This report inculdes railway market information in Thailand, Vietnam and Malaysia, and the opportunities for the UK companies.
www.uktradeinvest.gov.uk UK Trade & Investment RAIL SECTOR Scoping Mission to South East Asia Featuring Thailand, Vietnam & Malaysia September 2008 Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Enterprise & Regulatory Reform, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published September 2008 by UK Trade & Investment. Crown Copyright © 1 www.uktradeinvest.gov.uk The UKTI led Railway scoping team undertook a railway scoping mission to Thailand, Vietnam and Malaysia, herewith contained information learned during the teams visit. Members of the UKTI Delegation: This document was produced with the kind assistance of the under noted Rail professionals, to whom I extend the appreciation of UKTI for their kind assistance: Name Company Position Bob Docherty UKTI International Business Specialist Neil Walker UKTI Deputy Head, Rail Sector Team Tim Gray RIA International Development Director Jeff Randall Brecknell Willis Regional Manager Jim Cudd Invensys Rail VP Marketing Acknowledgement Recognition must be given to the Trade & Investment Officers of the UK Trade & Investment office at the British Embassies and High Commission Offices in Bangkok, Ho Chi Minh & Kuala Lumpur. These Officers were responsible for preparing background documents for their various Rail markets, and arranging a superb visit programme. British High Commissions and Embassy Name Location Position Mr Attakorn Sarapola Bangkok Trade and Investment Manager Ms GiangThi Ha Ngyuen Hanoi Trade and Investment Officer Mr Trevor Lewis Kuala Lumpur Director for Trade & Investment Ms Judith Lourdesmay Kuala Lumpur Trade and Investment Officer These colleagues provided first class support and access to Officials at the highest levels in the Markets visited, and as such their assistance and expertise is readily acknowledged. Contacts in UKTI Rail Sector Team Mr Neil Walker Mr Bob Docherty Deputy Head International Business Specialist Railways Sector UKTI Tel +44 20 7215 4773 Tel +44 7879 661 598 Email firstname.lastname@example.org Email email@example.com Further information on International railway markets along with international railway business opportunities and UKTI railway arranged events (Trade Missions, Seminars and inward missions) are available on the railway sector page of UKTI?s website, www.uktradeinvest.gov.uk for UK companies. Please note you will need to register to view the full information. 2 www.uktradeinvest.gov.uk Section CONTENTS Page No Thailand 1 Summary ? Thai Rail Market 6 1.1 State Rail of Thailand (SRT) 6 1.2 SRT Recovery Plan 6 1.3 Urban Transportation (Bangkok) 6 1.4 Economy & Market Characteristics 6 1.5 Opportunities for UK companies 6 2 Introduction to the Rail Sector 7 2.1 Structure & Governance 7 2.2 Brief History and Background 7 2.3 Operations Review & Improvement Plan 7 2.4 Recovery plan 7 2.5 Track Doubling / Priority Programmes 8 2.6 Finance 9 3 Introduction to Urban Transportation 9 (Bangkok) 3.1 MRTA (Blue Line) 9 3.1.1 MRTA Physical Data 10 3.2 BTS (Green Line / Skytrain) 10 3.2.1 BTS Physical Data 11 3.3 Planned Extensions to Bangkok Metro System 11 3.3.1 Table of extension plans 12 3.3.2 Purple Line Extension 12 3.3.3 Blue Line Extension 12 3.3.4 Orange Line 13 4 UK Companies experience in Thailand 13 5 Local Manufacturing 13 6 International Links 13 6.1 Link to Cambodia 13 6.2 Link to Malaysia 13 7 Opportunities for UK Companies 13 Appendix I SRT Network 15 Appendix II SRT Track Doubling Plan 16 Appendix III Bangkok Master Plan 17 Vietnam 8 Summary of Vietnam Rail Market 18 8.1 Vietnam Railway Corporation (VNR) 18 8.2 Urban Transportation 18 8.3 Economic Overview 18 9 Vietnam Railways Overview 19 9.1 Introduction to VNR 19 9.1.1 Brief History 19 9.2 Key Officials & Structure 20 9.3 Priority programmes 20 9.4 Tenders Website 21 9.5 Vietnam National Standards Agency (STAMEQ) 21 9.6 Railway Law 21 9.7 VNR Physical Data 22 9.8 Rolling Stock 22 9.9 Freight & Passenger Data 22 9.10 Revenue 23 3 www.uktradeinvest.gov.uk 9.11 Passenger Transport Operations 23 9.12 Private Train Operating Companies 23 9.13 Freight Operations 23 9.14 Tourism Operations 24 9.15 Signalling & Telecomms 24 9.16 Construction Company & Capability 24 9.17 Track Maintenance Company and Capability 25 9.18 Rolling Stock Manufacture 25 9.18.1 Dian Carriage Company 25 9.18.2 Gia Liam Train Company 25 9.18.3 Haiphong Carriage Company 25 9.19 Training 26 9.20 Consultancy & Engineering Capability 26 10.0 Urban Transport 26 10.1 Introduction and Background 26 10.2 Hanoi Masterplan 27 10.2.3 Projects Underway / Line 1 Status 27 10.3 HCMC Masterplan 28 10.3.1 HCMC Development Plan 29 10.4 Japanese Consortium NJPT for Line 2 29 11 TEDI (Transport Engineering Design Company) 29 JSC 12 Saigon Railway Materials JSC 30 13 Opportunities for UK Companies 30 Appendix IV VNR Organisation Structure 31 Appendix V VNR Rail Map 32 Appendix VI Useful Contacts 33 Malaysia 14.1 Summary of the Malaysian Rail Market 34 14.2 KTMB State Railway 34 14.3 Urban Transportation 34 14.4 KLIA Airport Express Rail Link (YTL) 34 15 Key Contacts and Acknowledgements 35 16 KTMB ? State Railway of Malaysia 35 16.1 Overview 36 16.2 Historical Background 36 16.3 Projects 36 16.4 KTMB Physical Data 38 17 Urban Railways 38 17.1 SPNB (Governing Body) 39 17.2 RapidKL (Operations & Maintenance) 40 17.3 Ampang Line (formerly STAR Line) 40 17.3.1 Planned Extension to Ampang Line 41 17.4 Kelana Jaya Line (Formerly PUTRA Line) 41 17.4.1 Planned extension to Kelana Jaya Line 41 17.4.2 Fleet Extension on Kelana Jaya Line 42 17.5 System Integration 42 17.6 Ticketing & Fare Collection 42 17.7 (Further) Planned Extensions in RapidKL 43 18 YTL 43 18.1 KLIA Express (Operations) 43 18.2 KLIA Express Maintenance E-Mas 43 4 www.uktradeinvest.gov.uk 18.3 High Speed Rail Link to Singapore 44 19 Scomi Engineering 44 20 Balfour Beatty Rail 44 21 Ircon Engineering 44 22 Penang Monorail System 44 23 Opportunities for UK Companies 45 Appendix IX KL System Map 46 5 www.uktradeinvest.gov.uk Thailand Rail Scoping Mission Summary 1.1 National / Mainline Rail The Rail sector is currently enjoying a higher profile following a period of under investment. Higher energy costs and growing congestion to the re ?emergence of Rail as a vital mode of transport. The Rail market in Thailand is headquartered in Bangkok and features both traditional heavy rail and a thriving metro sector. State Railway of Thailand is responsible for the National / mainline Railway and is a fully integrated State owned company operating some 4000 route km of track, delivering both passenger and freight services. 1.2 General It is readily acknowledged that investment in Rail suffered in the past as railway was not a favoured mode of transport, yet economic reality and rising energy costs are now facilitating the rising awareness of the importance of Railways. Government policy is to affect a modal shift from Road to Rail due the sharp increase in energy costs. There is a National Logistics Development Strategy which aims to increase the efficiency of rail connection between the North / North saving energy and increasing efficiency. A recovery plan for Rail has been put into operation, with plans to extend Rail Services across the country and into neighbouring countries. Further elevated commuter lines in Bangkok will be constructed and the airport will provide an electrified rail link to the central business district. Details of the projects underway can be found in the full report. 