Veolia RATPs experience in Seoul and Hong Kong lessons for Vietnam - - PowerPoint PPT Presentation

Veolia RATP’s experience in Seoul and Hong Kong – lessons for Vietnam

Emmanuel VIVANT General Manager, Hong Kong Tramways Ltd Director, Seoul Line 9 Operation Co.

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Veolia RATP – Introduction

Ⅰ.

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Veolia Transport RATP, the leading public transport operator

Our business model = delegated management – a private operator of public transport Major key figures

 32 countries  ~€12 billion in revenue for 2012  160,000 employees  Over 75 rail contracts in the world – O&M franchises, PPPs etc  LRTs, metros, commuter, regional, mainline, and now high-speed

in Asia: Seoul Metro 9, Mumbai Metro 1, Hong Kong Tram, Macau bus, Nanjing & Anhui bus

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Improvements brought to Hong Kong Tramways

II

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TRAM LINE

HONG KONG

HK Tramways in HK current railway network map

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One of HK’s icons and a city heritage…

• HK Tramways Ltd. was created in 1904
• The World’s largest double-deck tram fleet and unique

double-deck metric system

• A fleet of 163 vehicles (including 2 antique trams)
• Over 6 million km ran every year
• Total 2012 income : ~26 million EUR
• 650 employees including 340 drivers
• 1 main route + 1 loop, 6 terminal stations, 29.5km line

length, 118 stops

• A mass transit system with 230,000 trips per day

(84,000,000 per year)

• HKTramways Ltd. represents 16-18% of trips within

HK island

HONG KONG TRAMWAYS Ltd.

A few figures…

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• HK Tramways Ltd. is a 100% private operator
• There is no operation contract between HK Government and HK

Tramways Ltd.

• Operation are driven by “ordinances” that are an evolving list of

rules fixing the operation standards.

• Operation rights are renewed every 5 years at the discretion
• f HK’s Transport Department.
• HK Government does not provide any subsidy and HKT had to

develop other revenues to remain sustainable…

HONG KONG TRAMWAYS Ltd.

A Very Specific “Contract”…

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Our Operating Environment

• Keen competition from other modes of transport
• MTR
• Buses
• Minibuses
• Taxis
• Walk

Public transport has a 90% modal share!

• Increasing traffic density, congestion
• Declining patronage
• Increasing operating cost
• Public pressure on service improvements

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HONG KONG TRAMWAYS Ltd.

Fare Policy

• A single adult trip is 2,3 HKD (since 2011) (2 HKD from 1998

to 2011)

• Children below 12 : 1,2 HKD and Elderly over 65 : 1,1 HKD
• Monthly pass also exist, as well as 4 day tourist passes
• Passenger can pay either by contactless card (Octopus) or by

coins, when alighting.

• HK Tramways is HK’s cheapest transportation mean

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HONG KONG TRAMWAYS Ltd.

Development of other revenues

Hong Kong Tramways limited Company page 10

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Recent Changes with international operator

• Veolia RATP took over the tram operation in 2009
• New development strategies
• Upgrade services to be in line with the world’s norm
• Catch up with essential improvement works long overdue
• Provide passengers with quality services
• Promote utilization of green transport
• Help alleviate environmental problems in Hong Kong

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Improvement Measures Objectives

• Safety / Reliability
• Noise reduction
• Service improvement
• Operational efficiency / flexibility
• Patronage stop declining / revert trend

 Start by market surveys and extensive stakeholders/community engagement exercise

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Understand the Passengers

• Passenger Survey : OD & Expectations

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Tram & Duties Schedule

• Use VTRA scheduling tools to find out the most efficient schedule and to

adapt local constraints

• More demand driven

without ignoring the social constraints

Old & New Scheduled trams in service

15 Understand & Adapt the Social Constraints in Tram

Hong Kong Tramways limited Company page 15

• Initially more focus on the adaptation to the demand, not

enough communication to the social constraints in Tram

• Later initiatives to strengthen communication like

 Staff Focus Group  Working Group on New Schedule  Staff Re-organization

OM ACM SMM MM MM MM MM OM ACM SMM MM SMM MM SMM MM ACM SMM MM SMM MM SMM MM 12 12 12 12 12 12 350

Before After

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Improve Regulation via OCC Upgrade

• We have built a new OCC /Tram Positioning

System

• It is RFID-based with sensors at each tram

stop and autopoint

• Real time tram positioning and anticipation

by duty inspectors becomes possible

• communication with drivers on road
• can accelerate the first slow tram in the

bundle by narrowing the gap with the tram ahead

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Reporting

• Thanks to VTRA tools and the OCC Tram Positioning System,

we can generate detailed Management and Operational Reports to monitor the operating results like mileage, paid hours

