Jullian Valverde - the promotion and coordination of consortia for the provision of turnkey high speed railway services

THE PROMOTION AND COORDINATION CONSORTIA FOR THE PROVISION OF TURNKEY HIGH SPEED RAILWAY SERVICES

KUWAIT METRO AND RAIL CONFERENCE AND EXHIBITIONKuwait, 19th April 2011

Presenter: Ms. Susana Gozalo Jáñez, MsC Civil Engineering, CEng, MICE, MCIHTDirector of the Transport Strategies Department of CONSULTRANS

INTRODUCTION AND CONTENT OF THE PRESENTATION

• Definition of Turnkey Services

• Why Turnkey Contracts for High Speed Railway?

• The promotion of Consortia for the Provision of Turnkey High Speed Railway Services

• The key points to deliver a successful High Speed Railway project

• Case Study: The Haramain High Speed Railway Phase 2

• The Kuwait Metro and Rail Project

Turnkey Services

•Turnkey contract is a design and build contract in which a single contractor is responsible forproviding all services, including finance. (The New Dictionary of Civil Engineering. Penguin 2005 edition).In practical terms, the Client gets a service or a supply of goods ready to use, ready for theopening and ready to cut the “red tape” “at the turn of the key”.

• Real Estate (construction of housing estates and retail parks)

• Health Sector

• Education Sector

• Petrochemical Plants

• Oil Refineries

USE OF TURNKEY CONTRACTS

• Traditionally used for complex projects

• Where experites relies with more than one contractor or company

• Chemical plants, oil refineries or production lines in a factory are examples

• Main Feature:

Only one contractor: Prime Contractor

Prime contractor holds all relationships with the Client

Prime contractor holds all relationships with other contractors, subcontractors andsuppliers to provide the Client with a finalised project

In accordance with FIDIC (International Federation of Consulting Engineers)

Recommended where one entity takes total responsibility for this type of contract, the entitycarries out all the Engineering, Procurement and Construction: providing a fully – equippedfacility, ready for operation (“at the turn of the key”). This type of contract is usually negotiatedbetween the parties.

ADVANTAGES OF TURNKEY CONTRACTS

• The relationship is with one sole provider or prime contractor

• The procurement process is quicker

• The coordination of interfaces is done by the prime contractor

• The scope of works and preparation of the contract isless detailed (concept design)

• The responsibility of the delivery lies with the prime contractor

• The contractor delivers in accordance to a set ofperformance criteria specified in the contract

• In general it provides a fixed price so the risk of costoverruns lies with the prime contractor

WHY TURNKEY CONTRACTS FOR HIGH SPEED RAILWAY?

The following activities form part of a High Speed Railway Service:• Feasibility and financial studies• Detailed design and preparation of bills of quantities• Civil Works and Infrastructure Works• Construction of tracks and systems

Interlocking and Mainline signallingElectrificationOperation Control CentreOverhead CatenaryTelecommunications

• Procurement and Delivery of Rolling Stock Trainsets• Verification, Testing and Acceptance• Operation of the Service (ticketing, drivers, passenger care…)• Maintenance of infrastructure, tracks and systems• Maintenance of rolling stock• Management of train stations

• Multi‐disciplinary: cannot be provided by a sole company

• Complex activities, latest state of the art technologies

• Risk with Contractor as owner of the technology

• Definition of scope based on performance indicators

• Payments subject to finalisation of key milestones (track laying, delivery of trainsets…)

• Client gets infrastructure, track and systems and operation and maintenance service for a fixed price

WHY TURNKEY CONTRACTS FOR HIGH SPEED RAILWAY?

THE PROMOTION OF CONSORTIA FOR HIGH SPEED RAILWAY

• A Bit about CONSULTRANS

Transport consultancy with more than 20 years experience providing consultancy services in thetransportation sector for both public administrations and private companies.

Since the year 2008, it is part of IMATHIA GLOBAL, a group of companies led by Mr. Julián García Valverde, Chief Executive Officer and President and who is former President of Renfe Operadora, the Spanish Publicly owned Railway Operator

• A bit about Spain and High Speed Railway

Decadent State of the Railway Network in 1980s

Commitment of central government to High SpeedRailway→ AVE


• 2.665 km of High Speed Railway Lines

• 24 cities connected with High speed Railway Services

In the Year 2020:

• 10.000 km of High Speed Railway Lines

• All Spanish cities linked to the High Speed RailwayNetwork

• 90% Spanish citizens within 50 km distance of a HighSpeed Railway Station


Experience of Spanish Companies in High Speed Railway Services

• Consultancy and Engineering design

• Civil Works construction

• Construction of Ballasted and unballasted tracks

• Electrification and Overhead Catenary

• Signalling (ERTMS Level 2) and Operation Control Centres

• Design, Manufacture and Maintenance of High Speed Train Sets

• Operation of high speed railway services

• Maintenance of High Speed railway infrastructure and systems

• We compete at a global level as providers of high speed railway technologies


CONSULTRANS is a key player in the sectorPromote, coordinate and manage the best players of the High Speed Railway Industry to deliver a One‐Stop‐Shop service. From inception and concept, through to detailed design, construction, procurement of rolling stock and operation and maintenance of high speed railway services.

