodity should not be interpreted as national totals for each commodity. The purpose of the annual review is to: provide an annual statistical perspective of the rail industry s performance; present the statistics in a manner conducive to policy development and informed debate. The 2010 survey reflects contributions from fifteen (15) rail operators and managers and data from alternative company sources. Collectively, industry stakeholders contributed to the carriage of 97 per cent of Australian rail freight tonnes and 100 per cent of rail passenger journeys. THE DATA The data relates to the twelve month period ending 30 June 2009 and 30 June 2010, incorporating those businesses or commercial activities pertaining wholly or principally to the carriage of passengers or freight. While it is statistically desirable to aggregate data according to identical reporting periods, this was not possible. Of the fifteen (15) stakeholders participating in the survey, only one (1) did not prepare accounts on a fiscal year basis. However, this respondent has indicated that the data provided is representative of the fiscal year performance. Appendix 2 details the 2009 and 2010 survey participants. CONSTANT GROUP ANALYSIS As the number of survey respondents and the survey scope have varied between 2003 and 2010, precise comparison between the surveys is not possible. Rather than adjust for differences by weighting the data, entities that responded to all surveys have been treated as a constant group. In this way, any bias arising from changes to survey coverage is removed. GENERAL The analysis presented in this report may not reconcile with earlier editions due to industry participants revising earlier data and changes to definitions. Surveys were forwarded to the ACG in strict confidence. Information provided by a particular respondent(s) will not be made available to the ARA, any company, body or individual. Any reference to the rail industry should be interpreted as those rail operators, managers, suppliers, service providers and stakeholders participating in the survey. The statistics have been assessed for consistency but have not been audited. The Apelbaum Consulting Group Pty Ltd cannot be accountable for any errors in the data provided. The effort required by survey participants in participating in the annual ARA review is often under-estimated by those external to the industry. The contributions of the survey participants are gratefully acknowledged and appreciated. Australian Rail The 2010 Industry Report 5

9 TRANSPORT TASK PASSENGER National rail passenger journeys grew by 48.4 million journeys (or 6.7 per cent) to million journeys in 2008/09, largely as a result of increased population growth, continued improvements in safety, overhaul of rolling-stock on major services, improved service planning and scheduling. For the first time since the survey commenced, annual national rail journeys declined in 2009/10 by 3.2 million journeys (or 0.4 per cent) to million journeys, predominantly due to the effects of the global financial crisis and network capacity constraints post substantial increases in demand during the previous two years. Since 2002/03 national journeys have grown by million journeys (or 27.0 per cent). While the national average trip length for journeys declined by 1.5 per cent in 2008/09, significant growth in journeys facilitated a 5.1 per cent growth in the national rail passenger task during that period. Network expansion resulted in a 1.7 per cent increase in average journey distance to 18.3 kilometres in 2009/10 (on a system-wide basis), ensuring that the national rail passenger task grew by 0.2 billion (or 1.2 per cent) to 14.1 billion passenger-kilometers in 2009/10. Despite a 0.2 per cent increase in average distance travelled (to 4.2 kilometres), the decline in journeys diminished the light rail task by 1.2 per cent (compared to the previous year) to 0.6 billion passenger-kilometres in 2009/10. URBAN HEAVY RAIL Annual urban heavy rail passenger journeys increased by 31.0 million (or 5.4 per cent) to million journeys in 2008/09, then declined by 1.5 million (or 0.2 per cent) in 2009/10. Compared with 2002/03, annual patronage on Australian heavy rail urban passenger services has grown by million journeys (or 27.7 per cent). Investment in the urban rail network (particularly in Western Australia) contributed to national average urban trip lengths increasing by 0.2 kilometres (or 1.3 per cent) in Despite a decline in journeys, the national urban passenger task grew by 0.1 billion passenger-kilometres (or 1.0 per cent) in 2009/10 compared with 0.5 billion passenger-kilometres (or 4.4 per cent) in 2008/09. Relative to 2002/03, the annual Australian heavy rail urban passenger task increased by 2.9 billion passenger-kilometres (or 35.0 per cent). LIGHT RAIL National light rail journeys (incorporating trams and monorail) grew by 16.3 million (or 11.7 per cent) to million journeys in 2008/09 and then declined by 2.2 million journeys (or 1.4 per cent) to million journeys in 2009/10. The share of urban rail journeys undertaken by light rail marginally declined from 21.0 per cent in 2002/03 to 20.3 per cent in 2009/10. With little change in average distance travelled, the growth in passenger journeys resulted in an 11.7 per cent increase in the annual light rail passenger-kilometre task (to 0.6 billion passenger-kilometres) in 2008/09. NON-URBAN PASSENGER TASK Heavy non-urban rail journeys grew by 8.6 per cent to 14.5 million journeys in 2008/09 and then by a further 3.4 per cent to 15.0 million journeys in 2009/10, largely due to infrastructure upgrades in Victoria 1. 1 Some V/Line services operate at urban locations. VLine indicate that these constitute 19 per cent and 18 per cent of total V/Line trips in 2008/09 and 2009/10, respectively. These trips add 1.4 per cent to the reported number of urban journeys. Trips to these urban locations have been included in V/Line s total non urban journeys data for ease of reporting. Data pertaining to pkm or fuel consumed for the urban trips are not available. Australian Rail The 2010 Industry Report 6

