HIGH SPEED RAIL – CHALLENGES &

OPTIONS: INDIAN PERSPECTIVE

Rajesh Prasad, IRSERajesh Prasad, IRSE

High Speed Rail Corporation of India Ltd.High Speed Rail Corporation of India Ltd.

A subsidiary of RVNLA subsidiary of RVNL

CONTENTS

I. Need of High Speed Rail in India

II. Key Issues, Challenges and Few experiencesII. Key Issues, Challenges and Few experiences

III. Implementation Options

WHAT IS HIGH SPEED RAIL?

� As per UIC definition, trains running at speed of 200 kmph onupgraded track and 250 kmph or faster on new track are called HighSpeed Trains.

� These services may require separate, dedicated tracks and "sealed"� These services may require separate, dedicated tracks and "sealed"corridors in which grade crossings are eliminated through theconstruction of highway underpasses or overpasses.

Country In service (Length) Under project/

construction (Length)

Planned (Length)

Spain (Adif) 2,869 KM (1,783 miles) 2050 KM (1,274 miles) 238KM (148 miles)

France 2,036 KM (1,265 miles) 210 KM (130 miles) 2,616 KM (1,626 miles)

Germany 1,285 KM (798 miles) 378 KM (235 miles) 670 KM (416 miles)

Italy 923 KM (574 miles) - 395 KM (245 miles)

Turkey 538 KM (334 miles) 815 KM (50-6 miles) -

Belgium 209 KM (130 miles) - -

United Kingdom 113 KM (70 miles) - 204 KM (127 miles)

HIGH SPEED LINES IN EUROPE

United Kingdom 113 KM (70 miles) - 204 KM (127 miles)

Switzerland 35 KM (22 miles) 72 KM (45 miles) -

Netherlands 120 KM (75 miles) - -

Portugal - - 1,006 KM (625 miles)

Sweden - - 750 KM (466 miles)

Poland - - 712 KM (442 miles)

Russia - - 650 KM (404 miles)

Total 8.128 KM (5,051 miles) 3.525 KM (2,190

miles)

7,241 KM (4500 miles)

COMMERCIAL VS SOCIAL

• Railway has social obligation to run transport service for all the area of country irrespective of profit motive. It can not close uneconomic lines

• It can not increase fare due to adverse political impact even though fuel cost mountingthough fuel cost mounting

• It has to generate enough resources for efficient maintenance & replacements of assets on its own

WHY HSR IS REQUIRED IN INDIA ?WHY HSR IS REQUIRED IN INDIA ?

ENERGY EFFICIENCY

High Speed saves Energy Costs and reduces Greenhouse Gases

Plane 51.1

29.9Private Car

0 10 20 30 40 50 60“Fuel equivalent grams” per passenger-kilometer

High Speed

Railway

Bus 18.3

17.6

12.1

Classic Train

LAND REQUIREMENT

A HSR-line allows more passengers than an six lane highway per hour

Elevated rail corridors reduce the hassle of Land Acquisition.

Land requirements are Smaller

35 m

DECONGESTION AND CAPACITY ADDITION

High Speed Rail Motorway

Double Track 2x3 Lanes

12 Trains per hour per Direction 4500 Cars per hour per direction

1000 Pax/Train 1.7 (Average) Passengers per car

Capacity = 12000 Passengers

per hour

Capacity = 7650 Passenger per

Hourper hour Hour

Reduction in commuting time between cities and added capacity gives an

excellent opportunity for decongestion of the mega urban centers and

growth of smaller towns and other cities.

INCREASING URBANIZATION

The major challenges faced are:

� Major Urban centers are severely congested:

� Dramatic growth in vehicle ownership in the past decade.

285

377

473

590

300

400

500

600

700

decade.

� Accessing jobs, education -becoming increasingly time-consuming.

� Billions of man-hours are lost with people stuck in traffic.

0

100

200

2001 2011 2021 2030

Urban Population in India (in Million)

Explosion in Inter City Travel

India’s urban population - 285 million reported in the 2001 census and 377 million in 2011 census.

McKinsey Global Institute (MGI) projects - 590 million by 2030 (40% of India’s total projected population).

INCREASING URBANIZATION

projects - 590 million by 2030 (40% of India’s total projected population).

The rapid urbanization in the country has triggered a growing demand for inter city traffic between metropolitan cities and 2nd and 3rd tier cities.

