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This report finds that governments missed out on $1.85 billion in cost savings over the last decade, due to inefficient local content policies in place across Australia.

The identified foregone procurement cost savings from the last decade include:

  • $717 million of savings from increased scale
  • $811 million of savings from reduced complexity in planning and design
  • $318 million of savings from major componentry harmonisation

States and territories use different procurement policies for purchasing rail assets such as rollingstock, including state-based local content requirements. The report finds that while this approach supported local jobs in the short term, it undermines the long-term sustainability of the rollingstock manufacturing industry.

A national approach to rollingstock procurement would allow both governments and industry to achieve improved outcomes, realising the cost savings outlined in the report. A national approach would also support the growth and competitiveness of the industry, supporting further jobs growth in this essential market.


Related Information

Towards a national local content policy https://web.archive.org/web/20221102060320/https://ara.net.au/wp-content/upload…

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