Railway Newsletter

The government of New Zealand has approved a NZ$750 million package towards a ten-year recovery plan for the New Zealand Railways Corporation (KiwiRail).

Auckland - Wellington - Christchurch freight corridor is the main target for the investment plan. KiwiRail is expected to provide NZ$3.85 from its future profit, as freight traffic is forecast to increase in the next decade.

Prime Minister John Key said, "The plan aims to see the KiwiRail group become within 10 years a sustainable freight-based business that is able to fund its ongoing operating and capital expenditure from customer-generated revenue," according to The New Zealand Herald newspaper.

Ways of subsidising passenger services and viability of some small regional lines have yet to be clarified. By comparison, around NZ$11 billion have been allocated to be spent on the country's roads in the next few years.

(Source: The New Zealand Herald)

The annual subsidy of N$83.9 million (US$10.9 million) allocated by the Namibian government to modernise the country's railway infrastructure is not enough, according to allAfrica.com, which quoted a report of the Institute of Public Policy Research (IPPR).

State-owned TransNamib is in need of major investment programmes to improve its efficiency, after being denied any subsidy in 2009. "The extension of harbours as well as of the railway lines to Oshakati and Angola, and the plans for a Trans-Caprivi railway line will require a major rehabilitation and upgrade of the existing network," said IPPR research associate Klaus Schade.

For the period 2010 to 2013, the government has budgeted N$2.2 billion (US$285 million) for infrastructure upgrading works and N$279 million (US$36.2 million) for the extension of the northern railway line.

(Source: allAfrica.com)

Algerian national agency for railway development ANESRIF (l'Agence Nationale d'Études et de Suivi de la Réalisation des Investissements Ferroviaires) has awarded a contract to design and build a 185 km railway line between Rélizane, Tiaret and Tissemsilt.

The joint venture between Spanish company FCC and ETRHB Haddad has been selected for the €935.5 million project, which includes railway stations and maintenance buildings. The single track new line allowing speeds up to 160km/h is part of the 2009-2014 national mega-plan for economic development.

FCC Construcción has built several railway lines in Spain, India, Germany and Greece. FCC Group operates in 54 countries worldwide and has more than 92,000 employees. It posted a €12.700 billion turnover in 2009.

The Algerian group ETRHB Haddad, with 6,000 employees, is involved in projects under the government's 200 billion dinars Programme of Complementary Support for Economic Growth.

(Sources: ANESRIF; FCC; ETRHB Haddad)

Polskie Koleje Panstwowe (PKP - the Polish State Railways) has selected an international consortium to conduct a feasibility study for a high speed railway network connecting the cities of Wroclaw, Poznan and Lodz with capital Warsaw.

The wining consortium of the €12.7 million contract is formed of Spanish-based Idom Ingenieria Internacional SA and Communication Design Office, Poznan (Poland). It will be required to produce within 27 months an analysis of possible solutions, including environmental impact, connections with the Central Railway Line and criteria for selecting contractors to build the high speed lines.

Engineering, architecture and consulting services provider Idom Ingenieria Internacional SA, with 2,500 staff, has been active in 13,000 projects across four continents.

(Sources: PKP; Idom Ingenieria Internacional SA)

US intercity passenger rail operator Amtrak has announced a list of infrastructure projects worth US$1.1 billion for 2010.

The American Recovery and Reinvestment Act is to provide US$590 million in addition to US$420 million from Amtrak's annual capital programme. Building and modernising tracks, bridges and stations along the Northeast Corridor and areas around Chicago, Los Angeles, Seattle and the Miami are this year's priorities.

"We are investing in our infrastructure to improve the reliability, safety and security of our operations and support the growing demand to travel by Amtrak," said President and CEO Joseph Boardman.

Figures for 2010 showed an increase in numbers of passengers, following the second-best year in Amtrak's history with 27.2 million passengers transported in fiscal year 2009.

(Source: Amtrak)

The government of Vietnam has submitted an ambitious plan to build a high speed railway line from the capital Hanoi to Ho Chi Minh City.

Bullet trains running at speeds of up to 300 km/h are expected to cut the travelling time on the 1,570 km route to six hours. Prime Minister Nguyen Tan Dung was quoted by Thanh Nien newspaper as saying, "We have considered transport by road, waterway and air, but these would not be able to satisfy transport demands. It is necessary to build an express railroad,"

Critics consider the US$56 billion project too expensive, and the government is seeking Japanese technical assistance and funding from the World Bank. The plans are to be debated by the National Assembly, which is expected to have a final say this summer.

(Source: Thanh Nien)

Serbia is to upgrade a 40 km railway line connecting Nis to Dimitrovgrad with a €120 million loan from the Czech Export Bank, according to Railway-technology.com. The railway section is part of the Pan-European Corridor X.

Milovan Markovic, general manager of state railway company Zeleznice Srbije, was quoted by The Moscow Times as saying that Russia would assist Serbia with funding for two railway projects worth €470 million euros.

