Steel Authority of India in JV with Burn Standard

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The Steel Authority of India Limited has signed a joint venture agreement with Burn Standard Company Limited for setting up a wagon components manufacturing facility at an estimated cost of $40 million.

The JV will produce the component from BSCL’s facility at Jellingham, Purba Medinipore district, in West Bengal and will have a capacity to produce 10,000 bogies and 10,000 couplers per annum.

Chief Minister Ms Mamata Banerjee said:

“I had announced the project in my 2010 budget speech and Railways have assured annual off take for 5,000 units. It will be complete by 2013 and not 2014 as planned. ’’

SAIL Chairman C.S. Verma stated:

“We are on the lookout for new markets and segments, where we can refocus our opportunities to supply more value-added steel. Railways, which require stainless steel and other special grade steel items for manufacturing of various types of passenger coaches and goods wagons, as well as the cast steel frames (bogies & couplers) for these coaches, will be one such potential segment for SAIL.”

“The deal is very important as the manufacturing facility would meet the requirements of Railways and industry. This assumes special significance considering the fact that bogies and couplers are in short supply,” Keshav Chandra, Railway Board Member (Mechanical) stressed.

As per the Vision 2020 document of the Railways, the demand for wagons from Indian Railways and other wagon users will go up sharply, thus pushing the demand for wagons and in turn for bogies and couplers in turn.

Unions claim ‘over 20,000 jobs at risk’ on UK railways

A. Samuel
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Unions have claimed that ‘over 20,000 jobs on the UK’s railways could be lost’ as a result of the government’s reforms to the rail industry.

As part of its plans for the future of the rail industry, the government is asking train operating companies and Network Rail to outline how they will make cost reductions in line with the recommendations of the Rail Value for Money review led by Sir Roy McNulty.

More than a quarter of these savings – £260m a year – ‘will come through staffing cuts’, the unions launching the Action for Rail campaign said.

The unions said that according to the McNulty Review this could ‘lead to around 20,800 job losses’, including rail guards, staff in ticket offices and on station platforms, catering staff and workers in maintenance and signalling.

Surveys ‘consistently suggest that a lack of staffing is one of the key concerns of rail passengers’, and more than 10,000 commuters and train users have so far registered their opposition to staff cuts in response to union campaigns.

The McNulty Review calls for the closure of 750 Category E (or small-staffed) station booking offices around the UK.

Leaked Department for Transport emails ‘indicate that agreement has already been reached with one train operator, London Midland, to completely close or severely reduce opening hours at ticket offices at 86 of its 90 stations, leaving many deserted at all hours and leading to the loss of around 100 staff’.

This week the TUC, ASLEF, RMT, TSSA and Unite are launching an Action for Rail campaign which ‘will bring passengers, campaigners and unions together to register their opposition to the government’s proposals’.

Tensar’s infrastructure project for Euro 2012

A. Samuel
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Creating a 17.9 km bypass to improve traffic flow, the new Gdansk road is being built as part of a programme of infrastructure improvements which includes those for the forthcoming Euro 2012 football tournament.

Tensar International’s TriAx® design solution has been used in the sub-base to help combat differential settlement across the poor soil of the Wistula river delta and minimise frost heave caused by Poland’s severe winters.

“The ground has a high water level and the typical weak organic consistency of estuarine silt deposits,” comments Dr. Jacek Kawalec, Tensar’s Eastern European Business Manager.

“While the main support is achieved through concrete piling, the consulting engineers were concerned to reduce the effects of any possible differential settlement.

“They asked us to provide a Tensar TriAx® design solution to mechanically stabilise the sub-base of the road, so minimising any differential settlement. Additionally, the solution is quick and easy to install, and requires less aggregate than conventional road design. It also provides protection against any movement as a result of the sub-zero winter temperatures which last three months on average.”

The 17.9 km road comprises two 3.5m wide lanes in each direction, plus 2.5m of emergency lane at each shoulder; the minimum crown width is 27m.

As well as the supporting piles, vertical drains and additional embankments were employed where required Tensar TriAx® was employed across the whole width and length of the route.

Gdansk is Poland’s most important seaport and industrial centre and the new road, started in 2009, connects Poland’s major highway (N7 to Warsaw) with the A1 motorway, the N6 and access to the harbour.

The total value of the three year road construction is 1.1 billion PLN (€272million) and is co-financed by the Generalna Dyrekcja Dróg Krajowych I Autostrad and the EU Cohesion Fund.

Wabtec to provide components for New York Subway cars

A. Samuel
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Wabtec Corporation has signed a contract valued at about $34 million to provide components for 473 subway cars being supplied by Kawasaki to MTA New York City Transit.

