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UIC STRATEGY FOR GMS

Jean-Pierre LOUBINOUX – 14 th Meeting of the Subregional Transport Forum – 3/12/10

UIC: the International Union of Railways

• 200 members on all continents

• Members are:

– Railways
– Rail operators
– Infrastructure managers
– Railway service providers
– Public transport companies

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UIC in 2010: 200 Members on all Continents

• 82 active members: railways, railway infrastructure managers,


railway operators, from Europe, Russia, the Maghreb, the Middle
East, Kazakhstan, India, Pakistan, Japan, China, Korea, South
Africa

• 82 associate members: including railways in Asia, Africa,


America, Australia

• 36 affiliate members:
companies conducting activities
connected with rail transport
public transport, sleeping cars,
caterers, other railway bodies, …

The UIC Expansion: Continuous Expansion

Members Active Associate Affiliate

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UIC Mission

Promoting the development of rail transport


at world level,
in order to meet challenges
of mobility and sustainable development

UIC’s role

. Know How, . Exchange platforms,


. Technical and Operational expertise, . Innovation: new ideas,
. Technical solutions, new concepts,
. Regulations, standards, . Protecting member
railways’ common
Facilitator
. Best practises.
interests,
. Support policies of
Provider development of key
infrastructure projects.

. Specifications, Developer
. Standards, Organiser - Forums,
. Interfaces,
. Studies, - Seminars,
. Interoperability for - Conferences,
international rail . Congresses
corridors. . WCRR 2008
. UIC Highspeed,
. Global Rail Freight
Conference.

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2009 : a new UIC Governance
 31st March 2009 : UIC General Assembly (extraordinary session)

Members unanimously approved:


New UIC Statutes
New governance rules
Appointments:

UIC Chairman: UIC Vice-Chairman: UIC Director General:


Yoshio Ishida (JR East) Mauro Moretti (CEO Jean-Pierre Loubinoux
Italian Raiways Group FS) (SNCF)

 Common values : Unity, Solidarity, Universality


 Regional cooperation

UIC Governance

General Assembly 200 Members


(All members)

UIC Executive Board 21 Members


(Geographical
representation)
REGIONAL ASSEMBLIES

NORTH LATIN MIDDLE


AFRICA ASIA EUROPE
AMERICA AMERICA EAST

UIC HQ

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Synergies between UIC and its partner organisations

Technical cooperation departments –


Passengers
 Promotion of High speed rail
(UIC HIGHSPEED 2010, Beijing)

 Conventional and intercity railway systems

 Stations and intermodal hubs


(SMG, « Next Station » conference)

 Passenger Telematics

 Commercial aspects and Services

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Technical cooperation departments –
Freight

 Single Wagon Load


(Single wagon load product, Freight contracts, Wagon exchange, CGU,
CMU)

 Combined Traffic

 Operations and Quality

 Freight Telematics
TAF TSI, ISR / ORFEUS

 Intercontinental Freight
Corridors

Technical cooperation Departments –


Fundamental Issues / values
 Sustainable Development
Environment,
Economic aspects

 Research
(EU Research programmes, ERRAC, IRRB,
WCRR)
- Noise
- Energy / CO2 reduction
-Worlwide research
-World Conference on Railway Research WCRR,
22-26 May 2011 in Lille

 Railway Safety

 Security

 Expertise Development
International Training & Information Sessions,
e-learning

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UIC « Products »
Some examples …

The UIC Leaflets

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Existing and Potential Corridors

 Develop a few main corridors to capture growing international trade


 Stronger focus on intermodality and cooperation with shipping lines
 Use UIC as a platform for development

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The UIC Reports

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The UIC Railway Statistics

MoU’s and agreements with third parties


Expanding UIC network with other main international institutions through MoU’s, agreements
and partnerships:

> Financial institutions:

> Governmental organisations:

> Professional associations:

=> Exclusive agreements and benefit to all members


Access to their information and databases
UIC positioned as a broad technical platform with well perceived added value
Needs/requests from them, representing possible sources of financing for members.

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MoU’s and agreements with Banks
. Banks are experiencing strong demand from countries on
how to make railway sectors more effective
. UIC missions promote rail transport at world level
. UIC Railways members are increasing interest in exporting
their capabilities
=> Service 1 / fixed price between members-UIC-Bank at cost
=> Service 2 / price between members <-> Bank on a case by
case basis
=> Service 3 / price between members-UIC-Bank on a case
by case basis

Creating a marketplace

World Bank ADB EIB Etc.

UIC market place

Database of tenders Database of experts

Etc.
… … …

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UIC – Banks cooperation
Task Contractual relationship
1
Assist with technical review of Bank procurement documents UIC - Bank

2
Identify railway experts to assist Bank clients on secondment Member - Bank

3
Develop training programs for staff in developing countries UIC - Bank

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Disseminate information to UIC members on Bank tenders Member - Bank

-> As Members should not be compromised in possible conflicts of interests,


complete overview of the Bank projects will be provided, enabling them to
estimate if they want to work for the Bank/UIC or if they want to bid for the tender

-> Establish a UIC database with profiles of staff from UIC members with proper
access rights and content

Just a glance at European history


> 1825: The First Railway in UK

> XIXth century: The Golden Age – Industrial Era + Private companies.

> After WWI: Universal Access to Freight and Passengers leads to Government
ownership

> After WWII and the Marshall Plan: Era of the Road
Rail Freight marketshare down to 15 %
Strong intermodal competition with isolated railways

> End of XXth Century: Profitability issues.

