Ross Spicer - Downer - Global trends in rail

Ross Spicer Chief Executive Officer, Rail

Global trends in rail

Cultural and economic revolution

Quality of service versus customer perception

Challenges for the supply chain

A personal viewpoint

Summary

© Downer Group Limited All rights reserved

Rail revival around the world Europe - 65 cities built or expanded light rail 1980-2007 ▪160 cities with light rail now ▪Metro/high speed routes all under massive expansion Asia - little rail tradition but more obvious expansion ▪KL, Bangkok, Manila, Delhi, Kolkata, Mumbai, Seoul all added metro

and/or light rail ▪India building metros in 14 cities, China in 82 cities ▪India freight network dedicated lines under construction ▪China high speed line network Middle East - oil cheap, car is king ▪Doha, Saudi Arabia, Dubai, Kuwait ▪Grand expansions of high speed and heavy haul routes

3

Cultural and economic revolution

© Downer Group Limited All rights reserved 4







Rail Industry Group (RIG) The Rail Industry Group is a newly formed ARA working group comprised of the CEOs of Australian rail manufacturing primes and suppliers and endeavours to:

▪Encourage a visible, secure and coordinated long term pipeline for procurement opportunities; and

▪Advocate the role of rail in driving growth, stimulating jobs, and growing the Australian economy.

The RIG meets quarterly to discuss common issues, inform the ARA’s policy agenda and drive initiatives.

10

Rail Industry Group Strategy


RIG came together in 2014 to workshop a new strategy that proposes six key platforms to stimulate growth, improve productivity and to develop a globally competitive supply chain. The platforms are:

To drive growth by investing in: 1. Productive and efficient infrastructure; and 2. Strategies to capitalise on international opportunities.

To improve productivity by focussing on: 3. Harmonisation of performance specifications and standards; and 4. Critical skills training and development.

To promote a competitive domestic rail supply chain through: 5. Innovation, technology and advanced manufacturing; and 6. Developing supplier capability and entrepreneurial heft.

11

Rail Industry Group Strategy (2)


The ARA and RIG is currently socialising the strategy through correspondence and meetings with the Hon. Ian Macfarlane, Minister for Industry and Science, Federal and State Departments of Industry, ARA Members, the Rail Manufacturing CRC and other key stakeholders.

Short-term goals include: • ensuring that the strategy is widely understood by stakeholders; • pipeline of supply opportunities identified; • lobbying for the inclusion of rail in government programs; • engaging with Austrade to identify international opportunities for

Australian suppliers; and • creating an awareness in government of the importance of

investment in rail.

Keen to engage with NZ suppliers as well...

12

Rail Industry Group Strategy (3)

A personal viewpoint

Global trends in rail

Business

Ross Spicer - Downer - Global trends in rail