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FOR PUBLICATION UT4 Maintenance Submission FOR PUBLICATION 30 April 2013 UT4 Maintenance Submission THIS PAGE INTENTIONALLY BLANK UT4 Maintenance Submission 30th April 2013 TABLE OF CONTENTS Definitions and Abbreviations vii Executive Summary 10 1. Background 16 1.1 Submission Document Structure .................................................................................................... 16 1.2 Submission Development Process ................................................................................................ 17 1.2.1 Key Assumptions ...................................................................................................................... 19 1.2.2 Efficiency Gains ........................................................................................................................ 20 1.2.3 Use of External Expertise ...................................................................................................... 20 1.2.4 Maintenance Cost Index......................................................................................................... 20 1.2.5 Internal Experts ......................................................................................................................... 21 1.3 Aurizon Network’s Business Structure .......................................................................................... 23 1.3.1 Business Structure History .................................................................................................... 23 1.3.2 Aurizon Network’s Operational Structure .......................................................................... 23 1.4 Nature of the Asset.............................................................................................................................. 26 1.4.1 Narrow Gauge History and Implications ............................................................................ 28 1.4.2 Network statistics ...................................................................................................................... 29 1.4.3 Additional Infrastructure.......................................................................................................... 30 1.4.4 Tonnage volumes ..................................................................................................................... 31 1.5 Coal Supply Chain ............................................................................................................................... 34 1.5.1 Contractual arrangements ..................................................................................................... 34 1.6 Environmental and Geological Considerations .......................................................................... 35 1.6.1 Rainfall and Flooding ............................................................................................................... 35 1.6.2 Extreme temperatures ............................................................................................................ 37 1.6.3 Soil conditions ........................................................................................................................... 40 1.7 Safety as a Core Value ...................................................................................................................... 41 1.7.1 Achieving “ZEROHarm” .......................................................................................................... 42 1.7.2 Examples of Specific Safety Risks ...................................................................................... 43 1.7.3 Managing contractor safety and quality ............................................................................. 44 1.7.4 Safety Performance ................................................................................................................. 45 1.7.5 Safety trends .............................................................................................................................. 46 1.8 Access Undertaking Performance .................................................................................................. 46 1.8.1 UT1 ............................................................................................................................................... 46 1.8.2 UT2 ............................................................................................................................................... 46 1.8.3 UT3 ............................................................................................................................................... 47 1.9 Legislation .............................................................................................................................................. 48 1.10 Corporate Responsibility ................................................................................................................... 49 UT4 Maintenance Submission 30th April 2013 i 1.10.1 Aurizon Network’s Environmental Commitment ........................................................ 50 1.10.2 Community Engagement .................................................................................................. 51 1.10.3 Indigenous Employment.................................................................................................... 51 1.10.4 Training and Youth Development ................................................................................... 52 2. Network Maintenance philosophy 54 2.1 Network Cost vs. Reliability .............................................................................................................. 55 2.1.1 Network Safety vs. Cost ......................................................................................................... 57 2.1.2 Commercial arrangements and procurement .................................................................. 58 2.2 Network Availability ............................................................................................................................. 59 2.3 Network Throughput ........................................................................................................................... 59 3. Network Maintenance regime 61 3.1 Overview ................................................................................................................................................. 61 3.2 Objectives of the maintenance regime .......................................................................................... 61 3.3 Maintenance Planning Approach .................................................................................................... 62 3.3.1 Determining Scope and Quality ........................................................................................... 62 3.3.2 Customer Engagement Process .......................................................................................... 69 3.3.3 Maintenance Scheduling ........................................................................................................ 72 3.3.4 Maintenance Planning ............................................................................................................ 72 3.3.5 Implications of the Current Environment for Maintenance .......................................... 76 3.3.6 Delivery Structure ..................................................................................................................... 81 3.3.7 Procurement ............................................................................................................................... 84 3.3.8 Environmental Considerations ............................................................................................. 86 4. Asset Maintenance Products 88 4.1 Mechanised Maintenance ................................................................................................................. 88 4.1.1 Ballast Cleaning ........................................................................................................................ 88 4.1.2 Rail Grinding .............................................................................................................................. 92 4.1.3 Track Resurfacing .................................................................................................................... 96 4.2 General Track ....................................................................................................................................... 99 4.3 Structures Management .................................................................................................................. 102 4.4 Signalling Maintenance .................................................................................................................... 103 4.5 Traction Maintenance Activities .................................................................................................... 104 4.6 Telecommunications Maintenance Products ............................................................................ 106 5. Maintenance Cost 106 5.1 Overview ............................................................................................................................................... 107 5.2 Working in Partnership in a Range of Market Cycles ............................................................. 108 5.3 The Maintenance Disciplines ......................................................................................................... 109 5.4 Basis of Cost Development ...........................................................................................................
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