Basic Plan for Modernization of Rail Transportation System in Yangon, Myanmar
Basic Plan for Modernization of Rail Transportation System in Yangon, Myanmar 2016/17 KSP Policy Consultation III : 2016/17 KSP Policy Consultation III : Basic Plan for Modernization of Rail Transportation System in Yangon, Myanmar
Ministry of Strategy and Finance, Republic of KoreaⅠGovernment Complex, Sejong, 30109, Republic of Korea www.mosf.go.kr The Export-Import Bank of KoreaⅠ38 Eunhaeng-ro, Yeongdeungpo-gu, Seoul, 07242, Republic of Korea www.koreaexim.go.kr
2016/17 KSP Policy Consultation Ⅲ
Project Title Basic Plan for Modernization of Rail Transportation System in Yangon, Myanmar
Prepared by Seoul Metro, Soosung Engineering Co., Ltd., SAMOOCM Architects & Engineers Co., Ltd.
Financed by Ministry of Strategy and Finance, Republic of Korea
Supported by The Export-Import Bank of Korea (Korea Eximbank) - Seung Ho Sohn, Director General - Jae Jeong Moon, Director of KSP Team - Hyun Hee Park, Senior KSP Specialist of KSP Team - Mi Seon Ahn, Researcher of KSP Team - Jin Ju Hong, Researcher of KSP Team
Prepared for Ministry of Transport, Myanmar Myanmar Railways, Myanmar
Project Manager Min Sik Gong, Seoul Metro
Researchers Jong Bum Kim, Seoul Metro Ho Nam Kim, Seoul Metro Dong Ki Kim, Soosung Engineering Co., Ltd. Sang Gon Kim, Soosung Engineering Co., Ltd. Suk Su Kim, Soosung Engineering Co., Ltd. Ji Wook Jung, Soosung Engineering Co., Ltd. Chang Kyum Kim, SAMOOCM Architects & Engineers Co., Ltd. Tae Hyun Kim, SAMOOCM Architects & Engineers Co., Ltd. Yong Ha Lee, SAMOOCM Architects & Engineers Co., Ltd.
i Contents 2016/17 KSP Policy Consultation Ⅲ
Summary
Ⅰ. Project Summary ·········································································································· 1 1 . P r o j e c t O b j e c t i v e s & S c o p e ·········································································································· 1 2 . S t r a t e g i c D i r e c t i o n o f t h e P r o j e c t a n d H i g h l i g h t s ·································································· 3 3 . E x p e c t e d E f f e c t ·································································································································· 5
Ⅱ. Myanmar (Greater Yangon Region)’s Status and Problems ·························· 6 1 . M y a n m a r ’ s R a i l w a y S y s t e m S t a t u s ······························································································ 6
Ⅲ. General Status and Traffic Condition of Seoul ··············································· 20 1 . G e n e r a l S t a t u s o f S e o u l ··············································································································· 2 0 2 . T r a f f i c S t a t u s o f S e o u l ·················································································································· 2 1
Ⅳ. Case Study on Seoul Urban Railway Transit Construction and Financing ··· 23 1 . T h e P h a s e Ⅰ o f M e t r o C o n s t r u c t i o n ( L i n e s 1 ~ 4 ) ······························································· 2 3 2 . T h e P h a s e Ⅱ o f M e t r o C o n s t r u c t i o n ( L i n e s 5 ~ 8 ) ······························································· 2 5 3 . T h e P h a s e Ⅲ o f M e t r o C o n s t r u c t i o n ( L i n e s 9 ) ···································································· 2 7 4. Case Study on Seoul Urban Ra i l w a y T r a n s i t F i n a n c i n g ····················································· 2 8 5. Basic Plan for Metro Construction After 2015 in Seoul ···················································· 3 3
Ⅴ. Urban Railroad Construction Process in Korea ··················································· 40 1 . R a i l w a y C o n s t r u c t i o n P r o j e c t F i n a n c i n g ··················································································· 4 0 2 . R a i l w a y C o n s t r u c t i o n P r o j e c t P r o c e s s ······················································································· 42 3. Process of Urban Railway Transit Construction (Government Pro j e c t ) ························ 4 3 4. Process of Urban Railway Transit Construction (Private Projec t ) ·································· 4 4
Ⅵ. Alternative Selection Standard of LRT system in Korea ······························· 48 1 . B a c k g r o u n d a n d o b j e c t i v e s o f g u i d e l i n e s ··············································································· 4 8 2 . H i g h l i g h t s o f G u i d e l i n e s ················································································································ 4 8 3 . D e t a i l s o f t h e G u i d e l i n e s ·············································································································· 4 9 4. Application Procedure for New Transportation Mode Guidelines ··································· 5 1
Ⅶ. Pre-Feasibility Study: Yangon-Mingalardon Airport Rail Link ······················ 56 1 . P r o j e c t S u m m a r y ····························································································································· 5 6 2 . B a s i c P r o j e c t D a t a A n a l y s i s ········································································································· 5 7 ii
3 . R e v i e w o f P r o f i t a b i l i t y ···················································································································· 7 4 4 . R e v i e w o f P r o j e c t C o s t ················································································································· 8 9 5 . T e c h n i c a l R e v i e w ····························································································································· 9 6 6 . E s t i m a t e o f T o t a l P r o j e c t C o s t ································································································· 1 2 1
Ⅷ. Recommendation on policy: Airport Rail Link for Yangon-Mingalardon-Hantharwaddy ································································· 127 1 . P r o j e c t S u m m a r y ·························································································································· 1 2 7 2 . R e v i e w o f C o s t E s t i m a t e b y P r o j e c t T e a m ·········································································· 1 2 7 3 . C o m p a r i s o n o f T o t a l P r o j e c t C o s t o f M R T / L R T S y s t e m ·················································· 1 2 9 4 . P r o p o s a l o f S t a g i n g C o n s t r u c t i o n ····························································································132 5 . F i n a n c i n g P l a n f o r U r b a n R a i l T r a n s i t ··················································································· 1 3 5 6 . B u s i n e s s S t r u c t u r e P r o p o s a l ······································································································ 1 4 2
Ⅸ. Conclusion ················································································································· 144 1. Project-related Laws and Environmental Impact Analysis ·············································· 1 4 4 2 . D e m a n d A n a l y s i s ·························································································································· 1 4 4 3 . A n a l y s i s o f P r o p o s e d R o u t e ······································································································ 1 4 5 4 . D r o n e S u r v e y ································································································································· 1 4 5 5 . F i n a n c i n g P l a n ······························································································································· 1 4 6 6 . E s t i m a t e o f P r o j e c t C o s t ············································································································ 1 4 6 7 . O p t i m a l P r o j e c t S t r u c t u r e ·········································································································· 1 4 7 8 . P u s h F o r w a r d M e a s u r e b y S t a g e ···························································································· 1 4 7
T a b l e 1 . S c o p e o f t h e P r o j e c t ······································································································· 2 T a b l e 2 . M y a n m a r ’ s R e l e v a n t R a i l w a y A u t h o r i t i e s ·································································· 6 T a b l e 3 . M a i n R o u t e s b y R e g i o n i n M y a n m a r ········································································· 8 T a b l e 4 . R e g i o n a l R a i l w a y S t a t u s i n M y a n m a r ········································································· 8 T a b l e 5 . Y e a r l y P a s s e n g e r R a i l V o l u m e ( 2 0 0 7 ~ 2 0 1 4 ) ························································· 1 0 T a b l e 6 . Y e a r l y F r e i g h t R a i l V o l u m e ( 2 0 0 7 ~ 2 0 1 4 ) ······························································· 1 1 T a b l e 7 . Y a n g o n C i r c u l a r L i n e S t a t u s ······················································································· 1 1 Table 8. Number of Vehicle Registration per Population in Myanm a r ( 2 0 1 0 ) ··········· 1 3 Table 9. Myanmar’s Mid&Long-Term Railroad Construction Project S t a t u s ··············· 1 6 T a b l e 1 0 . H y d r o p o w e r P l a n t S t a t u s i n M y a n m a r ···································································· 1 9 T a b l e 1 1 . P o p u l a t i o n o f S e o u l ······································································································· 2 0 T a b l e 1 2 . H o u s e D i s t r i b u t i o n o f S e o u l ······················································································· 2 0 Table 13. Number of Registered Businesses and Employees in Seoul ··························· 2 1 T a b l e 1 4 . E c o n o m i c G r o w t h R a t e o f S e o u l ··············································································· 2 1 T a b l e 1 5 . P u b l i c B u s R o u t e s i n S e o u l a s o f 2 0 1 5 ································································· 2 2 T a b l e 1 6 . S h u t t l e B u s e s i n S e o u l a s o f 2 0 1 5 ·········································································· 2 2 Table 17. Seoul Metro Routes in Operation as of 2015······················································ 2 2 T a b l e 1 8 . S e o u l M e t r o L i n e 1 ······································································································· 2 3 Table 19. Detailed Financing Breakdown of Seoul Metro Line 1 ······································ 2 8 Table 20. Detailed Financing Breakdown of Seoul Metro Line 2 ······································ 2 9 Table 21. Detailed Financing Breakdown of Seoul Metro Lines 3 & 4 ·························· 3 0 Table 22. Detail Cost Breakdown of Phase II of Metro Financing ···································· 3 1 T a b l e 2 3 . T o t a l P r o j e c t C o s t f o r S e o u l M e t r o 9 S t a g e 1 ···················································· 3 2 Table 24. Criteria of Financial Resource Share by Railroad Type ····································· 4 0 T a b l e 2 5 . C r i t e r i a o f B e n e f i c i a r y & O w n e r ’ s C o s t S h a r e ····················································· 4 1 Table 26. Railway Construction Process and the Required Time in K o r e a ···················· 4 2 Table 27. Process of Urban Railway Transit Construction (Gov’t P r o j e c t ) ···················· 4 3 Table 28. Process of Urban Railway Transit Construction ( i n c a s e o f P r i v a t e I n v e s t m e n t ) ················································································ 4 4 Table 29. Process of BTO Project Announced by Government ········································· 4 5 Table 30. Process of BTO Project Announced by Private Sector ······································ 4 6 T a b l e 3 1 . B T L P r o j e c t I m p l e m e n t a t i o n P r o c e s s ······································································· 4 7 Table 32. Mean Operating Cost by Different Transportation Modes ······························· 5 4 T a b l e 3 3 . M o d a l S p l i t b y T r a n s p o r t a t i o n M o d e s ····································································· 5 4 T a b l e 3 4 . T r i p G e n e r a t i o n R a t e p e r P e r s o n ·············································································· 5 5 iv
Table 35. Other Considerations by New Transportation Mode ·········································· 5 5 Table 36. The Major Amendments to Myanmar’s Foreign Investment L a w ················· 5 9 Table 37. Taxation Classification and Applicable Tax Rate in Mya n m a r ························ 6 1 T a b l e 3 8 . W i t h h o l d i n g T a x R a t e f o r F o r e i g n e r s i n M y a n m a r ············································· 6 2 Table 39. Main Contents of the Double Taxation Agreement ··········································· 6 3 Table 40. Myanmar’s Credit Rating by International Credit Rating A g e n c y ··················· 6 6 T a b l e 4 1 . A D B ’ s K e y M i s s i o n s ······································································································· 6 7 Table 42. Total 11 projects, $484.7 million approved. ························································· 6 9 T a b l e 4 3 . G r a n t A i d b y K O I C A ······································································································ 7 1 Table 44. Different Types of Official Development Assistance (OD A ) ···························· 7 1 T a b l e 4 5 . P r i v a t e P r o j e c t ’ s M e t h o d s ··························································································· 72 T a b l e 4 6 . T r a f f i c D e m a n d F o r e c a s t F l o w c h a r t ········································································· 7 6 T a b l e 4 7 . A r e a & P o p u l a t i o n o f T o w n s h i p i n Y a n g o n ·························································· 7 7 T a b l e 4 8 . G r o w t h R a t e o f V e h i c l e s R e g i s t e r e d i n M y a n m a r ··············································· 8 0 Table 49. Increase in Number of Cars Registered in Yangon ············································ 8 1 T a b l e 5 0 . T r a f f i c D e m a n d F o r e c a s t f o r P r o p o s e d R o u t e ······················································ 8 2 Table 51. LRT System in Operation by Different Continents ············································· 8 3 Table 52. Link by Each City &Branch Line Transportation Modes ·································· 8 3 T a b l e 5 3 . C i r c u l a r T r a n s p o r t a t i o n M o d e ····················································································· 8 4 T a b l e 5 4 . M a i n T r a n s p o r t a t i o n M o d e s f r o m E a c h C i t y ························································· 8 4 T a b l e 5 5 . A c c e s s T r a n s p o r t a t i o n M o d e s f o r E a c h C i t y ························································· 8 5 T a b l e 5 6 . A G T L R T i n O p e r a t i o n b y E a c h C o u n t ··································································· 8 5 T a b l e 5 7 . L I M S y s t e m i n O p e r a t i o n b y E a c h C o u n t r y ·························································· 8 6 T a b l e 5 8 . M o n o r a i l S y s t e m i n O p e r a t i o n b y E a c h C o u n t r y ················································· 8 6 Table 59. Public Transportation Fare Status in Yangon ······················································· 8 8 T a b l e 6 0 . F a r e S t r u c t u r e o f P r o p o s e d R o u t e ··········································································· 8 9 T a b l e 6 1 . M a i n R o a d s i n Y a n g o n D i s t r i c t ·················································································· 9 1 T a b l e 6 2 . Y a n g o n D i s t r i c t ’ s P u b l i c B u s i n O p e r a t i o n ····························································· 9 2 T a b l e 6 3 . R a i l w a y F a c i l i t y S t a t u s i n M y a n m a r ········································································· 9 2 T a b l e 6 4 . M i d & L o n g - t e r m R a i l r o a d P r o j e c t s i n M y a n m a r ··············································· 9 3 T a b l e 6 5 . R a i l w a y N e t w o r k i n Y a n g o n ······················································································· 9 4 T a b l e 6 6 . T r a i n T i m e T a b l e b y R o l l i n g S t o c k T y p e ······························································· 9 4 T a b l e 6 7 . P a s s e n g e r T r a i n C a p a c i t y i n Y a n g o n ······································································· 9 5 T a b l e 6 8 . M R T / L R T S y s t e m C o m p a r i s o n ···················································································· 9 8 T a b l e 6 9 . C o m p a r i s o n o f M R T / L R T D e s i g n C r i t e r i a ······························································· 9 8
v Contents 2016/17 KSP Policy Consultation Ⅲ
T a b l e 7 0 . T y p e o f S t a t i o n & W i d t h ·························································································· 1 0 1 T a b l e 7 1 . R e v i e w o f B r i d g e T y p e S t r u c t u r e ··········································································· 1 0 2 T a b l e 7 2 . B r i d g e D e c k b y S e c t i o n ····························································································· 1 03 T a b l e 7 3 . B r i d g e P i e r a n d F o u n d a t i o n ····················································································· 1 0 4 Table 74. Branch Line Bridge Section Temporary Construction ······································ 1 0 4 T a b l e 7 5 . P l a t f o r m T y p e s ············································································································· 1 0 6 T a b l e 7 6 . ( D i r e c t / I n d i r e c t C o n s t r u c t i o n C o s t ) ······································································ 1 2 2 T a b l e 7 7 . C o m p a r i s o n o f M R T / L R T C o s t ················································································· 1 2 4 T a b l e 7 8 . E s t i m a t e o f P r o j e c t C o s t f o r M R T S y s t e m ·························································· 1 2 5 T a b l e 7 9 . E s t i m a t e o f P r o j e c t C o s t f o r L R T S y s t e m ··························································· 1 2 6 T a b l e 8 0 . C o s t E s t i m a t e D e t a i l s f o r M R T S y s t e m ································································ 1 2 9 T a b l e 8 1 . C o s t E s t i m a t e D e t a i l s f o r L R T S y s t e m ································································· 1 3 1 T a b l e 8 2 . C o m p a r i s o n o f M R T / L R T C o s t ················································································· 1 3 2 T a b l e 8 3 . R e v i e w o f C o n s t r u c t i o n S t a g e s ··············································································· 1 3 3 T a b l e 8 4 . P r e d i c t e d E C A i n t e r e s t r a t e ······················································································ 1 3 6 T a b l e 8 5 . F I ’ s i n v e s t m e n t t e n d e n c y ·························································································· 1 3 9 T a b l e 8 6 . E s t i m a t e d c o n d t i o n f o r p r o c u r e m e n t ····································································· 1 4 1 Table 87. Responsibility Area of Private Business Partner due to Business Model ··142 Table 88. Features and Pros/Cons by Different Business Models ·································· 1 4 2
vi List of Figures
F i g u r e 1 . S t r a t e g i c D i r e c t i o n o f t h e P r o j e c t ·············································································· 3 F i g u r e 2 . S t a t u s o f R a i l w a y R o u t e i n M y a n m a r ······································································· 7 Figure 3. Development of track km over 2004-2012 in Myanmar ·································· 9 F i g u r e 4 . N u m b e r o f l o c o m o t i v e s ·······························································································10 F i g u r e 5 . T o t a l N u m b e r o f P a s s e n g e r C o a c h e s ····································································· 1 0 F i g u r e 6 . Y a n g o n ’ s b u s o p e r a t i o n s t a t u s i n M y a n m a r ························································ 1 2 Figure 7. Yangon Region’s Automobile Registration Status ··············································· 1 4 Figure 8. Number of Traffic Accidents per 10,000 vehicles ·············································· 1 4 Figure 9. Travel Speed Status by Different Transportation Modes ································ 1 5 F i g u r e 1 0 . I n c r e a s e i n T r a n s p o r t a t i o n C o s t ··············································································· 1 5 Figure 11. Yangon Circular Railway Modernization Project ················································· 1 7 Figure 12. Seoul Metropolitan Government’s Transportation Vision ································· 3 3 F i g u r e 1 3 . B a s i c D i r e c t i o n o f S e o u l M e t r o ’ s P o l i c y ································································ 3 4 Figure 14. Seoul’s Mass Transportation System in the Future·········································· 3 6 F i g u r e 1 5 . T a r g e t a n d I m p l e m e n t a t i o n M e a s u r e s ··································································· 3 7 Figure 16. Seoul’s Mass Transportation System in the Future·········································· 3 8 Figure 17. Regions Disadvantageous to Metro Service in Seoul ······································· 3 9 F i g u r e 1 8 . B T O & B T L C o m p a r i s o n ···························································································· 4 4 F i g u r e 1 9 . G u i d e l i n e a n d P r o c e d u r e o f A p p l i c a t i o n ································································ 5 2 Figure 20. Classification of Direct/Indirect Influence Area ··················································· 5 3 F i g u r e 2 1 . E D C F A p p l i c a t i o n P r o c e d u r e D i a g r a m ···································································· 6 8 Figure 22. Conceptual Scheme of Direct/Indirect Influence Area ······································ 7 5 F i g u r e 2 3 . S e o u l M e t r o C o n s o r t i u m ’ s P r o p o s e d R o u t e M a p ··············································· 7 9 F i g u r e 2 4 . V e h i c l e C o m p o s i t i o n R a t i o ( 2 0 1 1 ) ··········································································· 8 0 F i g u r e 2 5 . Y C R R o u t e M a p ············································································································· 8 7 F i g u r e 2 6 . Y a n g o n B R T r o u t e m a p ······························································································ 8 7 F i g u r e 2 7 . Y a n g o n B R T ···················································································································· 8 7 F i g u r e 2 8 . G e n e r a l B u s i n Y a n g o n ·······························································································88 F i g u r e 2 9 . Y a n g o n A d m i n i s t r a t i v e D i s t r i c t s ··············································································· 9 0 F i g u r e 3 0 . Y C D C R a i l w a y ················································································································· 9 5 Figure 31. Transportation Capacity & Construction Cost of Railro a d S y s t e m ·············· 9 6 Figure 32. Comparison of Earthwork (earthwork) Cross-Sections ···································· 9 9 F i g u r e 3 3 . C o m p a r i s o n o f B r i d g e C r o s s S e c t i o n ··································································· 1 0 0 F i g u r e 3 4 . C o m p a r i s o n o f S t a t i o n ······························································································ 100 F i g u r e 3 5 . C o n c r e t e T r a c k ············································································································ 1 0 7
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F i g u r e 3 6 . R a i l C r o s s S e c t i o n ······································································································ 1 0 7 F i g u r e 3 7 . C o n f i g u r a t i o n o f T r a c t i o n P o w e r S u b s t a t i o n ····················································· 1 1 1 F i g u r e 3 8 . G e n e r a l C o n f i g u r a t i o n o f T w o S u b s t a t i o n s ························································ 1 1 2 F i g u r e 3 9 . G l o b a l D r o n e M a r k e t S i z e T r e n d ············································································ 1 1 6 Figure 40. Drone photographing site and Yangon line route with drone s u r v e y m a r k ················································································································· 1 1 7 F i g u r e 4 1 . D J I P h a n t o m 3 A d v a n c e d ························································································ 1 1 8 Figure 42. Aerial Photographs Obtained from DJI Phantom 3 Advanc e d D r o n e ······· 1 1 8 F i g u r e 4 3 . D r o n e O p e r a t o r ··········································································································· 1 1 9 F i g u r e 4 4 . G r o u n d C o n t r o l P o i n t ································································································119 Figure 45. Analysis of drone survey result (Hledan Junction) ········································· 1 1 9 Figure 46. Drone survey result (8 Mile Junction) analysis ··············································· 1 2 0 Figure 47. Drone survey result (AD Junction) analysis ······················································ 1 2 1 Figure 48. Proposed Route of Mingalardon AirportHanthawaddy Air p o r t ················· 1 2 8 F i g u r e 4 9 . P E F S t r u c t u r e ··············································································································· 1 4 0
viii List of Abbreviations
EDCF Economic Development Cooperation Fund ADB Asian Development Bank MORT Ministry of Rail Transport MR Myanmar Railways NR National Railway YCDC Yangon City Development Committee YCL Yangon Circular Line UPD Urban Planning Division YDBCC Yangon Division Bus Control Committee CBC Central Business District GDP Gross Domestic Product JICA Japan International Cooperation Agency MRT Mass Rapid Transit LRT Light Rapid Transit BTO Build Transfer Operate BTL Build Transfer Lease BRT Bus Rapid Transit AGT Automated Guided Transit LIM Linear Induction Motor ODA Official Development Assistance MIC Myanmar Investment Commision PPP Public Private Partnership CIF Cost Insurance Freight WB World Bank IDA International Development Association IBRD International Bank for Reconstruction and Development KOICA Korea International Cooperation Agency SPC Special Purpose Company ECA Economic Cooperation Administration GRDP Gross Regional Domestic Product DCA Dept. of Civil Aviation ATS Automatic Train Stop SCADA Supervisory Control And Data Acquisition UPS Uninterruptible Power Supply PLC Programmable Logic Controller MNO Mobile Network Operators LAN Local Area Network WAN Wide Area Network EMI Electro-Magnetic Interference OCC Operation Controlling Center PSTN Public Switched Telephone Network CCTV Closed circuit television EMU Electric Multiple Unit DMU Diesel Multiple Unit
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Summary
This project deducts improvement direction of railway transportation system in Greater Yangon, which currently has poor transportation through successful experience and knowledge sharing of Korea’s metro construction process. Moreover, the objective is to deduct a business progress roadmap along with the institutional proposal and technical, financial solution of Mingalardon-Hanthawaddy Airport Rail Link. Also, implement a pre-feasibility study on Yangon~Mingalardon MRT/LRT construction.
In this study report, the proposed route to Yangon-Mingalardon Airport Rail Link starts from the underground of Yangon Central Station and moves toward the north along Gyo Phyu St. to the south of U Hantung Bo Road. And the route travels west along Ahlon Road then north along Pyay Road. The proposed route is planned as a bridge coming out to aboveground from the Hanthawaddy roundabout, which is near MRTV Yangon. It will go back to the underground section at the northwest end of Inya Lake. Also, it will pass through the ground on Yangon Airport Road, which is located in front of the airport and pass through the airport as the bridge structure.