The European Bank for Reconstruction and Development (EBRD) is to consider later this year part-funding of a €296.4 million railway project for the Pan-European Corridor X. Pending EBRD board approval, Serbia will be granted a €100 million loan from EBRD and a further €150 million loan from the European Investment Bank to upgrade tracks and rolling stock.

(Sources: Railway-technology.com; The Moscow Times; EBRD)

On 5 May 5 2010, Veolia Environnement and Caisse des Dépôts announced that both companies had signed the final agreements regarding the merger between Veolia Transport and Transdev.

Veolia Environnement, parent of Veolia Transport, and Caisse des Depots et Consignations, parent of Trandev, will have equal shareholdings in the new Veolia-Transdev group, which is estimated to employ almost 120,000 people and operate in 28 countries.

Veolia Transport, which provides bus, train and ferry services in 15 European countries, Australia and the USA, posted a €1,355.9 million consolidated revenue at 31 March 2010. The Transdev Group, an European provider of public transport services, had a €3.57 billion turnover in 2009, a 9 per cent increase compared to 2008.

(Sources: Veolia Environnement; Transdev Group)

Pakistan has planned to transform the old Karachi Circular Railway (KCR) into a mass transit system due to open by 2014. Some 290 trains - electric multiple units (EMU) - are expected to carry 700,000 passengers per day.

Railway-technology.com has confirmed that the Japan International Cooperation Agency (JICA) is to provide Pakistan with a PKR128.6bn ($1.53bn) loan to modernise the 50 km railway line. The revival project includes new stations and computerised ticketing.

Construction for the first stage will start this year, following the feasibility study for the revival of the KCR carried out by Japan External Trade Organisation (JETRO).

(Source: Railway-technology.com)

Swiss Federal Railways (SBB) has awarded a contract worth SFr1.86 billion for 59 Bombardier double-decker trains, with an option for a further 100 trainsets.

Bombardier has been selected as the winner of the largest ever rolling stock order placed by SBB. German Siemens and Swiss Stadler Rail were the other two bidders, according to Railway Gazette International.

The electric multiple-units equipped with modern technologies are to be produced in Swiss and German plants, following the agreement with Bombardier Transportation Switzerland SA, the Swiss subsidiary of Bombardier. Delivery is scheduled between 2012 and 2019, with SBB long-distance services expected to operate the first new Bombardier train by 2013.

(Source: Railway Gazette International)

The supervisory board of Deutsche Bahn AG (DB) has decided to proceed with the takeover of Arriva, Britain's second largest bus company. DB operates trains in many countries, including Britain's EWS and Chiltern Railways. Chairman of the DB board, Prof Utz-Hellmuth Felcht, said that "Germany will remain the key market for Deutsche Bahn". The £1.6 billion deal could see the new European transport giant carrying some 10 million passengers a day, if the sale is ratified by the German government.

DB has announced that it will sell Arriva's rail business in Germany (subsidiaries Prignitz Railway (PEG), East Hannover Railway (OHE), Regentalbahn and Alex), as required by the European competition legislation. Arriva, which operates Welsh and CrossCountry rail services in the UK, as well as bus and rail operations in ten other European countries, is to keep the headquarters in Sunderland and retain its brand outside Germany. German state-owned DB reported a €1.7 billion profit last year, on a turnover of €29.3 billion. In 2009, Arriva had 42,300 employees and a £3.15 billion revenue.

(Source: DB AG)

The Iceland volcano ash cloud that practically closed down European airspace for almost a week offered an unexepected opportunity for railway operators. Main routes between Paris and cities in Italy, Spain, Germany and Switzerland saw an increase in seats capacity and suplementary trains, including overnight services. Eurotunnel doubled its capacity through the Channel Tunnel and Eurostar provided an extra 33 trains a day between the UK and mainland Europe.

Although many European railway providers have reacted strongly and reported sharp increases in services and revenue during the air crisis, there were serious gaps in terms of capacity and availability for both passenger and freight markets. That is why the Community of European Railway and Infrastructure Companies (CER) has recently called for more public investment in railways, as a sustainable alternative to air transport. CER Executive Director Johannes Ludewig said: "If Europe sets the right priorities today, rail can become the main transport choice on distances of up to 1,000 km in the near future."

(Source: The Community of European Railway and Infrastructure Companies)

China Railway Group has been awarded a US$4.8 billion contract to build and maintain a 307 km railway in southern Sumatra (Indonesia) for PT Bukit Asam Transpacific Railway (BATR). The 24-year agreement is expected to be ready for operations by 2014, at a guaranteed capacity of 25 million tons per year, the Jakarta Post reported. BATR is a joint venture between PT Transpacific Railway Infrastructure (80 per cent), the Indonesian coal producer PT Bukit Asam PTBA (10 per cent) and China Railway Engineering Corporation (10 per cent). Chinese banks will provide funding for 70 per cent of the cost of the project, and PTBA is to cover the remaining 30 per cent.

