November 10, 2009

Global Mass Transit Weekly Information & analysis on the global mass transit industry

INSIDE THIS ISSUE

NORTH AMERICA 2 Keolis to operate for Virginia Railway Express 2 LA MTA seeks funds to expedite mass transit projects 2 LA MTA invites fresh bids for supply of light-rail vehicles 2 SNC-Lavalin Graham Infrastructure wins light rail train extension contract in Calgary 2 Toronto mass transit projects to be deferred 2 Portland invites bids for TOD plan 3

LATIN AMERICA 3 CAF to fund BRTS construction study in 3 metro Line 4 introduces new station 3 Contactless payment technology to be introduced in 3 CENTRAL invites bids for Rio de Janeiro MRT project 3 Brazil government to decide on Porto Alegre metro project in December 4

ASIA PACIFIC 4 Scomi Engineering and Geodesic Techniques bid for monorail project 4 SPN to extend ’s light-rail system and improve bus facilities 4 Thales to implement smart cards in Auckland 4 Sindh government requests release of ADB funds for BRTS project 4 Taiwan High Speed Rail Corporation to provide collateral for its loan 5 Ansaldo receives AUD14 million contract from Australian Rail Track Corporation 5

EUROPE 5 UK’s Department for Transport to implement new tram system 5 National Express returns East Coast rail franchise to government 5 London Bus Services grants multiple contracts for operating buses 5 RDC, Locomore Rail and Michael Schwabs establish inter-city rail in Hamburg 6 Länstrafiken grants inter-city bus contract 6 Ratahallintokeskus launches railway signalling equipment tender 6 Alstom and CAF win rolling stock order from FGC 6

MIDDLE EAST & AFRICA 7 CSR wins metro car order from Izmir municipal government 7 GCC approves preliminary studies for proposed rail network project 7 Transport authorities invite EoIs from consultants for Kuwait metro 7 Kenya Railways launches tender for design of new railway lines 7

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NORTH AMERICA for 50 P2550 LRVs. AnsaldoBreda's proposal was provisionally accepted by the metro board on September 24, 2009 but rejected on October 30, 2009 Keolis to operate commuter rail for Virginia Railway after AnsaldoBreda requested last-minute Express contractual changes. The Virginia Railway Express (VRE) has received a AnsaldoBreda’s original contracted deliveries final approval from the Northern Virginia and for LA MTA are running three years behind Potomac and Rappahannock transportation schedule; further, the 2.7-tonne cars supplied are commissions to terminate its 17-year-old contract heavier than specified and cannot operate on all with Amtrak and partner with France-based Keolis routes. However, AnsaldoBreda had offered LA Rail Services for operating and maintaining its MTA financial protection in the form of a USD300- commuter rail system. million performance bond and a USD75-million VRE is awarding a five-year, USD85.7 million letter of credit. The Italian rail-equipment contract to Keolis with two five-year renewal manufacturer had also offered to give LA MTA two options. Keolis will begin running services from additional light-rail vehicles in compensation, but July 1, 2010, when Amtrak's contract ends. VRE this offer has been withdrawn. Nevertheless, made its decision on the grounds that Amtrak did AnsaldoBreda is still eligible to bid for LA MTA’s not adequately address safety and security fresh contract. concerns. Amtrak had challenged the VRE board’s decision, but this has been dismissed. SNC-Lavalin Graham Infrastructure wins light rail Keolis operates 5,000 trains a day globally, but train extension contract in Calgary VRE will be its first US operation. The company has The Calgary city transport authorities have awarded hired US administrators and has opened an office in a CAD700-million contract to engineering and Washington DC. construction joint-venture group, SNC-Lavalin Graham Infrastructure, for constructing the 8.2-km LA MTA seeks funds to expedite mass transit west light rail transit project. projects The project involves building a six-station The Metropolitan Transportation extension of Calgary’s 202 light rail line, currently Authority (LA MTA) government is considering running across the city between 10 St SW and borrowing funds to expedite USD20 billion worth of McKnight-Westwinds. The joint venture will also mass-transit projects including new rail and bus build one elevated and two subway stations plus a projects. The time frame for the projects is 30 years five-block section in an open trench. but the LA government is aiming to reduce this to The total cost of the line, including property ten years by borrowing USD5.2 billion against its acquisition, a major highway interchange, sales tax revenues. It is also looking to garner replacement for a high school that will be razed, and another USD10 billion from federal and local funds new rolling stock, is estimated at CAD1.2 billion. and private investment, and raising an additional The project is slated to be completed within three USD6.8 billion from federal and state transit funds. years, with commercial services due to start on Meanwhile, a coalition of fourteen Members of December 10, 2012. Congress has asked the LA MTA Board of Directors Calwest LRT Constructors Joint Venture and to include three local rail projects in its long-range PCL/KMC West LRT Joint Venture had also been transportation plan. The lines are the Gold Line shortlisted for the project. Foothill Extension, Gold Line Eastside Extension Phase II, and Crenshaw/South Bay Transit Corridor. (1 Canadian Dollar [CAD] = 0.9295 USD)

