The Guardian February 25, 2004


Privatising rail

Tom Pearson

The push by the NSW Government to privatise rail services is in 
evidence across the system, in both country services and Sydney's 
CityRail network. This evidence has emerged on the Blue Mountains 
service when commuters last week were forced to again take buses, 
under the guise of unspecified trackwork.

State rail officials are denying claims that the service has been 
deliberately run down in order to soften up the travelling public 
for permanent service cuts.

Carlingford, Newcastle, Cronulla, the inner west and the southern 
highlands have all faced service disruptions with rail services 
being replaced by private tour buses operating on lucrative 
contracts. A proposed new timetable for CityRail trains would 
result in off-peak and weekend services being slashed across the 
network.

Noting that the Carr Government views the rail system as $3 
million-a-day liability, community group Action for Public 
Transport (APT) has accused the Government of an organised run-
down of the system.

The Group's secretary, Jim Donovan, also said that a move to 
close the service between Hamilton and Newcastle was part of a 
land grab for real estate between Newcastle's Hunter Street and 
the city's waterfront. APT said that Coutrylink services to 
Murwillumbah, Broken Hill and the Riverina also face cuts.

Confirmation of the Government's privatisation agenda came with 
the Carr Government's announcement that the Australian Rail Track 
Corporation (ARTC) will be granted a 60-year lease for interstate 
and Hunter Valley rail lines and that ARTC will, through an 
alliance contract with the Rail Infrastructure Corporation 
(RIC*), provide maintenance for the residual network.

ARTC is a private company that was set up in 1997 by the State 
and Federal Governments as the facilitator of rail privatisation. 
Through it, corporations have access to the nation's interstate 
rail networks. ARTC currently manages 4430 kilometres of standard 
gauge interstate track.

As well as selling track access, its role includes the 
development of new business, capital investment, management of 
the interstate network and maintenance of the network's 
infrastructure.

Eleven operators have agreements with ARTC, including 
Countrylink, Great Southern Railway and Patrick Rail.

The combined rail unions have been meeting with ARTC and RIC and 
have been told:

* ARTC proposes to take control of the interstate and Hunter 
Valley infrastructure from May 24;

* ARTC will directly employ clerical, administrative, technical 
and engineering personnel and is advertising these positions on 
its website address;

* Track maintenance, train control and signalling will be 
delivered by NSW government employees under a labour contract 
arrangement. ARTC wants direct control of this workforce;

* All current conditions of employment will transfer under these 
arrangements until replaced with new agreements;

* Residual track maintenance will be undertaken with an alliance 
contract between ARTC and RIC.

* * *
Note: On January 1, 2004 StateRail and the RIC officially merged to form RailCorp as part of the Carr Government's "reform agenda". "Transfer" of workers, assets, etc will take place throughout 2004.

Back to index page