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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 ©

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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 Bob Docherty International Business Specialist UKTI Tel +44 7879 661 598 Email [email protected]

Mr Neil Walker Deputy Head Railways Sector Tel +44 20 7215 4773 Email [email protected] 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.

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mailto:[email protected]

http://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

(Bangkok) 9

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

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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)

JSC 29

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

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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

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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.

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Thailand – Detailed Report 2 Introducing the Thai Railway Sector 2.1 Railways Structure and Governance There are three bodies covering Rail Operations:

State Railways Of Thailand (SRT) being the integrated State Owned Railway BTS (Sky Train / ”Blue Line”) Private Company being the Owner & Operator of 24 km

Metro Line in Bangkok with a 30 year concession 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.

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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 Thai

Baht M

Description

Chachoengsao – Sri Racha-Laem Chanbang Section, Eastern Seaboard. 78 + 110 km

5850 A 78 km stretch of track in the suburbs and a 177km on the Eastern Seaboard that will be completed in 2010 at a budgeted cost of 5850 M Baht. This link will ease congestion and provide capacity for 1 M teus freight enhancing the competitiveness of Rail, by supporting Phase 2 of Leam Chanbang Port Expansion Project.

Chacoengsao – Khlongsibkao / Kaengkoi 106km

7648 Part of the National Logistics Development Strategy which aims to increase the efficiency of rail connection between the North / North 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 – Pakchong –Nakhon Ratchasima 129 km

9030 / 12,900

This double tracking project will allow SRT to run 115 additional trains per day from Bangkok to Nakon Ratchsima as well as offering much more operational efficiency, by improving loco & wagon turnaround.

Nakhon Pathom – Surat Thani 587km

41,090 / 58700 M

Track doubling on this stretch will provide train path for 62 additional trains per day and improve journey times by 87 minutes for passenger trains and 600 minutes for freight trains.

Lop Buri – Sila At 325 km

22,750 / 32,500

This project will increase efficiency and the 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 Commuter Train Project Bangsue to Rangsit Bangsue to Talingchan

59,888 M +

13,133 M

This major project is aimed to increase the efficiency of the Bangkok commuter services, offering a competitive safer service. Also serving as part of the National Logistics Strategy (in the East to South route) and will be used by electrified commuter trains in future.40 trains to the South are planed and 75 trains on the Northern line, easing

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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 28 km

30 Bn A Cabinet Resolution established this rail 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.

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3.1.1 Physical Data & Characteristics

Route Km 20.8 Stations 18 Passengers / day

200,000

Speed 35 km/hr Headway 5 minutes Rush Hour 3 minutes Structure Underground

System Gauge 1435mm Power 3rd 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.

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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 Power 3rd 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

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3.3.1 Bangkok Metropolitan Planned Lines & Extensions Line 1 2 3 4 5 6 7 8 9 10 Colour Dark

Red Light Red

Blue Line Ext

Purple Orange Green 1

Green 2 Yellow Pink Brown

From Rangsit Taling Chai

1Bang Sue 2Tha Phra

Bang Yai

Bang Kapi

1 Stadium 2 On Nut

Saphan Taksit Mo Chit

Lat Phrao Khae Rai Bang kapi

To Maha Chai

Airport 1 Phra Hua 2 Bang Khae

Rat Burana

Bang Bamru

Phran Nok Samut Prakan

BangWa SaphanMai

Samrong Pak Kret MinBuri

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 km

10km 0 5 0 0 0 0 0 0 0

Km U/g 5 14 21 7 0 10 O 0 Stations Elevated

29 13 17 19 2 14 19 12 17 5

Stations at Grade

2 2 0 0 0 0 0 0 0 0

Stations U/grnd

0 0 4 13 15 5 0 8 0 0

System# H H H H H H H L Tba H Pass/day ‘000

718 457 500 504 368 300 280 Tba Tba Tba

Status* RFT Opens 2009

RFT RFT RFT RFT RFT Plan Plan Plan

# 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.

The track will again be 1435 mm gauge, with a 3rd 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.

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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:

Lloyd’s Register Rail MVA Ove Arup Halcrow InfraAsia Mott MacDonald 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.

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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.

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Appendix I State Rail of Thailand

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Appendix II SRT Track Doubling Plan

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Appendix III Bangkok Metropolitan Masterplan

บางกะป

LadKaBang

มธ. รงสต

BangKae

ลาดพราลาดพราววTalingChan

รถไฟรางค

Lum LukKa

Samud PraKarn

แครายแคราย

SalayaSalaya

Maha Chai

บางหวา

อนเสาวรย

MeanBuRiMeanBuRi

วดศรเอยม(บางพล)

บางนา

ออนนช

สำโรง

บางพล

ม. ธรรมศาสตร

ลำลกกาคลอง7

บางป

MRT Network DEVELOPMENT PLAN

ตากสน

Extension phase 1Extension phase 2Extension phase 3

Under groundElevated

Extension phase 1Extension phase 2Extension phase 3

Under groundElevated

แบรง 11

2233

44

DonMung

Bang Sue

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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.

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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


Structure Ministry of Transport

Vietnam Maritime Bureau

Vietnam Road Administration

Vietnam Railway Administration

Vietnam Inland Waterway

Civil Aviation Authority of 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.

