MarCover:Layout 1 25/02/2015 5:04 PM Page 1 Sound theory PKP IC in crisis Rhône running Reducing freight wagon noise at source Where next for Polish long-distance operator? Rail dominates Lyon’s €1bn five-year transit plan IRJ March 2015 I Volume 55 Issue 3 www.railjournal.com International Railway Journal Towering ambition Gulf rail investment continues to climb IRJMARXX (Hitachi):Layout 1 23/02/2015 09:59 Inspiration delivered. Page 1 MarContents:Layout 1 25/02/2015 5:17 PM Page 3 Contents March 2015 Volume 55 issue 3 News 4 6 12 This month News Transit news 16 20 Financial news News analysis Middle East 26 Delivering the GCC’s integrated railway The key players speak out on 2135km project 32 2015: a key year for Oman Rail page 38 Urban rail 38 43 Lyon’s É1bn transit blueprint Rail at the heart of five-year strategy Also in this issue Santos light rail ready to roll 55 57 57 58 First phase of network due to open this month Noise and vibration 47 Rendezvous Full contact list Advertisers index The last word Sound theory PKP IC in crisis Rhône running Reducing freight wagon noise at source Where next for Polish long-distance operator? Rail dominates Lyon’s €1bn five-year transit plan IRJ March 2015 I Volume 55 Issue 3 www.railjournal.com International Railway Journal Reducing wagon noise at the source Tackling troublesome rolling noise and curve squeal Front cover Croatia 51 Reconstructing a war-torn network EU funds boost transport development strategy Dubai Citadis: the Gulf region’s first tramway and the world’s first 100% catenary-free line, made by Alstom. Towering ambition Gulf rail investment continues to climb Contact us Editorial Offices Post 46 Killigrew Street, Falmouth Cornwall TR11 3PP, UK Tel +44 1326 313945 Fax +44 1326 211576 Web www.railjournal.com Editor-in-Chief David Briginshaw Associate Editor Keith Barrow Features Editor Kevin Smith Data & Markets Editor Angus Hammond Senior Designer Fiona Browning Production Assistant Sue Morant [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] Advertising Sales Offices Post Suite N2 The Priory, Syresham Gardens Haywards Heath, West Sussex RH16 3LB, UK Tel +44 1444 416368 Fax +44 1444 458185 International Area Sales Manager Louise Cooper Tel +44 1444 416368 [email protected] International Area Sales Manager Julie Richardson Tel +44 1444 416368 [email protected] International Railway Journal (Print ISSN 2161-7376, Digital ISSN 2161-7368), is published monthly by Simmons-Boardman Publishing Corp, 55 Broad Street, 26th Fl, New York, NY 10004-2580, USA. Printed in Great Britain by Buxton Press and distributed in the USA by Mail Right International, 1637 Stelton Road B4, Piscataway, NJ 08854, USA. Periodicals postage paid at Piscataway, NJ and additional mailing offices. COPYRIGHT © Simmons-Boardman Publishing Corporation 2015. All rights reserved. Contents may not be reproduced without permission. For reprint information please contact Editor-in-Chief. For subscriptions & address changes, please call +1 402 346-4740, Fax +1 402 346-3670, Email [email protected] or write to: International Railway Journal, Simmons-Boardman Publishing Corp, PO Box 1172 Skokie, IL 60076-8172, USA. POSTMASTER: Send address changes to International Railway Journal, PO Box 1172, Skokie, IL 60076-8172, USA. IRJ March 2015 3 Photo: Sytral National network plan builds momentum March TM:Layout 1 25/02/2015 4:33 PM Page 4 This month David Briginshaw Editor-in-Chief Declining oil price poses serious threat to railways T HE dramatic fall in oil prices has already claimed its first railway casualties, including Mexico’s troubled high-speed project, and it could have serious consequences for rail if the cost of road transport remains at a much lower level. Looking at the effect on investment first, oil-producing countries have seen a massive drop in their revenues. As we report this month, Middle East countries have largely pledged to maintain investment in rail projects as they form a key element in their attempt to diversify their economies away from a dependence on oil and exploit their mineral wealth. However, this is not the case in Mexico where around onethird of government spending is derived from oil revenue. The government has responded to the drop in income by slashing $US 9bn from this year’s national budget and along with it two rail projects: the 210km high-speed line from Mexico City to Queretaro and a new 278km line across the tip of the Yucatán peninsula from Mérida to Puerto Venado. This leaves just one project remaining in president Enrique Peña Nieto’s passenger rail revival programme: the 55.7km new line from Mexico City west to Toluca on which construction has already started. President Peña Nieto came to power in December 2012 and one of his pledges was to reinvigorate the Mexican economy. In mid-2013 the president announced ambitious plans to boost infrastructure investment by 50% to Pesos 4 trillion, or around $US 300bn at 2013 conversion rates, for the 4 period up to 2018. The president said this could trigger additional public and private investment of up to Pesos 1.3 trillion. “The size of these figures reflects the government’s commitment to make transport and communications a strategic engine for national development,” Peña Nieto said at the time. In February 2014 the government unveiled a plan to invest Pesos 125bn in 13 passenger and freight railway projects. As studies for the high-speed line were already underway, the Federal Secretariat of Communications and Transport (SCT) was able to invite tenders to design, build, operate and maintain the 300km/h line in July 2014. instructed SCT to launch a new one. SCT said in January that it would issue preliminary bidding documents by January 14 for a revised tender, but announced on January 28 that it had postponed publication of the bidding documents to accommodate feedback from prospective bidders and the competition authority. Just two days later the government pulled the plug on both the high-speed and Yucatán projects citing a worsening economic situation and falling oil revenues. One cannot help thinking that SCT’s poor handling of the high-speed project made it an easy target for indefinite suspension when the government decided it needed to cut spending. Railways need to be fully aware of changes in the market and must be ready to react to avoid traffic haemorrhaging away. SCT announced in October that a Chinese consortium was the sole bidder. The fact that 16 companies, including some of the leaders in high-speed rail technology, chose not to participate should have raised alarm bells at SCT. Three months was far too short a period to prepare technical and financial proposals for such a major project. SCT also wanted to commission the line by 2018, an ambitious target which may also have unnerved prospective bidders. Nevertheless, SCT confirmed on November 3 that it had selected a ChineseMexican consortium to proceed with the project. But just three days later Peña Nieto annulled the tender and Mexico is not alone in making a hash of trying to implement a high-speed rail project. Brazil is in a similar situation with its numerous attempts to kick start its Rio - São Paulo - Campinas scheme. High-speed rail is by its very nature at the cutting edge of railway technology and such schemes need careful planning and technical expertise to implement them successfully. Nations lacking high-speed rail expertise would do well to obtain advice and guidance from countries with good experience to avoid the mistakes which have been made in both Mexico and Brazil. Turning to the effect of the oil price fall on current operations, railways are vulnerable to increased competition from road vehicles which now cost less to run. As always, railways need to be fully aware of changes in the market and must be ready to react to avoid traffic haemorrhaging away. Long-distance passenger traffic is most vulnerable to cheaper motoring if rail fails to respond through things such as special promotions, increased marketing or simply by cutting fares. Irish Rail and Portuguese Trains have both reported modest increases in traffic for the first time since the financial crisis which affected their countries so badly, so it would be a great pity if these signs of revival are snuffed out due to lower fuel prices and a failure to react. Some railways can ill afford to see further reductions in traffic. Our news analysis report on Poland makes grim reading, where reluctance to modernise infrastructure and rolling stock after the end of communism was compounded by a failure to change the passenger service into a commercial business focused on the needs of customers resulting in a steady decline in traffic. The situation in Poland is similar to that in western Europe after the Second World War, where railways did not adapt to the rapid growth in car ownership and air travel and lost a large amount of traffic and market share, which took decades to recover. One has to ask if it is the curse of the railway industry to continually repeat the mistakes of the past? [email protected] IRJ March 2015 IRJMARXX (Plasser):Layout 1 02/02/2015 17:04 Page 1 HOCHLEISTUNG I PRÄZISION I ZUVERLÄSSIGKEIT HIGH CAPACITY I PRECISION I RELIABILITY City sized www.plassertheurer.com “Plasser & Theurer“, “Plasser“ and “P&T“ are internationally registered trademarks Rail-borne commuter traffic forms the backbone of urban transport systems as a safe, reliable and environmentally friendly means of transport. Plasser & Theurer offers a complete range of machinery and equipment for maintenance of the track in the field of underground networks and light rail systems. On the urban transport sector, where there is often restricted space and a limited amount of time, innovative track maintenance technology made by Plasser & Theurer has become an indispensable feature of modern track maintenance. MarNews6&7:Layout 1 25/02/2015 3:40 PM Page 6 News Hitachi wins race for Finmeccanica rail assets Marco Chiandoni Regional editor H ITACHI announced on February 24 that it has reached a binding agreement with the board of Finmeccanica to acquire all of the shares in AnsaldoBreda and the Italian conglomerate’s 40% stake in Ansaldo STS. Hitachi will pay ƒ9.65 per share for Ansaldo STS or a total of ƒ773m, although the agreed purchase price is subject to a possible preclosing downward adjustment. The purchase price for AnsaldoBreda, including real estate assets, is ƒ36m. Finmeccanica says the deal includes the current business of AnsaldoBreda with the “exclusion of some revamping activities and certain residual contracts,” although it has not disclosed which contracts are not included. Both transactions are still subject to regulatory and antitrust approval, but Hitachi expects to achieve financial close later this year. Following the close of the acquisitions Hitachi will launch a mandatory tender offer on all remaining shares in Ansaldo STS, in accordance with Italian law. “The sale of the rail transport business is a key step in the execution of our industrial plan, aimed at focusing and strengthening the group in the core aerospace, defence, and security business,” says Finmeccanica CEO Mr Mauro Moretti. “The transactions announced today confirm our commitment to deliver on our economic and financial objectives contributing to significantly reducing net debt. Hitachi has clearly recognised the know-how and expertise which would be contributed by both AnsaldoBreda and Ansaldo STS within the new group. I am sure both companies will play a key role in the future development of the Hitachi Rail business worldwide.” Finmeccanica says it expects to reduce net debt by ƒ600m as a result of the sale with a net capital gain of ƒ250m. Hitachi says the acquisition will strengthen its position in signalling and traffic management systems, expand turnkey operations, and add to its product portfolio. “With the addition of these companies we are in an excellent position to transform Hitachi Rail into one of the strongest global players in the sector,” says Hitachi Rail global CEO Mr Alistair Dormer. “Today’s announcement is a further testament to the long-term vision we have for growth of Hitachi. By combining forces, we significantly strengthen our market position, aspiring to become a leading global total solution provider to the rail sector.” On February 20 the steering committee of Finmeccanica held a two-hour meeting to discuss the sale. According to reports in the Italian financial press China’s Insigma group submitted a binding offer to RZD Sakhalin Island locomotives on test R USSIAN Railways (RZD) has begun six months of trials with the first of 32 diesel locomotives being supplied by Sinara for the 1067mm-gauge network on the Pacific island of Sakhalin. Sinara has delivered two of 6 the 2.94MW double-unit TG16M locomotives to the island for tests. The fleet is due to be introduced in July and will primarily be used on mineral trains on the steeply-graded Yuzhno - Sakhalinsk - Kholmsk line. The 2.94MW locomotives are fitted with Voith L 530 breU2 transmission, a cooling system equipped with SilentVent fans and doubleblock radiators, and BR153/ BR199 couplings. Finmeccanica and this expired at midnight on February 20. However, the CEO of Insigma reportedly sent letters to the board of Finmeccanica together with UBS, and Mediobanca, which were assisting in the transaction, claiming it reserved the right to extend the offer. Nonetheless, Moretti was said to favour a deal with Hitachi, which has much higher annual turnover than its Chinese competitor, even though by this stage it had not submitted a binding offer. There were further indications that the deal would go Hitachi’s way at a meeting of the steering committee of Ansaldo STS, which was held immediately after the Finmeccanica meeting, when members voted to proceed to the due diligence stage and open the company’s books to Hitachi. A binding bid was finally submitted for consideration by the Finmeccanica board on the evening of February 23. Talgo mulls €400m IPO S PANISH rolling stock manufacturer Talgo has selected JP Morgan, Santander, and Nomura as banking advisors to evaluate the possibility of launching an IPO on the Madrid stock exchange, which is provisionally valued at ƒ400-500m. According to press reports, the advisors will now analyse potential options, starting with plans to float a 50% stake in Pegaso Rail International, the holding company which owns 100% of Patentes Talgo. Pegaso is currently valued at between ƒ800m and ƒ1bn. Although unconfirmed by the company, current Pegaso shareholders include Trilantic Capital Partners (64%) and MCH Private Equity (16%), with the founding Oriol family retaining a 20% stake. Talgo previously planned an IPO but put its listing on hold in 2011 due to turbulence in the financial markets. IRJ March 2015 MarNews6&7:Layout 1 25/02/2015 3:40 PM Page 7 In brief Siemens chosen for Rhine-Ruhr Express fleet Brazil The Brazilian Railway Industry Association (Abifer) says rail vehicle suppliers produced 4703 freight wagons in 2014 - more than double the 2280 produced in 2013 - and 374 passenger coaches, an increase of 70% from 219 in 2013. Locomotive production remained static at 80 units. Total revenue for the railway industry, including its supply chain, was Reais 5.6bn ($US 2.02bn), a 24% increase compared with Reais 4.5 billion in 2013. China China Railway Group’s second bureau has started preliminary work on the 350km/h highspeed line between Guiyang and Nanning. The 533km line is expected to cost Yuan 74bn ($US 11.83bn). R HINE-Ruhr Transport Authority (VRR) announced on February 10 that it has selected Siemens as preferred bidder for a contract to supply 82 EMUs for the Rhine-Ruhr Express (RRX) network and maintain the fleet for 30 years. The deal is still subject to approval by the five tendering authorities, VRR, Rhineland Local Transport (NVR), Westphalia-Lippe Local Transport (NVR), North Rhineland Palatinate Regional Rail Transport (ZSPNV-Nord) and North Hessen Transport (NVV). A decision is due to be made by March 26. VRR says Siemens made a better economic offer than its two competitors in the tender, Stadler and a consortium of Alstom and Škoda. The total value of the order is estimated to be around ƒ900m. The 160km/h four-car trains will be based on Siemens’ Desiro High-Capacity (HC) platform, which combines single-deck driving cars with double-deck intermediate cars. According to Siemens, a 105m-long four-car Desiro HC set with two double-deck cars will seat up to 420 passengers. The first trains are due to enter service in time for the launch of the RRX concession in December 2018. According to the tender, 71 trains will be required to operate the full timetable with the remaining sets covering maintenance. The five-line RRX network is intended to bring a consistently high-quality fast regional rail service to Germany’s most denselypopulated region, with trains running at 15-minute intervals on the core Dortmund Cologne line. VRR says the transport authorities decided to procure rolling stock directly, rather than through the operating concessionaire, because this will result in lower life-cycle costs and a standardised fleet. DB Regio opposed this structure and launched a legal challenge against VRR, which was rejected by a court in Münster last October. Mexico cancels high-speed project M EXICO’s troubled highspeed plans suffered another major setback on January 30, when the federal government announced that the Mexico City - Queretaro high-speed project will be suspended indefinitely due to the worsening economic situation and declining oil prices, which have put pressure on public finances. Secretary of the treasury and public finance Dr Luis Videgaray also confirmed that the proposed mixed-traffic line between Merida, Yucatán and IRJ March 2015 Puerto Venado in neighbouring Quintana Roo has also been cancelled. Just two days previously the Federal Secretariat of Communications and Transport (SCT) announced that it would postpone the publication of final bidding documents for the tender to build and maintain the 210km Mexico City - Queretaro line to accommodate feedback from prospective bidders and the country’s competition authorities. Last November the government annulled the tender just days after SCT announced that it would sign a contract with the sole bidder, a consortium of Chinese and Mexican companies. China Railway Construction Corporation is now seeking compensation from the Mexican government. Around a third of government spending depends on oil revenues and with oil prices falling significantly Mexico has responded by cutting $US 9bn from its 2015 budget. Ethiopia Tendering for construction of a 280km railway from Semera east to the Djibouti port of Tadjourah has been postponed for a fifth time after bidders requested more time to prepare their bids. However, one contractor claimed the delay has was down to Ethiopian Railways Corporation (ERC) altering the terms of the tender to only accept bids from contractors with experience of building a minimum of 180km of new railway or highway in projects worth more than $US 200m. Finland The government has pulled the plug on the 8km Helsinki City Rail Loop following disagreements in the fourparty government over how to fund the ƒ900m project, which would link Pasila with Töölö, the city centre, and Hakaniemi. France SNCF has finally granted TTG Transportation Technology, Australia, approval to provide more than 1500 TGV drivers with hand-held Energymiser Driver Advisory System devices. The contract was awarded in 2014 and is part of SNCF’s programme to improve punctuality and reduce energy consumption. 