• Direct Advice to the Client

• Promote Consortia putting together best key players of the industry

KEY POINTS TO A SUCCESSFUL HIGH SPEED RAILWAY PROJECT• A Railway Administrator in charge of the construction, procurement of systems and maintenance of high

speed railway lines. This can be a public body or a private entity working for the final client for a fee based on performance indicators.

• A Railway Operator with a proven track record of providing high speed railway services. It can be a publicly owned company or a private operator as might be the case in different countries in Europe.

• An Operation Control Centre from which the management and operation of train sets can be undertaken with safety as a first objective.

• A state of the art signalling system (ERTMS Level 2) that allows for trains to travel at speeds of 300 km/h and above that caters for all types of train sets and makes the system interoperable

• A track designed for speeds of 300 km/h and above, requirements and parameters for curves, gradients and gauges. Civil works often including viaducts and tunnels because of such strict design parameters, and therefore needing specialised companies in the construction of high speed railway lines

• Train sets capable of performing at such speeds with the highest comfort and safety for the passenger• A Railway Integrator and coordinator that makes this puzzle of companies, service providers and systems

work together as one

• A LITTLE BIT ABOUT THE PROJECT

• be designed for speeds up to 320km/h;

• be a standard gauge line (1435mm);

• be an electrified line with overhead catenaries of 25kV;

• have a journey time, between Makkah and Madinah, of less than 2 hours 30 minutes, with a commercial operating speed of 300km/h and 3 stops (Jeddah, KAIA, KAEC).

• provide a service with high standards of safety, design, operating rules (track geometry

• will be maintained within safe and comfort limits) and service quality

It will transport 166.000 passengers per day at peak times during Pilgrimage to the two Holy Sites.

CASE STUDY: THE HARAMAIN HIGH SPEED RAILWAY PHASE 2

The Railway will:• be a double track between Makkah and

Madinah, with facilities to run in the up and down directions on both tracks;


• THE PROCUREMENT PROCESS

• Phase 1 Package 1 – Route Civil Works (Design & Build)

Land acquisition well advanced – Saud Consult

Concept design completed by Dar Al Handasah

Contract awarded to Al Rajhi Alliance on 5th February 2009

• Phase 1 Package 2 – Stations

Design – Awarded to Foster & Partners / Buro Happold / Dar Al Riyadh in March 2009.

Four stations – Makkah Central, Jeddah Central, KAEC & Madinah Central.

Airport Station to be designed in conjunction with the Airport.

To provide detailed specifications and construction drawings for construction.

Build – Contract for the Four stations were awarded to

Saudi Binladin Group with Turkey’s Yapi Merkezi: Makkah and Madinah stations for SR3.2 bn and SR1.6 bn.

Saudi Oger will build the stations at Jeddah at a cost of SR2.9bn and a station at King Abdullah Economic City in Rabigh for SR1.7bn.


• Phase 2 – includes all civil and infrastructure works not included in phase 1, procurement and maintenance of the Rolling Stock and operation and maintenance of the entire railway

Procurement of Rolling StockDesign & Build (FIDIC)

Ballasted TrackERTMS Level 2 Signaling system25 Kv – 60 Hz caternary systemTelecomsControl centerDepots and Workshops

• Operations and Maintenance Contract for a 12 year period with payments based on:Performance RegimeFares PolicyRevenue collection

• In summary, it is a Turnkey Contract that includes design, build, maintenance and operation of a railway service for a fixed annual price.


• THE PROMOTION AND COORDINATION OF THE CONSORTIUM FOR THE SUBMISSION OF THE BID

Prequalification

Managing a project of this size.

Experience of Procurement of Rolling Stock

Design & Build of Infrastructure

Railway Operations including Operations of stations and Maintenance of all infrastructures

One member complying with the Ministry of Municipality Classification (Class 1 in Roads)

• The result was the Saudi‐Spanish AlShoula Consortium



• THE PROMOTION AND COORDINATION OF THE CONSORTIUM FOR THE SUBMISSION OF THE BID

Preparation of the Technical and Financial Offer

Proposals to fulfil the requirements specified by the Client in the Terms of Reference for each of the subsystems.

Provide added value to the proposal for it to stand out in technical terms from its competitors

Consortium Management and Coordination

Administrative coordination

Technical Coordination

Preparation of financial deliverables:

THE KUWAIT METRO AND RAIL NETWORK

METRO NETWORK

• FOUR LINES

• LENGTH 160 KM

• FOUR LINKS TO THE MAIN RAILWAY NETWORK

RAILWAY NETWORK

• TWO CORRIDORS

• 500 KM

• FORMS PART OF THE GCC NETWORK

THE KUWAIT METRO AND RAIL NETWORK

• Both networks are at the planning stage

• Decisions have been undertaken as to technical parametres

Rolling Stock

Gauge

Speeds

Dedicated line or mixed traffic

• Both projects fit the bill for a Turnkey Project including the operation and maintenance of the service

Presenter: Ms. Susana Gozalo Jáñez,

MsC Civil Engineering, CEng, MICE, MCIHT

Director of the Transport Strategies Department of CONSULTRANS

[email protected]; +34915754616; www.consultrans.es

THE PROMOTION AND COORDINATION CONSORTIA FOR THE PROVISION OF TURNKEY HIGH SPEED RAILWAY SERVICES

THANK YOU VERY MUCH FOR YOUR ATTENTIONTHANK YOU VERY MUCH FOR YOUR ATTENTION

Business

Jullian Valverde - the promotion and coordination of consortia for the provision of turnkey high speed railway services