Presentazione di PowerPoint

1
Reducing infrastructure costs through long-term
planning and contracts
.
Imrich Korpanec EFRTC Secretary General Brussels,
13.02.2008

2
What is 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 12 EU/EFTA
  members states are EFRTC full members, namely
  Belgium, Bulgaria Estonia, France, Germany,
  Italy, Luxembourg, the Netherlands, Portugal,
  Spain, Switzerland and UK
• negotiation of membership with the contractors
  in the new MS Czech republic, Poland, Romania,
  Slovak republic
• they represent 130 contractor companies with
  total turnover of some billion Euros and
  significant workforce using most advanced
  technology for the construction, track renewal
  and maintenance mainly performed under the
  contracts with all major European infrastructure
  managers

.
.
Brussels, 13.02.2008
3
EFRTC focus on business needs of railways

• 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 18 - 25
  billion for renewal and maintenance per annum's
• 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 would 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 solutions driving cost
  reduction of rail system operation

.
.
Brussels, 13.02.2008
4
EFRTC key issues for the future

Following priority areas have been identified by
contractors where improvements may deliver
significant increase of efficiency




C
A
B
Long-term funding, planning and contracting
Innovations technology logistics
Cross-acceptance of rules and regulations
.
E
D
F
Industrial engineering and process optimisation
Fragmentation of work and interfaces between
parties involved
Cost of plant and heavy machinery
Brussels, 13.02.2008
5
Long term planning, funding and contracting (1)

• EFRTC contractors have vital interest in stable
  and long term funding to railway infrastructure
  which would enable for
• Infrastructure managers
• to develop long term strategy for infrastructure
  funding with business plans meeting the customer
  needs
• to set-up long-term maintenance and renewal
  plans supported by secured funding
• to improve operational planning, contracting and
  procurement and thus optimizing project pipelines
  for the works to be performed by contractors in
  open and competitive market

.
Brussels, 13.02.2008
6
Long term planning, funding and contracting (2)

• Contractors
• to dimension the capacity and resources on the
  basis of long term, output-oriented contracts
  with clearly formulated targets (KPIs),
  definition of responsibilities, identification of
  risks and provision of incentives for
  innovations
• to avoid over-dimensioning of the fleet of heavy
  and costly machinery due to peak demands and
  significant variation in track possessions
• to optimize planning and work processes (track
  possessions, worksite logistics, supply of
  materials, utilisation of machinery and skill
  workforce, etc.) through improvements of
  interfaces with in infrastructure managers in
  long terms

.
Brussels, 13.02.2008
7
Work processes, technology and innovations

• Process quality needs to be improved (planning,
  preparation, work execution, etc.)
• Track possession policy and management of work
  in possession is a critical challenge
• Fostering innovation and new developments have
  potential for further cost reduction of MR
• But an equal treatment of the benefits of
  innovations

.
Brussels, 13.02.2008
8
Fragmentation of work and interfaces

• Maintenance and renewal work is carried by
  various parties (e.g. staff of the infrastructure
  manager for worksite protection, contractor's
  staff for work execution, supply of materials by
  RU, subcontractors, etc.). That increases the
  number of interfaces and the effort required for
  coordinating work
• Due to the fragmentation of work the contractors
  cannot influence the overall efficiency of the
  project
• A transfer of all work necessary for the
  delivery of the project under the single project
  manager would enable the contractor to improve
  overall project efficiency

.
Brussels, 13.02.2008
9
Cost of plant and heavy machinery

• Costs of moving equipment and their operation
  are high for several reasons as e.g. machinery is
  used mainly on national and local market and in
  addition there are often delays in the orders.
  More competition and harmonisation may contribute
  to reducing these costs
• Infrastructure managers must absolutely improve
  works planning to allow contractors to invest in
  the right equipment at the right time in order to
  reduce contractors dependence on equipment
  manufacturers
• The contractors must be involved in drafting
  the specifications for the plant and machinery

.
Brussels, 13.02.2008
10
Cross-acceptance of rules and regulations

• The differing rules and regulations across
  Europe are one of the key entry barriers for
  contractors to market their services across
  Europe
• A cross-acceptance of certifications for
  machinery and processes would increase the
  competition amongst contractors and would ensure
  that efficiency gains made in one country could
  be more easily transferred to others
• The current worksite protection rules and
  worksite logistic regulations can have a negative
  impact on productivity harmonisation of rules
  and standards based on 'good practice' in terms
  of safety records may lead to simplification

.
Brussels, 13.02.2008
11
Some concluding remark (1)

• Some contractors have already experienced the
  positive impact of long term and stable funding
  through multi-annual contracting which is now
  resulting in the increase of efficiency of track
  maintenance and renewal expressed by two digits
  figures
• There is absence of long term contractual
  commitments for contractors with some major
  infrastructure managers accounting for about half
  of the European market.
• Contractors considered that their early
  involvement in the negotiations between IM and
  state on funding and contracting is essential for
  the improvement of planning at all levels
• Competitive tenders along cooperation in
  planning and execution of the work are essential
  for further cost reduction

.
Brussels, 13.02.2008
12
Some concluding remarks (2)

• There is a great variety of contractual and
  regulatory relations between state, regulatory
  bodies and IM which have a direct impact on the
  complex relations between IM and contractors
• There is a great potential for the improvement
  of the interface between contractors and IM which
  may result in significant savings and overall
  increase of efficiency
• There is a potential for further costs reduction
  in track MR by opening the market for
  contractors at European level and fostering fair
  competition

.
Brussels, 13.02.2008
13
Thank you very much for your attention!!!
Questions/Comments For further information,
contact SG-EFRTC_at_fntp.fr
14
.
Brussels, 13.02.2008