Tuesday, March 11, 2008

Interesting Comparative Railway Project Costs

A classmate sent this email on a comparative study of railway project costs.... After reading it, I'm even more worried about the direction the Philippines is headed..

Considering the lack of any public bidding as required under RA 9184, just how cost competitive is the Northrail project?

As per the 
BCDA website (http://www.bcda.gov.ph/projects-northrail.asp) the project proponents are the North Luzon Railways Corp. (NLRC) and the Chinese contractor - China National Machinery and Equipment Corp. (CNMEC) financed through the Buyer Credit Loan Agreement between the Export-Import Bank of China and the Government of the Republic of the Philippines and approved in August 2003 by the NEDA-ICC. In 19 August 2003,  EO 232 signed by President Gloria Macapagal-Arroyo directed "the Secretary of the Department of Transportation and Communications (DOTC) to exercise primary oversight function over the Northrail project, transferring the Northrail Corporation from the Office of the President to the DOTC, and reorganizing the respective governing boards of Northrail and the Philippine National Railways (PNR). The BCDA remains as an investor of the Northrail."

Northrail details:

Phase I - 80-kilometer rail line between Caloocan City in Manila to the Diosdado Macapagal International Airport (DMIA) at the Clark Special Economic Zone (CSEZ) in Pampanga;

The initial phase of the Northrail Project entails the reconstruction and upgrading of the line from the existing Caloocan Station to the DMIA at the CSEZ. This was born out of a plan to reactivate rail service to the North to develop the CSEZ as Asia-Pacific's regional transshipment logistics hub. Phase I is further divided into two sections: Section 1 - 32.2km from Caloocan to Malolos and Section 2 47.8km from Malolos to DMIA. Construction of Section 1, Phase 1 began in October 2006 following the successful relocation of almost 20,000 project-affected families occupying the site of the Philippine National Railways (PNR).

Double track (separate tracks for north and south bound trains to allow for simultaneous operation) at-grade (ground level).

Operating speed: Approximately 80 to 130 kph (for Inter-Urban Service)

The total cost the 32.2 km Section 1 of Phase 1 of the project is $503 million.

Cost per km = US$15,621,118
Cost per meter = US$15,621


This is what was found on the following website for NEW High Speed railway projects with trains less than 250km/h (significantly faster than Northrail) and where the prices and distances were clearly stated. if a range for the distance or prices was stated, I used the lower distance and higher cost - http://www.railway-technology.com/projects

It should be noted that 
The International Union of Railways an international rail transport industry body with 171 members (railways, rail operators, infrastructure managers, railway service providers, public transport companies, etc.) on all 5 continents defines high speed lines as, "Specially upgraded High Speed lines equipped for speeds of the order of 200 km/h". The preamble also states, "Finally, in many countries where the performance of the conventional railway is not very high, the introduction of some trains capable of operating at 160 km/h and offering a significant level of quality - often as a first step towards a future genuinely high speed service - may already be considered as high speed." (http://www.uic.asso.fr/gv/article.php3?id_article=14). The Northrail project with a top speed of "130kph" would therefore not be considered high speed.

1. Ankara-Istanbul High-Speed Train Project, Turkey 250km/h (156mph) http://www.railway-technology.com/projects/ankara-istanbul/

TCDD has divided the Ankara-Istanbul high speed train project into two phases. The first involves the construction of a 251km (157 mile) section of fast line between Sincan and Inonu at a cost of US$747m by the end of 2006. 
Phase 2 covers much more complex terrain, and will be undertaken in two sections. The first is 158km (98.75 miles) long between Inonu and Kosekoy including more than 60 bridges and viaducts. Completing the second phase is a 56km (35 mile) section between Kosekoy and Gebze. In total, the second phase will cost US$2.27bn. The entire route is 533km (333 miles) long, some 43km shorter than the current alignment.

Phase 1 total cost is US$747m / 251km = US$2,976,095.617/km
Phase 2 total cost is US$2.27bn / 533km = US$4,258,911.82/km

2. Argentine High-Speed Railway, Argentina - http://www.railway-technology.com/projects/argentina/

The high-speed line is split into two sections. The first is a 250–300km/h high-speed route between Buenos Aires and Rosario. Construction on the Buenos Aires-Rosario section is aimed to commence in March 2007 and trains to be running by 2009, at a total cost of between US$700m and US$1bn

Total cost of US$1bn / 250km = US$4,000,000.00/km


3. AVE Spain High-Speed Rail Network, Spain - http://www.railway-technology.com/projects/spain/

The next section to open will be the Antequera-Malaga section of the 155km Cordoba-Malage route. This includes the Abdalajis tunnel (approx 7km - http://www.ita-aites.org/cms/837.html) – the longest on the AVE network – and is due to be completed at the end of 2006 at a cost of €125m. Opening of this section has been expected before the end of 2007.

Total cost of €125m or US$182,175,00 / 155km = US$1,175,322.58/km


4. Queensland High-Speed Line (Tilting Trains), Australia - This is a good comparative - http://www.railway-technology.com/projects/queensland/

Tilt train technology has been introduced to eastern Australia in June 2003 following completion of Queensland Rail's (QR) AU$590 million project to upgrade its 1,681km main line between Brisbane and Cairns, cutting journey times by seven hours, three times a week. It competes more aggressively with road and coastal shipping. 

The project, which began in early 1992, has increased both the maximum speed and capacity on the 1,067mm-gauge route from the south of Queensland, linking several major cities and tourist centres. It is also a busy corridor for containerised freight.

Total cost of AU$590m or US$542,800,000 /1,681km = US$ 322,903.03/km

Some 300+ kmh very high speed projects

1. California High Speed Rail Network, USA - http://www.railway-technology.com/projects/california

The new two-track high speed rail line would have trains capable of speeds up to 200mph (321 kmh). These would carry up to 115,000 passengers per day and serve up to 30 stations along a 700 mile (1,126 km) route serving the population centres of San Francisco, Los Angeles, Sacramento and San Diego. 
After more than a decade's work the project is now hanging in the balance, as the US$9.95bn bond initially allocated to the high-speed rail project may be removed from the public spending plan in November 2006. 
Total cost of US$9.95bn /1,126km = US$ 8,436,944.94/km

2. Beijing - Shanghai High-Speed Line, China - http://www.railway-technology.com/projects/beijing/

the Chinese Ministry of Railways has a much bigger project in progress – the 1,318km Beijing-Shanghai high-speed line running parallel to the existing route. It will be solely dedicated to passenger train operation, and the Chinese Ministry of Railways is promising a 2010 opening date. 

The new high-speed line will be designed for 300km/h (186mph) operation and reduce the journey time between Beijing and Shanghai from 14 hours to just five. An estimated 220,000 passengers per day will use the trains. 
Despite China wishing to complete the line by 2010, engineers have said that construction could take at least until the middle of the decade. The total cost of the new line is expected to be ¥100bn ($12bn). Foreign investment will be allowed.
Total cost of US$12bn / 1,318km = US$9,104,704/km