After passing through in front of Yangon International Airport as a bridge section and crossing east section of Yangon Circular Line, the route is planned as earthwork roadbed. The candidate location for depot was selected to be the pond north of Khayae Pin Road, passing through Wai Bar Gi Station and moving north parallel to the existing Yangon circular line.
The proposed route for the Mingalardon-Hanthawaddy Airport Rail Link begins at the depot of the Yangon-Mingalardon International Airport Rail Link, and passes through Mingalardon Industrial district, via Hlegu, to Hanthawaddy International Airport north of Bago City.
Eighty percent of the proposed route was planned as a ground roadbed. Also, river and road passage sections were planned as bridges and some mountainous region as tunnels. The candidate location for depot was selected on the northern site, moving north parallel with Hanthawaddy International Airport. x Summary
Also, in this report, due to the short available time to investigate such as route alignment, surveying, and obstacles survey, etc. the drone survey was conducted. As Seoul Metro Consortium performed drone survey for new railway route alignment in Yangon city, Seoul Metro Consortium could collect accurate survey data of wide route area compared to traditional survey method within short time. In the future, there is a need to develop digital elevation model into a3D model, which is anticipated to provide more accurate geographical information.
For financing matter, the Myanmar Railway (MR) is seeking to finance the project through funds from overseas loans and public aid, but it is difficult to raise funds. A plan should be developed through financing means such as securing EDCF funds, ECA or development finance funds in the civil works, E & M systems and rolling stock supply sectors. Financing includes additional ODA through the MDB and private financing through public-private partnership (PPP) projects.
Since the Myanmar government has yet to officially form an additional financing plan through the MDB, it is uncertain whether it will be financed through the MDB. The alternative is private financing through the PPP project. In this case, if that same section is considered as the future development area with low demand compared to investment cost, high risk of demand change, and considering the current situation where it requires a massive loan, Availability Payment or AP structure, which has high investment safety is more appropriate. However, because the Myanmar government does not have an AP structure with a PPP method, it is necessary to educate government officials along with various system maintenance.
Because of the analysis of the total cost of the MRT system of Yangon-Mingalardon Airport link railway section, it is estimated that the direct construction cost is ￦79,651 million/km and the total project cost is ￦99,195 million/km. The LRT system has a direct construction cost of ￦41,865 million/km and the total project cost of ￦52,496 million/km.
Moreover, the total cost of the MRT system is estimated to be ￦29,492 million/km and the total project cost is ￦37,898 million/km. The LRT system has a direct construction cost of ￦24,722 million/km, a total construction cost of ￦31,304 million/km.
The optimal business structure is unlikely to be successful through the EPC-F system, which is being implemented as a financial project, or the PPP-BOT system, which has a heavy responsibility to a private company. The PPP-AP method, which can establish a stable operation plan and secure advanced know-how for maintenance, is the most effective from the perspective of the provincial government of the client. It considers the advantages and disadvantages of the business model and the feasibility of the project the PPP-AP method is considered to be the best business structure to apply to this project.
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As a result of a preliminary feasibility study on Yangon-Mingalardon airport and Mingalardon- Hanthawaddy airport route in the basic plan of Myanmar Yangon railway modernization project, it is considered that it is advantageous to integrate the route from Mingalardon Airport to Hanthawaddy Airport as proposed.
As the phase-I to push forward the project, Yangon-Mingalardon Airport area section will be pushed forward first, and then provide a step-by-step measure to push forward the Mingalardon Airport to Hanthawaddy Airport section, which is a phase-II section, depending on local conditions such as the opening of a new airport in the future.
During step-by-step project promotion, phase-I section, which is from Yangon to Mingalardon airport will pass through downtown and it is short distance route. Also, the construction cost for the structure is low, has excellent city aesthetics. We recommend LRT system considering easiness of access to downtown from the airport.
For the Phase-II section, which is from Mingalardon airport to Hanthawaddy airport, is a branch line that connects Yangon and Bago city. It is possible to construct with a roadbed earthwork. The construction cost is economical and considering relatively massive transport volume, we recommend introducing MRT system. Moreover, the MRT system on the outskirts route and the urban LRT route should be linked to each other to increase the demand forecast in the future.
xii Ⅰ. Project Summary
Ⅰ. Project Summary
1. Project Objectives and Scope
1.1. Objectives
The railway system in Yangon, Myanmar lags behind in terms of the facility as it employs the narrow gauge rail constructed during the Colonial Period. Thus, the Myanmar government & Korean Ministry of Strategy and Finance agreed upon the strategic policy proposal & conducting a pre-feasibility study to establish the LRT/MRT system in a specific region in Yangon, Myanmar (Mingalardon Airport precinct, Hanthawaddy Airport precinct) through sharing Korea’s railway system modernization experience with KSP-Policy Consulting III.
The aim of the project is to share successful experience and knowledge emerged from the urban rail transit projects in Korea, derive the improvement direction of the out-of-date railway system in the Greater Yangon region through a technical training for building the capacity of railway staff, and draw out a policy proposal, technical and financial alternatives and project roadmap to a pre-feasibility study on the Yangon ~ Mingalardon Airport LRT/MRT construction project as well as the Yangon ~ Hanthawaddy Airport railway construction project.
1.2. Scope of project
The scope of this KSP project is listed in
.
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Table 1 Scope of the Project
Analysis on Current Status of Myanmar (Greater Yangon) & Korea (Seoul) Activity 1 ∙ Myanmar (Yangon) region status, development/traffic planning & system ∙ Korea: Surveying cities that introduced LRT (focusing on Seoul
Case Study on the Best Practices of Korea Activity 2 ∙ System aspect: Guidelines for LRT project ∙ Case study: Seoul's MRT/LRT construction/planning experience & implications
Pre-Feasibility Study: Yangon~Mingalardon Airport Rail Link LRT/MRT Activity 3 ∙ System comparison: Technical/economic/financial feasibility study ∙ Cost-benefit analysis by alternatives, deduct risk factors & propose project plan
Policy proposal: Yangon~Hanthawaddy Airport Rail Link construction plan
Activity 4 ∙ Improvement of current railway system & propose a project action plan ∙ Technical factors such as construction methods, operation control system, etc. & policy proposal
Capacity Building Workshop Activity 5 ∙ Establishment of an agenda through agreement with the Myanmar Government ∙ Invitation of LRT/MRT related institution & experts, and site visit, etc.
Dissemination Seminar & Submission of Final Report Activity 6 ∙ Report on analysis and training result, policy proposal for project action plan ∙ Link with feasible follow-up projects
2 Ⅰ. Project Summary
2. Strategic Direction of the Project and Highlights
2.1. Strategic Direction
Figure 1 Strategic Direction of the Project
2.2. Highlights
1) : Analysis on Current Status of Myanmar (Greater Yangon) & Korea (Seoul)
Overall data survey of Yangon, Myanmar for the traffic infrastructure such as city status, urban development plan, traffic status (modal split, public transportation modal split, traffic volume, vehicle consist), rail infrastructure status (rail network status), public transportation operation data, and public transportation relevant organization, etc.
Seoul Metro Consortium will examine the current status of Seoul, the traffic situation, the status of the urban railway (LRT, MRT), and the 10-year plan of Seoul Metro, and compare with the current state of traffic infrastructure in Myanmar.
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2) : Case Study on the Best Practices of Korea
Investigate and analyze the experiences of railway development in Korea, in particular, the current status and implications of LRT & MRT development. Moreover, the evaluation process of LRT and MRT system selection
∙ Development case study: Construction of Seoul Metro line 1 through 8, 1stPhase construction of Metro line 9 and research on 10-year plan of Seoul Metro ∙ Research financing plan for each case (financial project, private investment project), risk during project progress and avoidance plan, etc. ∙ Research on the Korea's applicable laws for LRT/MRT project implementation: Pre-F/S standard guidelines, standard guidelines for LRT private investment and adoption of anew transportation system
3) : Pre-Feasibility study: Yangon~Mingalardon Airport Rail Link
Analysis of demand and various social/economic uses and geographic survey for the Yangon~Mingalardon Airport link railway in order to compare LRT and MRT through an estimate of the required project cost and concept design and build an optimized project model.
Analyze risk factors during the project plan and project implementation through an analysis of policy, technical and economic feasibility and financial feasibility.
Based on the result emerged from and the current status of the railway, the application of an LRT or MRT system to the same section will be compared and reviewed to derive an optimized railway system and railway infrastructure improvement plan.(Policy proposal based on Myanmar local legal regulations)
Seoul Metro Consortium will propose an optimal strategy in terms of technical construction method and operation control system for analysis of demand and various social/economic uses, geographic survey, financing plan, project implementation plan and existing railway upgrade for the Mingalardon~Hanthawaddy Airport Rail Link construction.
4 Ⅰ. Project Summary
5) : Capacity Building Workshop of Railway Working Level Staff
Seoul Metro Consortium will establish an agenda that conforms to the Myanmar government and railway-related employees, and carry out related training plans, and will invite the Korea's LRT and MRT agencies and experts to provide lecture and field trip to the railway industry.
6) : Dissemination Seminar & Submission of Final Report
Seoul Metro Consortium will report the analyzed research and training result to present a policy proposal for the project implementation plan, and a policy proposal for the Yangon ~ Mingalardon Airport Rail Link and the Yangon ~ Hanthawaddy Airport Rail Link project.
3. Expected Effect
Seoul Metro Consortium will transfer technology and knowledge of the Best Practice for each life cycle of a railway project including plan, construction, operation and management through a case study on the Korea's LRT and MRT development in order to promote the development of the Myanmar railway industry. Along with currently ongoing EDCF aid projects (i.e. Mandalay-Myitkyina railway upgrade and locomotive and passenger car/freight car modernization, etc.), and adding Metro project such as MRT/LRT rail system modernization in Yangon, Myanmar will have anticipation of discovering future link projects covering overall railway industry from rolling stock, system, design/construction to operation management technology, etc.
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Ⅱ. Myanmar (Greater Yangon Region)'s Status & Problems
1. Myanmar's Railroad System Status
1.1. Myanmar's Railroad Organizations
Ministry of Transport and Communication (MOTC) is the Myanmar's highest railroad industry organization and manages the Myanmar's railroad-related policies as a whole. MR (Myanmar Railways) is a railroad facility management organization, and NR and Yangon Circular Rail Line are established as its subsidiaries.
shows the organization chart.
Table 2 Myanmar’s Relevant Railway Authorities
- Ministry of Transport and Communicatons (MOTC) Planning of railway project, management ofrelevantregulation,rollingstockapproval,pas senger/freighttransportationmanagement
- Myanmar Railways (MR) Operation of national railway & Yangon circularrailway
Source: Myanma Railways
1.2. Myanmar's Railroad Status and Problems
The total length of Myanmar's railroad is 5,844km as of 2012 and 11 lines are in operation . Since the narrow-gauge railroad in the past colonies was left as it was, getting
6 Ⅱ. Myanmar(Greater Yangon Region)'s Status & Problems
sufficient speed is limited. Additionally, due to the severe deterioration of rolling stock and infrastructure, such as a vehicle, track, sleeper and signalling system, problems with the safe operation are on the rise.
Figure 2 Status of Railway Route in Myanma
Source: KOTRA Yangon Office, 2015
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and
show the main railway routes by region and railway status of Myanmar.
Table 3 Main Routes by Region in Myanmar
Southern Myanmar Northern Myanmar Yangon Circular Line
Yangon-Mandalay Mandalay-Monywa-Pakkoku 39 Stations in YCL Yangon-Mawlamyaing Mandalay-Thazi-Shwe Connecting downtown Yangon-Bagan Mandalay-Lashio Yangon, satellite city, Yangon-Aunglan-Bagan Nyaung-Loikaw and suburbs Yangon-Pyay Mandalay-Myitkyina (Total length: 46 km) Mawlamyaing-Dawei
Source: Myanma Railways
Table 4 Regional Railway Status in Myanma
Number of Railroad length Region Area (mile2) stations (Miles)
Ayeyarwaddy Region 13,567 53 199 Bago Region 15,214 116 461 Chin State 13,907 - - Kachin State 34,379 33 122 Karen State 11,731 6 16 Kayah State 4,538 3 9 Magway Region 7,305 162 705 Mandalay Region 14,295 183 657 Mon State 4,848 59 221 Rakhaing State 14,200 20 54 Sagaing Region 36,535 89 443 Shan State 60,155 103 502 Taninthayi Region 16,735 25 107 Yangon Region 3,937 74 158 Total 251,346 926 3,652
Source: Myanma Railways
8 Ⅱ. Myanmar(Greater Yangon Region)'s Status & Problems
Although the track extension has been gradually increasing since 2004, the double track rate (5.7%) is higher than the new line growth rate (2.3%). However, it does not satisfy transportation demand due to a slight increase rate. Since low-efficiency transportation problems caused by the limited function of the railroad system and the structural limitations of the low profits have been obstacles to economic growth, it is necessary to improve the overall railroad industry in Myanmar.
Figure 3 Development of track km over 2004-2012 in Myanmar
Source: Myanma Railways
and shows Myanmar rolling stock possessions. More than 47% of locomotives were over 30 years old and 32% of passenger cars and 56% of freight cars were over 40 years old. Although maintenance facilities were installed in many places, there are also limitations in maintenance due to the deterioration of equipment and lack of skilled personnel.
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Figure 4 Number of locomotives Figure 5 Total Number of Passenger Coaches
As shown in
, passenger ridership of Myanmar railroad drops significantly from 2010. It takes 5 hours from Yangon to Naypyitaw by road, while it takes more than 9 hours by rail and the ride comfort of the railroad is much lower than that of the road. This is the reason why traveling by road is more preferable.
Table 5 Yearly Passenger Rail Volume (2007~2014)
Category Unit ‘07-’08 ‘08-’09 ‘09-’10 ‘10-’11 ‘11-’12 ‘12-‘13 ‘13-’14
No. Mil. 75.959 73.561 71.602 67.650 64.220 53.817 53.208 passengers
Daily Mil. 0.210 0.200 0.200 0.190 0.180 0.147 0.148 average
Myanmar's freight transport volume was 3 million tons in 1993 and increased to 3.4 million tons after new lines were expanded in 2010. However, it has now been falling significantly since 2010.
10 Ⅱ. Myanmar(Greater Yangon Region)'s Status & Problems
Table 6 Yearly Freight Rail Volume (2007~2014)
Category Unit ‘07-’08 ‘08-’09 ‘09-’10 ‘10-’11 ‘11-’12 ‘12-’13 ‘13-’14
Capacity Million Ton 2.93 2.95 3.33 3.41 3.58 2.84 2.47 Daily 1000 Ton 8.03 8.09 9.12 9.34 9.83 7.78 6.76 average Transported 10 Million 53.54 56.99 65.83 69.78 72.19 60.19 51.50 mile
Source: Myanma Railways
YCL (Yangon Circular Line) has a total length of 45.9km and it circulates outside of Yangon City. It runs 39 stations at an average speed of about 17km/h. Since it was built as a narrow-gauge railroad (1,000 mm track gauge) during the colonial times, its travel speed is low. It cannot be connected to urban areas excluding Yangon city’s central station and certain stations. The YCL fare is also higher than fares of a public bus, minibus, and rickshaw. Accordingly, its usage rate is limited to 7% among Yangon's total transportation modes.
MR is carrying out JICA-funded improvement project to increase the travel speed and secure the train operation safety through the improvement of YCL's deteriorated infrastructure facilities and track bed facilities.
Table 7 Yangon Circular Line Status
∙ Impossible to increase the travel speed unless deteriorated trackbeds and tracks are completely replaced. ∙ Low travel speed - Total Length: 45.9km, 39 stations, operating Hours: 3hours - average travel speed 17km/h ∙ Inconvenient line: impossible to enter the downtown of Yangon. alternative modes: taxis & rickshaws ∙ Many delays & no guarantee of operational punctuality ∙ Fare : -MMK 200(under 15miles) - MMK 400(above miles) ∙ Usage rate among total transportation modes: 3%
Source: Myanma Railways
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1.3. Traffic Status and Problems in Greater Yangon Region
1) Traffic Status
Yangon's transportation modal share surveyed by Yangon's Urban Planning Division is 844,000 buses per day, which is 84%. And YCL is 130,000 passengers per day, which is about 3%. Meanwhile, passenger car including Taxi is 11% at end of 2008.
Total 400 routes, including public buses and minibuses operated by the YDBCC (Yangon Division Bus Control Committee), connects Yangon and neighboring areas and approximately 8,000 vehicles are in operation with more than 5,800 times a day. However, due to the deteriorated vehicles, vehicle usage rate is only about 88% and service levels are poor with only a few air-conditioned buses.
Figure 6 Yangon’sbus operation status in Myanmar
∙ YDBCC(Yangon Division Bus Control Committee) : - 134 lines, 2,530 buses, 4,453 drivers, 6,371 mechanics
Source: Yangon Urban Planning Division
The number of private cars in Myanmar is low due to low GDP and government restrictions on foreign car imports.
shows the car registration status per population in Myanmar.
12 Ⅱ. Myanmar(Greater Yangon Region)'s Status & Problems
Table 8 Number of Vehicle Registration per Population in Myanmar (2010)
Total Vehicle Motorcycle Motorcycle Vehicle/1000 No. State/Region Registered Registered Portion population
1 Mandalay Region 626,202 549,338 87.73% 75.0
2 Shan State 346,073 305,894 88.40% 61.2
3 Kachin State 80,953 70,016 86.50% 51.8
4 Kayah State 16,711 14,752 88.30% 48.0
5 Taninthayi Region 70,323 64,787 92.10% 41.6
6 Sagaing Region 252,986 237,225 93.80% 38.9
7 Yangon Region 253,904 50,401 19.80% 36.5
8 Mon State 103,119 92,586 89.80% 33.2
Myanmar Total 2,291,675 1,877,596 81.9% 38.49
Source: Myanmar Statistical Yearbook, 2010
As shown in
, as of 2010, the motorized rate per 1,000 people in the Yangon region is relatively lower than other major provinces/regions because of few motorbikes. The share of motorbikes in Yangon is very low, about 20%, compared to about 90% of other states and regions.
This is possible since the use of motorbikes is prohibited in the Yangon City Development Committee (YCDC) area.
As a result, most of the suburban residents have no choice but to use buses or YCL when they want to go to the city center.
2) Problems
The result of analyzing traffic trip characteristics of Yangon, which is only 22% of the total area of Yangon District, shows that 76% of the total district population is moving, 23% of which moves to the Central Business District (CBD), and the remaining 33% moves inside the Yangon. Considering the above-mentioned traffic trip characteristics, the problems of public transportation in the Yangon metropolitan area are as follows.
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① Traffic congestion & traffic accident rate increase due to saturation of road capacity
Traffic congestion due to capacity saturation of road facilities caused by the explosive increase of private vehicles according to the unrestricted permission of vehicle imports since 2014.
Figure 7 Yangon Region’s Automobile Registration Status
Source: Road Transport Administration Department, As of July 4, 2013
② Increase in traffic accidents due to insufficient improvements in road conditions and signaling systems that do not satisfy the vehicle growth rate.
Figure 8 Number of Traffic Accidents per 10,000 vehicles
Source: PROJECT FOR COMPREHENSIVE URBAN TRANSPORT PLAN OF THE GREATER YANGON(YUTRA), 2014. JICA
14 Ⅱ. Myanmar(Greater Yangon Region)'s Status & Problems
③ Decrease in travel speed due to saturation of road facilities and vehicle increase on the road.
Figure 9 Travel Speed Status by Different Transportation Modes
Source: Myanma Railways
④ Increased transportation costs due to poor public transportation
Increased transportation costs by using multiple transfers (circular line→bus→Tri-Shaw) or taxis, which caused by poor transportation systems and the access control to urban areas for two-wheeled vehicles
Figure 10 Increase in Transportation Cost
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1.4 Myanmar & Yangon Metropolitan Area Railroad Construction Plan
1) Myanmar Mid-Term &Long-Term Railroad Construction Plan
Myanmar's MORT is pushing forward with 13 mid-term projects and 8 long-term projects as shown in
to improve railroad facilities in Myanmar.
Table 9 Myanmar’s Mid&Long-Term Railroad Construction Project Status
Mid-term Long-term
∙ Installation of central operation management ∙ Yangon-Pyay railroad improvement (161 miles) system and safety equipment ∙ New Bago-Khayan-Thonkwa railroad (67 miles) ∙ Line improvement in Yangon-Mandalay ∙ Tamu-Kalay-Segyi-Monywa-Mandalay line(loan ∙ Yangon circular train reconstruction from India) ∙ Line improvement in Bago-Dawei ∙ Yangon elevated railroad train system (signaling, ∙ Yangon train station development telecommunication system, electric line installation ∙ New line in Dawei-Myeik (130 miles) & vehiclepurchase) ∙ New line in Namsn-Kyaing Tong (226 miles) ∙ Mandalay elevated railroad train system (signaling, ∙ New line in Minbu-Ann-Sittwe (257 miles) communication system, electricline installation & ∙ Pyay-Shwedagar-Toungoo-Kyetaw-Nay Pyi Taw vehicle purchase) line (120miles) ∙ Yangon electric train system (signaling, ∙ Signalling and telecommunication system communication system, electricline installation & improvement ofMandalay-Myitkynaline vehicle purchase) ∙ OFC system installation of Bago-Mawlamyine line ∙ Mandalay electric train system (signaling, a ∙ CBI system installation at Latbadan station & Pyay communication system, electric line installation & station vehicle purchase) ∙ OFC system installation of Pakokku-Kalay line ∙ New Yangon Ywathaghy railroad station
Source: Myanma Railways
2) YCL improvement and Extension Plan
MR (Myanma Railways) is currently executing the project with the aid of JICA for YCL improvement
∙ Aims to increase the usage rate from 3% of total public transport to 30% by 2040.
16 Ⅱ. Myanmar(Greater Yangon Region)'s Status & Problems
∙ Agrees that system works are carried out by Japan and civil engineering works are carried out by Myanmar construction companies with the aid of JICA. ∙ In the future plan to extend to Tilawa Special Economic Zone (Section 7). See .
Source: pre-feasibility study on the Yangon circular railway modernization project final report, 2015, JICA
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1.5. Problems with Railroad Construction Project in Myanmar (Yangon)
1) Problems
New railways were recently built in harsh outer terrains, which required relatively high cost, however, Myanmar government borrowed money from China and India to finance these projects, so government's continued operating deficits have become a financial burden.
In the outer areas, economic incomes are so low that it is unlikely to generate profits from railroad operations. Even some overlapping Investments in road and railroad construction have occurred in certain areas.
MR, which operates railroads, has suffered from accumulated deficits for many years. It has structural limitations of calculating revenues by line with the financial system lagging behind.
Myanmar is not well equipped with railroad regulations and design standards. Therefore, it is urgent to set standards for the country according to regulations and standards of donor countries. The current track gauge is narrow gauge, and it is also urgent to establish standards for standard track gauge installation.
The P.P.P. law in the railroad sector has recently been established, but due to the lack of detail, it is imperative to improve the relevant laws for additional private financing.
It is necessary to cooperate closely with the central government and local authorities on the railroad plan linked with high-level plans such as national planning and urban planning. Since the railroad system constructed through loans and aids is in continuous operational deficit, mid-term to long-term plans and detailed plans for operation management as well as mid-term to long-term plans for construction are needed.
It is necessary to secure power sources for MRT / LRT operation. The Myanmar hydroelectric power plants are mainly located in the northeast, where power loss rate due to outdated transmission and distribution system is close to 30%. Yangon, the largest city in the south,
18 Ⅱ. Myanmar(Greater Yangon Region)'s Status & Problems
also has an absolute power shortage. To complement this, a 500kV transmission system linking the northern (hydro power) and southern (consumer) areas are under construction. However, auxiliary energy sources are needed due to dry season and rainfall variability.
shows the status of a hydropower dam in Myanmar.
Table 10 Hydropower Plant Status in Myanmar
Annual Capacity Category generation (MW) (GWh)
Operational 1,816 9,606 stage By stage Planning stage 305 1,600
Electricity, gas, -4.8 -11.5 5.1 -2.0 -4.3 -9.1 -2.9 steam and water
Construction -1.9 -5.3 -8.1 -6.3 3.2 3.0 4.4
Service 1.3 3.1 3.4 2.1 1.7 2.4 3.6
2. Traffic Status of Seoul
and
show the status of public buses currently in operation in Seoul as of 2015, respectively.