LA MTA invites fresh bids for supply of light-rail Toronto mass transit projects to be deferred vehicles Some of Toronto Transit Commission’s capital LA MTA is seeking new bids for its tender to supply investment projects, valued at CAD548 million and 100 light-rail vehicles (LRVs). It has rejected scheduled to start in 2012 or later, will be AnsaldoBreda's offer to supply the LRVs at a cost of postponed. These include the installation of debit USD300 million as an option on an existing order and credit card ticket machines in subway stations;

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the station modernisation programme (although the CAF is presently aiding the expansion of 's Pape and Dufferin stops will be completed as electric train system. scheduled); and a study of the proposed Downtown Relief Line. Line 4 introduces new station

However, the Spadina subway expansion to ’s Metro de Santiago's Line 4 has introduced a Vaughn, the first three lines of the Transit City light- new station, San José de la Estrella. The station, rail network and the purchase of 204 trams from which was earlier slated to be completed in the first Bombardier will not be affected. This is because half of 2010, was built at a cost of USD17 million. funding totalling CAD10 billion for these projects has already been committed by the provincial and Located between Trinidad and Los Quillayes federal governments. stations in La Florida district, San José de la Estrella is the 23rd station on Line 4, which is 24 km long. (1 Canadian Dollar [CAD] = 0.9295 USD) Metro de Santiago of Chile is known to be one of South America's most extensive and modern metro Portland invites bids for TOD plan systems. It has a network of five lines connecting Portland transit authorities have invited requests for 107 stations, some of which are still under proposals from consultants for preparing a Transit- construction. Line 4 runs between Tobalaba Oriented Development (TOD) Strategic Plan. The (Providencia) and to the south. contract will be granted through an international competitive bidding process. Contactless payment technology to be introduced The metro TOD implementation programme in Rio de Janeiro strategic plan is outlined in the tender document MasterCard Worldwide, Citibank's credit card and the outline is expected to be refined by bidders. administrator in Brazil, Credicard and Redecard Further, sub-task deliverables can be added or have launched MasterCard's PayPass contactless redistributed between the metro and the winning payment technology for public transportation in Rio consultant team to meet the project budget. The de Janeiro, Brazil. closing date is November 12, 2009. The cards are being accepted for use on the city’s metro system. MasterCard PayPass is the first LATIN AMERICA contactless payment product to be introduced for public transportation in Latin America. CAF to fund BRTS construction study in Buenos Consumers can wave their card in front of a Aires PayPass-enabled terminal for transactions valued at less than USD25. There is no need to swipe the card The Andean Development Corporation, or sign a receipt. Corporación Andina de Fomento (CAF), has signed a technical agreement with the government of CENTRAL invites bids for Rio de Janeiro MRT project Buenos Aires in Argentina to finance a study for implementation of the city's bus rapid-transit Brazil’s State Company of Transportation system (BRTS). Engineering and Logistics, Companhia Estadual De CAF will provide funds from the Fund for Engenharia De Transportes E Logistica (CENTRAL) Promotion of Sustainable Infrastructure Projects has launched a tender for updating the urban transport master plan for the Rio de Janeiro (Proinfra), which it had set up in 2006 to improve the quality of infrastructure projects. The proposed metropolitan region. BRTS is expected to reverse the trend of declining The proposed project will involve updating use of public transport in Buenos Aires. structural network information and geo-referenced database, field surveys, trip matrices, evaluation of CAF has already developed 30 projects of this type and over ten operations are under way. It had service quality, a computational analysis model and earlier helped finance Colombia's TransMilenio a multimodal transportation model, environmental impact assessment, basic network operation system in as well as the metro and urban train systems in the Venezuelan capital, Caracas. simulations, financial viability analysis, supply of software, personnel training, etc.

