Rail Technology Enterprises in India

1

I Foro Internacional Ferroviario BCNRail

Rail Technology Enterprises in India:

Creating a 100x Return on Investment

Presentation by Vishal Dixit

Vice President – Zephyr Peacock India


ZEPHYR GLOBAL OFFICES**

Portland

New York

MiamiMexico CityAccra

Johannesburg

Bangalore

London

Zephyr Management, L.P. (“Zephyr”), an emerging-markets focused asset management firm, was founded in 1994 by Thomas C. Barry, former CEO of Rockefeller & Co., with over 60

professionals globally and approximately US$1.7 Bn in committed capital.*

Zephyr Management, L.P. – global investment opportunities

* As of September 30, 2009. AUM calculation includes assets attributable to Zephyr’s joint venture funds.

** Offices include affiliate locations.

Since its inception, Zephyr has identified specialized market niches around the globe which have the potential to generate attractive returns over a five to ten year investment horizon.

2


$ 1 trillion of assets at replacement value

Route length of 64,000 km

9,000 locomotives; 57,000 coaches; 220,000 wagons

7.2 billion of passengers originating per year

903 billion passenger kms per year

1 billion tonnes originating per year

600 billion tonne kms per year

1.4 million employees

16 Zones, 68 divisions, 7500 stations, 20 subsidiaries and factories

About Indian Railways


Indian Railways – US $280 Billion opportunity

Major opportunity for global funds and companies to invest in assets planned for High Speed Rail, Passenger facilities and rolling stock

Major opportunity for suppliers of technology systems, equipment and technical services

Innovative solutions that address Indian Railways’ unique requirements in a cost effective manner will get best returns

IR Capex Plan upto 2020 in US$ billions

Infrastructure Capacity , 93.2

Other, 21.8

R olling Stock, 78.2Passenger Facilties,

19.12

Infrastructure Upgrade, 25.2

High Speed, 40

3


Low Network Productivity

Line capacity is key constraint on major freight routes

Sub optimal Signaling leading to larger blocks and lower traffic density

Reduced speeds due to risk of track damage and derailments caused by defective rolling stock

Inadequate remote asset monitoring and dynamic line optimization

24

13

37

9

-

5

10

15

20

25

30

35

40

Russia USA China India

Network Productivity (TKM millions per Route km)


Low Wagon Productivity

Wagon availability is key constraint to freight throughput

High wagon turnaround times due to procedures requiring physical examination and maintenance

Lower speeds and lower loads due to lack of failure prediction systems such as wheel impact load detectors, hot box detectors and bearing failure detectors

9.5

5.9

4.23.1

-

1

2

3

4

5

6

7

8

9

10


Wagon Productivity (TKM millions per wagon)

4


Low Employee Productivity

Large staff of maintenance personnel for manual examination and maintenance in workshops

Large staff of field personnel to detect and predict track or rolling stock failure

Redundant capacity essential due to lack of predictive systems for traffic and maintenance

2,099

16,256

1,193 431

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000


Employee Productivity (TKM millions per Employee)


Safety vs. Capacity?

In 2011 alone, Indian Railways has been over 10 derailments and close to 100 deaths

Due to the lack of technology systems, the railways has to respond by slowing down speeds and increasing examination and maintenance frequency

Such practices lead to further decline in productivity and do not really address the safety issues

India has dire need for capacity – any decline in capacity causes immediate overloading and overcrowding

Use of technology can kill two birds with one stone – achieve both safety and productivity

5


$ 1 Billion of Technology = $ 100 Billion Plus of Value

$ 500 million investment in wayside systems such as Wheel Impact Load Detectors (WILD), Acoustic Bearing Detectors (ABD), hot box-hot wheel detectors can leading to a minimum productivity increase of 5% across the network

$ 500 million investment in signaling works can lead to doubling of line capacity on 1250 km of the most dense routes

Given past record, more than 1000 lives can be saved over the life of these investments

A 10% productivity improvement on a $ 1 trillion asset base translates into $ 100 billion of value!

Political leadership is under huge pressure to improve productivity and avoid accidents –therefore they are now focusing in time and capital efficient investments

Which are the Companies that can address this market?

10


Integrated technology systems for the safety and efficiency of transportation, energy, defence and aerospace assets

6


Vision: To emerge as the world’s leading provider of integrated technology

systems for the safety and efficiency of transportation and energy assets

globally.

Designs, manufactures and deploys systems that integrate control systems, signal processing, electrical and electronics with specialized algorithms for data acquisition, analysis and monitoring, using expertise in acoustics, vibration, fluid mechanics and thermodynamics

Founded and managed by an entrepreneurial team with more than 100 years of collective R&D and commercialization experience with leading multinationals across US, Europe and India.