7 MarNews8&9:Layout 1 25/02/2015 3:47 PM Page 8 News Brazil’s Cosan proceeds with ALL takeover C OSAN Logistics has been granted approval by Brazil’s antitrust regulator Cade to proceed with a takeover of the country’s largest railway operator Latin American Logistics (ALL) through its Rumo Logistics subsidiary, which is expected to create a logistics company worth Reais 11bn ($US 3.85bn). Rumo agreed to buy ALL’s rail division in February 2014 for around $US 3bn in an allstock deal. Cade gave the green light to proceed on February 11 as long as the new freight company continues to guarantee third-party access to Cosan’s two dry bulk terminals at Santos, Brazil’s largest port. This is intended to address sugar and grain producers’ concerns that the deal will create a monopoly on railway access to Santos. Cosan, which is based in São Paulo, is a producer of bioethanol, sugar, energy and goods, and already contracts ALL to provide transport services to Rumo. The merger ends a long-standing legal dispute between the two companies over contracts to deliver Cosan’s sugar over ALL’s infrastructure, with Cosan arguing that ALL was failing to invest sufficiently in its infrastructure. China to study Mongolian mineral line N ORTHERN Railways (NR), the rail infrastructure subsidiary of Aspire Mining, Australia, has appointed China Railways 20 Bureau Group, a subsidiary of China Railway Construction Corporation, to carry out a feasibility study for its proposed 547km Erdenet Ovoot line in Mongolia. Aspire says preliminary work on mapping the first 250km of the east-west route is already underway and it has made an initial payment of $US 250,000. Further payments will be conditional on the project receiving a construction concession and funding. The first stage feasibility study will include a detailed construction schedule and cost estimates for the entire route. If this study is approved, NR will commission a bankable study to develop 8 the project in more detail. The most recent prefeasibility report indicates the railway will require a total investment of around $US 1.3bn plus contingencies. The project will be funded primarily through an engineering, procurement and construction (EPC) contractor as well as debt and equity sources. The railway was included in the Mongolian government’s recently-published national rail policy and will support Aspire’s Ovoot Coking Coal project, which is expected to generate output of 5 million tonnes in its first year of operation. Both the railway and the mine are due to be commissioned in 2018. In addition to traffic from the mine, the new line is expected to carry general freight and passenger traffic. Chinese rail equipment exports up 22.6% in 2014 T HE total value of rail equipment exported from China surged by 22.6% to Yuan 26.77bn ($US 4.38bn) last year, according to statistics released last month by the General Administration of Customs (GAC). Chinese equipment was shipped to more than 30 countries, with the largest markets being Southeast Asia (Yuan 3.84bn), Argentina (Yuan 3.45bn), and Australia (Yuan 3.35bn). The products of state-owned companies including CNR and CSR accounted for more than 70% of exports in 2014. The value of locomotives sold rose by 13.3% to Yuan 15.45bn, while the export of multiple units, light rail vehicles, coaches and wagons soared by 47%. In December total exports reached Yuan 2.81bn, a 42.3% year-on-year increase. China’s international railway equipment business has grown substantially in recent years from $US 80m in 2001, with average annual growth of more than 34%. German passenger numbers reach record levels but freight stagnates P ASSENGER numbers on the German rail network reached their highest recorded level in 2014, but railfreight stagnated despite growth in the overall freight market, according to annual figures published last month by the German Federal Statistical Office (Destatis). Passenger numbers for local rail services (including S-Bahn trains) grew by 2.1% to 2.52 billion, while tram and U-Bahn ridership increased by 1.7% to 3.85 billion. For long-distance travel, ridership on inter-city trains continued its recent slow decline with a further drop of 1.1% to 130 million passengers. Correspondingly, the recentlyliberalised long-distance bus market continued to experience surging growth, with passenger numbers more than doubling from 8.2 million to an estimated 17-19 million, with precise figures still to be finalised. Meanwhile railfreight operators failed to capitalise on growth in the overall freight transport market as strikes held back volumes. While total inland freight volumes increased by 2.9% to 4.5 billion tonnes (656.9 billion tonne-km), almost all of the traffic gained went by road. The share of the total carried by rail fell by 2.4% to 364.9 million tonnes, with distance travelled remaining static at 112.6 billion tonne-km. The drop in railfreight volumes is attributed to extensive strike action which affected the largest railfreight operator DB Schenker. IRJ March 2015 MarNews8&9:Layout 1 25/02/2015 3:47 PM Page 9 In brief Ghana Junior transport minister Ms Joyce Mogtari says that a contract to rebuild the 330km eastern railway corridor will be awarded by the end of the year. The project involves reconstruction of the 1067mmgauge railway, converting it to standard gauge, strengthening and widening bridges and culverts, and rehabilitation of signalling and telecoms. International Hallandsås tunnel nears completion S WEDISH infrastructure manager Trafikverket announced on February 12 that tracklaying has been completed in the 8.7km Hallandsås tunnel, Sweden’s longest railway tunnel, and the SKr 10.5bn ($US 1.25bn) project is on course for its official opening on December 13. Construction of the twinbore tunnel between Bastad and Förslöv originally started as long ago as 1992 but was suspended in 1997 when the project was one-third complete because of serious environmental concerns. Tunnelling eventually resumed in 2005 and the final concrete segment was installed in September 2013. Tracklaying has been carried out using a Plasser & Theurer SVM 1000 tracklaying train, which can lay up to 2km of track in 24 hours. Over the next few months installation of signalling, electrification, and telecommunications equipment will continue both inside the tunnel and on the approaches, with driver and rescue staff training scheduled to begin in the summer. The tunnel is a key element in the upgrading of Sweden’s Gothenburg - Malmö West Coast Line, replacing a steeply-graded single-track section on the line which is now 85% double-track. Morocco plans $US 780m rail investment in 2015 T HE board of Moroccan National Railways (ONCF) approved a capital budget of Dirhams 7.5bn ($US 780m) for this year at a meeting in Rabat on February 19, which was chaired by minister for infrastructure, transport and logistics Mr Aziz Rabbah. More than half of the budget, Dirhams 4bn, is allocated to the 200km Tangiers - Kenitra high-speed line, which is currently under construction, while the remaining Dirhams 3.5bn will be used for enhancements on the conventional network. Planned investments include construction of a third track on the Kenitra - Casablanca line, track doubling on the Settat - Marrakech line, station modernisation, refurbishment of existing rolling stock and acquisition of new trains, and improvements to safety and security. The government of Flanders, Belgium, has again raised the prospect of reopening the Iron Rhine, a direct rail link between the port of Antwerp and Mönchengladbach, which closed in the 1990s. Hungary’s Györ-SopronEbenfurth Railway (GySEV) is planning to form a joint venture company with German Rail (DB) to develop freight traffic from the Black Sea to Passau on the German/ Austrian border. DB will hold a 51% stake with GySEV providing locomotives and traincrew. Israel Ridership on Israel Railways (IR) services increased for the third successive year in 2014, with passenger numbers rising by 7.5% year-on-year to 48.5 million. Much of the growth is attributed to the launch of a new timetable in June which brought increased frequencies on many routes and a daily record of 196,000 passengers. Netherlands P&O Ferries says it will begin work soon on a project to expand its rail hub at Rotterdam Europoort to accommodate burgeoning traffic at the terminal. Railfreight volumes through the terminal increased by 43% in 2013 and 78% last year, with 80% growth expected in 2015. Norway Photo: David Gubler IRJ March 2015 Infrastructure manager Jernbaneverket has been granted approval to replace copper cables with an aluminium alternative following a successful trial which resulted in a dramatic fall in thefts. 9 MarNews10&11:Layout 1 25/02/2015 3:56 PM Page 10 News DB loses Nuremberg S-Bahn to National Express Keith Barrow Associate editor F OLLOWING an international tender, the Bavarian Railway Authority (BEG) has selected National Express Rail, the German subsidiary of British rail and long-distance bus operator National Express, as preferred bidder for two 12-year contracts to operate the Nuremberg S-Bahn network. BEG tendered the five-line network as two contracts as it was considered too sizeable for a single tender. With the exception of the four-line network in Bremen, all S-Bahn services in Germany are currently operated by German Rail (DB). National Express will take over the Nuremberg S-Bahn from DB in December 2018 and by that time the network will have expanded by a further 48km to reach 272km. All services will be operated by new rolling stock and National Express will replace the ageing locomotive-hauled trains and much newer Talent 2 EMUs currently used by DB with a fleet of 38 five-car RegioPanter EMUs from Skoda. The ƒ360m contract is the first order for RegioPanter trains for operation in Germany. Timetables and frequencies have not yet been announced as it is unclear whether all planned infrastructure enhancements will be completed in time for the start of the 2019 timetable in December 2018. Performance criteria specified by BEG include a minimum number of seats per train and the presence of security guards on all services. National Express will adopt BEG’s quality measurement system and will be subject to monitoring by the authority. National Express says it expects to generate ƒ1.4bn in revenues over the duration of the concession. National Express will begin operating its first German regional concession in December, when it takes over RE7 (Rheine - Münster Wuppertal - Cologne - Krefeld) and RB48 (Wuppertal Solingen - Cologne Bonn) services in North Rhine Westphalia. Bombardier is supplying 35 Talent 2 EMUs for these services. Trans-Papua railway study to start soon Linz - Wels four-tracking plan revealed I A NDONESIA’s Ministry of Transport says that a feasibility study into the construction of a 595km railway between Sorong and Jayapura in Papua will begin this year. According to a document released last month, the line will consist of a 390km section between Sorong and Manokwari and a 205km Sarmi - Jayapura section. However, the report did not give any specific details of the Manokwari - Sarmi section. Feasibility studies into both projects will start this year, and detailed design and 10 environmental impact of the Sorong - Manokwari section will take place in 2016 followed by a 2.5-year land procurement process that will begin in 2017. Construction is expected to start in 2018 with completion scheduled for 2019. Detailed design and environmental impact studies on the Sarmi - Jayapura section will also take place in 2016-17, with land procurement starting in 201819, and construction after that. The project is expected to cost Rupiah 10.61 trillion ($US 831.3m). USTRIAN Federal Railways (ÖBB) has finalised the details of a project to quadruple the Linz Wels section of the Vienna Salzburg line. From Linz, two additional tracks will run parallel to the existing line as far as Leonding but from there a new alignment will diverge to the south to avoid the towns of Pasching and Hörsching. A new station will be built at Linz Hörsching airport and the existing line through the two towns will be abandoned. Near Oftering, the existing alignment is joined again and the two new tracks will continue in parallel as far as Marchtrenk. From there the line already has four tracks, two of which form the approach to Wels marshalling yard. The new section will be 16km long and will require extensive noise mitigation measures. An environmental assessment is now underway and construction is expected to start on the ƒ660m project in 2018, with completion scheduled for 2026. The Linz - Wels line is one of the busiest in Austria and is currently used by 340 trains per day, with traffic forecast to reach 500 trains per day by 2025. IRJ March 2015 MarNews10&11:Layout 1 25/02/2015 3:56 PM Page 11 In brief Nigerian privatisation bill approved N IGERIA’s Federal Executive Council has approved the Nigerian Railway Authority Bill 2014, which will open up operations to the private sector and relinquish government control of rail infrastructure dating back to the 1957 Railway Act. The bill allows the private sector to build new lines and operate and maintain the 3557km of existing 1067mmgauge infrastructure which is currently the guise of Nigerian Railway Corporation (NRC). The bill has been sent to the National Assembly for debate and final approval. NRC says it requires private investors and modern technical expertise to revive Nigeria’s poorly-maintained railway, which consists of two main lines from Lagos to Nguru and Port Harcourt to Maiduguri. The approval of the bill revives the delayed plans for three separate concessions of 25-30 years for private firms to operate the western, central and eastern railway corridors. Backers sought for Senegal - Mali upgrade T HE African Union (AU) is seeking private investors to support an upgrade of the 1000mm-gauge single-track Dakar - Bamako line to improve connectivity and boost trade between Senegal and landlocked Mali. The $US 3.1bn upgrade entails investment in new track to convert the 1000mm-gauge line to standard gauge, as well as rolling stock, and signalling on the 1128km line, which has not carried any traffic since 2010. China International Railways, China Railway Construction Corporation and Sahara Mining, India, have expressed interest in financing the project. The line was operated by Transrail before being acquired by Belgium’s Vecturis, and forms part of the Dakar Djibouti railway, which will be extended from Djibouti to Libreville, under AU plans. SJ plans major Stockholm - Oslo improvements S WEDISH national passenger operator SJ has revealed plans for major improvements on the Stockholm - Oslo route with the reintroduction of X2000 tilting trains, an increase in frequency, and dramatically improved journey times. From August 9, SJ will replace the two daily InterCity services between the Swedish and Norwegian capitals with three X2000s, reducing the journey time for the 572km trip from 5h 38min to around 4h 30min. SJ previously operated X2000s to Oslo between 2000 and 2004 under its 50:50 Linx venture with Norwegian State Railways (NSB). However, competition from low-fares airlines led to a 40% decline in ridership and SJ decided to redeploy the trains on busier domestic routes. Every year 1.1 million passengers fly between the two capitals. Poland Polish infrastructure manager PKP has commissioned WYG Consulting to carry out a feasibility study of the electrification of around 100km of the Lublin - Stalowa Wola line in southeast Poland. Portugal Portuguese Trains (CP) carried 109 million passengers in 2014, a 3% increase on 2013. This is the highest rate of growth since 2008 and was driven by a 12.6% increase in patronage on long-distance services. CP’s revenues reached ƒ214.5m in 2014, an increase of 5.2%. Russia Aeroexpress has announced it will withdraw its operations in Kazan and Vladivostok to focus solely on serving Moscow’s main airports. Aeroexpress says it may transfer these businesses and their assets to local operators. Aeroexpress lost Roubles 130m ($US 1.96m) on the Kazan service and Roubles 62m in Vladivostok in 2014. Thailand General Thawatchi Samutsakorn, board chairman of State Railway of Thailand Electrified Train (SRTET), the state-owned subsidiary of State Railway of Thailand (SRT) which operates the Bangkok airport express service, has expressed a desire for a private company to operate the service. SRT has the power to grant a concession or establish a PPP. Uzbekistan Tracklaying completed on Borders Railway: Scottish cabinet secretary for infrastructure Mr Keith Brown joined contractors at Tweedbank station on February 12 to attach the final rail clip on the Borders Railway, marking the completion of tracklaying on the 48km line from Newcraighall, south of Edinburgh. The £294m non-electrified line will open in September, restoring rail services to an area isolated from the network since the closure of the Edinburgh - Carlisle Waverley Route in 1969. Around 90% of the new railway uses the alignment of the abandoned line. IRJ March 2015 The International Bank for Reconstruction and Development will provide a $US 195m loan to finance construction of the 124km Angren - Pap railway through the Kamchik Pass, which will create a direct connection between Tashkent and Namangan. The entire project is expected to cost $US 1.63bn, with $US 1.08bn coming from Uzbekistan Railways (UTY), the Uzbek government, and the Uzbek Reconstruction and Development Fund (URDF) and the remainder from international lenders. IRJ 11 MarTN:Layout 1 24/02/2015 6:08 PM Page 12 Transit news Stif approves 101 new trains for Paris T HE board of Ile-de-France transport authority Stif has approved a ƒ1.5bn investment in new rolling stock for the Paris region, including 72 metro trains and 29 suburban EMUs, which will be 100%-funded by the authority. In January Stif, Paris Transport Authority (RATP), and Société du Grand Paris (SGP) signed a ƒ2bn 15-year framework order for up to 217 MP 14 rubber-tyred metro trains with Alstom. Stif will fully-fund the initial order for 35 eight-car trains, which will replace six-car trains on Line 14, enabling capacity to be increased from 30,000 to 35,000 passengers per hour as part of the extension of the line north to Mairie de Saint-Ouen. Stif will also fund a second order for a further 37 eight-car trains for Line 14, which will be required for extensions north to Saint Denis Pleyel and south to Orly Airport. In the longer-term, further trains will be needed for extensions to lines 1, 4 and 11 as well for Line 6 and the Grand Paris express metro network. On the RER network, Stif has exercised a ƒ150.7m option with a consortium of Alstom and Bombardier for 10 additional MI 09 double-deck EMUs for Line A to provide additional capacity on the 109km east-west line, which carries around 1.2 million passengers per day. The 112mlong trains will supplement the 130 sets already in service or on order and are due for delivery in 2017. By the middle of January, 83 MI 09s were in service on Line A and the fleet has covered more than 19 million kilometres since introduction. Finally, Stif will place a ƒ177.6m order with Bombardier for 19 additional class Z 50000 Francilien EMUs for suburban Line L, which runs west from Paris SaintLazare and carries around 312,000 passengers per day. The single-deck trains will be delivered in 2017 and will replace Z6400 EMUs dating from the 1970s. Doha metro systems contract awarded Q ATAR Railways sent a conditional letter of acceptance on February 20 to a consortium of Mitsubishi Heavy Industries (MHI), Mitsubishi Corporation, Kinki Sharyo, Hitachi and Thales, which has been selected as preferred bidder for a turnkey contract to supply electrical and mechanical systems for the first phase of the Doha metro network. Consortium leader MHI will provide power supplies, platform screen doors, trackwork and tunnel ventilation systems, and it will be responsible for overall project management and systems integration. A fleet of 75 three-car driverless trains will be supplied by MHI and Kinki Sharyo. Thales will supply CBTC, telecommunications and security, an integrated operational control centre, and automatic fare collection systems, while Hitachi will be responsible for certain project management functions and will also handle facilities maintenance, including the supply of infrastructure and maintenance vehicles. The first phase of the Doha metro is due to be completed by October 2019. Sydney South West Rail Link opens Ottawa previews Confederation Line LRV: A mock-up of the forthcoming Alstom Citadis Spirit low-floor LRV for Ottawa’s Confederation Line was unveiled on January 29 by the city’s mayor Mr Jim Watson, Member of Parliament for Ottawa-Orléans Mr Royal Galipeau, and Ontario provincial transport minister Mr Steven Del Duca. Alstom will supply 34 LRVs for the 12.5km line from Blair to Tunney’s Pasture, which will open in 2018. The four-section 50m-long vehicles will be designed to operate in multiple and each LRV will accommodate up to 300 passengers. Designer chosen for Copenhagen LRT project C OPENHAGEN metro authority Metroselskabet has appointed a joint venture of Arup and Rambøll to provide design services for the 27km Ring 3 light rail line, which will link 11 districts along the route of the Ring 3 highway in the west of the city. The line from Lundhofte in the north to Ishøj in the south will have 27 stations and services will operate every five 12 minutes at peak times with an end-to-end journey time of around 55 minutes. A fleet of 27 LRVs will be required for the line, which is not expected to open before 2021. Daily ridership is projected to be around 43,000 passengers per day, or 13-14 million passengers per year. The project is budgeted at DKr 4bn ($US 610m) at 2013 prices, including a 15% contingency, with funding expected to come from the state (40%), municipalities (34%), and the Capital Region of Denmark (26%). Arup will be responsible for design co-ordination and technical integration of light rail systems, design of the control and maintenance centre, traction power, groundborne noise, and vibration modelling. T HE South West Rail Link (SWRL) extension to the Sydney Trains suburban network from Glenfield to Leppington officially opened on February 7. The premier of the state of New South Wales Mr Mike Baird said the $A 1.8bn ($US 1.4bn) 11.4km extension had been completed more than a year ahead of schedule and $A 300m under budget. Transport minister Ms Gladys Berejiklian said planning work had already started to extend the line to a proposed second Sydney airport at Badgerys Creek. A half-hourly Leppington Liverpool shuttle service operates daily with a journey time of 16 minutes. IRJ March 2015 IRJMARXX (Evraz):Layout 1 16/02/2015 10:38 Page 1 RELATIONSHIPS & RESOURCES Bring your challenges to EVRAZ. From developing next generation rail to producing high quality wheels in Russia and the US, our global team believes in the power of collaboration and the success it has brought over 130 years. We’re ready to roll up our sleeves and help drive your business forward. EVRAZ is one of the largest and most advanced manufacturers of railway products in the world, specializing in high quality rails, wheels, and tyres, as well as steel components for the assembly of railcars. Please visit us at Middle East Rail 2015 Stand D23 in Za’abeel Halls 1-3 EvrazRailwayProducts.com MarTN:Layout 1 24/02/2015 6:08 PM Page 14 Transit news In brief BVG reveals new Berlin U-Bahn train Bordeaux B Bordeaux added another 6.4km to its light rail network on January 24, when the city’s mayor Mr Alain Juppé inaugurated two extensions in the north and west of the city. The 2.8km three-station northern extension of Line C from Berges du Lac to Parc des Expositions serves the city’s convention centre and the New Bordeaux Stadium. The extension included a new depot at La Jallére, which accommodates up to 26 LRVs. Line A has been extended 3.6km west from Mérignac Centre to Le Hallain Rostand. ERLIN Transport (BVG) unveiled the first of two prototype new-generation trains for the city’s narrow profile U-Bahn lines at Olympia-Stadion station on February 3. The four-car type IK train was assembled at Stadler Pankow’s plant in nearby Velten, Brandenburg, and delivered by road to BVG’s Machandelweg depot at the end of January. The two prototypes will undergo three months of trials before entering passenger service in May. The trains will be evaluated in regular operation over a year and are expected to cover around 120,000km during this phase. If trials are successful, BVG will exercise an option with Stadler for 34 production trains. China approves Jinan metro phase 1 C HINA’s National Development and Reform Commission has approved construction of the Yuan 43.7bn ($US 7bn) first phase of the metro network in Jinan, the capital of Shandong province. Phase 1 comprises three lines totalling 80.6km. The Yuan 12bn Line 1 will be 26.4km long with nine stations and will link western districts of the city. The 35km east-west Line 2 is expected to cost Yuan 19.9bn and will have 14 stations including interchanges with lines 1 and 3. Line 3 will run north-south