Last year, the state-owned China Railway Group saw his profit jumping to 6.89 billion yuan (US$1 billion), on sales of 345.97 billion yuan (US$50.65 billion), according to TradingMarketrs.com.

(Sources: The Jakarta Post; TradingMarkets.com)

North and South Sudan are linked again by a railway line between the towns of Babanusa and Wau. Freight services on the 446 km line, opened in 1962 but cut 22 years later during the civil war, will provide a crucial economic connection at lower transportation costs. The Sudanese government paid for more than half of the US$51 million project through the Unity Support Fund, according to SudanTribune. The Multi-Donor Trust Fund (MDTF), administered by the World Bank, funded the remaining cost.

(Source: SudanTribune)

A cross-country railway is to connect the eastern and western regions of Mongolia, as part of the future transportation network in North-East Asia. Mongolia's parliament has approved the construction of a 5,000 km rail network, according to The Financial Times. William MacNamara writes that construction of the first 1,800 km railway lines is due to start this year. The government is to foot the cost of the whole project, although estimates have not yet been released. Public-private partnerships that include international transport companies may also be considered.

Ulaanbaatar Railway Mongolian-Russian Joint Venture (UBTZ) is in charge of the country's 1,815 km rail network. Last year, Mongolia Energy Resources LLC signed an agreement with Deutsche Bahn to build a 260 km railway for coal transportation.

(Source: The Financial Times)

Latvia, Lithuania and Estonia have launched a feasibility study for the 1,435 mm gauge Rail Baltica corridor. It is aimed at providing passenger and freight services on a fully interoperable European railway between Tallinn (Estonia) and Poland, via Latvia and Lithuania.

UK-based AECOM Ltd is conducting the study under the supervision of an international steering committee, formed of representatives from the three Baltic countries. The €396,000 feasibility study, co-funded by the European Union through the TEN-T Programme, is to be completed by 2011. Baltic countries are expected to secure half of the €36.34 million cost of the technical documentation.

(Source: EUROPA)

The old rail network of the Société Nationale des Chemins de fer Congolais (SNCC), the state railway in the Democratic Republic of Congo, is to be repaired with the World Bank's assistance. Rehabilitation of 700 km of the total 3,641 km of track and acquisition of locomotives and rolling stock are the main targets of the project, according to Railway Gazette International.

Transport and communications minister Mpita Mathieu is leading a programme of reforms, with technical assistance privided by Vecturis, a Belgium-based rail operator. The African Development Bank (ADB) and the government injected almost US$20 million last year to stabilise SNCC activities. Railways Africa reported the government estimated that the US$360 million necessary for the near future could be financed by Chinese banks and the World Bank.

(Sources: Railway Gazette International; Railways Africa)

Spain has launched a €17 billion infrastructure plan (Plan Extraordinario de Infraestructuras PEI) aimed at boosting the economy and creating new jobs. High-speed rail projects, freight corridors and suburban railways will get 70 per cent of PEI, which is a fully-funded joint commitment through the use of public-private partnership solutions with long-term concessions. According to Reuters, the European Investment Bank and Spanish banks are expected to fund some 80 per cent of PEI, with the remaining 20 per cent to be provided by private companies.

(Source: UK Reuters)

Three people were killed and at least 11 injured on 1 April 2010 at Spišská Nová Ves (Slovakia), when a locomotive ran into a stationary passenger train. The Slovak Spectator cited unofficial reports as saying that the accident happened after the locomotive's brakes failed.

On 12 April 2010, a huge landslide knocked a commuter train off the rails in the Italian province of Merano, killing nine people and injuring dozens. An official inquiry has been launched, but Corriere della Sera wrote that the train disaster might have been caused by a leaking pipe in an irrigation system.

Two train crew lost their lives on 21 April 2010 when a luxury tourist train derailed near Pretoria (South Africa), according to Metro newspaper. More than twenty-five passengers were taken to hospital after seventeen carriages of the Capetown-Pretoria train came off the track during a routine change from an electric to a steam locomotive.

(Sources: The Slovak Spectator; Corriere della Sera; Metro)

Cross-Channel operator Eurotunnel has reported a €1.4 million net profit at the end of 2009, despite an unfavourable economic context. Although traffic through the Channel Tunnel was limited for several weeks following a fire in September 2008 and then suspended in December 2009 due to technical problems, the number of Eurostar passengers grew by 1.2 per cent to more than 9.2 million in 2009. Annual turnover dropped to €640 million (11.2 per cent less than in 2008), mainly because of a steep decline in lorry traffic. Eurotunnel shuttle generated €311 million revenues, down from €411 million in 2008, while earnings from rail business (Eurostar and rail freight) remained at €250 million.

(Source: Eurotunnel)