Year To Date

Motormen Productivity

Paid Hours Basic Hours

• 1.0%

• 2.1%

• 1.4%
• Normal Duties

• 5.6%

• 5.8%

Effective MM

ACM

SD

• Spare Duties

• 40.0%

• 54.1%

Normal + Spare Driving Duties Hours

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Rationalize the External Environment

• Identify Congestion Black Spots
• Traffic Study & Model
• To work out win-win solutions with Government

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Passenger Information

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New Tram

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New Tram

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• Track

maintenance

• Overhead line

New maintenance techniques

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What an international operator brought

Hong Kong Tramways limited Company page 23

Thanks to VT-RATP’s international knowledge, synergies with

• ther operations could be found to develop new projects…
• VT Tools implementation for scheduling re-construction.
• Real time localization / OCC system implementation
• Black spots analysis to increase commercial speed.
• Tram loops & free transfer to shorten lines and increase the service

reliability.

• Passenger information
• Service quality and safety (accidents monitoring, motormen’s training,

customer service)

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What an international operator brought

Veolia Transport-RATP brings a long term transportation view to a structure that was previously managed by a property developer/financial company…

• VT-RATP is using synergies, importing its know how from other

countries.

• VT-RATP is building a long term and trustful relationship with HK’s

Transport Department.

• VT-RATP is improving service quality to remain competitive in such a

dynamic environment, capitalizing on an iconic and environmentally friendly tramway system.

• VT-RATP is foreseeing the opportunity to develop ridership and

increase fare revenues.  HKT, with VT-RATP’s help, will keep on providing a safe, reliable and efficient service to HK people, for the most reasonable price.

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HK Lessons for Vietnam

• Relying on the dynamism of private enterprises and introducing a certain

degree of competition entices cost discipline, new revenue generation etc

• International transport operators bring a professional expertise and long-term

view unlike financial investors/developers

• Integrated ticketing system key to attractiveness of the system
• Lack of fare integration generates reluctance to transfer = overlapping and

wasteful competition

• Need for a certain degree of government regulation to guarantee service levels,

provision of services on loss-making but socially imporatnt routes

• Integrated passenger information still lagging and confusing to infrequent

users

• HK an exceptional case – but more and more intervention of government –

subsidies for elderlies, ferries; MTR capex financed through land development rights.

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Seoul Metro Line 9 project

III.

27 Route (Phase I)

Gimpo Airport ~ Gangnam (25.5km, 25stations & 1 Depot/Phase II-12km, 12stn)

Budget Construction Period

2006 ~ 2009 (3 years) – started operations in July 2009

Type of Project

Korea’s First MRT Private Investment Project under BTO scheme (under 30 year concession agreement )

Details of Work Scope for private SPC

Design & Construction, E&M, Test & Commissioning, Operation & Maintenance

• Approx. USD 4Bil. Civil by SMG, USD 1Bil.(E&M+O&M) by Private SPC

Seoul Metro Line 9 Project Summary

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Seoul, Korea

 Seoul Metro Map Phase 1

 25.5km 25stations, 1 depot

 Opening : July, 2009 Phase 2  Expected opening year : 2014  12.5km 12 stations

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Seoul Metropolitan Government’s decision: EFFICIENCY

 SMG decided to invite private partners for the new line: Why?



Lack of cooperative labor relationship and chronic deficit in operation of existing lines



Efficiency, set benchmark for public operators  stimulate public sector reform



Benefit from the diversity of expertise of a worldwide operator



Improve the image and quality of service and to increase patronage Issues VTRA’s SL9 Seoul Metro (Lines 1~4) SMRT (Lines 5~8)

Station work Mobile work during the train

• peration

Station resident system on 24-hour shifts Station master system None A station master assigned for each station Type of Working Schedule No-stationed & No-night duty 24-hour shifts Driver’s working hours 6:00 Hours 4:40 ~ 5:00 Hours Service pattern Express / all- stop All-stop only

Seoul Metro SMRT SL9

68 22 44 [No. of employee per km]

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Seoul Metropolitan Government Seoul Metro Line 9 (SPC)

CI (51%) FI (49%) Concession Agreement EPC Contract Construction Committee

Project Manager

Lenders Loan Agreement O&M contract (2+10 years)

O&M Company

VTRA(80%) ROTEM (20%) 30 years

*In Mumbai, VTRA is a 5% shareholder of the SPC

Seoul Line 9 Contractual Framework

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90% 80% 70% 100% 110% 2009 2014 2019 2023

