Market Opportunity Day 17.5.2013

Railway infrastructure construction and

upgrading in India and the Middle East

Finpro / Seppo Keränen, Oskar

Rautiainen, Dharmesh Sharan

Opportunities in Railway Projects

• The countries of the Gulf Cooperation Council (GCC) and India are planning extensive railway infrastructure projects – they have need for latest technologies and competences

– In India there is a need to upgrade and modernize the old infrastructure

– In GCC countries there is a need to set up modern rail networks

• Finnish companies have relevant know-how and up-to-date technology needed in these mega projects

• By finding suitable partners Finnish companies can participate in projects - this could also lead to business in many other markets

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Middle East – Railway Projects in Brief

• Middle East region is one of the strongest markets for railway investments in the world.

• Planned railway projects not only create an excess of new markets for infrastructure companies and auxiliaries, but also support the overall construction industry.

• Many countries and emirates are investing in rail and metro system to improve their infrastructure and economy.

• The Gulf states are projected to spend more than USD 100 billion on rail projects in the coming years.

– USD 45 billion under construction or at bidding stage in Saudi Arabia

– USD 25 billion in Qatar

– USD15 billion in United Arab Emirates

– USD 7 billion in Kuwait city metro

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Examples of Railway Projects in Middle East

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The Saudi Landbridge

The North-South Railway

Etihad Railway

Existing Railway Network

A railway to link Oman, United

Arab Emirates, Qatar and Kuwait

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Middle East Projects & Status – Saudi Arabia

• Saudi Arabia - presently investing over USD 45 billion to develop its world class rail networks.

• Its ambition of a better and bigger railway is starting to come into life, with its new railway projects covering a total length of 7,000 km.

• The allocated budget for rail development in KSA is believed to be USD 90 billion over the coming years.

Source: Saudi Railways Organization, Saudi Railways

Company, Arriyadh Development Authority

Middle East Projects & Status – Saudi Arabia

Jeddah-Riyadh-Dammam, Land bridge project • Project worth of USD 7.5 billion • Tender evaluation

North South Railway project • Project worth of USD 5.5 billion • Construction in progress Haramain High Speed Rail project • Project worth of USD 9.5 billion • Construction in progress

Jubail - Dammam link, • Project worth of USD 2.3 billion • To be tendered this year

Urban Mass Rail Transit – Makkah, Metro • 4 lines 182km and 88 stations • Project worth of USD 20 billion • To be tendered by the end of this year

Riyadh Metro • Project worth of USD 7-8 billion • Tender preparation / 4 consortia qualified

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Middle East Projects & Status - Qatar

Doha Metro

• The metro network will cover the Greater Doha area and will

include connections to town centers and vital commercial

and residential areas throughout the city

• Project Status

– Enabling works - LIVE

– PMC Contracts awarded

– U/G D&B tenders being evaluated

– Architectural branding ready for approval

• View the Doha Metro map in here

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Middle East Projects & Status - Qatar

Long Distance - Passenger Rail & Freight Rail

• Freight rail line from Port Mesaieed to Ras Laffan

• Mixed rail line from Doha to Saudi Arabia

• High speed passenger rail line from Doha to Bahrain

• Mixed rail line from Doha to Dukhan

• Mixed rail line from Doha to AlShamal

• Project Status

– Obtaining land approvals

– Coordinating and implementing GCC requirements

– Tendering for Civil Design Consultant

– Currently 25 interested parties for detailed design

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Source: Qatar Rail CEO

Middle East Projects & Status - Qatar

Lusail Light Rail Transit

• Four lines, twenty five

stations, seven underground

stations

• One viaduct

• One LRT Depot operation

• Project Status

– The project is LIVE

– Developing with Lusail City

Program

– Will integrate with Doha

Metro

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Source: Qatar Rail CEO

Middle East Projects & Status – United Arab

Emirates

Etihad Rails

• Project worth of USD 11 billion

• View map of Etihad Rails in here

• Stage 1, 264 km – From Shah and Habshan to Ruwais

– Status: Under construction

• Stage 2, 628 km – From Ruwais to Ghweifat connecting to the Saudi border & from

Tarif to Dubai & Al Ain connecting to the Oman border

– Status: Bidding process

• Stage 3, 279 km – From Dubai to the Northern Emirates of Fujairah and Ras Al

Khaimah

– Status: Planned

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Middle East Projects & Status - Oman

Oman Railway

• Project worth of USD 15.5 billion

• The total project length is 1060 km

• 6km of tunnels, 17km of viaducts, 35km of bridges.