from Jinan East mainline station to Laohu Cave with 11 stations. The 19km line has a budget of Yuan 11.8bn. With long distances between stops, all three lines will have a maximum speed of 100120km/h and services will be operated by six-car Type B metro trains. Construction is due to begin later this year and all three lines are due to be completed by 2019. Testing begins on Addis Ababa LRT T RIAL operation of the Addis Ababa light rail network was officially launched on February 2 in the presence of Ethiopia’s prime minister Mr Hailemariam Dessalegn. Public services are due to begin in May on the 34km two-line network, which was constructed by China Railway Group. China is financing 60% of the $US 400m project, with the remainder coming from the Ethiopian government. Bratislava The European Commission has approved a ƒ63m grant from the European Union Cohesion Fund for the ƒ78.6m extension of the metre-gauge tram network to Petrzalka. The extension is already under construction and due to be completed later this year. Helsinki Helsinki Regional Transport Authority (HSL) confirmed on February 10 that it will negotiate a five-year transitional contract with Finnish national train operator VR Group for the operation of the city’s suburban network from April 2016. In the longerterm, HSL plans to launch a competitive tender for the operation of these services from 2021. Kochi Delhi Metro Rail Corporation has awarded Alstom two contracts worth more than $US 75m to supply signalling, telecommunications, and electrification equipment for the 25.6km north-south metro line from Aluva to Pettnaline, which is scheduled to open next March. Alstom will design, supply, install, test, and commission CBTC and telecoms including radio, CCTV, passenger information systems, and a secure gigabit transmission network. Mannheim Baden-Württemberg transport authority NVBW, together with transport authorities in 14 southern Rhineland-Palatinate, Bergstrasse, and Saarland have selected DB Regio for a contract to operate RhineNeckar S-Bahn Lot 1 for 17 years from December 2016. The contract covers the operation of around 8 million train-km per year on lines S1, S2, S3, S4 and S33. Milwaukee Milwaukee Common Council approved the construction of a 4km light rail in the city centre on February 10. The $US 124m line is expected to open by mid-2018. Porto Transports Ciutat Comtal (TCC), a joint venture between Barcelona metro operator TMB and Catalonia’s largest privately-owned public transport operator Moventia, has been selected for a 10-year concession to operate and maintain Porto’s light rail and bus networks. TCC was chosen for the contract by the boards of light rail operator Metro do Porto and bus company STCP, which operate under the Portuguese Ministry of Finance. São Paulo Mitsubishi Heavy Industries (MHI) has awarded Nippon Signal, Japan, a contract to supply signalling systems for metro Line 6. Nippon Signal will supply automatic train supervision (ATS), electronic interlockings and its Simplestructure and high Performance ATC by Radio Communication (Sparcs) CBTC technology for the 13.5km driverless line, which will link Brasilândia with São Joaquim on Line 1. Turin At a meeting on February 17 Turin City Council approved the 3.4km four-station western extension of metro Line 1 from Fermi to Cascine Vica. The ƒ340m project will be fully financed by the Italian government through the Unblock Italy programme and is now awaiting approval from the Ministry of Infrastructure and Transport and the Italian Committee for Economic Planning (Cipe). IRJ IRJ March 2015 Mar p15:Layout 1 23/02/2015 5:52 PM Page 15 MULTI TASKER - HIGH CAPACITY CRANE FOR MULTIPLE USES. SWITCH TILTER - FOR MODERN SWITCH AND CROSSING LOGISTICS. TRACKLAYER - THE QUICKEST AND SAFEST WAY TO REPLACE TURNOUTS. WWW.KIROW.DE KIROW IS A MEMBER OF KRANUNION. Rail Transportation Road Transportation Telecommunications AŽD Praha Traditional Czech supplier of modern control and signalling systems Safely to your destination www.azd.cz IRJ March 2015 15 MarFN:Layout 1 25/02/2015 4:04 PM Page 16 Financial news Vossloh’s largest shareholder to bid for company K B Holding, which has a 29.99% holding in Vossloh, plans to offer between É48 and É49 per share for the remaining 70% of the company. This is considerably below Vossloh’s current share price, which suggests that KB Holding may be satisfied with simply increasing its stake in Vossloh. However, under German law, a shareholder with a 30% stake in a company is bound to make a public offer for the remaining shares. KB Holding is controlled by Mr Heinz Hermann Thiele who has been chairman of Vossloh’s supervisory board since 2013. Thiele says he wants to increase and protect his investment in Vossloh, which announced a restructuring in December involving selling off its rolling stock business by 2017 in order to concentrate on track products. Thiele is also a major shareholder, through another of his investment companies, in the German braking and train components company Knorr-Bremse, but he says he intends to maintain Vossloh’s independence. North American Class 1s report strong growth Photo: Stephen C Host T WO of North America’s leading Class 1 railways achieved strong growth in 2014. Union Pacific (UP) net earnings increased by 18% from $US 4.4bn in 2013 to $US 5.2bn last year, while operating income was also up 18% at $US 8.8bn. Canadian National (CN) reported a net profit of $C 3.17bn ($US 2.55bn) in 2014, compared with $C 2.61bn in 2013, and operating income rose by 19% to $C 4.62bn. UP’s freight income was 9% higher in 2014 than 2013 at $US 22.6bn and wagon loadings rose by 7%. Operating revenue was $US 2bn higher at a record $US 24bn, while UP’s operating ratio improved by 2.6 points to 63.5%. UP invested a total of $US 4.1bn in 2014, around $US 500m more than in 2013. CN’s freight volumes for 2014 reached record levels, with wagon loadings up by 8% and tonne-km up by 10%. Its operating ratio improved by 1.5 points to 61.9%. Revenue increased by 15% in 2014 to $C 12.13bn which CN attributed mainly to a record 2013-14 Canadian grain crop, as well as strong energy markets and new intermodal and automotive business. CN plans to increase its capital spend by roughly $C 300m to around $C 2.6bn in 2015. Looking ahead to 2015, UP’s CEO Mr Jack Koraleski is cautiously optimistic: “Overall, the US economy continues to move forward at a moderate pace. Clearly, one of the biggest uncertainties is the outlook for energy markets, which will bring both challenges and opportunities.” JR Kyushu set for stock exchange J APAN’s Ministry of Land, Infrastructure, Transport and Tourism (MILT) announced on January 27 that Kyushu Railway Company (JR Kyushu) will be listed on the Tokyo stock exchange in the 2016 financial year, the fourth company formed from the former Japanese National Railways (JNR) to do so. The government will submit a bill to the House of Representatives in the current legislative session to exempt JR Kyushu from the requirement for the transport minister to approve all appointments to its board. This would also require JR Kyushu to commit to retaining its current 2122km network. JR Kyushu made a loss of Yen 15.6bn ($US 132m) on its railway operations in 2013, but MILT deems the company suitable for flotation because of its property and hotel activities. Indeed, the company expects to generate more than 60% of its total revenue from non-rail activities by next year. JR Kyushu covers the losses from its rail operations through a Yen 3.387bn stabilisation fund established by the government as part of the breakup of JNR in 1987 and it will be allowed to use Yen 220.5bn of this to cover infrastructure charges for use of the Kyushu Shinkansen. JR Kyushu operates a 1984km 1067mm-gauge network, plus a 138km standard-gauge Shinkansen line from Kagoshima to Hakata, and carries around 315 million passengers per year. Abellio wins É1.5bn regional concession in Limburg F OLLOWING a public tender, the Dutch province of Limburg has granted Netherlands Railways subsidiary Abellio a 15-year concession for the province’s regional bus and rail services. The contract begins in December 2016 and has an annual value of É55.5m, or a total of É1.5bn. 16 The contract covers the Nijmegen - Venlo - Roermond line and four other routes in the Sittard, Heerlen and Maastricht area including one service to Aachen, Germany. Other bidders included the incumbent Veolia Transport Nederland, which reportedly submitted an invalid bid, and Arriva Nederland. The tendering procedure was criticised by non-NS bidders, which argued that Abellio, as an NS subsidiary, might have an unfair advantage. Veolia took the case to court but the judge ruled in favour of the provincial government, although the Dutch Consumer and Market Authority (ACM) is now investigating the tender. The new concession will need more electric trains because two lines are being electrified. At least eight multisystem EMUs, authorised for use in Germany, will be required for cross-border services, and the trains will also need to be equipped for future use between Maastricht and Liège, Belgium. IRJ March 2015 MarFN:Layout 1 25/02/2015 4:04 PM Page 17 In brief SNCF revenues up 1.5% in 2014 F RENCH National Railways (SNCF) reported revenues of É27.24bn in 2014, despite the continued difficult economic environment in France, which included a 7-10% increase on domestic passenger travel VAT rates and a 5% rise in track access fees. Net profit for 2014 was É605m compared with a É180m loss in 2013, which was mainly due to a É1.4bn write-off of TGV high-speed trains. Recurring net profit amounted to É419m in 2014, down by É177m compared with 2013, which SNCF attributed primarily to the decline in Ebitda. SNCF stabilised its net financial debt at É7.4bn, while maintaining self-funded investment at É2.2bn. Total investment amounted to É3.3bn, with 60% invested in rolling stock and equipment and 40% invested in maintenance facilities. International business grew by 7%, which SNCF says is the main driver of growth, with 25% of its revenues from outside of France. Revenue at Keolis was up 20% outside France and increased 5.8% outside Europe. “We achieved signigicant growth in 2014, meeting our Ebidta targets and stabilising debt, while continuing to invest on an unprecedented scale” says SNCF president Mr Guillaume Pepy SNCF has set ambitious targets for 2015, including revenue growth of over 3%, with international revenue growth targeted to reach 27%. MTR awards Hong Kong CBTC contract M TR Corporation has awarded a consortium of Thales and Alstom a É330m contract to install communications-based train control (CBTC) on the Hong Kong metro. The consortium, which is led by Thales, will be responsible for replacing MTR’s existing automatic train supervision (ATS), interlocking, and automatic train control (ATC). Thales will supply its SelTrac CBTC system for the project. Alstom will be responsible for project management and will also supply remote trackside equipment controllers. Genesee & Wyoming to acquire Freightliner G ENESEE & Wyoming (G&W) has agreed to acquire a 95% stake in Britain’s Freightliner Group from Arcapita and other shareholders for $US 755m in cash. G&W will assume around £8.5m in net debt and capitalised leases as part of the deal, which is expected to reach financial close during the first quarter of this year. Members of the existing Freightliner management team will retain a 5% stake in the company. Freightliner is Britain’s second-largest railfreight operator and is active in the intermodal, bulk, and infrastructure sectors. The company operates 13 intermodal terminals in Britain, eight of which it owns, and the company also has a fleet of 250 lorries for local pick-up and delivery. Freightliner’s Polish subsidiary operates in Poland and eastern Germany, while the company’s Rotterdambased ERS Railways provides cross-border intermodal services from the key North Sea ports to terminals in Germany, Poland, and Italy. In Australia, Freightliner transports coal and containerised agricultural products for customers in New South Wales and is also licensed to operate in Victoria, Queensland, South Australia, and Western Australia. G&W plans to combine its existing Australian operations in South Australia and the Northern Territory with Freightliner’s, and these operations are expected to generate around 12% of group revenues. Freightliner’s global fleet comprises around 250 standard-gauge locomotives and 5500 wagons, most of which are leased with maintenance being carried out at the company’s own depots. Freightliner generates annual revenues of around $US 785m, with 65% coming from Britain, 25% from mainland Europe, and 10% from Australia. The company employs around 2500 staff worldwide. During its first year of ownership G&W expects Freightliner to generate revenues of $US 785m and Ebitda of $US 93m, including lease costs of $US 69m. Capital expenditure is forecast to be around $US 26m. Australia Downer EDI has secured a 10year contract worth around $A 1bn ($US 782m) to maintain more than 300 locomotives for Pacific National. The deal includes remote monitoring and inspection from a 24-hour fleet control centre. Brazil Evraz, Russia, has won a contract to supply Tiisa Construction with 4000 tonnes of 60E1-compliant headhardened rails for a 30km line to connect a pulp mill to the ALL network. It will also supply 300 tonnes of headhardened 60E2 rails to BR Railparts for use in turnouts. Britain Eversholt Investment Group, a consortium of 3i Infrastructure, Morgan Stanley Infrastructure Partners, and Star Capital Partners, has agreed to sell rolling stock leasing company Eversholt Rail to CK Investments, which is jointly owned by Hong Kong-based Cheung Kong Infrastructure Holdings and Cheung Kong (Holdings). Serco Caledonian Sleepers has awarded a £150m contract to CAF, Spain, for 75 coaches for use on overnight services between London and Scotland from April 2018. China Bombardier and New United Group (NUG) have agreed to set up a signalling and train control joint venture in Changzhou near Shanghai. Each company will have a 50% stake in the joint venture which will be known as Bombardier NUG Signalling Solutions. Germany Rheinbahn has selected Siemens to resignal the 11km four-track Stadtbahn tunnel beneath Düsseldorf. Siemens will install its Trainguard ZUB 222 train protection system for semi-automatic operation and Trainguard Sicas ECC electronic interlocking. Italy AnsaldoBreda has won a É24.6m two-year contract with IRJ March 2015 17 MarFN:Layout 1 25/02/2015 4:04 PM Page 18 Financial news In brief PKP Cargo acquires 49% of Pol-Miedz Trans P KP Cargo announced on February 2 that it had agreed terms with Lublinbased copper and silver miner KGHM Polska Miedz to acquire a 49% stake in its railfreight subsidiary PolMiedz Trans. PKP Cargo says that subject to approval from Poland’s Office of Competition and Consumer Protection it expects to finalise the sale in the second quarter of this year, and while the value of the deal has not been disclosed, the share acquisition is being made in exchange for cash and locomotives. KGHM has been seeking a strategic partner for its railfreight unit as part of a plan to refocus its resources on its core business activities. New Hungarian loco plant planned an optional one-year extension to maintain 78 TSR doubledeck EMUs for Trenord, plus 14 sets which are on order. Mexico Grupo Mexico has proposed selling 15% of its 74% stake in Ferromex. The proposal is under review by the national banking and securities regulator. Union Pacific holds the remaining shares. Netherlands Netherlands Railways (NS) reported a 1% increase in traffic to 17.2 billion passenger-km and a 6% increase in revenue to É4.14bn in 2014. NS made an after-tax profit of É180m compared with a loss of É43m in 2013. However, NS was fined É5.5m for failing to meet four of the 13 key performance indicators in its 2005-2015 core network concession. Poland Photo: Ferenc Németh R OMANIAN rolling stock manufacturer Softronic and LAC Holding, Hungary, have signed an agreement to establish a locomotive assembly plant in Hungary. The deal was signed on January 27 in Budapest, when Softronic also handed over the first locomotive for LAC’s railfreight subsidiary CER Cargo Holding. The 25kV 50Hz/15kV 16.7Hz ac unit is the first dual-voltage Softronic Transmontana to operate in Hungary and only the second to be registered in the country. Softronic and LAC Holding plan to start locomotive production in Hungary by the end of this year, initially assembling Transmontanas using parts supplied by Softronic. However, within a few years the proportion of parts supplied by Hungarian subcontractors is expected to reach 70-80%. LAC Holding also intend to develop a 3kV dc version of the Transmontana locomotive. Traffic and revenue up at Eurotunnel E UROTUNNEL has announced record revenues for 2014, following a 7% growth in consolidated revenues, which reached É1.2bn. Cross-channel railfreight saw the largest growth, with 14% more trains and a 21% increase in tonnage to 1.64 million tonnes in 2014. Eurotunnel attributes this increase to a scheme aimed at incentivising new intermodal railfreight services. Eurotunnel shuttle services saw a 7% increase in revenues to É526.7m. Lorry shuttle traffic increased by 6% to over 18 1.4 million and passenger shuttle traffic increased by 4% to over 2.5 million. Railfreight subsidiary Europorte has reported an 8% increase in revenues to É266.5m, following an increase in new contracts and extensions of existing agreements. Eurostar saw a 3% increase in 2014 passenger traffic compared with 2013, with almost 21 million passengers transported. Traffic should increase further when Eurostar launches its London - Lyon Marseille service this year, and a London - Amsterdam service in 2016. Newag, Poland, has won a É17.5m contract to supply five 3kV dc six-axle E6DCF-DP Dragon locomotives to ING Lease Poland for use by Freightliner PL. Delivery of the 5MW 120km/h units will start in May 2016. The locomotives will have 520kW diesel engines for last-mile operation. Saudi Arabia Saudi Railway Company (SAR) has awarded a British consortium a £120m contract for support on operating the North-South Railway. Serco will provide technical support for future passenger services, Freightliner will assist with freight operations, and Network Rail Consulting will provide infrastructure management services. South Africa CNR Dalian and its South African consortium CNRRSSA have awarded Rolls-Royce a É100m contract to supply 232 MTU type 20V 4000 R63L 3.3MW diesel engines for the 232 six-axle locomotives on order from Transnet. ABB has won a $US 50m contract from Bombardier for transformers and associated traction equipment for 240 Traxx Africa dual-voltage locomotives for Transnet. Spain Adif has placed a É155m contract with a consortium led by CAF Signalling and including FCC and Revenga to equip the new Monforte de Cid - Murcia high-speed line with ERTMS Level 2, electronic interlockings and a traffic control centre. The contract includes a 20-year maintenance agreement. Sweden National passenger operator SJ more than doubled its operating profit in 2014 to SKr 568m ($US 67.9m) compared with SKr 270m in 2013, while net profit rose by 110% to SKr 460m. Passenger traffic increased by 2% overall, but by 13% on the Stockholm Gothenburg and Sundsvall Umeå routes. Skånetrafiken has awarded Alstom a SKr 1.5bn contract to supply 25 additional class X61 Coradia Nordic EMUs to expand its fleet to 99 sets. Skånetrafiken needs the extra trains to accommodate a 5-6% projected growth in traffic. Switzerland Swiss Federal Railways (SBB) has exercised an option worth SFr 120m ($US 128.8m) with Alstom for four ETR 610 Pendolino tilting EMUs. The multi-system trains will be used on Milan - Geneva/Basle and Milan - Zürich services pending the delivery of 29 new EC250 EMUs from Stadler, which will enter service from 2019. United States California High-Speed Rail Authority has invited companies to prequalify by March 23 to bid for a contract to become the authority’s rail delivery partner until 2022. The partner would be involved in programme management, strategic advice, and business planning. Wabtec has acquired Texasbased signalling contractor Railroad Controls for an undisclosed sum. The company specialises in level crossings, interlockings, and Positive Train Control (PTC) equipment. IRJ IRJ March 2015 IRJMARXX (ThermOm):Layout 1 17/02/2015 16:38 Page 1 GURU® SELF-ACTUATED, WATER-SENSING FREEZE PROTECTION VALVES Don’t take a chance when the temperature drops. GURU® self-actuated, water-sensing freeze protection valves empty the water cooling system in your diesel electric locomotive at the set temperature to preserve your investment and keep your equipment safe. • High flow design for rapid draining • Easy installation • No power required to operate • Minimal maintenance • Available in two temperature settings (35°F/2°C and 40°F/4°C ) • Options for standard and larger magnum valve For more information, please contact us at [email protected], or visit us online at www.thermomegatech.com/railroad. www.ThermOmegaTech.com THE WORLD LEADER IN SELF-ACTUATED TEMPERATURE CONTROL SOLUTIONS GURU® VALVE MarNANL:Layout 1 24/02/2015 6:13 PM Page 20 News analysis Dutch concessions: the m At the start of this year new 10-year concessions came into effect for infrastructure management and operation of passenger services on most of the Dutch railway network. Quintus Vosman considers whether lessons have been learned from the previous concession, and how the new agreements will shape the operation of the network over the next decade. O N December 15 last year the Dutch secretary of state for infrastructure Mrs Wilma Mansveld signed both the concession for the infrastructure management of the Dutch railway network, granted to Prorail, and the concession for public passenger train operations on the so-called core network, which was awarded to Netherlands Railways (NS). Both agreements, covering the period 2015-2025, have been shaped by several years of debate and discussion both at a political level and between the government and the concessionaires. Since the start of railway reforms in the early 1990s, railways have become an increasingly important issue in Dutch politics. Major steps were taken to reducing the railways’ dependence on subsidies to create a financially self-supporting