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Hitachi officials pay visit to Philippine president Aquino
http://rtvm.gov.ph/index.php?option=com_content&view=article&id=4077:call-of-hitachi-ltd-officials&catid=41:othr-engmnts&Itemid=60

President Benigno S. Aquino III received the officials of Hitachi Ltd., a Japanese multinational corporation, led by its chairman Mr. Takashi Kawamura in Malacañang.

Hitachi officials expressed their intention to engage in Private-Public Partnership (PPP) program especially in the sector of railways system. With this, the President discussed the three mass railway transits which are planned to be constructed in Antipolo, San Jose del Monte and Bacoor, Cavite. He further talked about the installation of mass freezing and cold storage facilities to improve fisheries and aquatic production as well as the protection of thirty six thousand miles of Philippine coastline.

The Japan-based company thanked the President for the assistance that the government extends in the operations of Hitachi in the country.

 

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Mitsubishi, others request bid deadline extension for Manila LRT / MRT PPP
http://business.inquirer.net/4708/gov’t-grants-90-day-extension-for-lrt-mrt-bid

The government has pushed back the deadline for submission of offers for the joint operation and management contract of Metro Manila’s main commuter train lines, allowing interested parties more time to study project details.

Officials of the Department of Transportation and Communications (DoTC) last week notified prospective bidders about the extension, but the final bulletin had not been issued yet.

“I got the news [Thursday] via text message, but [DoTC officials] said they would issue a bid bulletin to make it official,” said an executive of one of the groups interested in bidding for the P14-billion contract.

The original deadline for the submission of bids was July 11. The contract to operate the Light Rail Transit line 1 and Metro Rail Transit (MRT) is the first project under the administration’s public private partnership (PPP) infrastructure scheme.

The winning bidder will have five years to operate the two train lines as a single system. The government expects services to drastically improve by being more efficient.

The contract’s duration will start in January 2012, which means the extension of the deadline to submit bids is unlikely to result in a delay in the project’s implementation.

Japan’s Mitsubishi Corp. and local firm Autro Porte Technique Global Inc. were the two firms that requested for the extension of at least 90 days.

Transportation Undersecretary Ruben S. Reinoso said companies had asked for an extension of at least 90 days to have more time to study the 3,000-page bid document that the DoTC had given out.

Reinoso said bidders also needed more time for “site inspections and due diligence.”

A total of 16 companies so far have expressed their interest in bidding for the contract. Among them are local conglomerates Ayala Corp., San Miguel Corp. and Metro Pacific Investments Corp.

Marubeni Corp., Sumitomo Corp., US-based BF Construction Services Inc., Swedish company Bombardier Transportation and international tech giant Siemens are among the interested foreign bidders.

DoTC officials said local groups would need to bring international partners since no one in the country’s private sector has experience in operating train lines.

About a million people use the LRT line 1 (Baclaran to Roosevelt) and MRT (Taft to North Avenue) every day. A separate contract to increase the train system’s capacity, through the addition of new coaches and expansion of stations, will be auctioned off separately.
 

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What is PPP, does that mean the foreign company will only get 50% of profits and the local one the other 50%? All that means is in the future the local company will have learned the technology of the foreign one and then the foreign companies will have a hard chance to win any future projects.
 

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Japan to join railway projects in 3 Asian nations
http://www.reuters.com/article/2011/06/16/japanrailway-idUSL3E7HG2VA20110616
(Reuters) - Japan will partner with Keihan Electric Railway Co and others for railway projects in Vietnam, Mongolia and Indonesia, The Nikkei business daily said.

Japan has reached a deal with the three nations to build four railway projects, which are expected to cost 535 billion Yen ($6.60 billion) in total, the newspaper said.

Japan will invest into railcars, signal systems and operations for these projects, the daily said.

Keihan Electric Railway will invest in the entity supervising the largest project, a 35 kilometre railway in Vietnam connecting central Hanoi with a high-tech industrial park, the Nikkei said.

Nomura Research Institute and others will conduct feasibility studies for the project, which is expected to cost 270 billion yen ($3.33 billion), the newspaper said.

In Mongolia, Marubeni Corp plans to invest in two subway lines that will be constructed in central Ulan Bator. JGC Corp and others will participate in feasibility studies. The total cost is expected to reach 180 billion yen ($2.22 billion), the daily said.

In Indonesia, Sojitz Corp and infrastructure design firm Japan Transportation Consultants Inc plan to join a 55 billion yen ($679 million) project to restore a 189km railway in southern Sumatra.

