Effective transport connections for a thriving Finland

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1 Effective transport connections for a thriving Finland

2 A more efficient transport system The role of the FTA is to develop the road, railway and waterways networks into an integrated and efficient transport system. The aim is to establish uniform procedures in order to effectively provide the required customer services. Effective transport connections are essential for sustainable development. The development of connections is imperative to ensure the competitiveness in society and on the national level. The FTA is also responsible for developing the operating conditions for public transport Liikennevirasto 2

3 Different challenges and opportunities Western Finland: to ensure effective transport chains to important traffic nodes and ports Southern Finland: to provide adequate capacity for the nationwide and international transports of the trade and industry to facilitate the mobility of labour by good public transport connections Northern Finland: to meet the needs of the mining and other heavy industries, as well as those of the tourism industry Eastern Finland: to provide connections to Russia to meet the needs of tourism, mining and forest industries Saimaa Canal operations Liikennevirasto 3

4 The FTA is responsible for transport infrastructure assets worth billions The Finnish Transport Agency annually purchases infrastructure management, planning, surveying and other services for about 1.7 billion euros, which represents about one-third of Finland s infrastructure field. The Finnish Transport Agency is responsible for transport infrastructure assets amounting to almost 19.2 billion euros.t Agency is responsible for transport infrastructure assets amounting to nearly 19.2 billion euros The annual budget (gross) is about 1.8 billion euros, of which: 1,020 million euros for basic transport infrastructure management 610 million euros for development 81 million euros for shipping 100 million euros for the procurement and development of public transport, as well as for archipelago traffic24 million euros in subsidies for the building of the West Metro The Finnish Transport Agency's own budget is approx. 87 million euros Liikennevirasto 4

5 Finnish Transport Agency organization from 1 July 2013 Director General Internal Audit Regional Steering Communications Strategy Operations Management Planning Projects Project Management Infrastructure Management Maintenance Traffic and Information Information Traffic Management Centres Finance and Performance Management Project Implementation Infrastructure and the Environment Traffic Services Legal Services and Procurement HR and Administration Liikennevirasto 5

6 Railway statistics The length of the Finnish railway network is 5,900 kilometres 3,359 level crossings and 43 tunnels on the main lines Every year around 40 million tonnes of freight are carried by rail Every year 70 million journeys are made by train Liikennevirasto 6

7 The environment is taken into account in traffic solutions The Finnish Transport Agency strives to protect the environment and people from health and environmental hazards. In infrastructure management, the key environmental issues are economical use of energy and natural resources, climate change mitigation and preservation of biodiversity. The traffic solutions must support sustainable development: transport pricing and taxation is considered a future means of influencing people s choice of transport mode. The following steps are taken to reduce traffic emissions: supporting unified land use in urban regions and public transport conditions developing energy-efficient solutions and intelligent logistics in freight traffic improving competitiveness in railway traffic Liikennevirasto 7

8 Ensuring safety is our first priority The Finnish Transport Agency strives to reduce the number of traffic accidents in all its activities. Our objective is that no fatal injuries or accidents harmful to the environment occur in maritime and rail transport. In road transport, our objective is to reduce the annual number of road fatalities to under 100 by Safety is ensured by paying attention to the following factors: impact of land use public transport automatic traffic surveillance elimination of road traffic arrangements and level crossings information on traffic situations, conditions and disturbances intelligent traffic solutions Liikennevirasto 8

9 GROSS TONNAGE FOR RAILROAD SECTIONS IN 2009 (EXCLUDING SM1, SM2 AND SM4 EQUIPMENT) The figures for each railroad section show gross tonnage of goods transported on the section (millions) Kolari Rovaniemi 1.3 Kelloselkä 0.1 Kemijärvi Excluding railway yard traffic Source: VR and Finnish Transport Agency Tornio 1.5 Röyttä Laurila 6.1 Kemi 6.0 O ulu Pesiökylä 0.5 Kokkola-Ylivieska Gross tonnage: 15.7 million /23/ Raahe Vartius Tu om io ja Ylivieska Kokkola Kontiom äki 0.8 Vuokatti Pietarsaari Pännäinen Pyhäsalmi 2.7 Talvivaara 2.7 Iisalmi Nurmes Haapajärvi 0.9 V aasa 0.8 Pyhäkumpu Lieksa S iilin jä rvi Kuopio 0.7 Uimaharju Ilom antsi Saarijärvi 2.2 Seinäjoki Joensuu V iin ijärvi 0.3 Kaskinen Haapamäki 1.0 Jyväskylä 4.7 Varkaus Säkäniemi M änttä Pieksämäki V ilp pu la Parkano Huutokoski Niirala Jämsänkoski Savonlinna M äntyluoto M ik ke li Pori L ielah ti Orivesi Tampere P arikka la 25.3 Valkeakoski 6.4 Rauma Toijala 1.1 Im atra Heinola Kokem äki Lahti Imatrankoski 5.5 Lappeenranta Uusikaupunki 7.4 Kouvola V a in ikka la 1.6 R a is io Riihim äki Luumäki Juurikorpi 4.3 Hyvinkää Naantali 13.5 Kerava Hamina Turku 4.9 Kotka Sköldvik Loviisa Karjaa 1.8 Vuosaari 2.1 Kirkkonummi Helsinki 17.1 Hanko

