UNIRAILINFRA Committee Debriefing UNIFE General Assembly Paris 19 June 2008

Martin Platzer Chairman

UNIRAILINFRA Overview

„ Established 2004 upon resolution of the UNIFE Presiding Board „ Terms of reference (extract): UNIRAILINFRA….. „ …studies and promotes developments and interests in the railway infrastructure sector „ …consists of suppliers and contractors active in the area of rail fixed infrastructure systems „ …is a platform for consensus building on infrastructure at a precompetitive stage, aiming at promoting investment and innovation

„ Activities: since establishment 15 meetings have been held „ Growth perspective: since founding a continuous increase in membership

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UNIRAILINFRA Membership „ Alstom Transport

„ Moravia Steel

„ Balfour Beatty Rail

„ Rail.One

„ Bombardier Transportation

„ RIA

„ Colas Rail

„ SIEMA

„ Corus Group

„ Siemens Transportation

„ EFRTC

„ VAE

„ Invensys Rail Systems

„ Voestalpine

„ Matisa

„ Vossloh

„ MER MEC UNIRAILINFRA – the representative forum of European railway infrastructure industry leaders with worldwide activities within UNIFE 19 June 2008

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EU Rail Transport Policy Developments „ UNIRAILINFRA reported on the following topics: „ Eurovignette / Internalisation of external costs „ Cross-acceptance of railway equipment „ Freight transport logistics: monitoring of developments towards „ European Freight (Dedicated) Network „ Freight Transport Logistics Action Plan

„ „ „ „ „ „ „

Trans-European Networks ERTMS (deployment plan) EP report on Transport White Paper Loan Guarantee Instrument for TEN-T projects Community guidelines on State aids for Railway Undertakings Presidencies of the European Union (Portugal, Slovenia and France (upcoming)) Rail investments in Central and Eastern Europe / EU Regional Policy „ Aim to promote rail infrastructure project development in NMS „ Warsaw seminar: “Implementation of Rail Infrastructure Projects in new EU Member

States” (11-12 July ’07) „ Speakers & participants addressed problems on the absorption of EU funds in new member states „ Speakers from UNIFE, EIM, ADIF, EFRTC, DG Regio, EIB, Polish and Romanian Railways; over 100 participants. 19 June 2008

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Investments in New Member States (1/2)

„ Investments in New Member States (NMS) Working Group Meeting (8 November ‘07)

„ Main objectives: „ Analysing the situation on the main CEECs markets: Poland, Czech Republic, Romania, Hungary, Slovakia „ Reflecting on UNIFE strategy in this field

„ Participants: „ European Commission (DG Regio) „ Consultant (CNTK Poland) „ Track contractors (EFRTC, Balfour Beatty Rail, Colas Rail, Vossloh) „ Railway infrastructure (Voestalpine) „ Integrators (Alstom, Bombardier, Siemens) „ Passenger coaches (Astra) „ National Associations (Agoria – Belgium, AIF – Romania, FIF – France) „ UNIFE 19 June 2008

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Investments in New Member States (2/2)

„ Case study example: Poland „ Biggest beneficiary of EU funds: around € 6 billion for rail „ Limited absorption capacity „ very slow investments „ not enough projects developed

Gdynia

Gdańsk

Słupsk Elbląg

„ preference for small projects

Koszalin

Tczew

Suwałki

Olsztyn Ełk Iława

„ Improving situation :

Szczecin Piła

„ Political stabilisation with interest

Działdowo Toruń

in development of HS network „ Improvements in the legal framework (expropriation law) „ Ambitious master plan Docelowe prędkości na sieci PKP PLK S.A. almost finalised (draft 201 - 300 km/h in October ‘07) 161 - 200 km/h

Inowrocław

Gorzów Wlkp. Poznań Zielona Góra Leszno Żagań

Węgliniec

Włocławek Płock

Konin

Warszawa

Kutno

Siedlce

Łódź

Kalisz

Terespol

Łuków

Ostrów Wlkp.

Dęblin

Tomaszów Maz.

