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January 2024

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daniel
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IRJ

January 2024 | Volume 64 Issue 1


www.railjournal.com | @railjournal

,QWHUQDWLRQDO5DLOZD\-RXUQDO

The Railway in

2024
Energy crisis Cracking up
Surging energy costs hit British fleet set for
European rail sector six-year repair programme

Analysis of the key trends impacting the global railway


Contents
International Railway Journal
The Railway in

2024
January 2024
Volume 64 issue 1

The Railway in 2024 Asia


4 Big projects ready to leap forward in the next 12 months 30 Key projects to watch in 2024
Seoul GTX-A - Kuala Lumpur - Singapore high-speed
Trends 31 Financial performance a concern for Indian Railways
6 Railways and renewables forge new links Analysing of the challenges that lie ahead
Making the case for rail as the most sustainable mode of transport
8 RATP Dev reveals strategy for global growth
CEO Hiba Fàres speaks to IRJ Australia
11 Regional railways enter a new paradigm 32 Key projects to watch in 2024
Melbourne’s Suburban Rail Loop - Sydney Metro
Adapting to changing passenger needs and expectations
33 Australian industry strives to grow rail freight
14 The 2030 vision for heavy-haul Making the case for modal shift
The heavy-haul sector seeks to capitalise on new opportunities

Europe Africa
17 Key projects to watch in 2024 35 Key projects to watch in 2024
Angola’s Lobito corridor - Egyptian high-speed
Portuguese high-speed - Transpennine upgrade - Dart+ West
18 Passenger market enters dynamic new phase 36 A fresh start for Transnet
Turning South Africa’s crisis-stricken railway around
Open-access is thriving across the continent
20 Getlink seeks to boost Channel Tunnel traffic
Doubling traffic between Britain and mainland Europe in 10 years Middle East
22 Rail Europe strives to meet passenger expectations 38 Key projects to watch in 2024
Ticket retailer aims to offer a neutral platform for customers Saudi Landbridge - Tel Aviv light rail - UAE-Oman railway
24 Legislative changes set to boost rail’s appeal
Reflecting on the challenges and opportunities for European rail
News
South and Central America 38 News headlines
25 Key projects to watch in 2024 43 Transit News
Brazilian inter-city rail - El Salvador and Guatemala rail revivals

North America Also in this issue


26 Key projects to watch in 2024 45 Full contact list
Brightline West - Canada’s High Frequency Rail project 45 Advertisers index
26 Mexican president opens first section of Mayan Train 45 Fresh faces
The remaining sections will open in the first half of 2024 46 The last word
28 Mixed outlook for rail freight in 2024
Analysing the trends in North American freight and logistics

Contact us
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Tel +44 1326 313945 Tel +1 212 620 7200
Web www.railjournal.com
Business development manager
Editor-in-Chief Kevin Smith [email protected] Jerome Marullo [email protected]
Consulting Editor/Associate Publisher David Briginshaw [email protected] Tel +1 732 887 5562
Associate Editor Robert Preston [email protected]
Business Development Manager Ann Gamble [email protected] Print magazine subscriptions hotline
Production Manager Sue Morant [email protected] Tel +1 402 346 4740
Fax +1 847 291 4816
International Railway Journal (Print ISSN 2161-7376, Digital ISSN 2161-7368), is published monthly by Simmons-Boardman Publishing Corp, 88 Pine Street, 23rd floor, New York, NY 10005, USA. Printed
in Great Britain by Micropress and distributed in the USA by Mail Right International, 1637 Stelton Road B4, Piscataway, NJ 08854, USA. Periodicals postage paid at Piscataway, NJ and additional mailing
offices. COPYRIGHT © Simmons-Boardman Publishing Corporation 2024. All rights reserved. Contents may not be reproduced without permission. For reprint information please contact Editor-in-Chief.
For print magazine subscriptions, assistance & address changes, please call +1 402 346-4740, Fax +1 847 291-4816, Email: [email protected] or write to: International Railway
Journal, Simmons-Boardman Publishing Corp, PO Box 239, Lincolnshire, IL, 60069-0239, USA

IRJ The Railway in 2024 3


The Railway in 2024 | Kevin Smith

Big projects get set to leap


intermodal transport, are China inevitably remains
intended to boost rail freight. influential in Asia - there is sure

forward in 2024
The Green Transport Package to be strong interest from
announced in summer 2023 Chinese firms and financiers in
also includes revisions to the revived Kuala Lumpur -

S AUDI Arabia’s ambitious


Landbridge project, an east-
west, port-to-port railway from
The UAE Consensus, the
output document of COP28,
which was held in Dubai in
legislation governing the use of
infrastructure capacity in the
Single European Rail Area that
Singapore high-speed project
(p30). This follows the recent
success with the cross-border
Jubail and Damman on the December, included could boost network capacity line from Kunming to Laos and
Persian Gulf to Jeddah on the commitments to transition by up to 4%. Rail associations the Jakarta - Bandung high-speed
Red Sea via Riyadh, has finally away from fossil fuels for the and lobby groups are pushing project in Indonesia. Domestic
taken a key step forward. A first time. While not committing for the swift adoption of these railway development is also
consortium of Italferr, Sener and to a total phase out, as many proposals following the long- continuing at pace, especially
Hill International were confirmed environmentalists had hoped, awaited recast of the TEN-T in western China (p39).
as the preferred bidder for a this is still an encouraging step. network last month (p41). Geopolitics are similarly
project management consultancy Sustainable transport, including Efforts to boost competition driving railway developments
contract last month. 20 years rail, can also take heart from through the Fourth Railway in central Asia, specifically in
after the project was conceived, the document’s acknowledgment Package are also paying off developing alternatives to trans-
construction could finally get of the need to “accelerate the (p18). Expect some progress Asian routes through Russia.
underway later this year. reduction of emissions from road here in the next 12 months. Kazakhstan, a major
The Saudi Landbridge is one transport on a range of pathways” In the United States, beneficiary of the upturn in
of the projects to watch in this and the commitment to triple passenger rail and transit east-west freight volumes in
special issue of IRJ (p38). Progress renewables and double energy investment is entering a golden recent years, is investing big to
here is another sign that the efficiency (p6). period in light of the $US improve connections with its
Middle East rail market has neighbours and this looks set


sparked back into life. The Gulf to continue.
Cooperation Council (GCC) Inevitably the upturn in
added further fuel to the fire by The climate crisis and decarbonisation activity raises questions about
announcing December 2030 as skills and the industry’s capacity
the completion date for the are key factors driving new railway to deliver. These will remain
trans-Arabian GCC Railway to investment. big talking points over the next
connect Kuwait, Saudi Arabia, 12 months. Thankfully many of
Bahrain, Qatar, the United Arab the challenges posed by high
Emirates and Oman. The climate crisis and 106bn allocated from Biden rates of inflation and supply
This landmark project hit the decarbonisation are key factors administration’s $US 1 trillion chain issues that have impacted
buffers in 2014 when the oil crisis driving new railway investment. Infrastructure Investment and the industry in the post-Covid
prompted GCC governments to Yet Ghali suggests that the Jobs Act. 2024 also promises to years are finally beginning to
pull back their respective plans Covid years “were a missed be a big year for private rail ease. Indeed, there is a lot for
to build new cross-border opportunity” to get ahead of infrastructure investment in the sector to feel buoyant about.
railway infrastructure. Inter- the curve on new infrastructure the US, notably Brightline West Welcome to The Railway in 2024.
regional disputes, particularly construction, which in the case to build a high-speed railway
between Qatar and the rest of of transport could have really between Las Vegas and southern
the Gulf region, also dampened accelerated this transition. But California. Momentum might
enthusiasm for the GCC project. with deadlines looming to also be restored to Texas
Yet as Mr Raouf Ghali, CEO of allocate post-Covid economic Central, the high-speed project
Hill International, told me (p46), stimulus packages, many between Dallas and Houston. [email protected]
this situation has largely been projects around the world are US support for infrastructure
resolved and he now sees ample poised to take significant steps investment stretches beyond its
opportunity in the region; Hill forward in the coming 12 own borders. Ambitious plans
is in discussion over other Saudi months. to develop a new trans-Persian
construction projects. The This in the case in Europe corridor from India via the
company is also eyeing where sustainable transport GCC to the Mediterranean
opportunities in Oman and rail projects are receiving e85bn of were agreed in September. A
schemes in Qatar and the UAE. the e750bn European Union similar agreement has also
“The strength that the market Recovery Fund. There is, however, been reached to support the
is coming back from those still much work to do if rail is redevelopment of the Lobito
countries, and potentially others to get anywhere close to corridor in Angola. African
as well, is really refreshing,” achieving the objectives for governments are rightly looking
Ghali says. modal shift outlined in the for a better deal than they have
Growing confidence among European Commission’s got from China in the last
Gulf governments to build new Sustainable and Smart Mobility decade or so and the West’s
railway infrastructure reflects Strategy of December 2020. growing attempts to
the long-term desire to diversify Among these targets is doubling counter the Belt
their economies away from oil high-speed rail traffic and and Road
and gas. There is also increasing increasing rail freight volumes Initiative
recognition of the need to invest by 50% by 2030. Looming updates should drive
in more sustainable modes of to the Combined Transport up delivery
transport, reflecting policies in Directive, the only piece of quality all
other regions. European legislation governing round.

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The Railway in 2024 - trends

Railways and renewables forge new links


After industry and buildings, capacity collective travel for both
Lucie Anderton, head of transport is the third-largest sector for passengers and freight, rail is inherently
sustainability, International Union energy consumption. In 2020, the energy-efficient. According to the
transport of goods and people was International Energy Agency (IEA), on a
of Railways (UIC) responsible for 30% of the global total “well-to-wheels” (wing/wake) basis,

T
final energy consumption. Fossil fuels rail emissions per passenger-km are
HE keynote speaker at the provided most of the energy consumed currently on average around one-sixth
International Union of Railways’ by the transport sector, with renewables of air travel. Railways are also very low
(UIC) General Assembly in July representing only 4.1%. The transport emitters of other air polluters such as
2023 was not a railway expert, but a sector reported the fastest growth in nitrous oxides and fine particulate
renewable energy leader: Ms Rana energy consumption and CO₂ emissions matter.
Adib, executive director of REN21, the among combustion sectors globally in Emissions from electrified rail are
only global multi-stakeholder network the 2010s, rising 18% overall between even lower, particularly when powered
focused on advancing the renewable 2010 and 2019. by renewables. Railways are already the
energy transition. The growth in transport emissions is most electrified mode of transport with
Soon after this intervention, which a significant global concern given the almost half of the energy used supplied
shed light on the interdependencies steep trajectory that will be needed to by electricity. European railways are the
between renewables and transport, UIC reach net zero emissions by 2050 and most electrified in the world: within the
became an official member of REN21. limit the global increase in average 27 European Union (EU) countries, 56%
Both organisations are committed to temperature to 1.5°C, as stated in the of lines are electrified, including those
fostering closer cooperation and Paris Agreement. More robust measures that carry the most traffic. Asia is close
strategic thinking across the renewable on transport are needed by 2030, behind at over 43%. Nearly 15% of lines
energy and transport sectors, including reducing vehicle-km travelled in Africa are electrified although less
particularly from the perspective of and decarbonisation. Sustainable modes than 1% of all lines are in the Americas.
railways and delivering the urgently- of travel, such as rail and public
needed energy transition in transport. transport, can and must play a central
“There are strategic opportunities for role in reducing the growth of private Modal shift
railways and renewable energy motor vehicle use. There must also be Given its environmental advantages,
stakeholders to work together to an increase in railways powered by the most powerful contribution that rail
accelerate the paradigm shift needed for renewable energy. can offer the climate is to continue to
the sustainable mobility of the future,” “We need to urgently bridge the gap take more traffic away from road and
says UIC director general, Mr François between renewable energy and air. Electrification of lorries and cars is
Davenne. “By becoming a member of transport,” Adib told the General necessary to stop fossil fuel dependency
REN21, UIC will no doubt find new Assembly. “There has been an but will not be sufficient to meet the
ways to work collaboratively across our unfortunate disconnect between these Paris Agreement targets for transport.
sectors.” two sectors, but we now see the Studies show that steps toward avoiding
opportunity to foster mutual the need to travel or shifting to lower-
understanding and collaboration that emitting modes can account for 40-60%
best addresses regional and local of the required transport emission
challenges. Our partnership with UIC reductions, often at lower cost than
will be fundamental in demonstrating strategies to electrify high-emitting modes.
that railways are key strategic allies for Rapid increases in global energy
transport decarbonisation and, more prices and the growing insecurity of
importantly, systemic enablers for the energy supply have been an additional
inclusive transition to renewables.” talking point in the climate debate over
By design, due to a combination of the past 18 months or so. The fact that
electrification, low friction, and high- railways are often large - and even the

Photo: Quintus Vosman

6
largest - consumers of electricity and 760km line gives sea port access to can provide corridors to distribute energy
diesel fuel in their respective countries, landlocked Ethiopia, carrying over 2 and connect people, supporting
with transport demand matching peak million tonnes of freight per year. This decentralised energy production and
energy demand times, means that line is powered by new hydroelectric distribution.
railways have both the responsibility plants that generate enough energy to Where diesel-operated railway
and opportunity to reduce the consumption reduce the overall per-unit cost, making services struggle to make a business
of fossil fuel energy as well as their own rail freight competitive with diesel- case for electrification, partnering with
greenhouse gas emissions. powered lorries. This modal shift also renewable energy suppliers can increase
Given the critical link between energy reduces fuel costs and dependency as the viability of these projects. Railways,
and railways, there are significant well as avoiding the release of 144,000 if connected as open grids, can also
opportunities to mutually reinforce tonnes of CO₂. provide a source of renewable power to
decarbonisation by pursuing the greater As part of its commitment to sustainable residential and commercial buildings,
adoption of renewables while development, Italian State Railways (FS) potentially creating new sources of
expanding and modernising railways. is investing €1.6bn in an ambitious plan revenue for the sector.
Recently, REN21 and UIC, working to produce its own energy. FS will install Implementing such schemes requires
alongside other key transport partners, photovoltaic plants with a capacity of 2GW the coordination of different sectors and
published a white paper that explains across property assets such as stations, new actors, as well as new sources of
how to accelerate these transitions by railway workshops, warehouses, industrial finance. More ambitious national targets
integrating the planning of transport areas, and offices. The plants will produce and policies will be needed. And the
and energy demand. 2.6 TWh of electricity per year, meeting repurposing of international and
Since railways can provide predictable 40% of FS’ needs and eliminating national financing away from fossil fuel-
demand for electricity, the joint 800,000 tonnes of CO₂ emissions. based transport towards sustainable,
development of renewable electricity Railway electrification is a central low-carbon modes is fundamental.
and public transport infrastructure can component of India’s goal to reduce its
optimise investment in both sectors, dependence on fossil fuels and for
unlock economic sectors to justify Indian Railways (IR) to become the COP28
investment, and jointly accelerate largest green railway in the world. IR’s REN21 and UIC, in partnership with
renewable energy and transport network is now 91% electrified after a other transport actors, have moved this


rapid programme of upgrades. The forward at decisive global events such
railway is also actively connecting with as the COP28 summit, which took place
Various railways solar farms on adjacent land, taking a in December in Dubai and where
further step towards decarbonisation. REN21 and UIC shared exhibition
are now investing These examples emphasise that the space, aligning their advocacy work.
renewable energy and railway sectors Several important commitments were
and partnering with can be partners and joint funders of made during the global climate summit,
renewable energy projects. As allies, including a groundbreaking step in
renewable energy they can act as target-setters, planners co-initiating the joint call to action to
companies to install and standard-setters for renewables in double the share of energy-efficient and
transport. The purchasing power of fossil-free forms of land transport by
new or additional public transport can also drive demand 2030.
for generating renewable power directly This ambitious goal is aligned with
facilities. for the sector. There are capital global efforts to combat climate change
investment needs, but cost savings can and promote the development and
be achieved in an acceptable payback adoption of sustainable transport
transitions. For instance, increasing the period. Reducing the exposure to solutions. The initiative garnered
share of variable renewable electricity changes in the wholesale energy market endorsement from Chile, Colombia, and
such as solar and wind requires as well as supporting decarbonisation more than 60 multi-stakeholder
increased grid flexibility. Electrified strategies is another attraction. organisations and was featured in the
railways can offer the required Railway and public transport COP28 summary of transport day.
flexibility to the grid in the form of infrastructure can also act as the backbone The UAE Consensus, the output
predictable load management, demand- of energy grids through their well- document of COP 28, featured
side management, and battery storage. connected networks in cities, and between important commitments to triple
Various railways are now investing cities, industry and ports. Railway and renewables and double energy
and partnering with renewable energy public transport operators are typically efficiency. It also included a text on
companies to install new or additional major land and building owners so they transport, which for the first time
facilities, either on railway property or can use their property and infrastructure acknowledged the need to “accelerate
on neighbouring land. Many railways to co-locate renewable energy production the reduction of emissions from road
have also set ambitious targets for the and storage. This can lay the foundation transport on a range of pathways.”
self-generation of renewable energy to for renewable energy integration into The international community has the
supply power, both to stations and other transport modes such as private power to support and enable collective
railway infrastructure. electric vehicles, taxis, car sharing/ acceleration of energy and transport
The Ethio-Djibouti Railway is a great pooling or micro-mobility charging transition, and UIC and REN21 will
example of the multiple benefits brought infrastructure at stations. And in continue to advocate in favour of
by electrifying railway corridors in Africa. countries where access to clean and shifting traffic to rail, the most
Inaugurated in 2018, the fully-electrified reliable energy is limited, these networks sustainable mode of transport. IRJ
IRJ The Railway in 2024 7
Trends | transit

RATP Dev reveals strategy for global growth


The contract operating arm of Paris public transport operator RATP is getting back to basics at its core
business while actively pursuing metro automation projects around the world, as RATP Dev CEO Hiba Farès
explained to Robert Preston in Paris.

RATP Dev’s international operations portfolio includes the Florence light rail network.
Photo: Shutterstock/DiGiu

E
MERGING intact from the Covid- face-to-face contact with staff on the wider, external factors such as inflation
19 pandemic, RATP Dev suffered front line. “We are digitising very, very and the rise in energy prices, “we never
“a massive shock,” according to fast all our processes in order to hire in think for a second about having a
its CEO, Ms Hiba Farès. “Our profit and two days,” Farès says. “Before it used to lighter organisation and cutting the
loss is mostly about labour and energy, take two to six months. We have a middle management teams, the
we had all that inflation that hit us very, system called Digital Recruiter. With managers who are on the ground,
very badly,” she says. Coupled with two clicks, a future employee can talking to drivers, talking to
rising costs was an unprecedented register his or her interest and we can maintenance staff,” Farès says.
shortage of drivers and maintenance respond very quickly. This has been “Middle management had too many
staff in the major cities of developed deployed all over the globe, because Excel spreadsheets and was spending
countries, the like of which “we had we’re in 15 countries, so it was a big job less and less time in the field,” Farès
never seen in our industry before.” to roll out this system in all these believes. “Our digital strategy is all
“We had many challenges to tackle at languages.” about empowering them to be on the
the same time and I don’t think we’d Efforts to improve staff skills have ground more often and spending less
ever had such a concentration of seen new training centres opened in time on administrative tasks.” One
challenges before,” Farès says. “At Italy, where RATP Dev operates the example is a digital tool making it
RATP Dev we are now really tightly light rail network in Florence, in Saudi easier for drivers to swap their shifts at
focused on running our current Arabia where it will operate the short notice should a domestic crisis
business, running our current contracts, automated Riyadh Metro, and in Egypt, arise, for example. “We are deploying
which means how to cover inflation, where it operates and maintains Line 3 all these tools, techniques, new ways of
how to hire, how to train, how to retain. of the Cairo Metro. doing things, in order to leave time for
It is back to basics.” To retain staff, Farès sees focused real contact, real human interaction, real
Concentrating on the basics of day-to-day management as the key, sharing of knowledge, especially when
running an urban transport network, or ensuring that there are enough you first join a company,” Farès says.
a metro, commuter or light rail line, managers on the ground with time to RATP Dev also believes that diversity
does not mean that innovation is get out of the office for face-to-face has a major role to play in its future
neglected, and RATP Dev is looking to contact with frontline staff. Despite success, promoting public transport
digital tools to streamline its businesses constant pressure on costs, both from “very loudly” as a career for women
processes and free up managers for authorities awarding contracts and and adapting staffing rosters to suit a
8 IRJ The Railway in 2024
more diverse workforce. “We know that “We are in the middle of a very heavy RER lines A and B that it operates in
a lot of people won’t work from 05.00 to new phase where we are tackling all the Paris, is also put to use in the second
17.00 five days in a row, so we have to significant GoA4 projects that are strand of RATP Dev’s bidding strategy,
be more flexible about this,” Farès says. happening around the world,” Sinaceur focusing on what Sinaceur describes as
“We want to have a very diverse workforce. says. “It’s a huge wave. We have as many brownfield commuter projects. “They
So we are really very proactive about greenfield projects around the world in are complex in the breadth of work that
attracting women to be metro drivers, the next five years as we’ve had in the is involved,” he says. “If you have a
train drivers and maintenance personnel. past 10 to 15 years put together. There legacy network with varied rolling stock,
We’re doing it everywhere, whether we were times in the past where you would signalling technology and infrastructure
have a staff shortage or not.” have a new metro line every three to of differing ages, and you need to
“This whole industry used to operate four years. Today we have three to four integrate all that to create or maintain
on the premise that drivers would live bids at the same time.” seamless service and modernise it, then
always be found,” says Mr Mehdi Among future prospects, Farès notes again, you’ll find the typical kind of
Sinaceur, RATP Dev deputy CEO and the MetroLink project to build an 18.8km complexity that RATP Group is best at.”
executive vice-president for the driverless metro in Dublin, as well as
Americas, Asia-Pacific, UK and South planned new lines in Sydney and
Africa. “That is clearly no longer the Melbourne. “We are currently bidding Best practice
case. We have to make an effort to on two lines in Singapore,” she adds, Sinaceur is concise when describing
attract more young people.” Farès adds: working here with local partner RATP Dev’s role in disseminating best
“everybody is facing a shortage and so ComfortDelGro, which joined RATP Dev practice in the field of metro and commuter
we are all in competition. We should be and Alstom in the ORA Consortium to automation. “It’s very simple,” he says.
attractive to young people in terms of win the contract to operate Line 15 “We are the bridgehead of the RATP
flexibility, salary, working conditions, South of the GoA4 Grand Paris Express Group to disseminate this knowledge
the balance between personal and network. “Singapore is for me really internationally and in France,” taking as
professional life.” one of the best networks in the world, an example the Western Sydney Airport
so if we succeed in wining one or two Line. “We have 20 engineers on the
lines there, it’s going to be a major ground and more than half of them
Bidding strategy showcase for us,” Farès says. come from the heart of the RATP
Turning to how RATP Dev plans to Sinaceur points out that RATP Dev is Group. And in Paris, both at RATP Dev
grow its business, Sinaceur says that the often involved in the design of new- and within the RATP Group, we have
company is following a two-pronged build GoA4 metro projects from the 10 other people supporting the project.
approach, the first being to reinforce its outset, working with consortium Anything from station design to energy
established presence in France and the partners that may include architectural management, passenger information
United States by winning new contracts. practices, civil engineering contractors and rolling stock refurbishment, all of
“Our biggest target in France now is and suppliers of rolling stock, signalling the expertise of the RATP Group can be
Lyon,” says Farès, noting that the and other railway systems. “In order to called in.” As with Siemens in the case of
public transport authority of the operate well, you need to make sure Sydney, RATP Dev also has a very close
second-largest city after Paris is “very that the design is completely functional,” relationship with original equipment
serious” about introducing competition he says. Here, the company can draw on manufacturers, including Alstom and
by putting operating contracts out to the experience of its parent RATP Group. Hitachi. “The level of technical
tender. One will cover the bus network This knowledge, and RATP Group’s exchange is very high,” Sinaceur says.
and the other Lyon’s metro and light experience of upgrading the sections of In the reverse direction, experienced
rail lines, and Farès reports that RATP
Dev is tightly focused on bidding for


