Australia has inconsistent procurement processes across states and territories. This prevents the sector from achieving economies of scale. Overcoming this issue requires a coordinated approach to procurement requirements, greater transparency of the national rail procurement pipeline, and cooperation across jurisdictions to manage or sequence procurement decisions. Success under this pillar will decrease regulatory and procurement burdens, reduce cost volatility, help Australian rail manufacturers plan for future work and create a more viable and stable rail manufacturing sector.
Action 1: Adopt a national framework for procurement
Scoping phase
| Sub-action | Indicative timeframe (calendar year)[1] |
|---|---|
| Map current rolling stock procurement frameworks and processes – identifying commonalities, inconsistencies, challenges, and opportunities. | Quarter 1, 2024 |
| Work with stakeholders to road-test ideas for policy reform that could support Australian rail manufacturing, including encouraging adoption of innovation and new technologies. Results to inform development phase. | Quarter 2, 2024 |
Development phase
| Sub-action | Indicative timeframe (calendar year) |
|---|---|
|
Design a national rolling stock procurement framework based on good practice procurement approaches appropriate to project size and scale.
Note linkages with harmonised standards work in Pillar 2 and supply chain mapping in Pillar 3. |
Quarter 4, 2024 |
| Test draft framework with industry and unions. | Quarter 3 and 4, 2024 |
Implementation phase
| Sub-action | Indicative timeframe (calendar year) |
|---|---|
| Determine endorsement mechanism and governance pathways in consultation with the Infrastructure Transport Ministers Meeting (ITMM) and considering related intergovernmental agreements. | Quarter 2, 2025 |
| National rolling stock procurement framework agreed by Australian Government and state and territory governments. | Framework adopted by Quarter 4, 2025 |
Action 2: Develop a more transparent pipeline for rolling stock procurements across Australia
| Sub-action | Indicative timeframe (calendar year) |
|---|---|
|
Working with states and territories, map the procurement pipeline nationally including current, future, and potential procurement. Include consideration of:
|
Quarter 1, 2024 |
| Publish national rolling stock procurement pipeline online. | Quarter 2, 2024 |
| ONRIC to work with states and territories to ensure the pipeline remains current (see Action 3). | Ongoing |
Action 3: Deliver a coordinated approach to timing of procurement at a national scale in accordance with fair market competition
| Sub-action | Indicative timeframe (calendar year) |
|---|---|
| Develop a business case to identify benefits of coordinating procurement at a national level. | Quarter 2, 2024 |
| Develop a framework and governance arrangements to support a coordinated, national approach to sequencing of state and territory rolling stock procurement, including consideration of market capacity. | Quarter 4, 2024 |