Radom Skarżysko-Kam.Lublin

Wrocław

Jelenia Góra Wałbrzych

„ in line with the operational

Białystok

Ostrołęka

Legnica

141 - 160 km/h 121 - 140 km/h 101 - 120 km/h 81 - 100 km/h 60 - 80 km/h

„ Polish Master Plan

Bydgoszcz

Częstochowa

Opole Kłodzko Kędzierzyn-Koźle Gliwice

Kielce

Chełm

Zamość Stalowa Wola

Zawiercie

Katowice

Rybnik Bielsko-Biała

Tarnów

Kraków

Rzeszów Jasło

Przemyśl

Nowy Sącz

programme, but much more ambitious „ includes high-speed lines 19 June 2008

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Infra projects in CEE database (1/2)

„ Database of infrastructure projects in Central & Eastern Europe „ Based on a proposal made to UNIRAILINFRA, UNIFE developed a database of projects „ Contents: „ Compilation of the indicative lists of projects of the Transport Operational

Programmes of the CEECs „ Information on length, financing, timeframe, scope (new/modernisation/upgrading), type (main line/light rail/regional passenger transport/rolling stock/signalling), speed and other details „ Next steps: how to identify concrete projects

„ Limits: „ Official information, but not concrete projects „ Major projects mentioned in the OP can be sliced into a lot of smaller projects

„ Next steps: „ Objective: include concrete projects in the pipeline, contracts awarded,

distribution of the projects over the period 19 June 2008

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Infra projects in CEE database (2/2) COUNTRY Project

volume scope length Mio timeframe (extisting/ type

speed max

financing details

BULGARIA

Vidin-Sofia railway line

320 2010-2015

modernisation main line

BULGARIA BULGARIA

125 2010-2015 100 2010-2013

modernisation main line upgrading main line

160

BULGARIA

Sofia-Plovdiv railway line Sofia-Pernik-Radomir railway line Electrification and Reconstruction of Svilengrad – Turkish border railway line

Construction works, Signaling, Telecommunications and Information systems, 80% EU Supervision and Long term Assistance Construction works, Signaling, Telecommunications and Information systems, 80% EU Supervision and Long term Assistance 80% EU

35 2008-2010

modernisation main line

160

80% EU electrification and reconstruction

BULGARIA

Metropolitan Sofia extension: Nadejda junction - Central Station and Central Bus Station – Sveta Nedelia square – Tcherni Vrah blvd. And “Drujba” -new terminal at the Sofia Airport.

19

185.194 2008-2012

new

metro

145 2008-2011

new

metro

40.194 2009-2012

new

25.9 2008-2011

new

metro intermodal platform

63

upgrading

main line

BULGARIA

→ stage I : Nadejda junction - Central Station and Central Bus Station –Sveta Nedelia square – Tcherni Vrah blvd → stage II : Drujba” - new terminal at the Sofia Airport Construction of intermodal terminal in Sofia Plovdiv- Burgas railway line (alternative project)

BULGARIA

→ Tzerkovsky-Karnobat and Mihaylovo-Kaloyanovetz railway sections

30

upgrading

main line

BULGARIA

→ Drujba-Burgas railway section

33

upgrading

main line

83

modernisation main line

BULGARIA BULGARIA BULGARIA

BULGARIA BULGARIA BULGARIA BULGARIA BULGARIA

BULGARIA

Sofia-Dragoman railway line (alternative project) Mezdra-Gorna Oryahovitza railway line (alternative project) →Rail track renewal along PlevenButovo railway section →Rail track renewal along KuninoYasen railway section → Improvement of signalling and Doubling and electrification of Parvomai –Iabalkovo railway line (alternative project)

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160

upgrading

main line

63.5

upgrading

main line

81 15.5

upgrading main line modernisation signalling

23

upgrading

main line

85% EU

including Unload/Load Areas & Tracks, 85% EU Unload/Load Tracks, Rail Leads, Utilities,

incl. Maintenance activities for signalling, telecommunications and catenary equipment incl. Maintenance activities for signalling, telecommunications and catenary equipment Construction works, Signaling, Telecommunications and Information systems, Supervision and Long term Assistance

incl. Maintenance activities for signalling, telecommunications and catenary equipment incl. Maintenance activities for signalling, telecommunications and catenary equipment

160

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UNIRAILINFRA Guest Speakers

„ Guest speakers have broadened the committee’s scope and focused on issues central to members’ business

„ 9 September ‘07 „ Patrick Vanhonacker (D2S) delivered a detailed presentation on the status of the Urban Track project. „ Heather Allen – UITP, spoke about the UITP charter on Sustainable Development; the charter’s signatories commit to ensure that the three principles of sustainable development – social, economic & environmental – are embedded in their activities; UNIRAILINFRA companies were encouraged to join.