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Table 15 Public Bus Routes in Seoul as of 2015
Number of routes and buses
Arterial bus Feeder bus Inter-city bus Circular bus Night bus Total (Blue) (Green) (Red) (Yellow) (N)
No. of No. of No. of No. of No. of No. of No. of No. of No. of No. of No. of No. of route bus route bus route bus route bus route bus route bus
355 7,482 122 3,698 211 3,474 11 249 3 14 8 47
Table 16 Shuttle Buses in Seoul as of 2015
Number of bus routes Number of buses
238 1,497
shows the urban railway lines of Seoul as of 2015.
Table 17 Seoul Metro Routes in Operation as of 2015
Ridership (thousand) Operating lines Mileage No. of Category and sections (km) stations Annual total Daily ridership average
Total 9 lines 331.6 307 2,640,527 7,234
Seoul Metro (Line 1~4) 4 lines 137.9 120 1,514,872 4,150
SMRT (Line 5~8) 4 lines 162.2 157 969,003 2,655
Gaehwa~Sports Seoul Metro 9 31.5 30 156,652 429 Complex station
22 Ⅳ. Case Study on Seoul Urban Railway Transit Construction and Financing
Ⅳ. Case Study on Seoul Urban Railway Transit Construction and Financing
1. The Phase I of Metro construction (Lines 1~4)
1.1. Metro Line 1 Construction
The Jongno underground section was the most critical section along the Seoul route in the master plan, which was planned to connect with Seoul station and Cheongryangni station as well as the existing railroad to be electrified at the same time in order to cut down travel time to an hour within a 45-km radius of the Seoul metropolitan area and serve the east-west axis in the downtown and the south-north axis in the metropolitan area.
Table 18 Seoul Metro Line 1
Category Route Length
Electrified existing ∙ Gyeongin Line: Seoul station ~ Incheon (38.9km) line in the Seoul ∙ Gyeongbu Line: Seoul station ~ Suwon(41.5km) 98.5km metropolitan area ∙ Gyeongwon Line: Yongsan ~ Cheongryangni ~ Seongbuk(18.2km)
∙ Mainline: Seoul station ~ Taepyeongro~Jongno ~ Dongdaemun ~ Line 1 Sinseoldong ~ Cheongryangni (9.5km) 10.3 km (Jongno Line) ∙ Car inspection line: part of Sinseoldong ~ Gunjadong (0.77km)
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1.2. Metro Line 2 Construction
1) Project Summary
Gangnam (Southern district) development plan was established in order to constrain the expansion of Gangbuk (Northern district) area in order to develop the 3-core region for dispersing the population and construction of a 48km-long Line 2 which was aimed at linking the northern part to southern part of Seoul started on Mar 9, 1978 and was completed on May 22, 1984 for revenue operation.
∙ Circular line: 48.8km, - Station: 43(10 at ground level, 33 at underground level)
∙ Lead line to depot: 5.4km, 3 stations, Depot: 180,000㎡
2) Design & Construction
Detailed design for civil work includes an 8,828km-long alignment with 43 stations that includes 32 open box structure station with total design length was 6.56km, 1 tunnel structure station with total length 205m and 10 elevated structure stations with total length 2.06km.
Of the total mainline design length 40.002km, open-cut and U-Type structure was 23.7km and the tunnel was 4.401km and overpass or bridge was 11.857km.
Alongside metro construction, efficient traffic management was planned through investment in the road improvement project
1.3. Metro Lines 3 & 4 Construction
1) Project Summary
Considering the change of urban environment and urban development plan, Metro Lines 3 & 4 were planned to run in X-shape across the downtown. Metro Line 3 was planned to start from the station outskirt in the northwest of Seoul and arrive at the station in the southeast of Seoul with the total length of 34.2km and given the ridership and surrounding environment, a 28.9km-long Phase-I was determined to start first.
Metro Line 4 was planned to start from the station in the northeast of Seoul near the foot of a mountain and arrive at Gwacheon in the southwest of Seoul with the total length of 37.5km
24 Ⅳ. Case Study on Seoul Urban Railway Transit Construction and Financing
and similarly, Line 3, a 30.3km-long Phase-I from Sangye-dong to Sadang where Metro Line 2 is linked was determined to construct first.
2) Design & Construction
Civil design work for Metro Lines 3 and 4 was based on a 59.2km-long alignment with 47 stations which includes 38 open box structure stations and thus open-cut was 7.95km including 85m at Dongdaemun station and 4 tunnel stations 0.665km and 5 elevated stations 1.025km.
Out of 49.5km-long mainline, the open cut is 25.93km, tunnel is 16.53km and overpass or bridge are 7.10km.
2. The Phase II of Metro Construction (Lines 5~8)
2.1. Metro Line 5 Construction
1) Project Summary
Metro Line 5 is a west-east link that connects to other lines for transfer to provide the access in all directions inside and outside the downtown. This line starts through the airport and Banghwa district that promotes the housing development in the vicinity and provides the convenience for the passengers to the airport.
The open-cut method accounts for 45.2% or 24.86km of 54.8km in total.
New Australian Tunnel Method (NATM)New Australian Tunnel Method (NATM) was mostly adopted for tunneling construction in consideration of cost and work efficiency and ground solidification was used to secure the safety in consideration of ground condition in line with NATM construction.
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TBM was used for Kkachisan road tunnel, section passing under Ahyundong and Heungin School to secure the safety of the existing structure. Tunnel section accounted for 55.1% or 30.2km of the total 54.8km.
2.2. Metro Line 6 Construction
1) roject Summary
Metro Line 6 passes through the center of the northern part of Seoul and the outskirt running in east- west direction to transfer at various locations in order to enhance the accessibility in all directions and disperse the traffic to the outskirt.
This route was designed to pass through the narrow and poor environment district (Jingwanwoe-dong and Bulgwang-dong), future development area (Sangam housing site), heavy traffic district such as Hapheongro and Daeheungro, commercial area(Itaewon-dong and Shindang-dong),poor traffic environment district (Changshin-dong, Bogwang-dong and Anam-dong), residential district (Sang/Hawolgok-dong)and then housing development area (Shinnae) before arriving at the destination in the outskirts of Seoul which will take 40minutes).
∙ Mainline: Eungam ~ Bonghwasan: 36 km (Eungam loop) ∙ 1 depot: Sinnae depot ∙ Heavy maintenance tracks: Taeneung Line 6 ~ Mokgol, Line 7
2.3. Metro Line 7 Construction
1) Project Summary
Metro Line 7 is a multi-core structure designed to achieve the intelligent disperse that will lead to balanced urban development intended by the urban development plan. It is designed in semilunar shape to link the northeastern part with the southwestern part of Seoul where the traffic was rapidly increased in line with the regional development plan and also link the west with the secondary CBD of the southern part of Seoul by interconnecting with other lines at several locations to provide the residents with easy access.
It has the total length 45.6km and provides the residents in surrounding area (Uijeongbu, Gwangmyeong, Bucheon) with the access to Seoul and contributed to enhancing the
26 Ⅳ. Case Study on Seoul Urban Railway Transit Construction and Financing
connection transport capacity by harmonizing with other radial lines and increased the demand for subway
Metro Line 8 was designed to link Amsa, Cheonho, and Jamsil in Gangdong-gu and Garak and Jangji at Songpa-gu and Seongnam city in order to enhance the accessibility to Cheonho and Jamsil district which serves the secondary CBD or district center for the residents in Seongnam city
The east-west urban railway transit in the south of Han River, linking Incheon International Airport and Gimpo new town is to be built on diverse financial sources including private investment. A 25.5km-long Phase 1 linking Gimpo Airport to Gangnam Cha Hospital was started in 2001 and a 4.5km-long Phase 2 linking Cha Hospital to Sports Complex was started in May 2008 and Phase 2 & 3 are under construction.
4. Case Study on Seoul Urban Railway Transit Financing
4.1. Metro Line 1
1) Overview of Metro Line 1 Financing
Final project cost invested in Seoul Metro Line 1 is ￦33.011 billion (Foreign 9.36 billion, Domestic 23.66 billion).
Details include civil work (including building & track) ￦17.155 billion, electrical work (including signalling/communication) ￦2.337 billion) and project management (including construction interest) ￦4.159 billion
Foreign capital ￦9.36 billion included Japanese loan 11.82billion Yen, material loan 7.2 billion Yen and cash loan 4.62billion Yen which accounted for 39.5% of the total. Repayment is within 15 years after 5-years grace period with interest rate of 4.125% (government's sublease 5%).
shows the detailed financing for Seoul Metro Line 1.
Table 19 Detailed Financing Breakdown of Seoul Metro Line 1
Domestic Bond 3,500 - - 3,500 - capital Loan 6,476 - 3,676 2,678 122
Treasury 300 - - 150 150
Total 23,651 4,468 5,277 10,558 6,348
※ Source: Seoul Metro, 『Seoul Metro Line 1 Construction Book』
28 Ⅳ. Case Study on Seoul Urban Railway Transit Construction and Financing
4.2. Metro Line 2
1) Overview of Metro Line 2 Financing
Total investment cost when Line 2 was completed on Oct-Nov 1984 was estimated to be ￦877.1 billion, which included 90 cars among 402 EMUs for Line 3 & 4.It was estimated that the financial resource was covered by the ￦55.6 billion loan.
The city budget is devoted to the money from the general account while subway bond was mandatory when registering the new car with interest rate of 6% with a 5-year grace period and repayment over 5 years evenly. The sales period covered from 1978 to 1983 (completion date of Metro Line 2).
Table 20 Detailed Financing Breakdown of Seoul Metro Line 2
Source 1978 1979 1980 1981 1982 1983 1984 1985 Total
※ Source: Seoul Metro, 『Seoul Metro Line 2 Construction Book
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Government-owned foreign currency (KFX) was used for the part of equipment and material for Line 2 that had to be purchased abroad, which was repaid over 15 years after a 5-year grace period and the amount was ￦50 billion ($100 million) and the first portion was ￦23 billion ($46 million) at LIBOR+0.5%, and the second portion was￦27billion ($54million) at LIBOR+1.0%. Government subsidy was ￦116.9 billion and ￦58 billion or 50% was financed by government subsidy and remaining ￦58 billion was financed by national investment fund without interest.
shows the details of Seoul Metro Line 2 Financing.
4.3. Metro Lines 3 & 4
1) Overview of Metro Lines 3 & 4 Financing
Total cost spent for Lines 3 & 4 were￦1.4826 trillion which included ￦1.3581 trillion (56%) by domestic bond and ￦420.1 billion (17%) by foreign capital.
shows the details of Seoul Metro Line 3 & 4 financing.
Table 21 Detailed Financing Breakdown of Seoul Metro Lines 3 & 4
※ Source: Seoul Metro, 『Seoul Metro Line 3 & 4 Construction Book
30 Ⅳ. Case Study on Seoul Urban Railway Transit Construction and Financing
4.4. The Phase II of Metro Financing
Phase 2 was implemented in 2 stages, which allowed Seoul to finance stably over a long-term.
The planned project cost was estimated at ￦4.187 trillion, which was increased to ￦8.83trillion in 1994 for reasons of price inflation, increased number of cars and stations, extended route, increased land price, change of construction method and relocation of utilities and thus was increased by ￦4.643 trillion and then was increased again by ￦5.242 trillion to ￦9.429 trillion.
Table 22 Detail Cost Breakdown of Phase II of Metro Financing
Category Amount
Price Inflation ￦2.2517 trillion (Approx. 43%) Increase in number of rolling stock ￦440.0 billion(Approx. 8%) Increase in route / station ￦401.0 billion(Approx. 8%) Increase in investment cost ￦344.0 billion(approx. 7%) Increase in land price ￦251.6 billion(Approx. 5%)
Besides, changes to construction method due to detailed design and site conditions, automation, safety and relocation of obstacles resulted in increased by ￦1.5537trillion or 29%.
4.5. The Phase III of Metro Financing (Line 9 Stage 1)
Liabilities of Seoul Metro and SMRT was significantly increased to ￦4.8 trillion in 1997 from ￦2.2 trillion in 1990 and was again increased to ￦4.85 trillion in 1999. Seoul Metro's debt was increased by 3% annually since 1900 to ￦2.8 trillion in 1997 which was further increased to ￦3.384 trillion in 1999. In the case for SMRT, it is increased from ￦1.8 trillion in 1998 to ￦2.525 trillion in 1999.
Liabilities was excessive for the equity capital and repayment of principal was too excessive for operating revenue (unrealistic fare) and the will to improve the financial standing is low, resulting in a constant increase in liabilities. Thus a drastic measure to improve the management was carried out and the liabilities were separated into operating sector and construction sector. For the construction sector, Seoul Metropolitan Government's effort to work out the measures and change the fare system was stressed.
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As such, Seoul Metropolitan Government started reviewing the feasibility of private investment in Line 9 in December 1999 and as a result, the basic plan for private investment was made public in November 2000. Phase 1 of Line 9 was planned to build the superstructure by a private investor and BTO (Build Transfer Operate) which granted a 30-year operation right was applied and the ownership of the facilities was transferred to Seoul city upon finishing the construction.
shows the total project cost for Seoul Metro 9 Stage 1.
Table 23 Total Project Cost for Seoul Metro 9 Stage 1
Classification 2003 constant price (Unit: ￦100mil) Detailed design 183 Design cost Subtotal 183 Track 585 Building 1,620 Mechanical facilities 2,409 Electrical facilities 1,195 Construction cost Signaling 511 Communication / A F C 745 Inspection 219 Rolling stock (steel) 948 Subtotal 8,232 Construction supervision 125 Design supervision 15 Rolling stock 11 inspection(supervision)
Incidental cost Project management 100 Project feasibility analysis 10 Construction insurance 31 Performance bond 6 Subtotal 298 Test & commissioning 25 Operation facilities cost Subtotal 25 Business reserve 257 Business reserve Subtotal 257 Total project cost Total 8,995
32 Ⅳ. Case Study on Seoul Urban Railway Transit Construction and Financing
5. Basic Plan for Metro Construction after 2015 in Seoul
5.1. Basic Direction of Urban Railway Transit in Seoul
According to the ｢Seoul Metropolitan Government's Transportation Vision 2030｣, 「Convenient living without passenger cars」 has been set as Seoul's transportation vision, and it is aimed at a human-centered transportation, sharing transportation and environment-friendly transportation, as shown in .
Figure 12 Seoul Metropolitan Government’s Transportation Vision
Accordingly, Seoul's vision for the Metro has been set as 「Construction of railway-centered public transportation system」 which corresponds to Seoul's transportation vision, and basic direction of Seoul's urban railway policy was established as follows.
∙ Metro will be built within a 10-minute walk from anywhere in order to build a railway and pedestrian-focused transportation system. ∙ When a 10-minute walk distance is not achievable, the connection between the bus and Metro will be established by providing a connection with the bus network. ∙ A high-speed inter-city railway network linking the major bases in Seoul will be constructed to reinforce a railway link between the bases.
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∙ Inter-city railway and express bus service will be provided to enhance convenient transportation between Seoul and the metropolitan area during rush hours.
Figure 13 Basic Direction of Seoul Metro’s Policy
5.2. Seoul's Goal of Basic Plan for Metros
1) Balanced Urban Development
Balanced urban development was the core in the basic plan of the Metro and the aim is to provide a Metro service within a 10-minute walk distance over the entire area of Seoul without the region out of services.
Accordingly, equal Metro service, as well as balanced urban development, will be secured and granted.
34 Ⅳ. Case Study on Seoul Urban Railway Transit Construction and Financing
2) Efficient Metropolitan/Mainline Transportation System
Railway shall be able to provide the mainline function as well as deal with transportation problems, but a simple demand responsive network is unable to form a railway-centered urban structure and moreover, metropolitan/mainline railway connectivity even among the internal bases is low and competitiveness with passenger cars remains behind in speed.
Accordingly, it is necessary to build a metropolitan/mainline railway network to link the major bases at a high-speed in order to build a railway-centered urban transportation system.
3) Future Oriented Metro Network
This urban railway basic plan proposed a long-term service improvement for Seoul city's urban railway together with a 10-year urban railway construction plan.
After a new railway plan for vulnerable regions, improvement of the service quality by easing the congestion of existing mainline network will be further emphasized.
To that end, it is aimed to enhance the utilization rate of means of public transportation by easing congestion and upgrading the service quality in a way of improving the signal system of the existing mainline.
4) Construction and Operation of Sustainable Metro
7 basic routes were proposed in 2008 Metro basic plan, which, however, was delayed because of the problems with private investment.
As such, in this Metro basic plan, potential conflict with private investment project was reviewed in detail and supplemented to ensure construction and operation of a sustainable metro would be achieved.
5) Seoul's Public Transportation System in the Future
After completing Metro system according to the planned Seoul city's Metro basic plan, public transportation system will
∙ Consist of upper-level services such as Metropolitan/mainline railway network that provides mainline/high-speed/express service among the major bases and lower level
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services such as LRT, bus or new means of transportation that supplement the connection. ∙ Alongside the existing Metro Line 1 through 9 and inter-city railway, metropolitan/mainline connection network would be built. ∙ LRT that will supplement the connection with the existing MRT and extend service to vulnerable regions will be built. ∙ The Bus system, as a supplement measure for the railway, will link the existing line to a new line. ∙ New means of transportation such as tram is a symbolic transit with less transportation capacity than MRT or LRT and was reviewed for introduction in anew town and downtown/Gangnam.
Figure 14 Seoul’s Mass Transportation System in the Future
5.3. Goals and Implementation Plan
The goal, “Balanced urban development” was the core plan aimed to determine a basic plan route focusing on vulnerable regions in order to provide the Metro service anywhere in Seoul.
The goal, “Efficient metropolitan/mainline transportation system" was aimed to propose a metropolitan/main railway network that reinforces the internal connection while performing the existing metropolitan transportation functions.
36 Ⅳ. Case Study on Seoul Urban Railway Transit Construction and Financing
The goal, “Future-oriented Metro network" was aimed to ease congestion during peak hours in order to enhance the Metro service.
The aim of these 3 goals was to propose Seoul's Metro development policy in terms of construction of a new railway network and improvement of a railway service and in addition, "Construction & operation of a sustainable Metro" was set as another goal to review the problems in the past and potential problems with private investment project and identify the supplement measures in implementing a Metro project.
Figure 15 Target and Implementation Measures
“Improvement of the disadvantaged region out of an urban railway service" was the core both in the previous plan and current plan which remained unchanged, and in the current plan, the measure to supplement the existing basic plan routes with the reinforced network would be proposed.
For “Development of the route conforming to an urban spatial structure", the route reinforcing the connection among the bases including 3 cores in Seoul in "Connection among the bases through the Metropolitan/mainline railway" was proposed.
"Review for connecting the metropolitan railway to Seoul" was also included in "Connection among the bases through the Metropolitan/main railway".
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Development of a metropolitan new town connection route", improvement of isolated area in the “Improvement of the disadvantaged region out of a Metro service" plan as well as the route to accommodate traffic from a large development plan such as Wirye new town would be evaluated.
5.4. Balanced Urban Development
1) Regions Disadvantageous to Metro Service
shows regions disadvantageous to metro service in Seoul.
Figure 16 Seoul’s Mass Transportation System in the Future
2) Improvement Measures for Regions Disadvantageous to Metro Service
To improve 5 regions disadvantaged to Metro service, the LRT system with the capacity satisfying the demand of 10,000 persons/day per km would be optimal, instead of a long MRT with higher cost.
The LRT would be constructed at the region disadvantaged to Metro service to provide a transportation service as well as connection to the existing mainline railway network.
38 Ⅳ. Case Study on Seoul Urban Railway Transit Construction and Financing
As a result of comparing the disadvantaged regions and the routes, Seoul LRT Ui-Sinseoul Extension Line, Dongbuk and Myeonmok Line at Northeast 1 & 2 and Seobu Line at Northwest 1 and Mokdong, Silim, and Nangok Line at Southwest 1 are expected to improve the transportation function at regions disadvantaged to Metro service.
Figure 17 Regions Disadvantageous to Metro Service in Seoul
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Ⅴ. Urban Railway Transit Construction Process in Korea
1. Railroad Construction Project Financing
Financing share method for the railroad construction project in Korea is categorized into finance share criteria by railroad type and cost share criteria of beneficiary and owner.
Financial share criteria by railroad type relate to a railroad construction project ordered by the government, and refer to the concessionaire and project cost share ratio according to the railroad type including HSR, conventional railroad, and inter-city railroad, as shown in
.
Table 24 Criteria of Financial Resource Share by Railroad Type
Category Concessionaire Project cost-share ratio Applicable laws ∙Government: 45%, KRNA: 55% ∙Article 20 of Railroad Gyeongbu ∙50% : 50% after 2007 Construction Act ∙Article 20 of Railroad HSR Honam ∙Government: 50%, KRNA: 50% Construction Ac Seoul ∙Article 20 of Railroad ∙Government: 40%, KRNA: 60% metropolitan area Construction Ac Government ∙Article 20 of Railroad Conventional (KRNA) ∙Government: 100% Construction Ac ∙Article 10.2.1 of Special Act on Metropolitan Traffic Inter-city ∙Government: 70%, Local government: 30% Management of Metropolitan Area and Article 13 of its Enforcement Decree Private ∙Government: 24.3%, Private sector: 75.7% (example: ∙Article 53 of Act on Private Private railroad Incheon International Airport railroad) Participation in Infrastructure ∙Chapter 3 of Criteria of Urban Urban Local government ∙Government: 60%, Local government: 40% Railroad Construction and railroad Support
40 Ⅴ. Urban Railway Transit Construction Process in Korea
Cost-share criteria of beneficiary and owner refer to the financing share ratio of a railroad construction project requested by other parties than the government, and it is shown in
.
Table 25 Criteria of Beneficiary & Owner’sCost Share
Concessionaire Share ratio
∙ If other parties than government gain ∙ Determined through agreement between significant profit from a railroad concessionaireandbeneficiary constructionproject
∙ If the railroad in operation is relocated ∙ Total relocation cost to be borne by owner at the request of owner
∙ If a railroad is constructed under the ∙ Compared to construction cost if a railroad is new railroad route at the request of constructed at an economically suitable location, owner the total additional cost is borne by the owner.
∙ Compared to construction cost estimated according to the Investment Article 18.2 Assessment Guideline of「National Transport System Efficiency Act」, 50% ∙ If stations are constructed at a new of the construction cost that does not exceed railroad route at the request of owner income is borne by the government. ∙ The cost for an access road to the station is fully borne by owner
∙ If stations are expanded or remodeled at ∙ The total cost for construction, expansion or the existing railroad route at the request remodeling (including the cost for an access road of owner* to the station) is borne by the owner.
* To be executed only if it is considered economically feasible as a result of evaluating feasibility according to Article 18.2 Investment Assessment Guideline of「National Transport System Efficiency Act」.
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2. Railway Construction Project Process
shows the railway construction process of Korea.
Table 26 Railway Construction Process and the Required Time in Korea
∙ Article 4 of railway construction act (national railway network construction Project Plan plan) - Mid/long-term railway plan, connection system ↓ ∙ Total cost management guideline (MOSF) Pre-feasibility study - Preliminary feasibility study to determine the priority for a large-scale (6 months) public project and efficient budget allocation ↓ ∙ Article 7 of Railroad Construction Act (Basic plan) Basic plan -Work scope, cost, schedule, origin/destination, major route plan, station (1 year) and depot ↓ ∙ Article 80 of National Contract Law Enforcement Decree (bid process for Deliberation of bid a large project) process for a large - Technical Committee deliberation to determine the bid process and project construction method. ↓ Basic design ∙ Article 38-9 of Construction Technology Management Act (Basic design) (2 years) - Type of structure, ground, and soil, construction cost, and detailed design ↓ ∙ Article 38-11 of construction technology management act (Detailed Detailed design design) (2 years) - Document based on basic plan and design for construction which serves as the base for cost estimate ↓ Approval of ∙ Article 9 of Railroad Construction Act (approval of implementation plan) implementation plan - Approval after consultation with authorities concerned (6 months) ↓ Bid & contract for ∙ Article 14 of National Contract Act, Enforcement Decree (bid) construction - Competition method, notice, pre-qualification assessment, contract award (3 months) for implementation ↓ ∙ Article 38-16 of Construction Technology Management Act (completion) Start & completion -Final inspection, warranty period, completion document and maintenance, (5 years) handover/takeover
42 Ⅴ. Urban Railway Transit Construction Process in Korea
3. Process of Urban Railway Transit Construction (Gov’t project)
shows the implementation process of an urban railroad construction that is implemented in the form of a government project.