both. “What is really attractive for us is
that Lyon is trying to automate some
metro lines and is talking about rolling
stock renewal. They have extension Our digital strategy is
projects, so all the know-how of our
core business has a real live application all about empowering
there,” she says.
The knowledge and experience [our people] to be on
gained by RATP Group’s core business
in Paris, notably in building and the ground more often
operating the driverless metro Line 14 and spending less
and in converting lines 1 and 4 to
automatic operation, will be deployed time on administrative
in the second prong of its approach to
winning new business, which Sinaceur tasks.
describes as “a focused effort to tackle
all large and complex urban rail projects Hiba Fàres
all over the world.” One side to this is
targeting new metro lines being built
for operation at Grade of Automation 4
(GoA4).
IRJ The Railway in 2024 9
Trends | transit

tendered by the Pays de la Loire region


but was not successful. “We were


among the three competitors that were
shortlisted, but we weren’t selected,”
Farès reports. “This was our first bid
We have as many and so that is fully understandable.”
greenfield projects “What we see from the market is that
we have had five tenders so far in
around the world in France and only one has escaped from
the hands of the incumbent. The regions
the next five years as are getting there, but not very fast.”
With bidding representing a substantial
we’ve had in the past investment in time and money, Farès
says that RATP Dev is working with
10 to 15 years put regions preparing tenders to make them
together. understand that a full, open competition
requires a level playing field for the
Mehdi Sinaceur incumbent and potential new entrants,
especially when it comes to the time
allowed for contractors to mobilise and
have all the necessary resources in place
to operate the services in question.
“The incumbent doesn’t have a pre-
gained abroad should be put to good an indirect way of sharing know-how mobilisation period,” Farès points out.
use in Paris later this year when the city and experience.” “New entrants need to negotiate with
hosts the Olympic and Paralympic Should a project require expertise the unions and need time to recuit and
Games. RATP Dev is expecting to draw beyond RATP Dev’s core urban skillset, train drivers. In Germany, this was the
on its experience of crowd management such as High Frequency Rail (HFR) to biggest problem for new entrants. DB
for major events as the operator of the provide more intensive passenger had all the drivers and the others were
metro and light rail networks in Doha. services between the major cities of struggling to find drivers.” Some
Over 18 million football fans used these eastern Canada, RATP is willing to join contribution to bidding costs would
services when Qatar hosted the Fifa with more qualified partners. While also indicate how serious the region was
World Cup in 2022, with a record RATP Dev could provide expertise in about market opening. “In many countries,
860,000 passengers carried in just one aspects of this project such as shorter- in order to attract competition, you pay
day. A team of 70 specialists was distance services, better connections part of the bidding costs,” Farès says.
deployed from RATP Group to help with other modes, station management, “This would show us if the region is
with crowd management and managing ticketing and customer service, it will fully prepared for opening up to
the network as traffic grew to 10 times be looking to its consortium partners competition, or if they are using other
its normal level. Renfe Operadora and FirstGroup to players in order to renegotiate the price
“These people will now bring what contribute their experience of operating with the incumbent.”
they’ve seen in Qatar to Paris,” says mainline or high-speed services and Forthcoming tenders are expected
Farès, noting the exceptional nature of maintaining rolling stock for long- from regions such as Bourgogne,
the 2022 World Cup with all eight distance duties. “We’re not going in Franche-Comté and Normandie, Farès
stadia located in the same city. “In the alone,” Sinaceur says. “We have a very reports. “If the bids we are now seeing,
early stages of the competition you had full team that represents the range of that we are discussing with the regions,
four matches a day,” she notes. “The skills that are going to be needed. if they are only about operation and
connection from the station to the Everyone will do what they’re best at.” maintenance, I don’t think we would
stadium is the critical part.” RATP Dev need partners, or only to train drivers,”
worked closely with its client, Qatar she says. “We don’t have a fixed
Rail, as well as the stadium operators French regional market consortium with whom we bid, if it’s
and the police to plan every detail of Closer to home and to RATP Dev’s only for a PSO contract then it’s our
the operation, such as providing big core expertise are the contracts now normal job.” Partners would be sought
screens to keep fans entertained as they being tendered to operate TER regional from the civil engineering sector if the
waited to board trains. services that up until now have been tender had a major infrastructure
Sharing best practice is not limited to the exclusive preserve of French element, such as the contract awarded
specific projects or a particular National Railways (SNCF). by the Grand Est region to a consortium
discipline, and the movement of staff “The French market is starting very, of Transdev and NGE, covering
between domestic and international very slowly to open up to competition,” infrastructure management and operations
assignments ensures that RATP Dev has Farès says. “We are ready to be a new on the 60km Nancy - Contrexéville line
a wide and varied pool of knowledge to operator of TER services in France, but which has been closed since 2016.
draw on. “We’re always sharing, we we are starting to look at every region, “We don’t need to add complexity where
always keep learning from one their policies and tenders, with a lot of we don’t need it,” Farès says. “But when
another,” Farès says. “All the people willingness to be part of this adventure we need the right partners that could bring
who will have careers in Paris and then but also prudence.” RATP Dev value to our client or to the end customer,
abroad, or abroad and then in Paris, it’s submitted a full bid for a contract we’re really happy to do it.” IRJ
10 IRJ The Railway in 2024
Trends | regional rail

Regional railways enter a new paradigm


Increasing congestion in the heart of major cities is prompting population shift towards surrounding suburban
and regional areas, raising challenges for transport operators and authorities. The rail industry is embracing new
technology to rise to the challenge, as David Burroughs discovers.

R
EGIONAL railways are currently counterpart of the Paris metro in the the outer eastern suburbs.
experiencing something of a city centre with fewer stops. Work on a similar project is underway
renaissance. “Regional services Across the English Channel, London’s in Delhi with the construction of the
tended to be something in between new Elizabeth Line is providing Regional Rapid Transit System (RRTS)
urban, suburban, and long-distance but connections between the suburbs and project across the National Capital
no one really cared about them,” says city centre. The 21km central section Region (NCR). The initial 17km section
Catalonia Government Railways (FGC) between Paddington and Abbey Wood with five stations between Sahibabad
director of strategic and prospective opened in May 2022, and six months and Duhai depot opened in October
planning, Mr Carles Casas Esplugas. later began carrying through services and construction is continuing on the
“Now they are gaining a place of their running right across the capital from 25km section between Muradnagar and
own.” Reading or Heathrow Airport in the Meerut South, with four stations, which
Casas Esplugas was speaking during west to Abbey Wood in the southeast, is due to open in the next six months.
a panel session at the International and from Paddington to Shenfield in The complete 82km Delhi - Ghaziabad -
Association of Public Transport’s

Photo: Shutterstock/Pradeep Gaurs


(UITP) World Congress in Barcelona,
entitled Connecting Cities to their
Hinterland: The Evolution of Regional
and Suburban Railways. The panel was
chaired by Ms Vanessa Perez, a senior
advisor at the International Union of
Railways (UIC), and also included
Alstom chairman and CEO, Mr Henri
Poupart-Lafarge; Delhi National Capital
Region Transport Corporation (NCRTC)
managing director, Mr Vinay Kumar
Singh; and Keolis North America
president and CEO, Mr David Scorey.
Scorey agrees with Casas Esplugas’
assessment, saying that there was
considerable doubt over the future of
public transport two years ago when
Covid-19 lockdowns decimated traffic
and balance sheets. However, he says
the pandemic has been “a great
disrupter in terms of the way that we
travel,” actually creating growing
momentum for regional rail.

Reduce emissions
Cities are also looking to reduce their
CO₂ emissions from transport which,
Poupart-Lafarge says, are caused in large
part by journeys from the surrounding
region into the city centre. “If you want
to address the CO₂ emissions, you need to
address some of the regional trips,” he
says.
There are already examples of railways
serving this regional market around the
world.
Paris has long been famed for its
Regional Express Network (RER), which
acts as a combined city-centre underground
rail system and suburbs-to-city-centre
commuter rail. It also acts as a faster The Regional Rapid Transit System is set to revolutionise transport in the wider Delhi region.

IRJ The Railway in 2024 11


Trends | regional rail

those travelling longer distances.


Scorey says the introduction of more
modern rolling stock also has implications
for how trains are operated. In Boston,
where Keolis North America has the
contract to operate Massachusetts Bay
Transportation Authority’s (MBTA) 14
commuter rail lines, trains had previously
been equipped with manually operated
doors, which require onboard staff to
support passengers to board and alight.
However, the introduction of new trains
with power-operated doors has
removed the need for these staff.
“We need to think about the change
management too so that we can use the
resources that have been freed up from
introducing this more modern
technology to deliver better customer
service, better end-to-end journeys and
to create a better experience for
Photo: Shutterstock/Pack-Shot
passengers,” Scorey says.
France is seeking to extend the Paris RER concept to other cities to boost rail ridership. Poupart-Lafarge foresees changes to
the traction used on lower-density routes
Meerut corridor will open in 2025. We have to work together within the where electrification is not economically
The project is being implemented by industry to be able to commercialise an feasible, with hydrogen and battery
NCRTC, a joint venture between the attractive offer and attract customers to seen as the solutions of the future.
Indian government and the states of the services to make them a reality.” There can also be challenges with the
Delhi, Haryana, Rajasthan and Uttar Organising a cross-border train is just signalling, as the systems used for
Pradesh. one of the many barriers facing operators regional and urban networks can often
“The objective of these corridors is to and infrastructure managers considering be different, making interoperability
open up new centres of economic the introduction of regional services. difficult.
activity around the national capital,” Another is the specialist multi-purpose
Singh says. “At present a lot of


rolling stock required. Metro or light
economic activity is centred on New rail trains are designed to carry a higher
Delhi. With these corridors, there will density of passengers, allowing quick
be decentralisation of the economic boarding and alighting. In contrast,
We need more
activity which will lead to the long-term long-distance trains are often designed
decongestion of Delhi. There will be
versatile types of
to seat more passengers, so they are
reverse migration, if we can call it that.” comfortable for journeys that take several rolling stock able to
hours, with passengers having access to
amenities such as toilets, tables and serve less dense areas
Examples charging stations. These trains and those
There are many more examples operating between city centres and airports in an economical and
around the world where a regional also often have additional space to store
system could be developed but has yet bulky luggage. However, trains that an environmentally
to be implemented. support both a metro-style service
Casas Esplugas highlights the route
friendly way.
within a city as well as a regional service
between Barcelona, Spain, and on the outskirts must be designed to Henri Poupart-Lafarge
Toulouse, France, as an example of meet all of these needs and more.
where a regional stopping service could “We have these two extreme
bring real benefit. The cities could be challenges: on the one hand, we have to
connected by rail in only three hours, be able to have as many trains as One of the biggest challenges faced
and there is enough demand between possible on one corridor to saturate the by the Crossrail team building London’s
them that Spanish low-cost airline infrastructure,” Poupart-Lafarge says. new Elizabeth Line was the integration
Vueling introduced a tri-weekly service “On the other hand, we need more of ETCS on the regional lines and CBTC
on the 250km route on July 1. versatile types of rolling stock able to on the inner-city sections, alongside the
“We’re not exactly going in the right serve less dense areas in an economical legacy TPWS and AWS signalling systems,
direction when we see airline and an environmentally-friendly way.” with automatic changeover between the
companies starting new services on Manufacturers are already developing systems at the appropriate point.
routes that take three hours [by train],” these trains, which may have large The increased adoption of automatic
he says. “On the commercial side, there vestibules by the doors for passengers train operation (ATO) is also in turn
are obviously complex challenges to to stand in when travelling short leading to the installation of platform
introduce a cross-border service, low distances in the city, but also feature screen doors at more suburban and
demand and very specific needs. seating in the middle of the car for regional stations to match the inner-city
12 IRJ xxxxx 2016 IRJ The Railway in 2024
stations, improving passenger safety. India or anywhere else around the world,” In lower-density rural areas, rail
New signalling technology can also Singh says. “The use of technology or the operators can coordinate with other modes
enable higher service frequencies and digitalisation of project implementation such as bus companies to provide last-
shorter headways, providing higher as well as the operating systems is mile services, or to cover periods during
capacity where needed. This is something which is very much required the day when demand is lower. This
especially true on Delhi’s new RRTS for this kind of advanced system.” approach has been used by FGC on a
lines, where metro trains will operate Technology is also changing how low-demand line in the west of Catalonia.
alongside mainline trains on the Meerut passengers plan their journey and use “We publish a coordinated schedule
section of the first RRTS. rail services, and Scorey says a key focus with the bus system, so we’re no longer
As the three priority corridors needs to be on how operators can use it competing,” Casas Esplugas says. “We
converge at Sarai Kale Khan station in to improve the passenger experience. try to keep the train running on the
New Delhi, NCRTC is enabling Delhi is introducing an automated busiest hours and complement it with
interoperability by installing hybrid ETCS fare collection system based on two some feeder buses which are coordinated.
Level 3 signalling. This combines the types of fare, which can determine So it’s full corridor transport provision,
latest ETCS standards with ATO over whether a passenger has boarded the not just a single mode vision that we’re
LTE radio, which NCRTC says is the train in standard or business class. trying to provide.”
first of its kind in the world. Platform In Barcelona, consultation with Ultimately, however, it is important
screen doors are also being installed. associations representing passengers with to be flexible and adapt as different
The construction of the lines is also reduced mobility, such as the visually technologies reach maturity.
being digitalised. For example, the use impaired, has resulted in accessibility “Everything has to be flexible and able
of a common data environment and enhancements to ensure these to evolve because we have a wish list but
building information modelling (BIM) passengers can easily travel by train. we don’t have a crystal ball to see what’s
across the project is boosting “If rail wants to play this main role as really going to happen,” Casas Esplugas
collaboration between contractors. The being the backbone of the transport says. “Some technologies seem to be very
project is also benefitting from the use network, it has to welcome everybody close and they take a long time to really
of UAV drone technology and artificial and we need to think about be implemented, others seem very far
intelligence (AI). technologies which will help everybody away and suddenly they are accelerated.
“We are using a lot of advanced to be comfortable inside the train as It’s always a bit of a theoretical exercise
technology, which has not been used in well,” Poupart-Lafarge says. that is not always easy to do.” IRJ

IRJ XXXXX
The Railway 13
2016 in 2024 13
Trends | heavy-haul freight

The 2030 vision for heavy haul


As the fourth industrial revolution digitises systems and processes, the heavy-haul sector has set out in the
International Heavy Haul Association’s (IHHA) Heavy Haul Vision 2030 how it can capitalise on new
opportunities while minimising the potential downsides. David Burroughs considers the IHHA report.

“T
RACK has a memory,” says worked for Transnet, South Africa. which again explored the implications
Mr Brian Monakali, chairman The heavy-haul sector has already of Rail 4.0.
of the International Heavy made major improvements over the In the lead up to the Narvik conference,
Haul Association’s (IHHA) strategy past four decades, pioneering IHHA held a strategy workshop in Luleå,
committee. “Track will never forget developments and implementing Sweden, to consider its vision for
what you’ve done to it. If you neglect to cutting-edge technologies and innovations heavy-haul in 2030. Those attending
do maintenance, you postpone the that have improved safety, operational expected heavy-haul-railways to deal
maintenance, you cut the budget for efficiency and customer experience. with higher tonnages in the future by
maintenance, it will remind you many These include moving bulk commodities unlocking capacity through the use of
years later what you did and when it such as coal and iron ore in longer and virtual moving block signalling, aided
reminds you, it is very, very bad.” heavier trains using distributed power; by communications-based train control
Monakali was speaking during the stricter maintenance and operating (CBTC). They foresaw trains running
opening ceremony of the IHHA 2023 practices; advanced safety management autonomously at tighter headways,
conference in Rio de Janeiro, launching systems such as rail stress management; dispatched and guided by computers
the association’s Heavy Haul Vision 2030 electronically-controlled pneumatic analysing considerable amounts of data
(HHV2030), which outlines the challenges (ECP) braking; and better management in real time. Track and rolling stock
and opportunities that the fourth of the wheel-rail interface. inspection would be performed by
industrial revolution will present for the The study resulting in HHV2030 was onboard and wayside sensors feeding
heavy-haul sector in the coming years. launched following the IHHA conference artificial intelligence (AI) algorithms
“We are here today to launch the in Cape Town in 2017, when a benchmark capable of identifying trends in equipment
Vision 2030 so that we don’t get reminded survey found that respondents expected conditions that would enable predictive
by the railway line in years to come that the approaching fourth industrial and condition-based maintenance.
you never thought about the future,” revolution to be characterised by the This would result in higher tonnage
says Monakali, who is also IHHA vice- adoption of cloud computing, 3D throughput on existing infrastructure,
chairman, and director of energy and printing, big data and the Internet of reducing longer-term capital requirements.
logistics strategy at Australian mining Things (IoT). This was followed by the The heavy-haul Railway of the Future is
company South32. He previously 2019 IHHA conference in Narvik, Norway, seen as a digitally-driven lean production