1.3 Metro (Bangkok) Bangkok has 2 Metro systems operated by 2 separate companies, both of which will be extended in the very near future. In addition, there is a (standard gauge) rail link to the airport though still under construction it will soon be in operation (early 2009). A unitary authority is being developed to take control of rail within Bangkok, and a cross city, suburban service known as the ?Red Line? is being developed by SRT to relieve congestion in Bangkok. 1.4 Economy & Market Characteristics The Economy remains hopeful of growth despite the concerns of recent significant rise in energy costs. The economic performance has recently under-performed ASEAN neighbours following the most recent coup of 2006. However, a new constitution has been in place since August 2007, and an election has taken place empowering a coalition Government lead by the Palang Prachachon Party and five smaller parties. There have been numerous coups since the switch from Absolute to Constitutional Monarchy in 1932, in some ways demonstrating the resilience of the Country. That said, Bureaucracy is considered to be deep rooted, market confidence is fragile and with rising energy and food prices being a major concern for stability in the short term. Despite the above, the UK has a significant level of FDI, though the Japanese have a much larger presence. UK interests include outsourced manufacture, electronics and financial services. Japanese interest also extends to Infrastructure hence the prominence of Japanese interests in Construction and Consultancy. 1.5 Opportunities for UK Companies Consultancy is certainly one area that will interest UK companies, but the extensions planned for Metro and the SRT recovery plan including removal of pinch points may yield opportunities. With rising costs and a desire to improve performance across the spectrum, UK companies that can demonstrate efficiency measures or performance enhancements should be welcomed. Signalling certainly needs to be upgraded. 6 www.uktradeinvest.gov.uk Thailand ? Detailed Report 2 Introducing the Thai Railway Sector 2.1 Railways Structure and Governance There are three bodies covering Rail Operations: ¾ State Railways Of Thailand (SRT) being the integrated State Owned Railway ¾ BTS (Sky Train / ?Blue Line?) Private Company being the Owner & Operator of 24 km Metro Line in Bangkok with a 30 year concession ¾ MRTA who own 20 km Metro (Green Line) in Bangkok and let a 25-year operating concession to BMCL. The SRT Network is shown in Appendix I. 2.2 Brief History SRT began in 1891, when (then) Chulalongkorn, engaged a prominent British businessman to develop the Rail Operations. The first train ran in 1894. A mixture of gauges followed in successive developments, however a decision was taken in 1930 to convert all lines to metre gauge conforming to the Rail networks of neighbouring countries of Malaysia, Burma & Cambodia, prior to that time, Rail on the East Bank of the Chao Phaya River was standard gauge. SRT was privatised in 1951 and remains a State Owned Enterprise. 2.3 SRT Operational Review In view of losses and lack of investment in the past, SRT have now prepared a recovery plan to overcome lower performance resulting from congested track. Proposals include doubling and tripling of track to overcome pinch points and reduce journey times in both passenger and freight operations. (One comment noted that as many as 400 locomotives were required to provide traction for the network.). There is however no current intention to electrify the system, despite proposals for this in the recovery plans. Route km Metre gauge Km Single Track 3697.5 Double Track 172.9 Triple Track 106.7 Staff Employed 26412, of which officers = 10354 2.4 Recovery Plan The proposals include the establishment of a separate but wholly owned company to overtake Rail Operations. This company would progressively take over those lines newly electrified. (As stated above, the investment to electrify lies has not yet been nominated). A similar process is proposed for the Operation of the airport express currently under construction but which will commence Operations early next year. Further proposals include the establishment of a separate company for training, and the establishment of Independent Standards and a more business like culture. Some private Capital is utilised in the Logistics sector, but otherwise opportunities are currently limited. A new Management team including 5 Rail experts who have been recruited externally and with an International flavour, to effect the turn around, implement a new business plan and operational model. In addition to three Thai Nationals recruited from the Metro sector, the team includes one person from Hong Kong, and another from Germany. Leasing has been considered to provide additional traction, however availability of metre gauge rolling stock may limit options here, even if budget is made available. Whilst some maintenance is outsourced to Siemens, developments could include potential JV?s in future for maintenance, particularly if SRT secure the Operations of the Airport Rail Express. 7 www.uktradeinvest.gov.uk 2.5 Priority programme / Track Doubling The priority for SRT is track doubling (or tripling) and rehabilitation to relieve congestion and facilitate a modal shift from road to rail, including upgrading the signalling system. Under investment at the expense of roads has caused deterioration and as such service improvements were vital to survival. Further steps include plans to establish a property development company and a logistics and distribution company. Otherwise, SRT noted the need to return to Government for additional funding to cover the shortfall from the budgeted prices as prices had risen in the interim from budget to implementation. This suggests the enhancements planned are not proceeding to the planned timetable, and Officials acknowledge the need for major investment. SRT operate essentially with 50 kg / 100lb rails on ballasted track using e clip, though both Vossloh and Stedeff fastenings are approved. The majority of track is on the plains in the Eastern Seaboard, therefore there are no issues with gradients or bridges. New standards to be applied will aim for 20 mt axle loads, 130 kph traffic and new signalling. 2.5.1 Track Programmes Planned Project Budget Description Thai Baht M Chachoengsao ? 5850 A 78 km stretch of track in the suburbs and a Sri Racha-Laem 177km on the Eastern Seaboard that will be Chanbang completed in 2010 at a budgeted cost of 5850 Section, Eastern M Baht. This link will ease congestion and Seaboard. provide capacity for 1 M teus freight 78 + 110 km enhancing the competitiveness of Rail, by supporting Phase 2 of Leam Chanbang Port Expansion Project. Chacoengsao ? 7648 Part of the National Logistics Development Khlongsibkao / Strategy which aims to increase the efficiency Kaengkoi of rail connection between the North / North 106km East and Laem Chabang port more quickly and at less cost. Plan is to add 30 trains per day adding 5 M tonnes of freight pa. Makkabao ? 9030 / This double tracking project will allow SRT to Pakchong ? 12,900 run 115 additional trains per day from Nakhon Bangkok to Nakon Ratchsima as well as Ratchasima offering much more operational efficiency, by 129 km improving loco & wagon turnaround. Nakhon Pathom ? 