Table 27 Process of Urban Railway Transit Construction (Gov’t Project)
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4. Process of Urban Railroad Construction (Private Project Case)
Urban railroad construction method in the form of the private project can be categorized into 2 types depending on the characteristics of a target facility and recovery of investment cost as shown in
.
shows the difference between BTO and BTL.
Process of Urban Railway Transit Construction Table 28 (in case of Private Investment)
∙ Collection of cost from the end users ∙ Difficult to collect the cost from the end Facilities (self-supporting) users (service-buying)
Recovery of ∙ Fare from the end users (user charging) ∙ Government subsidy investment cost
∙ Incheon International airport railway ∙ Jeolla Line Iksan-Shinri double track ∙ Shinbundang Line Gangnam-Jeongja ∙ Gyeongjeon Line Hanan-Jinju double track ∙ Shinbundang Jeongja∼Gwanggyo Project ∙ Sosa-Wonsi double track ∙ Shinbundang Line ∙ Bujeon-Masan double track Gwanggyo∼Homaesil ∙ Daegok-Sosa double track ∙ Busan∼Gimhae LRT
Figure 18 BTO & BTL Comparison
44 Ⅴ. Urban Railway Transit Construction Process in Korea
When it comes to the implementation process of an urban railway project that is implemented in the form of private investment, there is a difference between BTO and BTL. BTO method is categorized into government announced type and private initiative type. See
and
.
Table 29 Process of BTO Project Announced by Government
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Table 30 Process of BTO Project Announced by Private Sector
46 Ⅴ. Urban Railway Transit Construction Process in Korea
shows the implementation process of BTL.
Table 31 BTL Project Implementation Process
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Ⅵ. Alternative Selection Standard of LRT System in Korea: Guidelines for New Transportation Mode Selection
1. Background and Objectives of Guidelines
Local government proposes an analysis model available before determining a transportation system and it is aimed to establish a guideline to determine a new transportation system considering the regional environment.
2. Highlights of Guidelines
Comparing and reviewing all potential means of transportation at the time of introducing and operating, instead of conducting a feasibility study on a specific means of transportation.
∙ Comparing and reviewing all potential means of transportation at the time of introducing and operating, instead of conducting a feasibility study on a specific means of transportation. ∙ Comparing and reviewing the population in an influence area.
Selecting a new means of transportation that could satisfy the minimum annual operating cost by operating revenue, and estimating the population at which annual operating cost equals to annual operating revenue.
Selecting a new means of transportation by local government in consideration of construction support and government subsidy that could accommodate the total project cost.
∙ Determining whether operating revenue could accommodate the total project cost and estimating the support by the local government when financial support is needed.
Selecting a new means of transportation that could accommodate traffic demand during peak hours based on the maximum transportation capacity.
48 Ⅵ. Alternative Selection Standard of LRT System in Korea: Guidelines for New Transportation Mode Selection
∙ Estimating the maximum transportation capacity and population in an influence area when ridership is accommodated during peak hours.
Recommendation of a new means of transportation with acceptable financial feasibility and it has the capacity to accommodate the demand.
∙ Reviewing transportation capacity considering ridership at non-peak hours.
3. Details of the Guidelines
3.1. Types of New Transportation Mode
1) BRT (Bus Rapid Transit)
BRT is a transportation system using an express bus with a dedicated lane, convenient transfer system and the priority at the intersection as set out in the Decree of the Ministry of Land, Transport and Maritime Affairs. BRT is a public transportation system with upgraded travel speed, punctuality, and transportation capacity as an urban railway by introducing a railway concept to the bus.
It is evaluated as a system with high transportation capacity through a bus-priority signal system, arrival information system, and transfer terminal.
2) Bimodal Tram
The bimodal tram is a CNG hybrid articulated bus with automated steering using magnetic induction which runs as a bus on road and as a train automatically on track. Automated driving, precision stop and horizontal boarding system for the mobility handicapped which are convenient to accommodate transportation between the bus and the LRT.
Installation within 1~2 years and it is flexible in determining a route since running on a normal road.
3) Street Car (Tram)
Tram is a system running on an embedded track on road. It may share the road with other
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means of transportation depending on the road conditions and run slowly than scheduled speed due to traffic sign at the intersection, and the driver shall be on board to respond to various road conditions.
Tram has a lower transportation capacity and speed than the MRT, but as it uses the road, station, infrastructure and signal security system are simply installed, and as it has a low deck, getting on/off is more convenient for the elderly and handicapped.
4) Rubber Wheel AGT (Automated Guideway Transit)
A lightweight car with rubber tire runs on a dedicated runway (viaduct or underground) along the guideway. A lightweight car with rubber tire runs on a dedicated runway (viaduct or underground) along the guideway.
5) Steel Wheel AGT (Automated Guideway Transit)
A lightweight car with steel tire runs on a dedicated runway (viaduct or underground) along the guideway. It is stable in the weather conditions such as rain or snow compared to rubber wheel, but it has the disadvantage of higher noise and vibration and it is appropriate to a mid/long route (20~30km).
It is designed to support and guide a vehicle using steel rail and CWR, and substructure and system of the existing railway could be used, and it is able to run on a steep slope and sharp curve using the self-steering function.
6) LIM (Linear Induction Motor)
The LIM system runs without contact between the track and wheel but using electromagnetic force between the vehicle and guideway and it has the same shape as steel wheel, but the wheel simply conveys load to the rail without a driving bogie.
It is similar to the MRT in dimension and transportation capacity and is able to run on a sharp curve thanks to reduced wheel diameter and as such, it is flexible in planning a route.
With a low height of car body, more space is available, and less noise is generated because of no direct wheel driving.
50 Ⅵ. Alternative Selection Standard of LRT System in Korea: Guidelines for New Transportation Mode Selection
4. Application Procedure for New Transportation Mode Guidelines
4.1. Target and Time of Application
Not only public officials of the local government that plan to introduce the LRT but the concessionaire will apply the guideline for new transportation modes to the following LRT system.
∙ MOLIT's LRT standard vehicle: Rubber wheel, steel wheel, linear induction motor (LIM), Maglev, monorail and street car (tram) LRT ∙ LRT introduced from foreign countries is proven for revenue operation
4.2. Time of Application
In any of the following cases, the guideline for new transportation mode should apply to review the LRT system.
∙ If it is required to establish the LRT-related plan or reviewing the existing transportation plan ∙ Used as the criteria to determine a vehicle system at early stage of the LRT project ∙ When establishing a basic plan for introduction of the LRT and submitting it to MOLIT
4.3. Application Method
The criteria to determine the LRT route condition and characteristics of the rolling stock system are established referring to the procedure in the guideline, and any ambiguous criteria shall be in accordance with the guideline.
The LRT private investment guideline and the LRT construction plan within the scope of metropolitan transportation improvement plan shall be in compliance with the guideline.
Even after selection as the LRT rolling stock system in accordance with the MOLIT guideline and the approval of MOLIT, feasibility study on ridership, cost & benefit shall be carried out.
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Figure 19 Guideline and Procedure of Application
4.4. Procedure for Preparing a Guideline for New Transportation Mode in Yangon Myanmar
1) Review of applicable new transportation mode
All means of transportation available for introduction and operation shall be compared and reviewed. New means of transportation available include BRT, Bi-modal tram, streetcar (wireless tram) and the LRT (rubber/steel wheel AGT, LIM)
New means of transportation developed or under development as a national R&D project, if stability at the time of commercial operation is sufficiently proven, shall also be taken into account, in addition to the most suitable one among 4 types above.
2) Estimate of direct/indirect influence area and population
The population in an influence area is the factor that determines the appropriate means of transportation which is estimated by direct and indirect influence area. As shown in , influence area is categorized into direct influence area for red regions and indirect influence area for yellow regions.
52 Ⅵ. Alternative Selection Standard of LRT System in Korea: Guidelines for New Transportation Mode Selection
The population is estimated based on the time of operation start, and the year-on-year future population (provided by Myanmar national statistics DB center) may be considered. Current population may be used when estimated data is not available and the district unit population presented in the legally approved development plan (from the basic plan) might be used for an undeveloped area such as new town area.
Figure 20 Classification of Direct/Indirect Influence Area
3) Review of new transportation mode satisfying the operating cost It is required to adopt a new means of transportation that could accommodate annual operating cost at least by operating revenue. If the population in an influence area reaches the level with which the operating revenue equals to annual operating cost, operating cost is considered to be recoverable. Population satisfying the operating cost is estimated as follows.
Annual operating cost (￦100million/km) includes labor, power, maintenance & general expenses after deducting other revenue (advertisement, subsidy). If it is difficult to estimate, mean operating cost shown in
may be applied
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Table 32 Mean Operating Cost by Different Transportation Modes
Note: Mean operating cost is estimated by deducting mean other revenue 10% by means
The route is based on average length of 15km unless otherwise specified. Mean fare is based on actual fare or ￦1,400, estimated mean value when actual fare is not available
table below shows modal split for each means of transportation and region.
Table 33 Modal Split by Transportation Modes
Classification Modal split (%)
Seoul 27.6
Metropolitan area (Seoul excluded) 26.7 [Category 1] BRT, Bi-modal tram Provincial metropolitan city 29.8
Others 28.1
Seoul 31.2
Metropolitan area (Seoul excluded) 19.0 [Category 2] Tram Provincial metropolitan city 19.9
Others 19.0
Seoul 34.9
Metropolitan area (Seoul excluded) 11.3 [Category 3] LRT Provincial metropolitan city 10.0
Others 10.0
Source: National transportation & SOC statistics, partial revision of MOLTMA data (2009)
54 Ⅵ. Alternative Selection Standard of LRT System in Korea: Guidelines for New Transportation Mode Selection
Trip generation rate per person is shown in
.
Table 34 Trip Generation Rate per Person
Metropolitan area Provincial Category Seoul Others (Seoul excluded) metropolitan city
Trip generation rate 1.87 1.87 1.62 1.29 per person
4) Considerations
According to the conditions of local government, environment (noise, air pollution), symbolism (image, aesthetic effect), transfer convenience and schedule shall be taken into account, referring to
.
Table 35 Other Considerations by New Transportation Mode
Bi-modal Category BRT Tram LRT tram
Air pollution ③ ② ① ① (power) (fossil fuel) (CNG hybrid) (electric) (electric)
Environment ①/②/③ Noise ② ② ③ (Maglev/rub (wheel) (rubber) (rubber) (steel) ber/steel)
System image ② ② ① ① Symbolism Urban landscape ① ① ① ② (operation type) (ground) (ground) (ground) (elevated)
Transfer ① ① ① ② Transfer convenience (horizontal) (horizontal) (horizontal) (vertical) (transfer type)
Timely application ① ② ③ ③
Note: ①>②>③ according to relative superiority by mode Source: The 2nd public transportation basic plan, MOLTMA
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Ⅶ. Pre-Feasibility Study : Yangon–Mingalardon Airport Rail Link
1. Project Summary
1.1. Background and Objectives
This pre-feasibility study has been conducted on the construction of the LRT and mass transportation urban railroad system in certain areas of Yangon, Myanmar (Mingalardon airport area, Hanthawaddy airport area) through relevant technology and business environment analysis. The purpose of this study is to support the successful implementation of this project.
Therefore, in this study, the existing plans closely related to the scope and contents of the project and current business plans are closely identified and used as basic data for selection of traffic axis and the traffic demand forecasting stage.
The direction of alternative route setting of this survey reflected local situations such as the land use status & road facility status identified in the status survey as much as possible. This study will contribute to solving inter-region traffic problems by examining possible connectivity with surrounding areas as well as seeking to accomplish urban development by connecting urban areas with future major development areas.
The main assumptions for carrying out this feasibility study are as follows.
∙ The project plan, funding plan, and operation plan proposed by other project proposal were used as basic data for the pre-feasibility study. We conducted the project feasibility study according to professional judgment with reference to other available data for technology & business environment analysis and legal analysis, external expert reviews and interviews with stakeholders. ∙ The similar construction plan, financing plan and operation plan of the facility to be used for carrying out this survey may not include all the information that may be appropriate
56 Ⅶ. Pre-Feasibility Study: Yangon–Mingalardon Airport Rail Link
and necessary for the information users' project understanding. ∙ In order to estimate the demand for this survey, business plans, statements, information gathered during field trips and other publicly available financial data related to the project were used. ∙ This pre-feasibility report is based on the limited information and assumptions based on the project plan proposed by similar project proposal. Therefore, the results of the feasibility study described in this report may differ from changes in the future economic environment and such differences may be significant.
2. Basic Project Data Analysis
2.1. Analysis of Legal Framework for Business and Environmental Impact
1) Myanmar Foreign Investment Law
The Myanmar government established the Foreign Investment Law in order to attract foreign capital as a follow-up measure after the introduction of market competition in 1988, but there were overwhelming discrimination and restrictions on foreign-invested enterprises compared to Myanmar enterprises. In addition, some provisions (such as fruitage remittance) are not properly observed and they are nominal in many cases. In the early 1990s, foreign investment capital, which was influenced by the market opening of Myanmar, has been withdrawn from Myanmar before and after the Asian financial crisis in the late 1990s. As economic sanctions against Myanmar have been added by the US and EU since 2003, foreign investment in Myanmar has virtually ceased or has been turned into the ODA-related investment.
As 49 years of military rule came to an end in 2011 and Myanmar's new government was launched, the government has been moving away from its closed policy and actively implementing reform and opening policies since then. Since the need for economic development through attracting foreign investment capital has increased, the government has been working on amending the Foreign Investment Law just after the new government was launched in 2011. However, concerns over loss of Myanmar companies' competitiveness and domestic market dependence on foreign economy according to the opening of foreign investment, have made actual amendment work sluggishly.
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But as new government expressed its strong will to open up the market and attract foreign investment and the US and EU responded with easing economic sanctions, the amendment of the Foreign Investment Law in Myanmar made a breakthrough. The law has finally approved as the president officially signed the amendment passed by the House and Senate on November 2, 2012.
The major issues of Foreign Investment Law amendment in Myanmar are as follows.
A) Whether the standard for minimum investment amount will be established The original amendment (draft) reflected the Myanmar government's intention to attract large-scale foreign investment rather than small-scale: "The minimum investment amount for foreigners is $5 million or its equivalent in other currencies approved by Myanmar's central bank. (Note: Euro, Yen, etc.)". However, as claims that the minimum amount is too high compared to the reality and the amendment of the Foreign Investment Law may not result in promoting foreign investment, but in preventing foreign investment were strongly raised, the corresponding provisions were deleted. The minimum amount is deleted in the law, but it still exists implicitly. Although the minimum amount was not specified in the existing law, follow-up instructions describe the minimum investment amount for service industry (300 thousand dollars) and the manufacturing industry (500 thousand dollars).
B) Investment ratio of joint venture in foreign investment restriction sectors In the amendment (draft), foreign investors can only make joint ventures if they invest in investment-limited projects, and the ratio of foreign capital is limited from minimum 35% to maximum 49%. In the newly amended law, it is still necessary to invest in a joint venture, but now foreign share ratio can be set free unless otherwise specified.
C) Myanmar's purchase right for foreign investment The amendment draft stipulates that contracts should be signed by specifying the purchase right of Myanmar (enterprises) on foreign investment related to [support for products or services related to large-scale investment capital]. However, due to concerns over the stability of foreign investment, foreign companies strongly opposed against the provisions and eventually, the related provisions were deleted from the law.
D) Land-lease period related to foreign investment The lease period for foreign investment-related land has been changed from "basic 30 years, 10 years + renewal option of 5 years" to "basic 50 years + 10 years + renewal option of 10 years". Considering the reality that there is a lack of land owned by the state, the amendment law allows civilians to rent land. Table 36 shows major amendments to Myanmar's Foreign Investment Law.
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Table 36 The Major Amendments to Myanmar’s Foreign Investment Law
Item Content ∙ Activities that give harm to cultural traditions, customs, and natural environment Limited or prohibited ∙ Native-only industries, such as manufacturing industry, service industry, foreign investment agriculture industry, the livestock industry and fishery industry, defined by business sector the regulations. However, certain agriculture and livestock industries can be accessible with MIC (Myanmar Investment Commission) permission. ∙ 100% equity investment Foreign investors' ∙ Joint venture (share ratio is determined by stakeholders) investment type and ∙ Conducting business according to mutually agreed contracts share limit ∙ Possible to future share ratio determination in restricted business Minimum investment ∙ Providing a basis for MIC to determine capital regulation for ∙ Currently used, manufacturing: $ 500,000, service industry $ 300,000 foreign investors ∙ Extension of corporation tax exemption period to 5 years ∙ Corporate tax exemption for profits reinvested within one year Benefits for foreign ∙ Commercial tax reduction for export products investment companies ∙ Customs and other domestic tax exemption for machinery and equipment under the Foreign necessary for business preparation, customs and other domestic tax Investment Law exemptions for machinery and equipment necessary for investment expansion with MIC permission ∙ Corporate tax reduction up to 50% of export profits ∙ Lease allowed for the first 50 years, then extended twice (10 years per each) Use of property thereafter ∙ Both state-owned and privately owned land can be rented ∙ The principle is that they have to resolve disputes under contractual dispute Dispute resolution resolution provisions. procedures ∙ If there is no dispute resolution provision, follow the current law in Myanmar. ∙ Disposal, exchange, and transfer of assets subject to MIC's permission Rights and obligations ∙ All or part of shares of a foreign-invested company may be transferred to of foreign investment foreigners, foreign companies or natives or domestic companies companies under the ∙ Possible business opportunity for native-only industry with MIC’s Foreign Investment pre-approval Law ∙ Lease renewal& pledge of real property and transfer of stock or business must be approved by MIC ∙ When employing unskilled workers, natives only Employment ∙ For skilled labor, 25% of the workforce until 2 years after establishment, 50% by 4 years, and 75% by 6 years should be hired locally. ∙ Foreign currency qualified for those who brought foreign capital ∙ Foreign currency to be recovered for those who brought foreign capital Foreign remittance ∙ Net income after taxes and certain funds are deducted from the annual gross including overseas income earned by the person who brought foreign capital investment returns ∙ Salaries earned by foreigners working in Myanmar & proper remaining balance that all taxes and family's living cost (including the person) are deducted from proper income according to the specified method Government ∙ Ensuring non-nationalization guarantees for ∙ Ensuring that business licenses will not be terminated without legitimate investors reasons during the term of business licenses
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2) Business-related Tax Investigation (Related Regulations on Corporation Tax, Customs, and Income Tax, etc.)
The tax administration is administered by Ministry of Finance and Revenue in Myanmar. The Internal Revenue Dept. and the Customs Dept. are in charge of this task.
Myanmar's tax system is divided into national tax and local tax. There are 14 kinds of national taxes, which include corporate income tax, personal income tax, commercial tax, customs tax and withholding tax, accounting for most of the tax revenue. The fiscal year is from April 1 to the following March 31. (The tax declaration will be made to Internal Revenue Dept. by the end of June.)
The objects and scope of taxation are as follows.
∙ For residents and resident-corporations of Myanmar, worldwide incomes are taxable. For non-residents and non-resident corporations, only domestic incomes are taxable. ∙ For foreign companies, only domestic incomes are taxable because it was established under the foreign law. However, careful attention is required because the distinction of residency defined by tax laws and scope of taxation differ between corporate incomes and personal incomes. ∙ The taxes are divided into four categories: a tax on production and consumption, tax on income and ownership, customs and tax on the use of the national property. (15 items each)
Corporate Income Tax: For corporations established under the Foreign Investment Law, the tax rate is 25%. For foreign companies' branches, the larger of 35% or the progressive rate (5~40%) are applied.
shows the taxation classification and applicable tax rate in Myanmar.
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Table 37 Taxation Classification and Applicable Tax Rate in Myanmar
Category Tax rate
Corporation established by Myanmar Corporation Law Corporation established by Foreign Investment Law 25% Foreign companies participating in Myanmar government projects through special permits The larger of 35% or ∙ non-resident foreign corporation(its branch) progressive rates (5~40%) Capital gain - resident corporation 10% - non-resident corporation 40% - Oil & Gas Sector 40~50%
Within 30 days of receipt of tax invoice, a tax claim can be filed to IRD. An appeal may be filed with the central appeal commission within 60 days after IRD's tax claim decision. If there is a legal issue in the decision of the central appeal commission, the principal may ask the commission to refer it to the Supreme Court.
∙ Only Township Revenue Officer has the authority to make a final decision for tax less than 500Kyat, and the head of IRD has the authority to make a final decision for tax less than 10,000Kyat. ∙ If there is no legal issue, the principle has to accept the decision of the central appeal commission.
MIC recently said it will abolish the five-year tax exemption, including foreign investment. (MIC's abolishment of 5-year corporate tax exemption policy ('16.8.15)) It is because Myanmar concluded that foreign investment has flowed into Myanmar to some (enough) amount. The increase in domestic tax revenue is also one of the reasons. The Foreign Investment Law and National Investment Act were established under the Thein Sein regime in 2012. The corporation tax exemption for five years was stipulated to facilitate investment.
Income taxes consist of personal income taxes and withholding taxes. Personal income taxes are as follows. If you stay 183 days or more per year, you will be a resident. In this case, taxable incomes are worldwide incomes like resident corporations. For residents under 183 days in total, only domestic incomes are taxable like non-residents. Taxable incomes consist of entire salary incomes (salary, wage, bonus, allowance, cash gifts, commission, and premium, etc.) and other incomes (property income, business income, and other sources). We need to note that applied tax rate is different. Various supplementary benefits such as automobile
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and housing allowances are calculated as salary income and progressive income tax with differential rates will not be applied. However, corporations under the Foreign Investment Law shall be taxed only on domestic income. Resident foreigners here mean foreigners who reside in the country for more than 183 days per fiscal year and foreign companies established by Myanmar Corporation Law.
Withholding tax on foreigners' income earned from interest, royalties and contracts will be imposed as shown in
.
Table 38 Withholding Tax Rate for Foreigners in Myanmar
Item Resident foreigner Non-resident foreigner
Interest income 15% 15%
Licenses, trademarks, royalties 15% 20%
Government agency payments 2% 3.5%
Direct and indirect taxes consist of commercial taxes and customs. Commercial tax is a consumption tax levied on the sale of goods and providing services. The Commercial Tax Law that established in March 1990 has an effect on imports and exports. The law was completely amended in August 2011 and the average rate of 5% commercial tax is imposed on all imports and domestic products (including 14 services).
For imports, commercial taxes are levied by Customs with customs duties, which vary according to items. The 14 services including transportation, hotel, restaurant, and entertainment are subject to 5% commercial tax.
Customs duties are taxable according to the customs standard taxation rates. Myanmar's nominal customs rate is relatively low, with 75% of all customs items being levied at 5%.The taxation standard is the sum of CIF (Cost Insurance Freight) plus 0.5% and most imports are currently subject to customs. However, if raw materials are temporarily imported, processed and then re-exported within a certain period or if they obtain MIC's approval, customs duty will be exempted.
The double taxation agreement between Korea and Myanmar came into force on August 8, 2003, in both countries. The agreement provides that the country in which the income incurred determines the scope of taxation and allows the deduction to prevent double taxation.
summarizes the main contents of double taxation agreement.
