Using benchmarking for cost-efficient rail projects Inara Trabo Industrial PhD student
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1 Using benchmarking for cost-efficient rail projects Inara Trabo Industrial PhD student The Danish Rail Conference 9 May
2 The New Line Copenhagen-Ringsted Disciplines M EUR 1 Ril Railway track construction ti 86 2 Earth works and road construction Bridges and constructions Propulsion Power 35 5 High Voltage 2 6 Signaling 41 7 Telecommunication 9 8 Stations 35 9 Acquisitions of land Environment Preparatory work Project Management & Administration 116 TOTAL 1108 We want to construct The New Line Copenhagen-Ringsted European best-in-class by purchasing in competing markets, economy-of-scale and using state-of-the art technology
3 The focus of research Benefits from railway benchmarking Investigations of construction costs of new HSL Lower costs for relevant units through construction/rail contracts Avoidance of cost overruns Investigations of industry and suppliers at European HSL construction market Purchaising qualitative railway materials for lower prices Economy-of-scale effect
4 Previous studies UIC report The Cost of Railway Infrastructure (2000) Steer Davies Gleave e High speed rail: international national comparison (2004) Trafikstyrelsen Udenlanske baner Sammenligning af anægspriser (2009) DBRI The repetition effect in building and construction works (2010) Bent Flyvbjerg reports related to cost overruns in Megaprojects
5 Methods Theoretical part Top-down benchmarking 1. Investigation of HSL in Europe similar to The New Line Copenhagen-Ringsted 2. Comparison of total costs 3. Distribution by cost disciplines 4. Comparison of unit costs per relevant disciplines Practical part Contact establishment with Infrastructures Managers and Responsible Agencies 1. Official meetings Information sharing 2. Site visits Experience sharing 3. Questionnaire
6 Benchmarking of HSL projects Number of projects Observed projects 22 projects in 9 countries HSL and conventional railways Length km Traffic, # tracks Mixed and passenger, single and double Designed speed Physical requirements Overall budget km/h Flat terrain, allocation along the motorways, small amount of complex structures (tunnels) ,200 M EUR Value per km M EUR/km Construction period
7 57,56 58,32 61,19 61,64 70,00 60,00 Cost per km of HSL, M EUR 50,00 33,90 34,42 38,00 40, ,000 15, ,14 16,43 16,44 18,,05 18,89 18,96 19,79 21,05 21,14 22,56 23,10 28,15 30,00 Average value 27 M EUR 10,86 M 13,33 15,6 illion EUR 20,00 10,00 0,00 HSL 2-3 LGV Est BanaVäg i Väst LGV Mediterranee Gardermoen Line HSL 1 LGV Rhine-Rhone Madrid-French HSL 4 LGV Bretagne LGV Est 2 Cph-Rg Nuremberg- Erfurt- Hanzelijn LGV SEA Rome-Naples Cologne-Frankfurt Stockholm- Milan-Bologna HSL Zuid Malarbanan HS 1 UK Turin-Milan *Price Year
8 Comparison by cost disciplines Country "A", % Project cost distribution, Copenhagen-Ringsted, % Railway track construction Earth works and road construction Bridges and constructions Propulsion Power High Voltage Signaling Telecommunication Stations Acquisitions of land Environment Preparatory work 11 4 Country B, % Project Management & Administration
9 Contractors National contractors are preferable Language Local legislations World known companies in Railway Technology Balfour Beatty (UK) Alstom (France) Ansaldo STS S.p.A. (Italy) We are looking for new international companies to come to the national market International market survey competent companies Contact establishment and incentives Competition between companies lower prices
10 Comparable projects Nr. Country Project name Owner Responsible agency 1 France LGV Rhine-Rhone (Dijon-Mulhouse) RFF Inexia Belgium HSL 1 (Brussels-French border) Infrabel TUC Rail Belgium HSL 4 (Antwerp-Dutch border) Infabel TUC Rail The Netherlands Hanzelijn (Zwolle-Lelystad) ProRail ProRail Sweden BanaVag i Vast(Göteborg-Trolhätten) Trafikverket Trafikverket Nr. Length, km Traffic Design speed, km/h passenger passenger 300 Structures 160 bridges, 13 viaducts, 1 tunnel, 2 stations, close to motorway 5 viaducts (Arbe Viaduct largest in Europe), 1 station Budget, B EUR Construction period Price, M EUR/km 2, ,43 1, , passenger 300 close to motorway, 1,2 km tunnel under Antwerp 1, , mixed bridges, 2 stations, tunnel under river, close to motorway 1, ,32 20,00 50 bridges, 5 tunnels, 5 75 mixed 250 1, (14,9 excl. 7 stations, motorway expansion motorway)
11 Unit costs Some disciplines are not comparable (e.g. Acquisition of Land) Relevant unit costs were compared (e.g. bridges, earth movement, administration) Unit costs per track km, M EUR Unit cost civil works/km, M EUR 6,00 5,00 4,00 3,00 2,00 1,00 0,00 4,79 3,99 1,53 1,49 A B C D 14,00 12,00 10,00 8,00 6, ,00 2,00 0,00 12,12 7,95 6,45 5,87 1,88 A B C D J
12 Preliminary conclusions Current PhD research will bring positive delivery to the New Line Copenhagen-Ringsted project Average costs for construction of new HSL are 27 M EUR Copenhagen- Ringsted is below Differences in cost distribution by main disciplines are dependent on project s complexity Benchmarking results and documentation will be useful for planning and construction of new HSL in the future Further analysis of unit costs and life cycle costs
13 Thank You for Attention!
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