Vietnam Railway Administration 100 people

VietnamRailway

Corporation45,000 people

Ministry of

Transport

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.

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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

http://www.mpi.gov.vn/


9.7 VNR Physical Data (Table)

Route km km Total Track Length 3106 Route Km 2600 Metre Gauge km 2169 Dual gauge Metre & 1435 mm

253

Standard Gauge 1435mm

178

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 Other lines

70 kph 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

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VNR Demand

0

2000

4000

6000

8000

10000

12000

14000

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

Freight 000 tonnesPassenger 000 Nos

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:

Depots including BOT type (one example is Lao Cai Mineral Company) Loading and discharge facilities including craneage and handling equipment

improving productivity Warehousing and distribution facilities Use off block freight trains (14 pairs per week on the north / South route

generating revenue of VND 10 Bn pa. Container trains

23


Provision of return load services earning revenue in both directions 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.

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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.

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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


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 1

25 km

Ngoc Hoi – Ha Noi Stn – Yen Vien Japanese Funds approved March 08

Double Track, Dual Gauge, (National & Urban Rail) Elevated & at Grade USD 1 Bn

Line 2A

14 km

Hanoi- Hadong 14 km JBIC funding

Double Track Elevated 13 km Gauge 1435 mm USD 330 M

Line 2

33.7 km

Noi Bang – Thang Long South

Line 3

21 km

Nhon – Hanoi Stn Mixed funding Part French (AFD) and Systra has been appointed as General Consultant. Part Asian Development Bank (ADB) Part Chinese Govt funding

Systra have undertaken Feasibility Study and are at planning stage.

Line 4

53.1 km

Dong Anh – Sai Dong – Me Linh

Line 5

Thang Long South – Hoa Lac

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


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


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

km Description Est

Cost $M

Status / Potential Funding

1 Metro 19.7 Double Track Std Gauge Underground & Elevated

700 VNR / MOT to develop JBIC funding.

2 Metro 19 Tba

1 Bn

No Government Decision yet on 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 Bn

No Government Decision yet on 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

/BRT 12.5 tba Interest from Scomi Monorail of

Malaysia 8 MR

/BRT 14 tba tba

9 MR /BRT

8.5 tba tba

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


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 alternative or 3rd 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 for signalling or electrical equipment.

13 Opportunities for UK Companies

With the desire to improve both metro and mainline services, opportunity will exist for Consultancy. A number of feasibility studies are required to develop Metro in particular, though finance remains a concern. Certainly self financed opportunities would be very welcome. The plans to develop the Rail network, commuter lines and metro will deliver tenders in the short to medium term. Bridges, tunnels and signalling need to be improved in the immediate term. Issues confronting businesses are bureaucracy, and obtaining licenses to trade, and the limited international experience and qualifications of local companies. UK quality and Service are valued, though UK is considered to be expensive. A guide to investing and doing business in Ho Chi Minh City is available through the British Embassy. Personal relationships are important and it will be fruitful to build relationships ahead of tendering.

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Appendix IV

Vietnam Rail Corporation Organisation

Board of Management

General Director Board of Directors

Inspection Unit

Administrative Bureau Planning Construction Management Railway Safety Finance & Accounting Railway Security Preventative Infrastructure Rolling Stock International Relations Science & Technology Legislation Inspection Dept Statistics & Computing Operation Business Dept Strategic Project Personnel Dept Representative Office Da Nang

Head Office

Independent Accounting Business Enterprise

Independent Accounting Public Utilities

Dependent Accounting Transport Enterprises

Non Productive & Administrative Units

Joint Stock Companies

Dian Train Co 15 Railway Management Cos

Hanoi Passenger Transport Co

4 Railway Project Management Units

11 Services and Materials Groups

Gialam Train Co

5 Signalling & Telecoms Cos

Saigon Passenger Transport Co

Railway Vocational College

15 Construction Materials and Civil Construction Companies

Railway Freight Transport Co

3 Mechanical Group Companies

Saigon Print Enterprises

Railway Newspaper Health Preventative

Dept

31


Appendix V - VNR System

32


Appendix VI Useful Contacts Vietnam Railway Corporation

118 Le Duan Hanoi Vietnam Tel +84 9 426 781 +84 8 220 537 +84 8 221 468 email [email protected] www.vr.com,vnMr NGUYEN Huu Bang Chairman of the Board.

Hanoi Railway Passenger Transport Company

120 Le Duan St Hoan Kiem District Hanoi Tel +84 4 942 117

Saigon Passenger Transport Company

136 Ham Nghi St District No 1 Ho Chi Minh City Tel +84 8 829 0198

National Standards Agency reports to the Ministry of Science and Technology and is known as:

Directorate for Standards and Quality /STAMEQ 8 Hoang Quoc Viet, Hanoi Vietnam Tel + 84 4 756 2608 Email [email protected] www.tcvn.gov.vn