„ 9 March ‘08 „ Christos Gogos – DG Regio (European Commission) spoke on Rail Investments in the Czech Republic; his message: the main innovation in the Commission strategy is that Czech authorities now have to develop sectoral strategies more customer driven than just ‘building’ projects. 19 June 2008

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Interface with Technical Committee

„ Technical Committee „ Two representatives from UNIRAILINFRA – BB Rail & Voestalpine; representing infrastructure companies’ technical interests. „ 1st meeting in January ’08 involved evaluation of project ideas for UNIFE supported EC-funded research projects; UNIFE-led infrastructure project was approved subject to UNIRAILINFRA. „ 2nd meeting in April ’08 was a final discussion on and approval of projects to be submitted for the FP7 2nd call; UNIFE-supported infrastructure projects were approved for UNIFE participation. „ Technical Committee a new experience to infrastructure representatives, who intend to play a greater role in the future in bringing infrastructure topics to the table.

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Interface with Infra Mirror Group „ Status of the Infrastructure (TSI) MG reported at meetings „ Infrastructure MG activities „ Meets 4-6 times per year, before ERA WP meetings „ Reviews Infrastructure TSI in detail, proposes modifications/ additions & forms consolidated industry position for proposal at WP meetings

„ Representation of UNIFE (UNIRAILINFRA) at ERA WP „ 2 Main representatives; 2 Deputy representatives

„ Current Membership: „ „ „ „ „ „ „

Alstom – Speaker Balfour Beatty Rail Voestalpine, VAE Corus Rail.One Ansaldo STS Associated members: Pandrol, Sersa, Fachverband

„ Current TSI version 2.5 – on track, only some open points remaining 19 June 2008

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Technical and R&D activities „ FP7 2nd call submitted UNIFE-led project: “PM ‘n’ IDEA” „ PM ‘n’ IDEA – Predictive Maintenance employing Non-intrusive Inspection & Data Analysis „ Key drivers & objectives: „ Contribute towards the realisation of a 24 x 7 railway by minimising the disruption caused by activities such as inspection, remedial and reactive maintenance, and track renewal. „ Introduction of novel sensor and inspection technologies to monitor degradation of key components of the track system whose integrity is fundamental to satisfy the objective of 24 x 7 railway and associated increase in duty conditions. „ Bridge the current gap in standards for the definition and assessment of the structural integrity of grooved rail

„ Proposed Consortium (14-16 partners) „ Industry –large (4): Corus, Alstom, TSTG; MerMec; –SMEs (2) „ Urban Operators (4) : from UK, Italy, Belgium, Poland „ Academia (4): UK, Italy, Netherlands

„ Budget / duration „ 4 million euros; 24-36 months duration 19 June 2008

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Technical and R&D activities

„ FP7 2nd call submitted non-UNIFE led projects „ ARIB – Abatement of Railway Induced Vibration „ Large scale project led by Deutsche Bahn „ Objective is to provide the tools to reduced vibration below the threshold of reception and induced noise below background levels by 2012. „ UNIFE role: Dissemination activities

„ RAILVIBES (RAilway Innovative Low VIBrations Efficient Solutions) Led by D2S

„ Large scale project led by D2S (Belgium) „ Objective to develop low cost high performing solutions to reduce vibrations and ground borne noise for residents. Attention will be placed on mitigation measures at the source, at transmission pad and at the receiver. „ UNIFE role: Dissemination activities

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INNOTRACK project (1/2)

„ INNOTRACK „ Jointly funded research project to develop cost-effective high performance track infrastructure; overall objective is to reduce LCC by 30% while improving RAMS.

„ Reporting on work progress „ Yearly reporting completed with generally positive response „ Real potential to create new innovative standards in RAMS and LCC

„ Developments within sub-projects „ LCC well advanced; model developed and cost breakdown structure being

finalised based on inputs from technical SPs. „ RAMS less advanced in beginning but progress now being made. „ Logistics entering important phase with existing methods reviewed and interfaces with other SPs being established.