Recent advances in technology have enabled heavy-haul railways


to operate longer and heavier trains. Photo: David Gubler

14
line that is fully integrated with the capabilities and the development of the who owns it, who controls it, and how
commodity supply chain and its needs, IoT network. Predictive preventive it comes together.” Managers must also
with trains operated on demand in pre- maintenance algorithms would be think about protocols and processes for
planned paths. further developed. when failure occurs.
This is an ambitious vision that will Five to 10 years into the conversion to To support the management and
require significant work to be successfully the digital railway, digitised network operation of autonomous technologies,
implemented, but one that the HHV2030 control should be integrated with information systems will need to be
study says is achievable. “The Railway signalling to leverage algorithms that robust and fail-safe. They will also need
of the Future was not seen as an abstract optimise performance and throughput to progressively integrate legacy
concept as many railways and suppliers capacity. This would be further developed applications and new technology within
are already actively on this trajectory,” 10 years into the future through AI a holistic computing architecture that
the study says. “Railways will need to learning on traffic-flow optimisation. includes data warehousing.
profoundly change to remain viable in The potential for cyber attacks has
the fourth industrial revolution. But risen, which can cause traffic disruption,
conversion to automated operation and Data and information degraded operation and even safety
computer-controlled traffic flows could A major requirement will be the risks. The challenge here is to create a
well spell a rail renaissance.” collection of ever-increasing amounts of culture of awareness and defence
So how can this be achieved? The data to allow the creation of algorithms measures similar to the way that safety
study sets out a timeline that railways to spot patterns and predict emerging culture has been cultivated. An
should follow, although it is dependent situations. Research into technology industry-wide approach is needed to
on the corresponding advancement of able to transfer high volumes of data develop robust autonomous systems
technology. over long distances, as well as large and recovery strategies, facilitated by
Within the first two years, heavy-haul storage capacity, will be necessary, to stronger institutions driving collaboration,
railways should concentrate on allow real-time information to be standardisation and productivity
modernising their core systems to processed and transmitted. improvements across the industry.
improve resource and asset scheduling. Government action to encourage The adoption of CBTC and positive
This would involve standardisation, research, technology development and train control (PTC) has also forced
modularisation and integration with asset investment needs to be guaranteed, railways to take a fresh look at their
supply chain partners. alongside investment in electricity data management architecture, and the
Two to five years out, train operation generation infrastructure in order to need for assets to be precisely located
should be incrementally automated to provide a large volume at low cost. and identified, and for all train data to
improve efficiency and reduce cost. Loading, unloading, holding and align consistently across cross-
Automation would be paced to align marshalling yards need to be highly functional databases, has helped to
with organisational and technological efficient to ensure that occupancy follows break down some data silos.
maturity, including communications a rhythmic and consistent pattern, and Freight tonnages are expected to rise
that track capacity is maximised. around the world in the coming decade,
Finally, for trains to increase in size, and new construction alone is unlikely
their component materials must have to provide the additional capacity
consistently high load capacity, strength needed. Railways will instead need to
and durability. This will require deploy efficiency levers more than
research in fields such as materials as usual. Optimisation and density will be
well as electrical, civil and mechanical key, achieved through a combination of
engineering, increasing the load linear density, axleload, train speed and
capacity of both track and trains. network stability improvements.
Not all of this can be achieved at The study says that heavy-haul
once, and the study says railways must railways have in the past concentrated
focus on their key assets, resource their research on increasing capacity
optimisation and asset management. through running longer, heavier and
Industry leaders will need to manage more reliable trains, which has resulted
the transition to the autonomous in large trains with high axleloads and
railway, deciding which aspects of good reliability, but with low commercial
operations to target, developing and speeds. However, the study points out
deploying the necessary roadmaps, and that passenger and conventional rail
perhaps most critically, seeking to freight operators have increased capacity
secure the staff and resources required. by focusing on increasing average speed
The study says that not all of the wins and using technology to operate trains
from technology will be immediately at shorter headways, which would
obvious, and railways must aim to require a significant improvement in
achieve a state of “ongoing braking technology to be replicated in
development and direction,” more akin heavy-haul railways.
to a software supplier constantly “Railway braking systems are a current
evolving a product rather than constraint and a future opportunity for
delivering a single major construction much bigger and faster trains,” the
project. Heavy-haul railways are also study says.
encouraged to “pay attention to data - The improvement of communication
15
Trends | heavy-haul freight

service from rail freight operators. This


includes updates via messenger services
such as WhatsApp, and access to real-
time information via a range of different
mobile touchpoints.
The study says the challenge begins
with considering the customer, not the
organisation, as the centre of the exercise.
This requires a vision of customer
experience based on mobilising, organising
and committing all employees on a top-
down basis to customer needs.
There will also be the need to shape
customer interactions into different
sequences by digitising processes and
getting different channels to interact with
one another. This is especially true for
large, established organisations that have
not integrated operational silos across
Rio Tinto pioneered automated operation in the Pilbara region of Western Australia. Many other heavy-haul railways
sales, maintenance, and operations.
are looking to replicate its success. Photo: Shutterstock/RaGS2

systems will also allow trains with everyday operation. This will require a
increasingly distributed traction and willingness to change and improve and Future expectations
will also increase the collection and will require collaboration between rail When all this has been achieved,
exchange of information between the operators and research institutions, there will still be room for
trains themselves, ensuring safety and vendors and regulators. improvement, and the study concludes
reducing headways to ensure optimal Many significant advances in safety by considering what the railway may
operation. As the number of stops have been delivered with proven look like in the long term. It is hoped
decrease, average speed will also technology, so the challenge now is operation will be optimised using
progressively increase, further increasing the rate of upgrades and blockchain to ensure safety, while the
increasing capacity. technology adoption across the heavy- evolution of data and processing
Heavy-haul railways have seen a haul rail industry globally. Full train systems will allow trains to make
steady year-on-year decline in the total automation to remove the need for drivers decisions well in advance based on the
number of derailments they experience and the use of safety integrity level entire ecosystem that surrounds the
in spite of the increasing tonnages (SIL)-rated safety controls to manage train. Integrated operations centres will
carried, and the study says this has current human decision-making on become increasingly common, even
been driven in part by significant signalling and train movements is now though trains will make many decisions
improvements in rolling stock and track proven technology that could be onboard using embedded AI algorithms.
condition monitoring. adopted across the industry. Wagons are expected to be larger,
However, the rate of derailments due A major factor in achieving this shift more aerodynamic, lighter and made
to human factors has plateaued over the is caring for and manging staff through from more efficient materials, allowing
past decade. While digital technologies the transition. New skills and an increase in train speed, a smoother
and automation are increasing the experience will be needed, analytics and ride and, consequently, bigger trains.
amount of available data and analysis practical knowledge will need to merge, The locomotives of the future will be
that is undertaken, it also increases the and the human-machine interfaces will mostly electric, with diesel-electric
complexity and cognitive workload of need to be understood by employees. locomotives with ac drives or
operating a train or railway. The study says that managers and locomotives powered by LNG gas
To combat this, the digital railway supervisors will need to change from turbines replacing the few remaining
may require changing skillsets at the “doing work” to “managing exceptions” diesel-electric locomotives with dc
same time as the workforce may be and “managing assets”, overseeing traction motors. This will enable the
ageing. The study says it must be decision-support systems and predictive locomotive fleet to tackle steeper
considered whether additional safety modelling. They will have to occasionally gradients and haul longer trains while
technologies are simplifying and intervene in automated processes to providing better energy efficiency.
replacing safety controls, or adding manage exceptions, and then undertake Trains will be hauled mostly using
new, additional layers of confusion. recovery to restore automated processes. distributed traction, but with increased
To manage this, the rail industry needs The supply chain will be integrated, and distance between locomotives while
to move away from soft administrative people will be expected to work as teams computers will manage communications
controls such as procedures and rules overseeing cross-functional information. and shocks within the train as well as
and to invest in the research and The way customer service is provided forces acting on the rail.
development necessary to engineer, for everyday consumers is changing, for This is an optimistic scenario, and one
automate, and eliminate exposure to risk, example with the ability to order goods that will take a great deal of work to
designing for safety under a systems for next-day delivery and to track the achieve. But first, the heavy-haul
approach. shipment to your front door. The study railways of the world must implement
Functional safety and complex control says industrial customers are now their ambitious, but achievable, Vision
systems engineering will be critical to starting to demand a similar level of 2030. IRJ
16 IRJ The Railway in 2024
The Railway in 2024 - Europe

Projects to watch in 2024 CPK project


Country: Poland
Lisbon - Porto high-speed Type: High-speed
Construction Start: 2023
Country: Portugal
Completion (first section): 2027
Type: High-speed
Length: 2000km
Construction start: 2024
Completion: 2030
Central Communication Port (CPK) is
taking forward the infrastructure
The Portuguese government is planning to let a series of public-private partnership
programme centred on a new airport
contracts for the first section of the Lisbon - Porto high-speed line with the first
between Warsaw and Łódź, including
expected to be launched this month. The first stage of the high-speed line is divided
12 new high-speed lines totalling 2000km
into three sections: Porto - Oiã, Oiã - Soure and Soure - Carregado. Each will be
and the modernisation of 3700km of
built under a separate PPP, and the Oiã - Soure contract is expected to be let in the
existing lines. The first high-speed line
first half of this year. The Soure - Carregado contract is expected in two or three
runs for 140km from Warsaw to Łódź
years. A concession contract for design, construction, maintenance, and financing
via the new airport. The first design
will be signed for each of the PPPs. At an estimated cost of €4.5bn, the Lisbon -
contract for the route from Warsaw to
Porto broad-gauge high-speed line will connect the two cities in 1h 15min, also
the transport hub at the new airport
serving Leiria, Coimbra, Aveiro, and Vila Nova de Gaia. Construction work on the
has been awarded to the Biuro
143km Porto - Soure section is scheduled to be undertaken between 2024 and 2028,
Projektów Metroprojekt consortium and
while the Soure - Carregado section will be built between 2026 and 2030.
Sud Architekt Polska. Design of the
remaining section to Łódź has been
Turin - Lyon high-speed awarded to a consortium of Egis Poland,
Country: Italy/France Egis Rail and Jaf-Geotechnika.
Type: High-speed Preparatory work on the Warsaw - Łódź
Construction Start: 2018 high-speed line started at the end of
Completion: 2030 2023, which will be followed by main
Length: 270km works in 2024. The airport and this line
Cost: $US 27bn are scheduled to open at the end of 2027.
The Turin - Lyon freight and passenger railway, of which 70% is in France and 30%
is in Italy, is divided into three sections. Construction of the €8.6bn 65km cross- Dart+ West
border section of the new line is underway from Susa to Saint-Jean-de-Maurienne, Country: Ireland
of which 57.5km consists of the Mont Cenis base tunnel. The Franco-Italian Type: Commuter rail
company Tunnel Euralpin Lyon Turin (Telt) is responsible for this section. Italian Construction Start: 2025
Rail Network (RFI) is responsible for the Italian part from Bussoleno in the Susa Completion: 2028
Valley to Turin, while French National Railways (SNCF) is leading the French Length: 40km
section from Saint-Jean-de-Maurienne to Lyon. Construction of these two sections, Cost: €1.75bn
which have another 104.5km of tunnels, is well underway. Around 80% of the
capacity of the line will be used by freight trains. The Dart+ West project involves the
electrification at 1.5kV dc of 40km of
existing railway from Dublin Connolly
and a new station at Spencer Dock to
Maynooth, plus the branch from
Clonsilla to M3 Parkway, in order to
operate 12 trains per hour and carry up
to 14,000 passengers per hour in each
direction. Work will also include the
Transpennine abolition of six level crossings and the
route upgrade construction of a new EMU
maintenance depot west of Maynooth.
Country: Britain
Type: Upgrading This route will be the first to be
Credit: Network Rail

Construction Start: 2023 upgraded under the Dart+ Programme,


Completion: 2041 which Irish Rail (IÉ) is undertaking to
Length: 121.6km extend the length of the Dublin Area
Cost: £11.5bn Rapid Transit (Dart) commuter network
from 50km to 150km. Subsequent
The Transpennine route upgrade project involves electrifying and increasing the phases will see electrification of the
capacity of the main line linking Manchester, Huddersfield, Bradford, Leeds and lines from Dublin Heuston to
York. The line has 9.6km of tunnels, numerous bridges and viaducts and 29 level Hazelhatch & Celbridge, and from
crossings. The project now includes building a new through station in Bradford. Malahide to Drogheda, as well as
Last month the government announced £3.9bn in funding to accelerate the project providing double track between Bray
to build Bradford’s new station and purchase 29 electric trains. and Greystones.

IRJ The Railway in 2024 17


Europe | open access

Europe’s passenger market enters dynamic new phase


With public service obligation (PSO) contracts no longer the subject of direct awards, open access is thriving in
Europe, as Keith Fender reports.

T
HE European passenger rail initial long-term arrangements have Denmark, the remaining business
market appears in fine health been agreed between governments and bought by I Squared enjoys access to
this year, as new open-access state-owned railways in recent years, multiple markets and is now free of the
services prepare for launch and many effectively delaying the date for constraints that prevented it from
operators continue the development of tendering. In some cases where such competing with its parent DB, offering
new routes. arrangements are planned but contracts the potential to expand into Germany
The landscape for public service have not yet started, such as in the and challenge the dominant operator.
obligation (PSO) services is also Netherlands, the European Commission Italian national operator Trenitalia
changing, with many contract operators (EC) is already taking enforcement action. was already active in the regional
changing ownership and direct awards Multiple operators could soon be active market in Germany via its Netinera
- which have benefitted state-owned in most countries in this open market, group of companies, which has its
incumbents - no longer possible since although some smaller countries are origins in the German part of Arriva,
the end of 2023. likely to tender operation of the entire divested by DB when it bought the
Active in the market are established network as a single contract. company. British transport group
national or regional operators, normally This potential new market opportunity
state-owned, alongside other transport has led many new investors to acquire


groups. Some of the latter are privately existing contract operators and, in some
owned, often by infrastructure cases, has seen state-owned companies
investment businesses, and others invest in both open-access and contract Multiple operators
wholly or partly owned by national operators. This offers Europe’s national
operators from other countries. railways scope to expand or, as they could soon be active in
face competition in their home markets,
maintain revenue and learn how to
most countries in this
Contract operation
The Fourth Railway Package aims to
operate more effectively in an environment open market.
where tendering is the norm.
create an open market for the operation During 2023 German Rail (DB)
of regional services across the European announced it was selling its Arriva
Union (EU), requiring all services business to US investor I Squared. Arriva
supported with PSO funds to be started life as a bus company in Britain Go-Ahead announced in late 2023 that
tendered, other than in certain specific and expanded into rail in Britain and it will sell its German businesses to
situations defined in law. For many EU Germany before being bought by DB in Austrian Federal Railways (ÖBB), and
countries this means all services will be 2010. Whilst DB had already sold some the transaction is likely to be completed
tendered in the next decade even if Arriva rail companies in Sweden and early this year. ÖBB has told local media
it intends to use the new acquisition to
grow its presence in the German market.
Go-Ahead retains a passenger operating
business in Norway and this may be sold
in 2024, as like the German business, it
no longer fits with the company’s
strategic direction. Go-Ahead itself was
bought by a consortium of Australian
firm Kinetic and Spanish transport
investor Globalvia in 2022.
Spanish national operator Renfe
acquired a 50% stake in Czech private
operator Leo Express in 2021, and now
plans to expand both its open-access
and contract business. Leo Express has
announced plans for service expansion
from December 2024. The company
began operation of its first PSO contract
outside the Czech Republic, where it
has had such contracts since 2019, in
Slovakia in December 2023.
In France private company Transdev
is mobilising for its contract to operate
regional services between Marseille and
RegioJet is planning a significant expansion of its services over the next few years. Photo: Keith Fender Nice for the Sud (Provence-Alpes-Côte

18 IRJ The Railway in 2024


d’Azur) region from 2025. This is the year. Further services to Munich and majority owner. The deal should be
first PSO contract in France to be Copenhagen are planned from 2025. completed early this year. MSC is also a
awarded to any company other than Fellow Dutch company European major cruise ship operator sailing from
French National Railways (SNCF). Sleeper plans to extend its overnight Italian ports and the owner of several
However, not all expansion into Brussels/Amsterdam - Berlin service, rail freight companies.
contracted services is plain sailing, as which launched in 2023, south to Plans by start-up Le Train, backed by
Netherlands Railways (NS) subsidiary Dresden and the Czech capital Prague a variety of mainly French investors, to
Abellio discovered in Germany in 2021 from March. operate high-speed services in France
when financial problems led it to Overnight rail services between were announced in early 2023. Le Train
withdraw from almost every contract it Scandinavia and the rest of Europe have has signed a contract with Spanish
held. In Sweden, Hong Kong-based improved significantly in recent years manufacturer Talgo for the supply of 10
MTR will cease operation of suburban with wholly commercial services Avril high-speed trains and plans to
services around Stockholm in March, operated by Swedish company start services in 2025.
having negotiated an exit from its Snälltåget, which is owned by Trenitalia is a key shareholder in Ilsa,
contract in late 2023. National operator SJ Transdev, and other services part- along with Globalvia and airline Air
has agreed an interim contract to take funded by the Swedish government, Nostrum, which has been operating in
over operation. operated on a contract basis by national Spain under the Iryo brand since 2022.
The number of open-access operators operator SJ on the route between The Italian state operator has applied
is increasing, with many announcing Stockholm/Copenhagen and Hamburg/ through its Dutch subsidiary QBuzz for
plans to introduce new services this Berlin. In France, domestic overnight paths to operate a new high-speed
year and over the next few years, trains funded via the PSO arrangements service from Amsterdam via Utrecht to
sometimes competing with one another. for long-distance SNCF services are being Cologne and Frankfurt from 2027,
Established Czech operator RegioJet is increased, using recently refurbished competing with the existing DB-NS
planning a new overnight service rolling stock. A Paris - Aurillac service International ICE service.
linking Przemysl on the border between was introduced in December 2023. High-speed services to London
Poland and Ukraine with Hannover in The main player in the European through the Channel Tunnel (p20) are also
central Germany. They are due to start overnight market remains ÖBB, which attracting the interest of new operators
in March alongside a new daytime operates its Nightjet-branded network looking to challenge Eurostar, which
service from Prague to Berlin. in conjunction with other national has enjoyed a monopoly on this route
Service frequencies on existing operators. The network was expanded since 1994.
RegioJet routes from Prague to Slovakia, in December 2023 with direct trains In 2023 several companies announced
Austria and Hungary will also increase from Berlin to both Paris and Brussels, plans to introduce services, including
during 2024, and a new service from while ÖBB has begun to introduce 33 Spanish company Evolyn which intends
Prague to Mukachevo in Ukraine via purpose-built Nightjet trains to to operate between London and Paris
Čierna nad Tisou in Slovakia is also progressively replace older coaches on with a new fleet supplied by Alstom,
planned, operated in Ukraine by some routes. although the manufacturer says that no
Ukrainian Railways (UZ). firm contract has yet been placed. Dutch
RegioJet is also a significant contract start-up Heurotrain also announced
operator in the Czech Republic and this High-speed market plans to compete with airlines as well as
will expand in late 2026 when it begins Open-access competition for high- Eurostar on the Amsterdam - London
operation of a major new regional speed traffic is well established in Italy route. Heurotrain has applied to the
contract around the northern city of and Spain, with Trenitalia competing Dutch rail regulator ACM to introduce
Ústí nad Labem. with SNCF on the Paris - Lyon line in 16 trains a day on the Amsterdam -
Other major open-access operators France. This year should see more Paris route and 15 a day between
include Flixtrain, which is owned by competition as plans for future Amsterdam and London from
German and American-based investors expansion progress. December 2027.
and has announced plans to expand its Competition in Spain expanded According to reports in the British
network in Germany and also applied significantly during 2023, with Renfe, media, Virgin Group has also been
for paths in the Netherlands. RDC Iryo and SNCF now going head-to- looking at entering the cross-Channel
Deutschland, the wholly-owned head, and this year will see more new market, although the company has not
subsidiary of Pittsburgh-based Railroad services and routes. Renfe is planning confirmed this. IRJ also understands
Development Corporation (RDC), runs to introduce the first of its Talgo class that another British-based group is also
seasonal long-distance trains in 106 Avril high-speed trains in 2024 to exploring options to run cross-Channel
Germany on an open-access basis as operate both AVE and low-cost Avlo services.
well as trains carrying road vehicles and services. Infrastructure manager Adif is European national operators which
their passengers to the island of Sylt. planning to invite new operators to have publicly announced their interest
The company has also become an introduce on-rail competition to routes in serving London include Renfe in 2021,
important supplier of rolling stock and north of Madrid, in addition to the Swiss Federal Railways (SBB) in late
traction to other operators, in particular existing competitively operated services 2023 and Trenitalia, which has included
those operating overnight services. to Barcelona, Valencia, Malaga, Alicante Paris - London on its published future
New Dutch operator GoVolta, a and Seville. Iryo network map. DB previously
subsidiary of established tour operator In Italy shipping line MSC has announced plans to operate from
Flywise, is planning to offer daily announced plans to buy a 50% stake in Frankfurt to London, but abandoned
services from Amsterdam to Berlin from Europe’s first open-access high-speed the project due to operational
May, and also to Paris and Basel this operator, Italo-NTV, from its American difficulties and the high cost. IRJ
IRJ The Railway in 2024 19
Europe | Channel Tunnel

Getlink unveils strategy to boost Channel Tunnel traffic


Robert Preston reports on how the operator of the Channel Tunnel is working to bring more through traffic to
fixed link between Britain and mainland Europe.

Photo: Getlink
Getlink is attempting to rework some of the restrictive rules for operating through the Channel Tunnel to encourage new operators to enter the market.

