p. 18

p. 22

All the Ins and Outs

Arrow Flying Through Time

Lifetime Service p. 8All the Ins and OutsLifetime Service

Introducing TEM19 Shunting Locomotive p. 12

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GAZIN

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A Magazine for Transmashholding Partners

Editor-in-ChiefKonstantin Dorokhin

k.dorokhin@tmholding.ru

Editorial Office address:26 Butyrskiy Val St., bldg. 1,

Moscow, 127055Phone: (495) 660-89-50

Published in collaboration with MediaLine Publishers

www.medialine-pressa.ruGeneral Manager

Larisa Rudakova

Design ArtistIlya Malov

Editorial DirectorBoris Voytsekhovskiy

Copy EditorElvira Khayrullova

Design and TypesettingElena Popova

Inna Titova

ProofreadersNatalya Konnova

Galina BondarenkoLarisa Nikolina

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Approved for printing on March 21, 2014Printed by Union Print print shop

Press run: 999 copies

company news

Con ten t s № 1 0 3 / 2 0 1 4№ 1 0 3 / 2 0 14

cover storyTransmashholding Launches a Joint

Information System

productsHighlight

of the Past Year: Unveiling

of TEM19 Shunting Locomotive 12

technology Interactive Operation

Manuals – Taking Product Competitiveness to a New

Level 18traditions

The Red Arrow Traditionally Repaired at

Oktyabrsky Electric Railway Car Repair Plant 22

managementMetrowagonmash

Rents Novogireyevo Depot 812

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M A G A Z I N E F O R P A R T N E R S

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Passenger Cars: Now Also in Mongolia

NewsCooperation

832 New Subway CarsContracts

Deliveries

Metrowagonmash has been contracted to build 352 subway cars for the Moscow Metro in 2014, or a total of 832 cars by the end of 2017. Metrowagonmash and the Moscow Metro have inked a con-tract under which the capital city subway will take delivery of 832 new subway train cars (104 trains) of the 81–760/761 Oka series. The plant is expected to deliver the first 352 cars (44 trains) already in 2014.

The contract also provides for life cycle service by the manufacturer. Metrowagonmash is expected to make the required number of trains available for daily service, assume responsibility for their operational integrity, and perform scheduled maintenance and repairs.

Notably, cars of the 81–760/761 series are equipped with a passenger cabin heating, ventilation, and air conditioning system and a CCTV system that relays the video signal to the central control room. An air decontamination system has been implemented in the new cars for the first time. Passenger cabins have electronic route information screens and LCDs. Car design is based on modern asynchronous traction motors, a microprocessor control system, and bogeys of a new design ensuring a smooth and quiet ride. Car bodies are made from stainless steel.

The Group delivered 40% more main line passenger diesel locomotives (42 units vs 30 units the year before) to buyers.Sales of passenger electric locomotives increased by 5% (50 units vs 41 units), while sales of main line freight electric locomotives are up 8% (434 sections vs 471 sections the year before). Deliveries of subway train cars of the new Oka series increased by 38% (376 units vs 272 units).

Transmashholding will supply 20 TEM TMH shunting locomotives to Lithuanian Railways.Transmashholding Baltia has signed a contract with Lithuanian Railways for delivery of 20 TEM TMH shunting locomotives.

Deliveries will begin in late January 2014.

Under the contract, the Russian manufacturer will deliver TEM TMH locomotive kits to Vilnius Locomotive Repair Depot that will perform final assembly. The shunting locomotives will be based on the tested and well performing underframe of the TEM18DM diesel locomotive and equipped with Caterpillar diesel engines that are compliant with the UIC Stage IIIA environmental standard.

A total of 51 TEM TMH locomotives are currently in operation in Lithuania. Operational statistics of Lithuanian Railways indicate that fuel savings amount to 37% during shunting operations and 45% during clean-up operations compared to TEM TMH locomotives of earlier series. In terms of their operational characteristics, each TEM TMH locomotive can substitute two locomotives of previous generations.

The Baltic nations have been buying TEM TMH locomotives since 2009. In addition to Lithuania, they are also operated in Estonia. In the coming months, four more diesel locomotives of this series will enter service in Estonia.

Lithuania Buys New TEM TMH Locomotives

CPCC and DMZ have signed a contract for delivery of 26 new electric multiple units.Central Passenger Commute Company has committed to buy 26 new ED4M electric multiple units made by Demikhovo Mechanical Engineering Plant (DMZ).

Under the contract, the plant will manufacture four 12-car consists and twenty-two 11-car consists for CPCC. The client will be taking delivery of 290 cars in all.

All electric multiple units will be built by the end of 2014.

Four 11-car consists will be based on a modification of the so-called 500 Series of ED4M electric multiple units. They will have aerodynamic bodies with modern cabs of original design.

The new electric multiple units will replace those being taken out of service and will serve the peak-demand lines of the Moscow Transport Hub. Four electric multiple units will serve the routes connecting Moscow with Zheleznodorozhnyi and Reutov with Balashika; two more will serve the high-speed route to Kaluga; nine trains are destined for the Lobnya depot and nine more for the Nakhabino depot.

ED4M Electric Multiple Units for the Moscow Transport Hub

f i gu res

Sales total RUB

Sales of Transmashholding goods

and services in 2013 increased by 18%

The highest growth has been recorded in sales of shunting and main line freight locomotives:• Sales of shunting locomotives are up 90%; • Sales of main line freight locomotives are up 66%.

bln154

Tver Railcar Plant will build and supply 15 passenger railcars to Mongolia. New rolling stock has been ordered by Ulan-Bator Railways.Under the contract, all 15 cars (including 12 compartment cars, two sleeping cars, and one train master’s car with a special-ized compartment for a physically challenged passenger and one traveling companion) will be manufactured in the second quarter of 2014.

The cars will be based on Model 61 4440 and 61 4445 passenger cars. All of them will have a design speed of up to 160 km/h and will be equipped with air-conditioning, environmentally-friendly lavatories, train and car circuits of the Train Control and Monitoring System (TCMS), and video and audio broadcast-ing systems.

The car bodies will be made from stainless steel grades, increasing the service life of cars to 40 years.

