Published on March 5, 2014
KINGDOM OF CAMBODIA MINISTRY OF PUBLIC WORKS AND TRANSPORT MINISTRY OF PUBLIC WORKS AND TRANSPORT Railway Department COUNTRY REPORT AND THE RAILWAY DEVELOPMENT IN CAMBODIA & COURSE PRESENTATION on “Costing & Pricing of Rail Transport Service” Presented by Mr. Sok‐Tharath CHREUNG Deputy Director of Railway Department Date February 2014 Date February 2014 Organized by AITD & NAIR 3‐15 February 2914, Vadodara, INDIA
Contents I. Country Report and the Railway Development in Cambodia Course Presentation: II. Cost and Pricing of a Train Passenger Service in Cambodian: Train? still Bus? III. How to make Cambodian Railway Systems profitable?
I. CAMBODIA’s Country Profile 15.26 millions (2012)** Annual Population Growth 1.5 per cent (2010-2012) Urban Population 20 % GDP Growth 7.2 % (2012) GDP per capita p p US$ 934 ( $ (2012)** ) Currency Riel but US$ is widely used Major Ports Member State of ASEAN in Apr 1999 Member State of ASEAN in Apr 1999 181,035 sq km (just about the same size of Gujarat State of India) India)* Population Capital City: Phnom Penh Land Area Sihanoukville Port and Phnom Penh Port Length of Roads (National, Provincial & Rural) 45,256.03 km (2012) Length of Railroad Length of Asian Highway Route in Cambodia 1,486.8 km (AH1, AH11 & AH123) Number of Vehicle * Gujarat State’s Area: 196,204 Km2 652 km (connected with Thailand and seaport) *Missing link with VN & Laos 1,761,415 vehicles (2012) **Source: IMF 3
Cambodia’s Railway Networks 1. Northern line, consists of 386 km - Phnom Penh to Poipet (Thai Border) - Si l Track Meter gauge 1000mm Single T k M t 1000 - Constructed since 1929 (during French Colonial Era) and finished in 1942 using steel sleepers (are replaced by concrete sleeper) bold rigid and used P 30 of rail support for 15 tons axle load (will be upgraded to 20 tons axle load). It consists of 49 Stations. Stations (still under rehabilitation). 2. Southern line, consists of 266 km - Phnom Penh to Sihanoukville Port - Single Track Meter gauge 1000mm - Constructed since 1960 (After Independent from French) and finished in 1969; using concrete sleepers and P 43 of rail support for 20 tons axle load. it consists of 29 Stations. ( (rehabilitation completed in 2011) p ) These rehabilitated projects cost US$142 Millions and are financed by ADB (60%), AusAid (15%) & RGC (15%).
Summary of Cambodia’s Road Networks Length, Km Road Classification under MPWT NR, 1 digit 2 262 77 2,262.77 NR, 2 digit 3,360.30 NR, 1 digit , g NR, 2 digit PR, 3 & 4 digit Total Road Class Provinci al Road Rural Road Total Road Classification Length, Km 2,262.77 , 3,360.30 6,627.96 12,231.78 45,256.03 - Road Density is about 249.87 Km/1000 km2 NR ,1 digit 18.34% 18.34 27.47 54.19 100 PR, 3 & 4 digit PR di i 54.19% 6,627.96 33,005.00 Length, (%) NR , 2 digit di i 27.47% Road Pavement type under MPWT Road Pavement Type Portland Cement Concrete, PCC Asphalt Concrete, AC Double Bituminous Surface Treatment, DBST Laterite Earth Road Total Length, Km Length, (%) 23.02 0.19 934.5 7.64 4,756.68 38.89 5,189.65 42.43 1,327.93 10.85 12,231.78 100 5
Photograph of 1‐Digit National Roads National Road #1 from Phnom Penh to Ho Chi Minh City (Plan to upgrade to 4 lanes) National Roads #5 from Phnom Penh to Thai Border (Under upgrading to 4 lanes) 7
Status of Asian Highways in Cambodia Route No Route No. Total Length g (Km) ASEAN Highways ASEAN Highways AH 1 Poi Pet – Sisophon ‐ Phnom Penh ‐ Bavet AH 11 Sihanoukville ‐ Phnom Penh ‐Kampong Cham ‐ Stung Treng Trapeangkreal Stung Treng ‐Trapeangkreal 762.8 AH 123 Cham Yeam ‐ Koh Kong ‐ Phum Daung Bridge ‐ Sre Ambel ‐Chamkar Luong 151 573.0 Total Length Total Length (Km) 1,486.80 1 486 80 8
Major Ports and Airports in Cambodia Cambodia has 02 autonomous ports, - Provincial authorities have 02 coastal ports and seven river ports, - Private enterprises owned have 03 coastal ports, and l d - District authorities have 42 ports. Siem Reap International Airport Phnom Penh International Airport Cambodia has 02 International Airports, Airports -- Phnom Penh International Airport and Siem Reap International Airport. Sihanoukville Autonomous Port (Sea Port) Phnom Penh Autonomous Port (River Port) 9