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Table 39 Main Contents of the Double Taxation Agreement
Category Main Contents
The income-incurred country imposes taxes only if the company has Business income registered business offices such as branch offices in the country. Dividend 10% taxation Generally 10% taxation. However, the Export-Import Bank of Korea and Limited Interest the Industrial Bank of Korea are tax-exempted. tax rate The patent, design, utility model right, the secret formula: 10% taxation, Fees otherwise 15% taxation. Taxation only in the country of residence, except for stocks and Gains from the sales oligopolistic stocks (35%) of companies whose main assets are real of shares estates. International Airlines are exempted from the income-incurred country and shipping transport income companies are 50% exempted from the income-incurred country. Personal service Taxation in the income-incurred country only if there is a fixed facility income such as private offices or if he or she stays for more than 183 days. Regulations for the prohibition of discrimination against foreigners, Others mutual agreement in the case of tax disputes and exchange of taxation data, etc.
3) Review of Ownership or Lease for Foreign-Invested Enterprises' Business Premises
All the land in Myanmar and the resources attached to it are owned by the state. In principle, not only foreigners but also natives cannot own land. In accordance with the Transfer of Immovable Property Restriction Act (1987), foreigners cannot sell, buy, exchange or transfer any land, buildings and anything attached to land (property) and cannot take pledges or inheritance.
According to Notification No. 39/2011 (September 30, 2011) foreigners were allowed to enter into lease agreements with individuals as well as a government with the condition that the initial lease period was 30 years, and could be extended up to 2 times for 15 years each thereafter. However, the amended Foreign Investment Law now provides that the initial lease period is 30 years, and can be extended up to 2 times for 10 years each thereafter. Exceptionally, if foreign investment is made in certain areas where telecommunication and infrastructure facilities are underdeveloped, for economic development of the entire country under the Foreign Investment Act, it is possible to set a longer-term lease period beyond the allowed period.
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It is possible to make an investment in the land (investment to be made for any type of business on the land) through consultation with the landlord. However, the scope of allowable business needs to be confirmed. So far, the meaning of the investment project in the land has implied a real estate development business or a sale project.
Sub-renting, securing, transferring or exchanging land and buildings on an authorized business to a third party must be authorized by the MIC.
The right of disposal, exchange, and transfer of assets can be specified. It is intended to allow disposal of property such as sub-leasing, collateral, and transfer, etc. However, it is necessary to confirm disposal method & procedure of specific real estates and actual permissibility.
4) Remittance of Business Profit, Foreign Exchange Laws and Regulations Related to Repayment of Loan
According to the Foreign Investment Law, amended on November 2, 2012, the profits and gains of foreign-invested enterprises could be exchanged at market exchange rates and remitted through foreign exchange banks. The fruitage remittance guaranteed by the Myanmar government includes foreign currency approved by related authorities for withdrawal, compensation under the relevant law, gains from the sales of shares under the related law, shares after liquidation (the amount equivalent to the market value of owned shares after liquidation), amount of money earned with expiration or transfer of investment approval, amount equivalent to decreased income by reduced investment, net profit and foreigner's salary after deducting taxes and living expenses. The remittance procedure is carried out through the following three steps.
∙ Get tax return receipts from the tax office. ∙ Apply to MIC with the receipts and get the remittance permission document. ∙ Request a remittance to the MICB or MFTB with the MIC's permission document.
But MIC, the related authorities, has often refused or delayed issuance of permission for fruitage remittance. Accordingly, fruitage remittance was actually difficult to be made. Foreign investor’s dishonest tax reporting practices to the Myanmar government was one of the reasons for Myanmar's fruitage remittance disapproval.
Recently, foreign investors who have invested normally and have paid taxes are allowed to make remittances. However, it is difficult to make remittances if a company is established by the corporation law that does not have an approval basis for fruitage remittances or if
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a company uses borrowed-name accounts or if the taxation results are unclear. As a result, still many foreign companies make overseas remittances with abnormal methods such as foreign exchange fraud or 'Hand Carry'.
2.2. Financing Plan
1) Government Financing Plan
Among funding alternatives for this project, the government has two ways of self-funding: fiscal revenues such as taxes and government-bond issuance. In this study, financing through currency issuance was not considered.
A) Financing through taxes and fiscal revenues
According to the Myanmar's Ministry of Planning and Finance's data, 2012 national budget is 6,330,657 million Kyats (about KRW 1.7 trillion won) and transport sector's budget is 42,540 million Kyats (about KRW 11.5 billion won), which is approximately 0.67% of the total budget. The Myanmar government will increase the transportation sector budget by about 5% annually.
Currently, roads are regarded as the most important means of transportation in Myanmar. Roads are rapidly being damaged as the number of road users increases. In this regard, government spending on road maintenance accounts for a large portion of the national budget allocated to the transportation sector.
B) Special Taxation
One of alternative funding resources is a special tax for the project. For example, a special tax may be imposed on vehicle fuels and toll fee to support railroad operations and maintenance. The special tax will be burdened mainly on natives who use vehicles, roads, and railways, etc. It will be necessary to discuss on how much burden they can endure.
In fact, improvement and maintenance of Myanmar railroad facilities since 2000 has relied heavily on overseas assistance such as ADB, World Bank, and Japan. Road maintenance also depends on foreign aids (mainly ADB).The financial situation in Myanmar is unlikely to be strong enough to support the project independently by imposing special taxes. However, if the need for this project is emphasized, such as improvement of the quality of people's lives and the economic benefits increase through expansion of infrastructure in Myanmar, the idea is worthy of consideration through discussion with the government and related ministries.
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C) Financing via bond market
Generally, the central government or municipalities can issue bonds to raise funds. But, according to the survey, the bond market to international investors is not yet formed in Myanmar, so it will be difficult to issue international bonds for the project.
It will be necessary for related ministries to discuss the possibility of financing the project through debt issuance in Myanmar's domestic bond market.
shows the credit ratings of Myanmar.
Table 40 Myanmar’s Credit Rating by International Credit Rating Agency
Agency Recent rating Previous rating
KEXIM D1 D1 OECD 6th 6th S&P B B+ Moody’s B2 B2
Myanmar heavily relies on dollars, which makes it difficult for the government to manage the foreign currency. In addition, as the financial system is not structured systematically, it will be difficult to attract profit-centered investment from other countries or international organizations. S & P and Moody's rated Myanmar as B and B2, respectively. This is four to five steps lower than the lowest level of investment eligible, which means that Myanmar is classified as an ineligible investment country. Credit rating agencies' ratings are essential for the formation of the international bond market in Myanmar. Generally, Myanmar can enter the international bond market if it escapes from low-income developing countries, which are the least developed countries, and get the international status of the middle-income developing country. Therefore, it will be difficult for Myanmar to issue government bonds in the short term to raise international funds.
2) Funding through International Financial Institutions
A) International Financial Institution
∙ ADB ADB is an international financial institution in the Asia-Pacific region which Myanmar belongs to and was established with the aim of promoting economic growth and cooperation in Asia and financing development projects for member countries. ADB has identified transportation
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and energy, which are major obstacles to the economic development of Asia-Pacific region, as support priorities in the Asia-Pacific region and has recently been concentrating its support on eco-friendly energy.
explains the main missions of the ADB.
Table 41 ADB’s Key Missions
ADB’s key missions
∙ Promoting regional investment of various public and private capital for development of Asia-Pacific region
∙ Funding development projects of developing countries in the region for balanced regional development within the region
∙ Supporting and coordinating the development policy and project planning of member countries in the region in order to make efficient use of loans and promote trade.
∙ Providing technical support for drafting and implementing development projects in the beneficiary country
∙ Promoting cooperation with the United Nations and its affiliated organizations, other international organizations interested in development investment in the region, private organizations and member countries
∙ World BankIDA IDA is an organization established to provide concessional financing for the least developed countries and serves to complement IBRD's lending activities through the provision of concessional long-term funds for poverty eradication in low-income developing countries and for the creation of a long-term growth base. IDA funding is made through capital investments from member countries, contributions, transfers from IBRD and revenues from financial operations.
B) Public Funding
∙ ODA’s paid aidEDCF EDCF (Economic Development Cooperation Fund) is a policy fund established to support industrialization and economic development in developing countries and promote economic exchange between Korea and developing countries. EDCF mainly supports the construction of economic and social infrastructure in developing countries and corresponds to the concession loan which has the obligation to repay the principal among the Official Development Assistance (ODA). As a developing country, a concessional lender who has a repayment obligation will review the priorities and project feasibility of the national development plan from the time
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of selecting the project and will make the best efforts for the project success. Figure 21 shows the EDCF application procedure diagram.
Figure 21 EDCF Application Procedure Diagram
EDCF's priority projects include co-financing and mixed-credit projects. The co-financing is a project to cooperate with international organizations such as ADB and the mixed credit project is a project that is supported by the Export-Import Bank's export fund, which strives to enhance export competitiveness and increase the fund availability.
EDCF loan period is total 40 years including 10 years of the grace period with 0.1% interest rate and 0.15% commitment fee. KEXIM LCL has 15 Years of loan period including 5 years of the grace period with 2.5% interest rate and 0.15% commitment fee. A 5-year government’s national bond is considered to have 5.35% interest rate.
Total $ 847 million was provided for 6 projects during 1992~2004 and then was suspended till 2011 when the financial support was resumed. EDCF loan was determined in 2013 and $500million was assigned for following 5 years.
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Table 42 Total 11 projects, $484.7 million approved.
Approval Amount approved Project year ($ million)
1992 Expansion of telephone network 7.8 1994 Expansion of power transmission/distribution line 16.8 1996 Construction of container yard at Yangon port 15.0 1996 Procurement of railroad rolling stocks 20.0 2000 Construction of hepatitis B vaccine factory 12.6 2004 Construction of e-government system 12.5 2013 500kV Taungoo-Kamanat transmission line 100.0 2013 IT infra network project 55.9 2014 Railroad modernization project 45.0 2014 Construction of Korea-Myanmar friendship bridge 137.8 2015 Twante canal improvement project 61.3 Total 11 484.7
Expansion of telephone network was intended to install digital electronic exchange with associated equipment at 3 locations to satisfy the demand and enhance the service quality and for this use, the$7.8million financial loan was provided.
Expansion of power transmission/distribution line was planned for 4 satellite cities in the vicinity of Yangon (NEW DAGON, PALE, HLAING THAYAR AND SHWE PYITHAR) to minimize the power loss as well as improve the industrial development. $ 16.8 million loans were provided for procurement and installation of the equipment.
Construction of container yard at Yangon port was intended to enhance the cargo handling capacity of Yangon so as to reduce the logistics cost, ease off the cargo congestion and increase the employment in the region. $ 15.0 million loans were provided to build a 2,270 TEU-capacity container yard with transportation equipment at the location 1km away from current container yard.
Procurement of railroad rolling stocks is intended to procure advanced passenger cars to promote the passenger convenience, increase the availability of railway transportation and accommodate the increasingly growing tourists that will help promote economic development. $20.0 million loans were provided for procuring 70 railway cars (60 passenger cars and 10 vans)
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Construction of hepatitis B vaccine factory was intended to produce 5,000,000 doses of hepatitis B vaccine annually to provide them at a low price so as to enhance the people’s health. $ 12.6 million loans were provided to design and build the factory and equipment for medicine production, quality control, and packing and furthermore technology transfer and quality control training.
Construction of e-government system was intended to pave the foundation for efficient government management, information infrastructure and IT development, a global information and increasing national competitiveness in a way of computerizing the administrative process. $12.5 million loans were provided to develop information infrastructure, build infra communication network and information network, supply and install e-government software and system, build the network among government departments and electronic approval system and introduce the electronic file and exchange system.
500kV Taungoo-Kamanat transmission line was intended to increase the power supply and enhance the productivity through expanded power network and $ 100 million loans were provided to build 500kV transmission line (188km) for Taungoo-Kamanat section.
IT infra network project was intended to develop nationwide optical communication network for high-quality information communication service as well as increase ICT use as an economic development driving force. $55.9millionloanswere provided for building nation’s backbone including installing optical transmission equipment, laying optical cable and providing civil work and consulting services at 37 major cities in Myanmar.
Railroad modernization project was intended to enhance the railroad service environment by replacing the old passenger cars with the new ones and increase the productivity of railroad cars through technology transfer and refurbishment of maintenance shops. $45.0 million loans were provided to procure 100 passenger cars (40 first class and 60 economies) and maintenance equipment and services.
Construction of Korea-Myanmar Friendship Bridge was planned to build the bridge between Yangon and Dala to promote the exchange, enhance the traffic environment and promote the development of Dala and balanced regional development. $ 137.8 million loans were provided to build the bridge (2.5km) and provide the consulting service and training program.
Twenty canal improvement projects were intended to provide shore protection, prevent erosion and flood damage. $61.3 million loans were provided for canal refurbishment, banking and consulting services.
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∙ ODA’s Grant AidKOICA Grants that have no obligation to repay the principal are mainly managed by KOICA under the Ministry of Foreign Affairs, and government ministries such as Ministry of Knowledge Economy, Ministry of Education, Science and Technology, Ministry of Land and Transport and Maritime support small-scale free cooperation. Bilateral assistance for international development cooperation is implemented through various types of support, including project and program assistance, technical cooperation, budget support, food aid, disaster relief, debt relief and indirect assistance through civil society organizations & other non-governmental organizations.
summarizes the type of ODA.
GRA provided for Myanmar is shown in shows.
Table 43 Grant Aid by KOICA (in $10,000) ‘15 Year ‘91~‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 Total (provisional)
Table 44 Different Types of Official Development Assistance (ODA)
Participants Repayment terms Aid Type Project and Program aid Technical Cooperation Budget Support Debt Relief Grants Food Aid No repayment obligations Emergency and Distress Relief Bilateral General Support to NGOs Contributions to public-private partnerships Promotion of development awareness Administrative costs Non-grant Loans by government or official agencies Repayment obligations Acquisition of equity Grants and capital subscriptions Multilateral Concessional lending to multilateral agencies
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C) PPP
PPP (Public-Private Partnership) is often referred to as private sector's construction and operation of SOC (Social Overhead Capital) facilities such as road, port, railway and environmental facility that were part of the government's public role. It is a project that promotes the convenience of the people and continuous development of the nation by the private sector's taking charge of projects with strong public nature. For example, it is common to construct social infrastructures by financing large-scale projects in the private sector. It is also a common practice to receive management & operation rights and to collect investment return from operating income after the return of the facility’s ownership to the government. For this, SPC (Special Purpose Company) is established separately. It is a kind of public-private cooperation responsible for the whole process such as design, construction, finance, operation, maintenance, and management.
There are various types of PPP as shown in
. BOT, which is mostly used, is located between private type and public type.
Table 45 Private Project’s Methods
Division Content
∙ After the private company builds the facility, the company owns the ownership and operating right. BOO ∙ The BOO method is similar to the BOT project, but the project’s control and (Build-Own-Operate) operating right is not reverted to the government but is constantly owned by the company. ∙ The ·private company builds the facility and the ownership and operating rights are reverted to the government after a certain period of the company’s ownership BOT and operation. (Build-Operate-Transfer) ∙ The BOT type is characterized in that the private operator takes a leading responsibility for funding, design, construction, and post-operation of the project. BTO ∙ The private company returns the ownership to the government right after the facility (Build-Transfer-Operate) construction and reserves the management & operation right for a certain period. ∙ The ownership is reverted to the government after the completion of the facility BTL and the government recognizes the company's management & operation right for (Build-Transfer-Lease) a certain period and leases it to the company. ROT ∙ After the maintenance of existing facilities owned by the government, the private (Rehabilitate-Own-Transfer) company has the right to operate the facility for a certain period. ROO ∙ The private operator repairs existing facilities and government recognizes the (Rehabilitate-Own-Operate) operator's ownership. ∙ After the improvement and maintenance of the facility, the facility ownership is RTL reverted to government and government grants the management & operation right (Rehabilitate-Own-Lease) for a certain period of time. The company earns money by allowing others use the facility.
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2) Providing financing plan for railroad construction plan
Since this railway project is a national infrastructure industry, it is necessary to first consider government financing. However, considering the size of this project that amounts to $1 billion, it will not be possible to implement it by Myanmar government funding alone. Therefore, the best ideal type of this project is considered to be a PPP rather than 100% government- supported project or pure private capital project and the funding plan should be specified accordingly.
The government role is especially important in carrying out the project with close governmentprivate cooperation through PPP. The degree of risk from the perspective of investors will vary depending on direct and indirect cooperation through Myanmar government's equity participation or project guaranteeing. Therefore, the Myanmar government's participation and interest should be actively pursued and private and international financial institutions' participation will be changed accordingly.
3) Myanmar government's participation plan for PPP
A) Equity participation approach
A beneficiary country's government is often involved in the type of capital contribution to SPC in a way that funds directly into a specific project. This approach is the most preferred approach in terms of project stability and is considered to be the optimal approach to minimize the political and sovereign risks that are common in developing countries.
B) Guarantee approach
Guarantee approach is a concept that is widely used in developing countries in recent years. It is a way for a beneficiary country' government to provide guarantees directly to project financing for related projects or to provide a Minimum Revenue Guarantee for individual projects. The guarantee of government projects will mitigate the risk of project profitability, which will lead to the more smooth participation of private capital and international financial institutions. In particular, in order to receive loans from IDA among international financial institutions, the Government's payment guarantees and other guarantees are required as a precondition and the government's close cooperation will be needed.
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C) A roundabout approach
This approach is not a way for a beneficiary government to provide equity participation or SPC guarantee through direct investment, but rather a way of using a roundabout through the state-owned company or ECA (Economic Cooperation Administration).In the case of this project, it is assumed that Korean private companies will participate in this project and accordingly EDCF funds will flow into the project. Myanmar government will need to cooperate with the Korean government and related project participants to coordinate opinions on project progress and financing.
3. Review of Profitability
3.1. Survey of Traffic Demand (Ridership)
1) Review Method of Traffic Demand Forecast
Traffic demand forecast is intended to estimate the potential passengers for the project route using various techniques. A 4-stage prediction using OD and NETWORK, the method using disaggregate behavioral model and modified model.
For Yangon where the project route will pass through, JICA established a SITRAMP-2 model which was supplemented in 2011 and updated in 2014 to 「PROJECT FOR COMPREHENSIVE URBAN TRANSPORT PLAN OF THE GREATER YANGON (YUTRA): 2014, JICA)」
Above model was established using a 4-stage prediction method using OD NETWORK, which is considered useful for analyzing the traffic demand for this project route. When the ridership between the stations needs to be predicted, more specific spatial analysis such as defining the station area and traffic between the stations is needed, and in the modal split, conversion factors which are simple and easy to apply would be effective.
To predict the traffic demand, population within the public transport influence area needs to be used and the area within 500m from the urban railroad (MRT/LRT) station was defined as a direct influence area by foot and population was estimated
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Figure 22 Conceptual Scheme of Direct/Indirect Influence Area
The formula applied to this project in estimating the population of public transport influence area is as follows.
In this traffic demand analysis, review of existing data and JICA's public transportation plan was performed by applying the station area and conversion factor .
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Table 46 Traffic Demand Forecast Flowchart
determination of direct the area on route → influence area
within 500m from the determination of station sphere → station within the direct influence area
Use of station sphere estimate of population in area and population in → station sphere in the direct ← 2015 statistical data influence area influence area
estimate of trip generation by trip generation rate and → mode in station sphere in the ← 2016 MoT data the modal split ratio direct influence area
estimate of converted MRT/LRT conversion rate using → demand in the direct influence ← based on foreign cases travel time area
estimate of OD between stations in the direct influence ← JICA F/S(2014) data area
division by population conversion of OD between ratio in station sphere by → direct influence areas to OD station between stations
estimate of passengers by use for train operation estimate considering both → station and traffic between ← plan and revenue Phase 1 and 2 stations estimate
3.2. Analysis of the Influential Factors on Demand
Influential factors include socioeconomic indexes such as population, Gross Regional Domestic Product (GRDP), the number of registered car and relevant plans.
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1) Estimate of the Population in Influence Area
Yangon city consists of 33 Townships with a total area of 787㎢ and population of 5.14 million. According to the population survey to monitor the variation from 1998 to 2011, annual population growth rate was 2.58% shown in
Source: Project for Comprehensive Urban Transport Plan of the Greater Yangon (YUTRA) [2014, JICA]
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2) Determination of Route and Estimate of Population in Direct Influence Area
A) Basic direction
Two candidate routes that can accommodate MRT/LRT along the south-north axis were available, which are Pyay Road in the west of Inya Lake at the center of Yangon and Kaba Ayer Pagoda Road in the east.
The route from Pyay Road to Yangon Central Station via Ahlon Road, U Htaung Bo Road will pass through Yangon Region Parliament and People’s Square and Shwedagon Pagoda is expected to generate more ridership than Kaba Ayer Pagoda Road in the east.
B) Proposed Route Summary
The proposed route starts from Yangon Central Station and run towards the north along Gyo Phyu St and passes through Zoological Garden Road to U Htaung Bo Road in the south of Shwedagon Pagoda.
After running to the west along U Htaung Bo Road and Ahlon Road in the south of People’s Square, it is extended to the north along Pyay Road. It will be changed to earthwork route at Hantha Waddi rotary around MRTV Yangon before changing to the bridge section.
Pyay Road is a 6-lane route with a median strip where the bridge may be built using a median strip space. The route is designed as the underground section from the northwest end of Inya Lake which is changed to the earthwork section at Yangon Airport Road and pass through the airport over the bridge.
After passing through Yangon International Airport over the bridge, it will cross the east of Yangon loop line and is designed as an earthwork section.
Depot is planned to be built at the site in the north of Khayae Pin Road in parallel with Yangon loop line after Wai Bar Gi Station and the extension line to new airport site from the lead track to the depot is planned.
The proposed route and station plan is shown in .
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Figure 23 Seoul Metro Consortium’s Proposed Route Map
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3) Car Ownership Rate
As of 2011, the total number of cars available in Myanmar was 2.32 million, increased by 2.32 times (1.31 million) from 2007, indicating annual growth rate 23.4%. Motorcycle accounted for the largest portion, 1.88 million, followed by the passenger car 0.28 million or 65.7%. And truck 15.3% and others 14.1%. In terms of growth rate, a passenger car was the highest, 7.9%.
Figure 24 Vehicle Composition Ratio (2011)
Table 48 Growth Rate of Vehicles Registered in Myanmar
Dept. of Civil Aviation (DCA) has pushed ahead with a plan to upgrade Yangon International Airport to increase the capacity from 2.7million to 3.7million passengers until early 2013.
Such investment plan was made in preparation for 2013 SE Asian game and 2014 ASEAN summit talks and Myanmar has suffered the shortage of infrastructure and tourist facilities for years due to an embargo by western countries.
Besides, the capital was relocated from Yangon to Naypyitaw in late 2005 and Naypyitaw International Airport is under construction.
B) Hanthawaddy Airport construction plan
Dept. of Civil Aviation (DCA) developed the private investment scheme for Hanthawaddy International Airport and other domestic & international airport projects, besides the 2nd Yangon airport project to provide the foreign visitors with upgraded services.
Hanthawaddy International Airport is planned at Bago city, 77km north of Yangon, with the area of 3,642ha. Since it is first planned in early 1990, no progress, in fact, has been made and international bid for construction is scheduled in 2012.
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5) Traffic demand forecast
Based on the population in the direct & indirect sphere and ridership along the route, traffic demand forecast was made using the equation below.
Traffic demand=population in influence population x daily public transport passenger/population Where, daily public transport passenger/population, Yangon = 0.41
shows traffic demand forecast for a proposed route
Table 50 Traffic Demand Forecast for Proposed Route
Analysis of the internal/external market that may influence on the project was carried out to identify the potential risk in advance as well as to implement the project efficiently.
1) Introduction of LRT by Each Country
The LRT was first introduced in the early 1960s but was used to deal with a small scale transportation demand in airport area or recreational facilities behind the car or subway because of a poor system technology.
As the LRT system, a monorail was installed in 1976 at Disney Land in the USA to transport the tourists and has been expanded to airport shuttle, recreation facilities and urban links. Then a full automation system and cost reduction could be achieved thanks to advanced technology development, promoting the application worldwide since the 1980s. LRT is in operation in 138 cities in 23 countries including Europe, Japan, and the USA.
Looking at the foreign cases of LRT operation, they are mostly 10,000~20,000 passengers/ hour and development is categorized into 4 types such as link & local transport mode, circular mode, main transport mode and access mode and was built in consideration of the connectivity with existing transportation means from the early stage of the plan.
