27 June 2007
Sydney, 27 June 2007: Clayton Utz has advised the Australian Rail Track Corporation Ltd ("ARTC") on the establishment of a new multimillion dollar state-of-the-art communications platform project that represents a new benchmark in security and safety over the ARTC's 10,000 kilometres of rail tracks around Australia.
Principally using Telstra's NextG Mobile Network, the new communications platform brings together the nine separate communications systems currently being used for centralised train control and inter-train communication on ARTC's Interstate Rail Freight Network.
The deal, which closed on 4 April, represents the culmination of more than two years of negotiations for a workable solution for ARTC that would be able to accommodate future technological advancements.
The new platform will involve the construction, financing and commissioning of A$80 million worth of telecommunications infrastructure, the installation of transmission and transceiver equipment on operators' locomotives, and numerous leases of particular transmission towers and items of telecommunications infrastructure to Telstra.
It also includes a services arrangement which details the supply terms in connection with the telecommunications carriage services, service levels and maintenance and support obligations for the telecommunications infrastructure.
Clayton Utz Major Projects partner Murray West led the firm's team, which included senior associate Michael Montgomery.
Mr West, who recently advised ARTC on its key alliancing contracts for its A$2billion infrastructure upgrade of north-south rail corridors, said the project confirmed ARTC's commitment to embracing "world leading and cutting edge technological advancements".
"It was particularly innovative for ARTC to outsource its communications delivery, which has traditionally been an in-house function of the rail industry," said Mr West.
"However, given ARTC's requirement for a streamlined, state-of-the-art, communications solution - and the infrastructure and technology this requires - ARTC recognises the strategic and cost effective advantages in utilising Telstra's capabilities in implementing and providing the communications system from its inception."
Mr West said the transaction was challenging from a number of perspectives. "The parties' goals and expected benefits very much evolved over the course of the transaction, given the nature of the technologies.
"We envisage that the communications solutions of any transport operator, or indeed any operations requiring significant communications systems, will be solved and implemented with telecommunications companies from a much earlier stage rather than at a service provision stage."
*The Australian Rail Track Corporation Ltd (ARTC) was created in 1997 as a 'one stop' shop for all operators seeking access to the national interstate rail network. It is responsible for managing the 5861 route kilometres of standard gauge interstate track in South Australia, Victoria and Western Australia, and New South Wales.