transport system. This included giving NS more independence from the government, creating an independent infrastructure manager Prorail, and opening up the network to new entrants. There was a brief spell of competition in the passenger market in the late 1990s, the short-lived Lovers Rail operation in the Amsterdam area being the most notable example, but a shortage of suitable rolling stock, qualified staff, and maintenance staff meant barriers to entry were extremely high. While an open market existed on paper, the reality was anything but. With the disappearance of Lovers Rail the socialist transport minister at the time Mrs Tineke Netelenbos closed the door on open-access passenger operators. Political distrust of private operators, 20 fuelled in part by events across the North Sea in Britain, removed any prospect of competition for NS, which was happy to see the threat subside. A new public transport law was passed which made passenger rail a regulated market. This meant all public transport operators must be licensed by the competent authority - in the case of the main line rail network the Ministry of Infrastructure with selected provinces granting concessions for regional services. This also ensures that there is only one operator per line - when two operators unavoidably meet, special arrangements are necessary. NS was awarded the concession to operate the bulk of the network, and with a few exceptions, none of the services in the core network concession are subsidised by the government. In return for the opportunity to make a reasonable profit on the core network, the ministry specified minimum service levels, the most notable being the requirement for every station to be served by a train at least every 30 minutes. As part of the reform process, NS identified 33 so-called ‘loss making lines,’ perhaps better described as regional passenger services, which were considered to be unprofitable. NS was keen to withdraw from the operation of these lines and the new act made it possible to transfer the legal power and budget for regional passenger train services to regional governments. Regional authorities and politicians became involved in passenger rail, with remarkably positive results. The growth in patronage on these services far exceeded the core network, and the quality and reliability of these services is significantly better. The government has devised a system of regulation based on concessions for the passenger core network and infrastructure management. The first national railway concessions began in 2005 and were awarded directly to Prorail and NS with a term of 10 years. The concessions define performance criteria for both infrastructure management and passenger operations. Annual plans drawn up by the concessionaires and approved by the minister of transport (subsequently the minister for infrastructure) enabled finetuning based on actual developments, including government policy or responses to poor performance. In practice, NS was proposing the key performance indicators (KPIs), which arguably is not an incentive for achieving the best results. Despite this, NS failed to meet its own KPIs on several occasions. During the first concession period there was frequent government dissatisfaction with both Prorail and NS. IRJ March 2015 MarNANL:Layout 1 24/02/2015 6:13 PM Page 21 e ministry asserts control Critics argued that both organisations were so preoccupied with optimising their own performance that little consideration was given to the coherent operation of the overall railway system. A merger between NS and Prorail was suggested and rejected but information management was transferred to NS, to the irritation of regional passenger operators. Major disruption caused by technical failures or bad weather meant the railways were often a challenging issue for the minister and the secretary of state. The Dutch parliament and the public called for stronger leadership, but in a practical sense there was little political intervention could do to improve the situation. The financial incentives and penalties in the concessions were too small to make any real impact on performance, to the extent that paying the maximum penalty might actually be more costeffective than implementing enhancements to boost performance. This meant that there was little for the ministry to enforce. In the run-up to the new concession the Ministry of Infrastructure has been working with rail stakeholders to develop a new vision for the country’s railways, including high-frequency train operations on key corridors and in the Randstad conurbation. This vision, which covers the period up to 2028, has helped to shape performance criteria for the 2015-2025 core network Domestic high-speed services on HSL South are being merged into the new core network concession. Photos: Quintus Vosman IRJ March 2015 concession. During this process it became clear that the Dutch government did not want to introduce competition on the core network and that the new concession would also be awarded directly. It must also be noted that in recent years NS has paid a considerable dividend to its only shareholder - the Dutch state. New concessions According to the Ministry of Infrastructure the 2015-2025 core concession is based on three guiding principles. The first of these is “strong leadership from the concessiongranting authority.” The Ministry will inform NS annually of its priorities and NS will then incorporate them in the yearly plan, working wherever necessary with other railway organisations to meet the government’s objectives. As in the previous concession, the ministry will approve the annual plan and there will be a mid-term review by the minister in 2019. Progress towards and achieving the goals will be checked, and where necessary modifications will be made, including adjustments of KPIs and performance penalties and incentives. In the previous concession hardly any measures could be taken if NS decided to reject or resist the priorities set by the minister. The second principle is “stimulation and obligation for cooperation.” The minister wants rail to be a competitive and attractive option for passengers, and highlights the need to consider the entire ‘door-to-door’ journey experience. This requires NS to co-operate, not only with the infrastructure manager, but also with regional operators and other modes. This has not always been the case in the past. The third principle is “focusing on the management of both NS and Prorail to achieve common goals.” Clearly infrastructure management and passenger operations are interdependent, so track and train will need to work together more effectively. Development and performance are subject to incentives and NS will receive bonuses for good performance. Failure to meet performance targets will be met with fines of up to ƒ6.5m, although against a turnover of around ƒ2bn it is questionable whether this is a serious incentive. Nonetheless, if NS fails to meet its obligations, the ministry has the power to cancel the concession partially or in full. There are also changes to the infrastructure concession. Experience from the first concession has resulted in tougher demands in the new agreement, with the aim of strengthening performance and reliability. For infrastructure management, cooperation with other stakeholders is essential, not only with NS, but also with regional operators and other modes of public transport. With regards to passenger operation, the Minister wants to give Prorail the same targets as NS to encourage closer working. High-speed A key change in the new core network concession is the inclusion of domestic highspeed services on HSL South. This was previously a separate concession which was held by the High-Speed Alliance (HSA), a joint venture between NS and airline KLM. HSA won the contract pledging a ƒ148m annual premium for the operation of domestic high-speed and cross-border services to Brussels. However, problems with the fleet of AnsaldoBreda V250 trains led to the collapse of the Fyra service in January 2013 and HSA needed financial support from the government to protect it from bankruptcy. The European Commission is currently investigating 21 MarNANL:Layout 1 24/02/2015 6:14 PM Page 22 News analysis NS is expected to accommodate growing ridership while raising performance standards. whether this support constitutes illegal state aid. This was a remarkable situation, not least because the concession was awarded following an open tender. It is also remarkable that NS as the parent company did not compensate for HSA’s losses. Integration of the highspeed concession means that domestic Intercity services will run via HSL South from the end of this year. However, as domestic high-speed rolling stock is not available, journey time savings will be limited. New ETCS-equipped locomotives have been delivered, and 30-year-old 160km/h coaching stock is receiving a second refurbishment for operation on HSL South. NS has begun tendering for its IC New Generation project, but these will not be delivered until 2020 at the earliest and will only be capable of 200km/h hardly the most appropriate equipment for a 300km/h railway. The size of the core network is not expected to change during the concession period, although the Zwolle - Kampen and Zwolle - Wierden Enschede lines will become the responsibility of regional public transport authorities and subject to an open tender, which was decided before the core concession even began. A more notable change is the decision to transfer operation of stopping services on two core network lines to regional control. Following an open tender, the province of Limburg has awarded Abellio (a subsidiary of NS) a contract to operate Roermond Maastricht Randwijck and Sittard - Heerlen stopping services for 15 years from December 2016 as part of a larger regional concession, even though other services on these routes remain under NS control. This will be the first experiment with full-scale competition (albeit regulated) on the core network. This is an indication that in the long-term fundamental changes might occur, competition could become more important and that NS might lose the monopoly status it currently enjoys. The design of the next core network concession will start with the mid-term review in 2019 and NS will need to maintain good performance before then if it is to retain its position in the longer-term. A well-functioning concession needs both a good concessionaire and a granting authority with the knowledge and organisational capacity to ensure services meet the required standard. Control and an effective system of incentives and sanctions are essential for keeping the concessionaire sharp. In turn, the concessionaire can provide a basis for further development, innovation and improvements. The second concession period will demonstrate the importance of these qualities. IRJ Mass Transit Interior Components & Insulation Interior engineering Detail engineering FE calculation Documentation Validation Measuring Documentation Cutting Packaging concept Mounting Intirio GmbH 3250 Wieselburg, Austria Phone +43(0)7416/20300-100 e-mail [email protected] www.intirio.com 22 IRJ March 2015 IRJMARXX (Siemens):Layout 1 09/02/2015 10:44 Page 1 MarNAPKP:Layout 1 24/02/2015 10:26 AM Page 24 News analysis PKP IC looks to privatisatio as ridership plunges Despite the recent launch of a new premium express service intended to draw traffic back to rail, these are turbulent times for Poland’s national long-distance passenger operator. Andrew Goltz considers the reasons behind declining traffic and looks at potential solutions to the problem. J UST one month after the high-profile launch of its flagship Express InterCity Premium (EIP) service on December 14 (IRJ January p10), Poland’s long distance passenger operator PKP InterCity (PKP IC) said goodbye to its CEO Mr Marcin Celejewski. Celejewski’s departure from the helm had been on the cards for some time as he had failed in his main task of delivering cheap airline-style demand-related pricing and he had been unable to stem the haemorrhaging of passengers. PKP IC carried 30.7 million passengers in 2013, but only 25.5 million in 2014, a loss of approximately 5.2 million passengers (-17%). Most of the passengers deserting PKP IC 24 were those who used the company’s services for relatively short journeys, and the decline in passenger-km from 7.1 billion in 2013 to 6.2 billion last year was a more modest fall of 7.9%. While PKP IC has yet to publish its 2014 financial results, a quick calculation reveals the magnitude of the disaster. In 2013, PKP IC declared an overall loss of Zlotys 87.2m ($US 23.7m), on a margin of Zlotys 91.3m between sales revenue and operating expenses. Adjusting sales revenue in accordance with the 8% reduction in passengerkm in 2014, and assuming that any savings achieved in operating expenses were cancelled out by increased debt service charges, the gap between sales revenue and operating revenue widens to a huge Zlotys 282.6m. On initial consideration it would seem Celejewski’ s successor, 33-year-old PKP Group privatisation guru Mr Jacek Leonkiewicz, should find his period at PKP IC less of an uphill task than his predecessors - after all, over the last 10 years there have been no less than nine chairmen. In recent years track has been upgraded, speed limits removed, and new or refurbished rolling stock introduced. In step with all these investments, PKP IC is repositioning itself upmarket as a competitor to domestic airlines rather than targeting low-fare long-distance bus services operated by PolskiBus, a new company launched by Stagecoach Group chairman, Mr Brian Souter. So will the strategy work? PKP insiders as well as external rail pundits have their doubts. Many Poles see themselves and their country as still trying to catch up from 60 lost years between the start of the Second World War and the end of communism and Soviet hegemony in Poland. Owning and using a car at every available opportunity is widely seen as part of that catching up process. With the exception of long-distance commuters and bargain hunting holidaymakers, Poles who have a choice prefer travelling by car. PKP IC uses three brands: EIP for Pendolino services, EIC for other high-quality IRJ March 2015 10:26 AM sation es premium-priced services, and TLK for the rest. For PKP IC to market its EIP Pendolino trains as a premium service, the whole journey door-to-door - needs to be seen as a ‘premium’ experience, not just the rail portion. However, the other elements of the journey - taxis, buses and trams - are very much ‘second class’ transport while most stations lack safe, secure, and convenient parking places. Here we find the nub of the issue, as the decision to focus on the higher premium market stems not from careful market analysis, but rather is forced on PKP IC by high track access charges. This is a fundamental problem facing all Polish train operators. The Polish government sees little value in subsidising Poland’s railway network, and encourages infrastructure manager, PKP PLK to take a ‘what the market will bear’ approach when setting charges. IRJ March 2015 Page 25 So what about the remaining long-distance services operated by PKP IC under the TLK brand, originally Tanie Linie Kolejowe (Cheap Railway Lines), but now Twoje Linie Kolejowe (Your Railway Lines)? Much of Poland’s secondary trunk rail network remains in an appalling state, and this means journey times and ticket prices are uncompetitive on routes served by PolskiBus. A negative feedback spiral is in progress - passengers are leaving the railway in droves, services are cut back and more passengers desert the remaining services. So what should Leonkiewicz be doing to reverse the flow of desertions from PKP IC? There are six priority areas which require his urgent attention: Re-focusing the company on the customer: too many people in PKP IC are still focused on the trains. There has been some progress - customerfacing staff have been sent on ‘customer satisfaction’ courses, train managers are more polite, and have even been known to stop departing trains so that last minute stragglers can board. But senior people have yet to realise that true customer focus must start at the very top of an organisation. When things go badly wrong, staff need to be empowered to deal with such problems on the spot, by granting them the authority to revalidate old tickets, or issue new replacement tickets, without having to charge the customer a second time. An enormous amount of acrimony can be avoided and goodwill generated through such a simple step. When things do go wrong, one of the worst things that can happen to a passenger is to be told by the train manager that a brand new ticket must be purchased, and that a refund for the old ticket can only be obtained via a bureaucratic complaints system. Improving internal communications: most of the PKP group’s internal culture is still firmly rooted in ‘command and control’ mode, a legacy of the days when Poland’s railways were an integral part of the Warsaw Pact’s military machine. Senior directors feel more at home attending Powerpoint presentations from consultants than communicating with their employees. Instigating a ‘reverse channel’ so information can flow upwards from staff to their managers, regional directors and main board members should be one of the top priorities. Commissioning a new ticketing system: despite PKP IC’s attempt to introduce lowcost airline style yield management, the fares system is still a shambles. For example, passengers needing to change trains are forced to buy separate tickets for each train (thus losing the through journey discount) when booking online. Improving the customer experience at stations: in the last few years major stations have undergone complete rebuilds or makeovers - a process partially accelerated by the Euro 2012 football championship (even though relatively few football fans actually travelled around Poland by rail). But too many stations lack decent waiting rooms with comfortable seats; passenger information is often incomplete; decent restaurants and bars are conspicuous by their absence. Improving access for passengers with reduced mobility: to give credit where credit is due, major stations around the PKP network are being equipped with escalators and/or lifts. But architects are failing to provide integrated solutions complete routes that can easily be navigated without encountering a flight of stairs. One can, for a time at least, excuse such problems at legacy buildings like Warsaw Central, but for new projects, such as the new passenger facilities at Krakow Glowny, this is really inexcusable. Enthusing staff and passengers with the ideal of safe, ecologically sound, rail transport: Rail travel was once seen as a premium travel mode and in many parts of Europe that notion is returning. PKP IC should be engaging its passengers and staff in a campaign to promote the benefits of safe, ecologically sound, rail transport. Will Lenkiewicz have the courage to tackle PKP InterCity’s internal problems head on, or will he see his main priority as quickly getting the company in better financial shape for privatisation and making deep cuts in lossmaking services? Whatever business strategy he adopts, with parliamentary elections due in November this year, he may, like his predecessors before him, have very little time to make an impact. IRJ PKP IC ridership 2011-2014 40 35 Passengers (million) 24/02/2015 Photo: Keith Fender MarNAPKP:Layout 1 30 25 20 15 10 5 0 2011 2012 2013 2014 25 March GCC:Layout 1 24/02/2015 10:53 AM Page 26 Middle East Delivering the GCC’s The GCC member states are pushing ahead with plans to develop an integrated railway network between Oman and Kuwait. Kevin Smith reports from the GCC Metro and Rail conference in Muscat where the leading lights in the GCC railway industry gathered to discuss progress and the challenges facing this mammoth project T HE Gulf Cooperation Council (GCC) was founded in 1981 as a trade bloc with the mission to improve the cooperation, coordination and integration between each of its six member states: Saudi Arabia, the United Arab Emirates (UAE), Qatar, Oman, Kuwait and Bahrain. Fuelled by its oil and gas riches the region has gone through untold changes in the 34 years since with glitzy skyscrapers in all the leading cities hinting at their newfound wealth and modernity. Despite the individual states’ success at accumulating petroleum riches - the GCC is now the world’s 13th largest economy and fifth largest exporter desire for greater integration has not diminished: a joint power infrastructure project is up and running and a custom union intended to boost trade within the GCC was enacted on January 1 following more than a decade of negotiations. A shared water project is also scheduled for completion by 2020, while there is a proposal to introduce a joint currency, the Khaaleji. Competing with the currency union for ambition is the region’s railway project. Running from Oman to Kuwait, the idea first emerged around 2005, and in 2009 an agreement was signed by each state to 26 develop a 2177km network. However, unlike many other integrated railway projects talked up around the world but struggling to get off the drawing board, the GCC is pressing ahead (see panel p31). With only Saudi Arabia having any pre-existing railway infrastructure, the GCC is in an advantageous position over other cross-border schemes because it is developing a greenfield project. While daunting in scale, the GCC has the opportunity to build infrastructure to unified and established standards avoiding historical gauge differences and variations in signalling systems, as well as the political stumbling blocks which are holding many other projects back. Yet developing a railway from scratch in a region with limited past expertise comes with challenges. This is resulting in delays, and as the years slip by and deadlines are extended, the 2018 opening date appears increasingly unrealistic. Nevertheless the region’s railway CEOs and transport ministers remain bullish that the deadline will be met. Indeed in their presentations at the GCC Rail and Metro conference, which was hosted by Oman’s Ministry of Transport and Communications in Muscat in January, there are no extensions in their overall timeframes for implementation, just reductions in the expected construction period. Etihad