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The project is being funded by the World Bank. SPN to extend Kuala Lumpur’s light-rail system and Bids can be submitted till November 11, 2009. improve bus facilities Kuala Lumpur’s transport operator, Syarikat Brazil government to decide on Porto Alegre metro Prasarana Negara (SPN), has proposed a project to project in December extend the Kuala Lumpur automated light-rail The federal government of Brazil will make a network, , by 17 km. The planned decision on whether or not to approve a BRL2.5 MYR7-billion extension will begin at Sri Petaling billion metro-expansion project for Rio Grande do station and terminate at . The project Sul by December 2009. scope also includes adding 13 stations, procuring 13 six-car trains for the Ampang light-rail transit and The project involves extending the existing 33.8- 35 four-car trains for the . The km Porto Alegre metro line by 15.3 km and contract for the civil works is likely to be awarded constructing a station near the Beira-Rio stadium by 2010 and the project is expected to be completed where FIFA World Cup 2014 matches will be held. by 2012. It also includes procurement of 44 trains. SPN has also launched a tender for the The project will be viable for a public-private- manufacture, supply, delivery and maintenance of partnership implementation model if it attracts 400, 12-metre-long, old diesel buses. The group has 290,000 passengers per day. invited bids from bus chassis manufacturers Meanwhile, the city’s ministry has approved a registered in . The buses will be deployed BRL400 million project to remodel the bus system in in Kuala Lumpur by RapidKL, the bus fleet Porto Alegre. The project involves construction of operating services in the valley and bus stations, viaducts and overpasses on the areas. Terceira Permietral road. Government-owned company, SPN, recently (1 Brazilian Real [BRL] = 0.5813 USD) took over RapidKL and RapidPenang which had been incurring losses due to the high cost of repair and maintenance of the buses. ASIA PACIFIC (1 Malaysian Ringgit [MYR] = 0.2935 USD)

Scomi Engineering and Geodesic Techniques bid Thales to implement smart cards in Auckland for Bangalore monorail project The New Zealand Transport Agency has Malayasia-based Scomi Engineering and India- provisionally approved a multi-million dollar based Geodesic Techniques have jointly bid for contract for introducing an integrated ticketing Bangalore’s monorail project. While Scomi system for public transport services in Auckland. Engineering aims to deliver technology solutions for The system, to be built by France-based rail the project and will act as a systems integrator, signaling provider Thales, will allow passengers to Geodesic Techniques is looking to provide civil and pay for bus, train and ferry travel services using a structural support. single smart card. The USD2.4-billion project involves constructing The smart card system will have a data 59 km of monorail lines covering 54 elevated warehouse containing information on individual stations. The project will be implemented on a passenger journeys, which will be used to improve design, build, own, operate and transfer basis. services. Work on the project is slated to begin by mid- 2010 and is expected to be complete by 2013. The Sindh government requests release of ADB funds monorail project is primarily aimed at providing for BRTS project feeder services to the under-construction metro The Sindh government has approached the project in Bangalore. Economic Affairs Division of the Pakistan Scomi Engineering, in a joint venture with government for the release of funds from the Asian Larsen and Toubro, is also implementing a monorail Development Bank (ADB) for its proposed bus project in . rapid-transit system (BRTS) project. The project, which was to be implemented by the City District

