1. 24th June 2013
Overview by UGL Unipart
Doing Business in Australia
www.uglunipart.com

2. Who are UGL Unipart?
• Joint Venture between:
• United Group Limited (Australia) & Unipart Rail (UK)
• 500 staff
• JV went live from January 2012
• RailCorp awarded outsourced contract to UGL Unipart, commencing July 2012 to:
• Conduct all L3 Heavy Maintenance for 1,050 Electric fleet vehicles
• Provide Logistics and Supply Chain Management services to 7 Electric & Diesel
Maintenance sites across NSW (1,200 vehicles)
• Contract length 7 years with option to extend further 5 years
• Value of business $1.8b (GBP 1.2b) over 7 years

3. Strategic Challenges
• RailCorp outsourced contract:
• To work alongside RailCorp to achieve world’s best practice for:
• Railway car & component maintenance
• Logistics & Inventory Management
• Develop business capabilities which facilitate diversification into varying markets (e.g.):
• Transport
• Defence
• Marine
• Transform supply chain to become highly competent in:
• Perfect quality
• Globally competitive costs
• Exceptional delivery performance
• Highly responsiveness
• Product & Service Innovation

4. Current Supply Chain in Australian Rail Industry
• Not performing in many metrics:
• Quality – inconsistent
• Very high prices compared to UK/Europe
• Unresponsive
• Not lean:
• Much talk of being lean, but no real depth in executing lean into business
• Not customer centric:
• Companies very customer focused and responsive
• Minority
• Dominated by OEM’s with too few independent alternative suppliers into the rail
industry

5. General observations of Australian Supply Chain in Australia
• Positives:
• Australia holds many business growth opportunities:
• Buoyant economy
• Investment in rail
• Issues with Sydney region:
• Rail industry needs much greater business skills to deliver in:
• Quality, Cost, Delivery & Responsiveness
• Industrial Relations climate very strong:
• Highly unionised labour force
• Time difference makes real time support from UK difficult
• Government tightening visa approvals process
• Sydney region is expensive v costs in UK

6. Your Unique Partner in Rail

7. 10,000
people
AU$ 2 b
turnover
Operating in
100 countries
worldwide
6 divisions
Majority
owned by
employees
We take
a long term
view

8. The Unipart Group – Where We
Work
New Location Current Location Deploying Consulting Services
Brisbane
Denver
Toronto
Mahwah
Atlanta
Brazil
South Africa
UK
Germany
Spain
Belgium
Netherlands
Russia
UAE China
Tokyo
Sydney

9. Business offerings:
• Product Supply
• Logistics
• Consultancy
Initial desktop research / Visits - UKTI
Sydney Location due to sister company operations
Australia
Launched at AusRail 2007

10. Industry Activities:
• Innovation forums
• Industry society participation
• Key industry activities
Growing consultancy and Niche Product business
Developed Australian specific products
Achievements
Formation of JV with UGL

11. States Independent of each other:
• Management Structure – one franchise arrangement
• Track gauge
• Approval Process
• Standards
Tyranny of distance / time – Inter-state and UK
High proportion of ex-pat employees in Industry
Lessons Learnt
Established Rail market – 150 years +

12. State and Federal finances in place:
- State Transport plans - UKTI
Focus on development’s similar to Europe - LX
Showcase at Industry Show – AusRail in Sydney November
Opportunities
Innovation / Modern technology