Rail’s acting CEO Mr Faris Saif Al Mazrouei told the conference that continuing government support, and their success at implementing phase 1, means that the deadline remains achievable. “The government is behind this and there is the initiative and leadership to get this done otherwise you would not see us here,” he said. “We are working on making this happen and it will happen.” His contemporary at Oman Rail, March GCC:Layout 1 24/02/2015 10:53 AM Page 27 C’s integrated railway Mr Abdulrahman Al-Hatmi, was equally forthright. “We can see the level of commitment to this project,” Al-Hatmi says. “It was suggested that we don’t look to 2018, but to 2020. But we said no, we have to stick to it, because psychologically if we say 2020, it will happen in 2020 or even later. That is why we need to stick to 2018.” Dr Abdul Latif bin Rashid Al-Zayani, secretary general of the GCC, expressed a more pragmatic view. He described the development of the integrated railway as “a dream” for the leaders of the GCC but emphasised the importance of getting the project right. “It is better to be late than to rush,” he said. With work underway to establish cooperative agreements with the Intergovernmental Organisation for Carriage by Rail (Otif), the European Railway Industry Association (Unife) and European Railway Agency (ERA), he revealed that the GCC is conducting a study to establish a regional railway regulator. “Without a proper GCC regulatory authority there is no integrated railway,” he said. This view was supported by Ms Maryam Ahmed Jumaan, undersecretary for land transport at Bahrain’s Ministry of Transport. “The GCC secretary general is acting as the project manager for the GCC rail alliance,” Jumaan said. “This covers technical and operational requirements. That is happening. However, the key for us and for all the member states is that because all of the projects are taking place at the same time, we are all competing for the same resources. Having a strategy to manage that is critical to ensure that costs are kept under control and all of the targets are met.” 27 March GCC:Layout 1 24/02/2015 10:54 AM Page 28 Middle East As the smallest GCC state, Bahrain’s concerns at getting a fair deal for its rail and causeway projects are understandable. A centralised procurement strategy and labour market could reduce costs and ease pressure on resources. For example there is huge demand for TBMs with Qatar alone planning to purchase 18 over the next two to three years, while Riyadh will require seven to eight for its metro projects. A regional authority would also have the foresight to tackle operational challenges for a railway crossing a vast territory and six states. This includes the issue highlighted by one delegate of the difference in requirements for wagons operating on Oman’s network, which will feature severe gradients due to its topography, and the rest of the GCC, which is relatively flat. However, the GCC railway project accounts for only 2177km of more than 40,000km of both main line and urban railway infrastructure planned across the GCC, and only $US 15bn of the expected $US 200bn investment. As a result there is a general reluctance from the newly formed railways to cede greater power to a centralised body at this stage, which they fear could jeopardise their national programmes. Responding to Al-Zayani’s comments, Dr Ahmed Bin Mohammed Bin Salem Al-Futaisi, Oman’s minister of transport, said that due to the size of the project and the differences between the respective states, which have limited railway experience, it makes sense for each country to lead its own efforts. “For us as the programme “Without a proper GCC regulatory authority there is no integrated railway.” Dr Abdul Latif bin Rashid Al-Zayani manager it is important to make sure that there is an environment within Oman in which the project can progress satisfactorily,” he said. “I think this is a much better model than the centralised model.” Arguments that the GCC should look to a regulator based on the European Railway Agency (ERA) model were also largely dismissed. Mr Philippe Citroën, director general of the European Railway Industry Association (Unife), said that given the time it took to form ERA, developing a centralised strategic body should be an immediate priority for the GCC to avoid the mistakes made in Europe. Brazil’s recent agreement to share best practice with ERA already shows its international reach, while Citroën “To create an authority you have to give up authority from the country, which we do not have yet. We are still building.” Hamad Ibrahim Al Bishri 28 pointed to the example of the Californian High Speed Rail Authority which is adopting some of the European Technical Specifications for Interoperability (TSIs) for the Los Angeles - San Francisco project. “The tools are there, the documents are there, we have the proper framework,” Citroën said. “We are developing a single system for Europe through the nine corridors, and by looking to do something similar here, we think the relationship between the GCC and Europe will be strengthened.” However, Mr Hamad Ibrahim Al Bishri, deputy CEO of Qatar Rail, said that he does not feel the GCC’s railways are “mature enough” to establish such a body, which is not yet a priority for the GCC. He added that the existing GCC railway steering committee, which meets four times a year to discuss interoperability issues, is sufficient for now. “To create an authority you have to give up authority from the country, which we do not have yet,” Al Bishri says. “We are still building, and this is the problem. The most essential thing is to agree on the minimum requirements and the minimum standards - safety, gauge, signalling, platform height, all of these things, which we have done. “I think that when all of us are in operation and all of us are mature enough we can start to establish a regional body and a GCC authority to take care of this. But in doing so we shouldn’t create another layer. We already have a rail operator in each country. We don’t want a regulator of a regulator. We need someone to organise more than we do already.” While the national railways are IRJ March 2015 IRJMARXX (Pandrol):Layout 1 09/02/2015 16:07 Page 1 PANDROL TRACK SYSTEMS ARE HERE RESILIENT RAIL FASTENINGS FROM THE WORLD’S LEADING TRACK SYSTEMS SUPPLIER Pandrol’s innovative rail fastenings are built to last. From the heat of the Saudi Arabia desert to a frozen Scandinavian forest, they work efficiently with any climate, gradient or geology. We have been designing durable products to meet our customers’ needs since 1937. Through continued innovation, efficiency and a commitment to quality, we are improving track standards and supporting rail projects across the globe. Following the success of our work on the Dubai Metro and Saudi Arabia North-South line, we have invested in a dedicated Middle East office in UAE. We are now even better placed to meet local demand for our products. For more information about Pandrol’s wide range of rail fastenings WEB www.pandrol.com Al Sila Tower1, Al Maryah Island, 24th Floor PO Box 128666, Abu Dhabi, UAE TEL +971 (0)2 694 8525 March GCC:Layout 1 24/02/2015 11:30 AM Page 30 Middle East Dr Rumaih Al-Rumaih says privatising operations will provide the GCC’s railways with the best opportunity to make a profit. focusing largely on their own internal affairs at present, there are some signs of GCC integration in shared training proposals. Delegates at the conference agreed to prepare a detailed study to create a development fund to promote sustainability in the GCC railway sector. Funded by the GCC member states, this will look at establishing training programmes and a GCC railway academy, as well as support local research and technology initiatives, and study and establish programmes to localise supporting industries and knowledge and experience. Saudi Railway Company (SAR) CEO Dr Rumaih Al-Rumaih also expressed his willingness to share Saudi Arabia’s railway training academy, and highlighted its existing cooperative arrangements with Etihad Rail. “Sharing our experience and expertise is very important and we would welcome our partners from the GCC,” Al-Rumaih said. Private partners While an ERA for the GCC seems a little way off at this stage, one area where the European model is finding credence is the institutional split between infrastructure ownership and operations. Al-Rumaih said he favours a model of infrastructure owned by the government and operations run by the private sector which will optimise opportunities to run a profitable service. “It must be privatised,” Al-Rumaih said. “This is definitely something that 30 we need to work on to make sure that there is healthy competition.” In addition to operations there is an emphasis across the GCC on attracting private firms, and small and mediumsized enterprises (SMEs) in particular, to the railway projects to boost domestic industry. Oman is embracing this notion by including an in-country value (ICV) clause to require 10% of the value of contracts to go to local companies. It has outlined 265 categories in which the private sector, including domestic companies, can participate. The result is that all of the prequalified bidders for its inaugural civil works contract have established partnerships with local contractors. Qatar Rail has similarly awarded 69% of its subcontractor contracts for the Doha metro project to Qatar-based companies. Saudi Arabia is also emphasising localisation in its projects and is encouraging the establishment of domestic manufacturing facilities. For example, Voestalpine recently opened a turnout production plant in Riyadh, in Dammam Freight Car America is supervising the production of 250 cement wagons, and Vossloh and its Saudi partner Masar are building a turnout plant, while Timken and Plasser & Theurer are expected to develop their own Saudi-based facilities. However, Al-Rumaih cautioned against including local SMEs at the expense of the project. “It is a challenge to keep SMEs involved in everything,” he said. “It is true that local contractors are part of the consortium, it is a must. But the SMEs must add value. If they are only start ups, they offer no value to the project itself. The SMEs should focus on the innovations they can bring because they are there as subcontractors.” Interest in attracting private finance to support future projects is also growing. While the GCC’s current railway undertakings are predominantly government-funded, many upcoming projects, particularly urban transit schemes are looking at alternative means of funding including private finance, bond issues and public-private partnerships (PPPs). Mr Mario Salameh, managing director of project finance for Middle East North Africa at HSBC, told the conference that there is little desire for a bank to support a 100km freight railway through the desert. However, he does see long-term potential in infrastructure investments in the Middle East, including railways, through project finance or on a corporate basis. “The bank’s role is to finance projects that are strategic and important for the countries, their economies and people,” Salameh said. “I look at the rail industry, especially from a passenger model in the region, and there is a huge and important business rationale so naturally the banking community is interested in becoming involved.” Private investments may become more common in the GCC if the current low price of oil, which is hovering around $US 50 a barrel compared with around $US 100 a year ago, persists. However, the notion of this current trend affecting railway projects in the long-term was strongly dismissed during the conference. “I think we need to look back at the history of the GCC states,” said Dr Abulla Bilhaif Al-Nuaimi, the UAE’s minister for public works and chairman of the Federal Authority for Land and Maritime Transport. “This is not the first time we have faced such a challenge and we have the capacity, the ability and desire to face this challenge. The existing projects will continue.” Indeed rail is considered a vehicle to delivering greater diversity in the GCC economy by enabling states to tap into their vast mineral resources. For example, Oman’s network is designed to connect with existing and prospective mining sites while Etihad Rail’s inaugural project will establish the UAE as the world’s largest exporter of granulated sulphur. In addition UAE IRJ March 2015 March GCC:Layout 1 24/02/2015 11:30 AM deputy prime minister Sheikh Saif bin Zayed’s recent remarks that oil will account for only 5% of the UAE’s GDP by 2021 compared with 30% at present, Page 31 and 90% in the 1970s, reflects its economic diversification efforts. The integrated railway project may not open in 2018 as is widely hoped, but it will open. And when it does, it will serve to boost trade within the GCC, and from this global economic powerhouse to the rest of the world. IRJ GCC network takes shape S AUDI Arabia is responsible for two projects and 633km of the total network, including the Ras Al Khair to Jubail section which is currently under construction. The plan is to extend this line north to Al Khafji and Kuwait, and south to Damman (IRJ June 2014 p18.). However, as Saudi Railways Organisation (SRO) president HE Mohammed Khalid Al Suwaiket indicated to IRJ in May 2014 (p18), delays with the Kuwaiti segment mean the southern section is the priority. From SRO’s line at Hofuf, the line will run to Salwa and Batha to link with the UAE’s 628km section which is the second phase of its network plan. The line runs from the Saudi border via Habshan to Al Ain to Oman’s railhead at Buraimi. Tenders for the project were issued as long ago as 2012 but Al Mazrouei says the UAE government is close to granting approval to proceed. Oman is also expected to award civil works contracts for its initial 207km phase by the end of the year (p32). Qatar, while currently focusing on metro and light rail projects in Doha and Lusail ahead of the football World Cup in 2022, is also committed to its long-distance agenda. Preliminary design of the 510km network is complete and preparation for procurement is underway. The network consists of a mixed passenger and freight line from the Saudi Arabia border to Doha, and from Doha to Dukhan and Al Shamal, a dedicated freight line from Port Mesaieed to Ras Laffan and a high-speed line via a new causeway to Bahrain. Amman ISRAEL Al Haditha Al Jalamid JORDAN Ma’an EGYPT Following delays in 2014, there was a fresh call last month to prequalify for the project’s phase 1 civil works tender, which includes construction of 143km of line, including 26 bridges, and three freight terminals and an intermodal hub. The tender is expected to be called by the middle of the year and awarded in the second quarter of 2016. Work is due to commence the following quarter and conclude in 2018. A little further behind is Kuwait which is planning a 574km network to link Al Khafji, Saudi Arabia, with Al Nuwaiseeb, Shuwaikh and Al Shoiaba ports in Kuwait City and the future Mubarak Al Kabeer port on Bubiyan island, terminating at Al Abdali, close to the border with Iraq. Kuwait’s Municipal Council approved construction on January 22 and the Ministry of Communications is now coordinating plans with other government agencies and ministries to finalise the alignment. Prequalification of consultants for design work is currently underway and the ministry says it hopes to begin construction next year. In Bahrain studies of the dedicated causeway to Saudi Arabia by Canadian consultancy SNC Lavalin are nearing completion with the results set to be made public in March. Two routes are proposed for the 87km link which will include 28km of approach tracks, a 26km causeway and 10km bridge. Construction is expected to take five to six years to complete with a provisional opening date of 2022, although Jumaan stated that 2018 “remains the target.” Al Basayta Junction TBS Al Basayta Halit Ammar Phosphate Junction IRAQ Bandar-e-Emam Khomeyni Basra Al Jawf Kuwait IRAN Existing lines Lines under construction Planned lines SAR Saudi Railway Company SRO Saudi Railways Organisation ER Etihad Rail Aqaba TB Tabuk Duba Sfe!Tfb Yanbu KAEC Airport Jeddah SUDAN TSP Ibsbn !IT!mjofbjo S Al Khafji Hail Bauxite Ras Al Khair Junction Opsui.Tpvui!Sbjmxbz Bandar-e-Abbas Uif!Hvmg TBS Jubail Al Zabirah Mine Dammam Al Zabirah Junction f Manama, Bahrain Ras Al Khaimah !mjo TB e QATAR Dubai ff Buraydah S q t Fujairah Hofuf i. Doha Ijh TSP Abu Dhabi Al Ain Sohar Salwa Ruwais Riyadh Muscat TSP Medina Ibri f Batha Al Kharj h Haradh UAE FS csje Mboe Sinaw Ibra Shah SAUDI ARABIA Al Jadid Junction N Taif Mecca OMAN 0 km 300 Haimo Port Sudan Khamis Mushayt Najran ERITREA IRJ March 2015 Jazan Al Duqm Amal Joejbo!Pdfbo Mazyounah YEMEN Salalah IRJ 31 March Oman:Layout 1 24/02/2015 10:18 AM Page 32 Middle East 2015: a key year f Oman Rail is set to make huge strides on its inaugural railway project in 2015 as its first civil works contracts are awarded and construction gets underway. Kevin Smith reports from Muscat on progress so far. I N a nondescript office building a short hop from Muscat’s iconic Opera House, officials at Oman Rail are busy working to get the country’s inaugural railway project up and running. Oman Rail, which was founded in June 2014, says that its plans for a 2135km railway network will transform the country, and IRJ’s visit to Muscat takes place just a few days before technical bids for the first phase civil works contract are submitted. Contracts are expected to be awarded by the middle of the year, and while extensive deliberation and analysis is set to take place over the next few months, this is just the beginning. Rows of empty desks ready for the next batch of employees 32 hint at the rapid expansion that will take place here as the project takes shape, with operations expected to begin by the end of 2018. Like the other start-up railways in the Middle East, expatriate railway professionals with decades of experience on some of the world’s most prestigious undertakings are helping to shape the project in Oman. Mr Michael Darby, Oman Rail’s chief operating officer, is one such railwayman who has worked extensively in North America and Australia. He describes his job and building railways as “something he likes to do.” However, he is clear on where he sees his, and Oman Rail’s, long-term future. “The idea is that the guy who follows me will be Omani,” Darby says. “I’m not going to be here forever, the railway is.” Indeed “Omanisation” is a key focus for the project. Already 40 graduate Omani engineers from various fields including civil, mechanical and electrical engineering have been recruited from 1600 applicants who applied for the positions. They are all on a four-year programme, which involves training in a range of areas essential to a railway’s development including track and architectural design, communications systems, and station, tunnel and bridge construction. “In September we took them all to InnoTrans in Berlin and this was a great experience for them to see the railway industry up close,” Darby says. Omanisation is not limited to skills and recruitment. Oman has ambitions to establish its own domestic railway industry, March Oman:Layout 1 24/02/2015 10:18 AM Page 33 ar for Oman Rail which encourages the growth of domestic-based small and medium enterprises (SMEs) that “doesn’t reinvent the wheel” but complements Oman’s existing strengths. As a result 10% of the value of each contract awarded for the project must go to Omani companies under an in-country value (ICV) development initiative. Work is already underway to register domestic companies so they can integrate into the supply chain and according to Oman Rail’s CEO Mr Abdulrahman Al-Hatmi the railway will facilitate the diversification of the Omani economy away from the traditional oil and gas sectors. The railway is also set to enhance the country’s logistical flexibility. “We are going to change the life of almost anyone who has anything to do with Oman,” Al-Hatmi says. “We will make everything you buy and sell in the supermarket cheaper. In terms of natural resources, we will even make building a house cheaper. This is why we are reorganising and revolutionising the logistical supply chain in Oman.” Due to its advantageous geographical position at the southeast corner of the Arabian Peninsula, Oman is marketing itself as the gateway to the Gulf Cooperation Council (GCC) region. It is located on two major international shipping routes which are within two weeks of some of the world’s major ports, and has direct trade routes to the rest of the GCC, India and Africa. Critically Oman has three deepwater ports - Salalah, Al Duqm, and Sohar - and the railway is set to play a major role in their continuing development. “The network is designed as a logistics centre by connecting Oman’s ports with the rest of the GCC as well as our own mining and commercial hubs,” Al-Hatmi says. First phase The 207km first phase of the project will link Buraimi on the UAE border with Sohar, and with construction due to be completed by the end of 2018, it will fulfil Oman’s obligation to link with the GCC network. The doubletrack, standard-gauge line will mimic the rest of the GCC’s network by adopting 32.4km axleloads and a loading gauge sufficient to accommodate double-stack container trains. The line will utilise ERTMS Level 2, and while it will initially only accommodate diesel traction, it will be built with a view to future electrification. Technical bids for the civil works contract were submitted to Oman Rail on January 18, with 18 bidders prequalified, although not all were expected to submit a final technical bid. Financial bids were due on March 1 and Oman Rail expects to announce a winner “by the middle of the year.” The winning bidder will deliver a substantial package of works encompassing rail design, engineering, supply, construction, installation and commissioning. However, cost is not the determining factor in their bids. “We have a device in tenders to give credit to the highest proposals on SMEs, with the bidders that do so having a better chance of getting the contract,” Al-Hatmi says. “This will provide us with proposals to develop the industry in Oman, or improve the level of Omani manufacturers which already have certain capabilities, for example in producing signalling and telecoms systems. These guarantees will ensure