In Jakarta, for a project involving a major train station, Osaka-based Nikken Sekkei Civil Engineering and Tokyu Land Corp plan to participate. The project is worth 30 billion yen ($370 million), The Nikkei said.

The projects will be done in public-private partnerships and the feasibility studies for the railway projects will begin in August, the daily said.

The undertakings are expected to be eligible for funds under Japan's official development assistance program, which provides yen loans to foreign nations, the newspaper said.

The participating Japanese companies will tap loans from JICA and Japan Bank for International Cooperation, The Nikkei said. ($1 = 81.035 Japanese Yen) (Reporting by Rachana Khanzode in Bangalore; Editing by Jarshad Kakkrakandy)
 

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Discussion Starter #6
What is PPP, does that mean the foreign company will only get 50% of profits and the local one the other 50%? All that means is in the future the local company will have learned the technology of the foreign one and then the foreign companies will have a hard chance to win any future projects.
PPP = Public-private partnership

PPP could be a JV with a local firm, in which case the foreign firm would likely only get a share of the profits, but it doesn't have to be. Strict definition of PPP is simply a public service such as public transportation)—could be the construction or operation of the service—being contracted out to a private entity. It's becoming very popular as a way to make public services more efficient. It's a good thing for Japan, as it gets their foot in the door in the local market... If they win and do a good job, they could get tapped for other contracts.
 

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Keihan expands presence internationally with Vietnamese, Chinese projects
http://sankei.jp.msn.com/economy/news/110620/biz11062022470038-n1.htm

In the joint public-private partnership (PPP) overseas infrastructure improvement projects being offered by the Japan International Cooperation Agency (JICA), a joint proposal by Keihan Electric Railway and two other firms for preparatory studies for Hanoi Line 5, an urban railway in Vietnam, was provisionally selected on June 20. Keihan announced the news the same day. Keihan is also making inroads into China’s real estate development market, and through participation in railway operations projects in Hanoi is seeking to expand its overseas business.

The preparatory studies for the railway project were jointly proposed by Keihan; the Japan Railway Technical Service (JARTS) (HQ: Bunkyō Ward, Tōkyō), which handles consulting services for overseas railway projects; and the Nomura Research Institute (NRI) (HQ: Chiyoda Ward, Tōkyō). A formal decision will be made in mid-August.

Hanoi Line 5 is a 35 km long railway connecting the central area of the Vietnamese capital of Hanoi with suburban areas. In the preparatory studies, Keihan will be responsible for the railway business aspects, including service plans, while JARTS will handle demand projections and environmental impact assessment and NRI will handle financing and other tasks.

Keihan has exchanged memoranda of understanding (MOUs) with local real estate development firms regarding project cooperation, and if the project moves forward, there is a high likelihood that Keihan will be tapped for the railway operations contract. The preparatory studies are slated to take place over a one-year period starting in August. The project would break ground in 2015, opening gradually in phases between 2019 and 2022. The construction capital cost is projected to reach ¥270 billion.

Keihan has already made the decision to join mixed-use development projects featuring residential units and other uses in Shenyang, China. The two projects are joint ventures with Tōkyō Tatemono and local real estate development firms: the Tomorrow Square (明天广场) project slated to open at the end of this fiscal year, directly connected to a subway station, and the Chun He (春河) project, adjacent to a park in the central area of the city.

Keihan ridership reached its peak in FY1991 at 419.97 million riders. Ridership in FY2010 was 280.59 million riders, a 33% drop from FY1991 levels, and executives say, “In order to strengthen our revenue base, we must look towards the Asian market, where there is considerable growth.”

Rendering of Keihan Electric Railway’s Tomorrow Square project in Shenyang, China. (Courtesy of Keihan).
This is a supplement to the article posted previously.

Full press releases from Keihan are here:
Hanoi Line 5: http://www.keihan.co.jp/news/data_h23/2011-06-20.pdf
Shenyang development projects: http://www.keihan.co.jp/news/data_h23/2011-06-17.pdf

Hanoi Line 5 Project
Length: 34.5 km (planned)
Route: South side of West Lake to Hoa Lac via the Hanoi International Center for Exhibition
Line design: Double-track electrified railway (planned)
Gauge: 1,435 mm (international standard gauge, planned)
The line is slated to gradually open in phases by extensions from central Hanoi City out towards Hoa Lac.
The local firm partnering with Keihan in the project is Kinh Bac City Development, a core business under the Saigon Invest Group.