10 Annual funding for basic transport infrastructure management Improvement: the level of service in the transport network is improved through small investments. Periodic maintenance: damages caused by wear and tear of the transport network and its special structures are repaired, and old infrastructure is replaced to meet current standards. 110 M 180 M 380M 405 M (80)* (180)* (370)* (385)* Traffic services: provide real-time traffic control, situation awareness and information, in addition to ice-breaking and archipelago traffic services. Routine maintenance: of the daily operation of network is ensured through long-term procurement agreements. *) (2013 funding) Liikennevirasto 10

11 Construction Management in Transport Agency 2013 Annual Budget on 2013 ~ 680 M Small Investments ca. 110 M Large Investments ca. 550 mill. railways 210 mill. roads 135 mill. waterways 10 mill. post finance projects 150 mill. PPP -projects 47 mill. Planning & Design 5 mill. Total value of these Projects ca. 4 Billion By Contruction Management works 36 State Employees, of which 27 Project Managers or Project Engineers. FTA is responsible ca. 20% of Finnish infrastructure investments. Of this volume FTA s CM Departure responds 80%

12 FTA s Current infrastructure projects Road, Waterway and Railway projects Liikennevirasto 12

13 Well planned and systematic efforts to develop the transport network State financing for transport investments ~ 400 M annually Criteria for investments: low emissions, traffic safety, and key connections for businesses Investments mainly funded by budget funding (one PPPproject) Plans for road section construction projects to be re-evaluated and rescaled Liikennevirasto 13

14 Supply Chain in Public Sector Projects Gen. Contr. Customer End User Owners Architects and Consulting Engineering Sub Contractors and Producers CM Contractors and Producers Number of Contracts Public Authorities Does these Contracts have same target? Or wants everybody maximize his OWN contract? How do You feel if somebody wins? Is it Your lose? Liikennevirasto

15 FTA s strategic targets for using procurement models which improve productivity Background: Increase in productivity has been much lower in construction industry than in other industries Productivity potential has been recognized and a significant part of it is connected to the way of acquiring services and cooperating during the project FTA has been obliged to develop the industry in cooperation with Finnish infrastructure builders to be the most effective in Europe by 2015 Strategical targets for Alliance and Lean models by Public procurements To improve productivity of the entire industry To change the culture into a more open and trusting way of working To improve the customer satisfaction for end products faster, better quality and cheaper To develop innovativeness and knowledge

16 Expects for FTA s Project Managers Analyze each procurement! Every investment are different. Challenge producers! Use bonuses - not only sanctions! Think if the lowest price really always is the best way to procure! Concentrate for better Risk Management and Cost Management how Risks could be shared? Why only routine performance? Target should be top performance by every participant! Less waste understand how owners actions bring more value for customs (end users) Continuous improvement proposals, ideas, learning from mistakes All actions based on openess Traffic and work Safety

17 Working Together in Alliance Core Team Core Team: Administration & Contractors & Consults Common office, where will be worked and have all meetings and negotiations Liikennevirasto 17

18 Procurement categories Liikennevirasto

19 Procurement management system - definition of needs The procurement guidelines should be designed to be user-friendly and support the maintenance of the system. Procurement categories form the basis and they are grouped e.g. according to the procurement procedure: specialist service procurements, investment procurements, maintenance procurements etc. The whole consists of an instruction site that contains written instructions, a procurement process description and links to document templates and other instructions. The design and layout of the instruction site as well as its implementation need thorough planning. Document templates are available for the users in the document management system. The design of the instruction site is planned so that the procurement parts or entities can be integrated into the new FTA management system descriptions Liikennevirasto 19 Written procurement guidelines and procurement process description Document template 1 Written procurement guidelines, link to document templates Document template 2

20 Maintenance / 2013 Contract prices (yht. 9,7 M ) Eltel Networks Oy 3 % Komsor Oy 40 % 15 % 17 % KVL-Tekniikka Oy Lemminkäinen Infra Oy 7 % Metsäliitto yhtymä/ A. Saukkonen 1 % 1 % 16 % Railtek Oy Rata- ja Talohuolto Oy VR Track Oy

21 Construction works / 2013 Contract prices(25,8 M ) Celer Oy 0 % 1 % 8 % 5 % 2 % 1 % 1 % Destia Oy E. M. Pekkinen Oy Electric Power Finland Oy 6 % 3 % Eltel Networks Oy Komsor Oy 72 % 1 % Railtek Oy Ratatek Oy Skanska Infra Oy Suomen GPS-Mittaus Oy VR Track Oy

22 Efficient transport connections thriving Finland Liikennevirasto 22

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