HIGH SPEED RAIL – CHALLENGES &

OPTIONS: INDIAN PERSPECTIVE

Rajesh Prasad, IRSE

High Speed Rail Corporation of India Ltd.

A subsidiary of RVNL

CONTENTS

I. Need of High Speed Rail in India

II. Key Issues, Challenges and Few experiences

III. Implementation Options

WHAT IS HIGH SPEED RAIL?

As per UIC definition, trains running at speed of 200 kmph on

upgraded track and 250 kmph or faster on new track are called High

Speed Trains.

These services may require separate, dedicated tracks and "sealed"

corridors in which grade crossings are eliminated through the

construction of highway underpasses or overpasses.

Country In service (Length) Under project/

construction (Length)

Planned (Length)

Spain (Adif) 2,869 KM (1,783 miles) 2050 KM (1,274 miles) 238KM (148 miles)

France 2,036 KM (1,265 miles) 210 KM (130 miles) 2,616 KM (1,626 miles)

Germany 1,285 KM (798 miles) 378 KM (235 miles) 670 KM (416 miles)

Italy 923 KM (574 miles) - 395 KM (245 miles)

Turkey 538 KM (334 miles) 815 KM (50-6 miles) -

Belgium 209 KM (130 miles) - -

United Kingdom 113 KM (70 miles) - 204 KM (127 miles)

Switzerland 35 KM (22 miles) 72 KM (45 miles) -

Netherlands 120 KM (75 miles) - -

Portugal - - 1,006 KM (625 miles)

Sweden - - 750 KM (466 miles)

Poland - - 712 KM (442 miles)

Russia - - 650 KM (404 miles)

Total 8.128 KM (5,051 miles) 3.525 KM (2,190

miles)

7,241 KM (4500 miles)

HIGH SPEED LINES IN EUROPE

COMMERCIAL VS SOCIAL

• Railway has social obligation to run transport service for all the area of country irrespective of profit motive. It can not close uneconomic lines

• It can not increase fare due to adverse political impact even though fuel cost mounting

• It has to generate enough resources for efficient maintenance & replacements of assets on its own

WHY HSR IS REQUIRED IN INDIA ?

ENERGY EFFICIENCY

High Speed saves Energy Costs and reduces Greenhouse Gases

0 10 20 30 40 50 60“Fuel equivalent grams” per passenger-kilometer

High Speed

Railway

Bus

Plane 51.1

29.9

18.3

17.6

12.1

Classic Train

Private Car

LAND REQUIREMENT

A HSR-line allows more passengers than an six lane highway per hour

Elevated rail corridors reduce the hassle of Land Acquisition.

Land requirements are Smaller

35 m

DECONGESTION AND CAPACITY ADDITION

High Speed Rail Motorway

Double Track 2x3 Lanes

12 Trains per hour per Direction 4500 Cars per hour per direction

1000 Pax/Train 1.7 (Average) Passengers per car

Capacity = 12000 Passengers

per hour

Capacity = 7650 Passenger per

Hour

Reduction in commuting time between cities and added capacity gives an

excellent opportunity for decongestion of the mega urban centers and

growth of smaller towns and other cities.

INCREASING URBANIZATION

The major challenges faced are:

Major Urban centers are severely

congested:

Dramatic growth in vehicle

ownership in the past

decade.

Accessing jobs, education -

becoming increasingly time-

consuming.

Billions of man-hours are lost

with people stuck in traffic.

285

377

473

590

0

100

200

300

400

500

600

700

2001 2011 2021 2030

Urban Population in India (in Million)

Explosion in Inter City Travel

India’s urban population - 285 million reported in the 2001 census and 377 million in 2011 census.

McKinsey Global Institute (MGI) projects - 590 million by 2030 (40% of India’s total projected population).

INCREASING URBANIZATION

The rapid urbanization in the country has triggered a growing demand for inter city traffic between metropolitan cities and 2nd and 3rd tier cities.

