Background:
Although
regulation for emissions, pollution and the like is becoming
stricter, rail is still locked in to using existing infrastructure,
namely locomotives and rolling stock. As a result, it is not
currently feasible for operators to dispense with their old
technology at regular intervals, even though they will have to pay
more to use older technology under emerging emission trading
regimes. The rail industry has sought to ascertain the viability of
promoting an Environmental Benefit Scheme (EBS) advocating
accelerated depreciation of newly acquired locomotives, wagons, and
handling equipment. This is intended to provide incentives for
operators to invest in more efficient and environmentally friendly
technology. The EBS could provide significant opportunities to
further enhance rail’s existing environmental and social
benefits. The scheme, if its efficacy is demonstrated, could be a
powerful tool in realising greater investment in cleaner
technologies.
Objectives:
Key
objectives of the project include:
- To survey the literature on Australian and international
rail reform and the potential for technological investment in
cleaner technologies.
- To ascertain whether an accelerated depreciation scheme
could address the current infrastructure deficiency.
- To employ contemporary investment theory to maximise
understanding of investment implications of the proposed
scheme.
- To undertake cost benefit analysis to assess the
feasibility, suitability and potential effectiveness of accelerated
depreciation schedules.
- To translate outcomes into meaningful policy
advice.
Benefits
The project
will:
- Provide rail authorities with powerful tools in achieving
government-driven environmental, social and economic
objectives.
- Promote investment in efficient and low-emissions rail
hardware.
- Enhance financial viability and budget outcomes for
above-rail operators.
- Increase revenue growth for manufacturers of locomotives,
rolling stock, and handling equipment.
- Provide the rail industry with improved efficiency and
enhanced service through the use of new technologies.
Expected outcomes:
The project
will provide informed advice to the Australian rail industry
regarding the desirability (or otherwise) of introducing
accelerated depreciation schedules. Should the results of the
project support accelerated depreciation, guidance on the form most
likely to lead to technological uptake in the Australian rail
industry will be provided.
Project timeframe:
18
months
Project Chair:
Brett
Hughes, Director Policy, Australasian Railway
Association
Project Leader:
Michael
Charles, Senior Lecturer, Southern Cross University
Tel: (07)
5506 9349
Email: michael.charles@scu.edu.au
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