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http://www.vr.com,vn/



Malaysia 14 Summary - Rail Scoping Mission

14.1 Introduction Rail transport has moved swiftly up the agenda in view of rising energy prices and congestion in Malaysia. Fuel subsidies are being withdrawn now, and the impact is being felt in areas such as petrol prices and taxi fares. KTMB the main-line Rail Operation is seeking to improve all aspects of its performance, whilst Public Transport in the major city of KL has well developed plans for expansion. 14.2 KTMB National Rail Operations KTMB is the State Owned, National Rail Operator, being a fully integrated, metre gauge operation (though the metros are standard gauge). KTMB does use Contractors for Track Construction and Electrification. The priority for KTMB has been to electrify and double track, key routes around the peninsula. As such it has completed a number of projects already, connecting important ports such as Port Klang, Butterworth Container Terminal and Penang, to major cities and hubs. Almost all the bridges on the entire network are deemed exhausted causing speed restrictions to be imposed on a regular basis. KTMB have been focussing on improving efficiency and quality of service, reliability, and integrated services for both passengers and freight. Just as the larger infrastructure developments are the most visible elements, investment in new central workshops and training programmes are aimed at improving customer service and increasing the efficiency of KTMB. 14.3 Urban Transportation Congestion has been increasing in KL and the Klang Valley. A master plan to add to the existing suburban transport has been written. The Putra and Star lines will now come under the RapidKL banner, and both these and the KL Monorail are very well patronised so and have plans for extensions in hand. These offer great potential in view of rising fuel costs, recognised already in Malaysia where fuel subsidies are gradually being withdrawn (fuel prices were increased overnight on 4 June 2008 by 41% and more increases are anticipated). The cost of fuel subsidies reaches around USD 17 Bn pa and is clearly unsustainable. 14.4 KL Airport Express Separate but now a mature operation is the KLIA express, a standard gauge connection to the airport, built under a PPP BOT arrangement by YTL. However YTL proposals to build a high speed line to Singapore are currently on hold, as vital Government support has not been given. 14.5 Economic Background Malaysia remains an attractive target for British trade and investment. Close historical and educational ties (many influential Malaysians study in, and are familiar with the UK), a familiar commercial/legal framework and the widespread use of English have all facilitated this process. A substantial and increasing number of British companies have a presence in Malaysia, in a number of cases as a hub for their regional business interests – something the Malaysian authorities are keen to promote. A detailed economic report is available from the authors or posted on the UKTI Country sector website. Malaysia recovered reasonably well from the Asian Financial Crisis and has reformed its Banking laws. Despite the fuel issue, they are seeking to contain inflation and hit economic growth in the region of 5 to 6%. The main business reform challenges facing Malaysia now are to improve the performance of Government-Linked Companies (which still account for a large part of the economy); to improve further corporate governance and transparency; and to up-skill and move up the value chain in response to the economic challenge posed by China and other low-cost manufacturing economies such as Vietnam, Thailand and Indonesia.

34


15 Key Contacts /acknowledgements A detailed list of contacts is included in the Appendix but particular thanks go to the following for their kind assistance in preparing this report:

Name Position Organisation Dato' Mohd Salleh bin Abdullah Managing Director KTMB HJ Anuar Bin Kassim Director General KTMB Ir Zohari Sulaiman General Manager RapidKL Nor Hassan Ismail Chief Operating Officer -

Rail RapidKL

David Starbuck Rail Projects RapidKl Zulkifli Mohd Yusoff Chief Technical Officer SPNB

16 State Railway KTMB Organization

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16.1 Overview KTMB reports to the Ministry for Transport, being a wholly State owned enterprise, and is dependent on the Government for funding. Department of Railway is under the jurisdiction of the Ministry of Transport. The importance of the Railway as a national asset in Malaysia is growing as a result of the energy crisis. Even so, the network needs considerable renovation, especially bridges, many of which have reached the limit of their serviceable life. These are causing line speeds to be restricted and a major rehabilitation program is required. Rolling stock is a further priority, though the market for electric EMUs in metre gauge is quite small, limiting scope for leasing. (Some collaboration with QR of Australia is underway, I believe being Rolling stock consultancy is being provided by the Australians). KTMB have a mixed fleet, with units of South African, Korean and Japanese heritage. (Some older UK rolling stock was mentioned) but certainly spares and maintenance would not be deemed streamlined giving another issue for KTMB to manage. The majority of rehabilitation has taken place on the West Coast corridor, double tracking and electrification. The East coast remains largely single track and requires to be enhanced. Fares are regulated meaning KTMB cannot raise fares outside Government guidelines. Hence, services are often running at a loss. KTMB rely on the Ministry of Transport for funding, there is no multilateral finance from such as ADB, though a previous project was completed using JBIC finance. There is no provision for Private Capital in the Railway. KTMB has three core businesses, Commuter, Intercity and Freight. It also raises revenue from Property leasing and advertising. 16.2 KTMB Historical Background Department of Railway was formed on the 1st of August in 1992 with Rail re structured to Keretapi Tanah Melayu Berhad (KTMB). The Railways main aim is to encourage the development of all rail to become a service for passengers and freight that is popular, safe and efficient with affordable rates so that it can accommodate current and future demands. The Klang Valley Electrified Double Track Project, implemented between 1989 and 1995, has been the catalyst for this department and KTMB in moving toward the new generation of modern railway infrastructure and facilities. It was the first major upgrading exercise undertaken by the Government in the railway sector, with the knock-on effect of further modernisation of railway infrastructure and which led to the establishment of the Double Tracking Project (DTP) unit in 1989 to oversee its implementation. In 1994, the DTP unit was renamed as Special Projects Department (SPD). In addition to monitoring and supervising the Double Tracking Project, it also managed other railway development programmes funded by the Government. In 1999, it was renamed as Project Management Department (PMD) accentuating its role as a Technical Advisor and Project Manager for the Government besides its extended scope in advising KTMB’s internal departments on contractual matters and in-house projects handled by the respective departments. To date, Project Management Department (PMD) has Government sanction to monitor and implement the following projects:-

