IEC INTERNATIONAL
GLOBAL RAILWAY BUSINESS
OVERVIEW OF MAJOR RAIL EVENTS
I QUARTER 2020 EXECUTIVE SUMMARY
Business health In Q1 rail business activity was close to normally observed in Q1 of other years. 01 Most active sectors: rolling stock production and procurement (mainly passenger) and urban transport development projects.
Investments and financing Huge railway investments for a period up to 10 years totaling approx. €281 bn were announced, including international and national financing. 02
COVID-19 impact By the end of Q1 the spread of COVID-19 resulted in new international 03 benchmarks and calls for support. A comprehensive support programme proposed only by the USA. Limited international strategic cooperation in Q1.
Q1 = I QUARTER 2020 2 CONTENTS
SCOPE OF OVERVIEW
GEOGRAPHY OF GLOBAL RAILWAY BUSINESS IN Q1 2020
RAIL INVESTMENTS AND FINANCING
INTERNATIONAL INITIATIVES AND PARTNERSHIPS
RAIL PERSONS
RAILWAY SECTORS
COVID-19 RESPONSE 3 SCOPE OF OVERVIEW
Investments Strategies Major international and national investments. International and national initiatives. Financing from development banks Corporate strategies of railway companies. supranational organizations. Private Business development via M&A or new investments of rail companies. subsidiaries. Technologies Passenger New technologies and digital solutions for High speed, long-haul and suburban railway railways. Cooperation with non-rail passenger transportation. Services, routes technological companies. Innovations. and contracts. Station management. Construction Urban Construction, modernization and upgrade of Development of urban transportation: rail, rail infrastructure classified by cycles of metro, tram. project. Rolling stock Freight Rolling stock production and procurement. Railway freight transportation development. Passenger, freight and urban transportation News from logistics hubs. needs.
SOURCES: 1. RAIL SECTOR MEDIA. 2. OFFICIAL INTERNET SITES OF RAILWAY COMPANIES AND ORGANIZATIONS. FOR Q1 MORE THAN 120 KEY EVENTS ARE CONSIDERED. THIS IS YET A NON-EXHAUSTIVE LIST. FOR ADDITIONAL INFORMATION AND ANALYSIS YOU MAY CONTACT IEC TEAM. 4 GEOGRAPHY OF GLOBAL RAILWAY BUSINESS 2020 Q1. TYPES OF PROJECTS
EU COUNTRIES NORTHERN EUROPE EASTERN EUROPE*
CENTRAL ASIA EASTERN ASIA
OUTHERN SIA NORTHERN AMERICA S A WESTERN ASIA
SOUTHEASTERN ASIA WESTERN AFRICA SOUTHERN EUROPE
SOUTH AMERICA
NORTHERN AFRICA EASTERN AFRICA AUSTRALIA AND NEW ZEALAND
INVESTMENTS NEW URBAN FREIGHT Q1 NEW SERVICES PLANS AND FINANCING TECHNOLOGIES TRANSPORT TRANSPORT ALREADY SUSPENDED DUE TO COVID-19 *including Russia, all countries considered as by UN Geoscheme, except for EU BUSINESS CONSTRUCTION, PASSENGER ROLLING / TEMPORARY SERVICES first symbol represents dominant types of activities, others in random order DEVELOPMENT UPGRADE TRANSPORT STOCK FOR COVID-19 PANDEMIC 5 GEOGRAPHY OF GLOBAL RAILWAY BUSINESS 2020 Q1. NUMBER OF PROJECTS
42 9 EU COUNTRIES 9 CENTRAL ASIA
9 EASTERN ASIA
9 EASTERN EUROPE
5 NORTHERN AMERICA
4 GLOBAL / INTERNATIONAL 4 EASTERN AFRICA 20 SOUTHERN ASIA OTHER
NUMBER OF PROJECT INCLUDES INITIATIVES, NEW STRATEGIC DOCUMENTS AND INVESTMENT DECISIONS. 6 RAIL INVESTMENTS AND FINANCING
INVESTMENT MIX (BY NUMBER OF PROJECTS) ORGANIZATIONS EUR 1.4 billion investment package which will EU countries support 14 large infrastructure projects in seven Member States; World Bank credits in Croatia 20 11 (upgrade) Central Asia Development banks Supranational financing* 4 CAREC Transport Strategy 2030: 8 projects 3 3 7 3 Northern America National programmes in the USA National investments 4 Eastern Asia CAREC Transport Strategy 2030: 3 projects 8 *Mainly EU. Also considered development banks providing EIB and EBRD investments in Tunisia and Cairo, financing following supranational decisions Northern Africa including rolling stock procurement 13 TYPES OF FINANCING Southern Europe EU investments in non-EU countries
EIB investments in India (urban) ; ADB investments 2 Interstate loans Other in Bangladesh (upgrade); National programme in New Zealand (upgrade) 3 Subsidies
14 Grants Calculated by the number of announced project in Q1 2020 19 Bank credits RAIL INVESTMENTS AND FINANCING MAJOR PROVIDERS OF INVESTMENTS AND FINANCING IN Q1 2020 (BY VOLUMES OF FINANCING)
EU USA CAREC (ADB) TOTAL VALUE OF ANNOUNCED PROJECTS*
53% 38% 5% € 281 bn
*non-exhaustive, as officially announced in Q1 2020; Includes investments of financing institutions and national investments. KEY FACTS In the EU supranational programme of the European Commission is combined with large-scale national investments. The EU investments are likely to be stable and unchangeable despite unfavorable economic context.
