The Australian rail industry is a “prime market” for the UK supply chain and other countries. With a A$70 billion rail construction pipeline over the next five years, it offers huge potential for companies looking to invest.
According to a recent Railway Industry Association (RIA)member survey, 42% of UK rail suppliers are prioritising work outside the UK. And, due to the significant investment Australia is making in its rail sector, it’s become a prime market for the UK supply chain.
David Fisken, Investment Director for the UK and Ireland at the Australian Trade and Investment Commission (Austrade), says there is already significant UK involvement in the market, with the UK being the third largest foreign direct investor in Australia, and a big investor in rail with major UK companies active in the market, including engineering consultancies, construction (Laing O’Rourke), and Network Rail Consulting.
Free trade agreement
An Australia-UK Free Trade Agreement is also now in place, providing key benefits for UK companies, which include:
- Removal of tariffs on over 99% of Australian exports to the UK and on 98% of UK exports to Australia. A level playing field for bidding for public contracts in Australia.
- Talent mobility, for example, new visa provisions to enable intra-company transfers and a new visa pathway to Australia for innovators from the UK.
- Improved digital trade.
David says: “The Australian rail industry recognises the expertise the UK can bring and there are many opportunities available. The free trade agreement and stability in the pipeline of work should also make this really appealing and helpful in forward planning.
“It’s also really useful for companies to have an understanding of the Australian rail industry landscape.” David says that local content requirements, procurement processes and standards can vary by state. In November 2023, a National Rail Procurement and Manufacturing Strategy was launched (part of a National Rail Manufacturing Plan) – it has 6 pillars to address these challenges above giving increased opportunity for economies of scale, efficiencies and a more competitive rail supply chain.
In Australia, much like the UK, innovation and sustainability are key drivers. The Australian Railway Research and Innovation Network launched in November 2023 and looks to be a similar model to the UKRRIN in the UK. Net Zero is also a huge priority and driver for change as Australia commits to Net Zero by 2050. So, there are opportunities for UK companies around the importance of ESG and innovation and sustainability are increasingly important factors in procurement criteria.
Current opportunities in Australia
David adds that Austrade is here to help the supply chain with insights, contacts and opportunities and that they work closely with the Australian Railway Association (the country’s equivalent to RIA in the UK) to facilitate this.
Sydney Metro – Australia’s biggest public transport project and first fully automated metro rail system. It will deliver four new rail lines and 46 stations, boosting Sydney’s rail capacity up to 60% by 2024. The metro program includes the operational Metro Northwest Line (since 2019) and Metro City and South West opening in 2024. Further contract opportunities are available on the remaining two lines.
Sydney Metro – West – whichisunder construction, with completion expected in 2030 and is valued at A$25.8 billion. It will see a 24km metro line connecting Greater Paramatta in the West to Sydney Central Business District (CBD). Opportunities include a line-wide systems package – including rail systems and rolling stock depot. Contract award expected by July 2024, and Procuring Agency – Sydney Metro (using ICN Gateway) – ICN Gateway Project Search.
Sydney Metro – Western Sydney Airport – which is the first rail project in Australia to be certified carbon-neutral from the start of construction through to operation. Valued atA$11 billionit involves a23km line with six stations (the first stage is 11km), with construction completion expected in June 2026. Opportunities include stations, systems, trains, operations and maintenance (SSTOM): Contract with Parklife Metro Consortium – Plenary, Webuild, Siemens Mobility and RATP Dev. Other opportunities are available with Siemens Mobility – using the ICN Portal. And Procuring Agency – Sydney Metro (using ICN Gateway) – ICN Gateway Project Search.
Melbourne Suburban Rail Loop – which creates 90km of new rail line and 15 new stations circling Melbourne. Three sections should be fully complete by 2035. The SRL East first project is confirmed with six new underground stations. The value of SRL East is A$30-34.5 billion. Early works have commenced and been awarded to Laing O’Rourke as managing contractor. The tunnelling contract has been awarded to a consortium of Ghella, Acciona Construction and CPB. Opportunities include EOIs open in Early Works contract – Suburban Rail Loop IWEW (Early Works) and Procuring Agency: Suburban Rail Loop Authority.
Inland Rail – which will connect Melbourne and Brisbane via a 1,600km new rail freight corridor across rural Victoria, New South Wales and Queensland. It’s valued at A$31 billion to 2030/31 completion. It is owned by the Australian Rail Track Corporation (ARTC). Opportunities include 12 individual projects across three states.
There is a modal shift to rail – Inland Rail will cut carbon emissions by 750,000 tonnes per year from 2050. And you can find the opportunities available via the ICN Gateway Project Search or Inland Rail E-Tendering on TenderLink.
High Speed Rail Authority is now established with more than A$500 million announced in the May 2023 Federal Budget for the Sydney –Newcastle section, planning the corridor acquisition and early works.
The 2032 Brisbane Olympics is approaching and worth keeping on radar.
Key contacts
There are also several key Tier 1 suppliers that Tier 2s and new entrants to the market can tap into. Australian Tier 1s include CPB Contractors, Martinus and John Holland. UK consultancies including Arup, Mott MacDonald and Ricardo are very active as well as Laing O’Rourke, Siemens Mobility, Acciona, and Alstom.
These are also useful links and contacts:
- Austrade for investment interest – David Fisken, Investment Director, Austrade UK & Ireland: david.fisken@austrade.gov.au
- Australasian Railway Association (ARA).
- UK’s Department for Business and Trade for exports.
- ANZIP – Infrastructure Pipeline.
- ICN Gateway.
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