41,090 / Track doubling on this stretch will provide train Surat Thani 58700 M path for 62 additional trains per day and 587km improve journey times by 87 minutes for passenger trains and 600 minutes for freight trains. Lop Buri ? Sila At 22,750 / This project will increase efficiency and the 325 km 32,500 double tracking stretch to 488 km from Bangkok to Nakhon Ratchasima and provide trainpaths for an additional 74 trains per day, reducing journey times by 74 minutes for passenger and 213 minutes for freight trains. Red Line 59,888 M This major project is aimed to increase the Commuter Train + efficiency of the Bangkok commuter services, Project 13,133 M offering a competitive safer service. Also Bangsue to serving as part of the National Logistics Rangsit Strategy (in the East to South route) and will Bangsue to be used by electrified commuter trains in Talingchan future.40 trains to the South are planed and 75 trains on the Northern line, easing 8 www.uktradeinvest.gov.uk congestion on 8 level crossings Passenger numbers are predicted at just over 300,00 per day in the first year of operation rising to 465,00. Airport Rail Link 30 Bn A Cabinet Resolution established this rail 28 km project to link the Airport directly with the City Centre in 15 minutes. A Second Operation will service 6 stations en route reaching the airport in 30 minutes. Both services will come into operation in 2009 and a City Air terminal will be added to enhance efficiency. 2.6 Finance There may also be a Rail Regulator type operation that may emerge from preliminary talks between Ministries of Finance and Transport, though it is early in this process. There is limited facility for Private Capital in the Thai market, law being one hurdle. Government is not allowed by Law to support Private Companies. However should finance may be made available, Sovereign Guarantees would be provided (for example to Financed Infrastructure agreed Centrally by Government). 3 Introduction to Urban Transportation (Bangkok Area) Bangkok operates two existing systems, MRTA (the Blue Line) and the Skytrain, (BTS, or the Green Line). Feasibility studies for rail systems for both Phuket and Chai Mai have been considered but not progressed. Urban transport focus remains on Bangkok meantime. The current two lines system will be enhanced to provide 10 lines providing up to 300 km total length, shown in the master plan in Appendix I. The priority projects are extensions to the existing Blue and Green Line, including a so-called blues ?Circle Line, a Purple Line and the SRT Commuter Red Line. These lines are shown in the extract below, the descriptions taken from the ?10 Routes? published by the Office of Transport and Traffic Policy and Planning of the Ministry of Transport in Thailand (a copy is available on request). Buses provide severe competition to the Metro systems and as these are subsidised, skew competition somewhat. Therefore metro fares are inelastic. Proposals for joint ticketing through a ?clearing house? for Sky Train and MRT have been announced. Monorail has been reviewed as a solution to some congested areas, with Scomi from Malaysia active. Attractions include the modest street footprint, ability to adapt to tight radii, and reasonably quick construction times. 3.1 MRTA (Blue Line) being the Mass Rapid Transit Authority of Thailand, which is entirely an underground system. MRTA established in 1992 is a State owned enterprise reporting to the Minister for Transport commenced Operations in 2004. An extension is currently planned to the existing line, which was the first PPP scheme in Thailand. Bangkok Metro Company Limited operates the system, having secured a 25 year concession. (BMCL is owned by Ch Karnchang who is a major contractor in Thailand.) MRTA built the system supported by JBIC loan covering 96% of the costs, whilst BMCL supplied the M& E on a PPP basis with a 25-year concession also being responsible for the Operation and Maintenance funded by fare box revenue. Rolling Stock was supplied by Siemens. The initial loan from JBIC of 60 % was increased due to economic downturn at the time of construction, just as the loan terms were also eased (to a 40 year term with 0.75% interest, and a 10 year grace period.). The Government is subsidizing the loan repayments by MRTA, and Design Build was used in an attempt to contain costs. Stations are 200 m long and equipped with platform screen doors. A central control centre provides an effective means of coordinating all aspects of Rail Operations M&E and SCADA. Siemens supplied the system equipment, being a late change from Metro ? Alstom. 9 www.uktradeinvest.gov.uk 3.1.1 Physical Data & Characteristics Route Km 20.8 Stations 18 Passengers / 200,000 day Speed 35 km/hr Headway 5 minutes Rush Hour 3 minutes Structure Underground System Gauge 1435mm rd Power 3 Rail 750 Kv Signalling ATP & ATO Fare 15 ? 39 Baht An automatic Fare collection system is in operation to handle the high volume of traffic. Plans are underway to provide a multi modal smart ticketing system valid on the buses and metro system. Earthquake Resistance MRTA report that he occurrence of 2 major earthquakes, of 6.7 and 6.1 on the Richter scale in 2003 and 2007 respectively did not cause any structural damage to the MRT. The Authority report that the ? earthquakes could not cause any damage to the tunnels and underground stations of the MRT Chaloem Line because the underground structures are constrained by the surrounding ground and thus move in the same direction with the earthquake vibration at the time of occurrence. The design also allows for loading due to earthquake effects imposed on the underground structures in terms of a static force equivalent to 6% of earth gravity.? Depots 395 acres of land are dedicated for depot. Currently 118 are in use with the remainder reserved for future operations and Commercial Development. The areas located at the centre of the Chaloem Ratchamonghon line, include workshop and maintenance facilities and areas for stabling, cleaning and washing test track and control centre. MRTA use FIDIC terms of contract. (International Federation of Consulting Engineers). Performance specifications are issued and value for money is welcomed not simply lowest price. Park & Ride 7 stations have park and ride facilities and these are proving to be very popular. 3.2 BTS (SKY TRAIN / Green Line) BTS is a private company, owned by the Tanayong Group a property development company, not (yet) listed on the stock market. There are two lines in operation, and both lines have extensions already planned. The system was a turnkey project awarded to Siemens, though BTS changed signalling system to Bombardier. The lines are making operational profits, but not at a rate that would cover the capital costs. Fares are currently inelastic due to pressure from busses. BTS has been operating for 9 years of a 30 year lease. Though currently tied (to Siemens) for spare parts and maintenance, there may be opportunities for outsourcing and a decision will be taken by 2010, the full term contract ends by 2015. The traction system is deemed very reliable, though spares are expensive. 10 www.uktradeinvest.gov.uk 3.2.1 BTS Physical Data Route Km 24 km Stations 24 Passengers / day 430,000 Speed 35 km/hr Headway 5 mins Rush Hour 3 to 4 minutes Structure Elevated System Gauge 1435mm rd Power 3 Rail 750 Kv Signalling Siemens Fare 15 ? 40 Baht 3.3 Planned Extensions to Bangkok Metros Plans to extend the system were approved in Feb 2008, including 50km from Bang Yai -Bang Sue, and a blue line extension of 27 km, from Bang Sue to Tha Pra & Hua Lamphong to Bank Khae. Economic and Financial Benefits (feasibility study) Project Economic IRR Economic Benefit Financial IRR Purple Line 13.69% 843,000 M Baht Negative Blue Line 16.38% 1,222,000 M Baht 0.64% The economic benefits are recognised in terms of travel time & cost saved, whereas the financial evaluation notes that the system will run at a loss. The Authorities recognise the benefits of the system, which will have a negative return as being common for infrastructure projects where costs are high, financial returns low but social benefits are key. Timing Item Purple Line Blue Line Land Acq Jan 07 - May 07 Jun 08 ? Jan 10 Contractor Selection Mar 08 - Jan 09 Sep 08 ? Feb 10 Concessionaire Selection Apr 08 - Feb 09 Jun 08 ? Jun 09 Construction Feb 09 - Apr 13 Feb 10 ? Jun 15 Service May 13 July 15 11 www.uktradeinvest.gov.uk 3.3.1 Bangkok Metropolitan Planned Lines & Extensions Line 1 2 3 4 5 6 7 8 9 10 Colour Dark Light Blue Purple Orange Green Green 2 Yellow Pink Brown Red Red Line 1 Ext From Rangsit Taling 1Ban Bang Bang 1 Stadium Saphan Lat Phrao Khae Rai Bang kapi Chai g Sue Yai Kapi 2 Taksit 2Tha On Nut Phra Mo Chit To Maha Airport 1 Rat Bang Phran Nok BangWa Samrong Pak Kret MinBuri Chai Phra Burana Bamru Samut Hua Prakan SaphanMai 2 Bang Khae Total Lth 65km 50 27 43 24 24 19 32 33 9.5 Elev. Km 55km 50 22 29 3 17 19 22 17 9.5 Grade 10km 0 5 0 0 0 0 0 0 0 km Km U/g 5 14 21 7 0 10 O 0 Stations 29 13 17 19 2 14 19 12 17 5 Elevated Stations 2 2 0 0 0 0 0 0 0 0 at Grade Stations 0 0 4 13 15 5 0 8 0 0 U/grnd System# H H H H H H H L Tba H Pass/day 718 457 500 504 368 300 280 Tba Tba Tba ?000 Status* RFT Opens RFT RFT RFT RFT RFT Plan Plan Plan 2009 # H = Heavy Rail & L = Light Rail. RFT = Documents Ready for Tender (Design & Build), subject to funding. 