EFRTC and Czech Technology platform “Interoperability of railway infrastructure”

Imrich KorpanecEFRTC Secretary General

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• EFRTC as platform for contractors for cooperation in fair competition• Key success critical areas vital for contractors• Contractors market and relations to clients – outcome of market strategy study• Remits for other identified work streams vital for infrastructure managers and contractors• EFRTC – UNIFE Task Force on On track Machines (OTM

Content of the presentation

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EFRTC

• Federation of national associations and national coordinators representing the majority of specialists trackworks contractors in the countries of EU and EFTA• at present national associations of 13 EU/EFTA members states are EFRTC full members, namely Belgium, Bulgaria Czech Republic, Estonia, France, Germany, Italy, Luxembourg, the Netherlands, Portugal, Spain and UK• they represent about 150 contractor companies with total turnover of some billion Euros (only for track works about € 4 billions) and significant workforce (about 25 000 skilled and specialized staff) using most advanced technology for the construction, track renewal and maintenance mainly performed under the contracts with all major European infrastructure managers

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EFRTC major objectives• Promote liberalization of European market for track construction, renewal and maintenance to be carried out by effective and competitive private sector contractors • support further harmonization of rules and regulations in technology, safety and operation related to contractors as basis for interoperability and further standardisation• Aim at achieving cross-acceptance of track machinery, staff and works as a key barrier for further market opening• Support technical innovations and improvements in safety, quality and competency and thus contributing to increase of overall efficiency of rail sector• Represent the interests of the Federation and its members with regard to European institutions, governments, public bodies and its clients’ associations such as EIM, CER and UIC

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EFRTC & railway infrastructure costs• Infrastructure accounts up to 50 to 70 % of total costs of operation of railways• In EC 15 about 30 billion is spent on existing infrastructure annually of what about € 20 billion for renewal and maintenance• It can be estimated that about the same level of investment will be needed for the new EC members for upgrading the existing network so in total about € 40 billion annually• Any potential savings will have a tremendous impact on the efficiency of investments into railway network and its operation• EFRTC supports business approach through overall supply chain with all partners aiming at increasing performance, efficiency and quality through innovative solution driving cost reduction of rail system operation

A B C

Market Strategies Long Term Funding and Strategic

Planning

Work programming

D E F

Project Management and Logistics

Contracting Strategies

Rules and Regulations

G

Plant

Key success critical areas

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Market strategy study

• participation of 16 IM and 13 contractors from 17 European countries• Some Survey Conclusions concerning

• decision-making criteria for in-sourcing/outsourcing

• value-adding behaviours

• value-destroying behaviours

• Case Studies• European Landscape• Result

Decision making criteria – in order of importance

1   Cost optimisation4,3

 How critical the activity is, desire to maintain a certainlevel of control 4,1  Level of competition on the contractors’ market 4,1  Keeping knowledge and know-how inside the company

4,0  Own resource optimisation 4,0

4  Evidence that the contractor has appropriate resources and the capability to deliver the activity to the agreedspecifications and schedule 3,8

5   Access to technology / innovation / knowledge 3,76   Large vs. smaller volumes of work 3,6

  Peak period leading to an overload of work 3,5  Competence available in-house vs. competenceavailable on the market 3,5  Contractor’s track record of successful projects 3,5

8   A positive risk analysis has been carried out 3,0

9  There is a rigid, constraining framework (national law,political context, pre-defined policy…) that limitsin/outsourcing decisions by the IM 2,8

2

7

Please rate the following criteria according to their importance in taking decisions to in/outsource maintenance & renewal works

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• good safety and environmental culture at all levels• clarity and simplicity of technical, legislative and

safety standards required to be met in delivering the works

• collaboration and concise, clear, timely communication

• work is delivered to the agreed quality first time

Survey of Value-Adding Behaviours – Most Important:

• Lack of clarity in scope of work to be done, frequent uncontrolled and late changes by client, specifications, standards and capacity

• Poor site management or pressure to take short cuts

• Short notice change to track access requirements or availability

• Poor quality work requiring corrective actions and thus reducing track capacities for operators

Survey of Value-Destroying Behaviours

Case studies• PRORAIL on process of outsourcing track maintenance in the

Netherlands

• RFF – examples from performance contract which may affect outsourcing in France

• Network Rail system of performance assessment of contractors offers and works in GB

• GB (RIA) Value Improvement Programme driving waste out of the supply chain using collaborative behaviours

• Finland on collaborative process of product life cycle and performance assessment by outsourcing

• Switzerland - positive experience from collaborative way of working in whole supply chain with client (from long term planning to performing the work)

A guidebook for both Infrastructure Managers and Contractors to help encourage open dialogue, develop transparency, promote value-adding behaviours, and showcase good practice

Result

Working stream B – Long term funding and strategic planning

• Remit with objectives, tasks expected deliverables and schedule ready and agreed with EIM and CER for more than a year• Due to lack of resources on the side of IM who should be leader works has not yet started• An agreement reached that after the completion of Market study EIM will reinitiate call for experts jointly with EFRTC and CER• Study is vital for lobbying governments and Commission for assuring long term funding into infrastructure• Purpose is to deliver proposals on how to empirically measure the benefits of MAC with expected deliverables such as

− Set of quantitative indicators showing benefits of long term funding− Cost reduction/increase of output in relation to length of contract− Set of common KPIs to be used by IM/Contractors showing outputs in key areas to support EIM/CER in discussions with member states

Work stream E – Contracting Strategy

Purpose• reflect the specific conditions for railway track work services, e.g. heavy and expensive track machinery designed for special scope of works, well skilled operators, etc• aim at transparency in competition and at equality of opportunity in tenders• harmonise legal and regulatory framework for tendering and contracting within EC • bring about a shift from outdated culture of mistrust to one of confidence and partnershipEFRTC has appointed the leader and is ready to start, however, there is

− Lack of resources both on side of IM and contractors− Some reluctance to treat the issue in particular by IM not yet fully separated from railway operators

• high cost of OTM authorisation/ homologation/ certification – up to 20 % of product

• long time of OTM authorisation for placing into service - up to one year or even more

• with some exception – no cross – acceptance of authorisation even for the same type of machine

• and many more details…

OTM - Current situation

To simplify current processes for authorization of On Track machines (OTM) with the aim of reducing costs and shortening time for placing the OTM in service

To facilitate the cross-acceptance of On Track Machines with the aim at further opening of the market for construction, renewal and maintenance of railway lines in Europe and increasing the competitiveness of European construction industry worldwide

Objectives

TSI compliance at no cost increase but simplifications, cost and time reduction

Transparency of authorisation and clarity of assessment criteria in all EC regulatory framework and national reference document

Type certification against TSI by manufacturer to be Europe-wide acknowledged – re-checking strictly limited

Specific national requirements to be declared and known in advance in national reference documents to be accepted by ERA

Acceptance of EN 14 033 in national rules is to be reviewed with the aim for identifying potential for harmonisation and basis for cross-acceptance

Basic requirements

Thank you !