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Table 51 LRT System in Operation by Different Continents
Region Total AGT Monorail Lim Others
Europe 39 24 9 - 6 America3818115 4 Australia 3 - 3- - Asia (excluding Korea) 49 20 23 3 2 Korea 9 4 3 1 1 Total 138 67 49 9 13
Source: MOLIT, Study to improve LRT private investment (2011)
2) LRT Development Type by Country
A) Link and Local Transport Mode
LRT providing the link and local transport function mainly connects the central part of the metropolitan area to the outskirts. It is developed as a branch line of main urban line with the capacity to accommodate the ridership. Included in this case are Yokohama in Japan, Toronto in Canada and Taipei.
Table 52 Link by Each City &Branch Line Transportation Modes
Population Country City Route System Network (million) Public transport in Yokohama Yokohama Seaside 1.90 AGT reclamation area which is linked to (10.6km) Line Japan Yokohama urban railway Tokyo Imhae line Link between downtown and rural 10.0 AGT (12km) (Yukikamome) area Toronto A branch line of Bloor Danforth linked Canada 2.20 SRT LIM (6.8km) to Kennedy station transfer center Taipei Link to one of two subway lines in Taipei 4.80 VAL AGT (20.7km) Taipei Built in line with Dockland London UK 7.50 DLR LRV redevelopment and is linked to (21.2km) London urban line
Source: MOLIT, Study to improve LRT private investment (2011)
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B) Circular Mode
LRT developed as a loop line in the metropolitan area is usually for a large development area.
Table 53 Circular Transportation Mode
Population Country City Route System Network (million)
Kobe Link to Port island and existing Kobe 1.40 Portliner AGT (6.4km) urban line
Osaka Link to Osaka urban line as public Japan Newtram AGT (6.6km) transport mode at Osaka south port 2.60 Osaka Osaka Monorail Link to two urban lines outside Osaka (6.8km) monorail
Source: MOLIT, Study to improve LRT private investment (2011)
C) Main Transport Mode
The LRT serves as the main transportation means in small cities thanks to its commitment to improving the traffic in the region.
Table 54 Main Transportation Modes from Each City
Population Country City Route System Network (million) Lille As a main transportation mode in France 110 VAL AGT (25.5km) Lille, modal split 40%
Vancouver Link with bus, trolley bus, and marine Canada 140 Skytrain LIM (21.4km) bus
Jaba Japan 80 Townliner Monorail Link to urban railway to Tokyo (12.1km)
Detroit USA 140 DPM LIM 11,000 passengers/daily on average (4.7km)
Source: MOLIT, Study to improve LRT private investment (2011)
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D) Access Mode
LRT as access mode is mostly for the airport, recreation facilities including the park, zoo or amusement park and hospital. It is more commonly used for the airport because of a high traffic demand and the need of high-quality service.
Table 55 Access Transportation Modes for Each City
Nation Facilities Network System
link to the urban railway to 400 stations at France Orly airport(7.2km) AGT Paris-Orly airport
Morgantown Univ. USA Link to downtown and campus PRT (14km)
Source: MOLIT, Study to improve LRT private investment (2011)
3) LRT System in Operation by Type
It is aimed to ease the traffic congestion in an urban area or AGT or linear induction motor (LIM) when excessive obstacles at ground level.
A) AGT
AGT has been in operation in 67 cities in 15 nations as described in
USA Las Vegas 8(10) 52.5 Urban(3), tourist(5), airport(2) 1962~2004
Japan Tokyo7(12) 114 Urban(7), tourist(5) 1957~2003
Malaysia KL 29.8 Urban(3), tourist(1) 2000~2007
Korea Daegu 3(3) 25.5 Urban(1), tourist(2) 1986~2015
3.4. Price Survey
1) Price Structure and Market Price Survey
Yangon Circular Railway is the public track transportation mode available in Yangon and road transportation mode includes BRT, YBPC BRT Lite Line, bus and mini bus (pick-up truck)
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Table 59 Public Transportation Fare Status in Yangon
Classification Fare
∙ MMK 200(15 miles or less) Yangon Circular Railway line ∙ MMK 400(15 miles or more) ∙ MMK 300/one-way ∙ RSIT system, paying a fare by card YBPC BRT Lite Line ∙ A fixed fare for total two routes (BRT) ∙ 1st route: 23 stations in Yangon excluding downtown ∙ 2nd route: Same as 1st route plus 4 stations including Botahtaung Pagoda toad and Bogyoke Aung San road, total 27 stations Bus and minibus ∙ MMK 100~300/one-way
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2) Tariff System Analysis and Appropriateness
The fare to be proposed shall be determined considering the balance with existing transportation modes and profitability to create the demand and economic feasibility to promote the financing.
Given this transportation mode is track public transport, the fare shall be similar with Yangon loop line. Yangon loop line deals with the traffic demand for a whole day and the user's pattern would be similar with Yangon's.
Besides above characteristics, financial feasibility is also critical for the project and thus the fare structure was assumed to be similar with Yangon's as described below.
Table 60 Fare Structure of Proposed Route
Fare structure MMK 400/one-way
∙ Fairness with other modes: Incorporating track transport, BRT and Yangon loop line Appropriateness ∙ User's resistance: Considering another modal fare ∙ Financial feasibility: Maximum possible fare
4. Review of Project Cost
4.1. Location
1) Project Site and Major Facilities
A) Project Location
Yangon District is the largest economic hub in Myanmar, located at the north of Irrawaddy delta where Hlaing River in northwest and Bago River in northeast join and 30km away from Martaban Gulf in the south. Total area is 10,171 km2 and population is 6,943,705 persons with population density 683 persons/km2.
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Mt. Bago Yoma runs south to north of Yangon District and small hills scattered over Thanlyin, Twantay, and Kungyangon Township. Bago River runs in the east of Yangon and Bawle River and Panhlaing River join Hlaing River to Yangon River.
Yangon belongs to Yangon District, located at the point where Angon River and Bago River join. It includes 33 townships under the management of YCDC , as a sub- administrative unit, 45 Wards, and 1,305 Blocks are included. With total area 787 km2 and population 5.14 million, it had been the capital city of Myanmar until 2006 when the capital was relocated to Naypyidaw.
Figure 29 Yangon Administrative Districts
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B) Major Facilities
a. Major Road Network
All roads and bridges are under the management of Yangon government (YCDC) and overall road network reaches to 958km
Major main road in Yangon is paved, indicating the pavement rate 79% which is relatively higher than others, however, is worse in outskirts and can hardly accommodate increasing traffic.
The road network in downtown is developed in a radial form from the Central Business District (CBD) and part of downtown has a one-way street. Traffic by cycle car, bike and motorcycle are not allowed by regulation but the passenger car and public bus only are allowed in CBD. And since 2010, the truck bus is also not allowed to run in 6 central townships including Latha, Lanmadaw, Pabedan, Kyauktada, Botahtaung, and Pazundaung.
More than 400 routes of the public bus are available in Yangon division and 8,000 buses run daily to accommodate 4.4 million passengers.
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Table 62 Yangon District’s Public Bus in Operation
- Fare: $0.05∼0.2/person-partly air conditioned-Total 400 routes - 8,000 buses are in operation-Bus operation: 5,800 times/day-utilization: 88%- - Bus use: 20,000 times - Bus operator : YDBCC(Yangon Division Bus Control Committee) △ 134 routes, 2,530 cars, driver 4,453, mechanic 6,371
b. Major Railroad Facilities
Railroad facilities are under the management of Myanmar Railways (MR) of the Ministry of Transport and Communication. The total length as of 2010 is 5,488km with 843 stations
. It will be increased according to National Railway Network project
Source: Chronicle of National Development Comparison between Period Preceding 1988 and after (up to 31. 12. 2009), Myanmar MOI, 2011
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Table 64 Mid & Long-term Railroad Projects in Myanmar
Mid-term project Long-term project
o Central control system and safety device o Yangon-Pyay railway upgrade o Yangon-Mandalay upgrade o Bago-Khayan-Thonkwa construction o Restoration of Yangon loop line o Tamu-Kalay-Segyi-Monywa-Mandalay (Indian o Bago-Dawei upgrade loan) o Yangon station development o Yangon ALT system (signal & comm, catenary o Dawei-Myeik construction & RS procurement) o Namsn-Kyaing Tong construction o Mandalay ALT system (signal & comm, o Minbu-Ann-Sittwe construction catenary & RS procurement) o Pyay-Shwedagar-Toungoo-Kyetaw-Nay Pyi o Yangon electric train system (signal & comm, Taw line catenary & RS procurement) o Mandalay-Myitkyna signaling code and o Mandalay electric train system (signal & comm, electrical communication system catenary & RS procurement) o Bago-Mawlamyine OFC installation o Yangon Ywathaghy station construction o Latbadan & Pyay station CBI system o Pakokku-Kalay OFC system installation
Source: Myanma Railways
Railway infrastructure is also poor and deteriorated like the road network and thus train speed is strictly limited. Cargo train is limited to 24km/h in maximum and at 12~14km/h by section, and in some section, train operation is difficult in the rainy season (May ~ Oct)
Analyzing railroad operation in Yangon, 6 routes based on YCDC central station are in operation and the route is summarized in
and
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Table 65 Railway Network in Yangon
Route Length (km) No. of station
① Yangon ~ Yangon(Circular line) 47.5 38
②Danyingone~Computer 10.5 4
③ Mahleagone ~ Ywarthargyi 16.5 11
④ Toegyanunggalay ~ Thilawah 26.7 2
⑤ Toegyanunggalay ~ Dagon 8.1 1
⑥Ohkphosu~East University 5.4 1
Total 114.7 57
Source: Traffic Data for Yangon Circular, Myanmar Railway, 2012
Currently, Myanmar Rail has 451 trainsets in daily operation including 232 passenger trains, 200 local trains, and 19 cargo trains. A travel time of a loop line is 3 hours, 3:45 am~10:15 pm, with 21 cars for 200 times and 18 diesel cars and 3 RBE locomotives.
Table 66 Train Time Table by Rolling Stock Type
Type Daily Type Daily
Express 44 Suburban 200 Mail & Other 74
Circular Mixed 66 Freight 19 Rail Car 48
subtotal 232 Total 451
Source: Traffic Data for Yangon Circular, Myanmar Railway, 2012
Annual ridership is 68 million or 190,000 persons which however is on the decline due to deteriorated and poor facilities
.
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Source: Traffic Data for Yangon Circular, Myanmar Railway, 2012
Figure 30 YCDC Railway
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The fare of Yangon railroad is categorized into an ordinary ticket for use twice a day and commutation ticket. Penalty to free ride is 10 times the normal fare
∙ Local: 100 Kyats (Foreigner, Tourist=1US$) ∙ Commutation: 1,700 Kyats (adult), 1,150 Kyats (student) ∙ Baggage: 50 Kyats per piece ∙ Operation & management: Myanma Railways of MoRT
5. Technical Review
5.1. Technical Feasibility of the Facilities
1) MRT/LRT System Summary
Advantages of railroad system include punctuality and mass transportation capacity and as shown in it also has the advantage of travel distance and transportation capacity compared to other transportation modes.
Figure 31 Transportation Capacity & Construction Cost of Railroad System
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MRT/LRT runs on the independent track and less affected by climate to maintain the highest speed but BRT is affected more by climate, especially when mixed with other transportation modes and thus the speed is lower than others.
The higher the priority to run and system operation efficiency the more the cost required. LRT or subway is built on the ground, under the ground or above the ground to secure the priority and the vehicle for automatic operation requires the higher investment cost.
When it comes to operation cost, unmanned new transportation mode requires the lower cost than manual operation system.
Construction of MRT/LRT takes usually 3 to 5 years and construction schedule and route plan need to be flexible in preparation for the change to land use or ridership.
5.2. Determination of Railroad System
1) Comparison of MRT/LRT System
MRT is usually appropriate to the route with extended travel distance in the large urban area, high population density, and traffic as well as is desirable to provide the service to main traffic axis. Construction cost applied domestically is ￦90 to 100 billion per km which is much higher than other modes and is not flexible to variable demand.
LRT is one of the urbanrailroads which is smaller than MRT and transportation capacity is 3,000~30,000pphpd. It requires less cost for civil and building work than traditional MRT and higher cost for the utomatic system but significantly less operation cost.
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Table 68 MRT/LRT System Comparison
Category MRT(heavy) LRT(light) Car/trainset 6 ~ 10 2 ~ 6 Transport capacity 20,000 ~ 80,000 3,000 ~ 30,000 (person/hour/direction) Street Tram, Monorail, Vehicle Type Electric AGT, LIM Design speed 40~60km/h (80~130km/h) 30~40 km/h (60~80km/h) 2 axles, Fixed vehicle, min. Self-steering, Vehicle selection, Curve Traffic ability Radius of gradient R = 200m Sharp Curve (R-10, 5~50m) Steep grade Traffic ability Max. Steep grade 35 Max. Steep grade 60 (R=10) Over 45 ~ 60 mil. USD/km 35 ~ 50mil USD/km Cost/km Under 100 ~ 110 mil. USD/km 80 ~ 90mil USD/km Operation cost 2.5million USD/km/year 1.5mil USD/km/year - Suitable to small/med cities - Suitable to urban main axis - Flexible operation depending on Positive - Suitable for extended route ridership -High safety - Minimized land acquisition Feature - High construction cost - High RS procurement cost - Extended schedule Negative -High O&M cost for imported - Less flexible operation depending vehicles on ridership
MRT/LRT design criteria were based on「Guideline for pre-feasibility study for road & railroad project[KRIHS]」and steel wheel for both MRT/LRT.
Table 69 Comparison of MRT/LRT Design Criteria
Category MRT LRT
Design speed 120km/h 70km/h Min curve radius R=200m R=50m Transition curve R=800m or less R=800m or less Min straight & circular 20m or more L=0.25v curve length Max slope 35‰ 60‰ or less Vertical curve when slope gap is 5‰ or more when slope gap is 5‰ or more Vertical curve radius R=3,000m R=2,000m Track gauge 4.0m 4.0m
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5.3. Review of Appropriateness of Structure Layout
1) Earthwork Plan
Based on Korea's railroad construction regulation, MRT design speed is 120km/h or less and LRT is 70km/h.
Formation width is 4.0m considering power supply, sound barrier, and maintenance convenience and track gauge are 4.0m as proposed in design criteria and trackbed width is 12.0m for MRT and 11.6m for LRT.
Figure 32 Comparison of Earthwork (earthwork) Cross-Sections
2) Bridge Plan
Based on Korea's railroad construction regulation, MRT design speed is 120km/h or less and LRT is 70km/h.
Bridge width is 10.6m for MRT and 10.2m for LRT in consideration of power supply, sound barrier, and maintenance convenience.
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Figure 33 Comparison of Bridge Cross Section
3) Station Plan
A) Summary
The station shall provide the passengers with the convenient and comfortable environment for riding and transfer and station facilities shall be designed considering train operation plan and transportation capacity. The components of the station are as
Figure 34 Comparison of Station
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B) Features of station facilities
The lounge is the first floor to MRT/LRT for the passengers and includes ticket window, exit gate, station office and other convenient facilities such as kiosk, advertisement & exhibition facilities.
Entrance facilities provide the users with the entrance and the links to public transportation system such as bus stops. Vertical circulation provides the link to the road, lounge, and platform by means of stair, escalator or elevator. Escalator and elevator are essential at the station with extended vertical circulation and vertical circulation shall be designed to accommodate the passengers during peak hours in terms of width and speed and shall be in principle equipped with the mechanical system allowing reverse rotation.
The platform is for the passengers getting on or off or transferring and platform length is dependent on the maximum length of trainset and the width is determined considering the ridership, passenger safety, and evacuation.
Support facilities shall be designed considering passenger service and station operation and include station office and equipment room.
shows the type of station proposed.
Table 70 Type of Station & Width
No Location Type Width (m) Structure S01 0km200 Underground 21.5 BOX S02 1km400 Underground 21.5 BOX S03 2km600 Underground 21.5 BOX S04 3km900 Underground 21.5 BOX S05 5km100 Underground 21.5 BOX S06 6km300 Elevated 22.0 Bridge TYPE A S07 7km600 Elevated 22.0 Bridge TYPE A S08 8km700 Elevated 22.0 Bridge TYPE A S09 10km700 Underground 21.5 BOX S10 11km900 Underground 21.5 BOX S11 13km300 Underground 21.5 BOX S12 15km000 Elevated 22.0 Bridge TYPE A S13 16km000 Elevated 22.0 Bridge TYPE A
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C) Review of bridge type station structure
The route using the median strip space excluding underground route requires installing the pier within the limited space and thus it is designed with a single column structure. Approach to the station and platform stair is designed in consideration of aesthetic effect and harmonization with the surroundings and platform and station length. Generally, the station is located near the intersection, school or government office, residential area, area without conflict with obstacles or horizontal alignment and the area allowing easy turnaround and the station may be curved or straight alignment station depending on site condition.
However, an LRT is designed in line with the road alignment, unlike MRT under the ground, and is mostly bridge type and more frequently on curve section than subway considering an R=600m requirement. But the station on curve section is not considered in this project.
Table 71 Review of Bridge Type Structure
TYPE A TYPE B
Section
∙ A simple beam structure which is ∙ Low station height which is favorable structurally stable to vertical alignment ∙ Lightweight upper structure for easy ∙ Reduced passenger circulation Advantage foundation work ∙ Enhanced vertical & horizontal ∙ Less number of column allowing more alignment space for stair and equipment room ∙ Useful space under the structure ∙ Aesthetic station landscape
∙ Extended station height which is ∙ Solar access is blocked by box unfavorable to vertical alignment structure Disadvantage ∙ Noise and vibration ∙ Increased maintenance cost due to ∙ Poor maintenance due to many doubled facilities (station office, bridge bearing shoes ticketing facilities)
Application ◯
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Structure design is based on similar projects in Korea and relevant plans as well as in consideration of structure safety, alignment condition, topographic and geological features, cost efficiency, constructability, landscape, and maintenance efficiency.
A) Determination of bridge deck
As shown in
, the deck is designed as PSC beam for the standard section and PSC girder for a long-span section.
Table 72 Bridge Deck by Section
PSC BEAM(standard) PSC BOX girder (long-span)
Section
B) Determination of Pier and Foundation
As shown in
, pier and foundation are designed by dividing into PSC BEAM for astandard section and PSC BOX for a long-span section.
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Table 73 Bridge Pier and Foundation
Standard section Long-span section
Section
C) Determination of Erection Method
As shown in
, installation method is designed as launching girder for a standard section and FCM for a long-span section.
Table 74 Branch Line Bridge Section Temporary Construction
Station plan shall be in accordance with the "Urban railroad regulation and regulation for the mobility handicapped" for passenger convenience and safety
∙ Guideline for design urban railroad station and mobility convenient facilities ∙ Improvement of mobility for the mobility handicapped ∙ Facilities for the handicapped, elderly and pregnant woman
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A) Platform
∙ Minimum width of separate and island platform is 4.0m and 8.0m, respectively. ∙ No column or obstacle shall be allowed within 1.5m from the platform edge. ∙ Platform edge shall be 50mm away from the train. ∙ Guardrail shall be provided for passenger safety. ∙ Platform length shall be determined considering the train length ∙ Platform with stair shall be extended by 2.5m at least for extra width.
B) Concourse
∙ Concourse shall be separated from passenger circulation. POM shall be available near ticket barrier which is aligned for efficient guiding and monitoring. ∙ Ceiling height shall be 3.0m or higher and natural lighting and ventilation shall be considered. ∙ Space between ticket barrier and stair shall be 6.0m to avoid congestion. ∙ No barrier shall be allowed within 4m from ticket barrier to stair entrance.
C) Equipment Room
∙ Central control room shall be easily accessible from the concourse. ∙ Ticket window shall be close to central control room. ∙ Equipment room, storage, electrical room, AC room and water tank shall be in or close to AC room. ∙ Fire extinguishing agent room shall be close to electrical room ∙ Drainage pump room shall be located at the end of platform ∙ Substation, equipment room and train operation room shall be included.
D) Type of Platform
A separate type and island type are available. Both bridge station and underground station are designed with separate type which is applicable without changing the mainline alignment as well as expandable in future and construction cost is lower than island type.
shows the types of platform.
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Table 75 Platform Types
Separate type Island type
Platform type
∙ Reduction in cost by concentrated Advantage ∙ No congestion in passenger flow vertical mobility equipment (elevator, escalator, stair)
∙ Increase in cost for vertical mobility ∙ Congestion when trains arrive at Disadvantage equipment same time
3) Track Design
A) Track Structure
The track consists of rail, fastener, sleeper and special track (turnout, crossing) and others including secondary concrete and material. The concrete track comprises the pre-stressed sleeper (mono-block) to be embedded into RC slab or two sleepers. This is a Top-down system; Rail and sleeper are adjusted and set before pouring concrete. Alternatively, plinth system may be used, but not commonly used. Slab track proposed is the proven system for MRT or LRT worldwide. As shown in track is 1435mm standard gauge, 14mm above the rail vertically.
Track bed relates to connection bar to transfer the vertical/horizontal load to viaduct by shear dowel alone; that is, grout bed is proposed to avoid lateral or vertical resistance.
B) Rail
Rail shall be cooled carbon steel standard 54E1 section according to EN 13674 Rail ApplicationsTrackRail Part 1. Two types of rail may be used; generally standard rail for mainline and wear-resistance rail on curve section with neither curve radius 400 m nor less.
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Standard rail shall be Grade 900A according to UIC 860-0, minimum hardness 300HB. Wear-resistance rail shall be Grade 1080 according to UIC 860-0, minimum hardness 320HB. shows rail section.
Signal and train control system includes ATS (Automatic Train Stop) system according to following design criteria. All signals on mainline activate the emergency brake when the train passes the stop signal to stop the train by ATS. Train run or stop received by an antenna on track loop or train is sent to ATS, which is then sent to OBCS (Onboard Computer System) that sends the signal to train brake system.
To release the brake while ATS is in operation, ATS "Reset" button/function shall be mounted in the train. ATS Balise information may be directly induced by signal lamp circuit on rail side or provided as alternative information by the interlocking system. Balise location shall be determined based on axle counter to read ATS Balise information before axle counter is occupied. This calculation shall be considered when determining antennal position to response time by train (with regard to the first wheel position) and all systems (ATS read, axle counter occupation time)
Track beacon position shall be determined considering platform stop signal position to read the recent information before the train starts. Despite route locking, train detection and
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protection signal to all circuit, remote signal or overlap signal is not provided and thus the line-of-sight is still applied to the access to all signaling. To calculate the line-of-sight operation and distance, braking distance shall be added in consideration of a 5-second driver recognition/response time.
Application of the line-of-sight mode to all signals shall allow the signal to stop the train and predict the signal. Regarding above principle, the following shall be considered.
∙ Possible line-of-sight ∙ Maximum speed intended for operation ∙ Braking performance considering the slope and response time by train brake system ∙ Effective lighting distance on track and efficiency of headlight in darkness ∙ estimated driver's response time ∙ Visibility of the signal and point mark ∙ Geography and topography of the surroundings including the road/sidewalk ∙ Surrounding facilities ∙ Configuration of train
5) Communication System
A) SCADA
Supervisory Control and Data Acquisition (SCADA) system is intended to monitor and control all M&E plant and sub-systems at station and depot and feedback the information to such SCADA.
The system receives the power from UPS (Uninterruptible Power Supply) to prevent malfunction. SCADA system shall be designed to effectively monitor and control the station facilities. SCADA system shows the system operation status in a dynamic single diagram and icon which indicates communication and control (C&C) subsystem and M&E operation.
SCADA system comprises a pair of a standby server to provide the secondary restoration control. SCADA system design and configuration shall be determined to minimize the operational risk and maximize the reliability and availability.
SCADA system
The system uses I/O digital showing various M&E operation status and PLC (Programmable Logic Controller) collecting analog data at station and depot. The control algorithm is included
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in a pair of redundancy control PLC which is used for all controls independently from SCADA system. The operator may select auto or manual control of M&E equipment using SCADA workstation and control PLC performs according to operator's indication.