A
S Getlink prepares to celebrate of 3 million passengers a year. Work to Getlink has also been working with
the 30th anniversary of the provide larger check-in and border the European Union Agency for
opening of the Channel Tunnel control facilities at Amsterdam Central Railways (ERA), the French rail safety
on May 6 1994, the company has set station, due to start in July 2024 and regulator EPSF and its British
itself the objective of doubling the expected to take six months to counterpart the Office of Rail and Road
number of high-speed services that complete, should enable Eurostar trains (ORR) to revise standards applying to
operate between London and mainland to carry their full complement of the Channel Tunnel so that a wider
Europe within the next 10 years. passengers. variety of high-speed rolling stock may
At the same time, the company is According to Leriche, the time taken to operate through it. This could include
calling on the British government to get to market is so long that new services more standardised and shorter trains
invest in providing the W12 loading through the Channel Tunnel are not a than Eurostar’s original e300 trains with
gauge between the Channel Tunnel and viable proposition if the potential 18 passenger cars and the 16-car e320
London, with the aim of increasing the operator relies on private finance. “That supplied by Siemens.
number of through freight trains is why we have no other operator,” he According to Leriche, Getlink has also
handled by its subsidiary Eurotunnel said, Eurostar having enjoyed a worked with rolling stock manufacturers
from the current low level of only four a monopoly on high-speed traffic through to ensure that these revised standards
day. the Channel Tunnel since it began are incorporated in their standard,
Announcing on December 14 that the operating from London to Paris and interoperable products, enabling
time required to bring new-high speed Brussels on November 14 1994. Channel Tunnel-specific safety
services to market had been reduced to The shorter time to market should requirements such as greater fire
five years, Getlink CEO, Mr Yann Leriche, encourage new operators, and make it resistance to be added at “very minimal
contrasted this with the 10 years that it simpler for Eurostar to introduce new cost.”
took to introduce Eurostar services to routes as it aims to grow traffic to 30 Asked by IRJ if this meant that any
Amsterdam. Getlink subsidiary million passengers a year at the merged TSI-compliant train could operate
Eurotunnel completed market studies in Eurostar and Thalys businesses by 2030, through the Channel Tunnel, Leriche
1999 but Eurostar did not launch its from 19 million in 2019 before the replied “almost, not 100%.” He added
first train until 2018. “The time to Covid-19 pandemic. “Five years is that the trains ordered by aspiring new
market was too long,” Leriche said. viable,” said Leriche, before outlining entrant Evolyn (p18) from Alstom
The size of the potential market was how Getlink has achieved this by would be to a standard design with
not the problem, he added, noting that concentrating on four areas, the first additional fire protection.
the 1 million passengers carried in 2023 being to identify new destinations by The fourth strand of work to cut time
is only one-third of a potential market means of market research. to market has seen Getlink preparing

20 IRJ The Railway in 2024


the ground for new services by working available from 2025 to 2030 under the transhipping consignments upon arrival
with infrastructure managers Infrabel, Eurotunnel Incentive for Capacity in Britain. Demand was not being met
Swiss Federal Railways (SBB), DB Additions (ETICA) programme. This is by the few freight paths available on
Network, SNCF Network and HS1 Ltd intended to help meet start-up costs for High Speed 1, the high-speed line from
in Britain on securing train paths and activities such as marketing and the Channel Tunnel to London, which
providing the secure check-in facilities communications while traffic builds up. was built to the more generous GC
that will be needed at stations. ETICA provided Eurostar with €9m for loading gauge but only as far as
Insufficient terminal capacity caused in its London - Amsterdam service in 2023, Barking in the eastern suburbs of
part by the additional time required to and support is due to rise to €23m in London as far as intermodal freight is
pass through passport control after 2030, according to Getlink. concerned.
Brexit has been a constraint for Eurostar According to an economic viability
in London and Amsterdam in study produced for Eurotunnel by
particular, preventing it from selling all W12 to London Volterra in December 2022, W12 could
available seats on some trains. As it looks to make the fullest use of be provided on the route from Dollands
Asked if sufficient capacity would be existing capacity through the Channel Moor to Wembley via Maidstone East
available to accommodate new entrants Tunnel, Getlink is also aiming to for £41.63m, which Leriche described as
at the London terminus, Leriche increase the number of freight trains “an entirely reasonable cost.”
answered “the space will be found at St operating between Britain and Getlink is now calling for the British
Pancras through a new entrance. There mainland Europe. It points out that an government to fund this project with
is space, there is potential,” he said, average of four trains a day used the some of the money it has saved by
adding that Getlink was working very Channel Tunnel in 2023, carrying 1 cancelling Phase 2 of High Speed 2
closely with station operator HS1 Ltd. million tonnes of freight and well below (HS2), pointing to potential benefits that
“We can say to new entrants ‘the work the maximum annual capacity of 8.1 include reducing congestion on the M20
has been done, and in five years you million tonnes. According to Leriche, motorway in Kent, reducing carbon
will be operating.’” the main reason is the lack of the W12 emissions and improving the resilience
Getlink’s development work has loading gauge on Network Rail (NR) of cross-Channel transport.
concluded that a journey time of infrastructure between Dollands Moor Connecting the Channel Tunnel with
4 hours or less is required to shift 50% in Kent and Wembley in north London, W12-cleared West Coast Main Line
or more of airline traffic to greener, which would enable swapbodies and 9ft (WCML) at Wembley would enable
high-speed rail. Amongst the potential 6in-high containers to be carried on trains from Europe to reach intermodal
new routes, development is most conventional intermodal wagons, terminals serving major centres of
advanced on London - Cologne - obviating the need for expensive production and consumption in the
Frankfurt, where potential paths and specialist rolling stock with a lower Midlands, north of England and
station options have been identified. deck height such as the Megafret Scotland, providing better access to the
The total airline market here is 4 million wagon. European market and strengthening
passengers a year, and with a journey Leriche said that moving intermodal supply chains between Britain and the
time of 4 hours to Cologne and 5 hours consignments by rail from Europe to European Union.
to Frankfurt, Getlink believes that a destinations beyond London was “not “We are asking the British authorities
high-speed service of four to six trains a financially attractive” at present, due to to provide W12,” Leriche said. “It
day in both directions could attract 2 the need for specialist rolling stock or should be put on the priority list.” IRJ
million passengers a year. This would
capture 40% of the air-rail market and
deliver what Leriche described as a
“phenomenal” 97% reduction in CO2
emissions per passenger. “The demand
is there,” he said.
Development is less advanced for a


London - Geneva service where airline
traffic is 2.5 million passengers a year.
With a journey time of 5h 30min and We can say to new
two to three return services a day, high-
speed rail would achieve a 30% market
entrants ‘the work
share, carrying 1 million passengers a has been done, and in
year and cutting CO2 emissions per
passenger by 95%. Getlink is also five years you will be
assessing potential routes from London
to Basel and Zurich, to Bordeaux, and operating. Yann Leriche
to Lyon and Marseille, where it has
completed market surveys but has yet
to finish work on paths and stations.
To support new routes, which
according to one Getlink insider would
cost a new entrant €1bn to launch,
Leriche also announced that Getlink
would be making a total of €50m
IRJ The Railway in 2024 21
Europe | ticketing

Rail Europe strives to meet passenger expectations


As new entrants seek to meet growing demand for rail travel in Europe, ticket retailer Rail Europe is working to
offer a neutral platform where customers can compare routes and prices, as CEO Björn Bender explains to
Robert Preston.

A
S an established retailer of travel The fall in commuter traffic that Bender says. “You cannot rely on a
passes, rail tickets and other many operators in Europe have single state-owned operator anymore.”
products for journeys within experienced as working patterns change Rail Europe currently sells some
Europe, Rail Europe is well placed to “is good for us as it is not our customer 5 million tickets a year and offers a range
assess how demand is evolving after the base,” Bender says. In the leisure of passes and other products for travel
Covid-19 pandemic, particularly among market that forms the bulk of Rail with 200 operators in Europe. “New
its traditional customer base of Europe’s business, he notes the trend fares, products and operators are being
passengers from outside Europe. for people to make more leisure trips added every week,” Bender says. He sees
The company’s CEO, Mr Björn Bender, and take more short breaks, such as a clear need for “agnostic players”
reports overall demand between 22% over a long weekend, rather than one enabling passengers to compare fares and
and 23% higher than in 2019 before the single major holiday every year. train times, believing that rail is 10, 15 or
pandemic, noting strong demand for As well as being seen as a more even 20 years behind the air travel market
cross-border services and the increasing environmentally-friendly option by the in this respect. “Customers are getting
public appetite for overnight trains. travelling public, rail is currently more and more used to using neutral
Here, the picture has “completely enjoying a positive political environment platforms like Skyscanner,” he says.
changed,” he says. After many years of in Europe. “Modal shift to rail is heavily “People are looking for neutral
decline, new entrants are now seeking supported by governments and the players… enabling them to compare
to meet this growing demand, while European Commission,” Bender notes. prices, routes and timetables on a
among the incumbents Austrian Federal And as the European passenger market transparent basis,” Bender says, taking
Railways (ÖBB) is notably investing in increasingly opens up to competition, as an example a cross-border journey
new rolling stock and growing the new operators are emerging which can between France and Germany.
Nightjet network. present problems for passengers “Sometimes you pay a different price
Speaking to IRJ at the end of November looking to find the best deal. for the same seat on the same train at
last year, Bender reported that sales at Bender points to Italy, and particularly the same time, depending on which
Rail Europe up to that point in 2023 Spain, where the incumbent Renfe is website you use to make your booking.”
were 60% ahead of 2022, “which is now competing for high-speed business
incredibly high for us,” he noted. “People with Iryo and Ouigo, and has set up its
from outside Europe are travelling own low-cost operation, Avlo. “This Price comparison
again to Europe and within it,” he says. was not the case five or 10 years ago,” Customers can now compare prices
and times using the Rail Europe’s own
website, and on November 23 the
company announced the addition of the
Multi-Providers feature to its range of


online channels for travel agents. This
enables them to compare options for
journeys such as London - Berlin that
For rail data we are previously had to be split into their
constituent legs, and provides booking,
still dependent on ticketing, payment and after-sales all in
one place.
the operators, and “Not every travel agent has to be a
that is definitely a rail expert anymore,” says Bender. The
new system still has some black holes
pain point as there is such as eastern Europe and the Nordic
countries, he says, and Rail Europe is
no standardisation in working to fill these soon.
Multi-Providers is available on all of
Europe. Rail Europe’s B2B channels for travel
Björn Bender agents, which include RailAPI that it
describes as a robust, real-time
synchronisation tool providing
businesses with direct access to the Rail
Europe database, well suited for
customers requiring deep integration
and customisation. RailAPI feeds data
in real time to websites like Expedia,
and suits larger companies with their
22 IRJ The Railway in 2024
Photo: Adif
With the emergence of competing operators in Europe, including in Spain, Bender argues that passengers are lincreasingly looking for agnostic ticketing providers.

own IT resources as it can take three to Rail Europe has made a “strategic rail data “has been going on for decades.”
four months to install. decision” to focus on customers within Rail Europe does not see itself as
More suited to medium-sized companies Europe itself. “We’re going where the competing with the incumbent national
is RailFlash, launched at World Travel demand is highest,” he says. operators in Europe. “We see the
Market London on November 7, which The company is investing internally incumbents as our partners,” Bender
provides lightweight connectivity in new tools and processes, as it seeks says, pointing out that Rail Europe
without the need for comprehensive to gather more insights from its own relies on them to provide data.
integration. Rail Europe says that this data. “We are specifically interested in With Rail Europe handling sales to
“really innovative” system has been where our clients are travelling to, what customers outside their home markets,
designed with simplicity, efficiency and type of train they are using and for “they are freed up to focus on their
speeed in mind, enabling its travel what purpose, such as business or national markets.”
agent partners to “get up and running leisure,” Bender says. “We are also “Cross-border is a low priority for
in no time.” seeing demand for a high level of them,” Bender says. “They understand
Also aiming to provide access to the service, where the customer is we are really not competing, bringing
Rail Europe product range with accompanied at every stage of the more customers and more revenue.
minimal set-up is RailPortal, an off-the- journey, from planning to execution,” Public-private partnerships will make
shelf trade website solution that he adds, saying that he is “completely the difference.” He cites German Rail
features a pre-designed, user-friendly convinced” that the rail sector can do (DB) as one incumbent that has
interface. The simplest connectivity much better in this field. AI and NFC recognised the additional value that
solution for travel agents is RailLink, technology may provide a solution. Rail Europe can bring, helping to grow
aimed at businesses looking to establish To provide its customers with a wide its passenger business.
an affiliation with Rail Europe and earn range of journey options and ticketing For Bender, the target in the European
commission without the complexities of products, Rail Europe deals with a large Union’s Smart and Sustainable Mobility
deeper integration. amount of third-party data. “For rail Strategy to double high-speed traffic by
data we are still dependent on the 2030, now only six years away, will be
operators, and that is definitely a pain “almost impossible” to achieve, given
Data and cooperation point as there is no standardisation in the limitations of both infrastructure
Rail Europe’s current strategy is Europe, but it is getting better,” he says. and rolling stock. “To double ridership,
based on “lots of investment,” Bender “We rely on operator data as the broker operators need to have a strong
says, especially in technology as shown in the middle.” partner,” he says, noting that Rail
by the roll-out of these new products Rail Europe is lobbying for Europe is even-handed in its approach
aimed at making rail bookings easier standardisation, and welcomes initiatives to incumbents and to their new
for travel agents, and for the increasing such as the EC’s proposed Multi-Modal competitors entering the market. “We
number of passengers wanting to make Digital Mobility Services directive. “It’s don’t differentiate between state-owned
their own bookings using websites such going in the right direction,” Bender operators and private companies,”
as Rail Europe’s own. Bender says that says, while noting that the debate over Bender says. “We are collaborating on
as a 100% privately-owned company, the need for greater standardisation in the same level with both.” IRJ

IRJ The Railway in 2024 23


Europe | policy

Legislative changes set to boost rail’s appeal


supplemented by new activity in 2024 the movement of containers across the
Francesco Dionori, chief of aimed at trying to harmonise passenger continent with rail acting as the
Transport Networks & Logistics information at stations, which should backbone for long-distance journeys.
further stimulate passenger rail use. All this requires investment. 2024 will
Section, Sustainable Transport In the rail freight sector, there are many also see the entry into force of the
Division, United Nations Economic barriers to the effective cross-border Luxembourg Protocol to the Cape Town
Commission for Europe transport of goods. The largest of these Convention on International Interests in
is found in the lack of harmonisation Mobile Equipment. As an important

A
S the railway continues to recover and interoperability between networks. implementing element of the protocol,
from the Covid-19 pandemic, However, administrative challenges are UNECE adopted the Model Rules for
2024 will be fundamental in another key obstacle. the Permanent Identification of Railway
understanding the mode’s future Encouragingly, member states have Rolling Stock in February 2023, which
trajectory by setting the baseline for a just adopted a new UN Convention that provides the conditions by which rolling
strong recovery and increasing its modal will unify the legal system for the stock financed under the Luxembourg
share. Continuing efforts to decarbonise carriage of freight between Europe and Rail Protocol can be marked. It is expected
the transport sector place rail in a strong Asia and 2024 will see the opening for that the protocol and the model rules
position to take market share away from signature of the Convention on the will have a positive effect on investment
other modes of transport both for Contract for International Carriage of in rolling stock, making it more
passenger and freight movements. Goods by Rail. Until now, rail freight from affordable for buyers across the globe.
However, there are several challenges Asia to Europe has not been covered by Investment is also desperately needed
to achieving this objective. In passenger a single uniform legislative system, in rail infrastructure across the world.
transport strong action needs to be taken putting rail at a disadvantage compared Crucially, this is not limited to big-ticket
to incentivise the shift of journeys to rail with other modes. For example, road items such as new high-speed lines.
by enticing passengers to switch away transport is subject to the Convention 2024 is the year where investment needs
from private road transport and from on the Contract for the International to target quick wins that reduce speed
aviation for short to medium-distance Carriage of Goods by Road (CMR); restrictions and increase capacity across
journeys. Post-pandemic initiatives such maritime transport is covered by the the network.
as those in France to cut short-haul Hague Visby Rules; and air traffic Work currently underway within the
aviation in favour of long-distance rail covered by the Montreal Convention. framework of the Trans-European
to reduce emissions from transport will China - Europe rail freight traffic has Railway (TER) Project at UNECE
be introduced in other countries in 2024 increased significantly in recent years, emphasises the gap that many Eastern
to reap similar benefits. even when considering the disruption European countries must cross to
While policy initiatives such as these caused by the Covid-19 pandemic and achieve the infrastructure parameters
are commendable, they also need to be the war in Ukraine, reaching more than enshrined in the AGC. Yet some smaller-
matched by investment in railway 400,000 TEUs in 2022. Reducing this scale investment in infrastructure along
infrastructure to provide the additional administrative burden should stimulate these routes can have a significant
capacity needed to handle more traffic a further increase in traffic by limiting impact on improving capacity and
and meet increasing demand. Similar the time spent at borders. services made available to operators
investment is needed to offer a This convention is the first in a system and ultimately users.
passenger experience that can match or of Unified Railway Law Conventions and Funding for these investments needs
even surpass that of the aviation sector. further areas of potential harmonisation to come both from national and
In this framework, member states that will be explored in the coming years. international sources. The various
participating in the work of the United entities involved will need to coordinate
Nations Economic Commission for their activities to ensure that the
Europe (UNECE) have recently adopted
Modal integration funding provided is complementary to
a major modification to the European Both passenger and freight rail transport the infrastructure demands and the
Agreement on Main International cannot exist in a bubble. Rail is a needs of key policy decisions.
Railway Lines (AGC) - the key rail fundamental element of the transport The activities of UNECE in the rail
agreement administered by UNECE. chain, but only one of the elements. For sector continue to bring together member
The amendment aims to identify a rail to continue growing in 2024 integration states and industry players from across
number of international rail passenger with other modes must be improved. the UNECE area and beyond with the
hubs across the UNECE area where UNECE activities aim to support aim of coordinating the development of
passengers would be provided with a intermodal transport and facilitate the the rail sector to improve efficiency and
minimum set of common technical development of a regulatory framework make it the mode of choice. The renewal
parameters and services. The objective through the modernisation of the of efforts in the areas mentioned above
is to offer the same level of comfort for European Agreement on Important in 2024 will be matched by member states’
people arriving at an international International Combined Transport activities on rail safety, productivity
railway station as an international Lines and Related Installations, the and market reform, emphasising the key
airport terminal, helping to reduce the sister infrastructure agreement to the role that rail plays in decarbonisation
uncertainty around using rail for cross- AGC. The objective is to provide a and helping member states achieve the
border travel. This work will be combined transport network to facilitate Sustainable Development Goals. IRJ
24 IRJ The Railway in 2024
The Railway in 2024 - South and Central America

Projects to watch in 2024


Guatemala railway
reopening
Country: Guatemala
Type: Main line
Construction Start: 2024
Completion: 2027
Length: 800km
Cost: $US 1.75bn

Work could start this year on the


delayed scheme to rebuild Guatemala’s
defunct 914mm-gauge railway as a
standard-gauge network. The objective
is to serve the country’s Caribbean and
Pacific ports and to connect with the
North American rail network via
Mexico. New lines will be built to the
borders with El Salvador and Honduras.
The project is being developed and
financed by a private company called
Remed (IRJ December 2023 p35). The
São Paulo inter-city rail 800km project will be implemented in
Country: Brazil three stages. Stage 1 mainly comprises
Type: Main line an upgrade of the 235km running from
Construction Start: 2024 Tecún Umán on the Mexican border via
Completion: 2031 Río Bravo and Santa María (north of
Length: 136km Obrero) to Puerto Quetzal. Stage 2
Cost: $US 2.66bn involves upgrading the 317km section
from Puerto Barrios and Santo Tomás
The project involves upgrading the São Paulo - Campinas main line for 160km/h de Castilla to Zacapa and Guatemala
operation and electrifying the line north of Francisco Morato at 3kV dc. This City, and the 89km Guatemala City -
would enable an inter-city service to be introduced between Barra Funda in São Santa María line. Stage 3 involves
Paulo and Campinas with one intermediate stop in Jundiaí and a regional service construction of a new 91km line from
between Jundiaí and Campinas serving three new intermediate stations at Obrero to the border with El Salvador.
Louveira, Vinhedo and Valinhos. A 30-year concession will be awarded to
implement the project and operate the new passenger services. The concessionaire São Paulo light rail
would also take over the operation of São Paulo Metropolitan Trains’ (CPTM) Country: Brazil
Line 7/Ruby commuter rail service (pictured) which operates on the southern part Type: Light rail
of the line. The Secretariat of Investment Partnerships (SPI) of São Paulo state has Construction Start: 2024
already published a revised tender notice for the project and the winning bidder is Completion: 2027
due to be selected by auction on February 29 2024. The regional service is expected Length: 12km
to start in 2029 followed by the inter-city service in 2031. Cost: $US 748.2m

The city of São Paulo plans to start


Pacific Train project construction of two light rail lines in
Country: El Salvador the city centre this year. The Reais
Type: Main line 3.7bn ($US 748.2m) project will be
Length: 103km partly funded through the federal
Cost: $US 700m government’s Growth Acceleration
Programme (PAC). The Red Line will
The Pacific Train project involves building a new standard-gauge line initially to form a figure of 8 while the Blue Line
connect the coast with the capital. Design work is already underway on a new line will comprise a circle, with the two
from Acajutla on the coast via Sonsonate and Caserio Sitio del Niño to San lines intersecting on São João Avenue.
Salvador. The project is part of the country’s new Regional Mobility and Logistics The two lines will be operated by five-
Master Plan. The government favours new construction using the existing railway section LRVs each with capacity for
right of way where possible, rather than trying to revive the abandoned 555km, almost 450 passengers. Demand is
914mm-gauge network, which closed in 2002. Information regarding the rest of the estimated at 134,000 passengers per
535km of planned new railway have not been disclosed, although the objective is to day. The LRVs will be powered by a
connect the new rail network with Guatemala, which is reviving its railway. The ground power supply system rather
master plan commits El Salvador to investing $US 1.83bn in railway infrastructure than overhead catenary to reduce the
over the next decade, including a monorail in the Greater San Salvador area. system’s environmental impact.

IRJ The Railway in 2024 25


The Railway in 2024 - North America
Projects to watch in 2024 High-Frequency Rail
Country: Canada
Type: Main line
Completion: Mid-2030s

The project is aimed at providing an


improved railway between Toronto,
Peterborough, Ottawa, Montréal, Trois-
Rivières and Québec City with trains
travelling at up to 200km/h on mainly
new, electrified and dedicated tracks
that extend over 1000km. A Request for
Proposals (RFP) was launched in
October 2023 following the shortlisting
of three consortia in July to work with
project organisation Via HFR on design
Brightline West HSL and development: The consortia are:
Country: United States
Cadence, comprising CDPQ Infra,
Type: High-speed
SNC-Lavalin, Systra and Keolis;
Construction Start: 2024
Intercity Rail Developers, comprising
Completion: 2028
Intercity Development Partners, EllisDon
Length: 350.7km
Capital, Kilmer Transportation, First
Cost: $US 12.5bn
Rail Holdings, Jacobs, Hatch, CIMA+,
Brightline West says that it hopes to begin construction early this year on the long- FirstGroup, RATP Dev, and Renfe; and
planned high-speed line from Las Vegas, Nevada, to southern California. QConnexiON Rail Partners, comprising
Construction between Las Vegas and Victoriaville, California, has been approved, Fengate, John Laing, Bechtel, WSP and
and the Federal Railroad Administration (FRA) has released an environmental German Rail (DB). The RFP stage will
assessment report for the 79km stretch through the Cajon Pass from the Victor run until this summer. RFP bidders will
Valley to Rancho Cucamonga between Los Angeles and San Bernadino. Brightline be required to develop two solutions,
West expects to offer a journey time of 2h 10min, operating trains at 45-minute including proposals enabling passenger
intervals at a top speed of 290km/h on the single-track railway. This is more than trains to operate at up to 200km/h. The
twice as fast as the equivalent journey by road. In December 2023, Brightline West second solution must include high-
secured $US 3bn from the federal government to support construction. speed segments for higher speed.