Offices in Bangalore, Chennai, Delhi and Lucknow and 15 project offices across India, including 12,000 sq ft Office Space & 40,000 sq ft industrial space

Company Vision & Overview


APNA Wayside Detectors

Defective rail wheels and roller bearings have damaged billions of dollars of track infrastructure, caused derailments and hundreds of passenger fatalities; and constrained speed, load and efficiency of the railwaysWILDs sit under tracks and monitor the impact of each passing train wheel, transmit the information to a centralized control room and web server, and use a proprietary algorithm system to analyze and report data as well as raise action alerts and emergency alarms to detain the train if required.APNA has jointly developed the WILD with IIT-Kanpur and Indian Railways’ R&D unit, and successfully deployed 15 systems since 2008; APNA has full ownership of the product’s IP.ABDs similarly consist of a series of trackside microphones thatcapture, transmit and analyze acoustic data to identify defective bearings.APNA has an exclusive collaboration with TTCI USA, a world leader in rail technology for a transfer of technology to design, manufacture and deploy ABDs for the Indian market.

Wheel Impact Load Detector (WILD) & Acoustic Bearing Detectors (ABD)

Market PotentialMarket Potential – US$ 500 million in India; $ 2 billion abroadWILD tender in advanced stage, likely to be followed by another

soon. Tenders for ABDs already at bid stage100+ deaths due to wheel defect caused derailments in the last

six months have created extreme urgency.Dedicated Freight Corridor (DFC), private railways by

Adani, GVK, ports and massive rail spend in Africa, Middle East and South East Asia.

Competitive PositioningLikely Market Share – 75%Only Indian company with WILDs – international

competitors are 3x cost and not emerging markets focusedCompetitors would need technical certification from Indian

Railways – a 12 to 24 month process. TTCI – APNA’s partner for ABDs - has 90%+ global

market share for the product.Clients and Technology Partners

7


APNA Remote Asset Management

Web based platform for remote management of railways assets to monitor safety and manage preventive maintenanceRailman already under operation by Indian Railways and fully integrated with 15 WILD systems US$ 1 billion + market potential in Indian Railways, including potential from metro systems, DFC, private railways and emerging market rail systemsAlready in discussions with DeltaRail (UK), Ansaldo STS & Alstom for management of their Railway assets

Railman


Comprehensive Product Portfolio

8


E to E Rail Group

www.etoerail .com


e2E Rail Group – Services Expertise

Relay Interlocking

Automatic Signalling

Computer Based Interlocking

Level Crossing Protection

Train Detection & LV Detection

ETCS / ERTMS

OLE & Third Rail Traction

Sub-Station

Switching Station

Embankment & Cutting

Bridges & Tunnels

Points and Crossings

Level Crossings

Station, Office buildings

ROB & RUB

Signalling & Telecom Electrification Track & Structures

9


e2E’s Roles and valuesTOTAL SOLUTION

Cost Effectiveness

Lower, predictable Design costsImproved technical resourcesExperienced, knowledgeable staffIntegrated systems

Improved Business Performance

Increased revenue, cash flow Higher quality operationsConcentrate on Core businessIntegrated processes

www.etoerail .com


Key Clients

www.etoerail .com

Saudi Arabia

MalaysiaIndia

10


Presence – International

Malaysia

Saudi Arabia

Confirmed Projects

Nigeria

Pipeline Projects

Sierra Leone

Indonesia

UK

www.etoerail .com

Australia


Double line between IPOH – Padang BesarProject

Provision of train control system in connection with the conversion of Single line to Double line between IPOH of Malaysia and Padang Besar of Thailand

ClientKTMB

Main ContractorMMC – Gamuda Hikamat Asia.

Sub ContractorE to E Transportation Infrastructure Pvt. Ltd.

Scope

Design, Supply, Installation support, testing & commissioning of temporary signalling SSB package for Kedah line, in connection with the conversion of single line into double line between IPOH and PADANG BESAR

www.etoegroup.com 20

11


Platform Screen Doors – Delhi MetroProject

Installation, Testing and commissioning of Platform Screen Doors in Delhi Metro Airport Express Link stations

ClientDelhi Metro Airport Express Link

Main ContractorFaiveley Transport India Pvt. Ltd.

Sub ContractorE to E Transportation Infrastructure Pvt. Ltd.

Scope

Installation, Testing and commissioning of Platform Screen Doors in Delhi Metro Airport Express Link stations.

www.etoerail .com


Makkah Metro Phase‐1Project

Installation & Testing of Signalling & Telecom Systems at Makkah Metro Phase-1

ClientThales, Saudi Arabia

Main ContractorMohawarean Railway Services, Saudi Arabia.

Sub ContractorE to E Transportation Infrastructure Pvt. Ltd., India

Scope

Installation & Testing of Signalling & Telecom Systems at Makkah Metro Phase-1

www.etoerail .com

12


Why Partner with Indian Companies?

Indian Railways is a 150 year old organization with indigenouslydeveloped standards and specifications – successful selling requires local innovation, cultural adaptation and strong relationships

High cost sensitivity requires local development, manufacturing and deployment

India’s technology talent pool offers low cost development for global markets

Indian technologies are highly relevant to other emerging markets – a tremendous opportunity for global partnership

India has a strong track record of IP protection as seen in the IT and pharmaceutical sectors

Financial capital and global experience of international players, combined with human capital and local expertise of Indian companies can create a win-win opportunity for all emerging markets


For further information, please contact:

Vishal Dixit

[email protected]

+919980132730

Muchas Gracias!

Rail Technology Enterprises in India

Documents

Transcript of Rail Technology Enterprises in India