Under the contract, all cars will be handed over to the buyer in the first half of 2014.

News

from 2012

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–Anatoly, would you tell us about the early days of your department? How

was it created and what were its tasks?— The decision to create the IT Depart-ment was made in 2005. The primary task of the new structural unit was to

build a unified information system and create a unified information space that would make it possible to manage all parts of the group effectively. The initial priority was to deploy «heavy» ERP (Enterprise Resource Planning) systems that had been popular at the time. We even came up with a comprehensive plan

and made preparations for a big tender to select a vendor to deploy this system. It was then that the crisis of 2008 broke out, and IT investments had to be put on the back burner. We started cutting costs and instead focused on improving the performance of the tools we had at the time.

System Approach

MANAGING SALES AND PROCUREMENT— By that time the group’s struc-ture was largely crystallized, and a need for unified solutions arose. How did you manage to accom-plish this, given your limited budget?— We simply ventured from the beaten path. At the time our group was already using the 1C platform. Our specialists used it as a platform for deploying the TMH-Budgeting system that functioned, and success-fully continues to function, as the corporate treasury, providing tools for planning and managing cash flows, collecting and consolidating manage-ment reporting data as part of the group’s budgeting process. That’s why the next centralized system that we started to develop inhouse was the sales management system, locally known by its Russian abbreviation SUMI. At the time the group united a dozen major plants, and sales happened along two routes: through centralized trading houses and directly to buyers from plant sites. Due to the substantial workload involved in managing the sales process, we encountered frequent setbacks and deviations, which caused time overruns, payment delays, and wasted worker time. The problems that accumulated called for an automated centrally deployed information system, and our SUMI became just that kind of system. This system now fully controls all sales transactions both via the trading house and directly with buyers, helping to plan and consolidate the group’s sales budget. Another important feature of the system is centralized monitoring of accounts receivable.

— A similar system has been implemented in procurement. Would you tell us about it in more detail?— You are absolutely right. It is the Inventory Automation System, locally known by its abbreviation AMTO. It is the other product that we fully

LARGE GEOGRAPHICALLY DISTRIBUTED COMPANIES OFTEN APPEAR AS CLUMSY ORGANISMS THAT ARE HARD TO MANAGE. AND YET MODERN BUSINESS PROCESS AUTOMATION TOOLS EASILY DEBUNK THIS STEREOTYPE. One example is the story behind the creation of a unified information system at Transmashholding, as told by Anatoly Ushakov, Deputy Head of the IT Department and Head of the Corporate IT Systems Development and Support Office.

developed and deployed using our inhouse resources. Unlike with the other centralized systems, the IT Department was involved in the creation of the AMTO only at the initial stage, before IT professionals of RusTransKomplekt took over further expansion and support of the system. The AMTO system enables our plants to plan procurement and issue purchase requisitions. RusTransKom-plekt accumulates the requisitions and processes them, keeps track of the prices and deliveries, and uses the resulting information to manage procurement for plants in real time. First, this has given us profound control of the product mix in the deliveries taken by plants. Second, we have secured additional discounts from suppliers owing to increased procurement volumes.The AMTO system also serves as a basis for a unified product mix classification of the group.

— What are the eventual benefits for the company from these tools?— To be honest, it is extremely hard to calculate the cost savings, and any estimates are bound to be ambigu-ous. You see, automation influences economic indicators indirectly. We make tools that help other business units to achieve certain goals Often-times, performance depends on how fully and properly these tools are used by business units. What’s more, the effect from automation is often manifested in increased transparency of processes and availability of data in real time, which in turn improves the quality of decision making. The effect of this is even harder to quantify. Still, I am able to give you some figures. For instance, cost savings from the launch of centralized modules that control accounts receivables in 2008 amounted to about a billion rubles.

UNIFIED STANDARDS— Obviously, you had to adapt the system once Transmashholding started cooperating with overseas

partners. How did you handle this task? — Indeed, after 2010 the company started attracting foreign investors, which resulted in rapid growth in the group’s IT infrastructure. To be able to work with foreign investors, we had to submit IFRS reports. At the early stages, there reports were prepared manually. We enlisted outside experts who prepared a consolidated report for us. This process took more than six months, and the primary workload involved not so much performing transformation and consolidation as unifying plant data. Plants used to keep their books according to RAS (Russian Accounting Standards — editor’s note). However, different interpretations of the requirements of Accounting Regulations resulted in different accounting policies used at each one of the plants. It was obvious that without implementing a unified corporate accounting policy and an appropriate IT system, we would have a very hard time sticking to the extremely tight deadlines expected by shareholders and ensuring appropri-ate quality in the process. It was then that we launched a project to reduce the time it took us to close each reporting period with a focus on addressing these problems. In implementing this project, we relied on assistance from Ernst & Young consultants, who wrote the methodol-ogy, and also from Infotex — a system integrator that physically implement-ed the system.

— Was this project created from scratch, or did you use any ready-made platforms and modules?— By that time, 1C products had proven their effectiveness within the group. That’s why we did not think twice before choosing the platform. We used 1C:Manufacturing Enter-prise Management software devel-oped by 1C and reworked it to ensure compliance with our corporate accounting policy principles. As a result, we obtained a unified methodological and informational solution that has been now deployed

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at all plants of the group. Notably, the consultants and contractors were working simultaneously: newly developed policies were implement-ed in the information system almost instantaneously and deployed at pilot sites — Demikhovo Mechanical Engineering Plant (DMZ) and Kolom-na Locomotive Plant. This helped us to minimize the risk that the princi-ples developed by consultants based on a theoretical footing would be difficult to implement in practice. The pilot sites fully switched to the new system on January 1, 2011. After one year, the system was rolled out at the largest plants of the Group: Metrow-agonmash, Tver and Bryansk Me-chanical Engineering Plants and Novocherkassk Electric Locomotive Plant. As part of the third stage commencing in January 2013, the unification project was launched at Bezhitskiy Steel Mill, Penzadiesel-mash, OEVRZ, Tsentrosvarmash, and Transmash. KMT switched to the unified system in January 2014. All of these plants currently use a unified corporate template of the unified information system. The template has been arranged so that the information system based on it, despite its objective limitations, would allow local modifications by plants to make it adaptable to local requirements. As a result, the unified information system has become the core of automation at plants, uniting not only corporate accounting principles, but also local solutions that existed at plants before the corporate template was adopted. The achievements of the project are substantial. First of all, we achieved the overriding goal of the project: the time that it takes to prepare monthly reports has been reduced from 15–20 days to eight business days, and the time it takes to prepare consolidated IFRS reports — from half a year to a month and a half. Together with the unified accounting policy we have implemented model processes of inventory accounting down to the level of store rooms in each shop. As a result, the con-