Mexican president opens first section of Mayan Train


Work comprised restoring railway
Kevin Smith infrastructure to the existing right of
Editor-in-Chief way from San Francisco Campeche to

T
Izamal, and new line construction from
HE president of Mexico, Mr Izamal to Cancún, much of which is
Andrés López Obrador, officially located in the median of the six-lane
opened the first 473km section of highway from Valladolid to Cancún.
the Mayan Train project from San The initial stretch comprises sections
Francisco de Campeche to Cancún Airport 2, 3 and 4 of the project. Work on
on December 15, just five years since work Section 2 from Escárega to San Francisco
on the project commenced and three- Campeche and Calkiní has been led by
and-a-half since the start of construction. Mexican group, Grupo Carso; Section 3
Passenger journeys on the line, which from Calkiní to Izamal has been delivered
serves 14 stations in the provinces of by a consortium of Construcciones
Campeche, Yucatán and Quintana Roo, Urales and Grupo Indi; and Section 4
commenced the following day with two from Izamal to Cancún has been led by
services departing at 07.00 and 11.00 ICA. The Mexican Army has delivered Alstom has so far delivered six trains from an
order of 42 for the new railway.
from San Francisco de Campeche and Section 5 North from Cancún to Cancún
Cancún Airport. It was originally hoped Airport, which remains under construction the former freight line, has been
to operate six return trains from the from the airport to Playa de Carmen. conducted by Mota-Engil Mexico and
start of service. Operation on the southern portion of China Construction CC.
Obrador described the project as a Section 2 from San Francisco de Work on the initial section has
“magnum opus.” Campeche to Escárcega and on Section included the installation of 1846km of
“We are not exaggerating if we say 1 from Escárcega to Palenque is due to rail, 1.6 million sleepers, and required
that there is no such work in the world commence on December 31. Work on the movement of more than 69 million
today.” he said. Section 1, which also involved restoring m3 of land in Campeche, Yucatán and
26 IRJ The Railway in 2024
North America | Mexico

Quintana Roo. There are 362 vehicle, Alstom has so far delivered six obstacles, including over environmental
general, pedestrian and wildlife 160km/h Xinbal standard four-car trains issues, which had forced the suspension
crossings. In addition, 12 archaeological for the project, the most recent of which of work and changes to the route.
zones located along the site of the was delivered on December 10. The Concerns have since been raised over
railway have recovered thousands of manufacturer is supplying 42 trains pushing ahead with construction
artefacts. comprising 219 cars in three different without completing full environmental
Depots are located in Teya and configurations as part of a €1.3bn surveys due to the condition of the
Hampolol, along with two maintenance contract for railway systems signed in ground on the Yucatan peninsula,
facilities in Teya and Valladolid, and a May 2021. It confirmed in July that it which mostly consists of porous
further workshop and yard in Cancún. will complete delivery of the fleet by limestone and is structurally fragile.
More than 80% of the professionals the end of the fourth quarter of 2024. The president is attempting to
working on the project are between 21 Alstom has also been responsible for complete various infrastructure projects
and 30 years of age, with 211 from the installing ETCS Level 1 across the line. ahead of the Mexican general election
Yucatán peninsula and 310 from the Each train is equipped with air- next June. Local media reports suggest
rest of Mexico. There are currently 20 conditioning, ergonomic and reclining that many of the 14 stations to open are
train drivers, three trainers and 30 seats, CCTV and passenger information noticeably incomplete, and train speeds
railway traffic managers and railway screens, with dedicated spaces for are currently limited to a maximum of
technical personnel available to work luggage storage. The trains are fully 110km/h, compared with a design
on the railway, with all of them certified accessible for passengers with reduced speed of 160km/h.
by Mexico’s Railway Transport mobility. The remainder of Section 5 as well as
Regulatory Agency. “This service may undergo variations sections 6 and 7 of the project, the
Operation is initially taking place with during the pre-opening stage and, 621.3km stretch from Cancún Airport to
diesel trains. However, work is continuing naturally, train functionalities and Tulum, Chetumal Airport and
to electrify the inaugural section of the speeds will be adjusted,” says General Escárcega, are scheduled to open on
line with more than 75% of the catenary Óscar David Lozano Águila, general February 29, Águila confirmed on
masts required now in place. director of Mayan Train. December 11.
Olmeca-Maya-Mexica, a state-owned Section 5 South runs from Puerto
company under army control, is operating Aventuras to Playa del Carmen and is
the service. The company also operates Concerns being delivered by Mota-Engil Mexico
hotels, national parks, an airline and a The project has been criticised for (subsection A); Azvindi Ferroviario
dozen airports. Obrador said that one of environmental damage, soaring costs (subsection B); and ICA (subsection C).
the key objectives of the project is to and a lack of transparency. Obrador The army is responsible for sections 6
boost domestic and international instructed the army to take over and 7.
tourism and economic development in leadership of the project from the Section 6 comprises 255km of
the southeast of the country. He said National Tourism Development Fund electrified double-track and five stations
that the operator would offer affordable (Fonatur). He also issued a presidential from Tulum to Chetumal, including an
tourist packages, prioritising Mexican decree to make the project a national 8km elevated section. Section 7 runs for
tourists, and that train tickets would be security priority after it ran into legal 254km from Bacalar to Escárcega. IRJ
kept below the cost of buses.
The cost of a ticket from Campeche to Mexico
Cancún is Pesos 1166 ($US 67.59) in
standard class and Pesos 1862 in first Existing freight lines
class for the six-hour trip, which is Freight line to be upgraded
equivalent to the same journey by car. Planned new line
Cancún
Around 6600 passengers per day are Izamal
Puerto de Morelos
expected to use the train during the pre- Mérida
Valladolid
operation stage.
Chichén Itza Playa del Carmen
The cost of the overall project is now
Maxcanú
estimated at more than Pesos 515bn. Talum
N
The Mexican Ministry of Finance has YUCATAN
already disbursed Pesos 400bn and
S F Campeche
another Pesos 74bn will be allocated 0 km 100
before the end of this year. Obrador Felipe C Puerto
stated during the opening that the costs
Hvmg!pg!Nfyjdp
would be confirmed in “due course”
and that the project has not placed any Bacalar
debt burden on the state, adding that it Escárcega Xpujil
Chetumal
will “break even” in three or four years.
“It wasn’t credit, it was public Candelaria
investment,” Obrador says. “Nothing is
owed to the Mayan Train, nothing. This
Palenque BELIZE Dbsjccfbo!Tfb
is a work of the people of Mexico and that
is why we are all going to take care of GUATEMALA Belize
it. It is a work of all Mexicans to greatly Boca del Cerro
IRJ
help the development of the southeast.”
IRJ The Railway in 2024 27
North America | freight

Mixed outlook for North American rail freight in 2024


Independent rail economist Jim Blaze shares another fearless forecast for North American rail freight.

N
EVER forget that freight moved chemicals, supported by North America’s Meanwhile, orders for metals and
by any mode is a “derived relatively low energy costs from coal steel are up, as are prices for both scrap
market demand” signalling and natural gas. For the year to date in and finished metals. This is an
business change between shippers and 2023, US rail chemical traffic volume is improvement over the depressed prices
receivers. The share that the railways down marginally by about 1.8%, but seen for these commodities during
earn is a function of their ability to increased on certain corridors. Petroleum much of the last decade. With the
deliver reliable service at a reasonable and petrol products rose by just over 10%. demand for arms and ammunition from
price, compared mostly with truck and The expected grain import shortages the military and federal infrastructure
river barge competition. from both Ukraine and Russia should funding legislation, metals rail traffic
The good news in the United States is support agriculture and the export of all should grow in 2024.
the growth prospects for the infrastructure types of grain and food products from Intermodal rail traffic has two market
and manufacturing sectors. Huge both Canada and the United States. segments, both with slightly different
amounts of investment have been However, in the US rail market, grain growth potential. Domestic intermodal
committed by both the private and the movements were down by 11.3% in largely comprises the movement of 53ft
public sectors with funding for bridges 2023 while food products other than high-ceiling containers on double-stack
and highways to buildings and grain were up by 8.2%. A deeper look long-distance freight trains which
manufacturing construction. suggests that these grain and food compete with highway semi-trailers.
This is partly to support a “re-shoring” products should become growth Rail intermodal competition occurs on
of manufacturing away from China to opportunities in 2024 and beyond. about 12 or more strategic rail corridors
Mexico and various US locations, It is difficult to predict the shipment that parallel interstate highways. In
representing a shift towards domestic by rail of finished cars and wood contrast, the carriage of road semi-
production that is likely to take place products. Both are subject to demand trailers by rail continues to dwindle.
over a decade. that is directly impacted by interest This is because too much tare weight is
Construction will lead to growth in rates. As 2023 closes, there may be a being transported as the semi-trailers
rail-hauled commodities from aggregates surplus of cars on hand as potential include their wheelsets.
to fabricated metals such as steel. In 2023, buyers wait for loan interest rates to The other half of the intermodal
metallic ores were up 10%, aggregates drop. Higher mortgage rates in the market consists of the continental long-
for construction increased by 5.3%, housing market may depress both distance distribution of international
while iron and steel scrap volume by lumber and new home appliance 40ft maritime containers, which have a
rail was up 3.3%. orders, both of which are transported lower ceiling height than domestic
The resulting production will favour by rail. containers. Few maritime containers

Total containers moved by double-stack freight


trains were down by 5.1% in the United States
from January 1 up to the end of November
2023 compared with the same period in 2022.
Photo: David Gubler

28 IRJ The Railway in 2024


move by rail these days as the cargo from while trailer and semi-trailer truck both show that freight network
them is transhipped at the ports into intermodal was down by almost 24%. performance and train velocity have
larger 40-53ft containers when they are Containers moved largely by double- been improving throughout 2023, as has
being transferred to rail as this is a better stack train were down by 5.1%. terminal wagon dwell time in freight
economic model for the railways, Throughout much of 2023, intermodal yards.
particularly when using double-stack trains. volumes had been down quite a bit Among the six largest Class 1` railways,
Coal is an outlier since it has increased more. the performance of CSX under its new
in recent years as the rising cost of natural Longer-range global supply chain CEO seems to be leading its peers in the
gas on the global market has temporarily geo-politics and repositioning of field of service improvements as of
improved the price attractiveness of utility manufacturing might affect intermodal November 2023.
coal. However, growth is unlikely to volumes on a several routes linking Overall, the US rail freight network
continue as further coal-fired power international ports with inland North was showing an average velocity of
station closures are planned. Indeed, rail American destinations. We might indeed about 40km/h. Intermodal trains of
utility coal traffic declined by 0.5% in see higher growth rates by intermodal course travelled faster. And fewer trains
2023 compared with a 2.7% increase in rail along the Canadian and the Mexican/ were being held because of crew
metallic coal traffic for the steel industry. US corridors involving Halifax, Laredo, shortages than a year ago.
While wagonload traffic might grow Eagle Pass, and Savannah and the Port
of New York and New Jersey. However,


overall during 2024, it is unlikely to
grow by more than 2-3%. That is there might be slower growth and even
somewhat less than the expected US some loss of volume on selected
GDP and industrial production growth western US lines. It is hard to predict North American
rates. A few of the larger railways have this in early December 2023. railways have not
expressed ambitions to grow their So far, North American railways have
traffic volume at up to twice the rates of not discovered a magic solution to discovered a magic
GDP and industrial production. Based provide a highly reliable first/last-mile
on my experience, that is a real stretch. service. Wagonload freight is still often solution to provide a
Consider this an advisory warning. It only about 85% within the scheduled highly reliable first/
will be a real challenge for rail to delivery window of the day promised
consistently grow wagonload traffic at a and often well below that rate. last-mile service.
high percentage rate over the next Intermodal delivery is better, often at
decade, but it may not be impossible. 90% or above the promised day’s target
time. But nowhere near truck delivery
reliability of within an hour or two of Private railway owned or leased
Intermodal schedule. So, it is hard to even suggest wagons were also moving much faster
The growth outlook for intermodal rail that rail will capture market share than a year ago. Overall, the Class 1
looks better than for most wagonload during 2024. railways were reporting to the Surface
commodity groups, but with a few However, rail rates (per tonne-km) will Transportation Board (STB) that
interesting footnotes. On the positive still be significantly below truck rates. customer delivery was up from 2022’s
side, the competing American Trucking And rail freight’s environmental impact approximate 75% on-time rate to over
Association (ATA), which in part also will remain considerably better than 82% in 2023. Both metrics suggest that
represents rail intermodal trucking that of trucking for shippers concerned the railways should be able to handle
users, expects to see rail intermodal about their logistics carbon footprint. traffic volume growth if demand surges
growth of 62% during the next 10 years, Furthermore, the profitability of a rail entering 2024.
which is a compounded growth rate of freight enterprise will remain considerably If the US economy stays healthy and
more than 5%. Not a doubling of GDP higher throughout 2024 than that of the avoids a recession, then the rail freight
or industrial production growth, but competing trucking carriers based on sector should grow, and remain very
still notably higher than the wagonload return on capital and profit margin. profitable. Both the Canadian and the
traffic growth rate. Truckers do not achieve the operating Mexican rail networks, which use the
However, when considering the margins and returns on capital assets same operating procedures and market
business outlook projections of a variety seen in the private railway business approaches as in the United States,
of ocean container operators and ports model. should also see growth in volumes.
served, the volume of international While North American freight railways The two commodities most likely to
maritime containers to be moved by rail are not exiting the freight business, the be impacted by high interest rates are
might not recover and prosper as much long hoped-for pivot in market share lumber for house construction and
as ATA predicts for domestic remains elusive. A shift in objectives by finished cars, SUVs, and pick-up trucks.
intermodal traffic. At the end of 2023 railway executives could obviously Higher mortgage rates and higher
soothsayers are suggesting a slowdown change this picture. But that’s a harder automobile loan rates are stalling sales
between January and June 2024 for crystal ball outcome to predict. We will as 2023 ends. As a result, the 12.3%
maritime containers focused on the US. all have to wait and see how these year-to-date growth in the transport of
Here are year-to-date average enterprise management re-engineering finished automobiles might drop
intermodal volume changes for the US proposals play out. towards zero or worse for a time into
network at the end of November. Total Statistical analysis by the Susquehanna the first half of 2024. Lumber used in
intermodal units (both international and Financial Group led by Mr Bascome housing construction is already
domestic containers) were down 6.2% Majors, and a separate analysis by showing a year-to-date fall of 9.8%,
compared with the same period in 2022, Capital Loop led by Mr Rick Paterson, with a 15.7% drop in Canada. IRJ
IRJ The Railway in 2024 29
The Railway in 2024 - Asia

Projects to watch in 2024 Kuala Lumpur - Singapore


high-speed line
Seoul GTX-A line Country: Malaysia/Singapore
Type: High-speed
Country: Korea
Type: Commuter rail Construction Start: Undecided
Construction Start: 2019 Completion: Undecided
Completion: 2024 Length: 350km
Length: 39.8km Cost: $US 17bn

In 2023, it was decided to revive the


cancelled Kuala Lumpur - Singapore
high-speed rail project and Malaysia’s
MyHSR invited proposals from the
private sector. The deadline for
submissions to the Request for
Information (RFI) was extended from
November 2023 to January 15. MyHSR
says participating firms and consortia
are required to demonstrate technical
expertise and their overall ability to
develop and operate the railway and
high-speed services with the required
resources and within the budgeted cost,
quality and time. They are also required
to demonstrate viable commercial and
business models as well as suitable
frameworks for consortium and project
Hyundai Rotem delivered the first GTX-A train in 2022. Photo: Hyundai Rotem governance.
The initial 28km Dongtan - Suseo section of the new Great Train eXpress Line A
(GTX-A) urban rail line in Seoul will open in March. Korea National Railway North-South Commuter
(KNR) completed the majority of construction in November 2023. Trains will Railway
operate at up to 180km/h on the new line. KNR is also responsible for building the Country: Philippines
17.7km new-build section from Suseo to Samseong while the private SG Rail Type: Commuter rail
consortium, which is led by Shinhan Bank, is building the remaining 37.4km Construction Start: 2023
section from Samseong to Unjeong (Paju). The section from Unjeong to Seoul Completion: 2028
station is expected to open in the latter half of 2024 and the full line from Unjeong Length: 147.26km
to Dongtan is expected to open by 2028. The line is one of three planned GTX Cost: $US 15.8bn
regional lines. Line B will run from Incheon in the west via Seoul to Maseok in
eastern Gyeonggi Province, and the first contract was due to be awarded last year. Construction started last year on the
North-South Commuter Railway,
Western Dedicated Freight Corridor which will run from New Clark City
via Clark International Airport and
Country: India
Type: Main Line Manila to Calamba. CAF was awarded
Construction Start: 2016 a $US 150m subcontract by Mitsubishi
Completion: 2024 last month to supply seven eight-car
Length: 1176km EMUs to operate an express service on
Cost: $US 4.38bn the line. The standard-gauge line is
forecast to carry up to 600,000
Following the completion of the 1337km Eastern Dedicated Freight Corridor (DFC) passengers per day and will cut
in October 2023, Dedicated Freight Corporation of India expects to complete the journey times substantially compared
final three sections of the 1176km Western DFC this year. The 938km northern with road transport.
section of the Western DFC from Dadri to Sanand and the 238km section from
Makarpur to New Gholvad have already been completed. The missing 138km
section from Sanand to Makarpura is expected to open in March together with the
83km extension from New Gholvad to Vaitarna. The final 109km southern
extension from Valtarna to Mumbai JNPT will open in December. The Western DFC
is funded entirely by a Yen 645bn loan from the Japan International Cooperation
Agency (Jica). The DFCs will bring about a step change in rail freight operation in
India. The new lines will have a maximum speed of 100km/h compared with
75km/h on the conventional network and a 32.5-tonne axleload compared with 22.5
tonnes. Double-stack container trains will be operated for the first time in India.

30 IRJ The Railway in 2024


Asia | India

Financial performance a concern for Indian Railways


Srinand Jha considers the challenges lying ahead for Indian Railways in 2024 as expenditure outpaces revenue
and major reform stalls.

