1 / 16

ERTMS Benchmarking : driving costs and their actual evolution

ERTMS Benchmarking : driving costs and their actual evolution. Istanbul, 01-03 April 2014 Piero Petruccioli – UIC Rail System Department . ERTMS Benchmarking : purpose. Cost evaluation (CAPEX, OPEX) as a function of all relevant factors. The later, the more precise (but less useful…).

gamma
Download Presentation

ERTMS Benchmarking : driving costs and their actual evolution

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. ERTMS Benchmarking: driving costs and their actual evolution Istanbul, 01-03 April 2014 Piero Petruccioli – UIC Rail System Department

  2. ERTMS Benchmarking : purpose Cost evaluation (CAPEX, OPEX) as a function of all relevant factors. The later, the more precise (but less useful…) Early prediction Feasibility studies Regulatory benchmarking Late prediction Ex post analysis Istanbul, 01-03 Apr 2014, ERTMS World Conference, ERTMS Benchmarking – Piero Petruccioli 2

  3. ERTMS Benchmark, UIC • UIC project, 2008-2014 ; “late” or “ex post” flavour • Geographic scope : EU, 19 companies, 32 projects (board, lines) • Technical scope: ETCS + GSM-R extensions for L2 • No comparison with other subsystems • No global signaling system comparison, just Train Control • Project view, not network(s) view • Including share of R&D costs, but… • …not considering migration strategies and their induced financial costs • Costs : LCC (R&D, investment, op. & maintenance, disposal) • 2014 complements • Maintenance strategies and main cost drivers • Putting costs in relation with performance (explanatory factors), in addition to technical complexity and purchasing strategies Istanbul, 01-03 Apr 2014, ERTMS World Conference, ERTMS Benchmarking – Piero Petruccioli 3

  4. Difficulties (1/2): A narrow scope ERTMS in operation today in Europe Source : UIC ERTMS Database (status Oct 2013) Istanbul, 01-03 Apr 2014, ERTMS World Conference, ERTMS Benchmarking – Piero Petruccioli 4

  5. Difficulties (2/2): An evolving market Istanbul, 01-03 Apr 2014, ERTMS World Conference, ERTMS Benchmarking – Piero Petruccioli 5

  6. ERTMS Commercial Operation - 2014 Istanbul, 01-03 Apr 2014, ERTMS World Conference, ERTMS Benchmarking – Piero Petruccioli 6

  7. ERTMS Commercial Operation – plan 2020 Istanbul, 01-03 Apr 2014, ERTMS World Conference, ERTMS Benchmarking – Piero Petruccioli 7

  8. ERTMS Commercial Operation – plan 2025 Istanbul, 01-03 Apr 2014, ERTMS World Conference, ERTMS Benchmarking – Piero Petruccioli 8

  9. ERTMS Commercial Operation – plan 2030 Istanbul, 01-03 Apr 2014, ERTMS World Conference, ERTMS Benchmarking – Piero Petruccioli 9

  10. ERTMS Operation and Maintenance • IM and RU involved in ERTMS are primarily focused on time and costs for implementation and commercial exploitation • O&M aspects tended to be passed over • In many cases only a couple of years of O&M are contracted • O&M phase has strong impact on the total LCC of ERTMS • Railways can get into strong dependency of their industrial suppliers • Highly recommended: manage the long term O&M early in the first / main tender 10 Istanbul, 01-03 Apr 2014, ERTMS World Conference, ERTMS Benchmarking – Piero Petruccioli

  11. ERTMS maintenance - main strategies • OUTSOURCING - Main decision drivers: • Price • Control over maintenance costs • Managing complexity, mostly for IM • Mandated for SW updating/upgrading • Timely with the tendering phase (to limit the vendor lock-in) • IN-HOUSE - Main decision drivers • Cost of the maintenance staff • Technical Maturity of the staff • Small or preventive maintenance of big series • Flexibility to manage the Business Risktransfer, mostly for RU 11 Istanbul, 01-03 Apr 2014, ERTMS World Conference, ERTMS Benchmarking – Piero Petruccioli

  12. ERTMS maintenance - main cost drivers • Personnel costs (for in–house) • Costs of man-hours (for outsource, higherthanstandard) • Safety Software Updating / Upgrading • Specialequipment, • Spare parts • Storage costs for the components • Training documentation 12 Istanbul, 01-03 Apr 2014, ERTMS World Conference, ERTMS Benchmarking – Piero Petruccioli

  13. Result: ETCS Average Life cycle cost Source: UIC Benchmark project 13 Istanbul, 01-03 Apr 2014, ERTMS World Conference, ERTMS Benchmarking – Piero Petruccioli

  14. Conclusions (1/2) • Uncertain Economics due to: • Deep Influence of pre-existing systems; • Wide range of applications and expected performance; • Transition costs; • Comprehensive planning is difficult in a ‘shared’ system • Market expansion and version management still have unfathomed effects • RU- Business case vs. IM- Public Company • Onboard: low flexibility, high costs, low direct benefits put RUs in a difficult situation(direct subsidies are problematic); therefore: • Importance of setting access charges right • Importance of low cost developments, so IMs can pass substantial benefits to RUs. 14 Istanbul, 01-03 Apr 2014, ERTMS World Conference, ERTMS Benchmarking – Piero Petruccioli

  15. Conclusion (2/2) • Remaining works under UIC Benchmarking project: • Integrate maintenance ROI • Attempt to link costs with high level performance criteria 15 Istanbul, 01-03 Apr 2014, ERTMS World Conference, ERTMS Benchmarking – Piero Petruccioli

  16. Thank you for your kind attention Piero Petruccioli, project manager Istanbul, 01-03 Apr 2014, ERTMS World Conference, ERTMS Benchmarking – Piero Petruccioli

More Related