Philippine Experience:Rolling Stock Fleet Procurement and Maintenance

Rommel C. Gavieta MA (URP), MSc (Eng)Metro Rail Transit Holdings Inc

Asia Rail Summit 2014Shangrila Hotel Bangkok, Thaiiand

Metro Manila as a Mega-City and Traffic Congestion 21 mega-cities are in Asia out of 36 mega-cities (2012)

• Metro Manila is second to Tokyo with 70% of the population taking public transportation. (http://ncts.upd.edu.ph/old/research/docs/research/papers/tiglao-EASTS2007-02.pdf)

• Jica experts has said that Philippine the government would need to invest P2.3 trillion through 2030 to overhaul transportation infrastructure in Metro Manila.

• It estimated that about P2.4 billion in potential income was being lost daily due to congestion at the capital’s roads and railways. (http://www.jica.go.jp/philippine/english/office/topics/news/130801.html and http://business.inquirer.net/158419/jicas-expanded-mass-transport-study-seen-out-within-2014#ixzz35kflDDX7)

Metro Manila as a Mega-City

http://www.forbes.com/sites/davidferris/2012/08/31/the-stark-environmental-challenge-of-asias-megacities/2/

Proposed Metro Manila LRT/MRT and Rail Lines

Proposed Lines (JICA):

Primary Lines: 1. PNR rehabilitation or LRT5 (PhP25b Malolos-

Calamba), (LRT5)2. MRT4 and MRT7 (Recto to Banaba PhP180billion), 3. Mega-Manila Subway (550billion)4. Baclaran-Bacoor or LRT6 (PhP60billion PPP

awarded)

Secondary: 4. Ortigas-Angono (PhP32b), 5. Marikina-Katipunan (PhP32b),6. Alabang-Zapote (PhP27b)7. Zapote-General Tias (PhP26b)

 

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Matching Design Capacity with Appropriate Types of Rolling Stocks

Seven generic types of train: • Shorter Distance Self-Powered (diesel,

generally with 75 mph maximum speed); • Middle Distance Self-Powered (diesel, with 90/

100 mph capability); • Long Distance Self-Powered (diesel, with 100/

110/ 125 mph capability); • Shorter Distance Electric (generally with 75

mph maximum speed); • Middle Distance Electric (with 90/ 100/ 110

mph capability. Some future trains may require • 125 mph capability); • Long Distance Electric (with 100/ 110/ 125

mph capability); • Very High Speed Electric (140 mph and

above, for domestic services on HS1 and HS2).

(ATOC; Long Term Passenger Rolling Stock Strategy for the Rail Industry; Feb 2013)

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Existing Metro Manila LRT/MRT and Rail Lines

Existing LRT/MRT and PNR Lines Capacities LRT/MRT and PNR Lines LRT1: 15km competed 1985 (street cars operating as LRTs) • 430,000 passengers a day • 139 cars operating only 80 cars • 550,000 passenger a day design capacity

LRT2: 14Km completed 2008 (MRT operating as LRT)• 250,000 passengers a day • 72 cars operating only 43 cars • 360,000 passenger a day design capacity

MRT3: 16km completed 2000 (street cars operating as MRT)• 450,000 passengers a day • 70 cars operating 40 cars• 350,000 passenger design capacity

PNR: 56 km Urban Line • 100,000 passengers a day in a traffic corridor that carries

approximately 1.0million commuters a day. • 18 cars and 56km

Benchmarking against Globally Accepted Reliability Norms in Rail Revenue Service

MTR Hong Kong Train Reliability: train car-km per train failure causing delays ≥ 5 minutes

Rolling Stock and Track Maintenance Co-relationship Strong mutual dependency and interference of wear and tear of key assets (rolling stock and infrastructure) – this does not hold true for gas and water, telecom and electricity, or air transport

• The cost and quality of train operations depend on the condition of the tracks (high maintenance requirement for rolling stock, low maximum speed, etc. if tracks are in bad condition)

• The cost of infrastructure maintenance depends on the condition and operation of rolling stock (high wear and tear of tracks if wheels are uneven, speed is high, braking is strong, etc.)

