Issue 19 - December 2007

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Integrated system for African railways

Rail officials from African countries gathered in South Africa on 20-21 November 2007 to take part in the conference on interconnection, interoperability and complementarity of African railways systems. They examined strategies to inter-connect and standardise the rail systems in order to boost socio-economic development of the African continent.

Meanwhile, the East African Community (EAC) countries, with a population of nearly 120 million and a gross GDP of US$41 billion, will benefit from the EAC railway master plan. Studies are underway of the building of 14 new rail lines, linking Zambia, Burundi, Rwanda, Uganda, the Democratic Republic of Congo, Sudan, Ethiopia, and Kenya.

(Sources: African Union, http://www.africa-union.org/; East African Community, http://www.eac.int/)

RCA/GySEV won the bid for MÁV Cargo

MÁV Cargo, the Hungarian state freight operator, has been sold to the Austro – Hungarian consortium Rail Cargo Austria AG and GySEV Zrt. The contract is expected to be signed by early January 2008. The other two contenders in the final round of the bidding were the Slovakan consortium Spedtrans and Slavia Capital, and the British-American Cargo Central Europe Consortium. MÁV Cargo posted a HF3bn (US$17 million) profit in 2006 on a turnover of HF93bn (US$527 million).

The state-owned MÁV will remain in charge of the rail infrastructure, locomotives and passenger services, whilst the Austro-Hungarian owned GySEV will become the main freight operator in Hungary.

(Source: MÁV Cargo, http://www.mavcargo.hu/)

London & Continental Railways to split

The UK-based London & Continental Railways (LCR) is to be separated into three businesses: the infrastructure (including track and stations), the land interests, and the UK stake in Eurostar, UK Rail Minister Tom Harris announced on 20 November 2007, according to Railway Gazette International. The recently opened 109 km high- speed line between London at the Channel Tunnel is likely to be sold in 2009.

The British government selected LCR in February 1996 to build and operate High Speed 1 (the then called Channel Tunnel Rail Link). Transport operators National Express Group and SNCF, the investment bank UBS are among the shareholders together with Arup, Bechtel, Halcrow, and Systra.

(Source: Railway Gazette International, http://www.railwaygazette.com/)

Rail to connect the two Koreas

On 12 December 2007, the first freight train crossed the border between North and South Korea for the first time in 50 years. Cargo trains will operate the 25 km line that crosses the demilitarised zone along the 38th parallel.

BBC News quoted Mr Lee Chul, president of Korea Railroad, emphasizing the economic benefits of the rail link, which could connect Seoul to Europe through the Trans-Siberian railway. Regular passenger services might be a further option.

(Source: BBC News, http://news.bbc.co.uk/)

Rail investment in Namibia

Namibia plans to build a 700 km rail line from the Namibian city of Grootfontein to the border with Zambia, to boost trade with neighbouring countries, Reuters Africa reported. The news agency quoted the general manager for operations, Lumumba Kathindi, of the Namibian Port Authority (Namport) saying that US$189 million are needed to expand Walvis Bay port.

(Source: Reuters Africa, http://africa.reuters.com/)

BDZ restructured

The Bulgarian State Railways (BDZ) registered three new state-owned subsidiaries to enhance its competitiveness in the transport market. “BDZ – Passenger Services” Ltd provides passenger services and is responsible for maintaining rolling stock. “BDZ – Freight Services” Ltd operates freight services, while “BDZ – Traction Rolling Stock (Locomotives)” Ltd will provide locomotives for both passenger and freight trains.

BDZ is retaining its coordinating role of the groups’ transport activities, and the relationship with the National Railway Infrastructure Company and other railway operators.

(Source: BDZ, http://www.bdz.bg)

Croatia to put money in HZ

In 2008, state-owned Croatian Railways (HZ) will benefit from 2.7 billion kuna (US$540 million) investment in infrastructure and rolling stock, an increase of more than 70 per cent compared to this year. Railway Market reported that HZ was expecting a rise in revenues from passenger and cargo services.

(Source: Railway Market, http://www.railway-market.pl/)

Rail merger in Hong Kong

Hong Kong saw the beginning of operations of a new rail company resulted from the merger of the Mass Transit Railway (MTR) with the Kowloon – Canton Railway (KCR). Government and railway officials took part in the ceremony organised on 2 December 2007 to launch the new route map of the integrated rail network. The merged 211 km rail system comprises nine heavy rail commuter lines with 82 stations serving Hong Kong Island, Kowloon, the New Territories and reaching across the border into the mainland China. The Light Rail network the Airport Express will continue to serve districts in the Northwest New Territories, and Hong Kong International Airport respectively.

“In the long term, the merger will help enhance the operational efficiency of the rail network as a whole, and optimise the planning of new railways, benefiting the traveling public and the community,” said Mr Henry Tang, chief secretary for Administration of the Hong Kong Special Administrative Region.

(Source: MTR Corporation, http://www.mtr.com.hk/)

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

Related documents:
Railway News Issue 19 - December 2007 (31kb PDF)

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