B) Remote Communication
All equipment shall interface with existing systems.
a. Fiber Optical Communication System
Fiber optic dual redundancy backbone system dual ring topology consists of two rings linking to the network. Each ring works independently until one becomes inactive when a network fails. Then a ring in operation automatically overlaps the ring inactive to ensure the data flow.
This consists of two fiber optic cables at both sides of the track. Based on MPLS IP protocol (Multiprotocol Label Switching Internet Protocol), it will supplement OCC, help system, signalling, and interlocking, SCADA (Radio Communications Traction Control), CCTV, PA, CIS, security/access management system. And dark fiber (communication service) may be allocated to the third party for revenue such as MNO (Mobile Network Operators) and may provide the extra capacity for future expansion.
b. LAN/WAN Network
All stations and offices shall have a cable type LAN/WAN network which is protected from radio access by WAN and LAN are protected from the use by the employee. Such network interfaces through the high-speedfiber-optic network.
Internet access through WAN provides smart phone users with travel information or train operation schedule that cannot be obtained by CIS and is accessible to the Internet at the station.
c. Structured Cabling
Structured cabling describes the integrated installation and design topology. As a minimum performance to ensure the application program, cabling standard developed by IEEE and ATM will be the reference for the application program.
Category x cable in general (category refers to the whole phone of Cat) includes Cat 5, Cat 5E, Cat 6, Cat 6A, Cat 7 and Cat 7A. These cables have different capacity to deal with bandwidth/ frequency, distance to support such bandwidth, copper and number of the strand, EMI (Electro-Magnetic Interference) and Alien Cross Talk interference.
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d. Radio Communication System
TETRA developed by ETSI is used for communication among OCC (Operation Controlling Center), LRT operator, passenger, maintenance person and security person. TETRA provides the proven technology used widely in Asia and Europe which is cost efficient and provides voice and data service to many applications. It also provides a gateway to PSTN (Public Switched Telephone Network) and other technologies for at least 20 years. Radio-based communication allows the following.
∙ Link to emergency services such as security forces, police, fire brigade, and ambulance. ∙ Option to link to the public cell network when necessary ∙ Link to IP-based local phone network ∙ Connectivity to PSTN for designated person
A wayside structure such as base station or relay station shall be at the station. Desktop wave is needed to determine the radio network coverage and number of base station and when difficult to build the pole or radio tower for station radio equipment room, the radio signal is sent through radiating cable.
UPS shall be available for a radio system for an 8-hour operation in maximum and TETRA system is recommended for a specific work for reasons above.
e. CCTV
CCTV system is to monitor the activities at the station, parking lot and train and passenger circulation at major facilities for OCC. A comprehensive central recording system is included in RAID5 technology-based design to record the image at station and infrastructure, which may be replayed as needed for the police or security force to provide the information.
f. PA System
PA system provides the passenger on a train or at the station and is also used to send the warning to the employees in an emergency. Radio network interface is needed to allow the broadcasting on the train.
6)Substation for Traction Power
Interval and location of as substation for traction power are determined based on simulation. The location is determined considering traction power, track, signal, communication, electrical load and facility operation and a basic plan. Substation shall be designed to prevent the power distribution voltage from falling below the requirements and conductor temperature and rail
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voltage shall not exceed the maximum allowable values.
Traction power supply network shall receive the power from government's power transmission network which supplies AC. The substation is the essential facility to supply the power from PLN network to LRT network. Substation converts AC 150kV to 20kV AC (MV) 20kV AC (MV) is supplied to LRT network, then AC is rectified to DC and voltage is changed from 20kV MV AC to 750V DC. shows the configuration of traction power substation.
Figure 37 Configuration of Traction Power Substation
For reasons of redundancy and reliability, HV is supplied to LRT network through two feeders linked to two independent circuits of PLN transmission line.
Reliability and stability of power supply are very important in MRT/LRT operation. Power failure for LRT running on the elevated line shall not be allowed and for such reason, reliability and stability of PLN and LRT power network are more than important.
The capacity of LRT traction power network in n-1 system enhances the reliability and stability of overall traction power network. From PLN network viewpoint, two elements are expected to make a commitment to improving the reliability and stability.
As the power is received by two lines from two independent PLN network, redundancy is granted. shows the general configuration of two substations.
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Figure 38 General Configuration of Two Substations
Thus, to secure the power supply redundancy and stability for effective and safe operation, it is desirable to consider two independent and physically separated substations.
7) Rolling Stock System
The car with steel wheel among MRT/LRT is diesel or electric passenger car. The train in such a type is used for an extended intercity line or inter-regional line in an urban area (between downtown and outskirts).Thus, the vehicle proposed in this report was evaluated with Electric Multiple Unit (EMU) and Diesel Multiple Unit (DMU)
A typical set of DMU includes following three types.
∙ Driving, power, and car (DPC): It has a traction motor/transmission and motor. Because of the motor, a number of the passenger may be reduced compared to trailer car. ∙ Driving, trailer, and car (DTC): It has traction motor/transmission and driver's cab but has no power.
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∙ Trailer car (TC): Car without traction motor In line with increased traffic demand, a 6-car or 9-car set is possible. As passenger car may be added to accommodate the increased demand, DMU set cannot be defined specifically. EMU set has three types as follows. ∙ Driving car (C), power car(B) and passenger car (A) EMU generally has one power car for every 3 cars and a 12-car set is a typical arrangement. Several pantographs are used for a single coach and pantograph is mounted on the roof of the same car for power.
A) EMU System
EMU is appropriate to the operation in outskirts and reaches to high-speed in a short time with high efficiency. Mainly two types of EMU are used, 1.5KV DC and 25KV AC and AC-DC EMU.
EMU is a multi-unit train which comprises the carriages using electric power. Electric power traction motor is contained in one or more carriages and thus no separate locomotive is required for EMU. EMU is mostly used for passenger train but some of them are designed to perform particular functions such as postal, cargo or particular passengers. EMU comprises two or more semi-permanent-fabricated carriages but a single unit electrical railroad vehicle is also classified into EMU.
The cars of EMU set are functionally classified into power car, train, driving car, and trailer car. Each car has various functions such as a motor car or power car.
∙ Power car has the system to induce the power from overhead catenary or pantograph. ∙ The train runs with traction motor and is coupled with power car to avoid the link between HVcars. ∙ Driving bogie is similar with the driving car. EMU has two cars behind. ∙ Trailer car has no power or traction power similar with passenger car with the locomotive.
It is used to collect power and supply power to the traction motor. Traction is applied to all axles and supplies the high acceleration. The additional car provides the dynamics. Climbing power of EMU is generally higher than DMU.
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B) DMU System
a. Design
The diesel engine is allocated to engine bay or floor frame and operation control are possible by both sides and either side or without them.
b. Type
DMU is classified depending on a method to transfer the power to the wheel.
- Diesel-mechanical In DMMU, rotation energy from the engine is transferred through the gearbox and train wheel. Gear is shifted manually by the driver but usually shifted automatically in most of the application programs.
- Diesel hydraulic In Dieselhydraulic MU, hydraulic converter transfers diesel engine power to the wheel. Part of the system uses the hydraulic-mechanic hybrid system and generally, it reduces engine rpm and noise.
- Diesel-electric In Diesel-electric MU (DEMU), diesel engine activates the motor that generates the electric power and the current generated is supplied to the wheel or cart in the same way as existing diesel-electric system.
C) Advantages of EMU and DMU
a. Advantages of EMU
EMU has widely used for commuter train and regional railroad worldwide thanks to its quick acceleration and environment-friendly characteristics. EMU generating less noise than DMU plus locomotive is suitable for night operation because it avoids disturbing the residents living along the route.
Tunnel design for EMU is simpler as it requires no consideration of exhaust gas. But the trainset shall be arranged in even number only such as 4, 6 or 8 cars and even the failure of a single car may cause to stop the operation of the whole trainset.
According to the study, EMU has competitiveness in cost for a short route with diesel locomotive plus DMU thanks to its high ridership and frequent service cycle. Construction cost
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is depending on route length but cost competitiveness supersedes construction cost considering operation period and environmental advantage.
b. Advantages of DMU
DMU has good expandability because additional passenger cars may be included and transportation capacity may be adjusted in consideration of demand and power needs not to be adjusted depending on train size or weight.
As each unit has the mobility independently, additional power is automatically increased whenever adding the unit. DMU has a superior acceleration capacity and more driving axles and thus is more suitable for a short route compared to existing locomotive plus asynchronous carriage.
When distributing the traction power to passenger cars, it may supplement the vulnerability in train operation caused by a single point failure. As diesel engine is less dependent, overhead catenary or electrified track may not be necessary and thus system cost could be reduced.
D) Recommendation of Vehicle System
A sufficient and stable power supply is required when using EMU system in Yangon which is estimated at 100MW. Thus, before introducing EMU, Myanmar government shall establish the plan to stably supply the power.
5.5. Drone Survey
1) Definition of Drone
Drone we use today was first integrated into a remotely piloted aircraft system (RPAS) from unmanned aerial vehicle in accordance with Chicago Convention on December 7, 1944. Since then it has been called as Drone, UAS, UAV, and RC.
The drone has been divided into the private sector and national defense sector since it was first developed for military use in the World War I. Alongside the growing market in private sector, it is expected to increase market size to $1.3 billion until 2024.
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Figure 39 Global Drone Market SizeTrend
2) Fixed Wing Drone and Rotary Wing Drone
In private sector, the drone is categorized into a fixed-wing drone and rotary wing drone. A fixed-wing drone has the faster flying speed and higher flight height but it is vulnerable to bad weather. Also, it is difficult to take various photographs. Moreover, it is costly compared to rotary wing drone.
For this Myanmar project, a rotary wing drone was used. Consequently, mapping and high-quality geospatial information were obtained.
3) Cases of Using Drone for Construction Projects – Surveying
Using a drone in a large construction project (i.e. highway, railroad) leads to collecting data from a broad area within a given time constraint and more accurate data could be collected faster than the traditional survey performed previously. Its use is extended not only to the surveying but to the inspection of the work performed and facility maintenance for large projects. However, the drone has been used for limited purposes at the construction sites during the entire lifecycle (plan, design, construction, maintenance, and demolition)
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4) Cases Study: Applying Drone to Railroad Project in Yangon, Myanmar
① Location and Scope of Drone Survey
a. Yangon, Myanmar
With Yangon central station as a commencement point, the route survey of the Yangon circular line for refurbishment was carried out using a drone. The survey of the total 4 segments was carried out as shown in Figure 40. However, drone survey of Yangon central station, which is designated as historic relic was strictly prohibited. Therefore, the survey started with the neighboring segment. The 4th point was also prohibited because of Yangon International Airport in the close vicinity, the survey point was rearranged for photographing.
Figure 40 Drone photographing site and Yangon line route with drone survey mark
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② Drone Survey Method
a. Flight and photographing by Rotary wing drone
A rotary wing drone for data collection of a railway alignment to be planned in Yangon, Myanmar
was Chinese-made DJI Phantom 3 and the specification is shown in Figure 41.
Figure 41 DJI Phantom 3 Advanced
Classification Description DJI(China) Phantom 3 Manufacturer Advanced Diagonal length 350 mm excluding propeller) Weight 1280g Battery 6000 mAh LiPo 2S Max flight time 23 minutes Operating speed 57.6 km/h
Using the two drones with the above specifications in Figure 41, two flights were made photographing over the designated flight course and thus cross-photographed photos were obtained. Flight altitude was 100m and photographing overlap was 80%. Aerial photographs obtained from DJI Phantom 3 Advanced drone are shown in Figure 42.
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Figure 43 Drone Operator Figure 44 Ground Control Point
2) Results from Application of Drone Survey at Three Points in Yangon Railroad Sites
① Drone Survey Data Process
a. Drone survey point (Hledan Junction) analysis result
As shown in Figure 45, two drones flying 62.4m above the ground level were used to obtain 276 photos for the area of 0.0933 km2.
Figure 45 Analysis of drone survey result (Hledan Junction)
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After converting the survey data from 4 Ground Control Points based on the photos taken, they were converted into the digital model and the elevation of the site could be accurately confirmed.
b. Result of drone survey point (8 Mile Junction) analysis
As shown in Figure 46, a total of 501 photos were obtained for the area of 0.397 km2 using two drones flying 113m above the ground level.
After converting survey data from 4 Ground Control Points based on photos taken, they were converted into the digital model and the elevation of the site could be accurately confirmed as shown in Figure 7.
Figure 46 Drone survey result (8 Mile Junction) analysis
c. Drone survey point (AD Junction) analysis result
As shown in Figure 47, a total of 497 photos were obtained for the area of 0.541 km2 using two drones flying 117m above the ground level.
After converting survey data from 4 Ground Control Points based on photos taken, they were converted into the digital model and the elevation of the site could be accurately confirmed as shown in Figure 8.
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Figure 47 Drone survey result (AD Junction) analysis
3) Implication from drone survey
① Implication from drone survey and plan
The survey of railroad alignment using drone makes it possible to perform the survey of extended area accurately in a short time, compared to the existing survey method. In future, it is expected to provide more practical and accurate topographical data by developing a digital model to a 3D model.
6. Estimate of Total Project Cost
6.1. Review of Cost Estimate by Project Item
1) Composition of Total Project Cost
The total project cost is divided into direct project cost and indirect construction cost which comprise the following elements.
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Table 76 (Direct /Indirect Construction Cost)
Category Items Note
Direct construction Direct construction cost including material cost, labor cost,
cost equipment cost and general expenses.
Other costs excluding direct construction cost but including basic Indirect design (proposed design) and implementation design,
construction cost investigation, construction supervision, ancillary cost, system engineering (SE) and vehicle procurement.
2) Estimate of Direct Construction Cost
To estimate the construction cost accurately, structure and construction method shall be reviewed in detail in consideration of construction plan, alignment, and geological condition and is possible at the stage of the feasibility study and a basic plan.
Construction cost reviewed in this report may be changed according to more specific construction plan and method and cost estimate for economic feasibility shall be implemented as follows.
∙ Unit cost by activity was based on values suggested in KDI's「Standard guideline for pre-feasibility study on road･railroad project」 ∙ The volume of work for trackbed structure was based on alignment plan using a topographic map and earthwork and bridge route estimated by site investigation and detailed segment determined from a horizontal alignment in consideration of topographic conditions. ∙ The cost for track, building, power, signal, and communication was estimated based on unit cost suggested in KDI's「Standard guideline for pre-feasibility study on road ･ railroad project」 ∙ The previous year before implementing the economic analysis was defined as the base year and all benefits and costs are estimated and thus 2016 was set as the base year and cost estimate was carried out after determining the unit cost. ∙ 10.0% was added to the 2013 cost estimated according to the「Standard guideline for a pre-feasibility study on the road･railroad project (5th edition)」for 2016 cost.
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3) Estimate of Direct Construction Cost
The cost estimate was made based on following according to the rates provided by Korea Engineering & Consulting Association.
After estimating the cost by stage (basic design, implementation design, construction supervision, responsible supervision (complex) and SE), other costs (ancillary expenses and site investigation)
SE(Systems Engineering) cost is for system integration to maximize the function and performance of technology and method with regard to railroad system design, development, production, manufacture, installation and operation and is estimated by applying 5% of system cost (electrical, signal and communication) in accordance with the 「Standard guideline for pre-feasibility study on road ･ railroad project」
Site investigation cost is for the survey, ground/geological investigation, electrical, communication, and water & sewage obstacles and substation location for power supply.
4) Estimate of Project Cost by Railroad System
Construction cost is classified into mainline, station, multi-level crossing, track, building, system and depot construction and 10% of construction cost are applied as a VAT. Ancillary expenses are classified into design, supervision, investigation and survey cost and 10% of construction cost is applied. Land acquisition was excluded because of no data on local land acquisition process and contingency was estimated at 10% of construction cost and ancillary expenses.
Because of estimating project cost by the system based on-site investigation, the cost for LRT system was 50% of MRT system and furthermore, easy land acquisition and financing are expected and the cost breakdown of the system is shown in
Direct construction cost $1,495,000,000 $785,610,000
Ancillary expenses $140,670,000 $77,440,000
Contingency $163,530,000 $86,300,000
RS procurement $62,550,000 $35,740,000
Total cost $1,861,420,000 $985,090,000
According to the analysis of total cost of MRT system, total direct construction cost was $71.17million/km and the total project cost $88.64million/km and for LRT, direct construction cost was $37.41million/km and the total project cost $46.91million/km.
5) Estimate of project cost for MRT system
The total length of the Yangon~ Mingalardon airport railway is planned as21.00km, which consists of earthwork section of2.80km long, bridge section of 3.85km long and tunnel section of7.5km long with 8 underground stations with a length of 1.60km.Also, 5 elevated stations with 5.25km in length and 1 depot are planned.
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Table 78 Estimate of Project Cost for MRT System
Activity Specification unit quantity unit/cost $million Remarks A. Direct Cost 1,494.66 A-1. Civil 1,058.72 At-G km 2.800 7.09 19.85 Bridge km 3.850 19.23 74.02 A-1-1. Mainline Reinforcement Tunnel NATM km 7.500 21.43 160.71 excluded U/G F2 8 53.18 425.41 A-1-2. Station Elev. 5 65.95 329.77 A-1-3. Vent 6 8.16 48.95 A-2. Track 53.87 A-2-1. Mainline D/track km 21.0 2.57 53.87 A-3. Building 111.72 U/G 8 9.83 78.63 A-3-1. Station Elev. 5 6.62 33.08 A-4. System 134.19 Traction U/G 3 km 21.0 1.76 36.95 Transmission U/G km 21.0 0.23 4.75 A-4-1. Electricity S/S km 21.0 0.02 0.45 Steel km 9.1 1.63 14.85 Tunnel Catenary O/H km 11.9 0.87 10.41 General km 21.0 0.72 15.03 A-4-2. Signaling OCC 1 6.00 6.00 General km 21.0 1.38 29.05 A-4-3. Comm. OCC 1 16.71 16.71 Light/Heavy A-5. Depot 30 0.0092 0.27 maintenance A-6. VAT (A1~A5)×10% 135.88 B. Auxiliary Expense 140.67 B-1. Design 52.31 B-1-1. B/D (A1~A5)×1.28% 17.39 B-1-2. I/D (A1~A5)×2.57% 34.92 B-2. Investigation/survey (A1~A5)×1% 13.59 B-3. Supervision 52.96 B-3-1. Design (A1~A5)×0.22% 4.18 B-3-2. Responsible (A1~A5)×3.59% 48.78 B-4. Ancillary (A1~A5)×0.17% 2.31 B-5. SE A4×5% 6.71 B-6. T&C 50% of initial o/cost B-7. VAT (B1~B6)×10% 12.79 C. Contingency (A+B)×10% 163.53 D. RS procurement car 28 2.23 62.55 E. Total cost (A+B+C+D) 1,861.42
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6) Estimate of project cost for LRT system
To compare the MRT system, this section also has the total length of the segment linking Yangon to Mingalardon of21.00km. (Earthwork: 2.80km, Bridge: 3.85km, tunnel: 7.5km, 8 underground stations: 1.60km, 5 elevated stations: 5.25km, 1 depot)
Table 79 Estimate of Project Cost for LRT System
Activity Specification unit quantity u/cost ￦million Remarks A. Direct Cost 785.61 A-1. Civil 461.59 At-G km 2.800 7.09 19.85 Bridge km 3.850 19.23 74.02 A-1-1. Mainline Reinforcement Tunnel NATM km 7.500 23.39 175.45 excluded U/G F2 8 15.24 121.88 A-1-2. Station Eleven. 5 4.52 22.61 A-1-3. Vent 6 7.96 47.77 A-2. Track 52.02 A-2-1. Mainline D/track km 21.0 2.48 52.02 A-3. Building 66.23 U/G 8 3.44 27.52 A-3-1.Station Eleven. 5 7.74 38.71 A-4. System 134.19 Traction U/G 3 km 21.0 1.76 36.95 Transmission U/G km 21.0 0.23 4.75 A-4-1. Electricity S/S km 21.0 0.02 0.45 Steel km 9.1 1.63 14.85 Tunnel Catenary O/H km 11.9 0.87 10.41 General km 21.0 0.72 15.03 A-4-2. Signaling OCC 1 6.00 6.00 General km 21.0 1.38 29.05 A-4-3. Comm. OCC 1 16.71 16.71 A-5. Depot Light/Heavy maintenance 18 0.01 0.16 A-6. VAT (A1~A5)×10% 71.42 B. Ancillary expense 77.44 B-1. Design 27.50 B-1-1. B/D (A1~A5)×1.28% 9.14 B-1-2. I/D (A1~A5)×2.57% 18.35 B-2. Inv/survey (A1~A5)×1% 7.14 B-3. Supervision 27.84 B-3-1. Design (A1~A5)×0.22% 2.20 B-3-2. Responsible (A1~A5)×3.59% 25.64 B-4. Ancillary (A1~A5)×0.17% 1.21 B-5. SE A4×5% 6.71 B-6. T&C 50% of initial o/cost B-7. VAT (B1~B6)×10% 7.04 C. Contingency (A+B)×10% 86.30 D. RS procurement 16 2.23 35.74 E. Total cost (A+B+C+D) 985.09
126 Ⅷ. Recommendation on policy: Airport Rail Link for Yangon-Mingalardon-Hantharwaddy
Ⅷ. Recommendation on policy: Airport Rail Link for Yangon-Mingalardon-Hantharwaddy
1. Project Summary
Myanmar government, in a bid to improve the air traffic service in Yangon, which is the national economic and tourist hub, established Mingalardon International airport expansion plan. And Dept. of Civil Aviation (DCA) has pushed forward with an expansion plan to increase the capacity from 2.7 million to 3.7million until 2013.
And to provide the foreign visitors with an improved service, besides the 2nd Yangon airport project, the private investment plan for Hanthawaddy International airport and other airports was developed. Hanthawaddy International Airport is planned at Bago city, 77km north of Yangon, with the area of 3,642ha. Since it is first planned in early 1990, no progress, in fact, has been made an international bid for construction is scheduled in 2012.
In this chapter, environment-friendly railroad system that links Hanthawaddy airport, Mingalardon airport and Yangon city are reviewed to provide the better service to the foreign visitors by linking Yangon city to Hanthawaddy new airport and furthermore, it is aimed to provide the people with urban railroad transportation service offering the punctuality, quick travel and convenience.
2. Review of Cost Estimate by Project Item
2.1. Review of Proposed Route
The route proposed starts from the depot of Yangon ~ Mingalardon airport line to Hanthawaddy airport in the north of Bago City through Mingalardon Industrial district and Hlegu.
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Earthwork section accounts for 80% of whole route and bridge section to cross the river and road and the tunnel section in a mountainous area.
Depot site is planned at open space in the north of Hanthawaddy International airport. shows the route and station site.
Figure 48 Proposed Route of Mingalardon AirportHanthawaddy Airport
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3. Comparison of Total Project Cost of MRT/LRT System
The total project cost was reviewed based on the chapter VII Estimate of the standard of project cost and the trackbed for the estimate is shown in
. The total length of the Mingalardon ~ Hantharwaddy Airport Rail Link is 58.62km and the details are as follows: (Total Length: 56.82km (Earthwork: 45.02km, 23 Bridges: 4.3km, tunnel: 7.5km, 6 Stations (above ground). and 1 depot.
