On 23 September 2024 the Transport Administration Amendment Act 2024 (‘TAA Act’) was assented to (copy available here) marking a significant transformation in rail asset management across New South Wales. The TAA is expected to commence in early 2025. Principally, the TAA Act converts the Transport Asset Holding Entity (‘TAHE’), from a State-owned corporation to a new agency, the Transport Asset Manager of NSW (‘TAM’). This change aims to streamline rail asset management and reinforce the lead role of Transport for NSW (‘TfNSW’) in delivering the NSW Government’s vision for state transport.
Establishment of TAM
TAHE, initially established as a State-owned corporation on 1 July 2020, will now “convert” to TAM, a statutory corporation and NSW government agency. TAM will assume ownership and management of the NSW rail asset portfolio, emphasising safety and reliability over commercial incentives. These amendments remove the tension between maintaining safety and delivering a commercial return while maintaining the objective to operate at least as efficiently as a comparable business and to maximising the net worth of the State’s investment in TAM. This new agency will be led by a Chief Executive appointed by, and subject to the control and direction of, the Minister for Transport, supported by an advisory board of experts in rail safety, transport operations and asset management. This structure replaces the governing board of directors which previously led TAHE.
TAM's objectives are to:
- ensure the safe and reliable operation of rail assets;
- promote wider access to the NSW rail network; and
- carry out development with Ministerial approval and in line with broader Government objectives.
Accordingly, TAM’s functions include:
- holding, managing, operating and maintaining transport assets;
- establishing, financing and developing transport assets;
- facilitating rail access;
- deal with and developing land with the approval of the Minister for Transport; and
- entering into agreements with public transport agencies for the exercise of these functions.
TAM will enhance accountability and simplify the “complex operational model” previously in place by minimising duplicated, inefficient management functions.
Integration with TfNSW
While TAM will undertake management of rail assets, TfNSW retains its key role in transport planning, policy, and funding. This ensures accountability is retained and establishes a cohesive approach to delivering an integrated transport network.
The TAA Act also broadens TfNSW's functions to promote active transport (i.e. walking and cycling) and improve public space activation.
Implications
The transition from TAHE to TAM seeks to streamline rail asset management, improve the reliability and resilience of NSW rail, and support long-term rail infrastructure investment. The TAA Act looks to make rail freight a more competitive and viable means of moving goods across the state by simplifying negotiations and reducing cost. TAM will establish a more accountable, straightforward means of engaging with rail asset management for freight operators and other stakeholders involved in NSW rail.
KWM advises its clients on the development and operation of rail infrastructure across the state and nationally. For any assistance relating to the implications of the TAA Act, please contact Chris Mitchell and Larissa Buriak.
We will continue to monitor the implementation of TAA Act and provide updates on any further developments in NSW rail asset management.