ELECTRIFIED DOUBLE TRACK BETWEEN RAWANG AND IPOH ELECTRIFIED DOUBLE TRACK BETWEEN SENTUL AND BATU CAVES RAIL INFRASTRUCTURE DEVELOPMENT AT BATU GAJAH UPGRADING OF RAIL BRIDGES STRENGTHENING OF TRACKS ROLLING STOCK UPGRADING UPGRADING OF PASSENGER FACILITIES Construction of New Commuter Stations Upgrading of Existing Station Facilities REHABILITATION OF INFRASTRUCTURE FOR SABAH STATE RAILWAYS

KTMB has a policy of outsourcing – currently two contracts are in operation: wheel profiling with a company called SMH Rail, and wagon maintenance to Scomi Engineering. 16.3 Projects KTMB is in its 9th Plan which includes the Ipoh – Padang Besar and Seremban – Gemas double tracking projects. Enhanced passenger facilities are being created to meet growing patronage.

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A program costing 465 M Ringitts (£72M) is underway to upgrade rolling Stock due for completion in 2009. A snapshot of work underway includes:

Sentul – Batu Caves Planned to complete in 2009, this project entails double tracking and electrification of a very important 7.5 km section of track serving a densely populated area that is also popular with tourists during Thaipusam celebrations for the local community. Ipoh Padang-Besar 329 Km & Seremban-Gemas (94km) Due for completion in 2012, and part of the west coast corridor on the Rawang – Ipoh – Seremban route, these double tracking and electrification projects will, when completed, provide a line with modern facilities, increased capacity, safety and comfort and significantly enhance the reliability of services. Equally, the economies of important communities along the route will be enhanced too, including Perlis, Kedah, Penang, Perak, Negeri Sembilan and Melaka, with an expectation that 100,000 jobs will be created. The facilities will allow operation at 140 kph, Balfour Beatty are involved on this in JV with Ansaldo, in the electrification of a line that will form part of the Trans Asia rail network. Further work includes:

• Upgrading of level crossings • Installation of modern signalling • Congestion relief

Rail Workshops at Batuh Gajah Due for completion in 2009, these workshops will replace a much older facility in Sentul. Bridge Strengthening Programme A programme of enhancing bridges on the network deemed exhausted and past their service life, is underway. Speed restrictions are in place, and a new fleet of locos cannot be efficiently deployed due to weight restrictions. A priority programme is underway to eliminate the worst pinch points and maximise the use of the fleet. Track Rehabilitation KTMB is keen to improve the condition of track to facilitate the running of trains with 20 mt axle loads. As such a programme of track rehabilitation is underway including the provision of mechanized maintenance equipment. Grinders and tampers are due for delivery in 2009 to join new equipment already in place – the list is:

• Dynamic Track Stabiliser 3 units delivered • Ballast Regulator 3 units delivered • Track Switch Tamper 2 units due June 2009 • Duomatic Tie Tamper 1 unit due June 2009 • Ballast Cleaner 1 unit due June 2009

Sarawak (New Rail Construction) Sarawak is contemplating rail construction. It’s location on the Island of Borneo will extend the issues of such a project, but according to reports from Sarawak's Chief Minister Tan Sri Abdul Taib Mahmud, the first railway in the state will be built within the 320-kilometre Sarawak Corridor of Renewable Energy (SCORE). The railway development is also expected to facilitate logistics growth around the corridor.

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16.4 KTMB Physical Data (2006) The following information is taken from the KTMB annual accounts of 2006:

Employees 5106 Route Km 1817 Of Which electrified 385 km No Bridges 876 Wagon Fleet Locomotives 93 Passenger Coaches 264 Power Generation Cars 24 Freight Wagons 3707 EMU Sets 58 Maintenance Depot Sentul

Revenue Data shown in Millions / Malaysian Ringitts (RM M)

0

100

200

300

400

2001 2002 2003 2004 2005 2006

KTMB Revenue RM M

PropertyFreightCommuterIntercity

0

10

20

30

40

50

Freight M Tonnes & Passegers M Pa

Freight TIntercityCommuter

17 Urban Railway (Kuala Lumpur, KL) Urban Transportation in KL is regulated by Government, and consists of two key LRT systems, a Monorail and Bus Services. The two existing Rail systems called STAR and PUTRA initially installed under PPP format, have been taken into Public Ownership and managed by SPNB

