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Finding the Fast Track for Innovation in the Australasian Rail Industry

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Finding the Fast Track for Innovation in the Australasian Rail Industry Finding the fast track for innovation in the Australasian rail industry OCTOBER 2020 WWW.ARA.NET.AU 1 1. Executive summary 3 2. Why innovation matters to Australian rail 6 3. How Australian rail compares globally 10 4. Barriers to rail innovation in Australia 20 5. Opportunities for Australian innovation 29 6. A new compact for Australian rail innovation 33 7. References 37 CONTENTS The Australasian Railway Association (ARA) is the peak body for the rail sector in Australia and New Zealand. We represent more than 150 member organisations including passenger and freight operators, track owners and managers, suppliers, manufacturers, contractors and consultants. Our members include listed and private rail-related companies, government agencies and franchisees. Executive summary When Australia’s first railways were developed But there remains no national agreement on the in the 1800s, they catalysed economic and social signalling, automation or smart rail standards development and connected distant settlements.1 needed for a modern rail system in the 21st century. However, the absence of a national vision meant While technology offers network-scale benefits, that the railways developed separately, with Australia continues to develop different systems in different standards and gauges. different jurisdictions. Nearly two centuries later, successive reforms and There is a wide range of innovations that are ripe for investment have modernised and electrified these application to Australia’s rail systems (Figure 2). railways, and established a standard interstate rail network and a single national rail safety regime. But If Australia is to harness the great benefits of the original fragmentation remains, and continues technology to decongest and decarbonise urban to thwart optimal rail development in Australia. environments, better connect regional communities, and boost land transport productivity, it will need a Australia is embarking on its next major program more unified market for rail innovation, with national of rail transformation – with $155 billion of rail rules and a single playing field. Australia will need a investment planned in the next 15 years. These national focus on rail innovation. projects will embed the next generation of transformative rail technologies, with opportunities Australia currently lags behind global comparators extending across the supply chain to local rail in research and development (R&D) and manufacturing, which is expected to see a return of commercialisation, and in rates of technology growth to 1.5% per year for the next five years. adoption. Figure 1: Current marquee rail projects in Australia Inland Rail Cross River Rail • Responsible for delivery: • Responsible for delivery: ARTC in partnership with the Cross River Delivery Authority private sector in parnership with the • Signalling: ATMS private sector • Automation*: None • Signalling: ETCS L2 • Gauge: Standard and • Automation*: GoA2 (with driver) dual gauge for QLD • Gauge: Narrow Metronet • Responsible for delivery: Sydney Metro Public Transport Authority, WA • Responsible for delivery: • Signalling: HCS TFNSW • Automation*: Planned • Signalling: ETCS L2 Metro Tunnel • Gauge: Narrow • Automation*: GoA4 • Responsible for delivery: • Gauge: Standard Rail Projects Victoria Acronyms • Signalling: HCS ATO Automated train Operation • Automation*: GoA2 GoA Grade of Automation • Gauge: Broad HCS High capacity signaling ETCS European Train Control System ATMS Advanced Train Management System Notes: *Degree of automation is measured by grade of Automation (GoA) means the driver operates the doors and handles emergencies with automated starting and stopping, while GoA4 refers to a fully automated driverless system. Source: Project websites, ANZIP 3 4 Figure 2: Examples of new technology, innovation and digitalisation in rail Cabin based ATMS Internet of Things (IoT) 5G High speed Driverless technology technology Sensors, adaptive Cloud based platforms AI and machine learning monitoring Hydrogen power Fault inspection technology Digital communications Condition monitoring Rail crossing safety Smartphones and apps technology Battery technology Mobility as a Capacity and passenger Automated train service (MaaS) measurement protection Positive train control Contactless ticketing (e.g., ETCS) This research considered global benchmarks The compact would have three objectives, and consulted with ARA members, including each with recommended actions: industry suppliers and public and private rail • To make rail innovation a national priority: owners and operators. The interviews brought to A new national public body would drive national light