— Anatoly, would you tell us about the 1C:Consolidation system?— The 1C:Consolidation system is the core of the entire IFRS corporate reporting system. It aggregates all data from unified systems of plants, which is then transformed, consoli-dated, and compiled into a final IFRS report. Note that input data is collected from plants in automatic mode. We refer to the input set of plant data as a spreadsheet pack-age (SSP). An SSP includes 50 forms, each one of them containing several dozen to several thousand indicators, and each indicator has a unique dedicated upload algo-rithm. This is not limited to input data; we also have mechanisms for automated cross-checking of data across all stages of report prepara-tion, forms that eliminate in-tra-group cash flows, introduce transformation adjustments, perform consolidation, and gener-ate the final report together with commentary.

— What is the practical result of implementation of this system?— There are two primary results: the shorter amount of time it takes to prepare reports and higher reliability of IFRS reports. The deadlines are set by foreign shareholders that have to receive and process our reports before the end of their fiscal year. Higher reliability directly minimizes the risks associated with report quality and audits. Obviously, when reports have been prepared according to unified and verified algorithms, it is much easier to check them, their qualify is much higher and they inspire more trust, leaving fewer faults for auditors to point out.

— Is it safe to say that the task of implementing a unified informa-tion system has been completed successfully?— Yes, we have finished creating the core of the unified information system. We have deployed a unified

1C AT TRANSMASHHOLDING

2005–2006 Analysis of “heavy” ERP platforms (other than 1C) to determine if they can be used as an underlying standard. Implementation of local 1C solutions at some of the group plants.

2008–2009 Full-scale cost cutting, development using inhouse resources; centralized procurement management system (AMTO) and sales management system (SUMI) deployed on the basis of model 1C solutions.

2009–2010 Launch of practical implementation of comprehensive automation systems at DMZ, KZ, and BMZ.

2011Launch of an ambitious project to implement a corporate accounting policy and an unified information system.

t ime l i ne information environment consisting of the centralized systems of the group and unified systems of plants. All systems are based on unified methodological principles and are closely integrated using the corpo-rate data transmission gateway.

STEPPING INTO THE FUTURE— What corporate IT development projects is the IT Department going to be working on in the near future? — Our plans center on three major aspects: developing a unified module for planning and real-time management of production; upgrad-ing the corporate document work-flow system; and developing the inventory procurement system.

Production Management and Inventory Planning Module — The primary tasks of the module are to ensure real-time management of production and associated management of inventory flows. Development of this module has been necessitated by the fact that plants currently use different information systems for production planning and planning of procure-ment of raw materials and supplies, and the two systems are not always properly aligned. For example, plants can buy materials that are not used as part of the production program, or fails to buy the neces-sary materials that are in short supply, thus causing time overruns. These issues can be resolved only with the aid of an information system in which the entire chain, from the product manufacture plan to the procurement plan, would be trans-parent, understandable, and easily manageable. Developing this methodology was a challenging task. That’s why we started off by study-ing and generalizing the experience of leading plants of the group, reviewed the western standards and practices of production planning, and only then started the practical implementation of the production planning module. We also had to

take account of the existing objec-tive reality of the group: low quality of the regulatory framework, fre-quent regulatory changes and production plan revisions, operation-al errors during document input onsite.Pilot implementation of the unified production planning module is currently underway at Metrowagon-mash. Overall, implementation of the hardware and software aspect of the project has been virtually completed at this time. However, the main objective has not yet been achieved in light of the low quality of the plant’s regulatory framework. Essentially, what we are seeing is that the design composition and product structure underlying the planning processes often differ from the products that are actually purchased and used to assemble rail cars. However, thanks to painstaking efforts by Metrowagonmash employ-ees there are now much fewer mistakes in regulations and directo-ries, and toward the end of the second quarter we are planning to complete pilot implementation of the module of automatic planning of demand for inventories. Then, in 2015–2016, we expect to start replicating the ready solution to other group plants.

Electronic Document Workflow— Transmashholding Group currently has a corporate system of electronic document workflow management (known by its Russian abbreviation KSED). Implemented eight years ago, it is the oldest of the group’s IT systems. Unfortunately, over the years it has become obsolete and is no longer able to fully accomplish the current tasks of increasing the number of active users at plants or integrating with the unified informa-tion system. Moreover, support of the legacy KSED costs a lot of money and it takes unique specialists to service it. That’s why we are planning to switch to 1C: Document Manage-ment — a new electronic document workflow system based on the same 1C platform that underlies our primary accounting system.

Expansion of the AMTO SystemThe primary aspects of efforts along these lines are launching our own electronic marketplace to support automated (B2B) interaction with suppliers, implementing a unified register of procurement prices, a unified model form of the contract as part of the liabilities management system, and improving the mechanisms and mathematical algorithms for analyzing remaining inventories.

EKATERINA SIMOYANOVA, Head of the IFRS Reporting and Accounting Methodology Office at the Economics Department:

— The Economics Front Office handled all methodological aspects of the corporate template implementation project. We approved the accounting

principles to be observed at all Group companies. Since the Group unites 61 companies, and each one of them has various specializations, all accounting

principles were adapted to the structure and business streams of those companies. With the help of Ernst & Young consultants, we developed the

methodological aspect, specifically the corporate accounting policy (CAP) that has now been implemented at all Group companies.