The important share of the U.S. financing refers to national projects and especially support (COVID Rensponse Bill). Without these support measures the share of U.S. would reach 2% and the share of EU would raise up to 78%.
CAREC Transport strategy is in Q1 2020 the only macroregional investment tool, but the parameters of some projects are not defined, so they are more likely to be review under macroeconomic pressure. 8 RAIL INVESTMENTS AND FINANCING. NATIONAL PROGRAMMES
EU AND NORTHERN EUROPE NORTH AMERICA AUSTRALIA AND NEW ZEALAND
GERMANY: LuFV III railway operating and financing agreement USA: COVID Response Bill aimed at support of different NEW ZEALAND: governmental subsidies for running – the largest investment programme for infrastructure transport, also mass transit and Amtrak. infrastructure modernization and upgrade. maintenance and upgrade (Deutsche Bahn AG). Cost: $114 bn for rail and mass transit. Period: from 2020 Cost: 1,1 bn NZ dollars (approx. €611 m). Cost: €86 bn. Period: 2020-2030. Period: 2020-2025. CRISI Program to improve the safety, efficiency, and DENMARK: The European Commission has concluded that reliability of intercity passenger and freight rail systems. Denmark’s public financing model for the Fehmarn Belt rail and Rural projects, which have a minimum of 25 per cent funding road tunnel to Germany is compatible with EU state aid rules. requirement under the CRISI Program, received nearly 50 Cost: €9,3 bn (max approved). Opening: 2028. per cent of the funds. Cost: $248,5 m. UK: HS2 construction – continuation approved by Prime Minister. Federal Transit Administration (FTA) provided a $790 m Cost: £62-69 million (not included in estimations of rail grant, while $ 629.5 m was approved by the U.S. investments) Department of Transport through the Build America Bureau construct an LRT extension in Washington till 2024. 9 INTERNATIONAL INITIATIVES AND PARTNERSHIPS
Rail passenger transport initiatives Main focus on COVID-19 pandemic + digital PASSENGER 1) UIC COVID-19 Task Force. Rail freight transport intiatives 2) UITP Guidelines for public transport operators. 3) Calypso Networks Association and OSPT FREIGHT EU legislative intiiatives. Alliance joint programme on open ticketing. 1) European Green Deal (call rfom 15 organizations). 2) Amendment proposal of the Combined Transport Directive (withdrawal).