In absence of HSR, passenger traffic of Airlines/ Car users is growing at 15-20%

DECONGESTION of Metropolitan cities

Tier I

Tier IITier IITier I

City

Tier II city

Tier I

City

Small towns and Tier II & III Cities

Tier I

City

Tier II

city

TRAVEL TIME ( Trigger for modal shift)

Delhi (city centre)

(city centre)Delhi AirportChandigarh

Airport

.75 hr 30 min1.25 hrs at Terminal + 1 hr Flying timePlane

Journey time for air travel involves travel to airport, away from city centers and waiting

time at Airports. Distance between DELHI to CHANDIGARH is 245 Km.

Total time: 3.5 hrs

Plane

Delhi (city centre)

Chandigarh(city centre)

Total time: 1 hr

High Speed

Railway

HSR is energy efficient and is less polluting than Road/Air travel.

Indian imports about 80% of its oil requirement. HSR will use indigenous energy resources like thermal/hydel/nuclear based energy

NEED FOR HSR IN INDIA

Economically as well environmentally, Rail based Transport

system is ideally suited for India.

70

80

90

100

Modal share

(%) Road

DECREASING MODAL SHARE

India became a decidedly road-dominant economy in the beginning of the eighties with the railways losing out in respect of both freight traffic and passenger traffic.

0

10

20

30

40

50

60

1950-51 1960-61 1970-71 1980-81 1990-91 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05

(%) Road

Modal share

(%) Railway

Modal share

(%) Airline

Introduction of TGV service in

1981-83 � Existing long distance rail services have difficultiesin competing with road and air modes of transport,

� The new HSR lines can stop the decline of the

railway’s share on the long distance transport

segment along those corridor.

IMPACT OF INTRODUCTION OF HSR

Evolution of first Class rail traffic in France

Before and after opening of the first HSR line

segment along those corridor.

� It provides an attractive transport offer in terms of reduced travel times and comfortable journey.

� Despite the high investment cost it is economically

sustainable and need of the hour.

PROJECTS WITH RVNL

�Ministry of Railways has transferred 110 projects� Strengthening of Golden Quadrilateral and Diagonals 58 projects

� Provision of Port connectivity and corridors to hinterland 34 projects

� Kolkata Metro Rail 4 projects

� Workshops & Others 14 projects

�Projects completed upto March’2013 36

�Projects yet to be sanctioned 03

�Project under implementation 71

�Total Cost of Project in hand ~ 45000 cr.

RVNL & HIGH SPEED RAIL

• Ministry of Railways has directed RVNL to form a SPV forimplementation of High Speed Rail projects.

• High Speed Rail Corporation of India Ltd. (HSRC)incorporated on 25th July, 2012 as a 100% subsidiary ofRVNL.

• HSRC will undertake:• HSRC will undertake:

– project activities for Mumbai-Ahmedabad corridor such aspreparation of project related studies

– preparation of the technical standards for High Speed Rail

– providing support to Ministry of Railways and Government ofIndia in finalizing financial and implementation models.

– carry out similar activities for any other corridor decided by theGovernment.

KEY ISSUES & CHALLENGESKEY ISSUES & CHALLENGES

KEY ISSUES & CHALLENGES

System

Integration

(1) Political Will

(3) Economic &

Financial Viability

(7) Selection of

Technology

(2) Selection of

Project Corridor(s)

(6) Policy Framework

(4) Financing

HSR Project(s)

(5) Land Acquisition

High Speed Rail

Development

(1) POLITICAL WILL

� Each HSR corridor will have a long gestation period and

will be highly capital intensive, so, strategic thinking is

required at the Apex level for implementing in a

programmed manner

� Coordination among Central Government Ministries, State

Governments and Government Agencies

�Success stories- National Highways, Airport up-

gradation, Yamuna express-way

(2) SELECTION OF PROJECT CORRIDOR(S)

FOR IMPLEMENTATION

� Vast country – Many potential corridors - Selection of

pilot Project;

� Economically/financially viable projects to be given

priority;

� Willingness of local governments to participate in the

project by way of land and funding support.

(3) ECONOMIC & FINANCIAL VIABILITY OF THE

PROJECT

� High capital cost will impact viability

� HSR will be a dedicated line; High demand risk due to

higher tariffs as compared to conventional rail.

� Emphasis on other alternative revenue sources like Real

estate revenues, carbon credits, cross-subsidy from road/air

travelers.

(4) FINANCING OF THE PROJECT(S)

� The high capital costs of HSR makes it a financing challenge.

� GOI may not fully fund the corridors.