The policy is a two-volume document running for thousands of pages where we have described the most essential aspects of accounting processes. With the

CAP in place, we developed the methodology of transforming our accounting to IFRS, prepared consolidated IFRS reports, and the methodology of eliminating

intra-group cash flows. Our current results are testament to the success of this project. We submit our reports in a very short time frame, and break our own

records in doing so. That’s why I believe that all of the project goals have been achieved.

cerned business units are able to receive information about the remain-ing inventories in real time. Moreover, the corporate template of the unified information system is essentially a foundation that can provide effec-tive support for organizational changes taking place within the group. One example is control of slow-moving inventories, which has been implemented by the RusTrans-Komplekt team using a dedicated automatic analytical module devel-oped on the basis of the unified information system. Thanks to a combination of organizational and information activities, between August and December 2013 the slow-moving inventories in plant warehouses decreased by 1.7 billion rubles.

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Lifetime ServiceUnder a 30-year aftersales service contract signed last year withthe Moscow Metro, Metrowagonmash has established a standalone division in Moscow. ON JANUARY 10, 2014, THE PLANT STARTED SERVICING ALL SUBWAY TRAIN CARS RUNNING ON THE KALININSKAYA SUBWAY LINE.

Management

The service center of Metrowagonmash is housed in the Novogireyevo electric

rolling stock depot staffed by the Moscow Metro professionals who previously served the Kalininskaya subway line. This critical subway line was transferred to the Metrowagonmash team without disrupting ongoing operations and without affecting passenger comfort.

Life cycle contracts (LCC) reflect an objective new trend in the operation of the largest consumers of railway products and the next stage of evolution in

mechanical engineering. Oil production, mining, airline, and construction companies in Russia are using such contracts on a wide scale.

A life cycle contract enables the Moscow Metro to achieve substantial savings of direct expenses for train car maintenance and focus on passenger transportation and efficient utilization of rolling stock. It also ensures a high level of operational availability of the fleet.

It is also worth mentioning that a contract like this enables both

VLADIMIR ANTONOV, Project Manager:

— I am lucky to be working at Transmashholding on a project that facilitates the evolution of the traditional concept of mechanical engineering. Ensuring effective work as part of life cycle contracts and achieving the goals set by the Moscow Metro is all part of an ambitious, challenging, and interesting task.What are the prospects of a life cycle contract?It is a tool that enables all the parties involved to improve reliability and reduce the cost of ownership. Now we are selling subway train cars with a conditional lifetime warranty and take care of the major issues experienced by clients. It also offers competitive advantages and helps to acquire experience applicable to other projects. For Transmashholding, this provides valuable practical experience, enabling it to build expertise for future contracts. Meanwhile, the client is able to focus on using the rolling stock while specifying the desired level of service and reducing its cost of ownership.

the carrier and the service company to increase revenue and achieve better performance through higher reliability of rolling stock. This alignment of interests of both parties helps to reduce the incidence of subway train car failures.

CHALLENGE ACCEPTED!Metrowagonmash faces some ambitious tasks under this contract.

A number of large-scale activities need to be implemented in the next year or two in order to turn a profit, which will go toward expanding the service center, among other things.

A team of expertsin collaboration of former Moscow

Metro employees who joined the service center have prepared and approved an action plan. The primary means and tools of improving the effectiveness of serving and the operational reliability of rolling stock include:

Customer interactions

Manufacture, maintenance and repairs of rail cars under life cycle contracts

Organization and system of managing life cycle contracts

Changes to the th ree p r ima r y a spec t s o f t he bus iness mode l w i l l be made to ensu re an e f f e c t i v e t r ans i t i on to l i f e c y c l e con t r a c t s

• Using rolling stock with care

• Condition of the infrastructure

• Passenger satisfaction

• Optimization of rail car design to reduce the overall cost of ownership under life cycle contracts

• Changing the approach to supplier relations

• Optimizing maintenance and repairs and ensuring the desired level of rail car availability

• Implementation of a system for managing performance of life cycle contracts

• Establishing an organizational framework for rail car repair and maintenance at Metrowagonmash

DIRECTION OF CHANGES

METROWAGONMASH

TRANSMASHHOLDING

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10

ManagementManagement

• Implementing a system for online monitoring of the operational state of rolling stock

• Improving the reliability of supplies and servicing

• Implementing the production system of Transmashholding (lean production tools)

• Developing repair strategies for the key components

• Forming and strengthening a team of service professionals

Over the next two years, these activities will make it possible to achieve the objectives set by the client while at the same time improving the bottom line for Metrowagonmash.

WORKING FOR THE FUTUREThere is no doubt that the major Russian rolling stock operators will be using life cycle contracts on a wide scale. In addition to servicing, there will be demand for rolling stock leasing

services, or making rolling stock available for temporary use. For example, the Moscow Metro intends to buy rolling stock on these terms beginning in 2014.

Transmashholding is currently developing service expertise that can be used both on other Moscow Metro lines and with other types of rolling stock.

Life cycle contracts offer growth potential not only in terms of making rolling stock available for temporary use, but also when it comes to designing and building infrastructure facilities. In light of this, demand for DBFOM (Design — Build — Finance — Operate — Maintain) contracts is expected in the near future.

KNOW YOUR ADVANTAGESLife cycle contracts offer a number of advantages for clients. They include clauses that make payments conditional on the level of operational parameters, provide for payment in installments, make expenses over the asset lifetime predictable, and minimize the asset design and construction risks.

Speaking of potential advantages for Transmashholding in particular, they include an increase in revenue and utilization of capacities (since most such contracts are substantial in scope), market protection against competition, a steady revenue stream over the long term, lower cost of borrowings owing to government guarantees, possibility to reduce costs by making decisions based on the cost of ownership, the opportunity to choose design and engineering solutions, and the potential of attracting new partners.

The desire of clients to reduce their own service costs opens up many opportunities for business. Transmashholding also looks to attain leadership in the natural evolution of mechanical engineering: to evolve from a company selling rolling stock to a service and infrastructure company that does not merely sell rolling stock but also makes it available for temporary use along with the full package of services.

ALEXANDER NIKITENKO, MetrowagonmashDeputy General Managerfor Servicing:

— We have expanded into the service segment. Now is the time to show some results. We must improve the operational reliability of subway train cars by several orders of magnitude and ensure effective performance by service center staff.

