HSR - Definition

As defined by UIC (International Union of Railways)

−Specially built High Speed lines equipped for speeds above 250 km/h

or

−Specially upgraded High Speed lines equipped for speeds of the order of 200 km/h

Japan heralded the High Speed era in 1964 byintroduction of “Bullet Trains” at maximum speed of 210km/h

Length of HSR Systems in World

In operation (Kms)

Under Construction(Kms)

Total

China 22000 16200 38200

Spain 3100 1800 4900

Japan 2765 681 3446

France 2142 651 2793

Sweden 1706 0 1706

Turkey 1420 1506 2926

UK 1377 0 1377

Germany 3038 330 3368

Italy 923 125 1048

South Korea 880 552 1432

Russia 645 770 1415

Uzbekistan 344 256 600

Belgium 209 0 209

Netherlands 120 0 120

Moracco 0 350 350

By the end of 2016, length of the HSRs (with an operating speed no lessthan 250km/h) operating in the world has reached about 40,000 km.

HSR - General Characteristics

HSR projects are inherently:

• Technologically complex• Highly capital intensive• Have a long gestation and execution period• Not favored by private investors unless risks are

covered • Publicly funded, especially the initial HSR projects

Important Issues to be addressed

• Interoperability

• Choice of Gauge

• Choice of Technology

• Source of funding

• Choice of Strategic partner

What is Interoperability?

• In its purest form, high speed trainsystems and conventional lines should becompletely segregated.

• Whenever infrastructure is designed tofacilitate movement of HSR trains onconventional lines, or vice versa, thisflexibility of operation is known asinteroperability.

Prerequisite conditions for Interoperability

• Conventional line should have spare linecapacity to run frequent HSR services.

• Conventional stations should have theappropriate facilities to serve a large numberof premium passengers.

• Broad technical specifications of both HS linesand conventional lines should be compatibleviz. gauge, schedule of moving dimensions,signaling and telecommunication.

Interoperability (contd.)

• Operation may be of four types:

1 High speed trains can run on conventional lines also e.g. SNCF, France.

2. High speed lines which can be used by conventional trains alsoe.g. AVE, Spain.

Interoperability (contd.)

3. High Speed trains can run on conventional lines and vice versa e.g. ICE (Germany), Eurostar Italia.

Interoperability (contd.)

• The classic and the purest high speed system is where HSRlines are used exclusively by high speed trains and can notoperate on conventional lines as infrastructure for the twosystems is completely segregated e.g. JR Central and JR WestShinkansen in Japan.

Advantages of Interoperability

• Limited reduction in infrastructureconstruction cost as stations and track ofexisting system can be used

• Optimized utilization of existing network

• Seamless movement of passengers - as thereis no need to transfer between HS andconventional trains.

Disadvantages of Interoperability• Hazardous - Lower safety standards on conventional line.

Recent accidents in Spain (24.07.2013), South Korea(31.08.2013) and France (19.12.2007 & 17.07.2014).

• Less stable operations/inefficient operations due to speeddifferential/characteristics of trains.

• Longer turnaround time for rakes & low frequency of trains.• Inefficient use of rolling stock leading to increase in rolling

stock cost.• Increase in rolling stock cost due to need for compatibility of

systems i.e. signaling, power supply. Rolling Stock to be‘double-equipped.’

• May lead to increase in operation cost per Passenger Km inHSR.

• JICA study team, recommended for Ahmedabad-Mumbai,stand alone system without interoperability.

Choice of technology

Key factors to successful high speed rail:− Safety,− Reliability− High Frequency

• The most important components that define the HSRsystem are:− The train control system/signaling and− rolling stock which are integrated

Choice of technology (Contd.)

• Aluminium car bodies are more prevalent inHSR systems.

• Two fundamental technologies are in use:

− crash avoidance based Japanese technology

− crash worthiness based European (French) technology.

Choice of Civil Engineering (Contd.)Slab track v/s Ballasted track

Choice of Civil Engineering Track system for High Speed Railways

Choice of Gauge

• Broad Gauge (1676mm) vs. Standard Gauge(1435mm)

• Most of the IR network is on BG whereas all theoperational HSR systems in the world, with speedpotential of more than 250 kmph, are on SG.

