AUSSEN WIRTSCHAFT BRANCHENREPORT INDIEN SCHIENENVERKEHR BRANCHE UND MARKTSITUATION TRENDS UND ENTWICKLUNGEN CHANCEN FÜR ÖSTERREICHISCHE UNTERNEHMEN AUSSENWIRTSCHAFTSCENTER NEW DELHI SEPTEMBER 2020 2 Unser vollständiges Angebot zum Thema Schienenverkehr (Veranstaltungen, Publikationen, Schlagzeilen etc.) finden Sie unter wko.at/aussenwirtschaft/schienenverkehr. Eine Information des AußenwirtschaftsCenters New Delhi Wirtschaftsdelegierter Dr. Robert Luck T +91 11 43 63 50 20 F +91 11 43 63 50 26 E [email protected] fb.com/aussenwirtschaft twitter.com/wko_aw linkedIn.com/company/aussenwirtschaft-austria youtube.com/aussenwirtschaft flickr.com/aussenwirtschaftaustria www.austria-ist-ueberall.at Dieser Branchenreport wurde im Rahmen der Internationalisierungsoffensive go-international, einer Förder- initiative des Bundesministeriums für Digitalisierung und Wirtschaftsstandort und der Wirtschaftskammer Österreich erstellt. Das Werk ist urheberrechtlich geschützt. 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Herausgeber, Medieninhaber (Verleger) und Hersteller: WIRTSCHAFTSKAMMER ÖSTERREICH / AUSSENWIRTSCHAFT AUSTRIA Wiedner Hauptstraße 63, 1045 Wien Redaktion: AUSSENWIRTSCHAFTSCENTER NEW DELHI, T +91 11 43 63 50 20 E [email protected], W wko.at/aussenwirtschaft/in Ein Service der AUSSENWIRTSCHAFT AUSTRIA Ein Service der AUSSENWIRTSCHAFT ÖSTERREICH (AWO) 3 Inhaltsverzeichnis 1. EXECUTIVE SUMMARY ...................................................................................................................... 4 2. RAILWAYS INDIA – STATUS QUO ....................................................................................................... 5 2.1 Size and importance of the sector ............................................................................................................... 5 2.2 More passengers, improved freight processing, increasing income ......................................................... 6 2.3 Private Operators of Container Trains ......................................................................................................... 7 2.4 Urban Rail Segment ...................................................................................................................................... 9 3. STAKEHOLDERS .............................................................................................................................. 10 3.1 Indian Railways ............................................................................................................................................ 10 3.2 Other relevant state-owned companies .................................................................................................... 10 3.3 The main local manufacturers of railway equipment ............................................................................... 13 3.4 Foreign Companies in India ........................................................................................................................ 15 4. TRENDS AND OPPORTUNITIES FOR AUSTRIAN COMPANIES ............................................................ 18 4.1 General Trends ............................................................................................................................................ 18 4.2 Indian Railways expansion plans................................................................................................................ 18 4.3 PPP (Public Private Partnership) ............................................................................................................... 21 4.4 Planned major projects by Indian Railways ............................................................................................... 22 4.5 Metro Rail – Projects .................................................................................................................................. 26 4.6 Specific supply opportunities for Austrian companies ............................................................................. 37 5. STRENGHS AND WEAKNESSES OF THE SECTOR .............................................................................. 38 5.1 COVID 19 and Indian Railways .................................................................................................................... 38 5.2. Strenghs and Problems .............................................................................................................................. 38 6. TRADE FAIRS ................................................................................................................................... 39 7. SOURCES ......................................................................................................................................... 40 Ein Service der AUSSENWIRTSCHAFT AUSTRIA Ein Service der AUSSENWIRTSCHAFT ÖSTERREICH (AWO) 4 1. EXECUTIVE SUMMARY This industry report shall give an overview of the Indian railway and metro sector and show the opportunities for Austrian companies in that field. While in 1985-86 the market share of the railroad was 65% and the share of road traffic was 35%, the situation has been reversed today: the corresponding figures are only 31% for rail traffic and 60% for road traffic. The Designated Freight Corridor (DFC) project is expected to increase the fright traffic in favour of railway again. With overall physical progress of about 70% as of March 2020, the mega project is expected to be a game changer in the country’s logistic sector. The government recently approved the restructuring of the Railway Board and it will now have four Members: Infrastructure, Rolling Stock and Traction, Finance, Operations and Business Development. The government plans to invest Rs 50 trillion during 2018-30 for the development of railway infrastructure. Rs 13.7 trillion worth of investment in the railways is envisioned during 2020-25. When it comes to trends, the Indian Railways will phase out diesel engine locomotives in the coming years and switch completely to electric ones. Indian Railways has registered its best safety record during 2019-20 (April to February) with zero passenger fatalities. Indian Railways has been becoming more amenable to newer technologies and solutions to improve its operational efficiency. Here are some such solutions: deployment of track management systems, anti- collision devices, electronic interlocking systems, predictive maintenance systems, aerial LiDAR topographic survey technique, dynamic tamping express machine for track maintenance, GIS based land asset management systems and PPP. Urban Rail segment - besides Metro, other alternative modes of transit in cities such as Light Rail Transit (LRT), Tramways and monorails are also being encouraged by the government as these are comparatively not as investment-intensive as metros and with limited space requirements in urban areas. Feel free to get in touch with the AußenwirtschaftsCenter New Delhi for further questions! Ein Service der AUSSENWIRTSCHAFT AUSTRIA Ein Service der AUSSENWIRTSCHAFT ÖSTERREICH (AWO) 5 2. RAILWAYS INDIA – STATUS QUO 2.1 Size and importance of the sector Indian Railways - an integral part of the Indian transport network for more than 150 years - is one of the largest railway companies in the world with a route length of 123,236 km and 1.3 million employees. 23 million passengers and 3 million tons of freight are transported every day. Indian Railways are 100% state-owned (Ministry of Railways). Indian Railways formulates guidelines, offers services and acts as an authority. The main source of income for Indian Railways is freight loading forming almost three-fourths of total railway earnings. From 2013-14 to 2017-18, fright earnings grew at a compound annual growth rate (CAGR) of 5.66%. So far, passenger traffic has played a secondary role as a source of income and the fares were not revised for a long time. Freight prices have had to be increased in recent years to such an extent that rail transportation was no longer competitive with road transportation. While in 1985-86 the market share of the railroad was 65% and the share of road traffic was 35%, the situation has been reversed today: the corresponding figures are only 31% for rail traffic and now 60% for road traffic. This and other factors have led to a deterioration in the operating ratio (expenditure in relation to sales) from a good 93.6% in 2013-14 to 98.4% in 2017-18. India's lack of infrastructure is hampering the country's economic growth. This lack of adequate infrastructure is also clearly noticeable in the Indian railway sector: in India, the track length is 35 km per 1,000 km2, while the global average is 100-150 km. With an average speed of only 25 km / h (in