3.1. Cost Estimate for MRT System
Table 80 Cost Estimate Details for MRT System
Activity Specification unit Quantity Unit/cost $million Remarks
A. Direct Cost 1,497.40
A-1. Civil 881.61
At-G km 45.02 7.09 319.22
A-1-1. Mainline Bridge km 4.30 19.22 82.63
Tunnel NATM km 7.500 21.43 160.71
A-1-2. Station Ground 2P 2L 6 53.18 319.06
A-2. Track 145.77
A-2-1. Mainline D/track km 56.82 2.57 145.77
A-3. Building 27.72
A-3-1. Station Ground 2P 2L 6 4.62 27.72
A-4. System 305.71
Traction U/G 3 km 56.82 1.76 99.97
Transmission U/G km 56.82 0.23 12.85 A-4-1. Electricity S/S km 56.82 0.02 1.22
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3.2. Cost Estimate for LRT System
Table 81 Cost Estimate Details for LRT System
Activity Specification unit Quantity Unit/cost $million Remarks A. Direct Cost 1,255.22 A-1. Civil 668.71 At-G km 45.02 7.09 319.22 A-1-1. Mainline Bridge km 4.30 19.22 82.63 Tunnel NATM km 7.500 23.39 175.45 A-1-2. Station Ground 2P 2L 6 15.24 91.41 A-2. Track 145.77 A-2-1. Mainline D/track km 56.82 2.57 145.77 A-3. Building 20.64 A-3-1. Station Ground 2P 2L 6 3.44 20.64 A-4. System 305.71 Traction U/G 3 km 56.82 1.76 99.97 Transmission U/G km 56.82 0.23 12.85 A-4-1. Electricity S/S km 56.82 0.02 1.22 Catenary Steel km 56.82 0.87 49.71 O/H km 56.82 0.72 40.67 A-4-2. Signaling OCC 1 6.00 6.00 General km 56.82 1.38 78.60 A-4-3. Comm. OCC 1 16.71 16.71 A-5. Depot Light/heavy maintenance 50 0.0055 0.28 A-6. VAT (A1~A5)×10% 114.11 B. Ancillary expense 128.75 B-1. Design 43.93 B-1-1. B/design (A1~A5)×1.28% 14.61 B-1-2. I/design (A1~A5)×2.57% 29.33 B-2. Inv & survey (A1~A5)×1% 11.41 B-3. Supervision 44.48 B-3-1. Design (A1~A5)×0.22% 3.51 B-3-2. Responsible (A1~A5)×3.59% 40.97 B-4. Ancillary expense (A1~A5)×0.17% 1.94 B-5. SE A4×5% 15.29 B-6. T&C 50% of initial O/cost B-7. VAT (B1~B6)×10% 11.70 C. Contingency (A+B)×10% 138.40 D. RS procurement car 30 2.23 67.02 E. Total cost (A+B+C+D) 1,589.39
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Because of estimating project cost by the system based on-site investigation, the cost for LRT system was lower than MRT by 20% and furthermore, easy land acquisition and financing are expected and the cost breakdown of the system is shown in
According to the analysis of total cost for MRT system, direct construction cost was $31.37million/km and the total project cost $33.87million/km, while LRT system was $22.09mil/km and $27.97million/km, respectively.
4. Proposal for Staging Construction
According to the preliminary feasibility study on route Yangon~Mingalardon Airport, Yangon~Hanthawaddy Airport of Myanmar Yangon railroad upgrade project, it is desirable to implement it as a single project by integrating two routes Yangon~Mingalardon Airport~ Hanthawaddy Airport as proposed.
When integrating to Yangon~Mingalardon Airport~Hanthawaddy Airport, it will run through Mingalardon Industrial, Hlegu Township and Bago City which would be favorable in terms of ridership and cost efficiency. Implementing the whole route at a time at the current situation would be difficult.
Thus as the first stage, we propose to implement Yangon ~ Mingalardon Airport first and then the second stage, Mingalardon Airport~Hanthawaddy Airport, depending on the situation such as new airport construction.
As reviewed above, the performance of RS system (MRT/LRT) was similar each other and thus a simple comparison is not meaningful. But as shown by foreign cases, LRT system is
132 Ⅷ. Recommendation on policy: Airport Rail Link for Yangon-Mingalardon-Hantharwaddy
usually applied to relatively a short route such as airport line while MRT is used for a long route more than 15km.
∙ Automatic ∙ Unmanned and ∙ Manual low operation ∙ Low earthwork ∙ Urban loop line, cost construction cost ∙ Highly responsive commuter line ∙ 15km or shorter ∙ Large capacity for to demand Advantage ∙ 15km or longer route mainline variation route ∙ Short distance ridership in urban ∙ Low RS cost between stations area Advantage ∙ Low structure cost & ∙ Good landscape disadvantage ∙ Manned & high operation cost ∙ High RS ∙ Small capacity to ∙ Longer distance procurement & meet mainline ∙ Low responsive to between stations operation cost ridership Disadvantage demand variation ∙ High construction ∙ Low capacity to ∙ Small &
cost in urban area meet mainline inconvenient ∙ Heavy, noisy and ridership space vibration
Proposal ◯ ◯
Given the Phase-I segment, the Yangon~Mingalardon Airport railway will pass through the downtown, an LRT is strongly recommended for a short distance route, and low structure cost, good landscape effect and good accessibility from the airport to downtown, while the Mingalardon~Hanthawaddy Airport railway as Phase-II segment will link Yangon to Bago and is mostly earthwork section that requires low cost. An MRT is recommended considering a large amount of transportation. In future, the linkage between MRT for the suburban area and LRT for the downtown needs to be made to increase ridership.
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5. Financing Plan for Urban Rail Transit
5.1. Financing Status
The total length of railroad network in Myanmar is 5,844km over 11 routes in operation as of 2012. A narrow-gauge railway which was built during the Colonial Period still remains used, the operation speed is very limited and deteriorated car, track, sleeper and signal system threatens the operational safety. The Myanmar government (MOTC) has been pushing ahead with 13 medium-term projects and 8 long-term projects for railroad refurbishment by stage in a bid to deal with increasingly growing traffic congestion and environmental problems. MR attempts to carry out the projects through foreign loans and ODA, which, however, suffers difficulties. Financing for civil work, E&M system and rolling stock using EDCF or ECA or development credit is a must. Financing available is categorized into ODA through MDB and private investment through PublicPrivate Partnership (PPP). Given the financial requirement more than $1 billion for this project, financing by ODA requires co-financing with MDB. The Myanmar government has yet to establish a financing plan through MDB and thus financing through MDB remains uncertain. Alternatively, private investment through a PPP project is available. In this case, considering less demand for investment in the northern region, a high risk of demand fluctuation and a large loan from the financing market, availability payment (AP) with high investment stability would be appropriate. But since no project using AP has yet to be performed in Myanmar, improvement of various legal systems and training for governmental officials are required.
5.2. Finance for Export Support
Export credit agency or investment insurance agency which is known as Exporting credit agency (ECA) is the private or quasi-government agency which plays an intermediary role between the government and exporter. Financing is made in the form of either or both credit (financial support) or credit insurance or guarantee (pure cover). ECA may provide credit or cover for its own account. Export credit provided officially may be linked to ODA in two ways. First, it may be linked to ODA while financing the same project (combined credit). Export credit is subject to buy it credit-issuing country and thus the whole package is classified into tied aid credit even in the case that ODA part is untied. Second, tied aid credit is similar to export credit, except interest rate, the term of the loan (without paying principal) and repayment condition.
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Such credit is the minimum requirements of "Softness" and is separated from export credit at the request of OECD. "Softness" is measured to compare with the same present value of the credit under a commercial condition which is standardized to present value. Such difference is represented in % and is called Concessionality Level. As such, the subsidy is 100% Concessionality Level while commercial credit is 0%. The higher the Concessionality Level more looks like ODA the conditional aid credit, and the lower the Concessionality Level more looks like the export credit. Commercial Interest Reference Rates (CIRR) is the official loan interest rate of export credit agency and is determined based on a national bond issued in the currency of the relevant country. When it comes to KEXIM, CIRR is based on the earning of a 5-year national bond which is updated and notified every 6 months. In ODA financing plan and co-financing and PPP financing, private borrowed capital is all assumed to be provided based on ECA or direct loan of KEXIM based on ECA.
Table 84 Predicted ECA interest rate
Long Term Classification CIRR in 2017 Risk Premium Total Margin
ECA for ODA 2.91% 0.75% 1.34% 5.00%
ECA for PPP 2.91% 0.75% 2.34% 6.00%
5.3. Economic Cooperation Fund for Developing Country (Development Finance)
Since 2016, KEXIM has provided economic cooperation fund for new developing countries which is dubbed Development Credit as new financing source at a low-interest rate, while supplementing the gap between procurement interest rate and lending interest rate by government fund. Influenced by slow global economic growth and external uncertainties such as BREXIT, economic cooperation with developing countries with growth potential is more than important to promote our country’s GDP growth. But amid China (established Asian Infrastructure Investment Bank, One Belt One Road Growth Strategy) and Japan (Economic Cooperation Infrastructure Strategy, ₩230 trillion fund for infrastructure export including high-speed rail) have expedited their marketing efforts, our export financing to support businesses in the global market is limited and inferior in terms of interest rate, duration and scale, as compared to the competitors (A 10-year bond procurement interest rate (’16.6) : KfW(Germany) 1.9%, AFD(France) 1.8%, JBIC(Japan) 2.0%, KEXIM(Korea) 2.4%) and EDCF is relatively small scale, long-term and low interest rate which is difficult to finance for a large
136 Ⅷ. Recommendation on policy: Airport Rail Link for Yangon-Mingalardon-Hantharwaddy
scale railroad project (Project approved (US100 mil or more): (‘11) 25/1→(‘12) 17/2→(‘13) 21/4→(‘14) 28/3→(‘15) 19/4) At the economic ministries’ meeting in August 2013, it was decided to introduce development credit using borrowing resources to promote the contract for the projects in developing countries. At the meeting in November, framework and legal base were structured to introduce new financing resources through 「Measures to promote development credit 」and in January 2014, a revision to KEXIM Act was made to provide the basis for a separate account at KEXIM. In January 2016, a revision to Economic development cooperation fund for “Secondary supplement” was completed, thereby laying the foundation for implementing development credit, which is a new financing support means to lay the foundation for our businesses to develop the overseas market as well as promote economic cooperation with developing countries. Financing will be made by borrowing the fund (KEXIM bonds) and fund management will be implemented as a low concessional loan which is lower than procurement rate. The gap between two interest rates will be supplemented by government fund. For instance, EDCF is high concessional loan with an interest rate of 0.01~2.00%, while export credit is a policy loan with an interest rate of 5% or higher, and development credit is the fund to supplement the blind spot between ECDF and export credit in a bid to help our businesses develop the overseas market. Loan-receiving countries are designated among the countries with a certain level of credit in consideration of the risk (D1 or higher according to KEXIM classification). The support will be, in principle, untied to comply with the ODA rules. According to the OECD rules, the tied loan shall be limited to i) export credit complying with the market interest rate, and ii) high concessional support for the non-commercial project in low-income countries. Interest rate and loan period are dependent on market conditions, credit rate,and agreement, but the interest rate is 2~4% and the period is less than 15 years. Due to the limit of ECDF financing, the project for more than U$100 mil is limited. But, when using untied development credit or ECDF with a low-interest rate as required by loan-receiving country, it is possible to extend to a large-scale railway project. Accordingly, the previous financing by the Korean government with EDCF + export credit will be changed to ECDF + development credit + export credit, which will help promote the negotiation with the beneficiary countries in future.
5.4. PPP Financing
When using a variety of contract types for private investors, financing for an urban railroad project and project financing system could be effectively determined. Project financiers will seek the most suitable financing structure by reviewing the proposals which would have an influence on important factors to be considered such as affordability, value for money, risk transfer and project feasibility. As financial agreement generally expires at the late development stage, the project planner shall predict the effect of their decision before receiving
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a feedback from the final investors. In fact, it may be necessary to readjust the project in consideration of financing. When adjusting the public interest and financing at the feasibility study stage, understanding of financial consideration for an urban railroad project is a must. The public agency shall recognize that private investment expects reasonable earnings and the developer and investor would take a risk when they could expect the corresponding compensation. A private investor, at the planning stage, shall consider how to collect the earnings from the development and implementation. PPP is not for the non-profit project and earning at a certain level is needed. Without understanding this, project financing is impossible or lack of investment at a later stage is unavoidable. Urban railroad project requires a huge financing, usually $1 billion, which often brings about the burden and failure of reasonable financing often results in the failure of the project after the initial planning stage.
5.5. Private Equity Fund (PEF)
Interest in overseas investment project by financial investors (FI) who expect the dividend and earnings are increasingly growing, which helps improve the fundraising environment for an overseas project. At the current interest rate, FI begins turning to overseas projects from a stable investment with the expectation for a high earning rate. FI prefers a joint investment with the strategic investor (SI) over independent investment as well as an indirect investment through the fund over direct investment to diversify the risk. Depending on the project, it is the common practice to invest ₩10billion to 50billionby 3 to 7 FIs for 40~80% of the total project cost. Using fund as the vehicle is intended to tie FIs who have various interests to a single package and prevent the unknown risk by making the fund a clean company. Considering the variation of investment strategies by FI to strengthen the alternative investment, FI expects stable earnings while the developer expects to finance without interference and risk diversification which brings about a Win-Win outcome. Considering the FI’s preference of joint investment, it would be effective when using the King Pin such as a national pension.
138 Ⅷ. Recommendation on policy: Airport Rail Link for Yangon-Mingalardon-Hantharwaddy
Table 85 FI’s investment tendency
Category Investment tendency
∙ Preference of the bonds known as more stable asset ∙ Stable earnings than high profit and a short-term (2-3 years) than a long-term - Domestic pension/fund’s target is 4.5~5.5% (as a whole) - Bond and share for 2.0~3.5%, alternative investment for 6.0~8.0% Pension& ∙ Domestic bonds account for 40% or more of pension & funds National funds/insurance pension 53.0%, private school pension 43.5%) and low alternative company investment - Alternative investment of pension & funds is 11.0% and 14.0%, respectively ∙ Expected earnings of alternative investment by conservative national pension is 6% at least and 7~9% would be satisfied.
∙ The procurement interest rate is more than 4% and has more alternative Mutual aid investmentthansharesorbonds. association ∙ Most of associations have more than 40% of alternative investment ∙ It prefers aggressive investment and expects 8% or more earnings
Alternative Investment refers to the investment in real estate, infrastructure or resources to share or bonds.
PEF, which was first introduced in 2004, totaled 383 in number and ₩62 trillion in value at the end of 2016 and small PEF is on the rise now. Small PED accounts for 73% of the total, and the mean investment agreed per PEF in 2016 was ₩86.1billion which tends to be smaller which is attributed to an increased PEF which is established after determining the investment project. Pension & funds, which are the main investor in PEF, lead to a growth in volume. Alternative investment by National pension and fund accounts for 52% and in line with such tendency, investment in PEF amounted to ₩15.9 trillion at the end of 2016 or 25.6% of total agreed investment in PEF. Major investors in PEF include pension & funds (51%), private enterprises (26%), financial companies (20%) and private investors (3%), but direct involvement in the management of invested companies is only 25.7%. That is, the role of FI who seeks dividend and interest earnings in PEF is considerable. According to the interview with the investors, financial institutions who invested in an urban railroad project prefer PEF. Participants in PED are mostly strategic investors, financial investors and construction investors who require various Return on Equity (ROE) from 6.0% to 15.0%, and PEF makes an investment in urban railroad projects in the form of Equity and Mezzanine. When carrying out the Yangon ~Mingalardon railroad project in the PPP method, higher ROE and fundraising are expected which will enhance the competitiveness.
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Figure 49 PEF Structure
5.6. Investment Resources
6 basic financial resources for an urban project include ODA, OOF, Multilateral Development Bank (MDB), (Government Budget, Private Debt and Private Equity as described below.
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Table 86 Estimated condtion for procurement
No Resources Details Financing conditions
Resources (EDCF, Economic Development Cooperation Fund) Character (Concessional Loan) Within total project cost (administrative expenses, Amount general expense, tax & fees, tariff, sharing, land ODA acquisition, relocation and another indirect cost) Official 1 Development Interest rate Tied 0.1%, untied 2.0% Assistance Maturity tied 40years (grace 10), untied 25years (grace 7) Won(In particular cases such as untied, US dollars or EX rate Euro is possible) Repayment every 6 months Resources (KEXIM, The Export-Import Bank of Korea) OOFs Character (LCL: Less Concessional Loan) 2 Other Official Flows Interest rate untied 2.5% Maturity 15years Resources Myanmar government Government 3 Character 5-year maturity national bond Budget Interest rate 5.35% (KEXIM, The Export-Import Bank of Korea) Resources (KSURE, Korea Trade Insurance Co) Character (ECA, Export Credit Agency) - OOFs
4 Private Debt Tied 5.0% (ODA project), 6.0% (PPP project) CIRR + Long Term Margin + Premium Interest rate CIRR in 2017: 2.91% (CIRR: commercial standard rate) Long Term Margin: 0.75% Maturity 14years Character (PEF, Private Equity Fund) 5Private Equity ROE 10% Resources (MDB, Multilateral Development Fund) Character (Concessional Loan) 6MDB Interest rate LIBOR + 0.6% Maturity 25years (grace 5)
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6. Business Structure Proposal
There is a need to design an optimal business structure comparing the pros and cons of each business structure or responsibility of private business partner. In
explains the responsibility area of private business partners and in
it explains the characteristics and pros/cons of each business model.
Table 87 Responsibility Area of Private Business Partner due to Business Model
Business Construction Financing O&M Management Model Responsibility Responsibility Responsibility Responsibility
EPC-F ○ ○ X X BT ○ ○ X X PPP-AP ○ ○ ○ X PPP-BOT ○ ○ ○ ○
Table 88 Features and Pros/Cons by Different Business Models
Business Features Pros Cons Model ∙ It is pushed forward as a government financial project, and a private business ∙ Saving project cost ∙ Need to push forward EPC-F operator selected through through competitive business at central competitive bidding is bidding government level responsible for design and construction ∙ Business partner will transfer ∙ Available to push facility after construction, forward fast by collect construction cost ∙ Difficult for stable O&M PPP-BT separating order of based on separate contract, regarding the facility construction and owner is responsible for O&M operation and management of facility ∙ Due to O&M ∙ Business partner can collect responsibility of private ∙ Insufficient experience in agreed amount from owner business partner, PPP-AP pushing forward with AP based on availability through available to establish a project in local market long-term concession stable operation plan from construction stage ∙ Private business partner bear ∙ Minimize owner’s bear ∙ Due to high demand risk, the responsibility regarding regarding project risk so it is difficult for private PPP-BOT construction, O&M and it is possible to push business partner to get overall management forward with project involved
142 Ⅷ. Recommendation on policy: Airport Rail Link for Yangon-Mingalardon-Hantharwaddy
It would be difficult to make the project a success with EPC-F or PPP- BOT requires too much responsibility from the private contractor. PPP-BT which allows stable operation plan and advanced know-how on maintenance is very beneficial to the state government, and would mostly lead to participation by the Korean consortium. In view of advantages and disadvantages of the project models, PPP-AP would be more optimal for the project.
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Ⅸ. Conclusions
1. Project-related Laws and Environmental Impact Analysis
The Myanmar government established the Foreign Investment Act to induce the foreign investment as part of the measures following the open competitive market system in 1988, but discrimination and restriction against foreign investors remained unchanged. But the new government expressed its intent to promote foreign investment which led to easing the economic sanction by USA and EU, and revision to Foreign Investment Act was further accelerated. As a result, the revision was endorsed by the Parliament and declared by the President on November 2, 2012.
Tax administration is under the management of Internal Revenue Dept. and Customs Dept.
2. Demand Analysis
Influential factors on transportation demand include population, which is the socioeconomic indicator, Gross Regional Domestic Product, and number cars registered. The City of Yangon consists of 33 townships and the total area is 787㎢ and the population as of 2011 was 5.14million. The total number of cars registered as of 2011 was 2.31 units which were increased 2.32 times more than 2007 (1.31 million), showing the average annual increase of23.4%.
The future plan is as follows.
• Extension of Yangon International Airport Dept. of Civil Aviation (DCA) established a plan to increase the capacity from 2.7million to 3.7millionuntil 2013.
144 Ⅸ. Conclusions
•Construction of Hanthawaddy Airport Hanthawaddy International Airport is located at Bago city 77km north of Yangon city in the area of 3,642ha. The project was planned in the early 1990s but has yet to start and was planned to start in 2012 through an open international bid.
3. Analysis of Proposed Route
3.1. Yangon~Mingalardon Airport Railroad
The proposed route starts from Yangon central station and is extended to U Htaung Bo Road to the north along Gyo Phyu St and is linked to U Htaung Bo Road. After moving to the west along Ahlon Road, it runs to the north along Pyay Road. From Hantha Waddi rotary near MRTV Yangon, it is designed as the bridge section. From the northern end of Inya Lake, it is designed to run under the ground and then comes out above the ground at Yangon Airport Road in front of the airport.
After passing Yangon International Airport over the bridge, it is designed to cross the eastern part of Yangon loop line and then is designed with the earthwork section. The depot site is situated in the north of Khayae Pin Road after passing Wai Bar Gi Station and running toward the north along Yangon loop line in parallel.
3.2. Mingalardon~Hanthawaddy Airport
The proposed route starts from the depot of Yangon ~ Mingalardon to Hanthawaddy Airport in the north of Bago city after passing Mingalardon Industrial complex and Hlegu.
The earthworksection accounts for 80% of the proposed route and bridge is designed to cross the river and road and tunnel at a mountainous area. The depot is planned in the north after passing Hanthawaddy Airport in parallel.
4. Drone Survey
Drone we use today was first integrated into a remotely piloted aircraft system (RPAS) from unmanned aerial vehicle in accordance with Chicago Convention on December 7, 1944. Since then it has been called as Drone, UAS, UAV, and RC. Recently, as the application of drones
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in private sector grows, it is expected to increase market size to $1.3 billion until 2024.
In this railway project, new railway is to be planned in Yangon, Myanmar. The survey of the new railway alignment was conducted using a drone. By doing so, more accurate data was obtained within a short time, compared to the traditional survey method. A digital model will be developed to a 3D model to provide more precise topographic data in future.
5. Financing Plan
MR plans to finance the project through a foreign loan or ODA, which however is difficult. For civil work, E&M system and rolling stock, financing source such as EDCF, ECA or development credit shall be secured. ODA financing through MDB and private investment are available as a financing source. The Myanmar government has yet to establish a financing plan through MDB and thus financing through MDB remains uncertain. Alternatively, private investment through PPP project is available. In this case, given less demand for investment in the northern region, a high risk of demand fluctuation and a large loan from financing market, Availability payment (AP) with high investment stability would be appropriate. But since no project using AP has yet to be performed in Myanmar, improvement of various legal systems and training for government officials are required.
6. Estimate of Project Cost
6.1. Yangon~Mingalardon Airport Railroad
According to the analysis of project cost for the MRT system, direct construction cost was $71.17million/km and the total project cost was $88.64million/km, while for the LRT system, direct construction cost was $37.41million/km and the total project cost was $46.91million/km.
6.2. Mingalardon ~ Hanthawaddy Airport
According to the analysis of project cost for the MRT system, direct construction cost was $31.37million/km and the total project cost was $33.87million/km, while for the LRT system, direct construction cost was $22.09million/km and the total project cost was $27.97million/km.
146 Ⅸ. Conclusions
7. Optimal Project Structure
Project implementation by EPC-F or PPP-BOT imposing an excessive risk on private investor seems to be difficult. PPP-BT, which allows to establish a stable operation plan and to secure advanced maintenance know-how, is effective to the client, and it could give a chance for the Korean Consortium to win the contract. Looking at the advantages &disadvantages and feasibility, PPP-AP is considered to be the optimal project structure
8. Push Forward Measure by Stage
According to the Pre-feasibility study on the Yangon ~ Mingalardon Airport and Mingalardon ~ Hanthawaddy Airport route with regard to the Yangon railroad modernization project, it is concluded to be more favorable when integrating two routes into a single route, Yangon ~ Mingalardon ~ Hanthawaddy Airport.
As Phase-I project, the Yangon ~ Mingalardon Airport segment will be implemented first and then the Mingalardon ~ Hanthawaddy Airport segment will follow as Phase-II project, depending on the site conditions and environment.
Given the Phase-I segment, the Yangon~Mingalardon Airport route will pass through the downtown, an LRT is strongly recommended considering a short distance route, and low structure cost, good landscape effect and good accessibility from the airport to downtown, while the Mingalardon~Hanthawaddy Airport railway as Phase-II segment will link Yangon to Bago and is mostly earthwork section that requires low cost. An MRT is recommended considering a large amount of transportation. In future, the linkage between MRT for the suburban area and LRT for the downtown needs to be made to increase ridership.
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