our domestic programme is implemented.” In addition to civil works, bidding is underway for the systems contract. Five consortia led by Alstom, Ansaldo STS, Bombardier, Siemens and Thales were selected as prequalified bidders in 2014, and the winner is expected to deliver ETCS Level 2 and associated systems for train detection, switch control, broken rail detection, level crossings and hot box detection along with centralised traffic control and an operations control centre. The contract is expected to be awarded by the end of the year and also includes 33 March Oman:Layout 1 24/02/2015 10:18 AM Page 34 Middle East a telecoms element. This encompasses delivery of a related telecoms and core communications network as well as passenger information systems. The consortium, which overcame competition from IRJ Parsons International and Uif!Hvmg the lowest-priced bid for the N Abu Dhabi contract from a group led by Sohar Buraimi Dohwa Engineering, Korea, Ruwais will now proceed to review Tarif Muscat Hafeet the contract process, extend Ibri UAE Major transformation contract management, and Nizwa Shah Developing the first phase provide project management Ibra of the railway network will services for the Sohar prove a further boost to the Buraimi section. The port of Sohar, which is going consortium will also carry through a major out construction supervision OMAN transformation. It is now one and be responsible for of the world’s largest port testing and commissioning. SAUDI ARABIA and freezone developments It will also oversee the Uif!Joejbo thanks to a $US 15bn procurement of rolling stock Haima ! !Pdfbo investment over the last and coordinate with the Al Duqm decade. The relocation and government to select an expansion of Oman operator for the first phase International Terminal and of the network. This the transfer of all of Muscat’s contract, which includes Amal commercial port activities to maintenance, will be Marmu Mazyounah Sohar in August 2014 has awarded in the first half of Oman Rail Phase 1 increased capacity to 1.5 the year. Thumrait Oman Rail Phase 2 million TEU per year. In addition, the YEMEN Oman Rail planned As a result the port is consortium will review the Etihad Rail open Salalah Etihad Rail planned expected to handle 300 complete network design, vessels in 2015. And with which Italian State Railways construct a large shunting yard and further multi-billion dollar investments (FS) subsidiary Italferr is currently logistics facility to handle future in agricultural storage, a sugar refinery, carrying out under a $US 37m design railfreight shipments. and petrochemical facilities as well as consultancy contract awarded in Discussions on the structure for this an expansion of its freight terminal now August 2013. Work, which began in are continuing with the railway’s underway, logistical activities are set to January 2014, involves detailed project management consultant set to continue to increase. Indeed the port’s alignment and infrastructure design play a critical role in the design of the TEU capacity is expected to rise to 9 and developing specifications for facility. Bids for this contract were million in the long-term. rolling stock and other systems. Italferr received in March 2014, and following This will be further underpinned by a says it is on course for completion by months of delays, the $US 149m land reclamation project which will January 2016. contract was finally awarded to the commence soon, while the port The civil works contractor will face a Spanish-based Tecnicas Reunidas authority is preparing for the addition number of challenges during the consortium on February 11. of the railway link by proposing to construction phase, specifically relating Oman DOOR SYSTEMS - GANGWAYS & ARTICUL ATIONS - INTERIORS #""" "! " www.ultimate-eur.com 34 IRJ March 2015 IRJMARXX (Loram):Layout 1 23/02/2015 17:02 Page 1 Fewer passes. Greater speeds. Unmatched precision. Finish more kilometers of track per maintenance window. LORAM precision rail grinding solutions are the industry’s most productive. Superior technology with higher stone counts deliver optimal rail profile accuracy in one pass, at greater operational speeds. A LORAM grind improves stability, fuel economy and control over rail surface defects, while automated solutions for shoulder ballast cleaning, drainage maintenance and friction management systems increase rolling stock efficiency and extend rail asset life. Let us show you the way. THE GLOBAL LEADER IN MAINTENANCE OF WAY SERVICES AND EQUIPMENT LORAM.COM SPEED PERFORMANCE RELIABILITY © 2015 Loram, Inc. March Oman:Layout 1 24/02/2015 10:51 AM VERTICAL VERTICAL TAMPER TAMPER 62.05L 62.05L MOVES MOVES BALLAST BALLAST Page 36 Middle East Light weight meets intelligent performance Light weight meets intelligent performance “We have a device in tenders to give credit to the highest proposals on SMEs, with the bidders that do so having a better chance of getting the contract.” Abdulrahman Al-Hatmi www.robel.tv More on the product: www.robel.tv www.robel.info/irj315 More on the product: www.robel.info/irj315 to topography which differs significantly from other GCC countries. For example the first phase of the project will require construction of 5km of tunnel and 35 bridges and will feature several steep gradients. Overall the entire network will require 35km of tunnels, 132km of bridges and 245 overbridges or underpasses. Suppliers are also anticipated to provide 12,000km of rail, 23 million m3³of ballast and sub-ballast, 10 million concrete sleepers, and 41 million fasteners along with 8000 wagons and 300 locomotives. While the civil construction bids for phase 1 are currently undergoing close assessment, attention is already shifting to phase 2, which encompasses a 240km link from Hafeet via Ibri to a new economic zone in the Al Dhahirah Governorate economic zone, in the northwest of the Sultanate. The second phase will be delivered in two stages; stage one encompasses the 114km section from a junction with phase one at Hafeet to Ibri, and stage two is a 126km link from Ibri to the new economic zone. In future phases beyond Al Dhahirah the alignment will traverse the vast desert expanses of central Oman via Ghabah to Haima, with a branch veering south towards the port at Al Duqm, and eventually reaching the Yemeni border at Mazyounah with another branch to the port at Salalah. In the long-term a south - north line from Amal via Al Duqm to Muscat and Sohar is envisaged to complete the network. Depending on funding, contracts for subsequent phases could be launched in very quick succession. Indeed Al-Hatmi says he expects that two further tenders for construction of 500km of railway will be issued in 2015. Work will also start on building Oman Rail’s own centre of railway engineering excellence this year, which further underlines its commitment to developing in-house railway expertise. Bonanza Oman Rail clearly has a lot on its plate in the next few months and it has not been helped by the uncertainty in global markets following the recent fall in oil prices. This resulted in an extension to accepting bids for the phase one civil works contract as costs were revised, placing greater pressure on the project. Despite the obvious challenges, the rail project offers a potential bonanza for suppliers around the world. The implementation deadlines might be strict, but this is not putting all the big companies off, which is great news for their prospective domestic private partners and Oman’s future development. “The project has recorded substantial progress over the past 18 months, but we’re just getting started.” Al-Hatmi says. IRJ IRJ March 2015 IRJMARXX (Pouget):Layout 1 04/02/2015 13:34 Page 1 POUGET pougetrail.com For your Infrastructure and Maintenance Works of Tunnels. Adjustable scaffolding This Scaffolding can be carried on Track (for Railways and Metros) and it includes a Device of Automatic «Dead-Man’s» Brakes working on 2 Wheels simultaneously. Safety Rail Tongs with Rollers for Lateral Extensions Adjustable Floors - on Width : from 1.9 to 6 m. - on Height : from 2.5 to 5 m. 6-8, allée du Val du Moulin - B.P. 69, 93240 STAINS - FRANCE - Tel. : 33. (0) 1. 48 26 62 12 - Fax : 33. (0) 1.48.22.37.15 E-mail : [email protected] - www.pougetrail.com Our Machines have evolved ... Our professionalism remains. All in aluminium, rolling on Track. MarLyon:Layout 1 24/02/2015 4:02 PM Page 38 Urban rail Rail at the heart of Lyon’s At the end of 2014 Lyon public transport authority Sytral revealed details of its €1bn 2015-2020 investment plan, which aims to significantly increase system capacity over the next six years. Keith Barrow looks at how the city is seeking to build on the success of its existing light rail and metro networks. W ITH a population of 485,000, Lyon is the third-largest city in France and one that has invested consistently in recent years in the development of its urban rail network. Since the opening of the first two lines in 2001, the light rail network has expanded to 66km, and the city operates three metro lines totalling 32km. Between 2008 and 2014 Lyon’s public transport authority invested around ƒ1bn in the bus, trolleybus, light rail 38 and metro networks and the authority’s 2015-2020 capital programme, which was unveiled in December, allocates a further ƒ1bn for network expansion, increasing capacity, and service enhancements. “It is essential that we continue to develop the network and support the local economy,” says Sytral president Mr Bernard Rivalta. “We also need to increase network capacity as ridership is growing. To avoid becoming victims of our own success, we must invest in new equipment - mostly metro trains and trams - to accommodate more passengers and maintain a quality offering.” Sytral will need to achieve this in challenging economic circumstances. High interest rates, high unemployment, reduced consumer purchasing power and stagnating tax revenues combine to make the environment for investment a difficult one. However, Sytral says it expects to complete all of the projects IRJ March 2015 MarLyon:Layout 1 24/02/2015 Page 39 b t l i u s e n a p r t n t rin on’s €1b 4:03 PM Photo: Sytral listed in its investment programme without increasing its debt beyond the current ƒ1.1bn. Public consultation took place in January and February on plans for the 2.5km underground extension of metro Line B from Oullins mainline station in the district of La Saulaie to Lyon South Hospital, with an intermediate station serving Oullins town centre. The main objective of the project is to improve transport links to the central part of IRJ March 2015 Oullins and the university hospital in Saint Genis Laval, which has more than 4000 staff, 1000 researchers, and 4000 students. Civil works are scheduled to start in early-2019 and the ƒ394m extension will open in mid-2023. Light rail line T1 will be extended east from its southern terminus at Debourg to Lyon East Hospital by 2019 at a cost of ƒ114m. Construction of the 6.9km 14-station extension will be divided into two phases, starting with the 4.7km nine-station section between Debourg and an interchange with metro Line D at Mermoz. The journey time between Debourg and Lyon East Hospital will be 23 minutes and the extension is expected to carry 24,000 passengers per day when it is fully operational. The extension will enable passengers from the south and east of the city to reach western districts without travelling through the city centre. 39 MarLyon:Layout 1 24/02/2015 4:03 PM Page 40 Urban rail Lyon Cuire Sa ôn e Depot IUT-Feyssine T1 ne La Doua Gaston Berger C Charpennes Hôtel de Ville T1 Bellecour Part-Dieu Guillotière Saxe Gambetta eA St Jean Perrache L in Jean Macé T1 e-Express U6 up!Fvsfyqp Bron East Hospital T2/T5 Mermoz T1 T4 Gerland up! Bel-Air Nfz{jfv Grange Blanche Jet d'Eau Debourg L Bonnevay Depot La Soie Villeurbanne eD Confluences Museum Metro lines Open Planned Funiculars Open LRT lines Open Planned SNCF lines Existing T3/Rhôn B L in St Just Line Alai Line A Brotteaux Fourvière N e Hénon Li Croix Rousse Gorge de Loup ôn Line D Vaise Rh T2 Parilly Oullins up!Mzpo!Tpvui! Iptqjubm to St Priest Bel-Air Vénissieux U5 Preliminary studies were completed last November and a public inquiry will be launched early next year with the aim of starting construction in early 2017. The 2015-2020 investment programme includes ƒ24m towards a ƒ66m project to connect the new stadium at Décines to Line T3 and the Rhône-Express airport line. This project is due to be completed at the end of this year. Sytral has allocated ƒ6.7m for the rollout of Wi-Fi or 4G to all metro stations, and studies into further expansion, including an extension of Line T1 from Lyon East Hospital to La Doua and a four-station branch off metro Line D to an interchange with mainline services at Alai west of the city. This project is being developed in conjunction with the so-called “ring of sciences,” a planned 15km toll highway around the western periphery of Lyon linking the city’s scientific industries. The metro line would include a parkand-ride station near the proposed road. up!Gfz{jo!Iptqjubm IRJ capacity to the network. As part of its Future Metro project, Sytral is automating Line B and plans to introduce a new fleet of 19 two-car MPL 16 driverless trains by 2020. This will enable the transfer of Line B’s current fleet of 14 MPL 75 trains to Line C, supplementing the existing fleet of 18 MPL 75s on this line. A further eight MPL 16s will be delivered in time for the opening of the Lyon South Hospital extension in 2023. The introduction of unattended train operation (UTO) on Line B will increase capacity from 7700 passengers per hour per direction to 10,100 by 2019 and 13,100 by 2024. Last year Sytral awarded CAF a ƒ23m contract to carry out heavy overhauls on the fleet of 36 two-car MPL 85 trains used on Line D. The first train was transferred to the CAF France plant at Bagnères-de-Bigorre at the end of last year and the programme is due to be completed by mid-2018. Like the metro network, light rail lines have witnessed surging patronage as the system has extended its reach into more areas of the city. Ridership increased by 40% between 2009 and 2013, and additional capacity will be required by the end of the decade. Sytral plans to order 17 43m-long low-floor LRVs, which will be delivered in 2020 for use on Line T4. The ƒ60m project will include the lengthening of platforms on Line 4 and alterations to the depot at Mayzieu to accommodate longer vehicles. The 32m-long Alstom Citadis vehicles currently used on Line T4 will be transferred to lines T1 and T2 to increase capacity on these routes. In addition, Sytral has allocated ƒ29m for rolling stock refurbishment, ƒ21m for improvements to metro and light rail operating systems, ƒ71m for buildings and infrastructure, and ƒ34m for fare collection, passenger information and CCTV systems. Despite the pressure on public finances, Sytral’s investment programme demonstrates that Lyon is still determined to continue with the tried-and-tested formula of incremental expansion that has transformed the city’s public transport network in recent years. IRJ Rolling stock Ridership on the metro rose by an average of 4.6% per year between 2001 and 2009 and increased 10.3% between 2009 and 2014. Sytral forecasts further growth of 12% on Line A, 30% on Line B, and 16% on Line D. Sytral plans to invest ƒ365m in metro equipment by 2020 as it seeks to add 40 Under Sytral’s five-year plan metro Line B will be extended south from Oullins to Lyon South Hospital. Photo: Sytral IRJ March 2015 Mar p37:Layout 1 23/02/2015 5:49 PM Page 41 LOCOMOTIVE TRAVERSER RAIL DEPOT LIFTING AND HANDLING EQUIPMENT Visit us at Railcar Lifting Jacks Bogie/Equipment Drops Traversers Turntables Bogie Test Machines Under Car Equipment Handling Rail Depot Workshop Equipment [email protected] Middle East Rail 2015 on the Arabian Railway Company stand C35 RAILCAR LIFTING JACKS www.mechan.co.uk +44 (0)114 257 0563 Zertifiziert nach DIN ISO 9001 und IRIS Primary and secondary suspension systems for rail vehicles Rubber–to–metal bonded suspension elements for noise and vibration reduction Liechtersmatten 5 · 77815 Bühl · Germany · Tel. +49 72 23 804-0 · www.gmt-gmbh.de GERMANY IRJ March 2015 · IRELAND · SWITZERLAND · ENGLAND · MAL AYSIA · USA · CHINA · INDIA · FRANCE 41 IRJMARXX (SRS):Layout 1 04/02/2015 15:21 Page 1 NO DOUBLE HANDLING WITH SRS INTERNATIONAL HIRE & SALES Load all materials and equipment at the depot. Travel by road to the work site. On track and complete the task. AFE ELIABLE UCCESSFUL FOR ROAD RAIL AT ITS BEST CALL: 0870 050 9242 email: [email protected] or visit our website www.srsrailuk.com MarSantos:Layout 1 24/02/2015 4:04 PM Page 43 Urban rail Santos light rail ready to roll Passenger operation is due to begin this month on the first phase of a light rail network in the Brazillian port city of Santos. Keith Barrow previews Brazil’s first modern electric LRT system. S ITUATED on the Atlantic coast of São Paulo state, Santos grew to prominence as the global gateway for Brazil’s coffee exports and today the city remains an important hub for international trade as South America’s largest sea port. The nine districts that make up the Santos metropolitan area have a total population of 1.7 million, with around 2.2 million daily trips on the city’s transport network. The proportion of IRJ March 2015 trips made by private cars increased from 21% in 2007 to 26% in 2012 and Santos suffers from the chronic traffic congestion and pollution that blights many Brazilian cities. São Paulo’s state government is seeking to address the problem with its Integrated Metropolitan System (SIM), an enhanced public transport network for the São Paulo metropolitan region which includes light rail for Santos. Construction began in May 2013 on the first phase, an 11km east-west line from Porto to São Vicente and Barreiros Terminal. Preliminary public services are expected to start this month, when passengers will be offered free rides on the completed central stretch of the line between Mascarenhas de Moraes in São Vicente municipality and Pinheiro Machado in Santos. Further sections of the Porto - Barreiros line are nearing completion and São Paulo Urban Transport Company (EMTU) said in 43 MarSantos:Layout 1 24/02/2015 4:04 PM Page 44 Urban rail mid-February that 90% of construction work has been completed in São Vicente and 50% in Santos. Civil works on the Reais 850m ($US 300m) project are being carried out by Consórcio Expresso VLT Baixada Santista, a consortium of Brazilian construction companies Queiroz Galvão and Trail Infraestrutura, while the electrical and mechanical contract was awarded to a consortium of Adtranz Engenharia, Brascontrol, Ferreira Guedes, and TTrans. In June 2013 TTrans subcontracted Thales to supply signalling and control systems, fixed and mobile communications, data transmission, multimedia solutions and the electronic traffic monitoring system for Phase 1. Vossloh is supplying rail fastenings and switches and crossings for the project. The fleet of 22 bi-directional Tramlink low-floor LRVs is being supplied by Tremvia Santos, a consortium of TTrans and Vossloh Spain, under a Reais 252m contract awarded in December 2012. The first vehicle was delivered last May and dynamic testing began on the 1km Mascarenhas de Morais - Nossa Senhora das Graças section in August. The first three of the seven-section vehicles were built at the Vossloh Rail Vehicles plant at Albuixech near Valencia in Spain, with the remaining 19 being assembled in Brazil by TTrans at its Três Rios facility in Rio de Janeiro state. By mid-February two vehicles were in use for commissioning and four vehicles will be required to operate Santos IRJ Valongo SANTOS Antonio Emmerick Nossa Mascarenhas Porto Pinheiro Machado Samaritá Light rail lines Completed section Under construction Planned Freight railways Existing lines services on the initial section when it opens. The remaining 18 vehicles are due to be delivered to Santos by December and 20 vehicles will be required to operate the full service with two maintenance spares. Each 43.7m-long 2.65m-wide LRV will accommodate up to 408 passengers (6 passengers/m2), 74 of them seated, and the vehicles are equipped with batteries for catenary-free operation on a 440m-long section of the route in the city centre. The line will have a peak capacity of 7000 passengers per hour per direction with a commercial speed of 25km/h. Peak services are expected to operate at 3.5-minute headways. EMTU says the first phase will indirectly benefit all The newly-completed station at Nossa Senhora das Graças. 44 Conselheiro Nébias São Vicente Barreiros municipalities of the city by reducing pollution, noise, and journey times between districts, with projected savings of Reais 21m per year from reductions in accidents and road maintenance. With the opening of the line the bus network will be restructured and the number of bus routes in Santos will be reduced from 52 to 32. Phase 1 of the LRT network is expected to carry 30,000 passengers per day when the Porto Barreiros line is fully operational, and the line will be fully integrated into the broader SIM network serving the São Paulo metropolitan region. Second phase Environmental approval is currently being sought for the Reais 250m second phase of the network, a 4km branch running north from Conselheiro Nébias to Valongo in Santos and expressions of interest will be requested in the second quarter of this year for the project, which also includes three additional stations on the Porto - Barreiros line. Phase 2 is expected to increase ridership on the network to around 70,000 passengers per day. In the longer-term it is planned to extend the branch west to form a loop, which would rejoin the Porto - Barreiros line at Antonio Emmerick station in São Vicente. Preliminary design has also been completed on Phase 3, a four-station 7.5km western extension to Samaritá in São Vicente. An environmental impact assessment is currently underway on this Reais 320m project. With further light rail lines planned, the network is expected to reach 55km by 2030. IRJ IRJ March 2015 Mar p41:Layout 1 23/02/2015 5:51 PM Page 45 TRANSPORT THINKING R A I L W AY S | AV I A T I O N | R O A D S | U R B A N T R A N S P O R T | P O R T S We are transport thinking. We are engineering. Our essence comprises experience, quality, ǡ ǡ ƥ ơ Ǥ ͜͝ǡ ͜͝ Ǥ ơ integral perspective in each of our transport Ǥ ͚ǡ͘͘͝ ǣ service of society. high speed railway stations, spain | studies for the high speed line haldia - howrah, india | high speed train ankara - istanbul, turkey | high speed rail network: train control systems spain | haramain high speed train makkah - madinah, saudi arabia | spanish high speed rail network: infrastructures, spain | cptm lines, brazil | hs2 high-speed, united kingdom www.ineco.com Our most important asset: safety Train travel is becoming more and more comfortable – and faster. To make sure it‘s safe at all times, the driveline components starting with the rail wheels, bearings and brakes, must be engineered and tested for these higher and higher speeds. Our flywheel brake test rigs are designed for testing brakes at speeds of over 500 km/h. They permit IRJ March 2015 the highest possible vehicle/train masses to be simulated by running all flywheels at maximum pace at one and the same time. One reason why we‘re #1 in flywheel brake test rigs. The #1: your best move! www.renk-testsystem.eu 45 Mar p50:Layout 1 02/03/2015 10:28 AM INTERNATIONAL LTD Page 46 40 Couper Street, Glasgow G4 0DL U.K. Tel: 44 (0) 141 552 5591 Fax: 44 (0) 141 552 5064 Website : www.airtecinternational.com E Mail : [email protected] ! " #$ %& ' # '#$ # "#$ #$ ' (!) *'"+ ', "#- $ # . &/ ,.