Scope of Responsibility Contract Type Description Example

• Manufacture of rail cars and warranty

• Traditional contracts

• Revenue entirely depends on the volume of rail car sales

• All contracts with the Moscow Metro until 2012

Life cycle servicing of rail cars

• Life cycle contracts

• Additional fees for operational availability

• Contract between the London Metro and Alstom

• Contract between the Cairo Metro and Hyndai Rotem

Construction and maintenance of the infrastructure (wholly or partly)

• E&M (electrical and mechanical systems)

• Oftentimes, a joint venture (JV) of several participants supplies and services rail cars and also a part of the infrastructure: tracks, signals, communication lines, etc.

• JV of Siemens and AEG — subway in Guangzhou and Shanghai

• Siemens and YTL Construction in Kuala Lumpur

Asset management (including train operation)

• DBOM (Design — Build — Operate — Maintain)

• Ticket revenue for the life cycle is distributed among project participants

• The government finances construction of the infrastructure

• JV for Tren Urbano in Puerto-Rico:

– Siemens suppliesand services rail cars– Redondo Perini builds the infrastructure– Alternate Concepts –infrastructure management and maintenance

• Light rail trains in New Jersey

Financing of construction

• DBFOM (Design — Build — Finance — Operate — Maintain)

• Ticket revenue and government subsidies for the life cycle are distributed among JV partners

• Contract between Bangkok Sky Train and BTSC (a JV of Siemens and Italian Thai Development)

• High-speed trains to Taiwan

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Examp les o f co l l abo ra t i on among the gove rnment , ope ra to r, r o l l i ng s tock manu fac tu re r, and o the r pa r t i c i pan t s

THERE IS NO DOUBT THAT THE MAJOR RUSS IAN ROLL ING STOCK OPERATORS WILL BE US ING L I FE CYCLE CONTRACTS ON A WIDE SCALE

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Introducing TEM19Produc t s

ate last year, the TEM19 locomotive performed its first 13-kilometer trial run on the Golutvin —

Karasevo railway haul of the Ozersk branch of Ryazan railway. An entire team of professionals led by Russian Railways Vice President Valentin Gapanovich was present to evaluate the operation of all systems and the capabilities of the locomotive.

So far the primary and secondary circuits have been checked, locomotive weight has been balanced, and the algorithm of gas feeding to the engine has been adjusted. Rheostat tests began on February 15, and 300-hour operational tests in depots of Russian

One of last year’s highlights at Transmashholding was the unveiling of Russia’s (and the world’s) FIRST INNOVATIVE TEM19 SHUNTING LOCOMOTIVE FIRED BY LIQUEFIED NATURAL GAS.

Acceptance of the TEM19 locomotive main frame by inspectors of the Russian Railways Technical Audit CenterTEM19 has already won acclaim

at the EXPO 1520 Fourth International Show of Railway Equipment and Technologies in Scherbinka – one of the industry’s biggest show-and-tell events for vehicle engineering enterprises. It won first placein the competition of best innovative railway equipment solutions in the «Locomotives and Multiple Unit Rolling Stock« category. It is on the TEM19 gas-piston shunting locomotive that Russian Railways is pinning hopes for continued development of the railway system in the country’s north!

Railways are scheduled to begin in early May.

The plan is to complete the full range of tests by the end of 2014, after which production of the development batch will commence.

What is hiding behind the name, TEM19?

The pilot specimen of this locomotive was developed by experts of the Rolling Stock Research, Design and Technology Institute (VNIKTI) in collaboration with Bryansk Machine Building Plant (BMZ) as part of the Russian Railways energy strategy aimed at replacing diesel fuel with natural gas. The results were not long in

coming: the use of engines fired by natural gas in Russian Railways locomotives has reduced the environmental footprint, the cost of rail transportation, and overall life cycle costs.

It will be recalled that the team of Bryansk Machine Building Plant had been working since 2012 on designing a six-axle TEM19 shunting locomotive with a gas-piston engine.

MODULAR DESIGNThe gas-piston locomotive is based on a modular design of arrangement and assembly. TEM19 consists of the following modules: the driver’s cab,

a cryogenic unit with a system of gas preparation and feeding of liquefied natural gas, a motor-generator set, a cooling system, an equipment chamber, an electrodynamic brake equipment module, and a compressor unit. A separate module contains secondary equipment deployed under the locomotive frame.

MAINTENANCE AND REPAIRSThe modular design has significantly simplified locomotive maintenance and repairs.

The locomotive has a body of the bonnet type mounted on the main bearing frame. The body has an

original design, with the supply of cryogenic fuel stored in a removable cryogenic tank located in the front of the locomotive. The propulsion unit consists of the GDG800T motor-generator fired by liquefied natural gas. The locomotive is equipped with a traction and secondary synchronous generators mounted on the same frame with the gas-fired engine.

The gas-piston engine cooling system uses antifreeze as the coolant.

The cryogenic unit module consists of the following components: a cryogenic tank fitted with gas distribution and refilling systems; a quick-closing Norgren valve with an electric drive;

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15

The pilot specimen of this locomotive was developed by experts of theRolling Stock Research, Design and Technology Institute (VNIKTI)

in collaboration with Bryansk Machine Building Plant (BMZ)Installation of the

high-voltage cabinet unit has been completed

TEM19 DESIGN CONFORMS TO HEALTH REGULATIONS AND STANDARDSGOVERNING SIGNALING AND COMMUNICATION EQUIPMENT, OCCUPATIONAL SAFETY, F IRE PREVENTION, ENVIRONMENTAL FRIENDLINESS

a gas pressure regulatory; a product evaporator; and a gas receiver.

The gas distribution system consists of a pipeline made from a stainless material, shutoff and safety valves.

The cryogenic tank for storing liquefied natural gas has the fittings uses on a standard 20-foot container. This makes it possible to quickly remove a spent tank from the locomotive, install a filled tank, deliver filled tanks on standard platform cars to the home depot, i.e. perform cartridge refilling. AC/DC electric transmission is based on a synchronous traction generator, a traction rectifier, and DC traction motors. The three-axle bogey includes power trucks with motor-axle rolling bearings.

