199803 – Fullerton – “AWARE” – Australia Wide Augmented Radio Environment – Use of Train Radio to Provide a Competitive Advantage

Good morning ladies and gentlemen

I would like today to give you some insight into the strategies National Rail are implementing to gain competitive advantage through innovative freight and train management initiatives incorporating the latest in communication technology.

There is no doubt that the current transport environment is changing rapidly and maintaining a competitive edge is a major challenge facing operators from across all transport modes..

Rail as you may know is undergoing an enormous upheaval in Australia. Factors such as:
– privatisation
– the separation of track ownership from operations
– competition on road, rail and sea
– the economy
– advent of external independent regulators
have emerged as major issues.

Whilst this has created an environment of opportunity and may I say excitement for potential new rail freight operators there are risks. Margins are low and new rail operators who wish to enjoy long term success will need to understand the key operating costs to ensure that investment decisions they make provide a healthy return on the assets deployed.

This is particularly relevant in the interstate transport business where operating distances are high and asset efficiency is an increasing determinant of overall operating costs.

Unless the right asset management and investment decisions are made the cost of operations will continue to put unsustainable pressure on profits.