# 0&' #$ ###" " & ) .$ # . MEET THE KEYNOTES: Lincoln Leong 31 March – 1 April 2015 Acting Chief Executive Officer MTR Corporation Hong Kong Convention & Exhibition Centre, Hong Kong The leading event for Asia Pacific’s rail industry Dr. Anthony Townsend Senior Research Scientist, New York University & Author, Smart Cities: Big Data, Civic Hackers, and the Quest for a New Utopia T.C. Chew Managing Director Chew Transit Consultancy Limited Book now and enjoy 10% discount - quote SPPJ www.terrapinn.com/aprailirj Diamond Sponsor Workshop Sponsor 46 Platinum Sponsor Panel Sponsor Lunch Sponsors Dr. Jacob Kam Operations Director MTR Corporation Media partner Gold Sponsors Registration Counter Sponsor Associate Sponsors Coffee Station Sponsor IRJ March 2015 March Southampton N+V:Layout 1 24/02/2015 5:38 PM Page 47 Noise and vibration Reducing freight wagon noise at the source Freight wagons remain the source of high levels of noise despite European legislation prohibiting the use of cast-iron brake blocks on new wagons. Dr Martin Toward, Dr Giacomo Squicciarini, and Professor David Thompson from the University of Southampton’s Institute of Sound and Vibration Research look at current efforts to mitigate rolling noise and curve squeal from freight rolling stock. R AILWAY noise is often a major majority are still fitted with cast-iron source of annoyance for people blocks. Indeed, it was estimated that living close to railways and can only 37,000 of Europe’s 411,000-strong be a major issue when authorities seek freight wagon fleet were fitted with public support to build new or increase composite brakes in 2012. the capacity of existing lines. The introduction of composite LL Often the dominant source is rolling type blocks, which have similar friction noise, generated by the surface characteristics to cast-iron blocks and unevenness (roughness) at the rail/ can be retrofitted to existing wagons, wheel interface which is radiated by the typically results in a noise reduction of sleepers, rails and wheels. Wheel around 7 to 10 dB(A), or roughly half roughness is highly dependent on the the perceived type of brakes fitted. In continental loudness. Europe, cast-iron tread brakes are still widely used on freight wagons, with the abrasive actions of a cast-iron brake block on the wheel tread resulting in high levels of wheel roughness which, at most wavelengths, dominate over Tests of Axiom’s LN25 bogie have shown the rail that its enhanced curving behaviour can roughness. The reduce the likelihood of curve squeal. result is high noise However, levels compared with passenger trains, attendant costs which are generally fitted with and maintenance composite tread brakes or disc brakes. considerations have Moreover, freight trains often operate at meant there has been night when the potential for little incentive for operators to retrofit disturbance is highest. wagons with composite blocks until All new freight wagons in Europe recently. must now be fitted with composite Recognising this issue, the European brakes (K or LL types), which result in Commission published a Roadmap for much lower levels of wheel roughness the reduction of noise generated by and noise, to comply with noise limits freight wagons in April 2013. The introduced in 2006. However, the slow Roadmap considers options to increase renewal rate of wagons due to their retrofitting composite brakes to existing long lifespan means that the vast IRJ March 2015 wagons including by increasing financial support, and introducing mandatory noise limits and noisedependent track access charges. Germany subsequently introduced a system where ‘noisy’ trains are required to pay a track access surcharge from which retrofitted ‘quiet’ wagons are exempt. In addition ‘quiet’ wagons also receive a mileage-based bonus. Switzerland has gone a step further by passing a federal law banning wagons fitted with cast-iron brake blocks from 2020. Indeed it now seems inevitable that over time the proportion of cast-iron braked vehicles in Europe will decrease and attention will shift to other means of reducing freight vehicle noise. Wheel design At low frequencies (<1000Hz) rolling noise is mainly radiated by vibration of the track. However, at higher frequencies wheel noise becomes increasingly important. This is particularly the case in continental Europe where relatively stiff rail pads limit the rail contribution. Railway wheels are very lightly 47 March Southampton N+V:Layout 1 24/02/2015 5:38 PM Page 48 Noise and vibration damped so the noise they radiate is heavily influenced by their resonant behaviour. Coupled with an axisymmetric nature and single connection point at the axles, this means that they resonate with negligible motion at the wheel centre. As a result the vibration behaviour of the wheel is largely unaffected by the rest of the train and consequently noise control measures focus predominately on reducing excitation (ie the roughness) or the vibration and radiation of the wheel. Noise from the bogie or vehicle body is usually negligible in comparison unless the suspension is in poor condition. Design can influence noise radiated by the wheel. To illustrate this, we carried out noise predictions for two different freight wheel designs. The first is the BA319 wheel used on the European standard Y25 bogie, which is fitted with either composite or cast-iron blocks, while the second is the wheel fitted to the Axiom Rail LN25 bogie, which is fitted as standard with composite blocks. The Twins model used in the predictions calculates the noise radiated Table 1 Wheel dB(A) Cast-iron braked BA319 wheel 87.5 Composite braked BA319 wheel 80.3 Composite braked LN25 wheel 78.4 Track dB(A) Total noise dB(A) 88.9 91.3 81.4 83.9 80.7 82.8 Twins predictions showing the contributions of wheel and track components to total noise for the BA319 wheel and the LN25 wheel. by the rails, wheels and sleepers from parameters relating to the track and vehicles. Here we have assumed some typical track and train characteristics for freight in Europe: UIC-60 rail, concrete monoblock sleepers, stiff rail pads, and 120km/h train speeds. The wheels are modelled using finite elements from which mode shapes and natural frequencies are extracted and damping values assigned; the designs are illustrated in Figure 1. These clearly show the LN25 wheel has a thicker web with less curvature while its diameter is 80mm less than the Figure 1 BA319 24mm Ø920mm LN25 32mm Ø840mm Finite element models of the cross-sections of the BA319 and LN25 wheels. 48 industry standard BA319 wheel. As a consequence, assuming roughness corresponding to composite brake blocks for both wheels, the LN25 wheel is predicted to radiate around 2 dB(A) less noise than the BA319 wheel, while the combined noise level from wheel and track is predicted to be around 1 dB(A) lower (see Table 1). As expected the total noise level with the cast-iron braked BA319 wheel is significantly higher than either wheel utilising composite brakes (8.5 dB(A) and 7.4 dB(A) respectively). In all cases, the wheel makes slightly less noise than the track. There is little evidence to suggest that fitting wheels with disc-brakes to freight wagons offers any significant benefits in terms of roughness compared with composite blocks. However, they can offer some secondary benefits in terms of wheel design. Whereas tread-braked wheels are required to have a curved web to allow for thermal expansion under braking, this is not required for disc-braked wheels. This means straight (and thick) webs and wheels may be of a smaller diameter, both of which are beneficial for noise reduction. A further benefit of using disc brakes is that the wheel-mounted discs increase wheel damping, reducing the magnitude of its resonances. Commercially available wheel dampers are now available to exploit the same effect. Designs of these vary considerably and include mass-spring dampers, interlocking plates and friction rings that are inset into the wheel. A round-robin test of wheel dampers in the European Stardamp project found that the efficacy also varied considerably but that reductions of up to 9 dB(A) in the wheel component and up to 2.5 dB(A) in the total noise are possible. Curve squeal Curve squeal noise is another major source of annoyance to the railways’ neighbours, and it can often be much more acute than rolling noise due to its high magnitude and tonal nature. In most cases wheel squeal is initiated at the interface between the wheel tread and the rail. Squeal occurs because train axles are not able to steer perfectly around a corner, which results in lateral creepage at this interface, particularly for the front inner wheel of a bogie or vehicle. Stick-slip behaviour then excites the wheel at IRJ March 2015 March Southampton N+V:Layout 1 24/02/2015 5:39 PM Page 49 Figure 2 axlebox movement bush compliancy radial arm movement bush compliancy radial arm movement Y25 LN25 Comparison of steering mechanisms of industry standard Y25 bogie and the Axiom Rail LN25 bogie. one or more of its natural frequencies the yaw angle of the front wheelset resulting in the radiation of noise from relative to the rail. One way to reduce the wheel. this is to minimise the distance between Due to the very high magnitude of the axles (a simple rule of thumb being curve squeal, solutions generally aim to that squeal is likely to occur when the eliminate the squeal rather than reduce curve radius is less than 100 times the its severity. While lubricating the wheelbase). However, the scope for this wheel/rail interface is undesirable with on freight bogies is limited; the Y25 respect to adhesion, friction modifiers bogie has a wheelbase of 1.8m and are available which aim to interrupt the other design constraints will limit any stick-slip behaviour without significant further reductions. loss of adhesion. Systems that deploy these are often located on the track but Alternative vehicle-mounted systems are also An alternative method to minimise available. the yaw angle uses suspensions which For the vehicle, an important design enable the axles to steer and reduce consideration with respect to squeal is creepages during curving. The LN25 bogie has a radial arm design suspension which allows greater yaw angles than the industry standard Y25 bogie (Figure 2). Recently, we investigated the effect of this increased steerability on the likelihood of squeal occurrence. Initially, both bogie designs were modelled using the vehicle dynamics software, Vampire, for various cases of curve radii, cant deficiencies and wagon loads. The creepages, contact point location and normal forces predicted in Vampire were then used as inputs for a curve squeal model we have developed. From the results of these simulations, it is possible to estimate the statistical likelihood of squeal occurring for each case. Figure 3 compares the likelihood of curve squeal between the two bogies for different curve radii and shows that in severe cases (ie low curve radii) both bogies are likely to squeal. However, squeal continues for greater radii for the Y25 bogie than for the LN25 bogie. This trend was seen for all cant deficiencies, showing that the improved curving behaviour of the steerable LN25 bogie results in lower creepage values, which in turn can reduce the likelihood of curve squeal. In summary, while at present the primary focus in Europe is rightly on reducing the number of ‘noisy’ wagons with cast-iron brake blocks, it is expected that over time attention will shift towards other means of noise reduction for freight wagons. Recent work has shown that there is significant scope in the design and damping of wheels to reduce rolling noise, and that by enabling the axles of freight bogies to steer, it is possible to reduce the likelihood of curve squeal. IRJ Figure 3 Y25 80 LN25 60 40 20 100 Cant deficiency = 0 mm Y25 80 LN25 60 40 20 0 0 200 250 320 400 Curve radius, m 100 Probability of squeal, % Cant deficiency = -50 mm Probability of squeal, % Probability of squeal, % 100 Cant deficiency = 70 mm Y25 80 LN25 60 40 20 0 200 250 320 400 Curve radius, m 200 250 320 400 Curve radius, m Comparison of curve squeal probability for the laded Y25 and LN25 bogies. In both cases the results are with the BA319 wheel. IRJ March 2015 49 IRJMARXX (Arema):Layout 1 23/02/2015 15:25 Page 1 OCTOBER 4-7, 2015 MINNEAPOLIS, MN SAVE THE DATE REGISTER TODAY! Railway Interchange 2015 will host a USA-based Exhibition and Technical Conference at the Minneapolis Convention Center from October 4-7, 2015. Indoor and outdoor exhibits will showcase the latest technology by the members of: • Railway Supply Institute (RSI) • Railway Engineering-Maintenance Suppliers Association (REMSA) • Railway Systems Suppliers, Inc. (RSSI) Technical and Educational presentations are hosted by: • American Railway Engineering and Maintenance-of-Way Association (AREMA) • Coordinated Mechanical Associations (CMA) •Air Brake Association ,QWHUQDWLRQDO$VVRFLDWLRQRI5DLOZD\2SHUDWLQJ2I¿FHUV /RFRPRWLYH0DLQWHQDQFH2I¿FHUV$VVRFLDWLRQ •Mechanical Association Railcar Technical Services •League of Railway Industry Women AREMA RSI REMSA RSSI www.railwayinterchange.org March Croatia:Layout 1 26/02/2015 4:20 PM Page 51 Croatia Reviving a war-torn network Since it was founded in 2006, Croatian infrastructure manager HZ Infrastructure has struggled to rehabilitate its war-ravaged network. But with the government now turning its attention to rail and tapping into EU funds, the tide appears to be turning. Marco Chiandoni and Kevin Smith look at the various projects proposed and underway across the country. C ROATIA’s railway network continues to show signs of neglect two decades since the Balkans conflict which tore Yugoslavia apart and left much of its infrastructure in ruins. While the Croatian government initially focused on rebuilding roads with only a few railway schemes, in 2012 it turned its attention to rail by establishing the Railway Commission, which has resulted in an array of projects to restore and develop new railway infrastructure across the country. Croatia’s Transport Development Strategy 2014-2030, which was adopted by the government in October 2014, is the basis for financing railway projects with the government expected to allocate É500m from 2014 to 2020. It follows the É150m spent on modernising the railways through the 2007-2013 Transport Operational Programme, and like the projects included in this programme, the government is banking on receiving additional support from the European Union, which Croatia joined as the 28th member state on July 1 2013. Among HZŽInfrastructure’s priority projects is the redevelopment of corridors RH1 and RH2. RH1 is part of TEN-T Corridor X, and the Croatian section links Savski Marof on the border with Slovenia with Zagreb, Vinkovci and Tovarnik on the Serbian border. Corridor RH2, which is part of the Mediterranean corridor, or branch B of TEN-T Corridor V, runs from Šapjane on the Slovenian border to Ogulin, Karlovac, Zagreb and Botovo on the border with Hungary. Some schemes slated to improve the interoperability of the two corridors to meet EU standards have already been completed, including an É11.4m project in 2013 to install new signalling and interlocking systems at Zagreb station where the two lines meet. This project, 85% of which was funded through an All existing electrified lines in Croatia have been upgraded from 3kV dc to 25kV ac. IRJ March 2015 EU Instrument for Pre-Accession grant, has reduced shunting times and eliminated the bottlenecks previously impeding long-distance operations. In total around É1bn is due to be spent on RH2 from 2015 to 2019 with some preliminary projects already completed and others underway. These include conversion of electrification from 3kV dc to 25kV 50Hz ac on the Moravice - Rijeka Šapjane, Škrljevo - Bakar, and Sušak Pecine - Rijeka Brajdica sections. This É83m project completed the rollout of a unified 25kV ac system across Croatia in 2013. In addition the refurbishment of the Krizevci - Koprivnica section under a É28m project was completed in 2014 while work is underway on the Koprivnica - Botovo section in a project estimated to be worth É15.2m. The Jastrebarsko - Zdencina upgrade between Karlovac and Zagreb is also complete, where speeds have been increased from 80 to 140km/h. Also nearing completion is the É22.3m rehabilitation of the 16.5km Skrad - Moravice section. This upgrade will increase speeds from 50 to 80km/h on this demanding mountainous route as well as improve passenger comfort. An upgrade worth approximately É40m also began on the Moravice Ogulin section in August 2014. Another upcoming project is the upgrade of the existing line and construction of a second track between Dugo Selo and Krizevci. Bids from two parties were submitted to HZ Infrastructure in February for the work which is budgeted at É198m, with the EU providing É168m of these funds. Other planned projects, which will make up the majority of the expected outlay on RH2, but are yet to secure funding include: construction of a second track on the Krizevci - Koprivnica - Hungarian border section reconstruction and construction of a second track on the Hrvatski Leskovac Karlovac section, and 51 March Croatia:Layout 1 26/02/2015 4:20 PM track-doubling between Goljak and Skradnik. Investments of É160m are planned to modernise, reconstruct and renew RH1 which will increase line speeds to 160km/h and axleloads to 22.5 tonnes. The short section from the border with Slovenia to Zagreb is one of the country’s most important commuter routes but is mixed traffic apart from on the Zagreb West - Zagreb Main Station section. From Zagreb Main Station the corridor runs east to Dugo Selo. A É30.2m project to renew 16km of double-track between Zagreb Borongaj and Dugo Selo was completed by a consortium of Swietelsky and Pruzne Gradevine last summer when the maximum line speed was raised to 140km/h. Further double-track upgrades are planned on the 83.4km stretch south from Dugo Selo to Novska at a cost of É558m, with work being carried out in specific sections between Dugo Selo and Kutina, Kutina and Lipovljani where a new double-track section will be built, and Lipovljani - Novska. A É15.6m design project is underway, with the EU providing 85% of these funds and 15% coming from the Croatian government. This documentation will form the basis of an application for EU funds to complete the project. Sections where work has been completed include the 6.5km stretch from Zagreb Main Station south to Klara where speeds have been increased from 50 to 90km/h through a project completed in 2013 at a cost of É10m, and on the 9.7km section from Velika Gorica to Turopolje under a É13m project which has raised speeds from 50 to 140km/h. In addition, upgrades to the line from Vinkovci to Tovarnik and the Serbian border have already been carried out under a É60.2m project. This ran from September 2008 to December 2011, and was the first in Croatia to benefit from EU funding, with É28.8m, or 35% of the funds provided. Trains can now travel at up to 160km/h on this section, with the upgrades including replacement of wardamaged signalling and interlockings with ETCS Level 1 as well as the installation of a new telecommunications system. Seven existing stops were modernised and two new stops added while stations at Jankovci and Deletovci were rebuilt. Work is also underway to reconstruct the 16.8km Novska - Okucani section and around 3km of track around Okucani station. An EU IPA grant is funding 85% of the É35.9m project with the Croatian government covering the remaining 15%. 