The hard work that ICN state offices do across the country ensures that Tier 1 contractors keep to their obligations to ensure local content, according to Aries Rail Business Development Manager Jeremy Smith.
Aries Rail, an ICN premium subscriber, has set up a base in Queensland to service the Cross River Rail project.
"There's very often a lot of cynicism about local content and what it really means further down the food chain. You have all of these very significant projects that have been generational spends in every major city. Kind of a rinse and repeat," Jeremy said.
He said, however, that the environment that ICN has engendered across Australia meant greater expectations and obligations for major project owners to prove they are genuine when it comes to local content.
"It's very hard to understate the significance of what ICN has created. I think we are now at that point where it is well understood that you can't pay lip service to local content. That you must have a genuinely feasible and auditable plan and be prepared to have it looked at - which is exactly what the ICN does."
Local content obligations for the Cross River Rail project drove Aries Rail to open a Queensland location.
"These obligations are clear as day in tender documents," Jeremy said
"We know this taken seriously because the state polices it with the ICN. It would not have been possible for us to bid this if we were not able to say we will be a local business to Queensland.
"We met all the hardwired obligations of the tender, and if we won the work, it would be as a local business."
Jeremy said this reassurance that local content is policed and audited "can really influence a smaller player like Aries rail to make a massive leap of faith" by introducing itself into Queensland.
format_quoteIt's very hard to understate the significance of what ICN has created. I think we are now at that point where it is well understood that you can't pay lip service to local content.
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Aries Rail began in Western Australia in 2001, providing design, engineering and manufacturing solutions within the rail industry.
In 2020 UGL, as part of the PULSE consortium, invited the company to tender for work packages in the Cross River Rail project tunnel works.
The project had a clear focus on maximising local content, and at that time, Aries Rail did not have a presence in Queensland.
The company became aware of a local facility on the market and in its tender response, it stressed a willingness to buy this business, or set up a greenfield facility.
On this back of this obligation, Aries Rail won the tender, bought the local business and established itself in Queensland.
"This directly means we now have a business and base in Queensland, as well as improved relationships and better brand awareness," Jeremy said.
"This in turn will lead to other opportunities with it and other stakeholders on the project in addition to State entities such as Queensland Rail."
"We now have, through ICN Gateway, the engagement on the inland rail project and the Gold Coast light rail stage 3.
Jeremy has been a fan of ICN, and the ICN Gateway, since before he started working at Aries Rail.
"It's very cost-effective business development for an SME. It doesn't replace your own business development, but it's very good at flagging things you might just miss."
Find out more about Aries Rail on the company website.
