Twinning project, activity 4Maintenance assessment

The development of ProRail

By Jan Swier and Ted Slump, ProRail, The Netherlands

Tel. +31 30 235 5315. e-mail: jan.swier@prorail.nl

© ProRail. All rights reserved File: g:\Js05\0406.Slovenie.organisation Prorail2

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Facts & Figures

Network length 2,800 km Track length 6,500 kmElectrified track 4,700 kmSwitches 8,700 numberBridges and tunnels 4,500 numberLevel crossings 3,000 numberStations 380 numberPassengers 900,000 per dayTrains 6,000 per day

3

Rail Transport in the Netherlands;separation of exploitation and infra

NV Nederlandse Spoorwegen(Netherlands Railways)

NS Group NV

Rail Infra Trust

Corporate staff

Passenger Services

FreightServices

Stations PropertyOperations

NS FacilityMngt

Participations

Business units

Train Operations Rail Infrastructure

Capacity mngt.

Traffic Control mngt.

Infrastructure mngt.

4

100% outsourcing of Engineering

100% outsourcing of Maintenance & Renewal

Development of rail infrastructure management integration, separation and split-off

< 1990 1990 1994 1998

NS

Engineering

1000

NS Infra:Maintenance

4200

EpOd

Is

5200

Discharge600

Execution of maintenance(NS InfraService)

2800

Managementof maintenance(NS RIB) 800

Track Mainte-nance

New Infra and Renewals

1500

3700

27000

NS RIB1000

2003

ProRailProRail

StruktonVolker StevinBAM/NBM

HollandRailconsult

© ProRail. All rights reserved

5

Restructuring of the railway market in 1994-1998“From specialized contractors to all-round partners”

.

Track renewal (Railbouw BV)

Track renewal (v. Welzenes BV)

Track renewal (Strukton BV)

Renewal of signalling, energy supplyand Telecom (NS Electrorail Group)

Maintenance (NS Infra Services)

Integral

50% 30% 20%Strukton

VolkerStevin

BAMNBM

Maintenance

Track Renewal

Renewal of signaling, energy supply, telecom

Sp

ecia

liza

t io

n

6

CentralRegional

1995-1998

TechnicalStaff

Staff

ManagingDirectors

(2)

RegionManager (3)

Technicalspecialists

Regionmanager (7)

Region headTechniques

(35)

1990-1994

StaffTechnicalStaff

ManagingDirector

(1)

RegionManager (5)

Region manager

technique (20)

Section headTechniques

(80)

Technicalspecialists

Outsourcing of maintenance; shift in skills1999-Today

TechnicalStaff

Staff

Team of Directors

RegionManager (4)

Technicalspecialists

Manager Planning

Manager Realization (4)

(4)

Contractmanagers (11+20)

(4)

Up to 1990

StaffHeads of Techniques

Head(2)

District headtechniques

Section head techniques

TechnicalSpecialists

(5)

(10)

© ProRail. All rights reserved

7

Changes in the way of managing

1994 Orientation 2003 Orientation

* Technology * Business performance

* Implicit output * Explicit output

* Tasks * Processes

* Man-hours * Costs

* Annual budget plan * Multi-year production plan

* Budgets * Results: costs and quality

* Rules & Instructions * Contracts (specifications)

© ProRail. All rights reserved

8

Mission, ambition, themes and targets (2002)MissionThe Rail Infra Manager facilitates optimal operation of the value chain by neutrally creating both possible infrastructure capacity with high reliability, at the lowest possible costs.

Ambitions1. improved operational performance 2. steady growth in train routes 3. improved value for money

ThemesAvailability and reliability

Value for moneyBusiness oriented

Simplification of processes and systemsSafety and the environmentStep-by-step constructionTechnological innovation

Marketing rail infrastructure

TargetsThinking, ideas and actions of

ProRail (and hence of the employees) hallmarked by (RAMS):

•reliability•availability •maintainability•safety

9

Roles in the intuitional triangle (2005)

enGovernment

*Legislator, Shareholder, Financier*Supervisor, Concession granter

*Policy targets and Scope*Guarantee Public Interest

Train operators

*Customers*Trains

RIBVLProRail

*Quality*Functionality

*Capacity*Available and safe

train path

10

enGovernments

Train Operators

Transport concession (Passengers only ) Performance contract

ForwarderPassengers

Forwarders

Repaymentscheme

Network statement Access agreement Payment for use (variable costs) Performance regime (RAM)

Contractors EBs

Process contractsProject specifications

RIBVLProRail

Management concession-Budget (fixed costs)-Performance agreements (RAMSHE)

Business relations in the Netherlands (2005)

RAMSHE = Reliability, Availability, Maintainablity, Safety, Health, Environment

EB = Engineering Bureaus

11

ProRail

Government & TOC’s

Contractors & Consultants

Contract

Contracts

Relationship chain: “from contract to contacts”

TOC= Train Operation Companies

12

Rail Transport (= the product)

The Business of Rail Infra Management

Rail Infrastructure (= means of production)

Rail Infrastructure mngt.Build, maintain and renew rail

infrastructure

Quality•Reliability•Availability•Maintainability•Safety•Health•Environment•Comfort

Functionality•Max. train speed•Max. train length•Max. axle load•Max. gauge train•Capacity

© ProRail. All rights reserved

Traffic ControlRail infrastructure is operated by Traffic Control

Capacity mngt.Specify functionality and divide the capacityof the rail infrastructure