3.3.2 Purple Line 23 route km will be added on an elevated structure covering 16 new stations, starting at Bang Yak in the North West of Bangkok, crossing the River, following Pracharat Road eventually merging with the Blue Line at Pao Pun Intersection. 3.3.3 The Blue Line Extension Will be extended in two phases: 1) The Circle Line, Bang Sue - Tha Phra covering 13 km and 10 new stations. 2) Hua Lamphong to Bang Khae is a 14 km stretch of which 5 km are underground. The underground line will have 4 stations whilst 7 stations are planned on the elevated portion. rd The track will again be 1435 mm gauge, with a 3 Rail bottom pick up using 750 volts DC, and a 3 or 6 car set. The system is designed to serve 50,000 passengers per hour per direction. Projected Costs M Baht (Jan 2008) Project Land Acq. Consultant Civil Works M&E Total Purple Line 9209 2233 31217 13243 55892 BlueLine 1 559 1071 11763 9653 23046 Blue Line 2 5314 2235 33926 10770 52245 Total 15082 5529 76906 33666 131183 MRTA will provide the Civils work whilst PPP will be used to supply M& E along the principles established by BMCL on the original Blue Line. JBIC will supply the majority of finance for both lines. 12 www.uktradeinvest.gov.uk 3.3.4 Orange Line This line will be built to the MRTA specification. 4 UK Companies in Thailand A number of UK Companies are active in Thailand. We had the opportunity to meet a number of UK companies active in Thailand and to learn of others establishing operations there. Amongst the newcomers are Metal Box and Westinghouse Signalling, whilst existing companies include Tesco and Triumph Motor Bikes. Amongst the companies active already we had meetings with: ¾ Lloyd?s Register Rail ¾ MVA ¾ Ove Arup ¾ Halcrow ¾ InfraAsia ¾ Mott MacDonald ¾ Scott Wilson My summary of their views is: It is important to take a long view in the market and the Region. Skills are in demand and in common with the Rail Sector elsewhere, in short supply. Metro is currently the active sector for Rail, but SRT too are making progress particularly in a desire to eliminate the pinch points that are causing congestion. Perceptions are that additional competition would be beneficial, and that stability of investment would be helpful (requiring longer term planning on the Government side); however as funding is often a deciding factor in sourcing, then that remains an issue. The market is aware that Chinese companies are keen to penetrate the Thai market; otherwise, Siemens have the market on MRT whilst Bombardier has their kit established on Skytrain. 5 Local Manufacturing Capability There is some local capability in for example sleepers and other items for Rail, consultancies we have mentioned certainly on the Civils side, and some partnering with International companies. UKTI local briefing described Thailand as having the potential to be a useful source of out - sourcing, though local conditions and culture need to be taken into account. 6 External Rail Links Investment is need to take these potential links forward, just as political will and cooperation would also be required to foster cross border traffic. 6.1 Cambodia A Rail Link to Cambodia is proposed, adding to the line connecting Laos has just been completed, but literally only crosses the border by 3 km, with a through route from China to Singapore a potential development. 6.2 Malaysia The Malaysian Government was said to have donated used rail for track construction and studies for cross border traffic, though no progress is evident. 7 Opportunities for UK Companies Consultancy is certainly an area of Opportunity. Supply opportunities may well flow from the tenders issued for each of the projects announced by SRT or the Metros. Tenders are generally reported to the British Embassy, and issued on SRT websites. UK Consultants are active, and some UK companies have had success in the past despite the influence of JBIC funding. Local Contractors such as Italian-Thai whom we met, welcome introductions from UK Companies interested to supply and who will meet market conditions. 13 www.uktradeinvest.gov.uk New developments include property development around the Railway and proposals for Logistics hubs and operations. Efficiency measure, regulation and training may provide fields of opportunity, whilst signalling is clearly in need of upgrading. 14 www.uktradeinvest.gov.uk Appendix I State Rail of Thailand 15 www.uktradeinvest.gov.uk Appendix II SRT Track Doubling Plan 16 www.uktradeinvest.gov.uk Appendix III Bangkok Metropolitan Masterplan ?. ?????????? MRT Network DEVELOPMENT PLAN ??. ?????? ???????????7 Lum LukKa Don Mung ????? MeanBuRii Salaya 3 ?????????? Bang Sue 2 ? ? ? ? ? ? ?? ? ??????????? Tal ingChan ??????? Lad KaBang ??????? ??????? ?????? Bang Kae ?????? 1 ?????? ????? 4 ????????????(??????) ????? Elevated Under ground Samud PraKarn Extension phase 1 Extension phase 2 Extension phase 3 ????? Maha Chai 17 www.uktradeinvest.gov.uk Vietnam Summary - Rail Scoping Mission 8 Introduction Vietnam has over 3000 route km of existing rail network, though it is much in need of rehabilitation. There are also ambitious plans to build 6 Metro operations in the two major cities, Hanoi and Ho Chi Minh City (HCMC) though these planes are somewhat hindered by a lack of finance. 8.1 Vietnam Railways VNR VNR also has a wholly integrated Rail system, including operations and design, manufacturing and construction, and extending to tourism and other diversified businesses. Many of these are now Joint Stock Companies where employees own part of the company and the Government the balance, perhaps in preparation for divestment or float off. Issues include the condition of the relatively large numbers of bridges and tunnels, currently imposing speed restrictions on the system, despite which Vietnam Railway has ambitions to upgrade the system to high speed. The State Rail system will also form an arm of the commuter rail services in the suburban areas of the 2 major cities and these will enjoy the earliest rehabilitation, prior to improving the route beyond the city limits. Deregulation ensures train operations companies have access to track and several companies already operate passenger services. VNR are aware of the potential to link China to Singapore. VNR also has plans to provide a high speed link from Hanoi to HCMC in the longer term, but will begin by improving the operations of those lines within in both major cities to assist commuters. 