� Most state governments will have to raise finances by � Most state governments will have to raise finances by extra levies, real estate etc. even for part funding

� Private sector may not have adequate financing capability to fund the large HSR projects. Proper project structuring by unbundling the projects into smaller packages may be essential.

�Funding by multilateral and bilateral funding agencies

(5) LAND ACQUISITION

� Critical due to stringent alignment requirements

� HSR corridors pass through conurbations or sensitive

land;

� Strong public protests adversely affecting large number

of projects.

�Mix of alignment choice- grade/ elevated/ tunnels

(6) POLICY FRAMEWORK

� Robust policy framework for:

� Seamless implementation of projects

� Assurance for attracting International investors � Assurance for attracting International investors

� Creation of National High Speed Rail Authority

(7) SELECTION OF TECHNOLOGY

Choice of Technology:

A) Fixed Infrastructure:

� Mix of Embankment/Elevated/ Underground Structures and

their dimensional control;

� Construction Gauge;

� Fencing of the complete track/elevated track;

� Electrical Installations.

B) Fast Upgrading Technology

� Rolling Stock

� Signaling and Communication

� Train Control

� Fare Collection

INTERNATIONAL CASE STUDIES

TGV, FRANCE

French Govt.

The first opened in 1981

Borrowing from the international markets to enable it to undertake

major projects but not on a particular project

basis. This funding is supported by

government guarantee but is restricted to the amount that RFF can repay from the access

fees

The rolling stock for the TGV lines is procured

by SNCF and is funded through lease commitments

SNCF - French

national rail operator

Réseau Ferré de France

(RFF) – State owned

Access Charges(for use of rail infrastructure)

The first opened in 1981 between Paris and Lyon (480 Km) and now total

network 1887 km. French govt. plan to have new 2000

km HSR lines by 2020.

TGV, FRANCE

� In addition to borrowings, the TGV lines have also been developed with grant funding from local sources. Funding pattern for three TGV lines are:

Funding by Source TGV Est East Rhine Rhone Brittany loire

French State 39% 31% 32%

Regional funding 24% 29% 35%

RFF 22% 26% 33%

SNCF 2% 4% n/aEU 10% 8% n/a

Luxembourg 4% n/a n/aSwitzerland n/a 3% n/aSwitzerland n/a 3% n/a

Concession model Partnership contract

► Rail operators pay an access charge based on their actual use of the infrastructure

► Demand risk lies with the concessionaire

►RFF pays a rental or availability fee based on the performance of the private sector partner

► Demand risk remains with RFF

Forms of PPP

models

followed by

RFF to create

Infrastructure

HSL ZUID, NETHERLAND

Dutch govt –

6 D&C contractors

One D&C Network

Substructure

• 125 km line between the

Netherlands (Amsterdam)

and Belgium border

Infraspeed Consortium: Fluor Daniel BV, Koninklijke BAM/NBM AmstellandNV, Siemens Nederland NV, Siemens Transportation Systems, InnisfreeLimited and Charterhouse Project Equity Investment Limited30 years Concession on DBFM (PPP)

basis

HSA

One D&C

contractorRail Systems

Network

Connections

Passenger

Transport

and Belgium border

(Schiphol).

• This lines provides

connectivity of Amsterdam

to Brussels and Paris

HSL ZUID, NETHERLAND

The PPP did not include the transfer of any demand risk. Infraspeed is

remunerated on an availability basis, subject to deductions for unavailability of

the infrastructure.

The Dutch government finances:

� The substructure of the HSL

� The PPP infrastructure payments to Infraspeed

� These are partly financed by revenue from HSA Total costs: €7.2bn.� These are partly financed by revenue from HSA Total costs: €7.2bn.

The value of the PPP element of the project was approximately £1bn. The £1bn

project financing for the PPP includes:

� €605m syndicated term loan (comprised of two Senior loans with a term

of approximately 27 years)

� €119m subordinated debt bridge facility

� €15m working capital facility

.

TAIWAN• A concession to finance, construct, and operate the High Speed Rail System for a period of 35 years

and a concession for HSR station area development for a period of 50 years.

• Demand risk transferred to the private

sector operator

• The link Taipei to Kaohsiung - total length

of 345km.• The project had a construction value of

approximately US$18bn.

Taiwan Govt.

10 % of yearly earnings to government for further HSR

Consortium led by

Kawasaki Heavy IndustriesTaiwan High Speed Rail Corporation:

Alstom Transport SA of France and

Siemens AG of Germany

Procurement of Rolling Procurement of Rolling

Stock

government for further HSR development during the

HSR operating concession period regardless of the

performance of the concession company.