In absence of HSR, passenger traffic of Airlines/ Car users is growing at 15-20%

DECONGESTION of Metropolitan cities

Tier I City

Tier IITier I City

Small towns and Tier II & III Cities

Tier I City

Tier II city

Tier II city

TRAVEL TIME ( Trigger for modal shift)

Delhi

(city centre)(city centre)Delhi Airport

Chandigarh

Airport

.75 hr 30 min1.25 hrs at Terminal + 1 hr Flying time

Total time: 3.5 hrs

Plane

Delhi

(city centre)

Chandigarh

(city centre)

Total time: 1 hr

High Speed

Railway

Journey time for air travel involves travel to airport, away from city centers and waiting

time at Airports. Distance between DELHI to CHANDIGARH is 245 Km.

HSR is energy efficient and is less polluting than Road/Air travel.

Indian imports about 80% of its oil requirement. HSR will use

indigenous energy resources like thermal/hydel/nuclear based energy

Economically as well environmentally, Rail based Transport

system is ideally suited for India.

NEED FOR HSR IN INDIA

0

10

20

30

40

50

60

70

80

90

100

1950-51 1960-61 1970-71 1980-81 1990-91 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05

Modal share (%) Road

Modal share (%) Railway

Modal share (%) Airline

DECREASING MODAL SHARE

India became a decidedly road-dominant economy in the beginning of the eighties

with the railways losing out in respect of both freight traffic and passenger traffic.

Introduction of

TGV service in

1981-83

Evolution of first Class rail traffic in France

Before and after opening of the first HSR line

Existing long distance rail services have difficulties

in competing with road and air modes of transport,

The new HSR lines can stop the decline of the

railway’s share on the long distance transport

segment along those corridor.

It provides an attractive transport offer in terms of

reduced travel times and comfortable journey.

Despite the high investment cost it is economically

sustainable and need of the hour.

IMPACT OF INTRODUCTION OF HSR

PROJECTS WITH RVNL

Ministry of Railways has transferred 110 projects Strengthening of Golden Quadrilateral and Diagonals 58 projects

Provision of Port connectivity and corridors to hinterland 34 projects

Kolkata Metro Rail 4 projects

Workshops & Others 14 projects

Projects completed upto March’2013 36

Projects yet to be sanctioned 03

Project under implementation 71

Total Cost of Project in hand ~ 45000 cr.

RVNL & HIGH SPEED RAIL

• Ministry of Railways has directed RVNL to form a SPV forimplementation of High Speed Rail projects.

• High Speed Rail Corporation of India Ltd. (HSRC)incorporated on 25th July, 2012 as a 100% subsidiary ofRVNL.

• HSRC will undertake:– project activities for Mumbai-Ahmedabad corridor such as

preparation of project related studies

– preparation of the technical standards for High Speed Rail

– providing support to Ministry of Railways and Government ofIndia in finalizing financial and implementation models.

– carry out similar activities for any other corridor decided by theGovernment.

KEY ISSUES & CHALLENGES

KEY ISSUES & CHALLENGES

System

Integration

(1) Political Will

(4) Financing

HSR Project(s)

(5) Land Acquisition

(3) Economic &

Financial Viability

(7) Selection of

Technology

High Speed Rail

Development

(2) Selection of

Project Corridor(s)

(6) Policy Framework

(1) POLITICAL WILL

Each HSR corridor will have a long gestation period and

will be highly capital intensive, so, strategic thinking is

required at the Apex level for implementing in a

programmed manner

Coordination among Central Government Ministries, State

Governments and Government Agencies

Success stories- National Highways, Airport up-

gradation, Yamuna express-way

(2) SELECTION OF PROJECT CORRIDOR(S)

FOR IMPLEMENTATION

Vast country – Many potential corridors - Selection of

pilot Project;

Economically/financially viable projects to be given

priority;

Willingness of local governments to participate in the

project by way of land and funding support.

(3) ECONOMIC & FINANCIAL VIABILITY OF THE

PROJECT

High capital cost will impact viability

HSR will be a dedicated line; High demand risk due to

higher tariffs as compared to conventional rail.

Emphasis on other alternative revenue sources like Real

estate revenues, carbon credits, cross-subsidy from road/air

travelers.

(4) FINANCING OF THE PROJECT(S)

The high capital costs of HSR makes it a financing challenge.

GOI may not fully fund the corridors.