The Chronicle of Cambodian Railway 1. French Colonial Era (1863-1953): The First Construction of Cambodian Railway in 19291942 of the Northern Line for 386 km (from Phnom Penh to Thai Border). 2. Independent Era (King Sihanouk, 1953-1970): The 2nd Construction of Cambodian Railway in 1960-1969 of the Southern Line for 264 km (from Phnom Penh to Sihanoukville Port) for the purpose of buster international trade. 3. The 1st Civil War (American-Vietnam War:1970-1975): The first wave of destruction of Cambodian Railway. Both lines were frequently blew up sections by sections; all trains operation were almost completely ceased. 4. The Communist Regime (Khmer Rouge, 1975-1979): Both lines were rehabilitated (a major mode of transport), but train operations’ capacity were very low due to close economies. 5. The 2nd Civil War (1979-1991): Both lines were again frequently destructed but trains were still operated on daily/or weekly basis after sectional repairs. 6. The Collapse of Cambodia Royal Railway (1991-2006): The interruption of continuing civil wars with very poor maintenance of both tracks and trains led to transport services by rail sharply drop and until 2006 all trains transport service were completely shutdown. However, another reason of shutdown was the RGC stop providing subsidies. 7. The Restructuring of Cambodia Royal Railway (2006-2010): ADB started to finance the track works reconstruction of both lines (18 Feb 2008), and The State run company of Cambodia Royal Railway were dissolved on 1st Oct 2009 and all asset are conceded to an Australian private corporation (Toll Royal Railway) under 30 years Concession Agreement for Freight Service. Then the Cambodian Railways are revitalized (re-operated) in October 1st, 2010. Also The Railway Department were established on Oct 1st 2009 to oversee the Concessionaire and other railway development projects projects. 8. Cambodia Railway Networks Master Plan has been developed in a comprehensive manner for Short, Medium and Long Term Development for the next 25 years.
The Institution: Railway Department, under the Ministry of Public Works and Transport The Royal Government of Cambodia established Railway Department directly under Ministry of Public Works and Transport by sub decreed No. 163 dated 01 October 2009. The Railway Department and Concession Management Committee (CMC) are the authorities who oversees the railway concession agreement, railway reconstruction projects and become the f l point f other railway i j db h focal i for h il developments in Cambodia. Total Number of Staffs: 300 persons Management Staffs : 6 persons (1 Director & 5 Deputies) Engineer & Other Professional Staffs : 60 persons Technicians : 100 persons Skill Workers/Clerks : 140 persons p Address Railway Department : # 163 Russian Federation Blvd, Sangkat Srach Chak, Khan Daun Penh,Phnom Chak, Penh, C b di (Opposite of the C P h Cambodia. (O i f h Council Mi i il Ministers) ) Phone : +855 (011) 45 68 78 Fax : +855 (023) 42 61 40 E mail: tharath@gmail com
I- General Information Organization Structure Chart of Railway Department g y p DIRECTOR Secretariat Deputy Director Concession Relations Deputy Director Development Legal Office Deputy Director Policy & International Cooperation Deputy Director Inspections Deputy Director Administration Assets Office New Lines Planning Office Policy Office Locomotives & Rolling Stock Office Human Resources Office Concession Office Urban Rail Planning Office International Cooperation Office Track & Infrastructure Office Administration Office Safety Office Budget & Accounting Office Procurement & Project Appraisal Office Training Office
Railway Development Plan of Cambodia
Course Presentation: II. II Costing and Pricing of Passenger Rail Transport Service in Cambodian “Passenger Focus Corporate Plan” A seek to answer the Question Still be in Private Vehicles & Bus Service? or we need Train?