The accumulated amount could not be less than

US$3.4bn.

IMPLEMENTATION OPTIONS

IMPLEMENTATION OPTIONS

Considering the case studies, following could be the

implementation options

� Non – PPP Option: The project are implemented by the

Government on EPC basis

� PPP Options

� Option 1: Design, Build, Finance, Operate and Transfer� Option 1: Design, Build, Finance, Operate and Transfer

(DBFOT) of the entire project by a single Private Developer

� Option 2: Unbundling the project into different components, so

as to make the project components attractive to private players

from the perspective of affordability in terms of size and risk

allocation:

� B&T (Fixed infrastructure)

� DFOT (Train operations)

IMPLEMENTATION OPTIONS

� Whether project is implemented through PPP or partial

Government funding route, pre-construction activities should

be started in a programmed manner – Government guidelines

� MOR has already created a company named High Speed Rail

Corporation of India as a subsidiary of RVNL.Corporation of India as a subsidiary of RVNL.

FUNDING OPTIONS

� Project Development Activities

� A separate fund may be created

� To be recovered from viable projects along with additional fee

� Rolling fund for further project development activities

� Funding Support for PPP projects:

� Viability Gap Funding� Viability Gap Funding

� Multilateral/Bilateral loans by providing Centre government

guarantees

� Centre government guarantee for Long term Bonds of Project

SPVs

FUNDING OPTIONS

� Funding Support for Non-PPP Projects

� Directly funded by Centre/State Governments

� Other Sources of Funds

� Revenue share from Concessionaires (train operators)

� Contribution from State Governments� Contribution from State Governments

� Real Estate Development

STATUS OF PREFEASIBILITY STUDIES

Project Corridors Status of Prefeasibility Studies

Pune – Mumbai - Ahmedabad Final Report submitted.

Delhi – Agra-Lucknow-Varanasi-Patna

Final Report submitted.

Howrah –Haldia Final Report submitted.

Hyderabad-Dornakal-Vijaywada-Chennai

Draft Final Report submitted.

Chennai-Bangalore-Coimbatore-Thirvanantpuram

Draft Final Report submitted.

Delhi – Chandigarh - Amritsar Consultant yet to be engaged

Delhi-Jaipur-Ajmer-Jodhpur Consultant yet to be engaged

State: Maharashtra/Dadra-Nagar-Haveli (UT)/ Gujarat

Main Features

Route length 546 km

Maharashtra -176 km

MUMBAI-AHMEDABAD

HIGH SPEED RAIL

Maharashtra -176 kmDadra-Nagar-Haveli (UT) 6 kmGujarat -364 Km

MUMBAI-AHMEDABAD : MAIN FEATURES

Stations and Terminals:

2 Main Terminal Stations in Mumbai, and Ahmedabad

3Intermediate Stations in Navi Mumbai, Surat and Vadodara.

1 Depot : Main Depot in Ahmedabad (Geratpur)

MUMBAI-AHMEDABAD : MAIN FEATURES

Speed:The operation speed has been assumed to be 350kmph.

The best travel times at this speed (without stops)1’52”.(Avg commercial speed will be 286 kmph)

At the horizon year 2021, this operation speed will be theworldwide standard.

A 350 Km/h operation speed provides 12 minutes time savingsbetween Mumbai and Ahmedabad compared to a 300 Km/hspeed although energy consumption increases by 27%

INVESTMENT COST

• Construction - @ Rs.80 Cr per route Km ˜ Rs 800Million/Km

• Estimated – Rs 45,000 Cr (year base 2009)• Estimated – Rs 45,000 Cr (year base 2009)

• Rolling stock – Rs 5000 Cr for 2021 HSR offer

TALGO MODEL

� Revolutionary concept � Lightweight construction� Articulated union between cars� Low floor coaches� Independent wheels� Aerodynamic design

Speed: 130 km/h in tests

� First commercial Talgo service in Spain� Aluminium construction� High comfort level for passengers� Open gangway between cars� On-board services and AC equipment� Talgo Maintenance services

Speed: 120 km/h in comercial servicies

� Guidance system

� Very High Speed� Lowest energy consumption in HS� Lowest noise emissions in HS� Lowest weight in HS� Great interior space� Best in the world in accessibility

Speed: 350 km/h

� High Speed� 100% Spanish Technology� First locomotive with variable gauge

system� Dual voltage

Speed : 260 km/h

1942194219421942 TALGO I

1950195019501950 TALGO II

2001200120012001 TALGO 350

TRAVCA

� Seats and Night Couches � Tourist, 1st Class, 1st Class

TALGO TECHNOLOGICAL DEVELOPMENTS

� Automatic variable gauge system in ’69� Night and day services � Quality in manufacturing and maintenance

(more than 45 years of commercial service)

Speed: 200 km / h

� Natural Tilting � Pneumatic suspension� Increased speed to 30% while maintaining a high

level of comfort� Munich test bench: 500km / h.