A
LONG with the incremental 2023, the operating ratio - or proportion personnel from the engineering function.
introduction of the of revenue consumed by operating costs The higher echelons of IR management
indigenously-developed - was 107.39% in 2021-22 compared with have also been in turmoil following the
160km/h Vande Bharat EMU on the 97.45% in 2020-21. For the first time in introduction of new procedures whereby
mainline network, Indian Railways (IR) several decades, IR has started to spend candidates for promotion to the rank of
has two major achievements to show for more than it earns. During 2021-22, its Railway Board member are handpicked
2023. First is the completion of the long- revenue expenditure increased by 49.3% and interviewed in person by a panel of
awaited 1337km Eastern Dedicated and the proportion of capital expenditure ex-IR officials. However, the majority of
Freight Corridor (EDFC) that connects met from extra-budgetary resources these panel members did not themselves
Ludhiana in Punjab with Sonnagar in increased by 37.35% due to inadequate reach the rank of general manager while
Bihar. The second is the buoyant growth generation of internal resources. In the at IR. “As a result of this policy of pick
in freight traffic seen last year, when IR report, the C&AG advised IR to regularly and choose, complete chaos has come to
carried 634.66 million tonnes between monitor expenditure and budget prevail in the higher bureaucracy and
April and August, an increase of 1378 allocation in order to ensure that funds decision-making has become slow,” an
tonnes in the same period in 2022. are properly directed towards their IR official says.
IR also achieved its highest-ever capital intended purpose.


expenditure over these five months, In the nine years since the current BJP
investing Rs 1150bn ($US 13.95bn) in administration came to power, IR’s
building new lines, track doubling, capital expenditure budget has grown As a result of this
gauge conversion, the enhancement of from Rs 539bn in 2013-14 to Rs 2.602
passenger amenities and safety projects. trillion in 2023-24. Gross budgetary policy of pick and
Several key projects are now starting to support for IR capital expenditure has
come to life. Trial runs on a 50km section increased by a factor of eight since 2013-
choose, complete
of the Mumbai - Ahmedabad high-speed 14. Despite this huge infusion of funding, chaos has come to
line are scheduled to start this year and IR’s performance and efficiency does
other work on this project is being fast- not appear to have been radically prevail in the higher
tracked, with tenders likely to be called transformed for the better. The average
during 2024 to supply the first batch of speeds of both freight and passenger bureaucracy and
18 Japanese series E5 Shinkansen trains trains have remained much at the same
at an estimated cost of Rs 70bn. levels over the last 10 years, while major decision-making has
Elsewhere, the 17km priority section accidents have continued to happen.
of the Regional Rapid Transit System At the same time, ambitious plans to become slow.
(RRTS) in the National Capital Region redevelop stations have been announced
was inaugurated on October 20 2023. to great fanfare, but have made little
The remainder of the 82.15km Delhi - progress. Initiatives to divest IR public- Indeed, senior managers do appear to
Meerut RRTS costing Rs 302.7bn has sector undertakings such as Railtel or the have been labouring under a climate of
been making rapid progress and is Container Corporation of India (Concor) indecision during 2023. Examples include
likely to be completed in June 2025. have not come to fruition. Asset the 2500 diesel locomotives in operating
Following the collision at Balasore on monetisation schemes, including plans condition worth Rs500bn that are now
June 1 2023 that killed 294 passengers, IR to sell or lease surplus railway land, sitting idle, as IR pursues its 100%
has also moved to introduce new electronic have not progressed, and policy reforms electrification drive without having
signalling systems, with railways minister, to set up an independent rail regulator worked out a viable programme to
Mr Ashwani Vaishnaw, announcing or introduce a commercial accounting phase out or sell its surplus diesel
plans to deploy solid-state interlockings system have not moved forward. traction. At the same time, more and
across IR’s 68,103 route-km network more Vande Bharat EMUs are flooding
within the next three years. The onto the network without adequate
programme to roll out the Kavach anti- Management reform stalls attention being paid to setting up the
collision system, a homegrown version The BJP administration has made many specialised depots needed to
of ETCS Level 2, has been accelerated, several bold decisions since coming into maintain and service these new trains.
with contracts awarded for the Delhi - office, such as the move to disband IR’s Apart from his responsibilities as
Mumbai and Delhi - Kolkata corridors eight existing services and merge them railways minister, Vaishnaw holds two
totalling 3000 route-km. into a single cadre known as the Indian other cabinet portfolios and also
While IR has justifiably focused on Railways Management Service (IRMS). shoulders other heavy political
meeting its asset modernisation needs, With this measure, the government responsibilities as a member of the
the company’s declining financial intended to do away with the prevailing prime minister’s core team. “At a time
health remains a worry. As pointed out culture of working in silos, but this when big changes are happening, such
in a report presented by the Comptroller change has also had the negative effect a situation at the leadership level is not
and Auditor General (C&AG) in March of gradually eliminating specialised ideal,” an official comments. IRJ

IRJ The Railway in 2024 31


The Railway in 2024 - Australia
Projects to watch in 2024
Sydney City and South-
West Metro
Country: Australia
Type: Metro
Construction Start: 2018
Completion (first phase): 2024
Melbourne Length: 30km
Cost: $US 13.2bn
suburban rail loop
Country: Australia The fully automated line is a 15.5km
Type: Commuter rail extension of the existing North-West
Construction start: 2022 Line. It will run south from Chatswood
Completion: 2053 to North Sydney, under Sydney
Length: 90km Harbour, through the city centre and
Cost: $US 34bn south to Bankstown. Tracklaying has
The Melbourne Rail Suburban Loop (SRL) will link every major commuter rail been completed and testing and
service from the Frankston Line to the Werribee Line as well as Melbourne Airport commissioning is underway. The metro
via three transport hubs at Clayton, Broadmeadows and Sunshine. This will make will incorporate Sydney Trains’ 14.5km
it possible for passengers to travel suburb to suburb without having to pass line between Sydenham and Bankstown
through the congested city centre to reach major hospitals, universities and once it has been upgraded and converted
employment centres. The project is divided into sections. Construction of SRL East to driverless metro operation. The
from Cheltenham to Box Hill is already underway. Last month, the Victorian state conversion of the Bankstown Line is
government signed the first major construction contract for the $A 34.5bn ($US likely to require a shutdown of up to 12
22.67bn) eastern section only days after the state Ombudsman criticised how the months, commencing between July and
project was conceived. SRL Airport will connect Melbourne Airport to the rail October 2024. The cost of the project has
network at Sunshine. SRL West will run from Sunshine to Werribee, and SRL increased from its initial estimate of
North will link Box Hill to Melbourne Airport and will be completed by 2053. $US 12.59bn.

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32 IRJ The Railway in 2024


Australia | freight

Australian industry strives to grow rail freight’s market share


to $A 31bn ($US 20.9bn), double the “It will enable separation from busy
Tony Duboudin original estimate. metropolitan passenger networks across
Regional Editor An independent review of Inland Rail the East Coast and build resilience into

W
commissioned by the federal the network in the face of extreme
HILE Australia is a global government and published in January weather events and other challenges.”
leader in moving bulk 2023 recommends that the project
commodities by rail, should finish at Ebenezer, about 50km
carrying nearly three quarters of the west of Brisbane, with connections to Landmark research
country’s total, rail’s share of the non- the Port of Brisbane by road and rail To try and correct this imbalance, the
bulk freight market is just 17% and infrastructure unable to accommodate industry is lobbying hard to get a
continuing to decline. double-stack container trains. bigger share of the freight cake. To
In the United States, by contrast, rail The review’s author, Dr Kerry Schott, make the case, the federal minister for
is responsible for 28% of freight tonne-km says the project was late and over infrastructure, transport, regional
and this figure is growing, while in budget. One of her most important development and communities, Ms
India rail’s market share is 26%. tasks was to assess the extent of these Catherine King, together with ARA and
When it comes to inter-capital freight, problems. “In this I have failed as there key industry representatives, jointly
Australian rail’s share is only 11% is insufficient certainty about the released the findings of a landmark
across the eastern seaboard, and as little completion date and the final cost to research project in November, which
as 2% on the busiest freight corridor have confidence in the current found that Australia needs to boost rail
between the two largest cities, estimates,” she says. freight’s modal share to meet future
Melbourne and Sydney, down from The freight and logistics industry has transport needs, reduce emissions and
about 40% in the 1970s. now accepted that Inland Rail will end encourage economic growth.
Less than a third of freight is on rail short of the Port of Brisbane, leading In response to the research, the rail
between Melbourne and Brisbane, some industry figures to question the industry has launched the Future of
which will be served in the future by project’s viability as well as the transit Freight campaign, which makes several
the 1727km Inland Rail project. On the times that it hopes to deliver. key recommendations to the industry
corridor between the eastern states and Nevertheless, the Australasian and government that would enable rail
Perth, rail accounts for the majority of Railway Association (ARA) remains to play a far greater role in carrying
non-bulk freight. confident that Inland Rail will have a freight.
Inland Rail involves upgrading and significant impact on freight in The campaign is centred on the
realigning parts of the line between Australia as well as offering economic, comprehensive research, which was led
Melbourne and Brisbane to increase environmental and social benefits. “It by the Australasian Centre for Rail
competitiveness with road transport. will get over 200,000 trucks off the road Innovation (ACRI), with input from the
However, the project is proceeding at a each year and vastly improve the ARA and Freight on Rail Group (Forg),
glacial pace with completion now capacity, capability, and interoperability and supported by the Department of
extended to 2027. There is uncertainty of the national freight rail system to Infrastructure, Transport, Regional
over where it will terminate in Brisbane better meet market requirements,” says Development, Communications and the
and the cost of the project has ballooned ARA CEO, Ms Caroline Wilkie. Arts.

Rail carries only 17% of non-bulk freight in Australia, which is often hampered by poor interoperability. Photo: David Gubler

IRJ The Railway in 2024 33


Australia | freight

The research comes shortly after a joint contributed to extended delays to provide a clearer understanding of road
submission by the ARA and Forg to the freight trains. It calls for new freight operations.
Australian government’s review of the infrastructure and upgrades to address Wilkie also identifies three initiatives
National Freight and Supply Chain these issues. that would help boost rail market share
Strategy that showed disruption to Another area requiring attention, the and which ARA believes could be
freight services and train accidents have report says, was the creation of well- implemented quickly:
cost the economy hundreds of millions located intermodal terminals supported • adjusting government cost:benefit
of dollars in recent years. by improved technology and systems.


Wilkie says the research found the These improvements can make a
under-utilisation of rail freight was a significant difference to rail freight
missed opportunity that was costing the productivity. Again, significant
Australian economy while standing in investment is required.
More investment is
the way of reaching net-zero targets. Some of the other constraints urgently needed to
“Our freight task is significant and identified as hampering efforts to grow
growing and we need a resilient, reliable market share include: increase the resilience
and efficient national rail freight network • a lack of a level playing field between
to support the economy and community,” modes, making it harder for rail to and productivity of the
she says. compete with road
“Road and shipping cannot alone meet • a lack of interoperability between network.
this demand, and new policies and more jurisdictions - rail operators using
strategic investment is needed to support multiple networks have to manage up
Andrew Harding
greater use of rail.” to seven different regulatory
frameworks
• poor harmonisation of safety
Modal shift standards, operating rules and analysis of rail and road projects to
Earlier ARA research shows that a 10% processes and regulations consider the full range of economic,
modal shift away from road to rail • rail infrastructure gaps impacting social and environmental benefits
between major state capitals in Australia transit time, reliability and availability • completion of the national priority
would reduce the social and health • no national body to mandate programme to enhance freight
costs from road emissions and accidents harmonised principles, standards and interoperability across different
by more than $A 700m per year. processes, and networks. This includes current work to
In addition, with rail freight • a lack of transparent freight data and codify a small number of critical
generating 16 times fewer carbon accurate cost:benefit analysis when national standards and rules, such as
emissions than road, boosting its modal assessing private and public mandatory standards for rolling stock
share is a key strategy to achieve the infrastructure investment projects. approvals, and achieving alignment of
Australian government’s emissions The report suggests several practical train control and signalling technology
reduction target of 43% by 2030 and net steps that could be taken to increase along the eastern seaboard, and
zero by 2050. rail’s modal share, including • adoption of a national regulatory and
Forg chairman and Aurizon managing infrastructure investment with a focus governance model to harmonise
director and CEO, Mr Andrew Harding, on resilience and reliability, enhanced operational standards, systems,
says boosting the role of rail freight on collection of road and rail use and train processes and technologies, which has a
key interstate freight routes, and service reliability data, and a review of dual focus on driving both productivity
particularly between Melbourne, cost:benefit analysis tools to ensure that and safety.
Sydney and Brisbane, should be a key economic, social and environmental “Increased use of rail freight could
focus for governments and the rail benefits are fully considered when bring great economic and environmental
industry. deciding to invest in rail or road projects. benefits but a lack of reliable infrastructure,
“Melbourne - Sydney - Brisbane is a The report makes 10 recommendations: inadequate focus on productivity and
corridor where rail can do the heavy • set a clear freight objective inconsistent standards and regulations
lifting for customers and the economy, • assess the full benefits that freight across the continent are preventing
while significantly reducing carbon projects have to offer this,” says Mr Michael Caltabiano, CEO
emissions for the transport sector,” • promote investment in efficient rail of Australia’s National Transport
Harding says. “Rail freight is up to 16 freight infrastructure Research Organisation (NTRO).
times less carbon-intensive than road.” • ensure a national focus on safety and Fostering better interoperability
One of the key points made in the productivity across Australia’s state boundaries will
Future of Freight report was that the • harmonise complex regulations also need be accompanied by measures
Australian rail freight sector was • promote opportunities to expand the to make the inter-state freight network
operating on legacy infrastructure that rail freight market more reliable and more productive, as
has been built to different standards. • drive policy to ensure the right mode the industry points out.
These different approaches determine is chosen for every freight task “The pandemic illustrated the
the trains that can be used and the • improve freight access to essential role of a strong national
policies and procedures that govern metropolitan areas supply chain and the importance of rail
freight operations across the country. • align freight services to customer as part of our national network, but
The report also identified capacity needs, and more investment is urgently needed to
constraints on the east-west corridor • transparent disclosure of traffic census increase the resilience and productivity
and extreme weather events as having data by state transport departments to of the network,” Harding says. IRJ
34 IRJ The Railway in 2024
The Railway in 2024 - Africa

Projects to watch in 2024

Lobito Corridor extension Ain Sokhna - Marsa


Country: Angola/Zambia
Type: Main line Matrouh high-speed line
Length: 760km Country: Egypt
Type: High-speed
The African Development Bank (AfDB) and Africa Finance Corporation (AFC) have Construction Start: 2022
joined the United States, the European Union (EU), Angola, the Democratic Completion: 2027
Republic of Congo (DRC), and Zambia in signing a memorandum of understanding Length: 685km
(MoU) to develop the 1067mm-gauge Lobito Corridor and the new Angola - Cost: $US 4.5bn
Zambia line. The AFC has been appointed lead project developer to work with the
other signatories. The proposed line runs from Luacano on the existing Benguela The 675km Ain Sokhna - Marsa
Railway in Angola to the Jimbe border crossing, a distance of around 260km, and Matrouh high-speed line will run from
then for another 500km in Zambia to Kalumbila and Chingola to connect with the Ain Sokhna on the Red Sea to October
existing network, which runs across the border to the DRC. AFC president and Gardens, Alexandria, El Alamein and
CEO, Mr Samaila Zubairu, says the project presents a transformative opportunity to Mersa Matruh on the Mediterranean,
enhance regional connectivity, unlock the critical minerals supply chain, promote plus a branch from October Gardens to
trade, create local jobs, and drive economic growth in Africa. Al-Ayat, with 21 stations. In January
2021, the National Authority for
Tanzania Standard-Gauge Railway Tunnels (NAT) signed a memorandum
Country: Tanzania of understanding (MoU) with Siemens
Type: Main line Mobility, Orascom Construction and
Construction Start: 2018 Arab Contractors to design, build,
Completion Lots 1 and 2: 2024 equip and commission the new line.
Length: 1225km Phase 1 will be 460km long and connect
Cost: $US 10.4bn the developing city of El Alamein on
the Mediterranean Sea to Ain Sokhna
The new 1435mm-gauge railway will run from Dar es Salaam via Morogoro, on the Red Sea via the New
Dodoma, Tabora, and Isaka to Mwanza on Lake Victoria, with a branch from Tabora Administrative Capital to the east of
to Kigoma on Lake Tanganyika and north to Kigady. Yapi Merkezi, in partnership Cairo, which is under construction with
with Mota-Engil Africa, was awarded SGR lots 1, 2 and 3 covering the 1090km completion set for 2027. Phase 2 will be
from Dar es Salaam to Tabora in 2018. Yapi Merkezi signed a $US 900m contract 200km long and extend the line from El
in July 2022 to build the 165km Lot 4 from Tabora to Isaka. By October 2023, lots 1 Alamein to Marsa Matrouh. The line,
and 2 were 98% and 95% complete respectively, and work on both sections is which will have a design speed of
expected to finish early this year. Completion of lots 3 and 4 is expected in early 250km/h, will carry freight and
2026, with these sections now 67% and 17% complete respectively. Lot 5, covering passenger services, with express
the 234km from Isaka to Mwanza, has been awarded to China Civil Engineering services operating at 200km/h, regional
Construction and China Railway Construction Corporation and is 36% complete. trains running at 160km/h and freight at
The African Development Bank (AfDB) has agreed to contribute $US 3.05bn 120km/h. Once completed, the line is
towards funding Lot 6 from Tabora via Uvinza to Kigoma, and Lot 7 covering the forecast to carry 30 million passengers
156km section from Uvinza north to Kigady near the border with Burundi. annually, cutting journey times by 50%.

IRJ The Railway in 2024 35


Africa | South Africa

A fresh start for Transnet


South Africa’s rail freight network is in crisis. Philippa Dean explains what steps the government is taking to
turn the situation around and introduce competition.

T
HERE is no doubt that the During this period, Transnet lost two Bessie Mabunda, highlighted TFR’s
international community is CEOs, cancelled the pilot phase tender commitment to digital transformation
closely observing South Africa’s for open access, and presented its to enhance efficiency. A key component
freight transport crisis, and especially recovery plan. While the plan might be of this strategy is a new integrated train
national operator Transnet, and modified to address what is happening planning tool, which is being
wondering what exactly is happening. right now and meet immediate implemented. The system is designed to
Transnet has experienced a shocking challenges over the next 18 to 24 automatically and optimally replan or
year or two, to say the least. Observers months, at least it is sound. reroute trains and will facilitate not
describe the most recent crisis as a On December 1, Godongwana agreed only scheduling and planning but also
complete failure of its port and rail with the minister of public enterprises efficient tracking and tracing of trains,
infrastructure. On November 22, the to issue Transnet with a Rand 47bn locomotives, and wagons, especially
South African Association of Freight guarantee facility, which is effective during disruption. This tool is one of
Forwarders noted that there were “96 immediately and will support the many being explored to improve
vessels waiting at anchorage outside recovery plan and meet its immediate operational performance.
our commercial ports, directly costing debt obligations. Transnet will draw
the economy Rand 98m ($US 5.28m) a down an initial Rand 22.8bn to address
day in direct, sunken costs, at least immediate liquidity needs, such as Theft and vandalism
Rand 26m a day in indirect costs, and settling maturing debt. The impact of theft and vandalism on
impeding at least Rand 7bn worth of The government has rejected an Transnet’s rail network alone could
goods from moving every day.” equity injection because the 2023-24 have brought the organisation to its
Adding to the woes, on October 26, budget is closed and it is confident that knees. Aside from the cost of
officials announced that Transnet the guarantee facility, alongside the continually replacing stolen
Freight Rail (TFR) will need more than swift implementation of the Transnet infrastructure, the impact of delays
Rand 50bn in investment in the next recovery plan, will be sufficient to alone is beyond comprehension; one
five years to increase capacity and resolve Transnet’s difficulties. incident can almost bring the system to
improve performance. The guarantee will include strict a complete standstill or slow train
On November 1, South Africa’s finance conditions that will be continuously operations down to a snail’s pace.
minister, Mr Enoch Godongwana, reviewed and amended as necessary. Your author experienced exactly that
presented the medium-term budget Any further draw downs will be subject on a recent inspection tour with
policy statement in which he observed: to Transnet meeting these conditions. Transnet. What was once an hour-and-
“no modern economy can thrive and The National Treasury will continue a-half journey can now take five hours
grow new industries if rail lines are to work with Transnet to pursue other or more, which has a huge impact on
beset by delays, and ports are unable to initiatives to revive its operations and operating costs. For train crew, what
efficiently handle incoming and financial viability. Transnet will explore used to be four or five return trips in a
outgoing cargo. Transnet’s performance divesting non-core assets, a reduction of shift is probably now just one and in
in this regard has been underwhelming its cost structure, and alternative one direction only.
and its operations have been strained funding models for infrastructure and In August, Transnet introduced an
by a worsening financial state. maintenance requirements. The latter outcomes-based security (OBS) solution
“Recognising the seriousness of the includes but is not limited to, project to combat theft and vandalism on the
situation, the National Treasury is finance, third-party access, concessions, rail network. Transnet awarded
collaborating with Transnet and the and joint ventures. contracts to five security service
Department of Public Enterprises to It is interesting to note that Transnet providers to protect TFR corridors.
ensure that Transnet can meet its currently relies on manual processes for They will introduce the latest state-of-
immediate debt obligations,” train planning and scheduling, resulting the-art crime-fighting technologies,
Godongwana continued. “Broader in a lack of integration. This manual including early warning detection
reforms of the logistics sector will be approach not only allows for potential systems to combat theft, damage, and
guided by the freight logistics roadmap. manipulation, as seen in recent vandalism of essential infrastructure.
The roadmap outlines a clear path for incidents of ghost trains, but also causes The contractors will be held accountable
enhancing efficiencies, introducing delays in scheduling, particularly when for the security of the network and
competition, and leveraging the financial resolving issues. These inefficiencies ensuring that trains are not cancelled or
and technical support of the private sector. significantly impact customer service, delayed because of security-related
Only once these three objectives are operational effectiveness, and the incidents. So far, some improvements
reflected in Transnet’s corporate and broader economy. are being recorded.
operational plans, will there be a discussion During a recent inspection tour with Other initiatives to address theft and
about whether and how the government Transnet leadership, TFR’s acting vandalism include finding an
can provide financial support to infrastructure manager and general alternative to copper cables in high-risk
transform the logistics sector.” manager, rail network and projects, Ms areas. Reducing cable theft also means

36 IRJ The Railway in 2024


that TFR can turn trains around faster, safety as well as rolling stock ownership freight market and provide a new
for a more efficient service. As part of and management. revenue stream for TE.
efforts to improve the condition of the Currently, Transnet is compiling all During the inspection tour, Ms
network and increase capacity, TFR is the necessary documentation to Michelle Phillips, acting CEO of
reinstalling some signalling equipment, facilitate third parties to capitalise on Transnet Group, confirmed that the
with most expected to be in operation the new opportunities presented by the process has not yet been completed and
by next month. move towards open access. This that setting up LeaseCo is very much
Transnet, in collaboration with the includes a network statement, which part of the turnaround plan. The
National Treasury, is focusing on will outline the physical characteristics announcement of its creation is expected
modifying the Public Finance of the network, the specifications of within the next six months, and it will
Management Act (PFMA). The objective trains that can operate on the system, probably take another 12 months before
is to introduce procurement reforms, and the conditions for access. It also LeaseCo becomes operational.
enhance agility and support the describes the services offered, such as Transnet has been trying to improve
recovery plan. The current procurement train marshalling facilities. the performance of the North Corridor
procedures have significantly hindered In parallel, an access charging system with the primary objective of decongesting
Transnet’s efficiency. is being developed that has involved the Port of Richards Bay as part of the
“Our government is supporting us in extensive benchmarking against railways recovery plan. The North Corridor handles
several areas, such as our procurement abroad that have experienced similar roughly 41% of total TFR volumes,
processes, which are significant reforms, such as in Britain, Germany, generates 38% of TFR revenue, and
enablers,” Mr Russell Baatjies, TFR’s Australia and Brazil. The network supports critical markets that contribute
acting CEO, explained during the statement, access agreements and approximately 3% of South Africa’s GDP.
inspection tour. “We are looking at charges will be published on April 1. TFR is currently ramping up the
ways to fast-track these processes that The cost of restoring the network to service to the port by adding seven coal
have traditionally been time-consuming the level required is estimated at Rand trains per week by mid-December,
while ensuring compliance from a 31bn. To restore the network, a team of bringing the total number of weekly
governance standpoint. Considering highly skilled project managers and trains to 28. This equates to about
our recent history, governance is engineers, previously part of the 15,400 tonnes per week. Between
crucial, and we need to stay on the right Transnet Group Capital, has been December 2023 and March 2024, TFR
side of it. However, we are exploring integrated into various divisions. Their will introduce another seven trains,
different methods to expedite these role is to conduct feasibility studies, resulting in 35 trains per week.
processes, so they don’t take an develop engineering designs, and carry TFR is working with road carriers
excessive amount of time.” out project management. and the municipality of Richards Bay to
Additionally, there is another little- reduce congestion at the port. A last-
known internal asset within Transnet, mile strategy is planned whereby road
Open access Rail Network Construction (RNC) hauliers will take freight to inland
Transnet met the deadline to establish which is a highly skilled and terminals and TFR will provide a
an interim infrastructure manager (IM) experienced construction company, shuttle service into the port. TFR hopes
by October 31, which has been one of with the requisite level of capability, to introduce this service in March.
the major hurdles in opening the rail competencies, and skills needed for The Transnet Board is fully behind the
network up to third parties. This will successful execution of some of the senior management team in driving the
come into effect in April. The industry work that will be needed. change required. There is also a far more
is just waiting for the network statement In April 2023, Transnet Engineering positive attitude towards private-sector
to be issued. However, this does mean (TE) launched a tender aimed at participation and customer engagement.
that vertical separation has been establishing a joint venture rolling stock The new leadership appointments are
completed and TFR will be split into leasing company called Transnet expected to be announced by next
two entities: Transnet Rail Infrastructure LeaseCo. The new entity would start by month at the latest. However, 2024 is an
Manager (Trim) and Transnet Freight leasing locomotives to new operators election year, and responsibility for
Rail Operating Company (TFROC). The and then add wagons and other Transnet is set to transfer from the
latter will be responsible for rail freight ancillary equipment later. The objective Department of Public Enterprise to the
operations, yard operation and train is to lower the barriers to enter the rail Ministry of Transport. IRJ

