Hurry Up! Get 15% Please upload the order before 31st january 2019. T&C applied Order now !
review
Back to Samples

Business Report | National Railway of Australia

  1. Introduction

This study is based on the perspective of an HR manager who is presently working at the National Railway of Australia. Their company has taken a decision that they will transfer a manager from the National rail of the UK to the Aurizon of Australia.  This report presents the background focusing on the employment relations as well as the human resource management factors, which would have an impact on the professional life of this manager in Australia. Besides that, this report would also provide the present scenario of the railway industry of Queensland based on major issues and challenges that the rail industry of Queensland is facing (Bray and Waring, 2014). Moreover, this paper will focus on the different issues related to the management experience of Aurizon. The employment relation as well as the human resource management issues, both in the present and future context would be described in this paper along with the working life of the new manager in Australia.Before going to Australia, the manager has to perform his duties in British railway industry. As a manger, he has several responsibilities to perform such as managing other railway staffs, make sure that the trains are passing punctually and so on. The previous job experience would be very helpful for him in Queensland (Council, 2006).

The manager is transferred from the UK to Australia through a relocation process. According to his process, the manager is relocated for two years. In these two years, the railway company will bear his accommodation cost. Besides that, he would receive the travelling allowance and relocation allowance from the company (Mirzababaeiet al., 2014).

This report is based on Aurizon, which is a railway company in Australia, and it is also associated with the coal business of this country. The company carries coal from various mines and then exports this coal to several ports in ........

e background focusing on the employment relations as well as the human resource management factors, which would have an impact on the professional life of this manager in Australia. Besides that, this report would also provide the present scenario of the railway industry of Queensland based on major issues and challenges that the rail industry of Queensland is facing (Bray and Waring, 2014). Moreover, this paper will focus on the different issues related to the management experience of Aurizon. The employment relation as well as the human resource management issues, both in the present and future context would be described in this paper along with the working life of the new manager in Australia.Before going to Australia, the manager has to perform his duties in British railway industry. As a manger, he has several responsibilities to perform such as managing other railway staffs, make sure that the trains are passing punctually and so on. The previous job experience would be very helpful for him in Queensland (Council, 2006).

The manager is transferred from the UK to Australia through a relocation process. According to his process, the manager is relocated for two years. In these two years, the railway company will bear his accommodation cost. Besides that, he would receive the travelling allowance and relocation allowance from the company (Mirzababaeiet al., 2014).

This report is based on Aurizon, which is a railway company in Australia, and it is also associated with the coal business of this country. The company carries coal from various mines and then exports this coal to several ports in Queensland and NSW. Besides that, it is a railway track company, which owns, maintains as well as manages the central Queensland railway system, which connects the collieries with three ports(aurizon.com.au, 2017).

 

2. Rail Industry in Queensland – Present Scenario

            This section of the analysis provides the present scenario of the railway industry of Queensland. This industry is known as QR (Queensland Rail) which is one of the biggest railway operators of Australia. This is owned by the Queensland Government with almost 8000 kilometres of railway track, 6000 employees and approximately £7 billion assets. The QR has urban and interurban railway services and also bus services all over South East Queensland. It has recently launched a Rail Industry Worker Program, which is owned and funded by the Australasian Railway Association (ARA). It fulfils the regulatory needs as well as the national and state railway safety laws(Stevens, 2015).

The QR has completed 151 years as a secured and reliable railway operator and contributed to the economic, regional as well as social development of Queensland.Besides that, the main vision of the QR is ‘Connecting Communities and Communities Connecting’, which implies that it has a significant role in providing jobs, transporting commodities and providing the passenger's superior railway services. Moreover, the Queensland railway service is committed to providing the safe, value for money, reliable, efficient as well as on time railway service, which benefits the people and also the society as well. The business of QR consists of mainly three products such as the City train, Regional Network, and travel and tourism (themorningbulletin.com, 2017).

 

2.1 Major Issues and Challenges Rail Industry Confronts in Queensland

            This part of the report presents the major issues and challenges, which the Railway industry of Queensland is currently facing. Of late, the post boom crisis of the big coal industry has become a major problem in Aurizon (aurizon.com.au, 2017). As a consequent, the productivity as well as the expense management has become the only way of growth. It has a direct impact on the employment generation of this country. There are two more problems related to the growth of the productivity. A deep, as well as long process may be the insecure sell to the investors which leads to the deterioration of the growth rate whereas the weight of competence bounty leads to the lower pricing of the goods. For example, the interim numbers of Rio Tinto can be considered(Bray et al., 2014). The coal business of Rio made some wrong estimation during the boom period. As a result, these were disfigured by the $US496 million destruction on several ports as well as railway contracts (Stevens, 2017). Then Rio took leave from the system of Queensland.At the same period, some operators of the train and some of the port managers have earneda huge amount of money without doing anything. On the other side, they have the responsibility of finding the customers for taking that capacity. New contracts would certainly come at the discounted rate to the legacy ones (McPhail et al., 2017).