1. Costing The Main Cost Elements are: ‐ Investment Cost for the Infrastructures and Rolling Stocks, and ‐ Operations Cost The Operation of Passenger Train will also be given the existing Concessionaire (Toll Royal Rail), but with a new concession C i i (T ll R l R il) b t ith i agreement terms & conditions. Then the cost will be structured by the Concessionaire, and for y , sure it will be an economic efficiency under private sector. For the Costing Element it will not difficult to monitor. But for Costing of passenger train service to an extend period of 30 years we need to have a comprehensive survey on Demand and Forecast the Demand in a scientific manner. A Demand Forecast Model of JICA “Jicastarda Version 3.5 ” is the most practicable for developing country like Cambodia.
2. Pricing Pricing of Rail Passenger Service has to be based on the willingness to pay of the passengers. illi t f th The “Passenger Focus” Method is to be used for a comparative benchmarking provided by the Rail comparative benchmarking provided by the Rail Passenger Survey (RPS) and the Bus Passenger Survey (BPS) Survey (BPS) In order to succeed Passenger Focus needs a number of things to be in place: p • effective board leadership, governance and oversight • the resources to carry out this work to the necessary standard • capable, confident staff who want to work at Passenger Focus.
2. Pricing, cont The purpose is to provide/improve the quality of passengers’ experiences for driving efficiency and value for money The Strategic aims of Passenger Focus are: 1. Understanding the needs of passengers 2. Making a difference for all passengers through long term industry planning industry planning 3. Working to improve the passenger experience 4. Promoting good practice in complaints handling and providing 4. Promoting good practice in complaints handling and providing advice and advocacy 5. Improving access to services for all passengers 6. Increasing the influence of Passenger Focus through building trust
Strategic aim 1: understanding the needs of passengers • user’s priorities and satisfaction • smart ticketing i k i • regional passenger surveys (combining bus, rail and taxi) and the door to door journey experience.
Strategic aim 2: making a difference for all passengers through long‐term industry planning th hl t i d t l i • this has led to useful work on performance, fares and ticketing p , g • improve the user focus of longer term rail, bus and major road planning. This will include the five year spending plans for major roads and rail, transparency and bus partnerships. j d d il t db t hi
III. How to make Cambodian Railway Systems profitable? The Answer is The Answer is COMMERCIALIZE RAILWAY BUSINESS FROM THE STATE RAILWAY OPERATION O S O O TO A PRIVATE RAILWAY OPERATION ON A COMMERCIAL BASE UNDER THE FORM OF PPP UNDER THE FORM OF PPP (PUBLIC PRIVATE PARTMERSHIP)
Railway Restructuring The Royal Government of Cambodia has privatized the Operation of Cambodian Royal Railway and signed Concession Agreement for 30 years with Toll Holding Group (an Australian Based Corporation) on 12 June 2009. 12 J 2009 21
Railway Restructuring Toll Royal Railway - - In September 2010 The Toll Group and The Royal Group formed a 2010, joint venture (TRR) to be responsible for the operation and maintenance of Cambodian Railway under Concession Agreement. g p TRR began train operations on the Section of the Southern line from Phnom Penh to Touk Meas Station (Cement Factory) in the length of 120 km on October 1, 2010. ASSETS TRANSFER: TRR has rehabilitated 10 French Alstom Locomotives, 2 Czech locomotives, and 2 Chinese locomotives currently available to meet operating requirements. p g q
Railway Restructuring Toll Royal Railway As wagons, TRR has now rehabilitated 12 ballast wagons, 25 high sided wagons g , g , g g and are in the process of rehabilitating 33 fuel container wagons and 140 flat top container wagons adding significant freight capacity to the network. It’s also including a numbers of passender coach for toursit operation. All Stations and Depots (including railway lands) are Transferred and the All Stations and Depots (including railway lands) are Transferred and the concessionaire has to rehabilitated and developed by their own cost. Concessionare has to maintained and developed all railway infrastructures with by their own cost. y