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Government , was deferred for funding by signalling project to increase line availability on the ADB, after the Sindh government sought to Maitland to Branxton line. implement the project through the Sindh Mass (1 Australian Dollar [AUD] = 0.9126 USD) Transit Authority. The 44.5-km bus rapid transit project is estimated to require an investment of USD259 EUROPE million and will be implemented in three lines. Line 1 of the project, requiring an investment of USD146 UK’s Department for Transport to implement new million, will cover 25 km connecting Surjani Town tram system to the Cantonment Station. Line 2, requiring an investment of USD90.5 million, will cover 15.5 km The UK Department for Transport is planning to connecting Safora Goth to Mazar-e-Quaid. Line 3, convert the existing 10-km heavy-rail line from requiring an investment of USD23 million, will Watford to St Albans in Hertfordshire county into a cover 4 km connecting Orangi Town to North new tram line. The Hertfordshire County Council Nazimabad. has launched a 12-week consultation process on the project proposal with other local authorities, Taiwan High Speed Rail Corporation to provide passengers and potential users. If approved, the collateral for its loan proposed tram system will start operating services by 2011. The banking consortium granting a TWD338.2- Conversion to a light-rail-based tram system billion loan to the Taiwan High-Speed Rail was proposed by UK-based consultants Mott Corporation (THSRC) is looking to fully collaterise MacDonald. Earlier, the council had found the the same. The loan will have an average interest rate estimated cost of GBP5 million required to suitably of 1.8 per cent per annum (on a floating basis) for modify the existing heavy-rail system prohibitive. the first nine years of the lending term. It is However, now the benefits of the tram system are estimated that the loan value amounts to as much as expected to outweigh the cost. 80 per cent of the THSRC's estimated assets of TWD430 billion. (1 British Pound [GBP] = 1.6606 USD) The Ministry of Transportation and Communications will take charge of the future National Express returns East Coast rail franchise to management of the THSRC, which ran into trouble government this year when it was revealed that it had lost UK-based railway operator National Express has TWD67.5 billion (equivalent to two-thirds of its served a notice to the Department for Transport equity capital) since it started operations in 2007. (DfT) for terminating its East Coast Line franchise (1 Taiwan Dollar [TWD] = 0.0308 USD) contract on November 13, 2009. The section will subsequently be operated by Ansaldo receives AUD14 million contract from the East Coast Main Line Company, constituted by Australian Rail Track Corporation the DfT, from December 12, 2009, till at least up to mid-2011. As part of the handover, the route will be The Australian Rail Track Corporation has granted renamed the East Coast Main Line and the stations an AUD14 million contract to Italy-based railway and trains will be rebranded. Profits from operating signalling and transport control equipment the line, if any, will accrue to the government. provider, Ansaldo, for upgrading the signalling system in the Hunter Valley project. National Express East Coast was one of the country’s biggest rail franchise. It started facing The project is expected to improve passenger trouble after the National Express Group refused to services between Maitland and Branxton in Hunter provide financial support. Valley.

Ansaldo will replace the existing route-relay London Bus Services grants multiple contracts for interlocking system at Maitland junction with a operating buses computer-based system. A new crossover will also be installed. In early 2009, Ansaldo had successfully London Bus Services has awarded several contracts completed an AUD31-million bi-directional for the provision of bus services in the city for a

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five-year period, with a possible two-year extension. bought in 2008 by RDC and have been in the Specifically, the contracts are as follows: process of being modernised since November 2008. A GBP1.92 million contract to Dockland Bus Limited for operating services on route 300; Länstrafiken grants inter-city bus contract Two contracts with a combined value of Sweden-based Länstrafiken has awarded a GBP765 GBP3.81 million to East London Bus and Coach million contract to Sweden’s transport service Company Limited for operating services on provider Centrala Buss, for operating inter-city bus routes 97 and 215; and services in Jämtland county from 2010. The contract will be valid for an eight-year period. An electronic Three contracts with a combined value of auction was used to award the contract through a GBP4.83 million to Arriva London North competitive bidding process. Limited for operating services on routes 444, 325 and 657 (with no provision for a two-year The contract was earlier awarded to another extension on the last route). service provider, which sparked off an appeal against the award. However, the appeal was Meanwhile, South Yorkshire Passenger dismissed in the County Administrative Court. Transport Executive has also awarded two service contracts to Stagecoach Yorkshire and Powell Bus Länstrafiken AB is primarily engaged in Company Limited for the provision of local bus providing intercity bus and train services in services in South Yorkshire. Jämtland county, as well as in the northern counties of Sweden. Merseyside Passenger Transport Executive has also awarded multiple service contracts for (1 British Pound [GBP] = 1.6606 USD) operating bus services in the Merseyside area for a 60-month period. The multiple awardees include Ratahallintokeskus launches railway signalling Halton Transport Limited (GBP0.16 million), Ace equipment tender Travel (North West) Limited (GBP1.3 million), Stepehen Event t/a Eazibus (GBP1.3 million), Arriva Finland rail administration, Ratahallintokeskus, has North West Limited (GBP0.39 million), Huyton invited international competitive bids for railway Travel Limited (GBP2.79 million), Cumfy Bus signalling works and railway traffic control Limited (GBP8.89 million), Glenvale Transport equipment for the Helsinki railway network. The Limited (GBP6.16 million) and People’s Bus closing date for the tender is December 11, 2009. (GBP1.03 million). Ratahallintokeskus is a publicly owned (1 British Pound [GBP] = 1.6606 USD) company responsible for managing Finland's rail transport infrastructure. It takes care of planning, construction, maintenance, and traffic control on the RDC, Locomore Rail and Michael Schwabs establish Finnish railway network. inter-city rail in Hamburg