FITTED OUT TO THE MAX!The locomotive is equipped with a multifunctional microprocessor control, monitoring, and diagnostic system. It is responsible for control and monitoring of the propulsion unit, ensuring optimum performance of the engine, generator, and traction electric motors in traction and idle modes. It also provides program-level control of engine startup and shutdown and its rotational frequency. All the relevant information is displayed on the control panel screen. Radial cooling fans of the

The locomotive is ready to be unveiled at the EXPO 1520.Heads of BMZ departments and Russian Railways Technical Audit Center sign the certifi cate of readiness

Brake equipment moduleand rectifi er unit

14

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№ 1 0 3 / 2 0 1 4Produc t s

Pr imary Techn i ca l Specs o f t he TEM19 Locomot i veRated power output of the gas-fi red engine, kW (HP) 880 (1197)

Service weight of the locomotive, tonnes 126

Axle arrangement 30—30

Static load from the wheel set on the rails, kN (tf) Not more than 206 (21)

Tangential traction force in the design mode, kN (tf) 206 (21)

Design mode speed, km/h 12

Breakaway traction force, kN (tf) Not less than 319 (32,5)

Factor of capacity utilization for traction 0,78

Design speed, km/h 100

Locomotive effi ciency at nominal fuel consumption rate Not less than 0,34

Carried supply of liquefi ed gas, kg Not less than 3900

Dimension per GOST 9328 1-Т

Length along axes of auto coupling devices, not more than, mm 20 000

Radius of negotiated curves (at a speed no greater than 10 km/h), m Not more than 80

Type of electric transmission AC/DC transmission

traction motors, traction and secondary rectifiers have asynchronous drives.

The compressor unit comprises a screw-type brake compressor AKRV 3.2/10 1000 with an asynchronous electric motor drive, and also a compressed air drying and cleaning system.

The locomotive has an integrated safety system consisting of th ALSNV-1D cab signal system with the KPD-ZPV onboard device for monitoring trip parameters, and the TSKBM telematic

Electrical installation of high-voltage circuits to traction motorsand brake equipment

Driver’s Desk

Firing of the TEM19 shunting locomotive by liquefied natural gas will reduce energy costs by 24% per year

• It takes less time to warm up the engine in the cold time of year because antifreeze is used as the coolant.

• Fuel costs are reduced thanks to using a cheaper fuel: liquefied natural gas.

• The use of openly installed removable cylinder tanks with fuel reduces the time it takes to fit out the locomotive, lowers infrastructure costs, and increases the safety of locomotive operation and maintenance.

system for monitoring driver vigilance. The driver cab module is based on the cab of the TEM18DM locomotive that has been certified and tested in operation. It meets the requirements of applicable health codes and regulations SP 2.5.1336–2003.

The gas fired locomotive is also equipped with an automatic fire and gas detection system.

In other words, the TEM19 design conforms to health regulations and standards governing signaling and communication equipment, occupational safety, fire prevention, environmental friendliness, and requirements with respect to locomotive operation and repairs.

KEY ADVANTAGES OF THE NEW LOCOMOTIVEThe design features of the TEM19 gas-fired locomotive provide a number of advantages, such as reduced emissions owing to the use of a propulsion unit fired with liquefied natural gas.

As a fuel, natural gas helps to reduce air pollution and the smoke index of exhaust gases.

DES IGN FEATURES OF THE TEM19 LOCOMOT IVE

OFFER A NUMBER OF ADVANTAGES

Techno logy

All the Ins and Outs INTERACTIVE OPERATION MANUALS TAKE PRODUCT COMPETITIVENESS TO A NEW LEVEL.

It goes without saying that the biggest challenge currently faced by rolling stock manufacturers involves increas-

ing the competitiveness of their products. This can be achieved through increasing the level of satisfaction of the needs of the customer (Russian Railways) and reducing expenses for manufacture and operation of prod-ucts. Meanwhile, the main focus in competition is on improving product quality and fine-tuning it to the specific needs of each buyer.

THE CONCEPT OF INFORMAT ION SUPPORT REVOLVES AROUND MAKING THE PRODUCT MORE

COMPET IT IVE THROUGH EFFECT IVE MAN AGEMENT OF INFORMAT ION RESOURCES

Ins and Outs COMPETITIVENESS TO COMPETITIVENESS TO A NEW LEVEL.A NEW LEVEL.

THE CONCEPT OF INFORMAT ION SUPPORT REVOLVES AROUND MAKING THE PRODUCT MORE

COMPET IT IVE THROUGH EFFECT IVE MAN AGEMENT OF

The electronic catalog was developed in record time — in just 4 months. 13,663 drawings of the EP1M (P) electric locomotive were converted into 850 images showing more than 3,000 assemblies with 14,451 parts. All electric locomotive spare parts listed in the specifications come not only with the name and drawing, but also with a RRNCI code (Russian Railways Network Classification of Inventories).

13 663DRAWINGS OF THE EP1M (P) ELECTRIC

LOCOMOTIVE WERE PROCESSED IN

4 months 850IMAGES

14 451PARTS

3000ASSEMBLIES

OVER

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№ 1 0 3 / 2 0 1 4

A. V. Omelchenko, Director of Marketing,

NEVZ PC LLC

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№ 1 0 3 / 2 0 1 4Techno logy

To succeed in contemporary condi-tions, a company has to automate the entire life cycle of a product. This very purpose is served by technologies of information support for all stages of the product life cycle.

AVAILABLE TO EVERYBODY The concept of information support revolves around making the product more competitive through effective management of information resources. This is achieved by transforming the product life cycle into a highly-auto-mated process that is integrated through information interaction among all process participants.

The effectiveness of data manage-ment using this approach is achieved mainly by providing information in a form that makes it easily perceptible by all participants of the product life cycle, including Russian Railways. This required applies to any and all docu-ments used in various processes of life cycle stages.

OUR PROJECTAt the initiative of the Transmashhold-ing Technical Front Office, in 2013 NEVZ launched a pilot project to

operation guides and an interactive electronic catalog of parts and assembly units.

Let’s discuss this in more detail.IOMs are electronic publications

providing reference information about the design and operating principles of an electric locomotive and to teach personnel the rules of operation, maintenance, and repairs. They also provide the essential information about electric locomotive design, operation, and maintenance.

