MTR Nordic Gustav Sjöberg Business development manager, MTR Tech

Transcription

1 MTR Nordic Gustav Sjöberg Business development manager, MTR Tech Ett bolag inom MTR Corporation Sid 1

2 What is MTR? One of the world s leading global railway operators with approximately 11 million completed journeys every day. MTR operates, develops and builds metro, commuter and high-speed trains as well as associated infrastructure, stations, homes and shops. MTR has a presence on 3 continents and is responsible for 11 systems. Founded in Hong Kong in Has been publicly listed on the Hong Kong Stock Exchange since The State of Hong Kong is still the majority shareholder. The Nordic region has been highlighted as one of the Group s growth areas. Ett bolag inom MTR Corporation Sid 2

3 MTR is responsible for 11 systems on 3 continents, ranging from metro to intercity services Beijing metro lines 4, 14, Daxing & 16 (under construction) 1.8 million passengers/day 147,1 km tracks, 124 stations Stockholm metro 1.2 million passengers/day 108 km tracks, 100 stations Stockholm commuter rail 87 million passengers/year 241 km tracks, 53 stations High-speed trains Stockholm- Göteborg, started March km tracks, 5 stops London Crossrail New metro under construction Melbourne commuter train 0.4 million passengers/day 390 km tracks, 218 stations South West Trains Operates London Waterloo and South West England 220 million trips/year, 976 km tracks, 186 stations, 1700 departures/day Hangzhou Metro 0.54 million passengers/day 54 km tracks, 34 stations Hong Kong 5,6 million passengers/day 230,9 km tracks, 93 stations Shenzhen 0,54 million passengers/day 20,5 km tracks, 15 stations Sydney Metro Northwest commuter train A new, 15-year PPP contract to build and operate a 36 km commuter train line with 13 stations. Sid

4 MTR Nordic Assignment: Management, follow-up, coordination Culture/values, brand, policies, processes Synergies Specialist expertise Business development Employees: approximately 90 MTR Tunnelbanan MTR Express MTR Tech MTR Pendeltågen Next deal Assignment: A world-class metro Procured operation, contract Assignment: The number one train operator in the world Competitive business Assignment: World-class maintenance In open market competition, main revenue from procured operation Assignment: A world-class commuter rail system Procured operation, contract ? Employees: 2,700 Employees: 120 Employees: 380 Employees: 1,200 Ett bolag inom MTR Corporation Sid 4

5 MTR s vision We aim to be a leading multinational company that connects and grow communities with caring service Ett bolag inom MTR Corporation Sid 5

6 The MTR approach Customer satisfaction Customer experience Time table Punctuality Commercial services stations Facility Management stations Cleaning stations Safety Customer service stations Driving train safely Rolling stock maintenance cleaning Infrastructure maintenance Efficiency Sid 7

7 Key milestones in the liberalisation of the Swedish passenger rail market 1990: First private operator in tendered traffic 2010: Full liberalisation of Swedish open access market 1988: Vertical separation of incumbent SJ (rail infrastructure placed in Banverket, now Trafikverket) 2001: SJ restructured into a pure passenger traffic operator (newly formed entities in charge of e.g., stations and freight traffic) 2015: MTR Express commencing traffic (first major challenger to SJ) Sid

8 The Swedish passenger railway market Approx. 14 bn SEK annual revenues 7 Subsidized, tendered traffic Liberalised market since the early 1990s Typically 8-10 year long contracts where traffic is tendered either by a regional public tender authority or Trafikverket (for unprofitable long-distance traffic) Mostly local and regional traffic, e.g., commuter trains in Stockholm and Gothenburg 7 Commercial traffic (open access) Liberalised market since 2010 Any operator with a traffic licence can apply for train paths to Trafikverket Operators have full commercial freedom (i.e., fare-setting, train design, service concept) SJ still with 95+% market share Main lines are Stockholm-Gothenburg, Stockholm-Malmö and Stockholm-Sundsvall Sid 10

9 MTR Tunnelbanan Continuous improvements for an increased number of satisfied passengers Ett bolag inom MTR Corporation Sid 13

10 The contract for the Stockholm Metro We manage operation of the metro on behalf of the Stockholm Public Transport, SL. Our agreement runs for 14 years and covers everything that makes the three lines of the Stockholm Metro run. Traffic operation Metro services Traffic information Ticket sales Customer service Cleaning of metro trains and stations Maintenance of vehicles and other equipment Ett bolag inom MTR Corporation Sid 14

