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. Cooperation of railway construction companies in Europe within EFRTC Joseph H.M. Urlings EFRTC Vice-President.

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Presentation on theme: ". Cooperation of railway construction companies in Europe within EFRTC Joseph H.M. Urlings EFRTC Vice-President."— Presentation transcript:

1 . Cooperation of railway construction companies in Europe within EFRTC Joseph H.M. Urlings EFRTC Vice-President

2 . What is EFRTC ? Federation of national associations and national coordinators representing the majority of specialists trackworks contractors in the countries of EU and EFTA at present national associations of 12 EU/EFTA members states are EFRTC full members, namely Belgium, Bulgaria Estonia, France, Germany, Italy, Luxembourg, the Netherlands, Portugal, Spain, Switserland and UK they represent 130 contractor companies with total turnover of some billion Euros and significant workforces using most advanced technology for the construction, track renewal and maintenance mainly performed under the contracts with all major European Infrastructure Managers

3 . Some examples of EFRTC contractors Germany – 14 contractors e.g. Leonhard Weiss, Schwerbau, Heitkamp, Spitzke etc. delivering most of the DB contracts) France – about 30 contractors with ColasRail, Eurovia and TSO as leading contractors performing for SNCF and RATP Italy – about 30 medium sized contractors dedicated for track renewal and maintenance of RFI network Spain – medium size contractors grouped in consolidated large size companies such as e.g. COMSA group UK – 6 major contractor, leading Balfour Beatty (30 000 staff worldwide, £ 5,9 bi turnover), Carillion, Jarvis and others NL - VolkerRail, StruktonRail, BAM Rail – all works for ProRail full list on

4 . EFRTC focus on business needs of railways Infrastructure accounts up to 50 to 70 % of total costs of operation of railways In EC about 30 billion is spent on existing infrastructure annually of what about € 20 billion for renewal and maintenance of track It can be estimated that about the same level of investment will be needed for the new EC members for upgrading the existing network so in total about € 40 billion annually Any potential savings will have a tremendous impact on the efficiency of investments into railway network and its operation EFRTC supports business approach through overall supply chain with all partners aiming at increasing performance, efficiency and quality through innovative solution driving cost reduction of rail system operation

5 . EFRTC companies principles EFRTC members are private companies working in competitive market and living from awarded contracts The technical and entrepreneurial competence of contractors is based on high value expertise gained on relatively long terms and as such it shall be maintained and further developed in close cooperation with customers –Infrastructure Managers European market shall be fully opened and supported by EC directives, standards and further harmonisation - any distortion of competition may have a serious impact not only on contractors but also on their clients –Infrastructure Managers

6 . EFRTC major objectives Promote liberalization and harmonization of European market for track construction, renewal and maintenance to be carried out by effective and competitive private sector contractors to the satisfaction of their customers Represent the interests of the Federation and its members with regard to European institutions, governments and public bodies, railway infrastructure managers and operators, and their representative associations such as EIM, UIC and CER Contribute to drafting European standards applicable to contractors while complying with Interoperability Support technical innovations and improvements in safety, quality, competency and thus contributing to increase of overall efficiency of the rail sector

7 . EFRTC structure Statutory bodies – General Assembly and Board (elected representatives at at level of Companies Directors), at present Chairman Jorge Miarnau-Monserrat from Spain Professional Committees chaired by Board members - Policy and Research Committee, Chairman: Jeremy Candfield (UK), Vice Chairman: prof Lothar Fendrich (D), - Safety and Security Committee, Chairman Jo Urlings (NL), - Technology and Logistics Committee, Chairman: Fernando Santos (P), Vice Chairman: Alessandro Rossi (I), Joint EIM/CER/EFRTC working group A - Market Strategy, chaired by EIM/Network Rail B – Long Term Funding and Planning, chaired by CER E – Contracting Strategy, chaired by EFRTC, Spitzke (D) F – Harmonization of procurement, co-chaired by EIM/EFRTC, ProRail/VolkerRail (NL)