considerable consensus on the reasons for planning and coordination of investment, Australia’s uneven rail technology performance. support long term R&D and commercialisation Fragmentation across rail planning and investment, and develop national capability and procurement, disconnects across the national rail an export strategy for the sector innovation system, and a culture that has not been • To develop a single market for rail primed for innovation, are all major inhibitors to technology: A single market with common technology-enabled rail productivity. Some of the standards, nationally accredited testing, a impacts of these challenges include: national industry policy, and industry-standard • Multiple rail operators and owners, and training multiple rules and type approvals, make • To build a culture for rail innovation: Australia a challenging market for technology Ensuring best practice procurement and suppliers, who have multiple paths to market contracting, the development of states’ smart for each product rail strategies to build an investment pipeline for • Weak linkages across the value chain, and digital technology, and building the brand for the recent closure of the Rail Manufacturing Australian rail innovators globally Cooperative Research Centre (RM CRC), This is an ambitious compact that requires deep will see the continuation of a small pool of partnership across governments, industry and local commercialisation operators. The ARA is committed to policies that are • State local content requirements inhibit the in the national interest for rail innovation. achievement of scaled rail manufacturing in Australia • Rail planning, investment and procurement is risk averse and does not incentivise innovation well On the other hand, there is a ‘virtuous circle’ between strong national rail research and productive and efficient railways. The implication is that rail innovation in Australia needs a focus both on driving collaborative research and on building a culture that demands innovation and continuous improvement. This paper recommends a new national compact to boost the economic contribution and legacy of Australian research and industry for planned rail investment over the next 15 years. 5 2. Why innovation matters to Australian rail 2.1 The benefits of rail • Cost savings: Building Information Modelling innovation on complex rail construction in Germany reduced costs by 10%, with ongoing energy and 4 The global market for rail technology is worth maintenance savings AU$362 billion, and is growing at 3.2% per year,2 • Capacity: The Rail Sector Deal in the United with almost all aspects of modern rail systems Kingdom (UK) is investing in data, digital experiencing digital and technological disruption. technology and sustainability, with an initial In particular, the convergence of information estimate that it will deliver up to £31 billion pounds and communications technologies (ICT) with rail in benefits from more capacity, more frequent and operational technologies has changed the way that reliable services5 railways are planned, built, run and maintained. • Reliability: The sensor arrays and artificial There is evidence that the pace of innovation in rail intelligence of MOXI, being used by VicTrack and transport is quickening. One measure is the number East Japan Railway, have been able to predict of rail patents submitted globally each year, which adverse car and track conditions to better than has almost quadrupled in the past 20 years, with 90% accuracy, improving safety, maintenance costs 6 China alone submitting 8,500 patents in 2019.3 and allowing earlier action on faults • Time savings: ICT tools used to optimise online Applications that are being used in energy, rail operations halved wait times between trains manufacturing and defence are also transforming on Berlin’s U-Bahn network, and enabled safer the opportunities for rail, with intelligent systems, operation on high risk corridors7 automation, sensors, predictive maintenance, advanced asset monitoring, traction and train • Safety: In the United States (US), preventative control technologies, and energy efficiency. maintenance technology such as wayside detectors, smart sensors and infrared lasers New technology and innovation can involve high assess the condition of bearings, axles and wheels, deployment costs and complexity when integrating reducing mainline equipment-caused accidents by with legacy rail systems, but can deliver higher 36% over a decade8 relative benefits than traditional projects, including: • Energy Efficiency: Energy Storage Systems on Tehran metro yielded daily energy savings of 25%9 Figure 3: Rail patents submitted globally each year 12,000 CAGR % 7.1 8.907 7,810 8,000 6,894 5,608 5,075 4,692 4,460 4,000 3,508 3,548 3,007 3,136 3,174 2,849 2,890 2,953 2,677 2,724 2,643 2,437 Number of rail related patent
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