Toll Royal Railway Overview Contact David Kerr, CEO, firstname.lastname@example.org Personnel 160 staffing including 2 ex Pats staffs with extensive international railway experience Service Offerings Bagged cement rail freight between Phnom Penh and Touk Meas commenced October 2010, containerized rail freight and bulk fuel deliveries Phnom Penh to Sihanoukville in mid 2013, and containerized and bulk rail freight between Phnom Penh, Pursat, Battambang and Poipet and Cambodia and Thailand planned for late 2013 Cambodia and Thailand planned for late 2013 Toll Royal Railway (TRR) • Joint Venture between Toll and the Royal Group • Concession is to Operate and Maintain for 30 year • All documentation and Safety Management System www.tollroyalrailway.com
Services of Toll Royal Railway y y Current services Bulk Fuel Bulk Fuel • TRR currently operates a bulk fuel train for Sokimex every second day and transport 1,200,000 litres of fuel per train or 17,000,000 litres per month Cement • TRR currently operates a bagged cement train service for SCG Trading two times every week moving 9,000 ton of cement per month Coal • TRR currently operates a bulk coal train for SCG Trading every second day and transport 800 ton TRR currently operates a bulk coal train for SCG Trading every second day and transport 800 ton of coal per train or 9,000 ton per month Containers • TRR has commenced a twice weekly container service to and from Phnom Penh and Sihanoukville Warehousing • TRR has continued its warehousing of cement products and is now extending the warehousing of cement to the Phnom Penh Dry Port and has commenced the warehousing of agricultural product at the Phnom Penh Dry Port
Snapshot of Toll Royal Railway p y y • • • • • • • A strong commitment to 30 Year Railway Concession Accredited Safety Management System ISO 9001, 2008 Accreditation as a Commercial Rail Operator 98Ha Freight Terminal and Warehouse development in Phnom Penh Sub‐urban Development of Toll Royal Railway’s Phnom Penh Dry Port Direct Port Access in Sihanoukville for bulk and container trains Service Offerings: – bagged cement rail freight between Phnom Penh and Touk Meas (Cement Factory) commenced in October 2010 – bagged salt from Kampot to Phnom Penh and bagged rice from Battambong to Phnom Penh by road and by train from Phnom Penh to Kampot September 2012 (The Service of Complete Solution for Cambodia’s Supply Chain Logistics) of Complete Solution for Cambodia’s Supply Chain Logistics) – bulk fuel deliveries from Sokimex oil facility to Phnom Penh March 2013 – containerised rail freight Sihanoukville and Phnom Penh July 2013 – containerised and bulk rail freight between Phnom Penh, Pursat, Battambang and t i i d d b lk il f i ht b t Ph P h P t B tt b d Poipet and Cambodia and Thailand planned for 2014 once the line is rehabilitated
Toll Royal Railway KPI s Toll Royal Railway ‐ KPI’s Toll Royal Railway has achieved the following over the past 4 years; T ll R l R il h hi d th f ll i th t4 • Zero loss time injuries • Zero medical treated injuries Zero medical treated injuries • Zero absenteeism • Fuel burn 40% saving on budget g g • Overtime less than 10% • Uniform compliance 100% • Positive drug tests 0 • Positive breath tests 1 (visitor non employee)
Toll Royal Railway – key points • • • • • • • • • • • • • • • • 12 locomotives are rehabilitated and fit for purpose 160 wagon are rehabilitated and fit for purpose 40 container flat wagons ordered from Malaysia in Q3 2013 75 container flat wagons under negotiation from Australia due Q1 2014 4 new locomotives and 100 wagons under negotiation with China (finalising specifications and ensuring co‐operability with Thailand) Train Driver training to Australian Training Standards competency assessments are implemented Train Driver training to Australian Training Standards – competency assessments are implemented to Australian Total Quality Framework by an Australian Registered Training Authority International Safety standards implemented, colour of rollingstock, risk assessments, locomotive headlight and safety lighting standards have been implemented Uniforms, colour, standards, Hi Visibility, PPE (Personal Protective Equipment), footwear U if l t d d Hi Vi ibilit PPE (P l P t ti E i t) f t implemented ISO 9001, 2008 accreditation in Commercial Train Operations International Medical Standards implemented Drug, alcohol, fatigue testing implemented Insurance renewed and up to date, Cargo Insurance A, B and C in place IT Systems, GPS monitoring implemented on all locomotives and track equipment Corporate Governance, compliance auditing, legal compliance, annual KPMG audits TRR is compliant with all relevant legislation. Prakas and Sub Decrees TRR has complied with every element and all requirements of the Concession Agreement
