EU railways to fight climate change

The European Union’s target of reducing greenhouse gas emissions by 20% by 2020 is only realistic if the emissions from the transport sector are drastically reduced.  This was the main message of the conference “Fighting climate change - The potential of rail transport”, organised by The Community of European Railway and Infrastructure Companies (CER) with the support of the European Infrastructure Managers (EIM), the International Union of Railways (UIC), the International Association of Public Transport (UITP) and the Association of European Railway Industries (UNIFE).

Contributions from high-level politicians and 150 stakeholders from the transport sector confirmed that any policy to fight global warming without reducing the mobility of people and goods in Europe has to strengthen railways, which have reduced their specific CO2 emissions by 30% since 1990.  The need for sufficient infrastructure investment available for the rail sector, one of the most efficient and cleanest transport modes, was stressed.

(Source: The Community of European Railway and Infrastructure Companies (CER))

West African rail links to get World Bank funds

Cameroon, Chad and the Central African Republic have been granted a US$201 million financing package from the World Bank for a three-country project, which is co-funded by the African Development Fund, the European Union and the Agence Française de Développement (French Development Agency), and by the three governments.

Under this plan, the International Development Association (IDA) will provide Cameroon with a credit of US$147 million credit, Chad with a grant of US$30 million, and the Central African Republic with US$24 million.  The project targets rehabilitation of specific sections of the road corridors, as well as rail improvements for a sustainable institutional framework for the rail sector.  The Transport and Trade Facilitation project, approved by the CEMAC (Central African Economic and Monetary Community) heads of state in 2006, aims for transport and trade improvements.

(Source: The World Bank )

Arriva enters the Polish rail market

The UK-based bus and rail operator Arriva plc entered a joint venture with PCC Rail, one of Poland’s fastest growing cargo operators.  The PCC Arriva Consortium plans to employ around 120 people to provide train services in north-west Poland, serving around 60 stations.  The three-year contract is expected to generate approximately £20 million revenue.

(Source: Arriva plc )

Rail revival in Algeria

The government in Algeria has earmarked 360 billion dinars (about US$5billion) to rebuild and modernise the country’s 4,200-km rail network.  Revenues from oil and gas industry are expected to fund electrification, double-tracking and new lines, according to Railway Gazette International.

Italy’s Gruppo Ferrovie dello Stato (FS) and Anesrif (National Agency for research and management of the realisation of railway investments) from Algeria signed an agreement for the management of a five-year railway development programme.  Under the terms of the €16 million contract, Italferr (a subsidiary of FS) will be in charge of technical supervision of new rail projects, staff training and management consultancy services.  Another Italian company, Astaldi Group, won the €616 million contract to design and build the120-km new railway line between Saida and Moulay Slissen.

(Source: Railway Gazette International )

Cash for Serbian railways

Railways in Serbia could get €140 million for infrastructure investments, along with at least €160 million from road tax revenues, said Serbian minister of infrastructure Velimir Ilic, cited by Railway Market Magazine.  The European Bank for Reconstruction and Development had already lent €80 million for improving service quality on Serbia’s portion of Corridor X, whilst the European Investment Bank provided a €60 million loan for rolling stock acquisitions.

(Source: Railway Market )

SNCF order for Alstom high-speed trains

Alstom won a €2.1 billion order to supply 80 double decker very high-speed trains to SNCF (French National Railways).  The contract has a conditional option for another 40 train sets, after the first deliveries scheduled for 2009.  The new 320 km/h trains will be fitted with signalling and traction equipment, compatible with rail networks in France, Germany, Switzerland, and Luxembourg.

(Source: Alstom )

Takeover and investments in New Zealand

Toll Holdings Ltd, the Australian integrated logistics services provider, made a NZ$3-a-share takeover offer for total ownership of its subsidiary Toll NZ Limited, which runs rail freight operations, ferry service, and Wellington's Tranz Metro commuter rail services in New Zealand.  Toll currently holds 84.2% in the rail network, after selling it to the government in 2004, a year only after the acquisition of Tranz Rail.

Land Transport New Zealand announced NZ$2.4 billion (US$1.9 billion) investments for land transport infrastructure and services.  The 2007/2008 National Land Transportation Programme (NLTP), which includes funding for rail improvement, sets out a programme for the country’s land transport system.  Rail maintenance in Wellington, rolling stock refurbishment, and upgraded real-time passenger information systems in Auckland are part of passenger transport improvement projects.

(Sources: Toll Group ; Land Transport NZ )

Thailand takes steps towards privatisation of railways

The State Railway of Thailand (SRT) announced its plans to outsource its assets, rail-route operations and logistics management, in an effort to control the SRT’s accumulated debt of Bt46.19 billion (US$1.55 billion).  Infrastructure projects account for Bt13.41 billion (US$450 million) of debt, with a further Bt31.67 billion (US$1.06 billion) from pension payments to employees.  SRT's chief financial officer, Mr Arak Ratboriharn, was quoted by The Nation news service as saying the three new subsidiaries would operate in accordance with Thai public-private partnership legislation.

(Source: The Nation )

Railway lines in Saudi Arabia

Mitsui & Co of Japan teamed up with Al Rashid Trading & Contracting Co of Saudi Arabia and Australia's Barclay Mowlem to build an 818-km portion of the North-South Railway, revealed Reuters UK.  The consortium won the US$763 million contract, due for completion in 2010.

Another international consortium including, among others, the Italian companies Ferrovie dello Stato and Finmeccanica, the Russian rail operator (RZD) and leading Saudi construction company Oger, pre-qualified for the international US$6 billion tender for the construction of a high-speed railway between Jeddah, Mecca and Medina.

(Sources: Reuters UK; Finmeccanica )

Latvian Railway (LDz) reorganized

Three new companies LDz Infrastruktūra Ltd (track maintenance and repairs), LDz Cargo Ltd (freight traffic and logistic services) and LDz Ritošā sastāva serviss Ltd (rolling stock maintenance and repairs) started their business on 4 July 2007, the final stage in reorganizing the Latvian Railway (LDz).  Latvijas dzelzceļ is acting as a holding company with seven subsidiaries.  More than 13,000 railway workers employed by LDz kept their collective agreements.  Ernst&Young Baltic Ltd provided consultancy in designing the new structure of the LDz business, following the EU directives on the railway liberalised market.

(Source: Latvijas dzelzceļ/Latvian Railways )

Consortium to operate Øresund services

State-owned Danish State Railways (DSB) and British-based First Group have been awarded the US$1.27 billion contract to operate train services from Copenhagen to southern Sweden via the Øresund bridge, according to International Transport Journal.  Deutsche Bahn, Arriva and Swedish SJ were other competitors for the contract, which runs until 2015. Back in 2001, DSB had lost the west coast line privatisation to Arriva.

(Source: International Transport Journal )

Ecuador to revive railway    

The Ecuadorian government is seeking US$280 million from international organisations to rebuild 80% of Ecuadorian National Railways' (ENFE) 965km network, according to International Railway Journal.  The line linking Quito with Guayaquil, Ecuador's main port, is to reopen next year.

(Source: International Railway Journal )

If you have any feedback, please contact Gabriel Craciun, ITF Senior Researcher (railinfo@itf.org.uk)