52 Page 52 Croatia Ljubljana Koprivnica Zabok Podsused SLOVENIA Botovo Dugo Selo Samobor Sapjane Karlovac Ostarije N Zabno Gradec Zagreb Rijeka HUNGARY Osijek Sisak SERBIA Novska Sunja Vincovci Slavonski Brod Tovarnik Bihac Gospic Zadar BOSNIA Gracac Knin 0 km 50 Besjbujd! !Tfb Split IRJ From Okucani the next section of RH1 up for development is the 131.3km double-track stretch to Slavonski Brod and Vinkovci. Work to develop a feasibility study to define the technical parameters for this project is planned. Other projects In addition to the two core corridors, HZŽ Infrastructure is targeting other upgrades across Croatia. This includes the Lika Project, a É21m upgrade of the Oštarije - Knin - Split line which is underway and due to be completed by 2017. HZ Infrastructure also plans to construct new lines that are of regional and local importance. Bids for construction of the new Gradec - Sveti Ivan Zabno line, which is estimated to cost É32.4m and is co-financed by the EU is underway. Design for the reconstruction and electrification of the Podsused - Zabok line along with plans for the new Podsused - Samobor line, which will also be co-financed by the EU, are planned. HZ Infrastructure says that one of its primary objectives is to increase the role of the railways in transporting passengers, in particular on suburban services in Rijeka and Zagreb. In addition, preliminary work in Split has begun to define the terms of reference for the preliminary design of an integrated transport project in SplitDalmatia County. Here HZ Infrastructure will cooperate with Split-Dalmatia County Electrified lines Other lines Planned lines to develop a master plan for regional mobility. Of course operating cross-border railways like RH1 and RH2 requires effective cooperation with other infrastructure managers. HZŽInfrastructure says a joint operations manual has been developed in Slovenia for the two countries based on EU regulations. “We are cooperating with regard to the delivery of onboard electronic documents, and to introduce a computer programme that will offer a train route upon special request,” says Mr Ivan Vukovic, member of the Management Board at HZŽInfrastructure. An automatic translation system is also being put together to ease difficulties with language experienced with Hungarian State Railways (MAV) while in Serbia, regulations for the border crossing are reviewed annually. It is a similar story with Bosnia and Herzegovina, although cooperation takes place with infrastructure managers at B-H Federation-level and with the Republic of Srpska. HZŽInfrastructure has a lot on its plate over the next few years, and its success is riding on the continuing support of the EU. Progress made thus far is encouraging, but as the array of projects planned shows, there is a lot yet to be done to deliver the infrastructure required for two European TEN-T corridors and an infrastructure manager intent on improving services for freight and passengers. IRJ IRJ March 2015 IRJMARXX (Mack Brooks):Layout 1 11/02/2015 10:24 Page 1 "# 12th INTERNATIONAL EXHIBITION OF RAILWAY EQUIPMENT SYSTEMS & SERVICES Railtex is the all-encompassing showcase for technological innovation across all sectors of the rail supply market - the platform for people from throughout the industry to meet face to face, make connections and do business. Regist for FR er EE at www.r ailtex.c o.uk saving £20 the do on or Hundreds of exhibitors will present thousands of products and services to the industry. See the latest innovations and hear updates on key projects and developments ^P[OPU[OLPUK\Z[Y`MYVTOPNOWYVÄSLZWLHRLYZ Tel + 44 (0) 1727 814400 [email protected] Supported by: www.railtex.co.uk Project1:Layout 1 10/03/2015 1:10 PM Page 1 INDUSTRY BRIEFING DAY, JEDDAH,SAUDI ARABIA MARCH 30, 2015 Pursuant to Council of Ministers Decree No. 131 dated 29/04/1434 H (12 March 2013), the Metro Jeddah Company (MJC) was established to implement the Jeddah Public Transportation Program (JPTP). The JPTP consists of Metro & Light Rail Transit System, Bus Rapid Transit & Bus Network, Marine Ferries/Taxis and supporting infrastructure, Corniche Tramway, Al-Muntalaq Multi-Modal Station with supporting infrastructure, Park & Ride Facilities, and Obhur Creek Bridge. Sponsored by His Royal Highness Prince Khalid Al-Faisal , Advisor to His Majesty The Custodian of The Holy Mosques , Governor of Makkah Region, and the Chairman of the Higher Committee of Jeddah Public Transportation ProgramMetro Jeddah Company cordially invites Consultants, D & B Contractors, Manufacturers, and Interested Companies to attend the: Industry Briefing Day for Jeddah Public Transportation Program (JPTP) Objective: MJC will brief the industry on JPTP Master Plan, Program Master Schedule, Procurement Strategies, and Packaging Tendering Process. Time: Monday, March 30, 2015, 08:00 am to 05:00 pm Tuseday, March 31, 2015, Site visit to metro Jeddah lines proposal and alignment Location: Jeddah, Saudi Arabi Registration deadline: March 22, 2015 Registration Fee: SAR 2,500 per person (Max. 2 representatives per company) Attendees must fill the registration form the following link: ftp://metrojeddah.com.sa and send it to ( Email: [email protected] ) $FRQ¿UPDWLRQHPDLOFRQWDLQLQJWKHORFDWLRQRIWKHHYHQWDQGWKH,QYLWDWLRQ&DUGZLOOEHVHQWWRWKHQDPHVRIWKRVH who have successfully registered. MarRendez:Febrrend 24/02/2015 4:12 PM Page 55 Rendezvous 24-25—Lille, France Sifer International Exhibition of Rail Technology Mack Brooks, St Albans, Britain. Tel: +44 1727 814400 Fax: +44 1727 814401 [email protected] www.sifer2015.com/ March 2015 16-17—Berlin, Germany 3rd Railway Forum & Exhibition IPM, Hannover, Germany. Tel: +49 511 4731 4790 Fax: +49 511 4731 4791 [email protected] www.ipm-scm.com 24-26—Melbourne, Australia NEW: RISSB Rail Safety Conference Informa, Sydney, Australia. Tel: +61 2 9080 4307 [email protected] www.railsafetyconference.com.au 17-18—Dubai, UAE Middle East Rail Exhibition Ansil D’Souza Terrapinn, Dubai, UAE. Tel: +971 4440 2520 Fax: +971 4445 8475 [email protected] www.terrapinn.com/exhibition/ middle-east-rail/ 17-19—Utrecht, Netherlands Rail-Tech Conference & Exhibition Europoint, Zeist, Netherlands. Tel: +31 30 698 1800 Fax: +31 30 691 7394 [email protected] www.rail-tech.com 30-31—Doha, Qatar NEW: International Conference on Railway Interoperability, Standardisation and Harmonisation for the Middle East Paul Veron, UIC, Paris, France. Tel: +33 1 4449 2050 Fax: +33 1 4449 2059 [email protected] www.uic.org 23-26—Tokyo, Japan Rail Tokyo Conference 2015 JTB Communications, Osaka, Japan. Tel: +81 6 6348 1391 Fax: +81 6 6456 4105 [email protected] http://railtokyo2015.cs.it-chiba.ac.jp/ 30-Apr 1—Hong Kong, China Asia Pacific Rail Conference & Exhibition Yee Lim Tan, Terrapinn, Singapore. Tel: +65 6322 2701 Fax: +65 6271 2052 [email protected] www.terrapinn.com/exhibition/ asia-pacific-rail/ 31-Apr 1—Colorado Springs, USA TTCI 20th Annual AAR Research Review Transportation Technology Center, Pueblo, Colorado, USA. Tel: +1 303 617 3300 [email protected] http://regonline.com/20thAnnual April 2015 15-17—Lisbon, Portugal World Congress on Rail Training N Amirault, UIC, Paris, France. Tel: +33 1 4449 2020 Fax: +33 1 4449 2029 [email protected] www.uic.org/spip.php?rubrique2 193 30-May 1—London, Britain NEW: Rail Safety Summit RailStaff, Coalville, Britain. Tel: +44 1530 816 456 www.railsafetysummit.com May 2015 6-7—Arlington, VA, USA NEW: Next-Gen Train Control Conference Simmons Boardman, New York, USA. Tel: +1 212 620 7208 Fax: +1 212 633 1165 [email protected] www.railwayage.com/index.php/ conferences/nextgen.html?channel 12-14—Birmingham, Britain Railtex Exhibition Heidi Cotsworth, Mack Brooks, St Albans, Britain. Tel: +44 1727 814 400 Fax: +44 1727 814 401 [email protected] www.railtex.co.uk 17-20—Tehran, Iran NEW: RailExpo 2015 Milad e Noor, Tehran, Iran. Tel: +98 21 2225 4250 Fax: +98 21 2225 4250 [email protected] www.miladfair.ir 19-20—Amsterdam, Netherlands Smart Rail Congress & Expo Global Transport Forum, London, Britain. Tel: +44 20 7045 0900 Fax: +44 20 7045 0901 [email protected] http://globaltransportforum.com /smart-rail-europe/ June 2015 8-10—Milan, Italy NEW: UITP World Congress & Exhibition FREE 19-20 MAY 2015 TO ATTEND PASSENGER TERMINAL AMSTERDAM, NETHERLANDS FOR RAILWAYS, INFRASTRUCTURE MANAGERS AND GOVERNMENT 3 CONGRESSES, 1 DEFINITIVE SHOW HIGH LEVEL C-LEVEL SUMMIT & MARKET REVIEW Defining the future railway • Staying competitive and meeting demands SmartTrain Manufacturing Partners: Associate Sponsors: Network Sponsor: Workshop Sponsor: IT Partner: Register your pass at www.smartraileurope.com IRJ March 2015 55 MarRendez:Febrrend 24/02/2015 4:12 PM Page 56 Rendezvous NEW: Africa Rail Call for papers. Corentine Wauters, UITP, Brussels, Belgium. Tel: +32 2 663 6665 Fax: +32 2 660 1072 [email protected] www.uitpmilan2015.org Brian Shabangu, Terrapinn, Bryanston, South Africa. Tel: +27 11 516 4015 Fax: +27 11 463 6000 [email protected] www.terrapinn.com/exhibition/ africa-rail/ 10-13—Busan, Korea NEW: Korean Railways & Logistics Fair Messe Frankfurt Korea, Seoul, Korea. Tel: +82 2 775 2280 Fax: +82 2 776 5113 [email protected] www.raillogkorea.com 21-24—Perth, Australia IHHA Conference & Exhibition EECW, Wembley, Australia. Tel: +61 8 9389 1488 [email protected] www.ihhaperth2015.com 25-26—Bangkok, Thailand NEW: Asia Rail Summit China Polaris Consulting, Shanghai, China. Tel: +86 21 6045 6268 Fax: +86 21 6047 5887 [email protected] www.ourpolaris.com/2015/ars 30-Jul 1—Johannesburg, South Africa July 2015 7-10—Tokyo, Japan NEW: UIC Highspeed Congress 2015 (9th World Congress and Trade Exhibition on High Speed Rail) UIC, Paris, France. Tel: +33 1 4449 2020 Fax: +33 1 4449 2029 www.uic-highspeed2015.com August 2015 30-Sep 3—Colorado Springs, USA NEW: International Conference on Contact Mechanics & Wear of Rail /Wheel Systems Lori Bennett, ConferenceDirect, Colorado, USA. Tel: +1 303 617 3300 Fax: +1 888 389 7599 [email protected] www.cm2015.com September 2015 22-23—Lille, France NEW: ERTMS CCRCC Conference European Railway Agency, IRJ Subscription Order Form Valenciennes, France. Tel: +33 32 709 6595 [email protected] www.era.europa.eu/Communica tion/News/Pages/CCRCC-2015. aspx 22-25—Gdansk, Poland NEW: Trako International Railway Fair & Exhibition Gdansk International Fair Co, Gdansk, Poland. Tel: +48 58 554 9212 Fax: +48 58 554 9211 http://trakotargi.amberexpo.pl/ 30-Oct 2—Lyon, France NEW: Rencontres nationals du transport public Conference & Exhibition GIE, Paris, France. Tel: +33 1 4874 0482 Fax : +33 1 4874 0854 stephanie.comere@objectiftrans port public.com www.rencontres-transport-public.fr/ 6-8—Jönköping, Sweden NEW: Nordic Rail 2015 Conference & Exhibition Elmia Fairs, Jönköping, Sweden. Tel: +46 3615 2137 Fax: +46 3671 8544 [email protected] www.elmia.se/en/nordicrail/ 21-22—Marrakech, Morocco NEW: Next Station Conference UIC, Paris, France. Tel: +33 1 4449 2020 Fax: +33 1 4449 2029 [email protected] www.nextstation2015.com 28-29—Charlotte, USA NEW: Smart Rail Congress & Expo Global Transport Forum, London, Britain. Tel: +44 20 7045 0900 [email protected] www.globaltransportforum.com/ smartrail-events/ October 2015 November 2015 4-7—Minneapolis, USA NEW: Railway Interchange Trade Show & Conference AREMA Tel: +1 301 459 3200 RSI Tel: +1 202 347 4664 REMSA Tel: +1 202 715 2921 RSSI Tel: +1 502 327 7774 www.railwayinterchange.org 11-13—Chiba, Japan NEW: Mass-Trans Innovation Japan 2015 CNT, Tokyo, Japan Tel: +81 3 5297 8855 Fax: +81 3 5294 0909 [email protected] www.mtij.jp PRO FORMA INVOICE PLEASE PRINT CLEARLY B0315 IMPORTANT Name _____________________________________________________________________ Job Title __________________________________________________________________ Company _________________________________________________________________ Business Address __________________________________________________________ ___________________________________________________________________________ Country _________________________________ Date____________________________ Tel: _________________________________ Fax: _________________________________ Email: _______________________________ Signature: ___________________________ What is your primary business/industry: F Railway Operator - Freight T Railway Operator - Passenger/Transit B Railway Operator - both Freight and Passenger Transit I Infrastructure Manager L Railway Leasing Company E Railway Construction/Engineering/ Planning Company S Freight Shipper J Railway Equipment Manufacturer P Railway Service Provider (please specify) _________________________ C Consultant R Regulatory Authority U University/Training Organisation H Railway Libraries or Associations O Other (Please specify) _______________________________________ Tick your job function/responsibility: New rates for 1-year subscription print $US 220.00 online version $US 220.00 both print and online versions $US 220.00 VISA A/C No Expiry Date MASTERCARD / Send your completed form and payment to: Circulation Department, International Railway Journal, PO Box 1172, Skokie, IL 60076-8172, USA or Fax: +1 402 346 3670. 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Send your new details to the above address and include the mailing label showing your old address. 56 a Executive, Finance & Accounting, Ministries b Operating c Commercial/Marketing d Purchases & Stores e Mechanical Engineering f Civil Engineering/Track m Electrical Engineering g Signalling & Telecommunications h Logistics p Project Management/Consulting s Planning/Strategy i IT t Education/Training j Librarian/Information Resources l Other (please specify) ____________________ Purchasing responsibility: N O P Q R Recommend purchase Participate in decision to purchase Approve expenditure Specify or select product Place purchase order IRJ March 2015 MarAdIndex:Ad Index 24/02/2015 4:43 PM Page 57 Recruitment Editorial contacts 46 Killigrew Street, Falmouth, Cornwall TR11 3PP, UK Tel +44 1326 313945 Fax +44 1326 211576 Editor-in-Chief/Associate Publisher David Briginshaw CMILT Associate Editor Keith Barrow BA (Hons) Features Editor Kevin Smith MA Data & Markets Editor Angus Hammond BA (Hons) Senior Designer Fiona Browning Production Assistant Sue Morant [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] To advertise products or services in the classified section of IRJ, please contact Louise Cooper on +44 1444 416368 or email [email protected] For US companies contact: Jeanine Acquart on +1 212 620 7211 or email [email protected] Regional editors Australia Mark Carter Tel +61 8 8367 8572 [email protected] Chile Ian Thomson Newman [email protected] Germany Keith Fender [email protected] Italy Marco Chiandoni [email protected] Japan Yoshihiko Sato Tel +81 3 5721 6616 [email protected] New Zealand Richard Worrall [email protected] Southern Africa John Batwell [email protected] Spain Fernando Puente [email protected] Switzerland Anitra Green Tel +41 61 461 4536 USA/Canada William C Vantuono Tel +1 212 620 7240 [email protected] Correspondents Argentina Jorge Waddell Austria Erwin Reidinger Brazil Gustavo Ferrari Denmark Denis Bowers East & West Africa Shem Oirere Hungary Ferenc Joo India Raghav Thakur Expressions of Interest? 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Israel Jeremaya Goldberg Netherlands Quintus Vosman Pakistan Naeem Qureshi/Rashid Ali Spain/Portugal Barry Cross Taiwan Glenn Smith Ukraine Alexander Kava Zimbabwe Ed Chikuni Executive offices Simmons-Boardman Publishing Corp 55 Broad Street, 26th Floor, New York, NY 10004-2580, USA Tel +1 212 620 7200 Fax +1 212 633 1165 President & Chairman A J McGinnis Publisher, Rail Group Jon Chalon Executive Editor Luther S Miller Circulation Director Maureen Cooney [email protected] Advertising contacts For more information, contact Louise Cooper on +44 1444 416368 or by email at [email protected] For all areas except those listed below contact: Louise Cooper, International Area Sales Manager Tel +44 1444 416368 Fax +44 1444 458185 [email protected] Julie Richardson, International Area Sales Manager Tel +44 1444 416368 Fax +44 1444 458185 [email protected] Suite N2, The Priory, Syresham Gardens, Haywards Heath, West Sussex RH16 3LB, UK ITALY & Italian-speaking SWITZERLAND Dr Fabio Potestà, Elda Guidi Mediapoint & Communications srl, Corte Lambruschini, Corso Buenos Aires 8, Vo Piano, Int 7, 16129 Genova, Italy Tel +39 010 570 4948 Fax +39 010 553 0088 [email protected] JAPAN Katsuhiro Ishii, Ace Media Service Inc 12-6, 4-chome, Nishiiko Adachi-ku, Tokyo 121-0824, Japan Tel +81 3 5691 3335 Fax +81 3 5691 3336 [email protected] NORTH AMERICA AL, AR, IN, KY, LA, MI, MS, OH, OK, TN, TX Emily Guill, 20 South Clark Street, Suite 1910, Chicago, Illinois 60603 Tel 312 683 5022 Fax 312 683 0131 [email protected] AK, AZ, CA, CO, IA, ID, IL, KS, MN, MO, MT, ND, NE, NM, NV, OR, SD, UT, WA, WI, WY, Canada (Alberta, British Columbia, Manitoba, Saskatchewan) Heather Disabato (Chicago Office) Tel 312 683 5026 [email protected] CT, DC, DE, FL, GA, MA, MD, ME, NC, NH, NJ, NY, PA, RI, SC, VA, VT, WV, Canada (Quebec & East Ontario) Mark Connolly, 55 Broad Street, 26th Floor, New York, NY 10004-2580 Tel 212 620 7260 [email protected] Classified Advertising Sales Jeanine Acquart (New York Office) Tel 212 620 7211 [email protected] IRJ March 2015 Advertisers Index Airtec International Alstom Amsted Rail Arema (Railway Interchange 2015) Astoca AZD Praha Evraz Global Rail Tenders Global Transport Forum (Smart Rail Europe) GMT Gummi Metall Technik Hitachi Rail Europe Ineco Intirio Kranunion (Kirow) Loram Mack Brooks (Railtex) Mechan Pandrol Plasser & Theurer Pouget Rail Renk Robel Siemens SRS Rail System Terrapinn (Asia Pacific Rail 2015) ThermOmegaTech Ultimate Europe Wi-Tronix 46 FC IBC 50 46 15 13 54 55 41 IFC 45 22 15 35 53 41 29 5 37 45 36 23 42 46 19 34 BC 57 MarTLW:Layout 1 25/02/2015 6:10 PM Page 58 The last word Seeking efficiencies with smarter procurement With an annual purchasing volume of more than €10bn, German Rail is a key customer for thousands of rail industry suppliers. Chief procurement officer Uwe Günter tells Keith Barrow how DB’s procurement strategy seeks to harness both innovation and standardisation to improve performance and reduce life-cycle costs. “There’s a need to transform procurement from a project-related activity to a productrelated one. Previously we bought ‘our’ trains, now we want to buy standard trains.” A N effective procurement strategy is vital to the performance of any railway, so for Europe’s largest railway company, refining this process can make an enormous contribution to improving the efficiency of the network. German Rail (DB) manages and operates a 33,500km network. Procurement volume reflects the scale and high traffic density of the network DB has annual purchasing volume of around ƒ12bn and places around 300,000 individual orders with 35,000 suppliers each year. In recent years Germany has become notorious for prolonged rolling stock authorisation, and this has become a significant risk for operators introducing new trains fleets, which is often a requirement of new regional contracts. As a major rolling stock buyer, DB is looking for ways to reduce its exposure to risk in new rolling stock and it has initiated its Procurement and Technology Strategy 2025 to manage this process more effectively. The aim of the strategy is to improve cost effectiveness, quality, and availability of train fleets while ensuring new rolling stock meets the highest sustainability standards to minimise their impact on the environment. “The procurement of rolling stock has become associated with significant delivery delays and high failure rates, which means additional cost and a negative impact on the company’s image,” explains DB’s chief procurement officer Dr Uwe Günter. “We want to avoid this in future, so we are bringing technical quality, 58 Uwe Günter production, and procurement together to optimise this process. We also need to exert our exacting standards for quality and efficiency through the whole life-cycle of the trains we buy, and this needs a different tendering strategy.” The procurement strategy seeks to separate innovation and procurement projects with a focus on what DB describes as “configurable standard products,” making use of suppliers’ product platforms wherever possible. DB has developed guidelines for quality partnerships in the development of rail vehicles with the aim of creating a common understanding between the buyer and supplier on rolling stock requirements. “There’s a need to transform procurement from a project-related activity to a product-related one,” says Günter. “Previously we bought ‘our’ trains, now we want to buy standard trains.” Günter says that standardisation of rolling stock will bring substantial benefits to suppliers, operators, and ultimately the railway’s customers. “Our objective is to harmonise requirements with other operators,” he says. “More standardisation means that more products will meet our requirements. Over time, demand for innovative standardised vehicles rises, so the strongest suppliers will make the biggest impact.” DB employs a system of Key Performance Indicators (KPIs) to track progress with equipment once it has been delivered and is using tools such as a uniform rail vehicle maturity model to monitor quality on a life-cycle basis. Suppliers are partners in the procurement strategy and DB adopted a three-stage supplier management process in 2010. This comprises: Qualification - suppliers are selected according to minimum standards defined by DB, which sets principles for the future development of chosen suppliers at this stage. DB argues that qualification of suppliers accelerates the award process at later stages. Appraisal - supplier appraisal is carried out according to standard criteria. All appraisal results are documented with reference to the specific transaction and provide information about the qualification of a supplier as a DB partner. The appraisal is intended to ensure the supplier can meet cost, quality, and delivery requirements. Development - DB seeks to enhance the quality of approved suppliers and improve the chances of success for new suppliers in the development phase. “This system gives us a stronger relationship with the supplier through all three phases,” says Günter. “We have a ratings system and if the supplier is classified as restricted or poor we initiate supplier development to help address any problems they might be having. We’ve had good feedback from our suppliers and they are satisfied with the management system. We make around 5000 appraisals a year and as part of this process we try to prepare our suppliers for the competition.” DB has initiated an annual supplier award programme to recognise excellence in procurement in five categories. DB also presents a “Supplier of the Year” award to the company that most effectively reflects the company’s values in ecology, economy, and social affairs. Günter says that both suppliers and buyers will need to make changes if rail is to remain an attractive option for freight and passenger users. “Other modes have seen strong technical development recently and in rail there is a need for substantially shorter product cycles,” he says. “We must pursue faster innovation on a massive scale if we want to remain competitive.” IRJ DB will present details of its procurement strategy at the 3rd Railway Forum in Berlin on March 16 and 17. For more details visit www.ipm-scm.com IRJ March 2015 IRJMARXX (Amsted):Layout 1 11/02/2015 16:15 Page 1 THE CRITICAL LINK IN THE HEAVY HAUL WORLD. Last year, the nearly 3 million freight cars ƵƟůŝnjŝŶŐŵƐƚĞĚZĂŝů®ƉƌŽĚƵĐƚƐ ĚĞůŝǀĞƌĞĚƵŶŵĂƚĐŚĞĚƌĞůŝĂďŝůŝƚLJ ĂŶĚƉĞƌĨŽƌŵĂŶĐĞĂĐƌŽƐƐďŝůůŝŽŶƐŽĨƚŽŶͲŵŝůĞƐ ƐƉĂŶŶŝŶŐϲĐŽŶƟŶĞŶƚƐ͘ tŚĞƌĞĞůƐĞŝŶƚŚĞǁŽƌůĚĐĂŶLJŽƵĮŶĚ ĂƚƌĂĐŬƌĞĐŽƌĚůŝŬĞƚŚĂƚ͍ www.amstedrail.com | +1.312.922.4501 | 311 S. Wacker Drive, Suite 5300, Chicago, IL 60606 © 2015 Amsted Rail Company, Inc. 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