Design Capacity and Operating Capacity

LRT1 Rolling Stock Fleet(3 types and another type to be delivered approx. 2016 owned and procured by public sector which was just recently privatized)

LRT1 1st generation LRVs • Delivered in 1984 from Belgium and refurbished in 2004 • 63-units, • Only 37-units are operational. • Maintenance Service only • Parts and Refurbishment are subject to annual appropriation risks

Based on DOTC's bid documents for the LRT1 South Extension Project (LRT1)

LRT1 2nd generation LRVs• Delivered in 1999 from AdTranz manufactured in Korea • 28-units, • Only 8-units are operational. • Maintenance Service only • Parts and Refurbishment are subject to annual appropriation risks

LRT1 3rd generation LRVs • Delivered in 2007 from Japan • 48-units • Only 44-units are operational• Maintenance Service only • Parts and Refurbishment are subject to annual appropriation risk

MRT Rolling Stock Fleet(73 procured by private sector owner and 48 procured by public sector operator subject to consent of private sector owner)

MRT3• 73-cars from CKD procured by the Private Owners of the Assset • Reliability Centric maintenance service by Sumitomo

Corporation from Completion Date (2000) to 2012 with a guaranteed availability of 60 cars, spare part inventory and refurbishment requirement.

• Service centric maintenance service by local company with no spare part inventory requirement and no refurbishment commitment

MRT3• 48 cars from CNR procurement by operator • Deployment for revenue service requires the consent of the

owner of the MRT3 Asset and may pay trackage fees to alleviate capacity congestion.

MRT3 Phase 1 Comparative Maintenance Administration

2000 - 2012: MRTC-Sumitomo Corp. (TES-P)

2012 - 2013: DOTC-Metrostar-PH Trams

2014 - onwards: Foreign Direct Investor (FDI)

Phase 1• 80% guaranteed availability of cars

or 60 rail cars available everyday• 450,000 riders a day at 30% over

design capacity • Maintenance Provider was

Sumitomo and Bombardier (Subcontractor Signalling)

• Maintenance fee at US$1.2million to US$ 1.4mn for parts, service and refurbishment on 7th year

Phase 1• 54% availability of cars or 40 rail

cars available everyday.• 450,000 riders a day at crush

capacity • Maintenance Provider is PH Trams• Maintenance fee at US$ 1.2mn

service ONLY w/o parts and refurbishment on 7th year.

Phase 1• 90% guaranteed availability or 152

rail cars available everyday• 4-car train & 2 minute interval

service• 770,000 riders a day design

capacity• Maintenance with refurbishment

on 7th year.

• LESS THAN 5 INCIDENCE OF REVENUE SERVICE INTERRUPTION A YEAR THAT IS GREATER THAN 5-MINUTES

GREATER THAN 5 INCIDENCES OF REVENUE SERVICE INTERRUPTION A YEAR THAT IS GREATER THAN 5-MINUTES

MRT3 Phase 1 Comparative Maintenance Project Benchmarks

2000 - 2012: MRTC-Sumitomo Corp. (TES-P)

2012 - 2013: DOTC-Metrostar-PH Trams

2014 - onwards: Foreign Direct Investor (FDI)

Phase 1• 80% guaranteed availability of cars

or 60 rail cars available everyday• 450,000 riders a day at 30% over

design capacity • Maintenance Provider was

Sumitomo and Bombardier (Subcontractor Signalling)

• Maintenance fee at US$1.2million to US$ 1.4mn for parts, service and refurbishment on 7th year

Phase 1• 54% availability of cars or 40 rail

cars available everyday.• 450,000 riders a day at crush

capacity • Maintenance Provider is PH Trams• Maintenance fee at US$ 1.2mn

service ONLY w/o parts and refurbishment on 7th year.

Phase 1• 90% guaranteed availability or 152

rail cars available everyday• 4-car train & 2 minute interval

service• 770,000 riders a day design

capacity• Maintenance with refurbishment

on 7th year.

• LESS THAN 5 INCIDENCE OF REVENUE SERVICE INTERRUPTION A YEAR THAT IS GREATER THAN 5-MINUTES

GREATER THAN 5 INCIDENCES OF REVENUE SERVICE INTERRUPTION A YEAR THAT IS GREATER THAN 5-MINUTES

• Total subsidy is at least PhP6.3billion

• Total subsidy for the two years is a total of PhP9.4billion

NO SUBSIDY

Lessons Learned from Public Sector Budget Allocation 2000 to 2013 for MRT3(Lease Payment, Personnel Services, Maintenance & Other Operating Expenses Capital Expenditure and Subsidy)

DOTC

OPE

X an

d CA

PEX

budg

et (

US$

) DOTC M

RT3 Subsidy per passenger (US$)

DOTC

OPE

X an

d CA

PEX

budg

et (U

S$)

DOTC M

RT3 Subsidy per passenger (US$)

Actual O&M 25-year MRT3 Project

Modified ERP and O&M 25-year MRT3 Project

Lessons Learned in LRT1 and MRT3 Maintenance Regimes and resulting Design Capacity and Actual Ridership

LRT1 actual ridership is always below potential design capacity • Public Sector Procurement of

rolling stock • Public Sector Procurement

Maintenance Services Only

MRT3 actual ridership was higher than design capacity during private sector responsibility for procurement of maintenance services

MRT3 actual ridership fell during public sector responsibility for procurement of maintenance service only.