„ Training platform – workshop for IMs and Industry on LCC „ Workshop for IMs and Industry on LCC held 26-27 Feb at UIC; very well

attended by Industry, fair attendance by Infrastructure Managers. „ Technical training within SPs planned with specific training needs still to be defined. 19 June 2008

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INNOTRACK project (2/2) „ Industry-meets-SP6 on LCC „ Working group of Industry and SP6, termed “Industry-meets-SP6” completed it’s first phase on agreement on LCC methodology / model and entered its second phase of collaboration on LCC. „ 1st phase – Industry-meets-SP6 „ „ „ „

Confidence from Industry in LCC model; verified with examples LCC model flexible enough to take into account new costs identified Agreement between Industry & Railways 30% LCC reduction can be achieved Willingness from both sides to continue collaboration on LCC

„ 2nd phase – “Systems Approach” to LCC calculation: „ Meeting took place Feb 12 at UIC; strong participation from Industry,

fair participation from Railways/IMs; all SPs represented. „ All technical SPs charged with generating references for LCC calculation; SP4 in “trailblazing” role as example for other SPs. „ Future step to combine SP solutions into ‘overall system’ scenarios.

„ Key Meetings / Events „ 1st year review meeting with Commission (November ’07) „ General Assembly / Dissemination Workshop (November ’07) „ 4 joint Industry / SP6 meetings on LCC (1st phase -> 2nd phase) 19 June 2008

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Urban Track project „ Urban Track „ Jointly funded research project aimed at developing, testing and validating innovative products and methods for urban rail infrastructure with the overall objective of reducing LCC by 25%.

„ Reporting on work progress „ Technical SPs developed with implementation phase commencing ‘08 „ Network of Industries „ Temporarily delayed but eventually supported by Exec. Committee following presentation

by UNIFE on benefits of Network, project & EC requirements and clarification of Industry position on confidentiality of deliverables. „ Seeking additional industries to participate.

„ Cross-collaboration between Urban Track and INNOTRACK „ Pursuit of common approaches on LCC and comparability of results „ 2 meetings held: 1st meeting October ’07; 2nd meeting April ’08.

„ Key Meetings / Events „ General Assembly (September ’07) „ Joint Urban Track-INNOTRACK meetings on LCC „ LCC calculation workshop (June ’08)

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LOOKING BEYOND EUROPE Performance & cost

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Requirements of Railways

R

Reliability

A

Availability

M

Maintainability

S

Safety

Low Life Cycle Costs 19 June 2008

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Example: FAST Heavy Axle Load Program

„ FAST/HAL train: 75-80 coal gondolas, 35.4 metric ton axle loads

„ 150 MGT in 2007 Accelerated Program

„ FAST Experiments „ Rail performance „ Rail welding „ Ties and fasteners „ Rail profile grinding „ Special trackwork „ Bridges „ Mechanical components 19 June 2008

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Example: Research Collaboration between Korea, China, and Japan

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Example: World steel production per region

China Increase within 7 years: + 285% (without China just + 15%) or today ~ 37% of world steel production (2000: 15%) 1,600

1,413 1,321

1,400

1,242

1,200

Mil. to

1,000

1,069 904

848

800 600

127

182

2000

2002

281

421

489

2006

2007e

523

400 200 0 EU 27

NAFTA

2004 CIS

Japan

China

2008e

other countries

[Source: www.stahl-online.de; www.worldsteel.org]

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International price trends for IRON ORE Price settlement CVRD and Nippon Steel from

fines Brasil ex shipping harbor (FOB)

17 February 2008

160 140 120 USDc/Fe-unit

+ 65,0%

100 + 9,5%

80

+ 19,0%

60 40

+ 9,0%

+ 18,6%

+ 71,5%

20 0 2000

2001

2002

2003

2004

2005

2006

2007

2008

Vertragsjahr Source: VAROB February 2008

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International price trends for COKING COAL Forecast 2008:

hard coking coal FOB Australian ports

min. +200% occurred

350 300 - 7,0%

USD/mt

250 200

+ 117,0%

- 16,0%

150 + 24,0%

100

- 4,0%

50 0 2002

2003

2004

2005

2006

2007

2008

contract year Source: VAROB April 2008

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Understanding LCC (life-cycle cost)

„ The compelling logic of the LCC/RAMS-strategy (most economical solutions with a high innovation content vs. "cheap products" mainly from outside EU)

„ The only intelligent way to cope with dramatic cost increases which are beyond the influence of the industry (raw materials, energy, etc.)

„ Establish sustainable win/win solutions with our customers

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The Way to the System with best LCC´s

„ Create and produce excellent components - Be a technology / innovation leader

„ Install the components with the best quality possible - Be a system-competent quality leader

„ Keep the availability on the highest level possible - Be a customer benefit leader

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OTHERWISE………….

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THANK YOU VERY MUCH FOR YOUR KIND ATTENTION!

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Providing competitive Railway Systems for Increased Rail Traffic

www.unife.org 19 June 2008

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