10 Despite continuing declines in the average distance travelled (by 1.4 per cent and 0.5 per cent, in 2008/09 and 2009/10 respectively), the national non-urban passenger task grew by 7.1 per cent in 2008/09 and a further 2.9 per cent in 2009/10 to 2.2 billion passenger-kilometres. Since 2002/03, the annual non-urban passenger task has grown by 0.2 billion passenger-kilometres (or 7.6 per cent). Cargo carried by ancillary rail services 2 increased by 9.2 per cent (or 30.9 million tonnes) in 2008/09 and a further 60.5 million tonnes (or 16.4 per cent) to million tonnes in 2009/10. Growth in ancillary rail tonnes largely emanated from the ore traffics. FREIGHT TASK FREIGHT TONNES On a constant group basis, total freight carried by Australian rail increased by 37.4 million tonnes (or 5.2 per cent) in 2008/09 and a further 97.7 million tonnes (or 12.9 per cent) in 2009/10 to million tonnes, primarily due to escalated demand for ore and coal. The ore and coal trades increased by 30.5 per cent and 11.7 per cent respectively, since 2007/08. Compared with 2002/03, annual tonnes grew by million, or 48.1 per cent (on a constant group basis). The net tonne-kilometre task increased by 37.3 billion tonne-kilometres (or 16.9 per cent) since 2007/08, to billion tonne-kilometres in 2009/10. On a constant group basis, the annual growth rate equated to 8.2 per cent and 8.0 per cent in 2008/09 and 2008/09, respectively. The growth in the national rail freight task is largely influenced by increased demand for Australian ore, with ore constituting 56.5 per cent of the national task in 2009/10, compared with 42.6 per cent in 2002/03. The role of H&R rail services in undertaking the national rail freight task continues to decline equating to 46.8 per cent in 2008/09 and 45.7 per cent in 2009/10, compared with 57.9 per cent in 2002/03. As at 2009/10, ore contributed 48.3 per cent of the national rail tonnes, followed by coal (37.3 per cent), other bulk products (6.7 per cent), sugar (3.2 per cent), bauxite (2.1 per cent), non-bulk products (2.1 per cent) and steel (0.3 per cent). The role of hire and reward (H&R) rail services in the movement of cargo carried declined from 53.0 per cent in 2007/08 to 49.8 per cent in 2009/10. The longer term trend is also one of decline with the current role of H&R rail (in the movement of rail freight) being substantially lower than the 57.3 per cent evident in 2002/03. Non-bulk traffics declined by 11.6 per cent or 2.9 million tonnes in 2008/09 and 4.8 per cent or 0.9 million tonnes in 2009/10. The 2009/10 non-bulk traffic now approximates that evidenced in 2004/05. The non-bulk rail freight task declined by 2.8 billion tonne-kilometres (or 8.4 per cent) in 2008/09 and 1.6 billion tonne-kilometres (or 5.2 per cent) in 2009/10 to 28.4 billion tonnekilometres. The interstate non-bulk rail freight task now constitutes 19.4 per cent of the national H&R rail freight task and 8.9 per cent of the total rail freight task (compared with 12.4 per cent in 2002/03). Growth in both the average distance and throughput resulted in the ancillary rail tonne-kilometre task increasing by 18.1 billion tonne-kilometres (or 16.7 per cent) to billion tonne-kilometres in 2008/09. Despite a decline in the average distance travelled by ancillary rail services (of 5.4 per cent in 2009/10), growth in throughput, ensured that the ancillary tonne-kilometre task continued to grow (by 10.2 per cent) to billion tonne-kilometres in 2009/10. 2 The movement of an entity s own freight by in-house operators including hook and pull and the carriage of track/ballast etc for own purposes. Australian Rail The 2010 Industry Report 7

11 TABLE 1: THE AUSTRALIAN PASSENGER TASK Sources: Apelbaum Consulting Group. ARA (2009). Australian Rail Operators and Managers, pers. comm. Australian Rail The 2010 Industry Report 8