• Status: Tender stage for the preliminary-design consulting-engineer contract. Five consortia are bidding for a four-year contract to undertake the detailed engineering design

• View map of Oman Railway in here

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Middle East Projects & Status – Kuwait

Kuwait Metropolitan Rapid Transit System Project

• Project worth of USD 7 billion

• 160 km, four lines metro network, 69 stations

• Status: Planning stage

• View Kuwait City Metro Map in here

Kuwait National Rail Road System

• Project worth of USD 10 billion

• 511 km double track

• The Rail Road system will serve freight and passengers and

will have a 120 km/hr regional lines speed and a 200 km/hr

high speed.

• Status: Planning/Feasibility study stage

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Middle East Projects & Status - Others

GCC Railway project

• Project is worth of USD 15 billion

• The total project length is approximately 2116 km

• Kuwait-Saudi Arabia-Bahrain-Qatar-UAE-Oman

• Qatar-Bahrain causeway to be established between them.

• Status: Detailed engineering design stage

• View project map in here

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Middle East Rail 2014 - The biggest rail show in

the region

• Organized on 4-5th of February, 2014 in Dubai, United Arab Emirates

• Unites the region's government authorities with rail operators and world class solution providers

• Access to $156 billion worth of rail projects

• Meet buyers from region and connect with project partners

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Indian Railways – An introduction

• The Indian Railways (IR) as a public sector organization which is administered by the Ministry of Railways and has its own manufacturing companies apart from procuring equipment, services and technology from outside.

– 64015 route kilometers

– operating 14244 trains daily that includes 10673 passengers trains,

– 1,4 million employees

– world’s third largest network under single management

– the largest rail passenger carrier,

– the fourth largest rail freight carrier globally.

– over 6900 million passengers and over 833 million tons of freight per annum.

– > 35% of the total freight traffic (in terms of tons kilometers) of the country moves by the rail

• Over the last five years, freight and passenger traffic on the Indian Railways has been growing at over 8% and 6.5%, respectively.

• View map of Indian Railway Network in here.

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Railway Projects in India

• In its ongoing five year plan (2012-2017) Indian Railways has announced the decision to upgrade the old infrastructure and prepare for growing demand

– Over the last five years, freight and passenger traffic on the Indian Railways has been growing at over 8% and 6.5%, respectively

• Indian Railways is looking for smart technological solutions which can improve levels of efficiency, expand the range of services provided cut costs and manage resources better - particularly in connection with water recycling and power solutions.

• The announced priority sectors for upgrade include safety, bridges, rolling stocks, rail tracks, wheels & axels, signaling systems, electrical systems, communication & IT and maintenance

• Indian Railways is also building new stations, improving and expanding catering and kitchen services and passenger & freight information systems

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Indian Railways – on way to modernization

Faster Procurement

• Since Indian Railways has not been able to meet its demands indigenously, it

has gone for innovative solutions for faster procurement

• Public Private Partnerships (PPP) projects worth Rs 120 billion or EUR 2 billion

are currently under different stages of implementation.

• Special Purpose Vehicles created for faster implementation of important

projects on mission mode, for e.g. the dedicated freight corridor.

• Private Investment in Container and Special Freight Trains Operation: Private

investment has been permitted for wagon leasing companies to procure high-

capacity, special-purpose and container rakes to end-users. Proposed Multi-

modal Logistics Park will allow private investment in construction and operation

of private freight terminals for multiple third-party users.

• Outsourcing of certain services to private contractors e.g. catering

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21.5.2013 June 2011 @ Finpro

Minister of Railways

Minister of State for Railways Minister of State for Railways

Railway Board

Member Engineering Member Electrical Member Traffic Financial Commissioner

Member Staff Member Mechanical

Directorate General

Railway Health Service

Directorate General

RPF

Secretary

Estt Matters Admin Matters

Chairman Railway Board

Railway Board is the apex advisory body to the Minister of Railways

Indian Railways Organization Structure

10th International Railway Equipment Exhibition

• Organized on 3–5th

October, 2013 in New

Delhi, India

• A biannual event of CII

and Indian Railways - the

biggest Railway exhibition

in India where the entire

industry participates

• A good opportunity to

understand the railway

sector and to network with

relevant industry players

and big private companies

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More information

Seppo Keränen

Regional Sales Manager India, Middle-East, Africa

seppo.keranen(a)finpro.fi

Tel +358 400 535 907

Lotta Björkell Junior Consultant Construction, Logistics, Machinery

lotta.bjorkell(a)finpro.fi

Tel +358 40 343 3470

5/21/2013 © Finpro 20

Oskar Rautiainen

Head of Finpro Middle-East P.O. Box 94363, Riyadh 11693

Saudi Arabia

oskar.rautiainen(a)finpro.fi

Tel +966 563 463 334 or

+358 20 4695 215

Dharmesh Sharan Consultant F-130, Ground Floor, Malcha Marg

110021 New Delhi, India dharmesh.sharan(a)finpro.fi

Tel +91 11 3059 9200 or

+358 20 469 5900

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website www.finpro.fi