8.2 Metro Developments Both major cities have a masterplan for public transport. Up to 6 metro lines are planned together with Bus Rapid Transit and Monorail to provide a multi modal solution by around 2020. The Authorities recognise the need for public transport, and metro in particular to ease congestion and improve competitiveness, providing a major driver for the sector. Some finance is being sourced through donor funding, with JBIC and French Development Agency, (AFD) actively funding specific metro projects. Tied aid inevitably leads to tied specifications and limited design competition, often with escalating prices. A further concern this brings is the potential incompatibility of systems and an inability to integrate future metro lines. If these concerns appear to be recognised by the Engineering teams who will develop the projects, they are less well recognised by the City Officials who have the pressing need to find the finance at a time when an International Credit crunch is being experienced. Rising energy costs are also impacting the Country?s competitiveness despite a very promising economy just a few months precedent to our visit. 8.3 Economic Overview Vietnam had until the recent energy crisis been one of the rising stars in Asia, but is now feeling the pinch of the market economy, with inflation jumping to 25% from 11% last year. Rising energy costs have subdued confidence and the economy has slowed. Vietnam has a population of 84 M of which 60% is under 35, so remains committed to economic growth and to enhancing its manufacturing base. Politically mature and stable is considered a high growth market by UKTI. Vietnam is a market where personal relationships are important and companies are encouraged to develop their position by regular visits and building client confidence through familiarity. Further information and updated market and economic data is available on the UKTI website, www.uktradeinvest.gov.uk. 18 www.uktradeinvest.gov.uk Vietnam Rail Scoping Mission - Detailed Report 9 Vietnam Railways VNR 9.1 Introduction Vietnam built its first railway in 1881. Now, VNR has been incorporated since 2004 and is organised into a number of divisions, including several Joint Stock Companies (JSC) that remain wholly owned. (The structure is shown in Appendix I). Though JSCs are often the fore runners of a privatisation, there is no known, current plan to divest any of these. There is provision for private capital in Rail, and we are advised a number of different companies run passenger services on the network. Priority plans have been developed and rehabilitation is a major goal of the company. The railway?s mission as written extends to: ? Provision of Railway & Multi Modal Transport Services ? Joint Ventures with Local and International Organisations ? Making best use of it?s capital, natural resources and land ? Investing in Stocks and Shares and Other enterprises ? Research & Development ? Training ? Business Development Provision of commuter services is a priority now, with the Trans National lines planned to be upgraded in the Suburban areas of Hanoi and HCMC as a priority, and then the Trans Viet lines will be enhanced to a high speed operation. The planned Metro lines in both major cities fall under the Local Authorities, and will be administered separately. One major positive, is that the value of Rail as a means of reducing congestion, and its socio ? economic benefits is fully recognised. Ensuring finance is made available to realise their rail ambitions is a challenge the Viet authorities are facing now. There is facility for Private Capital in Vietnam, and a specific mention of an interest in a workshop for training was made, as VNR seeks to enhance its capacity. (VNR operates two training colleges). A coal project straddling Vietnam and Cambodia is under study by BHP Billiton that may include a coal line. 9.1.1 Brief History Rail operations began in 1881 with the French built Railway on 71 km of track linking Sai Gon and My Tho. The First Trans Viet line was operated in 1936, and the system now extends to 3106 route km. The Rail lines were connected to China in 1898, and re- unified the North and South in 1967. In 1999, the journey time from north to south was shortened from 58 hours to 32 hours, whilst in 2000 VNR introduced locally manufactured railcars. VNR was incorporated by statute in 2003, with the law being ratified in 2005, ensuring the legal basis for the sustainable rail development of VNR. Traffic levels show an upward trend. 9.2 VNR Key Officials & Organisations Key Officials: Vietnam Railways Corporation (VNR) Nguyen Huu Bang Chairman & CEO Han Nhu Quynhg Deputy Director International Relations Dept VNR Transport Investment & Construction Consultant JSC Nguyen Anh Tuan Deputy General Director Ministry of Transport Vietnam Railway Administration Nguyen Bui Nam Director of Planning & Investment 19 www.uktradeinvest.gov.uk Structure Ministry of Transport Vietnam Vietnam Road Vietnam Railway Vietnam Civil Aviation Maritime Administration Administration Inland Authority of Bureau Waterway Vietnam The detailed Railway Structure is enclosed in Appendix IV, and consists of a Board of Management supervising a vertically integrated Railway a developed structure including Joint Stock Companies and Rail Operations. The Chairman and CEO of Vietnam Railways is Nguyen Huu Bang, and is well known for his work with VNR, often referred to as Dr Bang. There are 100 employees in the Administration Department, and 45,000 in the Operations Vietnam Railway Corporation. Ministry of Transport Vietnam Vietnam Railway Railway Administration Corporation 100 people 45,000 people An ambitious rail development programme was launched in 2002, in recognition of the socio- economic importance of the Railway, covering the period through to 2020, which included plans to realise a high speed rail project. A new law came into effect in 2005 opening Railway up to external parties & entrepreneurs, creating a level playing field for new entrants, and encouraging PPP as a critical factor for success. Following the re-organization in 2003, VNR has two Passenger Operations and one freight operation company. Other companies can run train services. Access charges are payable to the Government, and my understanding is a fee of 8% of revenue is charged. VNR has terminals at the major ports, and connects to the main economic and industrial areas, as well as offering routes to prominent tourist resorts. VNR also has two connections to China, and through these, onward to Russia, Kazakhstan and beyond. (These routes can even reach into Europe now). VNR holds memberships with UIC, ASEAN and OSZD rail communities, which covers the former CIS rail authorities across Russia and into Europe. The aim of membership is to provide easy cross border transport. 9.3 Priority Projects VNR desires to improve its services across the country, including a high speed rail link from North to South running at 300 kph. However the first steps will be to enhance the facilities inside the 2 major cities to improve the commuter rail services and to facilitate decongestion. 20 www.uktradeinvest.gov.uk Improving and extending Suburban services using the Trans National Line (within suburban areas) will be a priority and then improvements will be made to the lines north and south respectively. Consideration is given to external links, but for now these are future considerations. Though in its infancy, VNR has been exploring the possibility of a high speed link Form Hanoi to HCMC. The Consultancy JSC noted there was German assistance in the initial considerations. Siemens too are involved in developing the Operations Centre for Freight. Level Crossings are a key safety concern and hence demand attention. Detailed projects: ? Carry out the survey and design of the following projects: telecommunication and signalling of 3 northern lines, Hanoi and Vinh ? Nha Trang line; ? Increase the safety of 44 railway bridges and crossroads ? Strengthen the investment process of approved projects such as increasing the capacity of Yen Vien ? Lao Cai line; ? Changing K1.K2 sleepers and steel sleepers; ? Lengthening station railway lines and adding the third line at stations in Vinh ? Nha Trang section which have only 2 lines ? Actively carry out the investment preparation stages of following strategy projects: o Hanoi-HCM city high speed railway line; o high-speed railway line in the 2 corridor ? 