12 TABLE 2: TONNES CARRIED BY AUSTRALIAN RAIL (MILLION) Australian Rail The 2010 Industry Report 9

13 TABLE 2 CONT: TONNES CARRIED BY AUSTRALIAN RAIL (MILLION) Australian Rail The 2010 Industry Report 10

14 TABLE 2 CONT: TONNES CARRIED BY AUSTRALIAN RAIL (MILLION) Australian Rail The 2010 Industry Report 11

15 TABLE 2 CONT: TONNES CARRIED BY AUSTRALIAN RAIL (MILLION) Commodity Ancillary Services 2002/ / / / / / / /10 Col % Col % Col % Col % Col % Col % Col % Col % Top Five Bulk Commodities Ore % % % % % % % % Coal Sugar % % % % % % % % Bauxite % % % % % % % % Steel Other Bulk Traffics % % % % % % % % Sub total % % % % % % % % Non-Bulk Traffics % % % % Total % % % % % % % % Australian Rail The 2010 Industry Report 12

16 TABLE 2 CONT: TONNES CARRIED BY AUSTRALIAN RAIL (MILLION) - nil or negligible. Sources: Apelbaum Consulting Group. ARA (2009). Australian Rail Operators and Managers, pers. comm. Australian Rail The 2010 Industry Report 13

17 TABLE 3: NET TONNE-KILOMETRES (BILLION) Australian Rail The 2010 Industry Report 14

18 TABLE 3 CONT: NET TONNE-KILOMETRES (BILLION) Australian Rail The 2010 Industry Report 15

19 TABLE 3 CONT: NET TONNE-KILOMETRES (BILLION) Australian Rail The 2010 Industry Report 16

20 TABLE 3 CONT: NET TONNE-KILOMETRES (BILLION) Commodity Ancillary Services 2002/ / / / / / / /10 Col % Col % Col % Col % Col % Col % Col % Col % Net Tonne-Kilometres Top Five Bulk Commodities Ore % % % % % % % % Coal Steel Grain Bauxite % % % % % % % % Other Bulk Traffics % % % % % % % % Sub total % % % % % % % % Non-Bulk Traffics % % % % Total % % % % % % % % Australian Rail The 2010 Industry Report 17

21 TABLE 3 CONT: NET TONNE-KILOMETRES (BILLION) - nil or negligible. Sources: Apelbaum Consulting Group. ARA (2009). Australian Rail Operators and Managers, pers. comm. Australian Rail The 2010 Industry Report 18

22 FUEL CONSUMPTION End-use electricity consumptionn grew by million kilowatt hours (or 8.7 per cent) compared with that evidenced in 2007/08, to 1,917,838,799 KWh in 2009/10. During the corresponding period, electricity consumed by freight services increased by 26.2 million kilowatt hours or 5.5 per cent. Electricity consumed by passenger operations increased by 94.0 million kilowatt hours or 7.3 per cent in 2008/09 and by 33.5 million kilowatt hours (or 2.4 per cent) in 2009/10. All of the growth resulted from urban services. Since 2002/03, annual electricity consumption by Australian passenger rail services has grown by million kilowatt hours (or 71.1 per cent). While annual electricity consumption by non-urban rail declined by 1.3 million kilowatt hours (or 11.0 per cent) compared with 2007/08, diesel consumption grew by 3.9 million litres (or 5.9 per cent). Diesel consumed by all rail services grew by 27.6 million litres (or 3.1 per cent) in 2008/09 and a further 19.0 million litres (or 2.1 per cent) to million litres in 2009/10. Almost 92 per cent of diesel was expendedd by the freight sector which increased annual diesel consumption by 25.0 million litres (or 3.1 per cent) in 2008/09 and 18.8 million litres (or 2.22 per cent) in 2009/10. Diesel consumed in servicing non-bulk intrastate traffics continued to decline, diminishing by 2.6 per cent in 2008/09 and 18.9 per cent in 2009/10. TABLE 4: DIRECT FUEL CONSUMED BY PASSENGER SERVICES - nil or negligible. Sources: Apelbaum Consulting Group. ARA (2009). Australian Rail Operators and Managers, pers. comm. Australian Rail The 2010 Industry Report 19

23 TABLE 5: DIRECT FUEL CONSUMED BY FREIGHT SERVICES - nil or negligible. Sources: Apelbaum Consulting Group. ARA (2009). Australian Rail Operators and Managers, pers. comm. Australian Rail The 2010 Industry Report 20