Indicative trend of effect of shift from a privately administered maintenance service. to a publicly administered maintenance service

Recognition of Current Framework for Procurement Practice of Rail Systems and Rolling Stock

LRTA Current Practice Proposed Action Moving ForwardDisconnected Procurement and O&M Policy

Recommendation • Harmonized procurement and O&M Policy• It is entirely appropriate that strategic decisions

about rolling stock procurement and specification should be taken centrally. Given the level of fragmentation of the sector/industry

(Butcher, L; Railways: rolling stock Standard Note: SN3146; 31 October 2013; House of Commons)

Procurement Policy driven specification and lowest cost

Recommendation:Procurement Policy that is Performance Standard centric

Technical Strategy Leadership group; The Future Railway; 2012 UK

Current Level of Awareness

Understanding Operations and Maintenance Cost “Rules of Thumb”

• Operation and maintnance represents approximately 80% of the Total Cost of Ownership (TCO) .

In the case of the MRT3, over the concession period the ratio is 86% O&M and 14% project cost

• In the case of MRT3, the ratio distribution of the maintenance fee is 60% rolling stock and 40% infrastructure

• Approximately 60% of maintenance cost are personnel cost and 40% for material and parts

• Maintenance cost is the major cost position subject to optimization as energy and depreciation stay consistent during lifecycle of rolling stock fleet.

(Author own calculation and Wyman, O.; Lean Rolling Stock Maintenance; 2009 oliverwyman

Strategic Framework for Procurement of Rail Systems and Procurement of Rail O&M Services

Strategic consistency, not short-term opportunism

If authorities are to deliver the desired outcomes of transport projects, it is desirable that they set a long-term path and then work continuously towards it.

Strategies and plans need to be fully worked through by the authorities that create them.

There is a risk that documents with titles that include the word “strategy” will, in fact, be short-term statements of intent

(Success and failure in urban transport infrastructure projectsA study by Glaister, Allport, Brown and Travers KPMG’s Infrastructure Spotlight Report)

Zoeteman, A.; Life Cycle Cost analysis for managing rail infrastructure; EJTIT, 1, no. 4 (2001), p391-413; The Netherlands

Limitations and constraints like capital funding, resource availability of plant, parts, operating budgets, time, support services and workforce skills are realities that directly related to maintenance activities. (http://www.apta.com/mc/rail/papers/Papers/WeissM-Challenges-of-Matching-Maintenance-Programs-to-an-Aging-Rolling-Stock-Fleet.pdf)

Reliability Maintenance Framework • process to ensure that assets continue to do what their users require in their present operating context.

• Successful implementation of RCM will lead to increase in cost effectiveness, machine uptime, and a greater understanding of the level of risk that the organization is managing.

Predictive Maintenance Fraework• process designed to help determine the condition of in-service equipment in order to predict when maintenance

should be performed. • This approach promises cost savings over routine or time-based preventive maintenance, because tasks are

performed only when warranted.• The main promise of Predicted Maintenance is to allow convenient scheduling of corrective maintenance, and to

prevent unexpected equipment failures. The key is "the right information in the right time".

“Challenges” to managing rolling stock at various stages of their life cycle are “real” and familiar to railway operating agencies

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Modified Predictive Maintenance Framework

There is a continual need to employ a “Kaizening*” process that confronts and combats the challenges of common constraints, in order to create “adaptive” and “balanced” maintenance programs, that are justifiably well planned and timely executed. (http://www.apta.com/mc/rail/papers/Papers/WeissM-Challenges-of-Matching-Maintenance-Programs-to-an-Aging-Rolling-Stock-Fleet.pdf)

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Looking at the Benefits and Moving Forward

• What are the benefits to the public first and then to public and private sectors? 

• Robust fleet plans aligned with long term business strategies.

• Effective vehicle architecture comparisons, enabling optimal fleet selection for the intended application.

• Rolling stock that aligns with the maintenance and operational philosophy at an optimum cost.

• A fleet with known lifecycle costs, capable of delivering a sustainable service.

(http://www.lr.org/en/rail/rolling-stock/fleet-procurement/index.aspx)

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Thank you for your time and patience