Manufacturing operating and maintaining different rolling stock
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1 Manufacturing operating and maintaining different rolling stock
2 Business model with a corporate centre and three different activity areas Renfe-Operadora Railway transport operator in Spain PASSENGERS: High Speed Long Distance Regional Commuter FREIGHT & LOGISTIC SERVICES MANUFACTURING & MAINTENANCE OF ROLLING STOCK Emerging from the restructuring of the old Integral Train Maintenance Unit, was created, after a deep transformation to compete in a liberalized market. 2
3 New maintenance approach: From a subsidised company To a competitive company in the market Financial Burden for Government High Average Age Rigid Organization Not adapted to Market demands with Alliances for Manufacture & Maintenance with Access to the Latest Technology with an Optimal Network of Depots with Technical & Economic Efficiency with a career plan for staff From a maintenance company MAINTENANCE of conventional rolling stock To an integral company MANUFACTURE & MAINTENANCE of conventional and High Speed rolling stock -Operadora as a reference for maintenance & manufacture of Rolling Stock More efficient & effective use of resources In line with market demands 3
4 Main traffic figures (2011) PASSENGERS TRAFFIC: PASSENGER PER KM (Millions)... 21,372 PASSENGER (Millions) PASSENGERS FLEET: TRAINSETS.... 1,164 FREIGHT TRAFFIC: NET TONNES PER KM (Millions) ,567.1 NET TONNES (Millions) PRODUCTION: TRAINS / DAY.... ~ 5,000 4
5 Evolution of Rolling Stock Manufacture and Maintenance by Renfe Situation prior to High Speed did not exist Prior to the acquisition of AVE trains in 1992, the railway fleet in Spain consisted only on conventional rolling stock. CONVENTIONAL ROLLING STOCK: Manufacturing. 0% Maintenance 100% Rolling stock was manufactured by external companies and basically all maintenance was carried out at depots. The technological development of rolling stock hardly experienced any changes during this time. 5
6 Evolution of Rolling Stock Manufacture and Maintenance by Renfe 1992 (beginning of the high speed service) The implementation of high speed services, was a major technological change in the Spanish railway scenario. To begin with, our own company depots were not able to meet the challenge of maintaining the new rolling stock. Renfe outsourced these services to the manufacturing companies. The progressive reduction of conventional rolling stock led to over capacity at depots. CONVENTIONAL ROLLING STOCK: Manufacturing. 0% Maintenance 100% HIGH SPEED ROLLING STOCK: Manufacturing. 0% Maintenance. 0% 6
7 Evolution of Rolling Stock Manufacture and Maintenance by Renfe AFTER 2005 CONVENTIONAL ROLLING STOCK: Maintenance 100% STRATEGIES: Refurbishment 100% Establish alliances with the private sector, both for the manufacture of trains and for internal and external maintenance. Technological update of Renfe- Operadora depots. Modernization and upgrading of facilities. NEW ROLLING STOCK: (High Speed, Long Distance, Regional, Commuters) Manufacture. 20% Maintenance. 50% 7
8 MARKET Relationships Market - Manufacturer Before 2005 RAILWAY UNDERTAKING MANUFACTURERS Customers needs and expectations Marketing department Rolling Stock department Manufacture department Procurement department Procurement department 8
9 MARKET Relationships Market - Manufacturer After 2005 RAILWAY UNDERTAKING MANUFACTURERS Customers needs and expectations Marketing department Rolling Stock: manufacturing & maintenance JOIN VENTURES JOIN VENTURES JOIN VENTURES Manufacturer 1 Manufacturer 2 Manufacturer N 9
10 Joint Venture Renfe - Private Sector SIEMENS VOSSLOH Established on March 12, 2002 Capital increase to incorporate new High Speed Projects (Train class 103) Established on January 24, 2007 CAF Established on May 14, 2007 BOMBARDIER Established on November 28, 2007 ALSTOM Established on January 21, 2008 TALGO ALBATROS Established on June 03, 2008 Established on February 26,
11 Immediate Future of Joint Ventures The scenario described before could change in the near future. The Spanish Government has decided to reduce the weight of the public sector in the railways, which could lead to the disinvestment of Renfe in some of its subsidiary companies. The goals of this disinvestment are: To improve the economic performance of Renfe. To increase competitiveness in the maintenance sector, which will result in lower maintenance costs and better performance of the rolling stock. To improve the profitability of the different operators. 11
12 ...Thank you for your kind attention
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