Profit exceeded over 110% refunded to City of Seoul Guaranteed by City of Seoul if not reached

Minimum Revenue Guarantee for the first 15 years Minimum Revenue Guarantee for the first 15 years

32 Risk sharing Minimum Revenue Guarantee for 15 years and Termination payments Investment split Civil portion financed by Seoul City; E&M financed by concessionaire Fare Contractual fare different from Sate Owned metro lines (but actual fare same) O&M A professional operator has been appointed and has brought many improvements in the Korean landscape and set a benchmark for others

Key elements in this PPP model m Key elements in this PPP model

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Common : About 54 minutes, Stops at all 24 stations Express : About 30 minutes, Stops at 9 major stations only

The first urban railway line in Korea which operates common trains stopping at all stations and express trains stopping only at major stations on the same track

• Overview of train operation of Line9

Optimized services – Express and Standard

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Organization Efficiency Customer-oriented Express & All Stop Promotion based on performance At convenience store ~22 staff / Km Production and staff-oriented All stop Promotion based on seniority Ticket booths with full staff Over 50 staff / Km

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“safety 1st” culture, ISO 9001 Maintenance on tracks by day etc Predictive Planned and corrective By operation staff By maintenance staff only Multiskills Specialists Service Maintenance Staff profile 1

st intervention

Promotion Ticket Booth Safety

Essentials

Current operators Seoul Line 9

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[Sep 28 2010] Seoul Line 9 exceed 100 million passengers [Jul 24 2009] Station reading a book, line 9 station launched ‘Kium’, space for reading books [Aug 21 2009] Gold line, Seoul line 9, stations are also gold commercial areas [ Jun 6 2011] Seoul line 9 effect… more passengers at Kimpo Airport [Jul 22 2010] Seoul Line 9 ‘Super express for Commuting’ [Apr 7 2010] Line 9 implement Han river Cherry Blossom Festival [May 4 2010] Line 9 conducted customer welcoming events for family month [Dec 21 2010] Seoul Line 9 implemented Meet the Manager [Jan 22 2011] Seoul line 9 station staff conducted CPR and saved one customer’s life. [March 31 2011] Seoul Lien 9 provides more express trains during morning RH

Time

[May 28 2009] Opening Seoul Line 9, 30 minutes from Kimpo airport to Shinnonhyon [May 8 2010 Gold line, Line 9, Gold route and interior [May 20 2009] Indoor garden at stations of line 9 [July 21 2011] Environment friendly station [Jul 22 2011] Seoul Line 9 seats are safe due to nonflammable material

Customer Satisfaction/ Expectation

Pre-operation Phase Adjustment Phase Stabilized Phase To be….. ?

And…….

Seoul Line 9 Customer satisfaction/expectation

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3 years on - Seoul L9 still moving and upgrading

Emergency Manual for Operations Fire prevention exercises Emergency recovery exercises Life saving / train rescue Zero accident campaign ISO 9001/14001

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3 years on - Seoul L9 still moving and upgrading

KPIs and SQIs Management

• pen

Predictive maintenance Going for Green & Customer satisfaction Meet the Manager and Citizen Roundtables Training / Driving and OCC simulators Additional express trains operation

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3 years on - Seoul L9 still moving and upgrading

39 Seoul lessons – multi-operators on the same network

• Providing an integrated and seamless service with several

different operators is possible… but requires

• Strong government regulation capabilities and skills
• Central planning to coordinate lines design / transfers etc
• High transparency of operators, collaborative attitude
• Integrated passenger information databases
• Integrated ticketing AND fares
• Decentralized OCC

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Titre de la présentation

• Under these circumstances, having several operators can be

desirable

• Cross-Benchmarking
• Incentives to perform
• Emulation = innovation, new ideas, best practices
• SL9 has pushed state owned operators to copy and adapt

40 Seoul lessons: Involvement of operator at an earlier stage

• The operator should be involved in the rail project

as early as possible, better before the construction starts

> Provide important opinions from the point view of technical side , more important,

from future operation side

> Avoid re-investment which is always long and more costly than the initial

investment

> Get familiar with infrastructure and equipments, make preparation of operation

arrangements, save time for the transfer from construction to operation

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Titre de la présentation

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Seoul lessons: Participation of international expertise

• Expertise of international companies is useful:

> To avoid “re-inventing” the wheel > To challenge the local norms > To bring expertise and good ideas – cross-fertilization > To benefit from the engineering and technical reservoir of large operators > To provide a compact, cost-efficient operation less demanding on

subsidies

> To guarantee safety, reliability and service are on par with international

standards

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Titre de la présentation

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Thank You