The cars are scheduled to be delivered in 2013-15.

Wabtec will provide the rakes, couplers and current collectors, door operators and event recorders.

Of the 473 cars, 103 will be new, with the remaining 370 to be upgraded from existing vehicles.

“This is a significant project to expand and modernize a portion of the subway car fleet in New York City, and we’re pleased to play an important role,” said Albert J. Neupaver, president and chief executive officer of Wabtec.

Wabtec to provide components for New York Subway cars

A. Samuel
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0

Wabtec Corporation has signed a contract valued at about $34 million to provide components for 473 subway cars being supplied by Kawasaki to MTA New York City Transit.

The cars are scheduled to be delivered in 2013-15.

Wabtec will provide the rakes, couplers and current collectors, door operators and event recorders.

Of the 473 cars, 103 will be new, with the remaining 370 to be upgraded from existing vehicles.

“This is a significant project to expand and modernize a portion of the subway car fleet in New York City, and we’re pleased to play an important role,” said Albert J. Neupaver, president and chief executive officer of Wabtec.

KiwiRail to receive $250 million funding

A. Samuel
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KiwiRail will receive $250 million of capital in 2012/13 for its Turnaround Plan to ‘help the rail freight business become sustainable’, Transport Minister Gerry Brownlee has said.

The Budget 2012 appropriation is the final round of a three-year $750 million Government funding package supporting the objectives of KiwiRail’s Turnaround Plan.

“The plan is designed to help the rail freight business become sustainable by 2020 so it can fund its business solely from customer revenue.

“While the lion’s share of the investment is coming from the business itself, Government funding over three years demonstates our commitment to improving the rail freight network by providing capital investment to kick-start the growth process,” Mr Brownlee says.

KiwiRail has undertaken a significant investment programme over the previous two years, including new locomotives and wagons, and refurbishment of the current locomotive fleet.

Renewals and upgrades of the rail network to improve transit times have also been funded to improve reliability.

“Most of the Government funding will be spent on KiwiRail’s freight services and network improvements, contributing to the ongoing investment in locomotives and wagons, infrastructure upgrades and track renewals. This will continue to remove capacity constraints and improve reliability,” Mr Brownlee says.

“Some progress has been made in increasing freight revenue and volume on rail corridors where investment has been made.”

Skanska awarded contract for Bermondsey diveunder

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Skanska has been awarded a contract worth up to £60 million by Network Rail for the design and construction of the Bermondsey diveunder and associated structure strengthening works.

Network Rail said the contract is a crucial component of the final phase of the £6bn Thameslink programme.

With a projected completion date of spring 2017, the diveunder will create a major grade-separated junction on the eastern approach to London Bridge station, allowing the Thameslink lines to cross the Kent lines unimpeded on their approach to the station and increasing the number of trains which can serve London Bridge.

The diveunder will be formed by a series of new structures constructed along the line of existing operational railway viaducts, reusing existing structures wherever possible to reduce disruption and waste.

Skanska has previously been involved in the Thameslink programme, building the new Borough viaduct to the north of the station which will allow more trains to continue their journey into and across the capital.

Andy Gent, Network Rail project director, said:

“The work at Bermondsey is crucial to the Thameslink programme and it’s essential we do this efficiently and with minimal disruption to passengers. We have an excellent track record of delivering infrastructure improvements with Skanska and we look forward to working with them again to improve the railway for passengers in London.”

Arshiya signs rakes lease deal with GIPL

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India’s first private container operator, Arshiya Rail Infrastructure has signed a long term rakes (a line of wagons coupled together as one unit) lease deal with GATX India Private Limited, a subsidiary of GATX Corporation.

The deal will help Arshiya Rail migrate its business to a ‘capex lean model, resulting in lower gearing and improved margins as it expands the business’.

Under this agreement, GIPL will initially provide 10 newly manufactured BLC rakes on operating lease for the next 10 years.

ARIL has not disclosed amount of the deal.

The new rakes will be deployed at its new state-of-the-art rail terminal at Khurja, which will act as a hub and will offer integrated and cost effective solution to its customers across major Indian cities.

“India is one of the most exciting countries. The economy is growing at seven percent. We see a lot of potential in India, adding that this is our first investment in the country,” GATX Corp CEO Brian Kenney said.

GATX Corp will invest around $25 million on the ten rakes. ARIL will then acquire these rakes on a lease basis and operate it for freight forwarding within the country.

Around 3.5 billion tonnes of freight movement happens across the country annually and 65 percent of freight moves on road. Moving freight through railways can bring down supply chain costs, he said.

