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bureau of transport and regional economics report 108 Commonwealth of Australia 2002 ISSN 1446-9790 ISBN 1-877081-13-2 This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Commonwealth, available from the Department of Communications, Information Technology and the Arts. Requests and enquiries concerning reproduction and rights should be addressed to the Manager, Copyright Services, Info Access, GPO Box 2154, Canberra, ACT 2601. Other enquiries to Bureau of Transport and Regional Economics, GPO Box 501, Canberra ACT 2601, Australia, telephone (international) +61 2 6274 7210, fax +61 2 6274 6816, email: [email protected], internet: http://www.btre.gov.au Published by Bureau of Transport and Regional Economics, GPO Box 501, Canberra ACT 2601, Australia. This publication is available from • Government Information Shops • Info Access Network 132 447 (local call cost from anywhere in Australia) • By visiting http://www.bookshop.gov.au Indemnity Statement The Bureau of Transport and Regional Economics has taken due care in preparing these analyses. However, noting that data used for the analyses have been provided by third parties, the Commonwealth gives no warranty to the accuracy, reliability, fitness for purpose, or otherwise of the information. Cover Design and Desktop Publishing by Thomas Smith Cover photos Dr Anthony Ockwell Printed by National Capital P rinting, Canberra FOREWORD This report is the third in a series covering the socio–economic costs of transport accidents in Australia. Transport accidents impose a significant burden on the Australian community. Not all of their consequences can be expressed in financial terms. However, to weigh up options for minimising and dealing with this burden, it is important to know the costs of transport accidents. Transport accident costs in Australia were quantified in BTCE Report 79, Social Cost of Transport Accidents in Australia. Since then the size and distribution of aviation and road accident costs have been dealt with in more detail in BTRE Report 98, Cost of Civil Aviation Accidents and Incidents, and BTE Report 102, Road Crash Costs in Australia. This analysis covers rail accidents that occurred in Australia during 1999. The Bureau of Transport and Regional Economics acknowledges with appreciation the assistance of the rail companies, rail operators (especially page Queensland Rail and Rail Infrastructure Corporation), rail accreditation iii authorities, and rail associations (particularly the Australasian Railway Association) that provided data for the study and the Australian Transport Safety Bureau staff who provided advice throughout the study period. The research team comprised Christine Williams, Team Leader; Johnson Amoako, Principal Research Officer; Michael Simpson, Senior Research Officer; and Elizabeth Berryman, Senior Research Officer. The evaluation was supervised and directed by Dr Anthony Ockwell, Deputy Executive Director. Tony Slatyer Executive Director Bureau of Transport and Regional Economics Canberra January 2002 CONTENTS PREFACE . iii EXECUTIVE SUMMARY . ix INTRODUCTION . xiii Report structure. xiii Defining a railway accident. xiii Australia. xv United States of America . xvi Canada . xvii Comparison of definitions of a rail accident . xvii CHAPTER 1 INCIDENCE OF RAILWAY ACCIDENTS. 1 CHAPTER 2 OVERVIEW OF RAIL SAFETY ISSUES . 7 Hazards at level crossings . 7 page Hazards to pedestrians crossing tracks at other locations . 14 v Preventing train passenger falls. 14 Other safety issues . 15 Education measures. 15 CHAPTER 3 ANALYTICAL APPROACH AND HUMAN COSTS. 17 Estimating the costs of accidents . 18 Human costs . 18 Value of lost labour . 22 Labour in the workplace (lost income) . 22 Discount rate issues . 24 Labour in the household and community (lost unpaid work). 26 Human cost estimates. 27 Value of productivity losses . 27 Medical costs. 29 Hospital in–patient costs . 30 Other medical costs . 32 Long-term care . 33 Ambulance costs . 35 Quality of life . 37 Minor injuries costs . 39 BTRE Report 108 CHAPTER 4 PROPERTY DAMAGE COSTS . 41 Data . 42 Accuracy of cost estimates . 45 Property loss in fatal accidents . 46 Suicide and attempted suicide. 47 CHAPTER 5 OTHER COSTS. 49 Delay costs . 49 Value of time . 50 Delay values. 52 Environmental and recovery costs . 54 Lost cargo . 54 Investigation costs . 54 Emergency services costs . 55 Police costs . 55 Fire service costs . 56 Coronial costs . 57 Insurance administration and legal costs . 58 APPENDIX I OVERVIEW OF THE RAIL INDUSTRY IN AUSTRALIA. 61 Background . 61 Rail reform in Australia . 62 Recent history of the rail industry in Australia by jurisdiction . 66 Commonwealth. 66 page New South Wales . 67 vi Victoria . 67 Queensland . 68 Western Australia. 69 South Australia . 69 Tasmania . 70 Northern Territory . 71 ABBREVIATIONS. 73 REFERENCES . 75 TABLES E.1 Source of costs in 1999 ($ million) . ix E.2 Rail-related fatalities by cause in 1999 . xi 1.1 Rail safety by jurisdiction, 1999 . 1 1.2 Fatalities per passenger distance travelled, normalised to car occupant = 1.0 . 2 3.1 Comparison of approaches to valuing human life . 21 3.2 Number of rail accidents and injury levels in 1999 . 27 3.3 Estimated value of productivity losses ($ million) due to rail accident fatalities in 1999 . 28 3.4 People killed or seriously injured by rail accidents in 1999 . 30 3.5 Summary of human costs ($ million) 1999 . 39 Contents 4.1 Property costs of rail accidents by accident type, 1999 . 43 4.2 Property costs of level crossing accidents involving motor vehicles, 1999. 43 4.3 Property costs attributable to collisions by jurisdiction, 1999 . 44 4.4 Property costs attributable to derailments by jurisdiction, 1999 . 44 4.5 Property costs attributable to trespassers by jurisdiction, 1999 . 45 4.6 Property costs attributable to level crossing accidents by jurisdiction, 1999 . 45 4.7 Collision at Glenbrook, December 1999. 46 5.1 Summary of other costs ($ million) . 59 FIGURES 1.1 Railway accident fatalities in Australia 1979-2000 . 3 1.2 Level crossing fatalities in Australia 1997-2000 . 3 1.3 Age at death of male railway accident fatalities in Australia 1979-2000 . 4 1.4 Age at death of female railway accident fatalities in Australia 1979-2000 . 5 1.5 Shares of train kilometres and population by jurisdiction in 1979-2000. 5 PICTURES 2.1 Apparent size of train at different distances . ..