The example of Bowen Basin can be considered in this context who is the producer of the BHP Billiton Mitsubishi Alliance. He has planned to put 4 million tons to this system by increasing the outputs of the Caval Ridge colliery. At present, the Caval Ridge tons are carried by the trains of the BMA which requires new trains to carry the additional tons. Therefore, the new quantities would be contestable with a new pricing level (Stevens, 2015). The CEO of Aurizon, Hockridge has tried to enhance the productivity growth for about four years. Though he has taken some policies, the general business of Aurizon has been suffering from the last year (Stevens, 2017). The operating ratio represents the effectiveness of the management of a company by comparing its operating expenses to the net sales. In other words, it can be said that it is the ratio of the operating expense and the net sales. The operating ratio (OR) was 73% this financial year whereas it was 74.8% in the last financial year which shows a deterioration of the values.  Therefore, in the recent days, the coal business is trying very hard to increase the volume of its profits (Stevens, 2015).

2.2 Impact of Issues on Management Experience of Aurizon

            This part of the analysis explains the impacts of different issues (which have been discussed in the previous part) on the management experience of Aurizon. The difficulties and challenges of this rail industry have an overall negative impact on the working culture as well as the management systems of Aurizon. The prospects of this company Aurizon are getting smaller. This railway group is taking into account the asset sales as well as minimizing costs in order to make profits.Once this company had decided to expand their business by manufacturing railway networks in Pilbara of Western Australia and Galilee Basin of Queensland but the deterioration in the coal prices for the last four years reduced the volume of their expected coal, and the management team of this company was compelled to withdraw their decision. It is an adverse impact on this Aurizon Company (Stevens, 2016).

 The railway industry has reduced 600 jobs in the last year and predicted that they might have to reduce more jobs in the future. By applying this strategy, they may be able to mitigate their costs worth $250 million in the next few years. Many business analysts had reduced the 1 year price target on the stocks when the haulage group of railway presented 88 percent reduction in their annual net profit which is equivalent to $ 72 million. They have also estimated that the amount of carrying the flat coal would be approximately 200 million tons in the financial year 2016-2017 (McPhail et al., 2017). Figure 1 explains the growth rate of the amount of coal export from the Queensland and Hunter Valley. This fact is very clear from the graph that the growth rate is somewhere increasing or somewhere decreasing. It does not follow a constant trend of either increasing or decreasing throughout the period (Stevens, 2017).

Queensland and Hunter Valley coal export volume growth rates

Figure 1: growth rates of Queensland and Hunter Valley coal export volume

(Source: rtbu.com.au, 2017)

            The target price of the Citigroup decreased from $4.76 to $4.60 whereas that of the Credit Suisse decreased from $4.80 to $4.65 and lastly the target price of the Deutsche Bank dropped from $5.20 to $4.95 (rtbu.com.au, 2017). Due to all these factors, the railway management group of Queensland has to take some proper decisions such as cut jobs for reducing their costs. It can be hoped that the new manager will be dedicated and experienced enough to handle all these difficult situations with intelligence (Stevens, 2016).

3. Employment Relation and Human Resource Management Issues –Present and Future          Context

            This section of the report describes the employment relation as well as the different issues related to human resource management in both present and future context. This employment generation is related to the human resource management issues. The Credit Suisse is presently anticipating that in future Aurizon would make a profit of around 27.8 percent in the year 2018 (Winter, 2012). At the same time, the Deutsche Bank has predicted that Aurizon would be able to make around 30 percent profit margin if the company sells its freight business, which is making a loss for the company.  Aurizon has not discarded the fact yet to sell off the entire or a part of this freight as well as the intermodal business (Wiggins, 2017).