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responsible to the Ministry of Finance. Operations and maintenance are provided by RapidKL and plans are laid to extend the system across the Klang Valley. 17.1 Syarikat Prasarana Negara Berhad (SPNB) Syarikat Prasarana Negara Berhad (Prasarana) is a wholly-owned Government company under the Ministry of Finance Inc., which was set up to own the assets of selected public transport companies. This is part of the Government’s initiative to restructure the urban public transport system in the Klang Valley. 1st Floor, Block A, Wisma RKT No.2, Jalan Raja Abdullah Off Jalan Sultan Ismail 50300 Kuala Lumpur. Tel: 603-2693 1887 Fax: 603-2694 1887 http://www.prasarana.com.my SPNB owns the assets of two light rail transit (LRT) lines namely the Ampang Line (AMP) and Kelana Jaya Line (KLJ). The Ampang Line which runs from Sentul Timur to Ampang and Sri Petaling was formerly known as STAR-LRT while the Kelana Jaya Line which runs from Kelana Jaya to Gombak was formerly known as PUTRA-LRT. Apart from being the asset owners of the two LRT systems, SPNB also supplied 1,055 new buses as of April 2008 to service routes within the Klang Valley. Both the LRT and bus services are operated by Rangkaian Pengangkutan Integrasi Deras Sdn Bhd (RAPID KL) a wholly-owned Government company under the Ministry of Finance Inc. In February 2007, the Federal Government announced the need for a major revamp of bus operations in Penang. As a result, Rapid Penang Sdn. Bhd. (Rapid Penang), a wholly-owned subsidiary of RAPID KL was set up in August 2007 to operate new bus services with a fleet of 150 buses supplied by SPNB. In December 2007, SPNB took over the assets and operations of KL Monorail System which is currently being managed by KL StarRail Sdn. Bhd. (KLSR) a wholly-owned subsidiary of SPNB. In April 2008, Prasarana set up KLRT Consult Sdn. Bhd. (KLRTC) as a wholly-owned subsidiary of Prasarana through the transfer of all staff from the Asset Development Division of Prasarana. KLRTC is managing all asset development projects entrusted to Prasarana with the objective of nurturing local talent and human capital development in the field of project management specializing in urban transportation projects. Since January 2003, SPNB has also been operating and maintaining the cable car services in Langkawi on behalf of the Langkawi Development Authority (LADA) through its fully-owned subsidiary, Panorama Langkawi Sdn. Bhd. (PLSB). The cable car provides a ride to the top of Gunung Mat Chinchang for a panoramic view of Langkawi Island and the surrounding areas. Fare restrictions are in place through a regulation scheme and currently there is no scope for Private Capital to participate. This may change in future, but I suspect will require legislation to come into effect. Private Bus groups also get fuel subsidies, though how long this will continue is in discussion. The extension plans detailed in the Rapid KL section apply, in particular, new power supply and rail car projects were discussed. Platform Screen doors are used underground and the opportunity to extend these across the network remains subject to finance. Bus acquisition for the network has also been underway. Rail supply is in demand. Local agency representation is essential. Bombardier are supplying additional passenger cars to allow a 4 car service to run, which will be supplied from Mexico. Halcrow and Mott McDonald are amongst International Consultants vying for contracts in conjunction with local consultants for the extension projects that should be in service by 2011. Consultations are underway about routes for extending the KL system into new developments in the Klang Valley. Currently the monorail is at peak capacity, and restricted by the limitations of the signalling system.

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A tender for smart ticketing/ fares system is being launched which may interest UK companies. 17.2 Rapid Kl Rangkaian Pengangkutan Integrasi Deras Bhd, (RAPIDKL) Due to the rapid pace of expansion of the economy of Malaysia, and the consequent pressure on the road system of the capital city, Kuala Lumpur, the Government of Malaysia has decided to make a significant investment in improving the public transport systems in the Klang Valley. This is in line with the aspiration to be a developed nation by the year 2020. As part of their mid-term review into the 9th Malaysia Plan (9MP) the Malaysian Prime Minister confirmed that improvement to public transport remains a key government objective. A Government sub-committee under the Transport Ministry has been set up and has the job of restructuring and integrating the public transport system in the Klang Valley. This committee is called INSPAK and is co-ordinating the growth plans of all the transport operators in the Klang Valley including KTMB (heavy rail express and Komuter), Monorail, LRT and bus services. One of the first steps of the Klang Valley transport plan was to create an asset owning company and an operating company as two wholly owned companies directly under the Ministry of Finance. The asset owning company is called Syarikat Prasarana Negara Berhad (SPNB), The operating and maintenance company is Rangkaian Pengangkutan Integrasi Deras Bhd, and operates under the brand-name, RAPIDKL. RAPIDKL was created in November 2004, as part of the integration strategy in the Klang Valley; it was formed from the existing two LRT systems and two major bus operators with the prime objective of integrating the systems to encourage public use. RapidKL is a wholly government owned organisation and is responsible for operating and maintaining the 2 LRT systems (formally known as PUTRALine and STARLine) and the stage bus services throughout the Klang Valley. RapidKL has a 10 year concession agreement with the asset owning company, SPNB which is responsible for all asset provision for the public transportation systems. RapidKL has approximately 4,200 employees of which 1,200 are working on the two LRT systems and 3000 on the stage bus network. The rapid growth of the suburban areas of Kuala Lumpur has led to the decision to extend the two existing LRT lines to provide a public transport solution for the newly developed housing areas, and for additional lines to be considered. In 2006 a series of studies were undertaken which identified the major growth corridors in the Klang Valley and determined the optimum routes for the LRT lines taking into account rider ship potential and constructability issues. Wherever possible the routes have been chosen which use government land or road medians to reduce the necessity for compulsory purchase of private land. RapidKL as the network operator and SPNB as the asset owner are co-operating to deliver an improved, integrated and extended public transport system in the Klang Valley with investments totalling over RM 10 billion planned in the next 5 years. It is intended that provision of these new and improved systems will lead to a significant modal shift by the travelling public, from private car to public transport for commuting, shopping and education related travel. 17.3 AMPANG LINE (STAR Line) This line was opened in 1996 and extended in 1998 to serve the Commonwealth Games site at Bukit Jalil. The system is a standard manually driven type with fixed block signalling and power supplied to the trains by a 3rd rail at 750 v dc. The trains are operated as articulated pairs coupled to form a 6-car set. There are 30 trains and 26 are made available for service on a daily basis. The ultimate system design capacity is 33,000 pphpd. The signalling system was supplied by ACEC of Belgium (now owned by Alstom) and Walkers of Australia supplied the train bodies with bogies and traction equipment by AEG/Adtranz (now Bombardier). The Ampang line operates in a ‘Y’ network, with the branch ends being Ampang in the East of KL, Sentul Timur in the North of KL and Sri Petaling in the South of KL. Peak hour service intervals are 5 minutes on the branches and 2.5 minutes in the central business district forming the centre of the ‘Y’. Total system length is 28 km.Today these two branches and mainlines are