37
The Railway in 2024 - Middle East

Projects to watch in 2024 Oman - UAE railway


Country: Oman/UAE
Type: Main line
Length: 303km
Saudi Land Bridge Cost: $US 3bn
Country: Saudi Arabia
Type: Main line
Oman Rail and Etihad Rail, United Arab Emirates, signed a
Construction Start: 2024
$US 3bn agreement in September 2022 to design, construct
Completion: 2031
and operate a 303km cross-border railway from the port of
Length: 1330km
Sohar on the Gulf of Oman to UAE’s national network at
Cost: $US 7bn
Abu Dhabi via Al Ain. Passenger trains will operate at up to
200km/h while freight trains will operate at up to 120km/h.
A consortium of Italferr, Sener, and Hill International were
Oman Rail and Etihad Rail have formed a jointly owned
confirmed in December as the preferred bidders for a project
company, Oman and Etihad Rail Company (OERC), to
management services contract for the Saudi Landbridge
implement the project and operate the railway. OERC launched
project, IRJ understands. Bids for the contract were received
a prequalification tender in March 2023 for the civil works.
by Saudi Railway Company (SAR) in October 2022 and the
Bidders were invited to prequalify by August 13 2023 for a
consortium has overcome rival proposals from Systra and a
tender to build stations, freight facilities and a rolling stock
consortium of Parsons and Egis. With the project management
maintenance depot.
contract now confirmed, local media reports suggest that SAR
is preparing to start work early this year on the public-private
partnership (PPP) project, which includes constructing a new Tel-Aviv Green Line
950km railway between Riyadh and Jeddah, as negotiations Country: Israel
over the final cost and financing structure for the $US 7bn Type: Light rail
scheme near conclusion. The project itself involves a mixture Construction start: 2019
of upgrades and new line construction and is expected to take Completion: 2028
seven years to complete. Length: 39km
Cost: €2bn

The 39km Green Line will include a 4km underground section,


and will connect Holon and Rishon LeZion in the south to the
centre of Tel Aviv and Herzliya in the north. The line will have 62
stations, including four underground. The TMT consortium of Dan
Buses Company, Electra, and Alstom was chosen by Metropolitan
Mass Transit Systems (NTA) for a public-private partnership
(PPP) to design, finance, construct and maintain the Green Line
in early 2022. However, financial close of the €2bn contract was
finally agreed on December 17 2023. The project is being financed
by a consortium of the European Investment Bank (EIB) and two
Israeli banks: Bank Hapoalim and Mizrahi Tefachot Bank. The
financing agreement will enable TMT to start the second stage of
construction, as well as manufacture 98 LRVs and systems. The line is
expected to open in 2028 and carry 70 million passengers a year.

News | headlines
German Constitutional Court ruling freezes rail infrastructure funding
A ruling by Germany’s
Federal Constitutional
Court has frozen €25bn of
planned as a capital increase
by the federal government in
holding company DB AG using
from emergency pandemic
funding which had not been
used. Objections to this
None of this funding is now
confirmed until the
government agrees a new plan
funding from Germany’s KTF funding is now at risk. reallocation by conservative to spend whatever money it
Climate and Transformation KTF was designed to fund members of parliament can legally put into KTF. This
Fund (KTF) for German Rail climate change mitigation brought the case before the has led to urgent calls for
(DB), agreed by the federal measures without recourse to Constitutional Court, which clarity on DB’s overall financial
cabinet in August 2023 as part tax revenue, drawing on has ruled that this transfer is position by employee
of an additional €40bn for the income from carbon emissions unconstitutional. representatives on the
national rail network over the trading (estimated at €19bn in The ruling resulted in an company’s main board.
four years to 2027. 2024), plus grants or loans from immediate freeze on all KTF Industry stakeholders, new
€12.5bn of the KTF funding government. The fund had a expenditure by the Federal infrastructure manager DB
was planned to finance budget of €212bn to finance Finance Ministry while its InfraGO, and major suppliers
widescale introduction of decarbonisation projects spending programme is based in Germany such as
ERTMS over the next decade, between 2024 and 2027, reassessed. The government Alstom have publicly called for
with €1.3bn to be provided in including rail infrastructure had originally planned to rapid decisions on 2024 rail
2024 and rising to around investment to encourage freight spend €57.6bn of KTF funds in infrastructure budgets and
€3.5bn a year by 2033. to shift from road to rail. 2024, an increase of over €20bn those for the rest of the decade
In addition, a further €12.5bn Of this, €60bn was to come compared with 2023. in order to provide certainty.

38 IRJ The Railway in 2024


News | headlines In brief

China completes major rail projects Australia


The Australian Railway and

C HINA Railways (CR) West and Zhengzhou East railway. The line is expected to Innovation Network (AusRRIN)
opened the Jinxing takes 1h 43min, a saving of 1h take five years to complete. was launched on November 22
Intercity Railway on December 29min. CR plans to operate 61 November 28 saw the official 2023 to coordinate the railway
18. The 101km line links trains per day on the new line. opening of the 206km research efforts of five universities:
Tianjin to Beijing Daxing Trial operation started on Qingbaijiang - Zhenjiangguan Monash University through its
International Airport and has December 2 on the 47km pass line in Qinghai province. Institute of Railway Technology
four new stations. Fangdong Railway running Construction of the 200km/h (IRT), Central Queensland
The line has a maximum from Fangchenggang North on line at an altitude of over University, University of
speed of 250km/h and the the Qinfang line southwest to 2000m was extremely complex, Queensland, University of
fastest train between Tianjin Dongxing City on the including a 12.8km tunnel Wollongong and the University
West and Daxing Airport takes Vietnamese border. The line through porous shale and of Technology Sydney.
41 minutes. Eight trains per has an operating speed of slate.
day are operating on the line. 200km/h. CR is operating nine pairs of Balkans
The 208km Jinan - Puyang For the commissioning trials, trains on the line each day, The European Commission
section of the 407km Jinan - 12 trains per day are being offering an end-to-end journey (EC) has approved €120.5m
Zhengzhou (Jisheng) high- operated. When the line opens time of 1h 26min. and €226.5m respectively for
speed line opened to traffic on to passengers, the journey time The new line connects with railway projects in Albania
December 8, marking the between Fangchenggang and the Chengdu - Qingbaijiang and Montenegro, as part of a
completion of the Jizheng high- Dongxing City will be cut from and Haixi - Xining sections, €680m investment package in
speed project. The line serves around 1 hour by road to 20 which have already been rail and renewable energy in
Jinan and Liaocheng in minutes by rail. completed. Work on the 140km the Western Balkans.
Shandong Province, and Meanwhile, construction Zhenjiangguan - Haixi section = Passenger services have
Puyang, Anyang and Xinxiang started on December 8 of the remains underway and is due resumed between Subotica in
in Henan Province. 315km Guizhou Huangtong - to open in 2024, when it will Serbia and the Hungarian city
The maximum design speed Guangxi Baise railway. The complete an 836km line of Szeged, 170km southeast of
on the new line is 350km/h and 160km/h line is a national between Sichuan and Qinghai Budapest, following an eight-
the fastest train between Jinan Class I single-track electrified provinces. year suspension. The journey
time by rail between Subotica
Moroccan National Railways tenders for 168 new trains and Szeged is now 1h 30min,

M OROCCAN National ONCF also aims to create a structured around three with passport checks taking
Railways (ONCF) has domestic rolling stock components: place on the train.
published a call for tenders to manufacturing industry, which • acquisition of 168 new trains = A memorandum of

supply 168 new trains to replace it says will provide many to be delivered from 2027 to cooperation was signed on
rolling stock reaching the end economic and social benefits in 2030 November 17 to upgrade the
of its working life, operate on terms of job creation and • a fleet maintenance partnership railway between the Serbian
the extension of the high-speed strengthening the national that will see ONCF and the city of Niš and the North
network to Marrakech, and industrial base. manufacturer establish a joint Macedonian capital of Skopje.
provide more commuter A high level of domestic venture to provide routine and A joint working group will
services in Casablanca and Rabat. content will ultimately transform heavy maintenance, and now be set up to define an
As well as 18 high-speed Morocco into “a highly • industrial development, with action plan.
trains, ONCF is looking to competitive platform at the the selected manufacturer to
acquire 150 trains for its continental and global levels,” build a manufacturing plant Belgium
conventional network, to according to ONCF. and develop an ecosystem of The Infrabel board has
operate inter-city, “rapid The national railway says it suppliers and subcontractors in approved a loan of up to €1bn
shuttle” and commuter has received 10 Expressions of order to target export markets. to finance priority projects in
services. It says that the new Interest (EOI) from “the majority Given the importance and its 2023-2032 investment plan,
trains will support strong of international rolling stock complexity of this project, ONCF with the aim of increasing
growth in passenger traffic. manufacturers” in response to says that procurement will be network capacity as soon as
Through investment of a call issued in September undertaken under a multi-stage possible. The first tranche of
Dirhams 16bn ($US 1.59bn), 2022. Its call for tenders is competitive dialogue process. €800m will be drawn down in
2025.

Britain
The government has
announced £3.9bn in funding
to increase service frequency
and improve reliability
between Manchester, Leeds
and York. This will involve
accelerating the Transpennine
Route Upgrade, including full
electrification and purchasing
29 electric trains, and building
a new station in Bradford.
= Amey and Indra have

The tender includes the supply of high-speed trains for a future service extension to Marrakech.
announced that they will work

IRJ The Railway in 2024 39


News | headlines

Pajares Base Tunnel enters service in Spain DB launches


tender for next
generation ICE
G ERMAN Rail (DB)
launched a tender on
December 15 for a new
generation of high-speed
trains - already dubbed ICE 5 -
for introduction in the early
2030s. Bids are being sought
for the first stage in the
process and DB expects to
award the contract in 2025.
DB plans a framework
agreement for up to 95 trains.
The first tranche will be for up
to 33 300km/h single-deck
trains. Each train will be 400m
long with 940 seats, making
them longer, faster and with
more seats than the latest
The new line has reduced the distance between León and Oviedo by 37km. Photo: Adif AV 13-car, 918-seat, 265km/h ICE 4

K ING Felipe VI of Spain that construction of the new gauge to accommodate high- trains, the last of which were
joined prime minister, Mr alignment has been one of the speed services while the delivered by Siemens in 2023.
Pedro Sánchez, and minister of most complex civil engineering western bore is 1668mm gauge, A prototype will be tested
transport and sustainable projects the in world, involving with rail laid on sleepers before the new generation of
mobility, Mr Óscar Puente, on tunnelling at a depth of 1km enabling conversion to 1435mm trains goes into service. DB is
November 29 to officially open thorough the complex geology gauge at a later date. There is a planning for deliveries from
the 50km new alignment of the Cantabrian Mountains. gauge-changing installation at 2032, with two pre-series trains
between La Robla and Pola de Construction of the twin- Campomanes near Pola de Lena. available from mid-2031. The
Lena in Asturias which bore base tunnel saw up to The new alignment with its first 33 trains will be delivered
includes the 25km Pajares Base 5000 personnel and five tunnel gentler gradients will enable by 2034 with follow-on orders
Tunnel. boring machines (TBM) at freight capacity to be increased at a rate of 14 trains per year
Built at a cost of €4bn, the work at the same time. Now by up to 15%, as up to four during the 2030s. The final
new line shortens the distance Europe’s seventh-longest rail additional wagons can now be option must be exercised in 2040.
by rail between León and tunnel, the base tunnel has 58 added to each train. DB says that the next
Oviedo by 37km, and avoids pressurised cross-passages Renfe began operating generation of ICE will set
the steeply-graded route over every 400m along its length, as passenger services over the new higher standards for passenger
the Pajares pass in the well as a 6km emergency access line on November 30, cutting experience with new interior
Cantabrian Mountains. shaft at Buiza and a 3km shaft 1h 3min off the journey time concepts. It will also provide
With a maximum speed of at Folledo for maintenance. between Madrid and Oviedo. step-free access from both 550mm
275km/h and an average gradient ERTMS Level 2 has been Further improvements are and 760mm-high platforms, as
of 1.7%, the new dual-gauge installed on the new alignment scheduled for the first quarter well as higher levels of energy
alignment runs in tunnel for a which has been designed for of 2024, when the introduction efficiency and reliability.
total of 40km or 80% of its length. use by both passenger and of Talgo series 106 Avril high- The new fleet will replace
The Ministry of Transport freight trains. The eastern bore speed trains will cut a further the ICE 1 (built between 1989
and Sustainable Mobility says of the base tunnel is dual 15 minutes from journey times. and 1993) and ICE 3 (1998-
2005), and increase DB’s high-
speed fleet to meet growing
Germany’s longest rail tunnel to connect Dresden and Prague demand.

G ERMANY is to build its


longest railway tunnel as
part of the 150km new line
residential area in Pirna.
However, concerned by the noise
and other environmental impact,
Erzgebirgs Tunnel will be built
between Heidenau, Germany,
and Ústí nad Labem, Czech
DB is taking a new approach
to new train procurement.
After an initial call for tenders,
between Dresden and Prague, a citizens’ initiative put forward Republic. It is expected to be Alstom and Siemens Mobility
German Rail (DB) has the full tunnel alternative, which used by 200 trains day, 75% of both worked with DB to create
announced. The tunnel will has now been endorsed by DB. which will be freight, relieving an independent train concept.
enable passengers to travel “Eventually, it was quite congestion on existing lines in The results of this preliminary
between the two cities in just obvious that the full tunnel the Elbe Valley which are design phase have informed
one hour and at a speed of up variant is the preferred option,” currently at capacity. the ambitious, but achievable,
to 200km/h upon completion in says DB Network project DB will start consultation manufacturer-neutral
the mid-2040s. leader, Mr Kay Müller. “It is with local stakeholders this requirements of the current
The original plans dating clearly ahead on all important year. Pending government tender, according to DB.
from 2018 would have seen the criteria such as environment, approval and the confirmation The deadline for receipt of
new line built only partly traffic and technology, as well of funding, DB expects requests to participate is
underground in Germany, with as financial efficiency.” construction to start by 2032 January 22, with offers due by
a 40m high viaduct through a The twin-bore 30.4km and take 12 years to complete. February 2.

40 IRJ The Railway in 2024


In brief

Europe to strengthen TEN-T network requirements together to develop an open


and interoperable digital

T HE European Parliament
and the European Council
agreed on December 18 to
million passengers a year must
be connected by long-distance
rail to strengthen the
2030 for the core network, 2040
for the extended core network,
and 2050 for the comprehensive
signalling system that will
enable all technologies to
coexist while providing the
significantly step-up efforts to competitiveness of rail versus network, the agreement also highest levels of safety and
build “a sustainable and domestic flights includes better governance for cybersecurity.
resilient” Trans-European • the number of transhipment example by implementing acts = The first passengers were
Transport Network (TEN-T) terminals must increase to for the main cross-border carried by class 717 EMUs
network by agreeing strong meet demand, and handling sections and other specific operating under ETCS Level 2
incentives to increase the use capacity at freight terminals national sections along the nine signalling on the Northern
of more sustainable forms of must improve, coupled with European Transport Corridors,” City Line on November 27,
transport, and to encourage steps to allow the operation of says the European Commission. marking a major milestone in
greater use of intermodal 740m freight trains across the “This, together with greater Britain’s £1.4bn East Coast
services. network alignment between national Digital Programme (ECDP) to
The revised TEN-T • all 430 major cities along the transport and investment plans install ETCS on the East Coast
Regulation will set several TEN-T network must develop and TEN-T objectives, will Main Line (ECML).
mandatory targets: a Sustainable Urban Mobility ensure coherence when priorities
• ERTMS must be rolled out Plan to promote zero and low are set for infrastructure and Croatia
on the entire TEN-T network emission transport, and investment.” Deputy prime minister and
and national legacy Class B • transport links with The political agreement transport minister, Mr Oleg
systems must be neighbouring non-EU reached on December 18 must Butković, says investment in
decommissioned progressively countries will be improved by now be adopted formally. Once the modernisation of the rail
to incentivise the supply integrating Ukraine, Moldova this process is completed by network should reach €6bn by
industry to invest in ERTMS and the six Western Balkan the European Parliament and 2030, and that €1bn is already
• core TEN-T passenger lines partners into newly established the Council, the new rules will being invested. This compares
must allow trains to travel at European Transport Corridors. be published in the Official with the €4bn announced in
160km/h or faster by 2040 “To assure the timely Journal of the European Union April 2023, which the country
• airports handling over 12 completion of the network by and enter into force 20 days later. planned to invest during the
The agreement seeks to boost the use of next 10 years.
intermodal freight services. Photo: Robin Ralston
Europe
European Locomotive Leasing
Group (ELL) has signed a
framework agreement with
Siemens Mobility for up to 200
Vectron multi-system electric
locomotives. The initial
contract is for 60 locomotives
with delivery starting in 2025.

Germany
Siemens Mobility will supply
75 Mireo trains for the Central
German S-Bahn Network

US to help Ukraine improve links with Europe 2025+ (MDSB) centred on


Leipzig and Halle. The €500m

U KRAINE’S connection with


the Trans European
Network for Transport (TEN-
according to USAID. It will
also provide an alternative to
maritime transport via the Black
Korean National Railway
(KNR) have signed an MoU to
assist Ukrainian Railways (UZ)
order comprises 41 three-car
Mireo EMUs for Netinera
subsidiary, Die Länderbahn
T) will be upgraded as United Sea which has been disrupted with seven projects including a (DLB), and 18 four-car Mireo
States’ foreign aid body USAID by the Russian invasion. high-speed line to Poland, EMUs and 16 two-car Mireo
has agreed to invest $US 225m “The signing of the increasing capacity on the line Plus B battery EMUs for DB
in the 75km line between Lviv memorandum with USAID between Odesa, Izmail and Regio.
and Mostyska, under a will have a tangible impact on Reni and the construction of a
memorandum of understanding the recovery of the Ukrainian new traffic control centre. Korea
(MoU) signed on November 24. economy and will contribute to For the high-speed project, Korail demonstrated an
The line would connect the European integration processes assistance will be provided on autonomous inspection robot
planned Lviv logistics hub in general,” says Ukraine’s fleet maintenance, building a for railway infrastructure on
with important Polish cities deputy prime minister for new maintenance facility and December 4. The robot is
such as Kraków and Katowice. reconstruction, Mr Oleksandr training maintenance and equipped with LTE
The line will be dual 1435- Kubrakov. “It is also important operating personnel. KNR will communications, cameras, and
1520mm gauge, but further that this track will be used not undertake preliminary studies Lidar sensors, and can operate
details of the project have yet only for freight, but also for for construction, while Korail autonomously on railway
to be released. passenger transport in the will assist with operation and tracks to specified locations.
The upgraded line is expected direction of EU countries.” maintenance. Hyundai-Rotem The system detects obstacles,
to enable Ukraine to boost its Meanwhile, Korea’s Ministry will supply and maintain transmitting video and alerts
annual grain exports by an of Land, Infrastructure, and rolling stock, as well as the to operators in real time.
estimated $US 500m per year, Transport (Molit), Korail and maintenance facility in Ukraine.