• The biggest advantage of adopting BG for HSR linesin India will be the potential for interoperability withthe existing system.

• Option of gauge changing train as in case of Spain

Financing

HSR projects are Capital Intensive work in whichdirect or indirect government support is crucial.

Multilateral/Bilateral loans are required to beexplored fully to finance the project. This requiresadequate support/guarantee from Government forcheaper access to Loans.

HSR Project Structure

• Given its scale, the HSR project represents a funding

challenge.

• Revenue from passenger services may cover the cost of

operations and some element of infrastructure

maintenance, but not the upfront costs of construction.

• High speed railway projects are not self-funding for the

Private sector. The Government is required to support

these projects by offering the asset to the broadest pool

of capital to some concessionaire with some appetite for

revenue risk.

HSR Project Structure

• On the broad level, IR can consider to implement and later

operate the project by itself or its fully owned SPV, or

involve private sector in implementation and operations of

the project, i.e. through Public Private Partnerships (PPP).

• For this following structures can be adopted:

• Entire Development by Indian Railways (IR) or Fully owned

SPV

• Development of project through Public Private Partnership

(PPP)

Entire Development, Operation & Maintenance by Indian Railways(IR) or Fully owned SPV

• This model will have following two advantages :-

1. Private sector may not have risk appetite, and financingcapability for such a large project, Even in PPP, full risktransfer may not be possible, and IR as the operator oflast resort may end up bearing a very high level of risk.Hence, IR may consider to implement the project on itsown or through a fully owned SPV.

2. Project and Equity returns, if IR decides to implementthe project on its own or by floating a fully owned SPV.

• Out of these two options, development of this projectthrough a fully owned SPV will be more advantageous.

Development of project through Public

Private Partnership (PPP)• Private Developer may not be able to fund the project from

commercial borrowings.

• It is important that Government through, IR extends soft loan withtenure matching the concession period to private developer.

• There can be three option for this:

Design, Build, Finance, Operate and Transfer (DBFOT) of the entireproject by a single Private Developer; (PPP Option 1).

Build, Operate and Transfer (BOT) of Systems (exc RS & depot) andMaintenance Bases plus whole maintenance (Option 2).

Build, Operate and Transfer (BOT) of Systems (inc. RS & depot)and Maintenance Bases plus whole maintenance (Option 3).

Option 1: PPP on DBFOT model

• The Equity Return for the Govt. is in the order of 8.5%~10%. The return will be

considerably lower for Private developer because

It has to recover its cost in 32 years of concession and will not have anyterminal value unlike the Govt.

The cost of borrowing for developer will be around 12%.

• Equity IRR expectation of the private sector will be at least 15%. In order to

achieve an Equity IRR of 15%, the private developer will require a VGF of

about 42.2% for R2 and 55.1% for R5 of the Total project cost for the entire

project tenure. Considering this, PPP structure is not suitable for this project.

Advantages: All revenue risk can be transferred to private developer.

Disadvantages: There can be little appetite in Private sector for such a largeand complex project.

Option 2: Govt. on infra, rolling stock & depot, PPP on all other systems.

• Project should be unbundled into several sub-components to make it attractive for private players. Out of several models one could be as follows:

Receives Revenue

Govt./IR Private Player

Both Govt. andDeveloper shareRevenue Risk

Finances and Owns Systems and MBs

Builds and own infra ,RS and depots

Pays Track access charges and Revenue Share

Uses and maintains Infra, RS and Depot

Systems

RS DepotInfra

Maintenance Bases (MBs)

Property Dev.

Gets lease rights for property development

Option 3: Govt. on infra, PPP on all systems

• Government will only invest in Land/ Environment /R&R and Civil Infrastructure like Stations, Bridges, Earthworks, Fencing and tunneling.

• Private Sector developer will invest in systems, Rolling Stock and Maintenance bases and Property Development.

• the private Developer will operate and he will be obligated to maintain the entire assets.

Infra

Receives Revenue

Govt./IR Private Player

Both Govt. andDeveloper shareRevenue Risk

Finances and Owns and maintains Systems, RS, depots and MBs

Builds and own infra

Pays Track access charges and Revenue Share

Uses and maintains Infra,

RS + Depots

Maintenance Bases (MBs)

Property Dev.