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carrying over 130,000 to 150,000 passengers per day on a weekday basis and an average of 120,000 per day on weekends. 17.3.1 Ampang Line Extension (formerly STAR Line) The Ampang line extension will start from the existing terminus at Sri Petaling to the south of Kuala Lumpur and will extend for 15 km to the new integrated station at USJ. This will bring an LRT service to a rapidly expanding area in the Klang Valley and will also open up a useful new transport corridor from the Puchong area to the major township of Subang Jaya along a southern axis. This will provide a balancing load to counter the heavy passenger flow which will travelling into the city and utilise what would otherwise have been relatively lightly loaded services heading out from the city centre to the terminus in the morning peak times. The extension will have 12 stations and the journey time from the new terminus to the city centre will be 50 minutes. The route will utilise road and waterway corridors to minimise the purchase of private land as far as possible. The rider ship forecast predicts that up to 40,000 passengers will be carried during the peak hours and a frequency of 2.5 minutes will be necessary to deliver this capacity. The current Ampang line fleet is 30 x 6 car trains of which 26 are made available for service every day. When the new line opens in 2010 there will be a requirement to purchase an additional 4 trains to maintain the timetable demand. This will pose an interesting procurement exercise where only 4 trains are to be purchased to add to an existing fleet that was built 12 years ago. One mitigating factor will be that the trains and systems are fairly traditional in design and although RapidKL will not be able to buy more of the same design it shouldn’t be too difficult to obtain a compatible train-set. The problem will be in the operation, maintenance and spares holding areas where a unique fleet of 4 trains will need to be serviced alongside the current fleet of 30 trains. In addition the train drivers will need to be proficient in both types of train operation combined with the issues relevant during rescue, fault finding and coupling together of differing types of train sets, which is not normally a feature of LRT system operation. 17.4 KELANA JAYA Line (formerly PUTRA Line) The KJL was opened for service in 1998, again to provide transport to the Commonwealth Games sites around the city. The system is a fully automatic driverless type with moving block communication based signalling control system for the trains. Power supply is at 750 v dc but utilising a 3rd and 4th rail system. At present the trains operate as 2- car married pairs. The ultimate system design capacity is 30,000 pphpd based on 4 car operation. The signalling system was supplied by Alcatel (now Thales) and the trains were built by Bombardier based on the Advanced Rapid Transit (ART) Mk. 2 vehicle using a linear induction motor for traction purposes. The system operates at a minimum of 3 minutes headway and 32 trains are used out of the fleet of 35 on a daily basis. The line operates from Kelana Jaya in the south west of Kuala Lumpur, through the central business district via a 4.8 km tunnel, to the North East of the city, terminating at Gombak (Terminal Putra station) and is 30 km long. When it was opened, the line was the longest automatic LRT in the world. In 2002, the system carried its 150 millionth passenger, with an average of 160,000 passengers riding the system daily. Today, it carries over 170,000 passengers a day and over 350,000 a day during national events. 17.4.1 Kelana Jaya Line Extension The Kelana Jaya line extension will start from the existing southern terminus station at Kelana Jaya and extend through the Subang Jaya town ship where it will provide integration with the heavy rail commuter system, and on to a new terminus at USJ (Putra Heights) The line will be approximately 17km long (increasing the existing system by 50%), with 12 stations. The journey time from the new terminus to the city centre will be about 55 minutes. There will be two stations with Park and Ride facilities whilst the remainder will have special emphasis in the design to cater for bus access and will provide easy pick-up and drop-off features for car and taxi users. The rider ship forecast for the extension predicts peak loads of up to 45,000 passengers and it will be necessary to purchase additional trains to serve this new rider ship. The trains will be

