Trends in railway technology
• upstream migration of technology
• globalisation
• privatisation of operating railways
• commercialisation of management criteria
Railway privatisation
– commercialisation of business deliverable
> true of less privatised railways
> eg Deutsche Bundesbahn
• business case for high speed train
• connect all cities where passenger journey time
• < half car and < twice air journey times
> eg SNCF
connect all cities where passenger journey time < 2.5 hours
> investment in TGV, ICE and Pendolino train technologies
> very successful market result
Railway privatisation
– commercialisation of technology management
• EU market led passenger traffic volume increase
• this prioritised technology
> eg mobile block signalling – track capacity up 40%
> eg double deck vehicles
> eg Pendolino tilting train to increase speed on existing track
Technology in the railway industry
• cross border inter-operability of trains very limited
• R&D expenditure for same objectives duplicated many times internationally
• manufacturing economies of scale limited to national level and not
aggregated internationally
• railway services determined by engineering ‘push’
rather than customer led business case ‘pull’
Railway privatisation
- restructuring the value chain
• most railways duplicate technology development
> eg crashworthiness
> eg timetabling software
> eg GTO thyristors
• cost saving from either
> international R&D collaboration eg EPRI in power generation
> shifting technology from operating railway upstream to
commercial suppliers
Railway privatisation
- globalisation
• new value chain globalises railway technology market
• eg TGV/ICE in Korea, Spain
• dominance of global suppliers – eg Bombardier, Siemens
• supplier market share consolidation
Classic aims of privatisation
• wider share ownership
• raise government revenue
• de-politicisation of decision making
• liberalisation of competitive product markets
• strategic collaborative benefits for the industry
• injection of fresh management expertise
• new sources of equity capital investment
• competitive service ethic
• degree of fulfilment in railway privatisation ?
Models of railway privatisation
• implemented in Sweden and UK
• concept of separation of track and train
• analogous to air travel separates airport and plane
• so track = natural monopoly
• so train = competitive environment
• is this view valid ?
• not implemented in France or Germany – they are most successful
railway systems in Europe
Models of privatisation
• French water industry
• state retains ownership of asset
• places competitive commercial operating contracts
SWOT of railway privatisation
+ competition at service level means better service
– lack of coordination – delivery and responsibility eg safety
– problem of asset valuation eg Railtrack = £4bn?
Pitfalls of railway privatisation
– UK experience
pre 1945
• network developed regionally meaning
• lack of common power – three mainline power solutions of
> 25K overhead AC catenary eg London-Edinburgh
> high speed diesel eg London-Derby, London- Bristol
> 3rd rail 750V DC eg London-Brighton
• cannot operate one train across UK network _
• all London stations are termini – few through routes
• major airports not on main rail network
• Not a strategic multi-modal transport solution
post 1990
• creation of Railtrack – is asset worth only £4bn?
• train and track are integrated in high technology solutions
• issues of investment for railway of the future
• issues of social route subsidies
• issue of safety – who takes responsibility?
• demise of Railtrack
• imminent demise of Strategic Rail Authority
• revert to government control ?
Russian Railways today
• restructuring via privatisation
> over 30% of freight traffic now handled by 80 private operators
• new and replacement rolling stock - deploy new technologies
• these two processes interact
• age deterioration of the rolling stock
> 65% for passenger wagons
> 87% for diesel locomotives
• 47% growth in freight demand by 2010
• = a very large rolling stock procurement requirement
• current capacity of Russian rolling stock suppliers Severstaltrans
Komolskoe and Transmashholding insufficient
The railway of the future
- parameters for success
• a comprehensive national plan
• multi-modal compatibility eg Sheremetyevo on rail?
• a service target – timetable, quality, safety etc
• a technology path
• an investment schedule
• optimal engagement of the private sector
> in service operation
> in upstream technology development and supply
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