MTR Nordic. Carl Svensson Business Development Manager. May Sid 1

Transcription

1 MTR Nordic Carl Svensson Business Development Manager May Sid 1

2 2 Content 1. Introduction to MTR and our R+P-model 2. Stockholm metro 3. New train operation in Sweden: MTR Express 4. Conditions for commercial and procured traffic

3 MTR s vision: We aim to be a leading multinational company that connects and grows communities with caring services Sid 3 3

4 MTR Corporation short facts One of the worlds largest global railway corporations with ~11 million passengers every working day Founded in Hong Kong 1975 as Mass Transit Railway Corporation to build and operate the metro in Hong Kong Listed on the Hong Kong stock exchange since the year 2000 The Nordic countries are one of the prioritized growth regions for MTR Sid 4 4

5 MTR is today operating 9 train systems on 3 continents Stockholm metro 1,2 m pass./day 108 km tracks, 100 stations Stockholm Gothenburg High-speed train (Open Access), start 21/ London Overground 2,3 m pass./day 110 km tracks, 55 stations London Crossrail New Metro under construction. Mobilization ongoing Beijing metro line 4, 14, 16 (under construction) 1,5 m pass./day 55 km tracks, 41 stations Hangzhou Metro 0,2 m pass./day 48 km tracks, 31 stations Hong Kong/Shenzen* 4,4 m pass./day 212 km tracks, 152 stations Sydney NWRL commuter train A new 15-year PPP contract to construct and operate 36km new commuter train line with 13 stations. Melbourne commuter train 0,7 m pass./day 372 km tracks, 212 stations OBS: passegers per working day Sid 5 5

6 6 MTR s business covers a broader spectrum than just railway operations MTR financials Billion Hong Kong Dollars (1 HKD ~ 0.95 SEK) MTR has a broad business, covering a large part of the public transport system Revenues Profit Property development: 51 stations with properties ~13 million m 2 GFA developed Property Management 12 shopping malls, 760,000m 2 commercial/office space 86,000 residential units Infrastructure development and Engineering Rail projects of ~180 bn SEK ongoing in Hong Kong, China, Australia Source: MTR Corporation Financial Statement 2013, 1): Profit for the year attributable to equity shareholders of the Company, Arising from underlying businesses

7 7 The railway operations covers ~25% of the profit, 75% comes from the public transport system In Hong Kong, the metro runs without tax subsidies Property rental Rental 31% 24% Railway Railway operations Operation A 1-way ticket costs ~7 SEK vs. 36 SEK in Stockholm metro Property development 14% 31% Station Commercial Station commercial Capturing the value in the public transport system is a significant source of financing

8 MTR is unique with Rail & Property -model LOHAS Park with new station: A city district with 58,000 residents and 1,6 million m 2 real estate on top of a train station and depot with apartments, offices, trade, park and other service functions. Built in several steps between Station opened in 2009 Source: Sid 8 8

9 LOHAS Park is one example where MTR developed a city integrated with the metro Before development, when an extension of the Tseung Kwan O Line was planned Sid 9 9

10 LOHAS Park Station construction plan Construction plan Site Area: 33 hectares Total GFA: 1.6 M m 2 50 residential towers, residents 45,000 m 2 shopping centre Community facilities incl. schools Transport interchange facilities Extensive landscaped open space Depot Station Sid 10 10

11 11 Content 1. Introduction to MTR and our R+P-model 2. Stockholm s subway 3. New train operation in Sweden: MTR Express 4. Conditions for commercial and procured traffic

12 MTR operates the Stockholm Metro since 2009 MTRS facts Lines, # 3 Stations, # 100 Length, km 108 km Annual journeys Daily patronage 329 mn 1.2 mn Concession 8 years + 6 yrs Turnover Employees 3,000 Fleet size 2.7 bn SEK 271 three-car trains 204 single-car trains Sid 12 12

13 Quality, effectiveness and employee satisfaction continues to increase Increased productivity for vehicles and staff via smarter work methods 000s km produced traffic per month, 12 months rolling average per train in traffic 10,70 10,65 10,60 10,55 10,50 10,45 10,40 10,35 10,30 10,25 10,20 10,15 10,10 10,05 10,00 9,95 9,90 jul-11 jan-11 jul-10 jul-13 jan-13 jul-12 jan-12 10,7 +6,1% jan-15 jul-14 jan-14 per FTE in traffic 1,86 1,84 1,82 1,80 1,78 1,76 1,74 10,1 1,70 1,72 1,7 1,68 1,66 1,64 jul-10 jan-11 jul-11 jan-12 jul-12 jan-13 jul-13 +8,6% jan-14 Improved punctuality in the entire system Total punctuality, all routes 12-month rolling average, % jul % jan-11 jul-11 jan-12 jul-12 jan-13 jul-13 jan-14 jul % +2.4% jan-15 Nearly tripled employee satisfaction MTRS, Employee satisfaction index (ESI) X Quality, effectiveness and safety are the trademarks of MTR Sid 13 13

