Austrade media release

23 October 2007

In a significant coup, a Sydney-based small business, Delkor Rail has won a trial contract to upgrade rail lines in Tokyo despite Japan’s penchant for using local products and its reputation as arguably the world’s most high-tech savvy country.

Austrade’s Senior Export Adviser Ian Robb said when it comes to technology, the Japanese are well known for always attempting to find something or anything to do the job from within its own borders rather than import.

“The usual method in Japan is to develop alternative technologies in an effort to avoid the necessity of purchasing from outside,” Mr Robb said. 

“Delkor’s products have been recognised as producing the quietest railways in the world and that reputation and ability helped secure this contract win.

“Hopefully other Australian firms will find inspiration from Delkor and aspire to export their technology. 

“Delkor’s success comes through its undertaking of other very difficult projects of a similar nature and its continued research and development and improvement of the product over the years of implementation. 

“Austrade was able to assist Delkor win the project in Japan through the support of the Australian Railway Industry Corporation (ARIC).  Between Austrade and ARIC, Delkor participated in a number of exhibitions and projects in the South East Asia region which aided its reputation.

“Austrade can assist others to provide the opportunities to participate in highly focussed marketing activities and by identifying significant opportunities,” he said.

Delkor’s Director Peter Schonstein said in securing the contract, he found the Japanese to be good to deal with.

“The Japanese approach in our case was slow and steady,” Mr Schohnstein said.

“I believe the thing that set us apart from our competitors not only in Japan, but around the world was the simplicity of our product along with performance and its longevity.

“Even though we’re a reasonably small firm with just 12 staff, our exports of rail fasteners account for 60 per cent of business.  We already export to Korea, Germany, Hong Kong, China, Switzerland, Span, Canada, the US, Singapore and now Japan.

“I’d recommend other Australian businesses export predominantly because the market in Australia is limited in comparison to Asia – in size of population.  In addition, I recommend they get in touch with Austrade to help fast track export success,” he said.

Austrade, the Australian Government’s export development agency administers programs that assist businesses achieve and develop export success; they are the New Exporter Development (NED) program and the Export Market Development Grants (EMDG) scheme. 

The NED program provides free services to exporters such as advice and information about getting into export, coaching and advice on exporting and on-ground assistance in overseas markets.  The EMDG scheme is a key Australian Government financial assistance program for aspiring and current exporters.  The scheme reimburses up to 50 per cent of eligible export promotion expenditure above a threshold of $15,000. 

For more information on the scheme and how Austrade can help you, contact Austrade on 13 28 78 or visit http://www.austrade.gov.au

Media contact

Name:  Karla Davies
Tel:      +61 2 9390 2745
Mob:     0421 288 755
Email:   karla.davies@austrade.gov.au

For further news and information from the Australian Trade Commission (Austrade) visit www.austrade.gov.au/mediacentre.