Transport For New South Wales Criticized For Rising Costs And Delays In Train Procurement

Published on October 24, 2025

Transport for New South Wales (TfNSW) has travel nether scrutiny from nan New South Wales Auditor-General, who has raised concerns complete nan rising costs and important delays associated pinch nan procurement of nan New Intercity Fleet (NIF) and Regional Rail Fleet (RRF). The full mixed costs for these fleets has soared to astir $A 7 cardinal ($US 4.4 billion), an summation that has attracted disapproval for its guidance and procurement practices. The Auditor-General’s study besides points to a hold of 5 years successful nan NIF entering service, further highlighting inefficiencies successful nan process.

Cost Overruns and Procurement Challenges

The NIF and RRF projects, which were meant to modernize nan obstruction strategy successful New South Wales, person knowledgeable important costs overruns. The original statement for nan RRF, awarded to Momentum Trains successful February 2019, was weighted astatine $A 1.26 billion. However, owed to accrued costs, nan project’s superior expenditure roseate by an estimated 53%, reaching $A 2.3 billion. This 53% summation underscores nan difficulties TfNSW faced successful accurately forecasting nan afloat costs of nan project, which included design, manufacture, and attraction of nan caller trains, arsenic good arsenic nan building of a caller attraction installation successful Dubbo, which has already been completed.

In addition, nan NIF, a caller procreation of intercity diesel trains known arsenic nan Mariyung fleet, was primitively group to see 55 trains nether a statement awarded successful 2016. The task was later expanded to see 610 cars, expanding nan wide costs from $A 2.4 cardinal to $A 4.5 billion. However, nan first trains were not expected to participate work until precocious 2024, contempt deliveries opening successful 2020. These delays were mostly owed to a conflict pinch nan Rail, Tram and Bus Union (RTBU) complete information concerns, further compounding nan challenges faced by TfNSW.

Auditor-General’s Criticisms and Recommendations

The Auditor-General’s study criticizes TfNSW for its nonaccomplishment to efficaciously estimate nan afloat costs and scheme for nan semipermanent needs of nan NIF and RRF projects. The cardinal concerns include:

1. Inaccurate Cost Estimates: TfNSW underestimated nan full costs progressive successful some projects, peculiarly successful position of enabling useful required for nan successful implementation of nan fleets.
2. Inadequate Planning for Capacity: TfNSW grounded to decently measure nan number of NIF trains required to debar overcrowding, contempt knowing that highest services were apt to beryllium overcrowded. This oversight led to further useful and nan acquisition of much trains astatine higher prices.
3. Limited Stakeholder Engagement: The study recovered that TfNSW did not prosecute efficaciously pinch drivers and onboard unit during nan readying and procurement process. This deficiency of consultation resulted successful difficulties managing risks specified arsenic business action, which was triggered by nan determination to present driver-only operations connected nan NIF trains.

Despite these shortcomings, nan Auditor-General acknowledged that TfNSW followed nan required procurement processes group by nan NSW authorities and managed probity and conflict of liking issues successful statement pinch those policies.

Future Actions and Recommendations for Improvement

The Auditor-General has made 5 cardinal recommendations for TfNSW to amended early procurement projects:

1. Enhanced Demand Forecasting: TfNSW should amended its usage of request forecasting to amended pass finance decisions and rolling banal procurement activities.
2. Mandatory Stakeholder Consultation: The agency should present mandatory requirements for stakeholder consultation to guarantee that each parties are adequately progressive successful rolling banal procurement projects.
3. Strengthened Assurance Processes: TfNSW should create much effective assurance processes astatine each stages of procurement to guarantee projects are delivered connected clip and wrong budget.
4. Greater Public Transparency: TfNSW should amended its nationalist transparency by reporting clearly, consistently, and comprehensively connected task scope, timelines, and costs.
5. Comprehensive Advice to Ministers: Written proposal to ministers and nan NSW Cabinet should beryllium evidence-based, objective, and broad to support informed decision-making.

Conclusion: A Critical Step for Future Rail Projects

The important delays and costs overruns successful nan New Intercity Fleet and Regional Rail Fleet projects item nan value of improving procurement practices and ensuring that early obstruction projects are amended managed. While TfNSW has made strides successful obstruction modernisation, nan Auditor-General’s study provides valuable insights into areas that request attraction for nan successful transportation of early infrastructure projects. By addressing these recommendations, TfNSW tin guarantee that it meets its objectives for sustainable, efficient, and reliable obstruction carrier successful New South Wales.