The railway company Aurizon has delayed their exercising rights in order to terminate their enterprise contracts, which cover the train drivers of Queensland,and alsomaintenance of the crews whereas the full bench of a Federal Court evaluates thoroughly the unexpected victory of the company which is related to the comprehensive Fair Work Commission case (Hyland, 2017). Thelargest rail freighter of this country has used up the last two years by taking some annoying as well as unproductive decisions with the rail unions. The proposed changes to thelegacy project arrangements were locked by the Queensland government in order to provide support for the privatization of the coal freight monopoly, which is owned by the state. If their proposed policy is successful, then in future there is a chance of gaining profits for the Aurizon Company (Stevens, 2015).

            Aurizon has been facing a strong competition for buying the GRail with the rail haulage group; Pacific National (Hyland, 2017). Now, the Deutsche Bank has predicted the fact that this would reduce the target price of Aurizon. On the other hand, the chance of attaining the coal rail haulage of the Hunter Valley would increase the coal amounts and also it may expand the business of Ausrion in New South Wales (NSW). This entirely depends on how this company would be able to manage these circumstances. This will have an impact on the employment relation and the human resource management issues. If a company is making a loss for a long time, then it is very obvious that in order to decrease their costs, they will cut some jobs or do not recruit new employees.  On the other hand, if a company makes enough profit by expanding their business, then they will recruit new staffs for their business organization (Fair Work Commission, 2015).

4. Impact on Working Life of New Manager in Australia

This last part of the analysis focuses on the working life of the new manager in Australia who will be transferred there soon. As presently, the railway company Aurizon is facing some problems; therefore the manager of this company may have to face some difficulties initially. Apart from the difficulties, there are also some opportunities for the manager where he can utilize his intelligence, experience as well as his brainpower. It has been found from the previous experiences that the rail freighter is an unremunerated business for this Aurizon Company. Now, it depends on the new manager what he will do with this business. He may sell this to other companies or may take such strategies which can make this business profitable. It would be a challenging situation for the new manager that how he would handle this situation (Wiggins, 2016).

            The post boom crisis is a major problem in recent days which has experienced the lower productivity and the decreasing growth rates. To overcome this problem, the manager has to take some cost reducing strategies. Previously, this company has decided to increase their network in Pilbara of Western Australia and Galilee Basin of Queensland, but ultimately, this was not fulfilled due to some reasons which have been explained earlier(Hall and Frew, 2016). Here, there is a scope of the manager to complete this unfinished project. Besides that, in every job, a person has to face new challenges. Now, it is the capability and intelligence of the person to overcome those difficulties. Similarly, this new manager has a lot of scopes where he can show his ability to perform the tasks.  He can improve those areas which the company needs to be improved(Wright and Lansbury, 2016.)

Apart from the professional life, the new manager has to tackle his personal life also with same intelligence. The person is going to be posted in a new place. Therefore, it is quite obvious that he would have to face some problems at the beginning. Gradually, he will be accustomed to the new place and new working culture. If the personal life of a person is hampered, then he cannot give full concentration and dedication to his professional life. Therefore, he has to maintain his personal as well as professional life simultaneously. If he is happy and satisfied in his personal life, then only he can fully concentrate on his job and can handle all the difficult situations perfectly.

5. Conclusion

This part of the study sums up the entire findings and discussions of this paper. This report is prepared for a manager who is going to be transferred from the National rail of UK to the Aurizon of Australia. This report is mainly based on the background of the Aurizon railways and the working culture of this place. The first part of this paper introduces the Aurizon railway company, which is linked with the coal industry of this nation. The next part of this study presentsthe current scenario of the railway industry of Queensland, which is also known as QR (Queensland Rail). It is owned bythe Queensland Government, and it has almost 8000 kilometres of railway track, 6000 employees and approximately £7 billion assets(Yenet al., 2015). The business of QR has basically three products such as City train, Regional Network, and travel and tourism. The later section of the analysis provides the major issues and challenges of the Railway industry of Queensland. Presently, this company is suffering from many problems. In the post boom period, there is a crisis in the coal industry. Moreover, the growth rate of this industry has deteriorated in recent years.All these factors have a significant impact on the management experience of Aurizon.

Previously, this company has taken a decision of expanding their business by manufacturing the railway networks in Pilbara and Galilee Basin, but they could not complete this project successfully. In order to minimize the costs, recently they have cut 600 jobs in the past year and might cut some more jobs in the future.The next section of the report describes the employment relation along with the different issues related to human resource management in both present and future context. In the last part of the analysis, the working life of the new manager in Australia has been discussed. Initially, he may have to face some challenges, but it is expected from him that he would overcome all those difficult situations and implement some strategies to expand the business of this railway company.