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Obstacles to Interoperability
Technical obstacles
> Overall regional (urban transports) and national (intercities)
concepts which did not take international links into account.
> History of Europe in the 18th and 19th centuries created
different technologies from a country to an other.
> So different and multiple technologies as required or unwanted
« new frontiers »: Rolling stock,
Electric supply,
Signalling systems,
Language issues ....

Obstacles to Interoperability

Legal obstacles
> The existence of monopolies in certain countries prevents from
liberalization
Well-known example of SNCF in railways
operation in France in the past.

> No legal frame in favor of liberalization.

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21st Century: the need for more interoperability

Lack of space, lack of resources: a need for


sustainable development
Boosting exchanges from country to country and
continent to continent: international/optimodal
trade to optimize, faster, easier, economical
Unlocking emerging local economies: employment
issues, trade with neighbouring countries, …
=> Legal, technical, financing, pricing issues
should be harmonized

Growth of GMS countries

GDP Growth GDP Growth


2008 2009

Cambodia 6.7 -2.1

Myanmar 3.6 4.4

Thailand 2.5 -2.3

Vietnam 6.2 5.5

Laos 7.3 6.4

PRC 9.6 9.1

But very different GDP performance and GDP Growth


from a country to another within GMS
Source: World Bank ( Myanmar figures are sourced from  ADB )

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Missing links between GMS countries
Beijing
Myanmar - India
Myanmar - China
Kunming

Lao Cai

Mandalay
Lao PDR – China Hanoi

Vientiane Thailand – Lao PDR


Yangon

Singapore/Malaysia/
Thailand - Myanmar Thailand
Tavoy
Bangkok
Thailand - Cambodia
Phnom Cambodia - Viet Nam
Penh
750 km
Ho Chi Minh City

Hat Yai
Cambodia

Kuala Lumpur Important Rail Projects


Singapore

Status of GMS Railways

Network Passenger Freight Million Locos Coaches Wagons


km Million km km
Cambodia 750 89.62 14.056 12 20 230

Myanmar 5098 5356 912 380 1209 3252

Thailand 4035 8038 3177 491 1247 5943

Vietnam 2632 4138 3807 311 1045 5093

Laos - - - - - -

Over the years very few expansion of network and 
increase in assets except China to become 1st HS network 
in the world

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2632 4138 m 3807 m
km pas.km t.km

5098 5356 m 912 m


km pas.km t.km

750 90 m 14 m
km pas.km t.km

4035 km 8038 m 3177 m


pas.km t.km

Important Projects in GMS


Important Projects Rolling Stock Plan Procurement

Cambodia >Rehabilitation of Phnom Penh and Sihanouk line and 8 locos ,38 passenger coaches and
Phnom Penh- Sisophen line 260 wagons by 2013
>Construction of 48km Sisophon- Poipet missing link

Myanmar >New lines of 1845 km are under construction Between 2004-2009 only 6% increase
>Upgrading of signalling and communication with OFC in passenger coaches and 12 % in
between Mandlay-Yangoon loco fleet but reduction in freight
wagons
Thailand Large scale doubling of lines planned including Plans to procure 20 locos, 308
upgradation container flats,6 passenger sets
and 74 Diesel rail cars
Vietnam Upgradation of Existing lines Between 2004-2009 passenger
High Speed line between North and south coaches increased by 30% and
freight wagons by 12% .
However locomotive fleet got
reduced.

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Containers Projections for ASEAN: 2025

CIS
Europe
300k
3.7 m

2.2 m 60 k
NE Asia
12.5 m

4.5 m

W. Asia 
420 k
S. Asia 
130 k 2.2 m Intra ASEAN 
3.8 m

510 k

1.6 m
2007

2025

Loosing Competitive Edge


> Small networks with practically no inter country linkages ( except Vietnam-
China )
> Railways not positioned for mass transport and bulk movement
Practically no growth in passenger coaches and freight wagon fleet except upper
class
> Lack of inputs over years in:
Network rehabilitation/expansion ( low axle loads, shorter trains )
Rolling stock ( no replacement strategy or expansion of fleet with network expansion)
Technology ( inadequate signalling and maintenance practices )
Development of Inland Container Depots did not facilitate containerisation and trade
> No encouraging policies for PPP which can bring investment in Rail sector
> Lack of Rail Reforms
Restructuring organisation with times
Lack of Employee training for improvement in skills

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Forward Steps

Strengthening Network
> Encourage Interoperability by construction of missing links to have
regional rail network in place
> Harmonise important technical standards like Axle loads which enable free
movement of containers
> Strengthen port to hinterland connectivity first
> Develop Inland Container Depots or Dry Ports for capturing freight traffic

Asset Management
> Have asset replacement strategy in place
> Plan rolling stock procurements with network expansion as part of
integrated planning process

Forward Steps

Enhance efficiency by technological up-gradation


> Old signalling and communication systems needs to be replaced with
efficient and safe systems
> Adopt track structure which suits the requirement for next 50 years
> Consider Life cycle costs while considering technological up-gradation

Restructure Organisation
> Give Railways freedom to plan and execute (Corporatisation ?)
> Focus on business lines rather than functional departments
> Infrastructure and Operation segregation is a difficult exercise , it needs to
be done when institutional mechanisms and access charges regime is in
place

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Forward Steps

Financing
> Encourage PPP for generating finances for rail development
> Involve ports , local industry , shipping lines in developing freight
terminals and freight lines
> Passenger tariff on commercial lines
> Lobby with governments for social service obligations to be paid to the
operator for subsidising transport
> ADB/World Bank should also finance international rail corridor
development and ICD development

Manpower Development
> Set up joint training and research facilities at the regional level

Thanks

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