Vairous transport initiatives and programmes 1) CAREC Transport Strategy 2030 (Central and Eastern Asian countries). Rail industry transport intiatives 2) UIC Working programme 2020-2022. 3) Netherlands’ proposal to develop a Pan-European EU Industrial strategy. RAIL network of passenger corridors. INDUSTRY 4) ALLRAIL, CER, ERFA, UIC and UIRR joint letter o VARIOUS the European Commission calling for concrete PARTNERSHIPS measures to face the COVID‐19 pandemic and its 1. MOU OF THE UKRANIAN MINISTRY OF TRANSPORT WITH DEUTSCHE BAHN AG COVERING economic consequences CO-OPERATION IN THE TRANSPORT SECTOR AND THE DEVELOPMENT OF NATIONAL RAILWAY UKRZALIZNYTSIA. 2. UIC AND IATA AGREEMENT TO FACILITATE TICKETING, RESERVATIONS AND OTHER ISSUES 3. AGREEMENT BETWEEN TANZANIA-ZAMBIA RAILWAY AUTHORITY AND COPPERBELT UNIVERSITY TO ESTABLISH A JOINT EDUCATIONAL CAMPUS 10 RAIL PERSONS
SWEDEN
Monica Lingegård appointed as CEO of SJ AB
POLAND
Krzysztof Zdziarski appointed as CEO of PESA
BELGIUM ÖBB’s CEO Andreas Matthä appointed as CER President
FRANCE
New management structure in SNCF
Rail passenger transportation Organization
Urban transportation Various (railway holding) 11 RAIL SECTORS. RAIL INFRASTRUCTURE CONSTRUCTION AND UPGRADE
RAIL COMPANIES LEVEL POLAND: Polish-Chinese consortium to modernise the 71 km line between LITHUANIA: JV of Eurovia CS, Eurovia Czyżew and Białystok Lietuva and UAB Geležinkelio Tiesimo Centras to modernise and double track Livintai – Gaižiūnai section
ALBANIA: HSH has awarded a consortium of Spanish companies Ardanuy Ingeniería and Metrotenerife and their At the level of rail companies, as usually in Q1, rail local partner SIM a four-year infrastructure construction and upgrade sector was contract to support the tendering and management to not active in Q1 2020. upgrade Tiranë Public Transport Terminal and Durrës In Europe infrastructure construction process are line and the construction of a branch to the international linked to TEN-T development, mainly Rail Balltic airport at Rinas in Q1 2020. UAE: JV of L&T Construction and TANZANIA, ZAMBIA: Standard Power China International get a Despite the pandemic, Chinese construction Gauge Railway project continues and contract to design, build and soon will launch international tender commission seven freight handling companies got new contracts signed outside China. procedure for the construction of facilities on Stage 2 of the national Isaka – Mwanza line rail network.
12 RAIL SECTORS. PASSENGER TRANSPORTATION UK: cross-Channel high speed train Suspended due RAIL COMPANIES LEVEL operator Eurostar has announced the start to COVID-19 dates for through services between USA: AECOM to evaluate the potential for pandemic Subway, commuter rail, light rail or bus services Amsterdam, Rotterdam and London that would operate in conjunction with existing and planned freight operations AZERBAIJAN: Abşeron Peninsula circular railway has been inaugurated
BRAZIL: São Paulo suburban operator CPTM began studying options for tendering of passenger services to Sorocaba
Before COVID-19 global spread several projects have been opened or announced.
By the end of Q1 most of passenger services were suspended without international announcements.
By the end of Q1 there was still no official information on reviewing or changing these services and projects after the pandemic is over. 13 RAIL SECTORS. URBAN TRANSPORTATION INDIA: final metro section on RAIL COMPANIES LEVEL RUSSIA: nine more metro stations announced to be opened in 2020 on the Hyderabad Green Line (fully Nekrasovskaya and Big Circle lines in automated) inaugurated Moscow USA: planning and preliminary CHINA: Guangzhou municipal engineering services for the Red Line government has approved a 15- extension in Chicago year plan to increase public transport’s market share to 80% through the development of a comprehensive urban rail network
COLOMBIA: government of Cundinamarca Department has signed with China Civil Engineering Construction Corporation a contract for a new light rail line in Bogotá SINGAPORE: the first section of Thomson-East Coast line (TEL) inaugurated
This overview does not consider all events in urban MOROCCO: a contract to develop the transport business. study on the extension of Rabat LRT AUSTRALIA: major construction works on network to Salé airport and Témara the Parramatta light rail project were As in 2019, China, India, USA and Australia are key conurbation in Morocco awarded to Egis launched, which will transform the transport – CID consortium system in Greater Parramatta region, while regions of active urban transportation development also linking into Sydney’s greater public with governmental support. transport networks 14 RAIL SECTORS. FREIGHT TRANSPORTATION HUNGARY: TX Logistik has begun using its NiKRASA system to load semi-trailers which are RAIL COMPANIES LEVEL unsuitable for lifting by crane onto wagons at LUXEMBOURG: rail motorway service linking the Mahart Container Centre in Budapest Bettembourg-Dudelange with Poznan-Swarzędz in Poland has been launched by Clip Group and RUSSIA: the first test shipment of fresh goods CFL Multimodal on transit through Russia with use of e-seals