Toll Royal Railway Toll Royal Railway – Achievements Safety risk assessments have been conducted on the entire TRR business activities i k t h b d t d th ti TRR b i ti iti locomotives and wagons have been painted yellow to reduce risk profiles at level crossings. Rollingstock is to American Railroad Association Standards TRR has achieved and maintained zero employee injuries (LTI’s) for the past 46 months across track works, warehouse, office and administration, workshop and train operations all staff have been issued and comply with PPE, rail hi visibility safety compliant orange uniform and wet weather equipment all staff wear the Toll Royal Railway ID Card that includes their employee number and photo ID all staff wear the Toll Royal Railway ID Card, that includes their employee number and photo ID staff are subject to and participate in random breath tests for blood alcohol content and participate in pre‐employment and show cause drug testing TRR has designed and contracted the manufacture of vigilance control units and have fitted them to all operational conceded locomotives, all equipment is fitted with GPS tracking ll l d dl ll f d h k all changes to work systems or work practices are preceded with a change management process, risk assessment and are advised to the effected staff via a tool‐box talk developed a Contractor Manual and contractor packs are implemented with contractors p p p 29
Toll Royal Railway Toll Royal Railway – Achievements Commercial, introduced the Toll Royal Railway website www.tollroyalrailway.com developed road, rail and warehousing cost models for current and proposed services signed a contract with SCT (Cement Company) and commenced warehousing and PUD (VAS services up to 3,000T/week), significant new business in Rice exports, Garment exports, Coal imports, Fuel imports, Cassava exports, Corn exports developed a customer list and used this as the basis for developing the TRR 5 year business, capex and financial model completed a preferred supplier list using local and international suppliers completed a preferred supplier list using local and international suppliers commenced the licensing of a number of conceded buildings, warehouses, offices finalised Trading Terms and Conditions with Toll’s Corporate Legal Department developed a commercial format for providing customer contracts and proposals implemented the Toll formats for customer credit checks and legal, insurance and corporate governance and is working to implement these processes commenced conducting post capex audits in order to ensure the costs, desired benefits and commercial matters have been achieved for the authorised expenditure commercial matters have been achieved for the authorised expenditure 30
Toll Royal Railway Toll Royal Railway – Achievements Corporate Governance 5 year business plan has been prepared with The Royal Group and Toll all business transactions are conducted in accordance with the Australian Corporations Act and Trade Practices Act and in the concept of total transparency all staff are paid using electronic banking via ANZ Royal Bank all invoicing and all payments are made via ANZ Royal Bank all invoicing and all payments are made via ANZ Royal Bank all condition precedent requirements have been complied with CDC tax exemption has been completed and approved, this was renewed on the 30th June 2012 with a six month extension designed, published and launched the TRR Web Site (including links to the JV partner businesses) all staff undergo pre‐employment medical and drug tests annual and periodic TAX audit by KPMG annual and periodic TAX audit by KPMG all staff trained in Fire Fighting and First Aid all training is competency based to International standards 31
