Waking up in Geelong

In recent years V/Line has been retiring their fleet of aging locomotive hauled carriages, with the long distance N sets given away to railway preservation groups, and the H sets sent for scrap. And with nothing left to haul, this has also rendered V/Line’s fleet of diesel locomotives surplus

The story starts

V/Line now has 115 and counting VLocity trains in service.

And with locomotive hauled trains on the way out, their diesel-electric locomotives ended up stored at Geelong.

And so in August 2023 V/Line invited expressions of interest to repurpose them on freight services.

V/Line is seeking proposals from organisations capable of repurposing its passenger locomotives for broad gauge freight in accordance with V/Line approved application(s).

V/Line is progressively retiring its fleet of ‘classic’ passenger locomotives as new V/Locity trains are introduced, creating an opportunity to reinvigorate competition in, and grow Broad Gauge (BG) rail freight in Victoria.

V/Line is seeking Expressions of Interest (EOI) from ONRSR (Office of National Rail Safety Regulator) accredited private sector organisations or consortia, to invest in locomotive upgrades to V/Line’s specification and maintenance requirements and operate them on the BG freight network.

The EOI proposals will encompass V/Lines classic passenger locomotive fleet, as they are progressively decommissioned, as they become available to be repurposed locomotive fleet for the BG Network.

A handful of of locomotives to start with, and more to come.

New VLocity trains are being introduced across the network, therefore V/Line is progressively retiring its fleet of ‘classic’ passenger locomotives. This fleet provides an opportunity to encourage competition and grow BG rail freight in Victoria.

To repurpose these locomotives, V/Line is running this public Invitation process for the N and P Class locomotives.

Following this, V/Line then expects to issue a Request for Proposal (RFP) to selected parties from the EOI Process.

The expectation is that the N and P Class locomotives will remain in V/Line ownership but will be made available for the freight network under a long-term lease arrangement.

While subject to change, the fleet surplus to requirements for this EOI Invitation is projected to be:
• 19 x N Class
• 3 x P Class

Of these, seven locomotives are available for repurposing now: four N Class and three P Class.

The next tranche of N Class locomotives will be released once replacement V/Locity trains are in service.

The total number of N Class made available through the program, and the timescales, are yet to be confirmed and will be subject to change.

With a hope to encourage more freight on rail in Victoria.

The objectives of the locomotive repurposing program are to:
• Increase the capacity and performance of the broad gauge freight system
• Prioritise proposals that support broad gauge freight growth, meet upgrade specifications, and offer co-investment on the freight system such as in wagons and terminals
• Support broader government policy on rail freight, health and road safety, and legislative requirements obligations under legislation such as the 2017 Climate Change Act and the 2010 Transport Integration Act.
• Maximise the return to the State through public tender processes that invite proposals from parties able to contribute to growing rail freight’s mode share

V/Line is looking for robust and innovative proposals that support these program objectives and demonstrate a collaborative approach to work with V/Line to improve BG rail freight in Victoria.
Key to this is to demonstrate value for money to the State. V/Line expects the EOIs to demonstrate this value, including by:
• direct investment in the locomotives (overhauls, upgrades, maintenance)
• investment in the BG freight network, such as in new/upgraded wagons and new/expanded freight rail terminals
• indicative lease payments to V/Line for locomotives
• indirect benefits including “externalities” such as reduced road damage and congestion, improved road safety and reduced carbon emissions.

Respondents are encouraged to prioritise investments in longer term assets, rather than just the lease payments for the locomotives.

And work around the ‘break of gauge‘ Victorian rail freight is limited by.

V/Line is currently investing $181 million on upgrades to the rail freight network. Complementary investment in the locomotive and wagon fleet is also being actively encouraged to maximise the benefits of these upgrades.

Surplus V/Line passenger locomotives are currently being repurposed and will be offered to rail operators for use on the BG freight network. The aim is to increase capacity and competition.

The Victorian BG freight system operates using a rolling stock fleet that is aging and, in some cases, not necessarily aligned to current and expected future requirements. The average age of the privately-owned BG freight locomotives in Victoria is 41 years, and most wagons in use are 30-50 years old.

SG rolling stock can operate on other networks interstate, therefore locomotives and rolling stock are more readily available and the market is more competitive.

In contrast, due to the relatively higher cost of meeting the gauge and axle load requirements, investment in growing the BG locomotive fleet has been historically restricted.

V/Line hopes that its commitment to, and investment in, the rail freight sector will generate commitment from freight operators towards growing their Victorian BG rail freight operations.

And it begins

In March 2024 four N class locomotives departed South Dynon for a new life on freight with the successful bidder – Southern Shorthaul Railroad.

N467 transferring classmates N463, N466, N455 and N464 along the goods lines under Footscray.

To Tottenham Yard, where the locomotives were handed over to Southern Shorthaul Railroad.

The V/Line and PTV branding was quickly stripped from the locomotives.

And on the evening of 16 March 2024 they led their first freight train, with N463 leading B80, S311 and N455 out of Melbourne on a grain train towards northern Victoria.

Allowing aging diesel locomotives from the 1950s to head into the workshops for a well overdue overhaul.

Footnote on the P class locomotives

Back in 2017 V/Line’s also retired a number of smaller P class locomotives.

Five were sold outright to Southern Shorthaul Railroad in April 2019, and pressed into service delivering newly completed High Capacity Metro Trains.

Transporting X’Trapolis trains to Ballarat for overhaul.

And Comeng trains to the scrapyard.

They have also been used on infrastructure inspection trains.

To transport rails, ballast and sleepers to work sites.

And to fill in for the bigger B and S class diesels on grain trains.

Initially they ran around in a stripped V/Line livery, but were eventually repainted in SSR yellow and black in 2022.

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