In 2008-09 railway budget, Indian Railways had launched the wagon leasing scheme.

Brunswick Rail extends partnership with SIBUR-Trans

A. Samuel
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Russian private freight operator Brunswick Rail has reached an agreement to supply more railcars to SIBUR-Trans, a subsidiary of petrochemicals holding SIBUR.

Under the agreement, Brunswick Rail will supply 150 gas tank cars to SIBUR-Trans for seven years on a long-term operating lease.

The 15-1780 model railcar is produced by Poltavhimmash and is designed to transport propane, butane and propane-butane mixes.

The first 20 railcars will be delivered to SIBUR-Trans by the end of May, with the remaining 130 arriving by the end of June.

This deal brings the total number of railcars in SIBUR-Trans fleet supplied by Brunswick Rail to 760. The companies signed their first operating lease agreement in May 2011.

Brunswick Rail Deputy CEO and Business Development Director Vladimir Khoroshilov said:

“This deal is another step in strengthening our relationship with SIBUR-Trans, and we are delighted that SIBUR continues to entrust us with the transportation security of its business.

“Given the current shift in demand from gondolas towards specialised rolling stock, we are interested in working closely with companies from the petrochemicals and gas sectors. In the medium term, we plan to increase the number of specialised railcars in our fleet, including gas tank cars, and hope that this will give us the opportunity to further meet our clients’ demand for such rolling stock.”

ETCS coming to the UK

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Although Network Rail is a member of the ERTMS Users Group, as described in Clive Kessell’s article, the Cambrian Line is the only ERTMS equipped line in the UK. The 134 miles between Sutton Bridge Junction, Shrewsbury and Machynlleth compare poorly with the size of installations in other countries.

That is about to change, though, as Network Rail has announced the next stage of the development programme. A framework contract has been awarded to four concerns; Invensys Rail, Signalling Solutions (Balfour Beatty / Alstom joint venture), Infrasig (Carillion / Bombardier joint venture) and Ansaldo STS. All have experience in ERTMS installations elsewhere, and Ansaldo STS was responsible for converting the Cambrian Line.

Network Rail’s medium-term goal is to install ERTMS on three major routes, the Great Western, the East Coast Main Line and the Midland Mainline. However, this new framework contract is for a one year period to help define the specification of the ETCS (European Train Control System) component of the system.

Phase 1, 2, 3….

Guy Stratford, Head of Contracts and Commercial at Network Rail, explained the company’s thinking. “I don’t like labelling projects as ‘Phase1’, ‘Phase 2’ etc,” he commented, “but it is probably appropriate in this case. In Phase 1, the four companies will work collaboratively with Network Rail, and with each other where we are discussing non-commercial aspects, to come up with a technological solution and a commercial proposal for going forward. Network Rail has a clear idea of what it wants to achieve. The discussions will revolve around how each company proposes to achieve that.”

This is a framework contract, not part of the tendering process, so Network Rail will contribute towards the costs of the four organisations involved.

At the end of Phase 1, likely to be in around 9-12 months time, Network Rail will assess the technical and commercial proposals that each company has put forward and ask a number of them, probably three, to demonstrate their proposals using a test installation on the Hertford Loop. This is a double-track, 24 mile loop off the East Coast Main Line between Stevenage and Alexandra Palace.

Commuter trains will be restricted to a single line over a 5.5 mile stretch, freeing up the other line for use as an ERTMS test track. Starting in 2013, the chosen firms will be asked to demonstrate their ETCS solutions, one after the other, over a twelve month period.

Main line implementation

Following these trials, the most robust technical and most cost-effective solutions will be chosen to be installed on the Great Western and East Coast Main Line.

Guy Stratford explains, “We will have as much flexibility as possible at this stage. It is possible that one company will be head-and-shoulders above the others, but we will have to bear in mind the logistical difficulties of one organisation working on two major projects at once.”

Work is likely to start in 2014, with the Great Western coming on stream first (commencing 2016) followed by the East Coast Main Line (2018) and the Midland Mainline (2020).

So it all starts with discussions between Network Rail and the four companies involved over the rest of this year. As Andrew Simmons, Network Rail’s director of future trains and operation control systems, said on announcing the contract awards, “ETCS is now a crucial part of our plans for resignalling the railway – our focus now is on building confidence and experience in the technology so that future schemes can be delivered seamlessly.

“These new frameworks are the building blocks to developing this capability and will allow us to work closely with our chosen suppliers to develop long-term plans for work to be carried out more quickly and efficiently.”

So, at future ERTMS Users Group meetings, Network Rail will have a bit more to discuss!

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