Most state governments will have to raise finances by extra levies, real estate etc. even for part funding

Private sector may not have adequate financing capability to fund the large HSR projects. Proper project structuring by unbundling the projects into smaller packages may be essential.

Funding by multilateral and bilateral funding agencies

(5) LAND ACQUISITION

Critical due to stringent alignment requirements

HSR corridors pass through conurbations or sensitive

land;

Strong public protests adversely affecting large number

of projects.

Mix of alignment choice- grade/ elevated/ tunnels

(6) POLICY FRAMEWORK

Robust policy framework for:

Seamless implementation of projects

Assurance for attracting International investors

Creation of National High Speed Rail Authority

(7) SELECTION OF TECHNOLOGY

Choice of Technology:

A) Fixed Infrastructure:

Mix of Embankment/Elevated/ Underground Structures and

their dimensional control;

Construction Gauge;

Fencing of the complete track/elevated track;

Electrical Installations.

B) Fast Upgrading Technology

Rolling Stock

Signaling and Communication

Train Control

Fare Collection

INTERNATIONAL CASE STUDIES

TGV, FRANCE

French Govt.

SNCF - French

national rail operator

Réseau Ferré de France

(RFF) – State owned

Access Charges(for use of rail infrastructure)

The first opened in 1981

between Paris and Lyon

(480 Km) and now total

network 1887 km. French

govt. plan to have new 2000

km HSR lines by 2020.

Borrowing from the

international markets to

enable it to undertake

major projects but not on

a particular project

basis. This funding is

supported by

government guarantee

but is restricted to the

amount that RFF can

repay from the access

fees

The rolling stock for the

TGV lines is procured

by SNCF and is funded

through lease

commitments

IMPLEMENTATION OPTIONS

IMPLEMENTATION OPTIONS

Considering the case studies, following could be the

implementation options

Non – PPP Option: The project are implemented by the

Government on EPC basis

PPP Options

Option 1: Design, Build, Finance, Operate and Transfer

(DBFOT) of the entire project by a single Private Developer

Option 2: Unbundling the project into different components, so

as to make the project components attractive to private players

from the perspective of affordability in terms of size and risk

allocation:

B&T (Fixed infrastructure)

DFOT (Train operations)

IMPLEMENTATION OPTIONS

Whether project is implemented through PPP or partial

Government funding route, pre-construction activities should

be started in a programmed manner – Government guidelines

MOR has already created a company named High Speed Rail

Corporation of India as a subsidiary of RVNL.

FUNDING OPTIONS

Project Development Activities

A separate fund may be created

To be recovered from viable projects along with additional fee

Rolling fund for further project development activities

Funding Support for PPP projects:

Viability Gap Funding

Multilateral/Bilateral loans by providing Centre government

guarantees

Centre government guarantee for Long term Bonds of Project

SPVs

FUNDING OPTIONS

Funding Support for Non-PPP Projects

Directly funded by Centre/State Governments

Other Sources of Funds

Revenue share from Concessionaires (train operators)

Contribution from State Governments

Real Estate Development

STATUS OF PREFEASIBILITY STUDIES

Project Corridors Status of Prefeasibility Studies

Pune – Mumbai - Ahmedabad Final Report submitted.

Delhi – Agra-Lucknow-Varanasi-

Patna

Final Report submitted.

Howrah –Haldia Final Report submitted.

Hyderabad-Dornakal-Vijaywada-

Chennai

Draft Final Report submitted.

Chennai-Bangalore-Coimbatore-

Thirvanantpuram

Draft Final Report submitted.

Delhi – Chandigarh - Amritsar Consultant yet to be engaged

Delhi-Jaipur-Ajmer-Jodhpur Consultant yet to be engaged

State: Maharashtra/Dadra-Nagar-Haveli (UT)/ Gujarat

Main Features

Route length 546 km

Maharashtra -176 km

Dadra-Nagar-Haveli (UT) 6 km

Gujarat -364 Km

MUMBAI-AHMEDABAD

HIGH SPEED RAIL

MUMBAI-AHMEDABAD : MAIN FEATURES

Stations and Terminals:

2 Main Terminal Stations in Mumbai, and Ahmedabad

3Intermediate Stations in Navi Mumbai, Surat and

Vadodara.