1 economic land development cooperation; o Hanoi elevated railways Priorities for 2008 10% increase in revenue for all divisions of VNR, being at least 15% ahead of 2006 results ? Average Wages to be paid expected to be 2.5% M Dong / month ? Complete the feasibility and investment reports on the 2 strategic corridors, o North South High Speed Line o High Speed Line in the designated priority economic land development programme. 9.4 Tenders Website Tenders are published on the Ministry of Planning & Investments website www.mpi.gov.vn, though the British Embassy is often notified of these, for publication via UKTI website. 9.5 National Standards Agency VNR did confirm their interest in new products and technology, and would be willing to conduct trials for approvals. There is also a National Standards Agency that establishes specifications for materials and systems and reports to the Ministry of Science. The Agency is known as the Directorate for Standards and Quality /STAMEQ. 9.6 Railway Law A copy of the Railway Law of 2005, published in English Language is available. The Law runs to 27 Pages, and governs Rail Operations in Vietnam. Land ownership is a key issue in Vietnam, yet Railway enjoys preferential treatment in terms of land made available for infrastructure projects and with import duties levied at preferential rates. 21 www.uktradeinvest.gov.uk 9.7 VNR Physical Data (Table) Route km km Total Track Length 3106 Route Km 2600 Metre Gauge km 2169 Dual gauge Metre & 1435 253 mm Standard Gauge 178 1435mm Loops & Sidings 506 Main Routes Route Km Gauge Hanoi ? Ho Chi Minh City 1726 1000 Hanoi ? Hai Phongh 102 1000 Hanoi ? Lao Cai 296 1000 Hanoi ? Dong Dang 163 Dual Hanoi ? Quan Trieu 75 Dual Kep ? Uong Bi ? Ha Long 106 1435 Luu Xa - Kep 57 1435 Infrastructure Bridges # 1809 Being 56,966 m length Tunnels 39 11,513 m Temporary Bridges 180 18,084 m length Stations 278 Track Ballasted Rail P30 / P38 P43 and P50 Fastening Part eclip Sleepers Steel, wood and twin bloc concrete all in use Average Speed Hanoi ? HCMC 70 kph Other lines 40 kph # 63% of bridges are on the North South Line, Hanoi to HCMC. 9.8 Rolling Stock VNR has 317 diesel locomotives, with power capacity from 1300 t0 1900 HP, sourced from a variety of International suppliers, such as Belgium, China, Czech Russia, Romania, USA and others. These have been overhauled and repaired several times. More than 900 passenger cars and 4000 freight wagons are in use, supplied mainly from India and China. There is capability for local production of new cars and wagons. 9.9 Freight & Passenger Demand Data (given in 000?s) Vol 1998 99 2000 01 02 03 04 05 06 07 Tonnes 4883 5033 6139 6336 6944 8282 8771 8688 9153 9049 Pass. 9697 9292 9806 10627 10782 11586 12941 12771 11573 11571 22 www.uktradeinvest.gov.uk VNR Demand 14000 12000 10000 8000 Freight 000 tonnes Passenger 000 Nos 6000 4000 2000 0 8 9 0 1 2 3 4 5 6 7 9 9 0 0 0 0 0 0 0 0 9 9 0 0 0 0 0 0 0 0 1 1 2 2 2 2 2 2 2 2 9.10 Revenue The total revenue of Vietnam Railways Corporate reached 6.151 billion dongs, and the various sectors all appear to be progressing admirably. 2007 Bn Dong % Increase from 2006 Total Revenue 6151 11.4% Transport Sector 3131 14.9% Construction Revenue 743.7 9.3 Infrastructure Turnover 842.2 13.7 Industrial Sector Revenue 452.9 45.3 Service Material Turnover 1014 93.3 9.11 Passenger Transport /TOCs VNR has two passenger transport companies, based in Hanoi and HCMC offering national and international services. These services include Ticketing & e-ticketing, catering, various classes of travel including Air conditioned coaches, scheduling and communications to passengers. Maintenance operations including jv?s, car rehabilitation, Rail TV service on the North ? South line. Passenger growth is recorded at 5 to 6 % annually. 9.12 Private TOC?s Train Operating companies have access to track to run services. We understand a number of companies already do so, some leasing rolling stock from VNR others using renovated cars. A Belgian company has signed a contract with VNR for traction and wagon lease, to allow it to run services. 9.13 Freight Operations VNR has adopted a modern market driven approach to enhancing its freight business. Turnover has been rising by 10% pa, reaching out across the 100 freight locations served. Operations and investments include: ¾ Depots including BOT type (one example is Lao Cai Mineral Company) ¾ Loading and discharge facilities including craneage and handling equipment improving productivity ¾ Warehousing and distribution facilities ¾ Use off block freight trains (14 pairs per week on the north / South route generating revenue of VND 10 Bn pa. ¾ Container trains 23 www.uktradeinvest.gov.uk ¾ Provision of return load services earning revenue in both directions ¾ International routes to China , Russia , Mongolia , Kazakhstan and other former CIS states is possible 9.14 Tourism & Hotels Operations VNR has the facility to combine services such as Passenger trains with Hotel operations and offer tourists a packaged service. VNR lists 14 hotels around the country, and claims to own a large number of guest houses particularly in the well known tourist venues. In addition, VNR offers a complete multi modal transport facility to enhance the tourism experience. This company is structured to allow external equity participation in order to grow the business. 9.15 Signalling & Telecomms Interlocking systems are in use in most stations, and a modernisation programme is underway seeking to improve the capacity and efficiency of the system. One example quoted is the gradual replacement of semaphore signals with colour light system. Semi automatic and automatic block systems are replacing token block systems and automatic warning systems have been installed at 230 level crossings. The system is described as ?Electric-used block system with colour-light block equipment used in most of the routes in the North. Semi- automatic block system is used in Ha Noi - Ho Chi Minh city railway line. Regarding information system, 1 channel or 3 channel-transmission equipment made in Hungary in the mid years of 1972 and 1979 are used in Vietnam Railways. High-frequency radio system is used in emergency storage system of some divisions. The open-wire system is much used in long- distance information transmission. The 2-core copper cable is used in local information system. VNR are keen to trial and introduce modern technology such as automatic train control system, automatic train protection system, train location detection system, etc with a view to better ensuring train operation safety, increasing speed and the overall capacity of the railway network. Telecommunications Existing technology was Chinese is being replaced with more modern equipment from China and European sources. Fibre optic has been fully deployed in the sections covering Hanoi ?vinh, Nha Trang ? Sai Gon, and will be installed soon on Vinh ? Sai Gon. Since 1998, in Ha Noi - Ho Chi Minh city railway line, Vietnam Railways has applied television using Microband ATM technology and multi-channel statistic transmission with the speed of 64 kb per second hired from Vietnam Post and Telecommunications Corporation. VNR plan to offer telecoms services to the public telephone market. 