11 Continued improvements in the metro The highest punctuality level in the metro s history with an average of 97.7% in 2015 Satisfied Employee Index: 92 (max. 100) Fewer trains but more departures with more efficient procedures General customer satisfaction at highest level in the metro s history, 84% 2016 Cleaning in the metro: 100% in all INSTA 800 surveys in recent years Ett bolag inom MTR Corporation Sid 15

12 MTR Tech World-class rolling stock maintenance Ett bolag inom MTR Corporation Sid 19

13 MTR Tech - World class maintenance Main contract is rolling stock maintenance in MTR s Stockholm Metro contracvt 400 employees and 5 vehicle depots around Stockholm. Maintenance and cleaning on the 500 metro carriages that operate on the Stockholm Metro. 106 trains daily are delivered to serve the Stockholm Metro. MTR Tech also carries out work for other clients in the rail industry (components and vehicle works). Ett bolag inom MTR Corporation Sid 20

14 Open access competition in Sweden Introduction to the market and MTR Express Effects from increased competition Reflections on the Swedish rail industry 22

15 MTR Express commenced traffic on Stockholm- Gothenburg in March 2015 First major challenger to incumbent SJ (previously 150- year long monopoly) 100 weeklydepartures, vs approx. 220 for SJ X employees Total investment of approx. 700 MSEK in 6 new trains from Swiss manufacturer Stadler Maximum speed 200 km/h, same as SJ X2000

16 Significant potential in increasing the rail market s share on Stockholm-Gothenburg Est. no. of travellers per direction and weekday (region to region) Rail Air Bus 99% lower carbon dioxide footprint if everyone travelled by rail Car

17 All new major open access players in Europe targeting same route characteristics Key characteristics for most attractive open access routes Short enough journey time to compete with air, long enough distance to be more competitive than car Mix of high-paying business travellers and leisure travellers filling up capacity Major catchment areas in both ends of route Acceptable infrastructure Vienna-Salzburg Prague-Ostrava Rome-Milan

18 Open access competition in Sweden Introduction to the market and MTR Express Effects from increased competition Reflections on the Swedish rail industry 26

19 Ticket prices significantly down thanks to MTR Express s entry Indexed average price level, lowest available fare, Stockholm-Gothenburg, first year after MTR Express entry SJ pre MTR Express % SJ the year after MTR Express entry ~85-25% MTR Express ~65 Source: SJ.se; Infare, Resrobot.se 27

20 MTR Express most punctual operator on Stockholm-Gothenburg Punctuality (both directions), Q min +5 min 92% 83% 88% 87% 82% 71% 73% 61% 69% 48% Snabbtåg Source: Trafikverket LUPP-data; Flightstats.com 28

21 Drivers for higher punctuality than competitor Performance-oriented culture All staff feel engaged to contribute High transparency incl. quarterly punctuality reports published Procedures to minimize effects from infrastructure-driven delays Staff given large mandate, which avoids bottlenecks and long lead-times Quick turnarounds with quick cleaning and loading of catering thanks to strong cooperation with partners New, high-quality trains Significantly fewer rolling stock failures Train with outstanding acceleration useful to quickly recover from stops 29

22 Open access competition in Sweden Introduction to the market and MTR Express Effects from increased competition Reflections on the Swedish rail industry

23 Reflections on the Swedish rail market The market has undergone major changes during the past few decades (deregulation, separation of infrastructure/stations/operators) generally with good results further work needed to clarify responsibilities There are a lot of opportunities to improve the quality of the rail system through soft factors, e.g., establishing a more performance-oriented culture Competiton is good as it improves productivity and drives innovation but it needs to be on equal and fair terms

24 To capture all benefits, playing field must be neutral for all open access operators Ticket sales The dominance of SJ.se means high booking fees for the consumers (3-4 times higher booking fee for a ticket compared to the airline industry) All operators offering should be available in main sales channel(s) Depot availability A state-owned company, Jernhusen, has in practice a monopoly on all attractive depots and stations, which does not foster innovation or cost-efficiency Jernhusen has contracts with SJ and its maintenance providers, which in practice locks out other operators from key depot locations Market data Access to market data is crucial when a new operator enters a market Currently no source with market data for all operators