Gets lease rights for property development

Systems

Financial Viability of various models

• While working out on the various models it was felt thateither the model of:

• Entire Development, Operation and maintenance ofHSR project by Indian Railways (IR) or Fully owned SPV.

OR• Govt. on infra, rolling stock & depot, PPP on all other

systems for Development of project through Public PrivatePartnership (PPP).

Is Financially viable. However, HSR project development areopen for new models which can be worked out based on themutual interests of the private developer.

High Speed Rail

Operations in India -

Way Forward

HSRC

• High Speed Rail Corporation of India Ltd. (HSRC)was formed as a subsidiary of Rail Vikas Nigam Ltd.(RVNL), with the approval of President, to developand implement High Speed Rail (HSR) Projects inIndia to run passenger trains at speeds up to 350km per hour, on 25th July 2012.

• Hon’ble Minister of Railways formally launchedHSRC in a function held at Vigyan Bhawan on 29th

October 2013.

Mandate of HSRC

HSRC has the mandate of Ministry of Railways to develop HighSpeed Rail corridors with speeds up to 350 kmph.

The activities to be taken up by HSRC include :

− Feasibility studies

− Preparation of Detailed Project Reports (DPR) for any corridordecided by the Government

− Preparation of technical parameters for HSR system

− Preparation of model concession agreements

− Developing various financial models and PPP options

− Discussions with stake holders including funding agencies

− Obtaining various government approvals etc. for implementingHSR corridors

− Implementing HSR projects

Diamond Quadrilateral

Diagonals

Legend

Diamond

Quadrilateral of

High Speed Rail

Network

Work taken up by HSRC

• HSRC gave the Technical inputs and associated with the JICAteam to finalize the route of HSR between Mumbai-Ahmedabad. The project which has been sanctioned and hasbeen taken up for implementation by NHSRC.

• HSRC through a global tender awarded the work of Feasibilitystudy for HSR on three corridors namely Delhi-Mumbai;Mumbai-Chennai and Delhi-Kolkata to InternationalConsultants from China, France and Spain respectively.

• All these Consultants are in the advance stage of their studies.Their recommendation on the final alignment of HSR corridorhas been accepted by Ministry of Railways and they are eitherin the process of developing this alignment in detail or theyhave already submitted the details of finalized alignment.

Work taken up by HSRC (Contd.)

• HSRC also got the Feasibility study completed for theHSR Corridor between Delhi-Chandigarh-Amritsarthe report of which has been accepted Ministry ofRailways. In this report following stations wereplanned on this alignment Delhi, Ambala,Chandigarh, Ludhiana, Amritsar.

• HSRC has also taken up the Feasibility study of Delhi-Chennai (Upto Nagpur) and Mumbai-Kolkata (UptoNagpur) under Government to Governmentcooperation which is being done by Government ofChina and Government of Spain.

Salient features of HSR Corridor between Delhi-Chandigarh-Amritsar

• The Feasibility Study was done by M/s SYSTRA (France)-RITES for a design speed of 350 Kmph and Commercialspeed as 300 Kmph.

• The finalized route is 458.49 Kms with Stns at New Delhi-Panipat-Ambala-Chandigarh-Ludhiana-Amritsar.

• A total of 58.3 kms is planned on Viaduct, 2.42 kms plannedunderground and rest planned on at grade.

• Cost (Excluding Rolling Stock) will be INR 46045 Crs, andincluding Rolling stock upto 2050, land premium, CostEscalation and IDC will be INR 110865 Crs.

• The report has envisaged 2yrs as Pre Construction periodand 6 yrs as Construction period.

• To Start with Fare has been assumed as Rs 4.48/ Km.

Salient features of HSR Corridor between Delhi-Mumbai

• The Feasibility Study is being done by M/s TSDI (China)-Tractabel for a design speed of 350 Kmph and Commercialspeed as 300 Kmph.

• The finalized route length is 1318 Kms crossing New Delhi-Jaipur-Ajmer-Udaipur-Dungarpur -Ahmedabad-Vadodara-Surat -Mumbai.

• A total of 204.9 kms is planned on Viaduct, 27.6 kmsplanned underground and rest planned on at grade.

• Approximate Cost (Excluding Rolling Stock) will be INR228272 Crs.