HOW THIS WORKSIn addition to basic textual information and better-quality illustrations, an electronic operation manual contains interactive circuit diagrams and video tutorials.

All illustrations are based on a 3D model of the electric locomotive and portray locomotive equipment in the fullest and most informative way. 3D models can be rotated on the screen. Even the type of lighting and rendering can be selected.

The electronic operation manual of the electric locomotive includes, among other things, electronic opera-tion guides for third-party equipment

An interactive operation manual is a term introduced by GOST 2.611–2011. This GOST standard became effective on January 1, 2012, establishing the general rules for preparing the electronic illustrated catalog of a product, which is part of the set of operation manuals of mechanical engineering products.

All illustrations are based on a 3D

model of the electric locomotive

purchased by NEVZ (MPCS, traction transformer, fire alarm, etc.). The electronic manual is the only thing that combines all other manuals.

As a result, interactive links, tables of contents, and the search system turn the operation manual into a full-fledged tool for studying the locomotive.

RIGHT FORMATIt stands to mention that the electronic catalog and operation manual for the EP1M electric locomotive are also unique in that they come in PDF format. This makes them suitable for any Windows computer with Adobe Reader that is available free of charge on the Internet.

Adobe PDF is the most popular international format for distributing

electronic documents. It is also a cross-platform file format that can be opened on computers running on all operating systems. Any multimedia content can be embedded in this format.

To use the electronic operation manual, one does not need any special-purpose software shells that become obsolete after 3–4 years with the release of new operating system versions. The electronic catalog and operation manual open on any comput-er with Windows operating systems of version XP or later. This is a big advantage considering the long service life of the electric locomotive. It also helps to achieve independence of the company that compiles the electronic interactive document.

Only PDF and HTML electronic formats make it possible to freely use electronic documents on various digital devices with different operating systems. However, only the PDF format makes it possible to view electronic documents without the loss of format-ting or appearance of the original document irrespective of the operating system used even on mobile devices (Windows Mobile, Symbian)

THE ELECTRONIC MANUAL IS THE ONLY THING THAT COMBINES ALL OTHER MANUALS

Conc lus ions1. For the first time in the history of Russian locomotive engineering, a package of electronic operation manuals has been created for a passenger electric locomotive in a format best suited for quick reference and ease of use.

2. Russian Railways received interactive operation manuals that provide the fullest possible information on the operation, repair, and maintenance of EP1M and EP1P electric locomotives in next to no time.

IOMs are electronic publications providing reference information about the design and operating principles of an electric locomotive and to teach personnel the rules of operation, maintenance, and repairs. They also provide the essential information about electric locomotive design, operation, and maintenance.

develop interactive operation manuals (IOMs) for the EP1 series passenger electric locomotive. More than 850 locomotives of this series (EP1, EP1M, and EP1P) have been released. They are operated by seven railways of Russia.

The overriding goal of this project is to achieve better quality and timeli-ness of information support for products released by NEVZ. Interac-tive operation manuals include

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The Red Arrow is rightfully consid-ered an iconic train that connects two Russian capitals. For decades,

its cars have borne witness to ro-mance, creation of literary masterpiec-es, discussions of the nation’s future, and even planning of military offen-sives. This train does not merely connect Moscow and St. Petersburg, but also travels through time, leaving its wonderful imprint on each epoch.

The train was launched to meet the demand of the growing passenger traffic between Moscow and Leningrad and the rising expectations for comfort from the emerging Soviet political elite. The new leaders needed to shuttle

between the two capitals at a faster rate of speed.

The launch of the Red Arrow was a notable event for the Russian nation that was left with a country in ruins in the wake of World War II. The Arrow became the first named train that fundamentally changed the railway standards and revived the pre-revolu-tionary tradition of first-class trains.

FIRST TRAINThe Red Arrow made its first trip on the night of June 9 to 10, 1931. On June 6, the Gudok newspaper carried an announcement: «The Red Arrow will make its first trip from Leningrad to

Moscow on June 9 at 1:30 a.m. The new high-speed train will cover the distance between Leningrad and Moscow in just 9 hours and 45 min-utes, traveling at an average speed of 70 km per hour. The speed will increase to 100 km/h in individual railway hauls».

Few know, however, that the first train consisting of 12 cars (seven compart-ment cars with hard seats, three compartment cars with soft seats, one sleeping car with two-berth compart-ments, and one luggage car) was colored blue, not red! The train was originally named the Red Arrow for its beauty: at the time it was very different

THE RED ARROWIS ONE OF THE OLDEST NAMED TRAINS IN RUSSIA. IT CONNECTS ST. PETERSBURG AND MOSCOW and is traditionally taken for maintenance to Oktyabrsky Electric Railway Car Repair Plant. Few know the colorful history of this train.

ARROW, flying through time

The Red Arrowleft its wonderful

imprinton every epoch

Red Arrowrestaurant menu from the 1930s

from other trains, while the blue color revived the pre-revolutionary tradition of painting improved comfort cars blue.

A sleeping car was included in the Red Arrow for the first time in the history of Soviet railways. The equip-ment and interior furnishings of these cars were as good as, or even better than, those of their foreign equivalents.

The level of service on that train was unheard of by the standards of the time. The train had refreshment stands where passengers could order a dinner to be delivered straight to their com-partment. For the comfort of passen-gers, one of the cars had a call office from which passengers could reach not only the Kremlin, but also London and Paris, during stops at Bologoye, Okulovka, and Malaya Vishera stations.

NOT A MINUTE LATERIn addition to being the fastest and most luxurious train, the Red Arrow was the most punctual train. It covered the distance between Leningrad and Moscow in less then 10 hours, while it took ordinary passenger trains 12 hours to do the same. What’s more, passenger trains of the time were not known for their punctuality.

From day one, the Red Arrow was forced to complete with airplanes:

… The history of the Red Arrowis not merely a history of a train.It is the history of our nation, its defeats and victories, disappointments and hopes. The history of the Arrow is a history of a great many people, both famous and unknown, with their intricate fates. The legendary train does not merely run between Moscow and St. Petersburg. As a symbol of the epoch and great changes, it carries us through time with its troubles, concerns, and moments of happiness.