CHINA: a rail-based freight service from Shanghai to Wuhan in collaboration with Sinotrans (in response to COVID-19)
ISRAEL: Depolog freight terminal at the Port of Haifa has opened
Freight services were not so much affected by COVID-19 spread as passenger in Q1. Vice versa, some new services were proposed. TANZANIA, ZAMBIA: TAZARA directed the As in 2019 services linked to semi-trailer or railway’s management to ‘aggressively seek SLOVAKIA: first intermodal block train through additional freight traffic in order to capture more piggyback transportation have been developing the Dobrá transhipment terminal actively in the EU. business’
In African region TAZARA’s development strategy becomes more active. 15 RAIL SECTORS. ROLLING STOCK PRODUCTION RUSSIA: five 1 435 mm gauge shunting locomotives have been delivered to AND PROCUREMENT Russian Railways’ Kaliningrad division, RAIL COMPANIES LEVEL which is upgrading its fleet to handle an GERMANY: Berliner Verkehrsbetriebe increase in traffic through the exclave (BVG) awarded Stadler an up to € 3 billion framework contract for the supply of 1,500 cars for the U-Bahn network CHINA: China State Railway Group has awarded the Bombardier Sifang (Qingdao) Transportation JV a contract to provide maintenance services for high speed trainsets totalling 656 cars
GUINEA: the first of 14 series-build diesel locomotives ordered by the SMB-Winning has been unveiled at CRRC Qishuyan’s plant in Changzhou
UKRAINE: national railway Ukrzaliznytsia The largest contract in Europe for the delivery of will need funding over six years to Stadler’s cars for U-Bahn in Berlin was signed in Q1. modernise its locomotive fleet, UZ will need to acquire around 135 new AC At the level of rail companies both freight and electric locomotives, 50 DC locos and 20 passenger rolling stock procurement procedures are dual-system locos in 2020-25 on-going, while at the level of international institutions passenger rolling stock is in the focus. 16 RAIL SECTORS. NEW TECHNOLOGIES AND DIGITALIZATION NORWAY: National train RAIL COMPANIES LEVEL operator Vy Group has appointed SkedGo to build a multimodal journey planner USA: SkyRights Holdings is seeking to covering Scandinavia partner with Class I railways to make CHINA (HONG KONG): MTR their alignments available for use by Corp has deployed an drone delivery companies and for ‘urban automated Vapourised air mobility’ applications Hydrogen Peroxide Robot to undertake deep cleaning and decontamination of its trains and stations.
Network Rail and Connected Places Catapult (CPC) have ZAMBIA: National telecoms launched a new programme, company Zamtel has signed a aiming to find innovative memorandum of understanding solutions to key challenges to provide Zambia Railways Ltd Most projects refer to passenger services and facing British railway stations with voice and data today. ticketing. communications as well as AUSTRALIA: development of fast- digitalisation technology charge lithium-ion batteries to Technological responses in railway sectors have GERMANY: public transport users in power catenary-free trams is been developed to cope with COVID-19 challenges. Rhein-Main transport authority RMV’s among the projects which have ticketing region can now pay for travel been awarded A$11m of These responses concern cleaning, delivery and using PayPal, which has been integrated government funding under a into the RMV app and back office programme to develop the national other tools to minimize human interaction and system supplied by Cubic Transportation minerals sector involvment. System 17 COVID-19 RESPONSE
01. International initiaties International ad hoc studies aimed at benchmarking of best practice to manage COVID-19 for passenger operators and infrastructure managers (UIC, UITP).
02. Investments and financing Large national support programmes (USA example). Appeals of sectoral associations for governmental international and supranational support. 03. Cancellation of projects Calcellation of rail electrification project in Latvia due to changes in freight flows from Russia and negative economic forecast. Suspension of passenger services, still rolling stock procurement is on-going. 04. New opportunities New rail freight services aimes at coping with COVID-19 economic consequences and undershipment of goods. Dedicated technologies and digital solutions for delivery and cleaning.
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