Speed: 220 km / h

� Push-Pull Diesel Intercity train� Automatic variable gauge system in power heads� Multiple possible configurations� World Record in traction diesel 256 km / h

Speed: 220 km / h

� High Speed� Interoperability� Change width� Low energy consumption� Low noise� Accessibility� T250: Dual Voltage� Hybrid: two diesel engines (1800, vel 220 km /h)

Speed: 250 km / h

� Low consumption � High capacity 3+2� Modularity� Flexibility� Use of recyclable materials� TSI European Standards

Speed: 380 km / h

1968196819681968 TALGO III

1980 1980 1980 1980 PENDULAR TRAIN

1998199819981998 TALGO XXI

TALGO 250, 250 Hybrid

2012 2012 2012 2012 NEW TALGO HIGH

SPEED PLATFORM “AVRIL”

PASSENGERS COACHES

� Tourist, 1st Class, 1st Class PMR, Etc., Couches� Bistro and Restaurant Couches� Tourist , 1st Class, 1st Class PMR, Etc., Cabins� Super Reclining Seats Couches

Speed: 160-220 km / h

Very High Speed

High Speed

THEIR TRAINS PORTFOLIO

Intercity

Locomotives

PRINCIPLES OF TALGO TECHNOLOGY

Lightweight construction Lower traction cost and higher acceleration

Articulated union Higher acceleration and increased safety

Guided axles

Independent wheels

Natural tilting

Higher acceleration, increased safety and lower maintenance cost

Increase comfort, decrease noise and track adaptability

Higher speed on curves and higher confort

LIGHTWEIGHT CONSTRUCTION

• Lower traction cost

• Higher acceleration

ADVANTAGES:

ADVANTAGES OF THEIR TRAINS

• Lower track interaction

• Less aerodynamics drag

•Higher passive security

•Guidance facility

• Lower maintenance and higher reliability

ARTICULATED UNION BETWEEN CARS

ADVANTAGES:

GUIDED AXLES

• Higher acceleration

• Increased safety

• Lower maintenance cost

INDEPENDENT WHEELS

ADVANTAGES:

• Increases comfort

• Decreases noise

• High track adaptability

ADVANTAGES OF THEIR TRAINS

•Zero energy consumption

•Maximum reliability due to its simplicity

•Zero maintenance and manufacturing cost

•Improved passenger comfort

•No additional investment on infrastructure needed

•Higher speed in curves

NATURAL TILTING SYSTEM

ADVANTAGES OF THEIR TRAINS

CHANGE OF GAUGE WHILE MOVEMENT

BASEL TO PARIS BY TGV TRAIN IN 2009

HIGH SPEED TRAIN BY SNCF FROM PARIS TO GARE DU

CREUSOT IN 2012

HIGH SPEED TRAVEL MADRID TO CORDOBA IN 2012

VISIT OF TALGO MAINTENANCE DEPOT IN 2012

SNCF WORKSHOP AT ROUBEN IN 2012

FOOT PLATE INSPECTION BETWEEN MADRID AND

CORDOBA IN HIGH SPEED TRAIN ON 05.06.12

DERAILMENT OF SANTIAGO DE COMPOSTELA TRAIN

CRASH - SPAIN

SPAIN DISASTER: TRAIN JUMPS OFF THE TRACKS ON APPROACH

TO NORTH-WESTERN CITY OF SANTIAGO DE COMPOSTELA

SPAIN KILLING 80 PASSENGERS

In Spain there is a provision of refund of 100% fare if thetrain is late by more than 5 min. In this case destination wasabout 5 kms and only 5 min was left to reach platform atdestination. European Rail Traffic Management System(ERTMS) is normally available for High Speed route to takecare of such eventuality. In this case it was about to becare of such eventuality. In this case it was about to beprovided in next few days. The conventional system AFSA byDymetronics was discontinued only few days back and thenew system ERTMS was not in place. The driver was underpressure to reach destination within the permitted time andTechnology was not there to check and control. It seems tobe Human Error with System Failure and gives a feeling as ifit had happened in India.

THANK YOU