24 APPENDIX 1: DEFINITIONS THE AUSTRALIAN RAILWAYS INDUSTRY The Australian railways industry is defined as those entities (whether commercial or otherwise) engaged either: primarily or partially in the transportation of freight or passengers by heavy or light rail (incorporating trams and monorail); in the management of rail infrastructure. Entities wholly involved in one or more of the following activities are excluded: railways operating as part of a local tourist attraction; third party activities such as insurance, legal, consultancy, training and finance services; forwarders and travel agents; providors and catering; signals, communications and regulations; container manufacturing, handling and packing; maintaining and repairing rollingstock or locomotives; construction or maintenance of permanent way. AREA OF OPERATION Capital City These areas are based on capital city Statistical Divisions as defined in the Australian Standard Geographical Classification (ASGC) Sydney this includes the area bounded by Gosford and Wyong; Hawkesbury and Blue Mountains; Campbelltown, Wollondilly and the Sutherland Local Government Areas. Melbourne this includes the area bounded by Werribee, Melton, Sunbury, Craigieburn, Whittlesea, Healesville, Warburton, Berwick, Pakenham and the whole of Mornington Peninsula. Brisbane this includes the area bounded by Caboolture, the eastern part of the Pine Rivers Shire, Redcliffe City, Redland Shire, Beenleigh, Logan City and the City of Ipswich. Adelaide this includes the area bounded by the Gulf of St. Vincent, the Gawler River and the Mount Lofty Ranges from Gawler to Bridgewater through Kangarilla and Willunga to Sellicks Beach. Perth this includes the area bounded by Yanchep and Bullsbrook; Warnbro, Keysbrook and Wooroloo. Hobart this includes the area bounded by New Norfolk; Sorell and Carlton Creek; Brighton and Snug. Australian Rail The 2010 Industry Report 21

25 Darwin this includes Darwin and suburbs, Palmerston and other areas north of the Howard Springs turnoff. Canberra this includes all of the Australian Capital Territory. State/Territory These are based on the Australian Standard Geographical Classification (ASGC) 1996 as being either Statistical Districts with a population greater than 40,000 or clusters of collection districts and other urban areas with a population greater than 40,000, based on the 1996 Population Census. New South Wales within the areas of Newcastle, Lake Macquarie, Port Stephens, Wollongong, Kiama, Bathurst-Orange, Maitland, Albury (excluding Wodonga), Hume, Wagga Wagga, Tweed Heads (excluding Gold Coast), Queanbeyan (excluding Canberra ACT), Coffs Harbour, Tamworth, Shell Harbour, Cessnock, Nelson Bay. Victoria within the areas of Geelong, Ballarat, Bendigo, Wodonga (excluding Albury), Shepparton, La Trobe Valley and Mildura. Queensland within the areas of The Sunshine Coast, Bundaberg, Hervey Bay, Rockhampton, Mackay, Townsville, Cairns, Gold Coast (excluding Tweed Heads), and Toowoomba. Western Australia within the areas of Mandurah, Bunbury and Rockingham. Tasmania within the areas of Launceston, Burnie, Devonport, Wynyard and Latrobe. This category is not applicable in South Australia, the Northern Territory and the Australian Capital Territory. OTHER DEFINITIONS Passenger journey - a journey made by a passenger, all or part of which was on a train or light rail vehicle. For urban regions, a journey is a point-to-point trip irrespective of the number of vehicles or modes used for the trip. For non-urban travel it is defined as a point-to-point journey but each change of vehicle along the route is counted as a separate journey. Passenger-kilometres the aggregate of the product of the number of passengers carried over each journey and the journey distance. If detailed trip data is not available, then estimate using the number of passenger journeys and the average trip distance. Hire and reward services transport operators that predominantly carry freight for third party entities on a commercial fee for service basis. Include hook and pull and carriage of track/ballast etc for own purposes. Ancillary services - the movement of an entity s own freight by in-house operators (for example, BHP Billiton iron ore railways). Include hook and pull and carriage of track/ballast etc for own purposes. Bulk cargoes include grain, other agriculture, livestock, coal, ore, other minerals, fertiliser, cement, timber, gypsum, petroleum products, forestry and steel. Non-bulk cargoes include containerised cargoes and cargoes supplied by forwarding agents and cargoes not listed above. Tonne-kilometre - aggregate of the product of the tonnes carried and the average distance travelled. Australian Rail The 2010 Industry Report 22

26 APPENDIX 2: PARTICIPATING COMPANIES Participating Australian rail operators, managers and industry stakeholders included 3 : Department of Transport, Victoria; El Zorro Transport; Freight Link Pty Ltd; Genesee & Wyoming Australia Pty Ltd; Great Southern Railway; Pacific National; The Pilbara Infrastructure Pty Ltd; Public Transport Authority of Western Australia; Queensland Rail; Rail Corporation of NSW; Rio Tinto Rail Division; SCT Logistics; TransAdelaide; Veolia Transport Sydney Pty Ltd; V/Line Pty Ltd. BIBLIOGRAPHY Australian Railway Association (2009), Australian Rail Industry Report 2008, Prepared by the Apelbaum Consulting Group Pty Ltd. 3 The task and fuel consumed by South Spur Rail Services Group, the Australian Sugar industry and Comalco were estimated by the ACG based upon data provided by the respective entities. Fuel consumed by BHP Billiton rail services was estimated by the ACG. Australian Rail The 2010 Industry Report 23

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