9.16 (In House) Construction Capabilities VNR has a heritage of 125 years of Railways construction. There are 12 construction and construction material manufacturing joint-stock companies which specialize in: ? Building of civil structures such as bridges, tracks, tunnels, stations, embankment and ports. ? Building of industrial, irrigational and agricultural works. ? Levelling of land for construction works. ? Producing of construction materials and steel structure. ? Supplying and manufacturing of pre-stressed concrete sleepers The experienced and qualified staff have built many important structures for the road and railway sector in recent years, such as: ? New Hai Van station and Cau Nho station. ? The bypass for Dong Hoi city, Quang Binh province. ? The railway for Uong Bi Thermoelectric Power Plant. ? Bao Lam - Lam Dong road. ? Army optics cable work. ? The Operations Office of Thai Binh port authority. ? Ho Chi Minh road in co-operation with other construction companies of the road sector. 24 www.uktradeinvest.gov.uk 9.17 (In house) Track Maintenance At the moment, Vietnam Railways has 15 railway infrastructure management companies responsible for track maintenance for the total length of 2,600 km. The main functions of the 15 railway infrastructure management companies are: ? maintaining of railway infrastructure such as bridges, tracks, tunnels; ? replacing of turnouts, rails, sleepers; ? supplementing additional ballast to ensure the smooth status of track, track direction and track geometry. Due to investment in modern equipment for track maintenance, the quality of the railway lines and the working condition of railway workers is much improved. Equipment such as Plasser & Theurer tamping machines, Mattisa recording cars and rail-defect detectors are in use. VNR is committed to continuous improvement and wishes to introduce the best practice possible in terms of equipment and materials to enhance the network. 9.18 Rolling Stock Manufacture VNR owns 3 carriage manufacturers, though mention was made if cooperation with Chinese companies, this requires further clarification: ? Dian Carriage Company ? Gia Lam Carriage Company ? Hiaphong Carriage Company 9.18.1 Dian Carriage Company Dian Railway Carriage Company is one of the biggest industrial companies of Vietnam Railway Corporation. Dian Railway Carriage Company is an independent enterprise under the management of Vietnam Railway Corporation. The factory is located in Binh Duong province, 23 km North - East of Ho Chi Minh city, an important economic zone in the Southern provinces of Vietnam, having a 24-hectare production area with 100-hectare surrounding area. Since 1975, Dian Railway Carriage Company has completed repair of over 7,000 cars and newly built 900 coaches and wagons of different kinds including the first class coaches such as soft-berth cars, double-deck cars, etc. The company has ISO 9001:2000 quality management system and creation in new-technology application. The company produces a range of wagons including air conditioned coaches, 9.18.2 Gia Lam Train Company Gia Lam Train Company is one of industrial unit of Vietnam Railways Corporation. Its main activities are: Overhauling and manufacturing rolling stock of different types: ? Producing spare parts of cars, verifying instruments and a laboratory for testing materials ? Manufacturing other industrial products such as boilers and steel structures. This company produces a wide range of cars and bogies. 9.18.3 Haiphong Carriage Company Haiphong Carriage Company is an independent enterprise under the management of Vietnam Railway Corporation, is situated in the centre of Haiphong port city, a gateway to the Northern area. Haiphong is one part of the potential economic triangle: Hanoi - Haiphong - Quangninh. The company alludes to a large scale manufacturing operation. In the last recent 5 years; its revenue has been increasing, from activity in: ? manufacturing, ? renovation of all types of coaches and wagons ? provision of spare parts A variety of coaches and wagons are produced. 25 www.uktradeinvest.gov.uk 9.19 Training VNR has two training facilities, being interdisciplinary and vocational schools as well as the centres of research application and railway transport technology (including technology acquired via transfer). The colleges play a vital role in the development and integration of VNR. Both schools are located in large, easy to reach areas in Hanoi and Ho Chi Minh city and equipped with various types of equipment and facilities such as dormitories, refectories, and recreational facilities. Some staff have international experience and training, and in 2006, Railway Vocational College No.1, trained some bout 2600 students in various disciplines. A wide choice is available in scope and duration of course, and both rail and non-rail sectors. The schools' managements also cooperate with organizations and companies in the field of research and development. 9.20 Consultancy & Engineering The Consultancy is a JSC. The company comprise over 300 Engineers covering sectors such as Rolling Stock Systems Civils Roads, Economics and Legal, including: ? Permanent way design, ? Project cost estimation, ? Transport construction works design, ? Evaluation and supervision (track, bridge, culvert, station, signal & telecommunication systems, architectural and civil works) International Standard ISO 9001:2000 is applied, and work is continuing to support transport services on both road and rail throughout Vietnam, including Investment and Construction Consultant Services for Railway and Roadway Transport Projects and Railway Transport Vehicles and Equipment. In addition to local knowledge and experience gained in hundreds of projects, the consultancy strives to keep staff and technology up-to-date. Priorities are high-speed railway, elevated railway, LRT, urban and suburban railway. 10 Urban Railway 10.1 Introduction & Background In common with most cities, the desire to improve mobility, decrease congestion and take advantage of the socio-economic benefits a modern integrated transport will bring is driving the two key cities to implement plans for a network of 6 lines. Vietnam is also suffering from a poor safety record compared to other Asian cities, one key reason given is due to a lack discipline and etiquette, as well as that the use of crash helmets on motorbikes is not compulsory. A full appraisal of urban transport prepared by the Metropolitan Transport Board is available on request. Both cities are also planning for increased populations by 2020, Hanoi for over 5 M and HCMC for around 10 M. To assist the preparation of this report, we met: ? Department of Transport for Public Works, Hanoi & HCMC ? Department of Communications & Public Works ? Hanoi People?s Committee ? Hanoi Metropolitan Rail Transport Project Board ? The People?s Committee for of HCMC ? Management Authority for Urban Railways ? HCMC ? Department for Planning & Investment ? Transport Engineering Design North & South (TEDI ? Consultant JSC) ? Transport Investment & Construction Consultant JSC The People?s Committees include a political level directing the projects (and finance though this require Prime Minister level approval), and a Technical / Operations level, who must approve detailed designs and act as the Approving Authority. 26 www.uktradeinvest.gov.uk Hanoi Urban Transport Proposals Plans are underway to combat congestion and to facilitate growth. Congestion in Hanoi is severe, and with air pollution and noise, is on the increase. Objectives include: ? Provision of a commuter rail service in Hanoi ? Alleviating congestion ? Reducing energy consumption from a modal shift from road to rail ? Increasing the capacity of national and international trains by improved train path of the existing line ? Reduced travelling time Public transport is very popular in Vietnam, even despite the huge number of motorcycles. New buses and policy introduced in 2002 were instantly successful. 