A joint-venture between US-based Railroad Alstom and CAF win rolling stock order from FGC Development Corporation (RDC), German Locomore Rail and London-based investor Michael The board of Spain-based railway operator, Schwabs has introduced an open-access, inter-city Ferrocarrils de la Generalitat de Catalunya (FGC), passenger railway service in Germany, branded the which provides services in Catalonya, has awarded Hamburg-Köln Express (HKX). Three train-pairs a EUR155 million contract to a consortium will be launched on the network from August 15, comprising France based Alstom and Spain based 2010, connecting Hamburg to Köln via Düsseldorf, Construcciones y Auxiliar de Ferrocarriles (CAF) for Gelsenkirchen and Osnabrück. supplying 24 Class-113 electric multiple units (EMUs). The network route for HKX has been affirmed by DB Netz, a subsidiary of the Germany national The four-car EMUs are expected to be deployed rail company Deutsche Bahn, for conducting three on the standard gauge (1,435 mm) Vallès suburban journeys per day till December 10, 2010. The rolling network in Barcelona in the second half of 2013. An stock for HKX is likely to comprise Class 4010 inter- order for 20 more trains is likely to follow. city electric multiple units owned by the former The new rolling stock will be 80 metres long Austrian Federal Railways. The trainsets were with 12 doors per side, having aluminium-body cars

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with wide gangways between cars to accommodate Transport authorities invite EoIs from consultants up to 800 passengers. The interiors will have for Kuwait metro passenger information systems, air-conditioning, The Kuwait transport authorities have invited and closed-circuit television surveillance. expressions of interest (EoIs) from consultants for (1 Euro [EUR] = 1.4867 USD) carrying out a feasibility study and overseeing the tendering process for a metro project which will be part of the Kuwait Metropolitan Rapid Transit. MIDDLE EAST & AFRICA The metro project will be managed by the Partnerships Technical Bureau (PTB), set up in 2008 CSR wins metro car order from Izmir municipal to carry out all public-private-partnership-based government projects in the country. The deadline for submitting EoIs for the project is November 22. The Izmir metropolitan municipal government in Turkey has awarded a CNY350-million contract to A project developer will be selected to design, China South Locomotive & Rolling Stock build, finance, operate and maintain the metro Corporation Limited (CSR) to supply eight four-car network. A special purpose vehicle will be set up to train-sets for the city's metro system. implement the project, of which the developer and the government will own 40 per cent and 10 per The train-sets will be used on the Ege cent, respectively. The remaining 50 per cent stake University-Ucyol-Uckuyular line currently being in the project company will be placed in the market constructed. The train-sets are likely to be delivered in the form of an initial public offering. before 2012 and will be equipped with features such as auto-stop announcements, electronic map, video The USD7-billion project involves constructing a monitors, fire detection and an emergency 171-km metro network in Kuwait city with four evacuation system. lines. About 60 km of the lines will be underground. The İzmir Metro is a subway network consisting In addition, the government plans to invite EoIs of an 11.6-km line from Üçyol station in Hatay in the in 2010 for an advisor to supervise the tendering southern portion of the to the process for construction in public-private northeast region of Bornova. partnership mode of a 505-km rail network. The project is part of the planned GCC rail network (1 Chinese Yuan [CNY] = 0.1464 USD) from Kuwait to Yemen’s border.

GCC approves preliminary studies for proposed rail Kenya Railways launches tender for design of new network project railway lines US-based planning and engineering management The Kenya Railways Corporation (KRC) has company Parsons Brinckerhoff and Kuwait-based launched a tender for the provision of transaction investment company Global Investment House have advisory and preliminary design services for its completed preliminary studies for two proposed proposed high-capacity, standard-gauge railway routes of the Gulf Cooperation Council’s (GCC) line between Mombasa and Malaba with a branch 1,940-km railway project. line to Kisumu. The studies have been approved by the GCC The international tender also involves Technical Committee. development of suitable financing options and a The USD25-billion project to connect the six construction and operations model for the lines. A countries under the GCC is scheduled to begin in bidders’ conference will be held in Mombasa on 2017. The project cost will be shared among the November 19 and 20, 2009. member states in proportion to the length of the The Kenyan government has allocated KES3 railway line in each of the six countries - Bahrain, billion in the current year’s budget for conducting Kuwait, Qatar, Oman, UAE and Saudi Arabia. the preliminary design for the line, which could be While one route runs from Kuwait, Saudi Arabia, extended to Kampala in Uganda. The line is and Bahrain across Qatar to UAE and Oman, the expected to be completed in 2016. other runs from Kuwait to Saudi Arabia to UAE and Oman. (1 Kenyan Shilling [KES] = 0.0133USD)

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