IRJ The Railway in 2024 41


News | headlines In brief

Restored railway gives Zimbabwe access to the coast Netherlands

L ANDLOCKED Zimbabwe Since 2019, $US 200m has November, the line was ProRail has suspended the
has regained rail access to been provided by funding formally reopened and freight introduction of the New
the port of Beira in Mozambique bodies including the African and passenger services Generation Signal (NGS) after
following the reopening of the Development Bank and the resumed on December 11. problems emerged with its
Mozambique section of the South African Development Freight tonnage is expected visibility under certain conditions.
cross-border Machipanda line Community to upgrade the to rise to 3.5 million tonnes a The NGS is much smaller than
from Bulawayo in Zimbabwe. 318km section in Mozambique, year, providing Zimbabwe conventional signals and had
The railway has faced many including straightening the with an economic boost and been going through the
challenges, such as undergoing alignment. much-needed foreign currency. approvals process when the
a failed privatisation attempt Progress was hampered by The railway will also ease problems were detected.
in the 2000s. The state of the Covid-19 pandemic as well road congestion between the
disrepair was eventually such as delays to the supply of rail two countries. An estimated Norway
that there were derailments from Europe and political 300-500 lorries a day cross the Norway has re-merged state-
several times a week despite a instability in northern border at Forbes Border Post in owned operations and
60km/h speed restriction. Mozambique. However, in late Mutare alone. maintenance company Spordrift
with the state-owned

DB begins process to sell logistics division


infrastructure manager Bane
Nor. Spordrift was spun off
from Bane Nor in 2019 with
G ERMAN Rail (DB) launched the sale process
for its logistics subsidiary DB Schenker on
December 19, saying that any transaction must have
However, DB Schenker will need more capital
and flexibility to grow in future, according to DB.
DB will retain all proceeds from the sale,
the intention of opening the
infrastructure maintenance
market up to competition.
“economic advantages for DB in all respects”. mainly to reduce long-term debt. DB also says
With 76,600 employees in 130 countries, DB the sale “would significantly accelerate DB’s Portugal
Schenker is one of the world’s top four logistics focus on its core business and the An Alstom-led consortium has
providers. DB says the international logistics implementation of its Strong Rail strategy,” as won a tender to supply 117
market offers excellent prospects for long-term agreed with the German government. EMUs, the largest single fleet
growth and that DB Schenker has a strong The sale is being managed by Goldman Sachs order in the history of
position in all the main market sectors - land, air and Morgan Stanley Europe. German media Portuguese Trains (CP). The
and ocean freight - as well as in specialised reports suggest the company could be worth order comprises 55 EMUs for
logistics services. around €20bn, with potential purchasers regional services and 62 trains
DB Schenker has contributed very positively including Deutsche Post via its subsidiary DHL, for suburban services.
to DB’s economic growth since it bought Stinnes Kuehne+Nagel, and the Abu Dhabi sovereign
Logistics, owner of the Schenker brand, in 2002. wealth fund ADQ. Sweden
The country’s first four-track
Kazakhstan to build new railway to bypass Uzbek capital section of railway opened on
December 10 2023. The new
12km four-track section is part
of the southern main line and
will boost capacity between
Malmö and Lund from 460 to
650 trains per day.

Ukraine
RegioJet plans to start serving
Ukraine this month with an
overnight service from Prague
to Chop via the Čierna nad
Tisou border crossing in
Slovakia. The new service will
use the 37km standard-gauge
line that runs from the border
Photo: David Gubler to Chop and on to Mukachevo

W ORK began on a new, third border crossing border crossing north of in Ukraine.
November 27 in with Uzbekistan and Tashkent, as well as domestic
Kazakhstan on a new line to terminating across the border traffic to the Maktaraal district,
United Arab Emirates
Etihad Rail plans to open the
bypass Uzbekistan’s capital in Syrdarya. The new line will which lies in a pocket in the
250km Abu Dhabi - Al
Tashkent and connect the have nine new stations and is meandering border between
Dhannah line to passenger
remote Turkestan region with expected to be completed in two countries.
services but only for employees
the rest of Kazakhstan. 2025. Saryagash is now operating
The 152km railway will link Freight traffic between at full capacity, causing of the national oil company
Darbaza on Kazakhstan’s Kazakhstan and Uzbekistan congestion and delays. By Adnoc, under a strategic
southeastern border with was expected to reach 31 million diverting domestic freight onto agreement signed by Adnoc
Maktaraal in the Turkestan tonnes in 2023, 16% up on the the new line, Kazakhstan hopes and Etihad Rail. This marks
region, running entirely through year before. International to be able to increase capacity the first time passenger trains
Kazakhstan parallel with the freight currently moves south through Saryagash by another will operate on the mainline
Uzbek border before reaching from Darbaza to the Saryagash 10 million tonnes a year. network in the UAE. IRJ

42 IRJ The Railway in 2024


News | transit In brief

Sydney Metro West future assured Bangkok


Bangkok Metropolitan

T HE New South Wales Administration (BMA) will


(NSW) state government transfer responsibility for three
has accepted the rail projects with an estimated
recommendations of an total cost of Baht 150bn ($US
independent review that the 4.3bn) to the Mass Rapid
Sydney Metro West project Transit Authority (MRTA).
should continue, and that The projects are the Grey Line
Sydney Metro should complete monorail, the Silver Line light
scoping studies for up to two rail line, and the BTS Skytrain
new stations between Sydney Green Line extension from
Olympic Park and Parramatta. Bang Wa to Taling Chan.
The decision to proceed with
the stations is based on the Canberra
stimulus they will give to The Australian Capital Territory
further housing development. absorb these changed relaxing the high project government has signed a
At the same time the macroeconomic conditions via specifications to improve $A 577m ($US 387m) contract for
government extended the internal value engineering,” affordability. the 1.7km Stage 2A extension
completion date for Sydney the review says. The review urges the state of Canberra’s light rail network
Metro West by two years to The review says that it is government to provide from its current terminus at
2032 to provide “a more critical that the government certainty for new projects after Alinga Street to Commonwealth
sustainable timeline.” maintains investment the current Sydney Metro Park via City West. The
The independent review commitments over the next programme is completed. “The extension is scheduled for
says Sydney Metro has been few months and adopts the NSW government should aim completion in January 2028.
impacted by several changes to most appropriate procurement to provide certainty on future
project scope, funding model and choice of delivery extensions as a priority before Delhi
constraints, inflation, and the partners for Metro West. potential sector-wide Delhi Metro Rail Corporation
Covid-19 pandemic, as well as While recommending demobilisation begins around (DMRC) has awarded Hill
general investment uncertainty extending completion to 2032, 2026. We recommend a clear International a contract to
since the initial business case the review says this should not forward pipeline of staged provide project management
was produced in 2018. be a “deliver the project at any Metro projects be developed services for Phase IV
“Our view is that there is a cost” constraint. and progressed within a comprising the extension of
limited degree to which The review also suggests financially sustainable long- Line 7 from Mukundpur to
Sydney Metro can further that the government considers term envelope.” Maujpur, of Line 8 from
Janakpuri to RK Ashram, and

Suburban rail line planned in Monterrey of Line 10 from Aerocity to


Tughlakabad, representing a

T HE Mexican government Monterrey already has a long-distance passenger trains. total of 65km.
and the state of Nuevo León 39.3km metro system but this A deadline of mid-January has
have agreed with Canadian is limited to the city centre. been set for proposals. London
Pacific Kansas City (CPKC) to Detailed planning work for Mexican president, Mr Transport for London (TfL)
study the introduction of a the Monterrey Suburban Train Andrés Manuel López Obrador, will receive a total of £293.1m
suburban passenger service on route will now be undertaken has prioritised the in government funding in
the 75km east-west freight line with an initial budget of $US reinstatement of passenger rail 2024. However, London’s
connecting Pesquería and García 1.5m allocated by the national services. If concessionaires do transport commissioner, Mr
via the centre of Monterrey. and state governments. not want to introduce Andy Lord, says this is less
An additional track will be Separately, the Mexican passenger services, the than is needed and that TfL
built adjacent to the existing government has invited the government may do so directly will study the impact of
freight line along with 26 main rail freight using new operating another year of a continuing
stations. Passenger trains will concessionaires to propose the companies established by the shortfall in funding.
operate at 100km/h. reintroduction of regional and Mexican armed forces.
Manila
Contract signed for Melbourne Suburban Loop Mitsubishi has awarded a $US
150m subcontract to CAF to

A USTRALIA’s Victorian state government


has signed the first major construction
contract for the $A 34.5bn ($US 22.67bn) eastern
Cheltenham in the southeast and Glen Waverley.
The entire 90km orbital rail line will run from
Cheltenham to Werribee via Melbourne Airport
design and supply a fleet of
seven eight-car EMUs for the
147.26km North-South
section of the ambitious suburban rail loop and was costed at $A 50bn in 2018. Tunnel boring Commuter Railway (NSCR).
project in Melbourne only days after the state is expected to start in 2026 and will be completed The contract will be funded by
Ombudsman criticised how the project was by 2030. the Japan International
conceived. Allan says a second tunnelling contract for the Cooperation Agency.
Victoria’s state premier, Ms Jacinta Allan, next 10km stretch between Glen Waverley and
signed the $A 3.6bn contract for 16km of the Box Hill will be awarded in 2024, completing the Navi Mumbai
26km initial stage of the eastern section of the first 26km section of the loop, dubbed SRL East. The first 11.1km section of
project with a consortium of CPB Contractors, So far, Victoria has committed about $A metro opened on November
Ghella and Acciona Construction. Work will 9.3bn for SRL East and the Australian federal 17 2023, connecting southwest
comprise construction of twin tunnels between government $A 2.2bn. and east Navi Mumbai. The

IRJ The Railway in 2024 43


News | transit In brief
standard-gauge line has 11
Lisbon transit expansion takes steps forward elevated stations and runs from
CBD Belapur in the southwest

T HE Portuguese cabinet has


approved the construction
of the 11.5km Violet light rail
Resilience Plan (PRR), while
the remaining €137.3m will be
provided from the state budget.
projects in Loures and
Odivelas.
The new line is expected to
to Pendhar in the northeast.

Paris
line in Lisbon, confirming a The funding will cover open in 2027 and will The new tram-train Line T12
€527m investment in the construction of the new line interchange with the north- opened on December 10. The
project. and procurement of rolling south Yellow Line at Odivelas. line serves the southwestern
Of the total investment, stock and systems, as well as On December 5, Lisbon suburbs of Paris, running from
€390m will come from the maintenance. It will also fund Metro awarded a contract for Massy-Palaiseau to Évry-
national Recovery and associated urban regeneration design and construction of the Courcouronnes.
4km metro Red Line extension
to Mota-Engil and the Quito
Portuguese subsidiary of Spie The long-anticipated 22.6km
Batignolles International. The Line 1 reopened on December
contract is worth €321.9m, 1. The line was officially
which is below the base price inaugurated on December 21
of €330m set in the tender 2022, with passenger services
issued on January 2 2023. beginning in May, but technical
The project involves problems and political disputes
extending the existing Red forced the line to close after
Line metro by 4km from São only nine days.
Sebastião to Alcântara, with
three intermediate St Louis
underground stations at Metro Transit has awarded
Amoreiras/Campolide, Campo Siemens Mobility a $US 390.4m
de Ourique, and Infante Santo. framework contract to supply
• Lisbon Metro has invited up to 55 new high-floor LRVs.
bids for the supply of 24 three- The base order is for 24 vehicles
car metro trains with an option plus options for up to 31 more
for an additional 12 three-car LRVs, which will replace
The new fleet will help meet growing demand and replace life-expired rolling trains. The value of the contract much of the original fleet, also
stock on the Circle and Red lines. Photo: Shutterstock/Sergii Figurnyi supplied by Siemens. IRJ
is estimated at e138m.

STAY INFORMED. IRJ


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44 IRJ The Railway in 2024


Contacts | editorial Fresh faces
46 Killigrew Street, Falmouth, Cornwall TR11 3PP, UK
Tel +44 1326 313945 Spanish government reshuffles railway posts
Editor-in-Chief Kevin Smith MA
Consulting Editor/Associate Publisher
[email protected]
S PAIN’S new minister for
transport and sustainable
mobility, Mr Óscar Puente, has
respectively, resulting in
the dismissal of Mr Xavier
Flores, formerly general
David Briginshaw CMILT [email protected]
Associate Editor Robert Preston [email protected] made several new appointments secretary for infrastructure.
Business Development Manager Ann Gamble [email protected] that have seen Ms María Luisa There are now two new
Production Manager Sue Morant [email protected]
Domínguez replaced as general secretariats, one for
president of infrastructure land transport and one for
manager Adif. air and maritime transport.
Regional editors She is succeeded by Mr The former is divided into
Australia Tony Duboudin [email protected] Ángel Contreras Marín, three general directorates for
Chile Ian Thomson Newman [email protected] formerly director general of roads, road transport, and
France David Haydock [email protected] maintenance at Adif, who is railways.
Germany Keith Fender [email protected] now also president of high- Mr Carlos María Juárez,
Italy Marco Chiandoni Tel +39 347 4413235 [email protected]
Japan Yoshihiko Sato Tel +81 3 5721 6616 [email protected] speed infrastructure manager Adif’s former director of
New Zealand Richard Worrall [email protected] Adif AV. functional planning, has
USA/Canada William C Vantuono Tel +1 212 620 7240 Mr José Antonio Santano, been appointed to head
[email protected] the former mayor of Irún, the railway directorate.
has been appointed secretary He reports to the secretary
Correspondents of state for transport at general of land transport,
Asia Rashid Ali Israel Jeremaya Goldberg the Ministry of Transport Ms Marta Serrano, formerly
Austria Erwin Reidinger Korea Andy Tebay and Sustainable Mobility, managing director of
Brazil Renata Passos Netherlands Quintus Vosman
Denmark Denis Bowers Pakistan Naeem Qureshi
succeeding Mr David Lucas Valencia public transport
Eastern Europe Roma Nazarov Poland Mykola Zasiadko Parrón. operator EMT.
Hungary Ferenc Joo Spain Miguel Bustos At the ministry, Puente Puente says that the
India Srinand Jha Ukraine Alexander Kava has also redrawn the high- changes should be seen
level organisational chart, as “an attempt to ensure
abolishing the two current that the different modes
Executive offices general secretariats for of transport are treated
Simmons-Boardman Publishing Corp
infrastructure and transport equally.”
1809 Capitol Avenue, Omaha, NE 68102, USA
Tel +1 212-620-7200 Transport for London (TfL) has appointed Ms
President & Chairman A J McGinnis Claire Mann as chief operating officer. Mann is
Publisher, Rail Group Jonathan Chalon currently managing director of British train
Circulation Jo Ann Binz [email protected] operator South Western Railway (SWR). Mann is
returning to TfL having served as director of bus
Contacts | advertising operations between 2017 and 2021. She has also
worked for Docklands Light Railway (DLR), the
UK, France, Ireland, Spain, Portugal, French-speaking Switzerland, Scandinavia, Arriva Trains Wales and First Great Western
Finland, Benelux, The Balkans, Kazakhstan franchises and London Overground.
Michael Boyle, Dorfstrasse 70, 6393 St Ulrich, Austria
Tel +43 676 708 9872 and +49 163 830 8088 [email protected]
Mr Thor Gjermund Eriksen has taken over as CEO
South America, Middle East, Australasia, Asia excluding China and Japan of Norway’s infrastructure manager BaneNor.
North America - CT, DC, DE, FL, GA, MA, MD, ME, NC, NH, NJ, NY, OH, PA, Eriksen was previously CEO of Norsk Tipping.
RI, SC, TN, VA, VT, WV and Eastern Canada
Jerome Marullo, Business Development Manager From 2013 to 2022, he was head of broadcasting at
Tel +1 732 887 5562 [email protected] NRK. Eriksen has also been director and CEO of
Austria, Germany, German-speaking Switzerland, Latvia, Lithuania, Estonia, Amedia, and worked as a journalist and editor at
Poland, Czech Republic, Slovakia, Hungary, Slovenia, Croatia and Serbia. several newspapers. He also served as secretary for
Simone and Simon Fahr, environment and transport at Oslo city council.
Fahr Verlags + Presse Büro eK
Breitenbergstrasse 17, Füssen 87629, Germany
Tel +49 8362 5074996 [email protected] Toni Mäkelä has been appointed as the new CEO
Italy & Italian-speaking Switzerland
of Finnish rail freight operator North Rail. Mäkelä
Dr Fabio Potestà, has served as deputy managing director of the
Mediapoint & Communications srl, Corte Lambruschini, Nurminen Logistics subsidiary since August 2023
Corso Buenos Aires 8, Vo Piano, Int 7, 16129 Genova, Italy and succeeds Ilkka Seppänen, who is retiring but
Tel +39 010 570 4948 Fax +39 010 553 0088 [email protected]
will continue to support the company’s management.
Japan
Katsuhiro Ishii, Ace Media Service Inc
12-6, 4-chome, Nishiiko Adachi-ku, Tokyo 121-0824, Japan
Tel +81 3 5691 3335 Fax +81 3 5691 3336 [email protected]
China and AL, KY
Jonathan Chalon, Publisher
Advertisers Index
Tel +1 212 620 7224 [email protected]
North America - AK, AR, AZ, CA, CO, IA, ID, IL, IN, KS, LA, MI, MN, MO, MS, Amsted Rail 5
MT, ND, NE, NM, NV, OK, OR, SD, TX, UT, WA, WI, WY, Canada (Alberta,
British Columbia, Manitoba, Saskatchewan)
Kontron 13
Heather Disabato (Chicago) Tel +1 312 683 5026 hdisabato@sbpub- IRJ Pro 32/IBC
Chicago.com
IRJ Pro Sales
Pandrol IFC
Ann Gamble +44 1326 567953 [email protected] Plasser & Theurer BC
IRJ The Railway in 2024 45
The last word | construction

Momentum returns to global rail project market


Things are looking up for the global railway construction sector in 2024, as Raouf Ghali, CEO of Hill
International, explains to Kevin Smith.

T HE Covid-19 pandemic,
the war in Ukraine and
the associated supply chain
were draining Hill “more than
it was worth,” Ghali says.
“Now all of a sudden we are
inter-city rail projects last month
while several major Northeast
Corridor upgrades received
best value rather than best
price.”
Rescheduling work as supply
and inflationary challenges focused on growing our business, $US 16.4bn in November. chains have been disrupted
posed by these once-in-a- delivering our services, and Yet with unprecedented has been an essential part of
generation events pushed the looking at the growth of the funding comes major challenges, project management in the last
construction industry to a company, rather than being not least in managing the large few years. Ghali is also an
crisis point. Yet there are signs spread very thinly between number of complex schemes advocate of adopting new
in 2024 that the situation is doing that while also complying underway. technologies to ease the work
finally back to normal; general with SEC requirements,” he Project management burden.
inflation is easing, while oil says. “The amount of focus shortcomings are often blamed Drones played an important
prices are back down to $US from senior management to for schedule overruns and role during the pandemic to
80 a barrel. “This is all part of attend to these reporting rising costs. The lack of skills speed up inspection when
why we’re starting to see the requirements took away our and expertise in the US, where fewer people were working on
construction industry come ability to really look at the so much work is now underway, site. Artificial intelligence (AI)
back,” says Mr Raouf Ghali, business more. There's only so increases the pressure further. is also playing an increasing
CEO of Hill International. much on overhead that we can Ghali says the goal is always role in helping to streamline
“There’s always going to be sustain given our size of to make the process as efficient services, cut manhours, and
challenges with supply chains, business. as possible, and central to this increase the competitiveness of
there’s always going to be “Having a solid balance sheet is participating in the design service delivery. And although
challenges with pricing, and liquidity gives you the stage. “It goes back to the old Ghali feels it is still early days
because as the construction ability to finance mega-projects principle: plan the work and for AI, he says that Hill could
industry heats up, we’re going and be part of mega-projects work the plan,” he says. “Really quickly fall behind if it did not
to start seeing pressure on and create critical mass in one preparing the plan and the consider it. He expects
prices come back again. But I place. It creates the potential design well, and then letting it significant progress here over
think it is a more normal for a lot more profit.” go, really does save a lot of time.” the next 12 months.
process than what we were Other factors include clear “You don’t want to invest
seeing after right after Covid.” communication and an effective too much money because it’s a
With programme, project Investment decision-making process. fast-moving technology,” Ghali
and construction management Hill has invested in its rail Contractor performance has says. “You don’t want to bring
activities spanning the globe, industry expertise, eyeing the potential to be the biggest too many things in-house
Hill International is well- growth in this sector specifically upside of a project and equally because there are other experts
placed to assess the condition through its rail and transit the largest issue. out there that are really investing
of the global construction market group. The Middle “You can manage everything and specialising in it. You want
sector. The company itself has East is a major area of focus, correctly but if a contractor, to tap into what is out there,
gone through a considerable including the Saudi Landbridge whether it is for financial or and tailor it to your needs. It is
transformation in the last 12 project, for which Hill was technical reasons, is unable to a matter of coordination of
months. Its strategic merger confirmed in December as the perform there’s very little understanding where it could
with Global Instructure preferred bidder for a project project management can do,” lead. I think everyone in the
Solutions (GISI), which was management contract in Ghali says. “Selecting the right industry who wants to be at
completed in December 2022, consortium with Sener and contractor is an essential part the forefront of technology is
has significantly expanded the Italferr (p4). Ghali is also of the recipe. It’s about getting looking at this.” IRJ
scope of its activities and optimistic about expanding
potential to secure new business. the company’s rail activities in


Hill International is the Balkans and southern
continuing to serve customers Europe, areas where Hill is
under the Hill International already active, as well as North
brand but as part of GISI’s Africa, including Egypt where Selecting the
Engineering & Consulting the company has worked on
Services platform. Ghali explains the Cairo monorail project.
right contractor
that the merger was necessary
due to Hill’s liquidity, debt
He is though, perhaps, most is an essential
optimistic about the US market
and financial situation, as high where spending from the Biden part of the
interest rates in 2022 made administration’s $US 1 trillion
partial debt refinancing Infrastructure Investment and recipe.
prohibitively expensive. Also, Jobs Act is fuelling a construction
as a public company, the boom. With $US 102bn of Raouf Ghali
associated costs of complying funding available, the rail sector
with United States Securities is a significant beneficiary: the
and Exchange Commission federal government announced
(SEC) reporting requirements $US 8.2bn in funding for 10

46 IRJ The Railway in 2024


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