1 Depot : Main Depot in Ahmedabad (Geratpur)

MUMBAI-AHMEDABAD : MAIN FEATURES

Speed:The operation speed has been assumed to be 350kmph.

The best travel times at this speed (without stops)1’52”.(Avg commercial speed will be 286 kmph)

At the horizon year 2021, this operation speed will be the

worldwide standard.

A 350 Km/h operation speed provides 12 minutes time savings

between Mumbai and Ahmedabad compared to a 300 Km/h

speed although energy consumption increases by 27%

INVESTMENT COST

• Construction - @ Rs.80 Cr per route Km ˜ Rs 800

Million/Km

• Estimated – Rs 45,000 Cr (year base 2009)

• Rolling stock – Rs 5000 Cr for 2021 HSR offer

TALGO MODEL

Revolutionary concept

Lightweight construction

Articulated union between cars

Low floor coaches

Independent wheels

Aerodynamic design

Speed: 130 km/h in tests

First commercial Talgo service in Spain

Aluminium construction

High comfort level for passengers

Open gangway between cars

On-board services and AC equipment

Talgo Maintenance services

Speed: 120 km/h in comercial servicies

Guidance system

Automatic variable gauge system in ’69

Night and day services

Quality in manufacturing and maintenance

(more than 45 years of commercial service)

Speed: 200 km / h

Natural Tilting

Pneumatic suspension

Increased speed to 30% while maintaining a high

level of comfort

Munich test bench: 500km / h.

Speed: 220 km / h

Push-Pull Diesel Intercity train

Automatic variable gauge system in power heads

Multiple possible configurations

World Record in traction diesel 256 km / h

Speed: 220 km / h

Very High Speed

Lowest energy consumption in HS

Lowest noise emissions in HS

Lowest weight in HS

Great interior space

Best in the world in accessibility

Speed: 350 km/h

High Speed

100% Spanish Technology

First locomotive with variable gauge

system

Dual voltage

Speed : 260 km/h

High Speed

Interoperability

Change width

Low energy consumption

Low noise

Accessibility

T250: Dual Voltage

Hybrid: two diesel engines (1800, vel 220 km /h)

Speed: 250 km / h

Low consumption

High capacity 3+2

Modularity

Flexibility

Use of recyclable materials

TSI European Standards

Speed: 380 km / h

1942 TALGO I

1950 TALGO II

1968 TALGO III

1980 PENDULAR TRAIN

1998 TALGO XXI

2001 TALGO 350

TRAVCA

TALGO 250, 250 Hybrid

2012 NEW TALGO HIGH

SPEED PLATFORM “AVRIL”

PASSENGERS COACHES

Seats and Night Couches

Tourist, 1st Class, 1st Class

PMR, Etc., Couches

Bistro and Restaurant Couches

Tourist , 1st Class, 1st Class PMR, Etc., Cabins

Super Reclining Seats Couches

Speed: 160-220 km / h

TALGO TECHNOLOGICAL DEVELOPMENTS

Very High Speed

High Speed

Intercity

Locomotives

THEIR TRAINS PORTFOLIO

PRINCIPLES OF TALGO TECHNOLOGY

Lightweight construction Lower traction cost and higher acceleration

Articulated union

Guided axles

Independent wheels

Natural tilting

Higher acceleration and increased safety

Higher acceleration, increased safety and lower maintenance cost

Increase comfort, decrease noise and track adaptability

Higher speed on curves and higher confort

LIGHTWEIGHT CONSTRUCTION

• Lower traction cost

• Higher acceleration

• Lower track interaction

• Less aerodynamics drag

•Higher passive security

•Guidance facility

• Lower maintenance and higher reliability

ARTICULATED UNION BETWEEN CARS

ADVANTAGES:

ADVANTAGES:

ADVANTAGES OF THEIR TRAINS

GUIDED AXLES

• Higher acceleration

• Increased safety

• Lower maintenance cost

INDEPENDENT WHEELS

ADVANTAGES:

• Increases comfort

• Decreases noise

• High track adaptability

ADVANTAGES OF THEIR TRAINS

•Zero energy consumption

•Maximum reliability due to its simplicity

•Zero maintenance and manufacturing cost

•Improved passenger comfort

•No additional investment on infrastructure needed

•Higher speed in curves

NATURAL TILTING SYSTEM

ADVANTAGES OF THEIR TRAINS

CHANGE OF GAUGE WHILE MOVEMENT

BASEL TO PARIS BY TGV TRAIN IN 2009

HIGH SPEED TRAIN BY SNCF FROM PARIS TO GARE DU CREUSOT IN 2012

HIGH SPEED TRAVEL MADRID TO CORDOBA IN 2012

VISIT OF TALGO MAINTENANCE DEPOT IN 2012

SNCF WORKSHOP AT ROUBEN IN 2012

SPAIN DISASTER: TRAIN JUMPS OFF THE TRACKS ON APPROACH TO NORTH-WESTERN CITY OF SANTIAGO DE COMPOSTELA

SPAIN KILLING 80 PASSENGERS

In Spain there is a provision of refund of 100% fare if the

train is late by more than 5 min. In this case destination was

about 5 kms and only 5 min was left to reach platform at

destination. European Rail Traffic Management System

(ERTMS) is normally available for High Speed route to take

care of such eventuality. In this case it was about to be

provided in next few days. The conventional system AFSA by

Dymetronics was discontinued only few days back and the

new system ERTMS was not in place. The driver was under

pressure to reach destination within the permitted time and

Technology was not there to check and control. It seems to

be Human Error with System Failure and gives a feeling as if

it had happened in India.

THANK YOU

TGV, FRANCE

In addition to borrowings, the TGV lines have also been developed with grant

funding from local sources. Funding pattern for three TGV lines are:

Funding by Source TGV Est East Rhine Rhone Brittany loire

French State 39% 31% 32%

Regional funding 24% 29% 35%

RFF 22% 26% 33%

SNCF 2% 4% n/a

EU 10% 8% n/a

Luxembourg 4% n/a n/a

Switzerland n/a 3% n/a

Concession model Partnership contract

► Rail operators pay an

access charge based on

their actual use of the

infrastructure

► Demand risk lies with

the concessionaire

►RFF pays a rental or

availability fee based on

the performance of the

private sector partner

► Demand risk remains

with RFF

Forms of PPP

models

followed by

RFF to create

Infrastructure

Infraspeed Consortium: Fluor Daniel

BV, Koninklijke BAM/NBM Amstelland

NV, Siemens Nederland NV, Siemens

Transportation Systems, Innisfree

Limited and Charterhouse Project

Equity Investment Limited

30 years Concession on DBFM (PPP)

basis

HSL ZUID, NETHERLAND

HSA

Dutch govt –

6 D&C contractors

One D&C

contractorRail Systems

Network Connections

Substructure

Passenger Transport

• 125 km line between the

Netherlands (Amsterdam)

and Belgium border

(Schiphol).

• This lines provides

connectivity of Amsterdam

to Brussels and Paris

HSL ZUID, NETHERLAND

The PPP did not include the transfer of any demand risk. Infraspeed is

remunerated on an availability basis, subject to deductions for unavailability of

the infrastructure.

The Dutch government finances:

The substructure of the HSL

The PPP infrastructure payments to Infraspeed

These are partly financed by revenue from HSA Total costs: €7.2bn.

The value of the PPP element of the project was approximately £1bn. The £1bn

project financing for the PPP includes:

€605m syndicated term loan (comprised of two Senior loans with a term

of approximately 27 years)

€119m subordinated debt bridge facility

€15m working capital facility

.

TAIWAN

Consortium led by

Kawasaki Heavy Industries

• A concession to finance,

construct, and operate the

High Speed Rail System

for a period of 35 years

and a concession for HSR

station area development

for a period of 50 years.

• Demand risk

transferred to the private

sector operator

Taiwan High Speed Rail Corporation:

Alstom Transport SA of France and

Siemens AG of Germany

• The link Taipei to

Kaohsiung - total length

of 345km.

• The project had a

construction value of

approximately US$18bn.

Procurement of Rolling Stock

Taiwan Govt.

10 % of yearly earnings to

government for further HSR

development during the

HSR operating concession

period regardless of the

performance of the

concession company.

The accumulated amount

could not be less than

US$3.4bn.