13

Main process “Production”

Check

Analyse

Plan

OpdrachtenOpdrachtenOpdrachtenContractsDo(delegate)

Management model ProRail M&R

Government

Contract

Execution

Quality information

Main process “Plan”

Check

Analyse

Plan

Produc-tion plan

Do(delegate)

Main process “Policy”

Check

Analyse

Do(delegate)

Plan

Policy

14

Rail Infrastructure organisation (2002)Board

Personal & Organisation (14)Communication (5)Safety (11)Financial Control Business and ICT (18)

(30) Business Planning (51) Contracting, Cost Mngt. and Purchasing

(61) Land acquisition and Juridical affairs(94) Infradata

Primary processes

Totaal New Infra: 228M&R Central 165M&R Regional 356 +Total 521Total strategy & Innovation 29 Total Staff Board 268 +Totaal RIB 1046

(113) Product management (8) Maintenance management (12) Control Certification & Release (6)

Telematica/Post21 (40)

Regions (6)

Planning (5) Contract Mngt. (55)

Environment and Legal Affairs (12)

Financial Control (11)

Maintenance &

Renewal

New InfraStrategy &innovation

CentralRegional

15

Maintenance & renewal costsTotal yearly costs

168

62

31

34

109

75

114

51

30

0

100

200

300

400

500

600

700

2000

Mio

eur

o

Othere company costsWages & salaries RIBIntrest DepreciationRenewal track & switchesMaintenance stationsSupervisionLarge scale maintenanceSmall scale maintenance

4850 km m

aintra

ck

51

5

9

12

9

3

11

0

10

20

30

40

50

60

70

80

90

100

1

Per

cen

tag

e (%

)

Level Crossings

Telecom

Traffic Control; equipment

Signaling

Energy supply

Bridges & Tunnels

Track

Maintenance costs

16

Separation of train operations and rail infrastructure had an effect on Punctuality

2005 2006 2007

At least 87%

Possible 89%

65

70

75

80

85

90

95

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Year

Per

cen

tag

e

< 3 minutes tr

ain delay

© ProRail. All rights reserved

Seperation Suboptimalisation Train Operator

Coöperation and improved performance management

17

According European benchmarks ProRail performs well but……. it has to improve

Intensive used of infra

benchmark gebruik

0

5000

10000

15000

20000

25000

30000

C D E F G

ProRail

I J K L M N Q U

Avera

ge

Bedrijf

Trei

nkm

/km

hfd

.sp

oo

r

Benchmark Utilisation

Good quality of track

Brenchmark spoorstaaf breuken

0

5

10

15

20

25

30

C D E F G

ProRail I J L N U AA

Avera

ge

Bedrijf

Aa

nta

l/1

00

0 k

m h

fd.s

po

or

Benchmark Rail Breaks

15% more expensive as average

Benchmark kosten (2000)

0

20

40

60

80

100

D I C U E J L F G

ProRai

l M N Q K

Gemid

deld

e

Bedrijf

1000

*Eu

ro/k

m h

fd.s

po

or

Benchmark M&R Costs (2002)

Average amount of failures

Storingen; techniek en proces (2002)

0

100

200

300

400

500

600

700

C G

ProRail J K U

Gem

iddeld

Bedrijf

Aan

tal T

AO

's/1

000

km

hfd

.sp

oo

r

Benchmark Failures (technique+Process)

18

Train effecting rail infrastructure failures

5000

6000

7000

8000

9000

10000

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Am

ou

nt

Outsourcing of maintenance had effect on reliability

Separations and Reorganisations Recovery

2005 2006 2007

Improved Performance management

At least 7250

Possible 6525

© ProRail. All rights reserved

19

Development of small scale maintenance costs

0

50

100

150

200

250

300

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Mio

Eu

ro

Improved performamcemanagement

Outsourcing of maintenance

2005 2006 2007

Cost reduction small scale maintenance

Development of small scale maintenance costs

0

50

100

150

200

250

300

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Mio

Eu

ro

Improved performamcemanagement

Outsourcing of maintenance

2005 2006 2007

Cost reduction small scale maintenance

Price Level +14,7 %Outsourcing: - Profit, Risk, Overhead +15,2 % - Conditions of employment + 8,7 % - Efficiency improvements - 12,5%Size and complexity network + 4,1 %Utilization + 6,6 %Personal Safety + 7,0 % +Cost rise 1994-2000 + 43,8 %

Price Level +14,7 %Outsourcing: - Profit, Risk, Overhead +15,2 % - Conditions of employment + 8,7 % - Efficiency improvements - 12,5%Size and complexity network + 4,1 %Utilization + 6,6 %Personal Safety + 7,0 % +Cost rise 1994-2000 + 43,8 %

Outsourcing of small scale maintenance had an effect on costs

-40 mio Euro

20

Professional Asset Manager

Development path of ProRail Infra Management

Pro

fess

ion

alis

m

Devel

opmen

t pat

h

Calculating and accounting Costs at levelsSpecifying and measuring Performance at levels

(Long term) M&R Planning (& Plans)

Q-Management / Process ControlAccurate Asset register

2001 2002 2003 2004 2005

Asset History

2006 2007

Business Cases

M&R Concepts and Risk Analysis

1999 2000

Oriëntation:TasksTechniqueImplicit OutputBudgetsRules

21

Thank you for your attention

Any questions?