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regular air service between Moscow and Leningrad started almost simulta-neously with the launch of the train. The years-long history of the Red Arrow proves that the railway has been very successful in meeting this chal-lenge.

In the 1930s-40s, the Red Arrow was mostly used by ranking Soviet and foreign officials. Pre-war newspapers often carried articles likes this one: «Last night, Czechoslovakian Foreign Minister Edvard Benes and spouse left for Leningrad on the Red Arrow train».

Incidentally, the train departure time (11:55 p.m.) was established on personal orders from Lazar Kagano-vich. This was his favor to traveling

Since 1952, the Red Arrow consisted of full-metal rail cars instead of the old wooden cars.

The condition of rail tracks after the war prevented trains from accelerating to high speeds. The Red Arrow was hauled by S (Sormovskiy) and SU (Sormoviskiy Heavy-Duty) series locomotives.

TOGETHER WITH THE OLYMPIC FIRE!The Red Arrow gave rise to many traditions in St. Petersburg and Moscow. For example, a tradition of playing the Great City Hymn by R. Glier on arrival and departure of the train started in 1967.

Since 1976, the train consisted of rail cars built in Germany up to the high

standards of the Soviet elite. They would not have it any other way, of course! The Red Arrow served the most high-profile events of the time: congresses of the party and trade unions, festivals, and the 1980 Olym-pics.

Incidentally, the Olympic torch was delivered from Moscow to Leningrad in 1980 in a rail car of the Red Arrow.

WHAT’S INSIDE?The rail cars currently in operation were maid by Tver Railcar Plant. The train currently in use includes a dining car; compartment cars (32 seats per car); sleeping cars (16 seats per car); and two VIP cars (four two-seat compart-ments per car. Travelers buy tickets for all seats in these compartments irrespective of the actual number of passengers).

The compartment interiors meet the modern standards of design and ergonomics. Interior furnishings of compartments use only environmental-ly friendly materials, including precious wood species. The VIP car has im-proved noise insulation. The ventilation system supplies fresh air that passes through a cleaning system and is additionally heated in the cold time of year.

The car has a comfortable bar where friends and traveling companions can

THE RED ARROW GAVE R ISE TO MANY TRADIT IONS IN ST. PETERSBURG AND MOSCOW.

ONE OF THEM WAS TOPLAY THE GREAT C I TY HYMN ON ARRIVAL AND DEPARTURE

OF THE TRA IN

officials who received their per diem allowance for one extra day as a result of this.

State-of-the-art equipment of the time was tested on the Red Arrow. For instance, the first model of electro-pneumatic brakes designed by F. P. Kazantsev was tested on the train in 1933. Special high-speed steam locomotive models were event devel-oped for the Red Arrow. A short time before World War II, Kolomna Locomo-tive Plant manufactured two experi-mental 2–3-2 steam locomotives that hauled all Red Arrow service trains since 1938. The steam locomotive could achieve a speed of 150 to 160 km/h.

WAR TIMEAs World War II broke out, regular service of the Red Arrow was discon-tinued.

The last Red Arrow arrived at the Moscow Terminal on June 22, 1941. One of the Red Arrow trains was evacu-ated to Tsirulsk, and the other one was sheltered in the former «Czar Pavilion» near Obvodnyi Canal [Bypass Water Canal].

Nazi air raids targeting the Bolo-goye — Chudovo area intensified beginning on August 15, interrupting train service between Leningrad and Moscow. A few days later, the bridge

across the Volkhov was damaged, severing the line that connected Leningrad and Moscow.

In late 1943, the rail cars of the Red Arrow were returned from evacuation. They were in an extremely neglected condition. Specialists of Kaganovich Oktyabrsky Rail Car Repair Plant (at the time called OEVRZ) managed to revive them after performing the necessary maintenance operations.

The first Red Arrow after the block-ade departed from the Moscow Terminal on March 20, 1944. En route,

pass the time, listen to music, watch videos, and order alcoholic and refreshing beverages, coffee, tea, and snacks.

Since 1996, the train has had a dining car that meets European standards. The dining car offers the chef’s specials: Vagres cocktail salad, Gloria chicken breasts baked with oranges, Fantasy dessert with fresh exotic fruits and wine. Passengers can order the dinner to be delivered to their compartment...

Nikita Denisov

the train could still be attacked by Nazi aircraft, which is why it was trailed by an armored platform car with antiair-craft machine guns. The train departed from Leningrad at 5:00 p.m. and arrived in Moscow 16 hours later.

It was more than 1,000 days since the Arrow’s last trip.

Active rebuilding efforts were underway on the Oktyabrskaya Railway in the 1940s, which was when the railway staff approached the National Commissariat of Railways with a re-quest for permission to paint the Red Arrow red. The Commissariat approved the proposal, and the Red Arrow became the nation’s first train with red rail cars.

3000

• mainline and electric industrial locomotives;

• mainline and shunting locomotives;• freight and passenger cars; • electric train and subway cars;• rail buses and diesel trains;• car casting;

• diesel locomotive engines and marine diesels;

• diesel generators and turbochargers;

• transport components;• spare parts;• repair and service maintenance.

PRODUCTS AND SERVICES OF THE HOLDING:

OVER THE PAST FIVE YEARS, THE COMPANY HAS PRODUCED:

locomotives

over

4000passenger cars

over

3000electric train cars

over

230rail bus cars

over

1500subway cars

over

2700diesels

over

• Transmashholding is NO. 1 IN CIS COUNTRIES in terms of the volume of rolling stock production and sales

• Transmashholding is among WORLD’S TOP TEN LEADING MANUFACTURERS of railway equipment

• Transmashholding is THE ONLY RUSSIAN COMPANY to have experience in creation and manufacture of the machinery for the arctic service

• Transmashholding machinery is operated IN ALL CLIMATIC REGIONS OF THE EARTHREGIONS OF THE EARTH

DPM Diesel Multiple Unit

POSTAL ADDRESS: Russia, 127055, Moscow, Butyrsky Val Str., 26, bld. 1 TELEPHONE: +7 (495) 744-70-93; FAX: +7 (495) 744-70-94; E-MAIL: info@tmholding.ru

www.tmholding.ru