Salient features of HSR Corridor between Mumbai-Chennai

• The Feasibility Study is being done by M/s SYSTRA (France)-RITES-EY for a design speed of 350 Kmph and Commercialspeed as 300 Kmph.

• The finalized route length is 1368 Kms passing throughMumbai – Pune – Kolhapur – Belgaum – Goa (Spur line) –Hubli Dharwad – Davangere – Chitradurga – Tumkur –Bangalore – Tirupati – Chennai.

• Cost (Excluding Rolling Stock) for alignment on grade will beINR 1,28,296 Crs, and including Rolling stock upto 2050, landpremium, Cost Escalation and IDC will be INR 3,82,952 Crs.

Salient features of HSR Corridor between Delhi-Kolkata

• The Feasibility Study is being done by M/s INECO (Spain)-TYPSA (Spain)-ICT for a design speed of 350 Kmph andCommercial speed as 300 Kmph.

• The finalized route length is 1474 Kms covering Delhi-Greater Noida-Lucknow– Varanasi-Patna – Dhanbad-Asansol-Kolkata.

• A total of 5% of total length is planned on Viaduct, 2% oftotal length is planned with tunnel and rest planned on atgrade.

• Cost (Excluding Rolling Stock) will be INR 1,01,099 Crs.

Salient features of HSR Corridor between Mumbai-Nagpur

• The Feasibility Study is being done by M/s ADIF(Spain)-INECO (Spain) under Government to Governmentcooperation for a design speed of 350 Kmph andCommercial speed as 300 Kmph.

• The finalized route length is 798.5 Kms crossing Mumbai-Thane-Nasik-Aurangabad-Akola-Amravati-Nagpur.

• A total of 110 kms of total length is planned on Viaduct, 35kms is planned with tunnel and rest planned on at grade.

• Approximate Cost (Excluding Rolling Stock) will be INR1,18,461 Crs.

Salient features of HSR Corridor between Mumbai-Ahmedabad

Feasibility Study for Mumbai-Ahmedabad HSR Corridor wasdone jointly by Japan International Cooperation Agency(JICA) and Ministry of Railways (MOR).

JICA nominated Japan International Consultants forTransportation, Oriental Consultants Global Co. Ltd. andNippon KOEI to take up the work from Japanese side.

The finalized route length is 506 Kms crossing Mumbai-Thane-Virar-Boisar-Surat-Bharuch-Vadodra-Anand-Ahmedabad-Sabarmati. The average distance betweenstations has been kept approx. as 46 kms .

Fare is proposed as 1.5 times of 1A class fare of Railways.

Salient features of HSR Corridor between Mumbai-Ahmedabad

• It is expected that daily boarding passengers in 2023 will be 40 thousand and in 2053 will be 2 Lakhs.

• Train Operation Plans in 2023,2033,2043,2053Year 2023 2033 2043 2053

Train

Configuration

10 10.16 16 16

Traffic Volume

(Per/Per

day/One-

direction)

17,900 31,700 56,800 92,900

Number of

trains

(day/One-

direction)

35 51 64 105

Number of

trains

(Train/hour/o

ne direction)

Peak Hour

Off Peak Hour

Peak Hour:

About 3

Off Peak

About 2

Peak Hour:

About 4

Off Peak

About 3

Peak Hour:

About 6

Off Peak

About 3

Peak Hour:

About 8

Off Peak

About 6

Salient features of HSR Corridor between Mumbai-Ahmedabad

• The Project Cost in the feasibility study is envisaged as INR97,637 Crores when the alignment was a mix of Viaductand at grade.

• Now it has been proposed to have the complete alignmenton viaduct, to have a perfect grade separation through outthe alignment. For this the Cost is expected to be INR1,10,000 Crores.

• Construction Period is expected to be seven years i.e 2017to 2023.

Major Challenges in HSR in India

• Development of master plan of HSR operation onvarious corridors under development

• Developing common technical standards for variouscomponents of High Speed Operation

• Picking up of best technology available world wide

• Land Acquisition and spiraling cost of land acquisition

• Availability of construction contracting agencies andconsultants for timely completion of projects

• Technological challenges to avoid conflict with HSRoperation due to heavy population density

Thanks