8 . EFRTC work performed The EFRTC activities were focused into series of important areas which included: The optimization of management, construction, renewal and maintenance of track infrastructure The harmonization of procurement procedures Participation in drafting European standards applicable to contractors Safety procedures for work on track Participation in EC research projects and in the future in EC tenders for TEN network and structural funds

9 . Construction, renewal and maintenance Optimization of overall supply chain in management, construction, renewal and maintenance of track infrastructure in accordance with the business needs of our customers and in cooperation with infrastructure managers mainly through Identification of best practices Benchmarking of key performance indicators Procurement and contracting, etc. based on Profound knowledge of infrastructure managers business objectives in terms of RAMS and LCC, safety targets, investment strategies and resources, etc Technical and entrepreneurial competence of contractors for the execution of work and delivering the results as contracted – on time and at costs

10 . Harmonization of procurement procedures Work performed by joint EIM-EFRTC Study group with focus to the following major issues Contracting process starting with Qualification, Selection criteria and Contract Award Harmonisation of certification of working methods and personnel Investing in equipment in relation to contract characteristics (type of contract, value, duration, etc.)

11 . European standards applicable to contractors EFRTC is represented in CEN/TC 256/SC1 “Railway applications-Track and plays active role in drafting all standards applicable to contractors The major interest are standards dealing with Specification for construction and maintenance machine because the capital costs of trackworks machinery and their depreciation are key cost drivers Qualification system for railway track work contractors Safety Protection on track during work Measuring and recording systems for track geometry and quality assessment Rail grinding, milling, welding and planning work and some others in total 45 standards published by TC 256/SC1

12 . Participation in EC bodies/projects RIMARE Railway Infrastructure Maintenance and Renewals Efficiency Study Identification of best practices working jointly with infrastructure managers Proposal of business models for cost-effective track renewal and maintenance INNOTRACK Innovative track concepts EFRTC major contribution to logistic and services for new innovative concepts for track renewal and maintenance Final report on benchmarking of the interface between infrastructure managers and contractors identify success critical areas for the future potential improvements

13 . Outlook for the future Continues effort for provision the best services to our customers – infrastructure managers in terms of costs and quality of performed work responding to terms of contracts More competition in particular with regard to technology market/offer (machinery) but also more cooperation with infrastructure managers and railway operators Harmonisation of procurement procedures to assure fair competition and best performance for awarded contracts More visibility at EC for supporting contractors and suppliers to assure cost-effective investments into European infrastructure projects in particular for priority projects of TEN Further harmonisation and standardisation taking into account the innovation driving the cost reduction of railway system

14 . There is a strong consensus of views between EFRTC members and Infrastructure Managers (IMs) established by benchmarking research The key issues related to contractors business are often about process, people and culture even if technology and safety harmonisation are also important in particular for cross border operation and opening of the markets The over-arching key to success: a closer and more open relationship between IMs and contractors Seven key areas identified as critical to success, to be taken forward in joint contractor/IM working groups: Key issues

15 . Seven Success-Critical AreasABC Market Strategies Long Term Funding and Strategic Planning Work programming DEF Project Management and Logistics Contracting Strategies Rules and Regulations G Plant

16 . Differing rules and regulations are a key barrier to entry into national markets A more open market would produce more efficient prices, more efficient sizing of capacity and better utilisation Moreover requirements can be very rigid and onerous in proportion to benefits So need harmonisation based on good practice And a certification process that encourages innovation rather than obstructing it F – Rules and Regulations

17 . Remits related Rules and Regulations In the area of technology and safety harmonization the EFRTC drafted the remits and agreed with EIM and CER to continue with review of current rules and regulations for cross acceptance of machinery, staff and works, proposal for harmonisation including qualification of contractors and harmonization of procurement procedures review of safety issues hindering harmonisation of rules and regulations for cross-acceptance of machinery, staff and working processes Joint EIM/EFRTC/CER work on both remits can serve to the future standardization work and as input to the work on interoperability Praha, 12.03.09

18 Thank you very much for your attention!!! Questions/Comments For further information, please consult or send an email to

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