14 Cleaning is an example of an area MTR has developed significantly since concession start Customer Take responsibility for development of dialogue Transparency in relation creates trust Result cleaning measurements on station Percentage units passed during controls, INSTA Employees Self-confidence culture Clear goals and resource identification to reach there Room for dialogue employee/manager Create pride for example by room in internal media Education of personnel in modern cleaning methods Organisation Organisation with clear responsibilities New work schedules, responsibilities and structures Implementation Leadership in focus Implemented new work methods Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Strong increase of cleaning results parallel with other improvements % passed measurement units during 2014 Sick absence decreased from 8,8% to 5% Employee satisfaction increased from 30% to 99% Increasing perceived cleanliness from travellers Reduced usage of chemicals (among others ionised water) Sid 14 14

15 15 Content 1. Introduction to MTR and our R+P-model 2. Stockholm s subway 3. New train operation in Sweden: MTR Express 4. Conditions for commercial and procured traffic

16 16 Our latest investment is the open access operation MTR Express between Gothenburg and Stockholm MTR invested ~1 bn SEK to start MTR Express with new trains from Swiss manufacturer Stadler Starting service 21st of March between Stockholm and Gothenburg with stops in Södertälje Syd, Skövde, Herrljunga ~90 departures per week from August 2015 Currently ~18,000 persons travel every weekday (~55% road, ~15% air, ~30% rail) MTR Express aims to attract customers from all segments and offers the most environmentally friendly way to travel between the cities

17 17 Content 1. Introduction to MTR and our R+P-model 2. Stockholm s subway 3. New train operation in Sweden: MTR Express 4. Conditions for commercial and procured traffic

18 18 What advantage does increased competition yield to travellers and society? Lower ticket prices for travellers, compare with aviation s development since the monopoly Veolia s entrance on Malmö-Stockholm have given 10% lower prices since 2010 After MTR Express announced entrance on the Swedish market one estimates 10-15% in price reductions Travellers offered new and better products. In Sweden MTR Express for example offers Brand new winter tested trains of high quality The most environmentally friendly trains: 30% lower electricity consumption compared to SJ s X2000 A new product- and service concept adapted to the customer Possibility of increasing train traffic at the expense of less environmentally friendly forms of transportation Aviation, bus and car still dominant on many routes in Sweden. Only 30% travels with train Sthlm-Gbg. This should be possible to increase significantly. Incumbent monopolists are forced to increase efficiency This forces sub-contractors to increase efficiency Industry develops, ultimately benefitting consumers and tax payers SJ has themselves announced that their average price on the route Malmö-Stockholm has decreased by over 10 percent since We see this as a clear sign of that competition has benefitted travellers Marco Andersson, press release, Veolia, 15 / Similar effects from competition on the route Stockholm Gothenburg is estimated to become around %. Crister Fritzson, VD SJ, SvD, 27/

19 19 Three important conditions for sound competition that increases customer benefit Long-sightedness required to carry out investments In Sweden there is a one-year allocation of train paths (track capacity). This creates uncertainty for investors, especially given the large investment new trains means Clarity around conditions for commercial train traffic and balance against procured traffic, when such is made available. Conditions and rules on the market must be clear, predictable and long-term. Active elimination of structural advantages for former monopolist (for example SJ in Sweden). This is required to create sound and equal terms of competition and eliminate obstacles for new actor.

20 20 Five specific areas that are important to plan for at a deregulation Signal systems Ticket sales Ensure equality between train types for signal system. Swedish Transport Administration s systems are adapted to SJ s X2000 but not other trains such as Stadler and Regina. This creates structural disadvantage for competition. Ticket sales must be at a neutral platform. In Sweden sj.se is the dominant sales channel, as online ticket sales was introduced when SJ had monopoly. This disfavours competition strongly Train path allocation Depot access Market data Allocation of train paths must be transparent and competition neutral, this is not the case in Sweden today. A control function and follow-up is needed to ensure competition neutrality Access to depots is very important for new actors. A review of the structure is needed to create competition neutrality and equal conditions In Sweden there is no official market data available for, for example, passenger volumes on different routes. In Great Britain there is an official database with both volume- and price levels per route. This is important to stimulate investments and the possibility for new actors to calculate on deals

21 21 Conditions for sound market and increased customer benefit for procured traffic Long-term contracts with focus on quality, not just price Long-sightedness enables investments and development. Long contracts, ex years, gives possibilities to invest in business and think long-term to develop quality and efficiency in the system, ex. subway in Stockholm Large focus on quality, not just price, promotes development of business. - It gives possibilities for development and avoids operators that want to compete on low price but cannot deliver high quality for travellers. - Quality, from time to time, also needs to be clearly measurable and affectable by the operator with target linked to bonus and penalty Procurements that enables full responsibility Broad responsibility for entire value chain, not just an operator role. It gives better conditions for quality and efficiency by coordination and a full responsibility. For example a contract should include: Traffic- and station operation, incl. cleaning, security, sales Maintenance of trains and responsibility for depots (important part of reliable operation) Heavy maintenance of stations, incl. elevators, escalators and other infrastructure. (important for customer experience) Maintenance of affected infrastructure (important factor for quality of operation) Commercial development of stations (important part of customer experience)

22 Thank you! 22