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procured by exercising an option in the current Fleet Expansion contract with Bombardier for at least an extra 13 x 4 car trains. It is planned to operate at a headway of 2.5 minutes during the peak periods. The end station of the line at USJ will integrate with the planned extension from Sri Petaling on the Ampang LRT Line and also at this site will be provided a small maintenance and storage facility. Minor repairs and cleaning of trains can be undertaken here to relieve pressure on the existing maintenance depots at Subang (Kelana Jaya line) and Ampang (Ampang line). 17.4.2 Kelana Jaya Fleet Expansion On the Kelana Jaya line, the original fleet of 35 x 2 car trains is capable of moving about 8,000 pphpd but ridership demand is now peaking at 10,500 pphpd and overcrowding is commonplace on the system. In recognition of this, a contract was signed in 2006, with Bombardier Hartasuma Corporation, for the supply of an additional 22 x 4 car trains which will effectively double the system capacity. The contract value for the new trains and the associated E & M works is approximately RM 1.7 billion. The E & M works will include 6 additional storage lanes at the Subang depot site, upgrades to the traction power supply system and the installation of 12 sets of platform screen doors at each of the five underground stations. The trains are expected to be in operation by early 2009 and will offer much needed relief to the congestion on the line. In the morning peak periods it is often necessary to wait for at least 5 trains to pass before passengers are able to board and the up and down line queues of passengers are often interlaced and completely fill the platform space. This leaves no room for passengers to alight from the train and causes delays to the system operation. 17.5 System Integration The first task of RapidKL was to integrate the various bus routes with the LRT system so that the buses took people from their housing area either to the places of employment, or to the LRT station for a fast journey into the city. The whole city and suburban bus network was revamped in 2005 and further minor improvements were introduced in 2007. 17.6 Ticketing & Fare Collection To cater for the integrated transport system, the ticketing system was reviewed and a new series of tickets, which offer seamless transfer across the bus and LRT networks, was introduced. The new monthly Travelcard which offers unlimited travel on all RapidKL buses and LRT systems costs RM 125, whilst a rail only ticket costs RM 90 per month and a bus only ticket is RM 80 per month. Due to the differing ticketing systems which were in place within the constituent companies of RapidKL it has proven very difficult to introduce a cross-system magnetic ticket so at the moment the Integrated tickets are based on a manual, proof of payment, system with the consequent problems associated with cash collection and reconciliation. A third party Contact-less Smart Card (CSC) system, called ‘Touch-n Go’, was initially in place on the Kelana Jaya line and this has been extended as an overlay to the magnetic ticket system used on the Ampang line thus giving transfer facilities between the LRT lines. This system will be slowly extended across the bus network during 2007. Several improvements to the AFC system are planned to cater for the increasing patronage of the LRT and bus networks, including additional automatic gates and ticket sales equipment at stations. In addition, existing AFC equipment is either being replaced or upgraded to provide improved performance or features. For example upgrades to the Ticket Vending Machines (TVM) are planned so that they are able to accept multiple notes rather just a single note as at present and issue various different ticket types. RapidKL also plan to migrate the single journey ticket from magnetic stripe to a Contact less Smart Token (CST) system to enable integration across the network. This system benefits from lower operational costs due to the inherently simpler ticket issue and capture mechanisms used in the TVMs and Gates.

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17.7 New (Additional) Lines Further to the extensions to existing lines covered above. As these will still only serve a part of the Klang Valley conurbation and plans are in place to build at least one completely new line to serve areas that currently have no LRT service. The first new line will run in a roughly North West to South East direction traversing the city centre in a 5 km tunnel. The route length from Kota Damansara/Sungai Buloh to Cheras will be about 42 km with the major depot located at Kota Damansara on land currently owned by the Rubber Research Institute. The route will travel through the new housing areas in the western suburbs, then past the major shopping and office destinations in the west and south side of the city before descending into a tunnel. The tunnel will emerge on the East side of the city centre and then travel in a roughly South-Eastern direction to end at the major housing areas in Cheras. Ridership studies predict a peak ridership of 43,000 per hour so the principle will be a metro type of system rather than an LRT design. It is anticipated that 6 car trains will be used at approximately 2.5 minute headways to meet the estimated demand. This will mean that about 60 trains are required but they may be purchased in stages as the ridership increases. The operation plan will be simple end to end with no turn-backs as the predicted rider ship is evenly balanced along the length due to the design of the route. The new line is planned to be operational by 2012. 18 Yeoh Tiong Leh Ltd (YTL) and KLIA Express Rail YTL are a conglomerate with a diverse engineering portfolio covering power, construction, water and cement and hotel businesses. They built the express line to KL airport and own Wessex Water in the UK. The business has a turn over in excess of £1bn. Scott Wilson acted as Consultant. YTL have a 50% stake in the KL express operations, and are also a sub contractor to KTMB on the Sentul to Batu Caves project. This may present opportunities for UK companies such as:

Materials supply Electrification systems Permanent way Consultancy

The Express line is a 160 kph operation; maintenance is undertaken by E-MAS. 18.1 KLIA Operations Express Rail Link Sdn Bhd (ERLSB) was awarded the concession on 25 August 1997 to finance, design, construct, operate and maintain the KLIA Ekspres and KLIA Transit and other ancillary activities related to railway services. ERLSB’s shareholders are YTL Corporation Berhad, Lembaga Tabung Haji Bhd and Trisilco Equity Sdn Bhd with 50%, 40% and 10% shareholding respectively. The KLIA Ekspres which commenced operation on 14 April 2002 is a daily high speed, non-stop air-rail connection between KLIA and Kuala Lumpur City Air Terminal (KLCAT) at KL Sentral station with a journey time of 28 minutes at 15-minutes interval during peak hours and 20-minutes frequencies during off-peak hours. The KLIA Transit is a commuter service that stops at three intermediate stations i.e. Bandar Tasik Selatan, Putrajaya/Cyberjaya and Salak Tinggi with a total journey time of 37 minutes at 30-minutes frequencies. It first started operation on 1 June 2002. The other ancillary activities are retail space provisioning at KL CAT and advertising spaces on the trains, stations and InfoScreen. ERLSB is operated by a team of one hundred personnel from various departments that includes Marketing and Sales Management, Services and facilities management. The train operation and maintenance is efficiently managed by ERLSB’s wholly owned subsidiary, ERL Maintenance Support Sdn Bhd (E-MAS). 18.2 KLIA Maintenance E-MAS was established in 1999 and initially owned by Siemens and ERLSB with shareholding portion of 51% and 49% respectively. After three years in operation i.e. in June 2005, ERLSB took over Siemens shareholding whilst E-MAS continue to operate and maintain the train system with its three hundred (300) experienced and competent personnel under the ERLSB

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flagship. Design, finance, construct, manage, operate and maintain a high-speed air-rail system between Kuala Lumpur City Air Terminal (KL CAT) at the Kuala Lumpur Sentral Station and Kuala Lumpur International Airport (KLIA) under the Build, Operate and Transfer privatization system for a period of 30 years. The Concession Agreement between Express Rail Link Sdn Bhd (ERLSB) and the Ministry of Transport was signed on 25 August 1997.

18.3 High Speed Link to Singapore YTL were seeking support to construct a high-speed link to Singapore but this has not found any support in Government at this time. 19 Scomi Engineering Scomi are a diversified Malaysian Engineering Company, with interest extending across the oil and gas, and transport sectors, including Buses, and which built and installed the Monorail system in KL. They are currently promoting their Monorail as a scaleable solution to overcome congestion in a number of different markets, in Asia and in the Middle East, and are very encouraged by the levels of interest. With its relatively small footprint and ability to negotiate tight corners, and indeed relatively modest cost Scomi believes it provides an attractive solution to Urban planners in an effort to combat congestion in cities. A detailed company presentation is available on contacting either Bob Docherty or Neil Walker at UKTI. Scomi are sure that their system will be attractive throughout Asia where streets are fairly tight and congestion is an issue. The flexibility of the system allows capacity to be added progressively. Interfleet have been appointed to assist with licensing the system, and Brecknell Willis has supplied the contact rails and equipment. Scomi are seeking to enhance the design and are happy to talk to potential suppliers for equipment. Castings and bogeys were two items specifically mentioned, though any aspects that benefit Metro type applications are welcomed. 20 Balfour Beatty Rail Balfour Beatty who are actively engaged in electrification work for KTMB gave an appraisal of market conditions that may be of benefit to UK companies. BB has been present in the Asian market for some time, and appears to take a long term view of the region, maintaining a presence which has ultimately been fruitful. BB are active in a contract through a jv , it is apparently common that the civils contracts of projects are awarded locally, with the E & M content going to International companies. Care must be taken on tender and local market conditions just as with any other location, specifications and terms are fairly rigid. 21 Ircon Ircon a Company wholly owned by Indian Railways have been active in Malaysia for a number of years. Ircon has recently been awarded a project to double, rehabilitate and electrify track, we understand in a Government protocol contract involving Palm Oil. The project from Seremban – Gemas is worth around 1 Bn USD involves 94 km of double track, 7 new stations, bridges and tunnels. There may be opportunities for UK companies, Ircon Managing Director is Mr Ankush Krishan based in New Delhi. Contact Ankush Krishan [email protected] IRCON INTERNATIONAL LIMITED Plot No. C-4, District Centre, Saket, New Delhi - 110017 Tel.: +91-11-29565666 Fax: +91-11-26522000/26854000 E-Mail : [email protected] // www.ircon.org

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22 Penang – Proposed Monorail A proposal was launched to construct a monorail system but the project has been shelved for the meantime currently lacking political support and finance. 23 Opportunities for UK Companies Mention made of tender 8 + option of further 5 EMUs with training packages by KTMB. As KTMB mentioned, Bridges indeed many aspects of infrastructure need improving, just as the assets are being recognized as a valuable, even strategic means of transport. An ongoing program of double tracking and electrification Civils packages tend to go to local companies (under a Bumiputra ie indigenous Malaysians) preference scheme), whilst E & M are usually international. Process and Asset management techniques may prove valuable to KTMB as they seek to manage their assets in a better manner to provide efficiency benefits. Companies who can offer efficiency measures to KTMB, Consultancy and training may find opportunity in the market. The Double tracking and electrification schemes are continuing, whilst RapidKl has firm expansion plans which should allow opportunities to be developed in the Metro sector. Smart ticketing and revenue protection are other areas of interest for UK companies

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Appendix IX RapidKL System Map

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