Toll Royal Railway Toll Royal Railway – Achievements Operations, we have; worked with all stakeholders and delivered the first train operations on time on the 01st October 2010 using Phase 1 track designed and developed a new safe working in 2013 the safety management and safe working system is based on the Australian National Code of Practice introduced electronic satellite tracking of all of its owned locomotives, rail mounted track equipment and trolleys. refurbished the train control center for monitoring the performance of all rail movements on the track on the southern corridor and trained its train controllers in safe‐working and track side the track on the southern corridor and trained its train controllers in safe‐working and track side protection corporate and HR policies that have been written and posted in all worksites in English and Khmer designed, developed and written a new fully compliant Safety Management System in accordance with international best practice restored 12 locomotives and 160 wagons, 1 x 25t crane, 1 x 70t crane, 1 x rail mounted excavator, I rail mounted P&H crane and numerous rail trolleys and 7 dresines (yellow 12 person rail trolleys) 32
Toll Royal Railway Toll Royal Railway – Achievements Operations – cont, we have; ensured that locomotive and wagon workshop have been made operational, workshop staff d h l i d k h h b d i l k h ff have been trained, equipment has been restored, electronic engines have been rewound, mechanical engines have been repaired, overhead cranes have been restored repaired and or rehabilitated a number of conceded buildings including refurbishment of the historic Phnom Penh railway station patrolling f the 6.5km from Phnom Penh to the Green Trade Warehouse, refurbished the Pursat and Battambong stations and maintained the 9.6 km of track Phnom Penh to Samrong junction restored all of the permanent way and track machinery and equipment restored all of the permanent way and track machinery and equipment commenced the warehouse inventory sorting and cataloguing and will implement Tolls warehouse inventory system in due course constructed new railway lines along the wagon workshop and into the Cement Warehouse, the conceded asset register will be amended to reflect the new warehouse and the demolition of d d t i t ill b d dt fl t th h d th d liti f the former kings coach warehouse refurbished the former CWT Dry Port and the associated warehousing and offices and the terminal hardstand, the reach stacker and empty container handler and warehouses 33
The Question has been asked, “what has TRR done with the Conceded Asset”?
Toll Royal Railway Safety and Training Safety is Our No. 1 Priority Staff are all in uniform Training is ongoing
Toll Royal Railway Toll Royal Railway – Achievements ISO 9001, 2008 TRR bt i d ISO 9001 2008 TRR obtained ISO 9001, 2008 accreditation in October 2010 and have registered for ISO 9001, dit ti i O t b 2010 d h i t d f ISO 9001 2010 TRR have undergone four full ISO 9001, 2008 compliance audit and no non–compliances or non‐ conformances were identified TRR prepared all documentation, human resource filing, medicals and training now comply with ISO 9001, TRR’s entire SMS is being aligned to ISO principals including contractor management and procurement TRR developed a safety interface agreement with the Railway Department that has been p y g y p amended to comply with ISO standards and converted to Khmer and will be resubmitted to the Minister for approval An International Railway Training Organisation is training TRR and Railway Department employees in International Railway Safe Working Standards employees in International Railway Safe Working Standards ISO 9001, 2008 training for TRR and Railway Department staff in December 2012 Full ISO 9001, 2010 audit planned for September 2013 57
Toll Royal Railway Toll Royal Railway – Achievements Training all staff have been trained in HIV/AIDS awareness all staff have been trained in personal budgeting and personal financing all staff have been trained in Fire Fighting. Fire extinguishers are provided in all vehicles, workshops and offices/administration buildings selected staff (50% of employees) have been trained in First Aid training. First aid kits are provided in all vehicles, workshops and offices/administration building all staff are being trained and competency assessed to International training and ll ff b i i d d d I i l i i d assessment standards based on the Australian TQF standards Selected staff are being trained as ISO 9001 auditors 58
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