10.2 Hanoi Master Plan Detail through 2020 Line 25 Ngoc Hoi ? Ha Noi Stn ? Yen Double Track, 1 km Vien Dual Gauge, (National & Urban Rail) Elevated & at Grade Japanese Funds USD 1 Bn approved March 08 Line 14 Hanoi- Hadong 14 km Double Track 2A km Elevated 13 km JBIC funding Gauge 1435 mm USD 330 M Line 33.7 Noi Bang ? Thang Long South 2 km Line 21 Nhon ? Hanoi Stn Systra have undertaken Feasibility 3 km Mixed funding Study and are at planning stage. Part French (AFD) and Systra has been appointed as General Consultant. Part Asian Development Bank (ADB) Part Chinese Govt funding Line 53.1 Dong Anh ? Sai Dong ? Me Linh 4 km Line Thang Long South ? Hoa Lac 5 10.2.1 Challenges facing Hanoi ? Finance (to be drawn from a number of sources internal and external) and tied aid considerations potentially affecting operational and engineering efficiencies ? Sharing of existing VNR track between urban and long distance passenger operations in the suburban areas ? Gauge issues with the mix employed on VNR and Chinese rail lines ? Land acquisition costs and efforts to minimise land take ? Ensuring no interruption to existing freight operations using a section of the line being upgraded. ? Construction of 11 new stations, including the Ngoc Hoi complex ? Construction of a new bridge 50 m upstream from existing bridge 10.2.2 Projects Underway and Status of Line 1 From Ngoc Hoi ? Yen Vien. Length = 27 km, 16 stations. Operation 27 www.uktradeinvest.gov.uk Phase 1: 2014 from Giap Bat to Gia Lam, 15 km, 10 stations. Phase 2: 2019 from Giap Bat ? Ngoc Hoi and Gia Lam ? Yen Vien, 12km, 6 stations. Gross investment Phase 1: approx 1 bn usd Phase 2: approx 0,5 bn usd Funding source: ODA loan from Japan government through JBIC, and design will be carried-out in 2008 Clearly complex civil works will be required to complete the line without disruption to existing traffic, rolling stock, electrification and signalling will also be required. 160 urban trains and 90 intercity trains can be operated per day so an internal rate of return of 11% is forecast, meaning the service is deemed viable. A new management unit is proposed to take control, and experienced external (international) consultants should be employed with skills in: ? Project planning ? Design ? Construction supervision ? Management and Operations The project is split into 2 elements: Project 1 Giap Bat to Gia Lam 10 km Project 2 Ngoc Hoi to Giap Bat and Gia Lam to Yen Vien, giving a total of 18.8 km. Estimated Costs and time : Project 1 USD 1.23 Bn 2008 to 2017 Project 2 USD 540 Bn 2017 to 2019 ODA loan is anticipated at a level of USD1.45 Bn, with local funds of USD300 in local currency. JBIC provided a STEP loan of ¥4.683 in 2007 to undertake the technical design for Project 1 and will be the source of funds for the whole project. 10.3 HCMC Urban Transport - Development Plan Ho Chi Minh City Under Vietnam's Transport Development Plan from 2008 to 2020, which has been cleared by the Prime Minister, almost Viet Dong (D) 300 trillion (D 300 Tn) (US$ 17.81bn EUR 11.36bn) will be invested by Hanoi to enhance its transport infrastructure and ease traffic congestions. A minimum of 15% of the city's land area in total, or 13,800 hectares (ha), will be zoned off for the infrastructure, with 1,100 ha going to railways and 11,500 ha for roads. A sum of D 117tn of the D 300tn will be used to construct more expressways, widen its national highways into four to six lanes, and finish building its second belt road. Meanwhile, D 138tn will go towards constructing five railway tracks by 2010. One track will connect the city centre and Noi Bai International Airport. Another D 13.7tn will be allotted for waterways, and D 13.8tn for airports. There is recognition of the technical differences and issues of integration that a mixture of National specification will bring. Examples mentioned include the unique Japanese signalling and differences in operating voltages of Japanese and European systems. Donor funding makes these issues more difficult for the client, though I detected a desire for European / generic systems at Operational level, the structure of the finance may dictate national preferences. Tramway for example, remains an option in HCMC but there is strong desire for this to be a steel wheel rather than a rubber tyre option. Japanese Consultants are assisting HCMC with Safety & Regulation. Japanese Finance Terms are believed to be 0.4% over 40 years, with a grace period, and sourcing restriction is that minimum 30 % of value must be Japanese origin. 28 www.uktradeinvest.gov.uk 10.3.1 Masterplan to 2020 A total of nine lines appear on the HCMC master plan, of which 3 maybe Monorail (MR) or Bus Rapid Transit (BRT): tba indicates that further study has yet to be made. Line Type Lth Description Est Status / Potential Funding km Cost $M 1 Metro 19.7 Double Track 700 VNR / MOT to develop Std Gauge Underground & JBIC funding. Elevated 2 Metro 19 Tba 1 No Government Decision yet on Bn funding German & Japanese Proposals German funds have been used for Feasibility Study. City Authorities have proposed JBIC funding be used. 3 Metro 23 tba 1.3 No Government Decision yet on Bn funding German & Japanese Proposals German funds have been used for Feasibility Study. City Authorities have proposed JBIC funding be used. 4 Metro 24 Tba 1.3 Chinese Feasibility Study Financed But no decision on funding. 5 Metro 17 tba 800 Spanish Feasibility Study Financed 6 Metro 6 tba 300 Spanish Feasibility Study Financed 7 MR 12.5 tba Interest from Scomi Monorail of /BRT Malaysia 8 MR 14 tba tba /BRT 9 MR 8.5 tba tba /BRT 10.4 NJPT Japanese Consortium Line 2 A Japanese consortium together with two local JSCs has been formed for the Line 2 project in HCMC, NJPT Association comprising: ? Nippon Koie Co Ltd ? Japan Railway Technical Service (JARTS) ? PB Japan Ltd ? Japan Transportation Consultants Inc ? Tonichi Engineering Consultants Inc ? JR East Consultants Co. Ltd ? Transport Engineering Design Incorporated South (Tedi South) ? Transport Investment and Construction Consultants (TRICC) 11 TEDI ? Engineering Consultancy JSC Transport Engineering Design Incorporated (TEDI) was incorporated from its predecessor, the Transport Engineering Design Institute, (est. December 1962), by a Government Decree in November 1995 by the Ministry of Transport with the approval of the Prime Minister. TEDI 29 www.uktradeinvest.gov.uk cover the whole range of consultancy, survey and design services for projects in the transport and other sectors, and has a team of qualified and experienced specialists, engineers trained both in Vietnam and overseas, and a work-force of skilled technicians capable of conducting field surveys and investigations. This includes feasibility and evaluation as well as the full range of engineering disciplines associated with Rail Design and Construction. TEDI is a JSC with 70% of the capital owned by employees and the balance with the government. 12 Saigon Railway Materials Company JSC This company originally established to import materials for the Railways in the South now has a brief to import for the Rail Sector nationally, as well as for some of the Construction sector (national brief since 1993). The Government retains 51% of the stock, and one clear advantage the company has is the international experience it has gained since 1975. The company imports according to rail demand, and has interests in steel fabrications and the service sector too, and would be happy to develop agency support. Specific areas of experience include: ? Rolling Stock Spares ? USA & Germany ? Air conditioning and Toilet Modules ? USA ? Passenger Coach ? USA ? Signalling ? Siemens Steel for construction and coach structures and rails are imported mainly from China. Amongst their other strengths they list, warehousing and distribution, and promotion of rd alternative or 3 party supplies which comply with a prescribed specification or ?brand?. The JSC has a small factory to produce mechanical equipment, though they note there is no facility