As for the Shenyang developments, the Tomorrow Square project is composed of 4,600 condo units, 95,000 sq m of retail, and 40,000 sq m of office, located adjacent to Century Plaza (世纪广场) Station on Shenyang Metro Line 2. The Chun He project is 2,700 condo units, 44,000 sq m of retail, and 51,000 sq m of office, located near Youth Park (青年公园) Station on Metro Line 2.

Overall, very nice from Keihan... I think other private railways will need to start taking a look at this as ridership continues to decline and domestic competition increases.
 

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Speaking of donations, here is a scene in Myanmar (Burma). The first unit is an ex-Sanriku Rlwy 36-300 (ex-Yokohama YES'89 121/122) diesel railcar , the second an unknown homebuilt type (but with JNR pattern coil spring bogies), and the last a kiha 58:

 

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Discussion Starter #13
Hitachi railway systems business strategy update: Part 1

On 2011.06.16, Hitachi released a slew of presentations on its business growth strategies in order to achieve the goals set forth in its 2012 Mid-term Management Plan. The presentations covers eight of the company’s core businesses, including railway systems.

Here’s some of the more interesting excerpts from their railway systems business strategy:

Their 2015 target is to grow revenues to 250% of 2010 levels and substantially increase their profitability.







 

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Discussion Starter #14
Hitachi railway systems business strategy update: Part 2

Overseas business strategy is focused on three markets for the time being: U.K., China, and Southeast Asia / Brazil / India



Efforts in the UK market are focused on rolling stock / maintenance projects, including the Class 395 and the IEP.





Efforts in the Chinese market include electrical equipment for CRH380C, CRH7, and urban rail systems, as well as implementations of CTCS for intercity railways and CBTC for urban railways.



Local production through JV by expanding Xian plant and constructing new plant in Changchun



Strategy for emerging markets

 

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Well, there’s this in the English-language press:

Return of the Bicol Express
http://www.railwaygazette.com/nc/news/single-view/view/return-of-the-bicol-express.html

This indicates 83 cars from JR East.

Apparently, Niigata Nippō, a small local newspaper in Niigata, reported on May 25 or 26 that 20 cars would be headed to the Philippines out of Niigata East Harbor, including ex-Jōban Line 203 series, Kiha 52 series, and “cars with observation rooms” (perhaps the Gracia / Kogane that retired in December of last year). It’s a small local paper, though, so I don’t have access to the original article, only some comments on the Web here). However, some articles say it will be until August / September until they leave port (?).

There was also an article one week earlier from the same newspaper (full article here) that said that 203 series units at Niigata were headed to Indonesia. Not really sure if this was a mistake or if they really are shipping to both countries out of Niigata.

Anyways, here’s some 203 series being delivered to Niigata East Harbor (2011.05.25).
Source: http://minkara.carview.co.jp/userid/17948/blog/











 

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Discussion Starter #17
Another set, showing them sitting at port waiting to be lifted on container ship (2011.06.12). According to the blogger, there were 19 203 series cars lined up at the time of these photos, which would leave only one more car left to reach the 20 mentioned in the newspaper article if these are all bound for the Philippines. This may be a mistake though, as I count 19 in the last photo, plus the one set off to the side in the first photo... Which would make sense since these are 10-car trains (so two trains total). The one set off to the side also appears to be inside a larger enclosure, so perhaps there will be more cars coming later (?).
Source: http://blogs.yahoo.co.jp/hides724/









 

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Hitachi Strategy

Efforts in the Chinese market include electrical equipment for CRH380C, CRH7, and urban rail systems, as well as implementations of CTCS for intercity railways and CBTC for urban railways.
Does anybody know what the CRH380C and the CRH7 is? I guess the later could be an high speed EMU (up to 200kph?) aligned with the new Chinese strategy...
Anyway, I'm just wondering: Now that the Chinese are stetting up their first factories in Brazil (CNR), which apparently is also a target country for Hitachi, how long will they keep making technology transfers to their future competitors?
 

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You can find out about the CRH380C on the Wikipedia page for CRH3... The CRH designations are a little confusing since the original 380C (Bombardier Zefiro platform) is now 380D. Basically, the 380C is supposed to be an improved 380B (Siemens Velaro platform), with redesigned nose and Hitachi electrical equipment.

The presentation kind of mentions it, but I think CRH7 is one of the 200 km/h models being designed for the less important intercity lines… I believe it’s being manufactured by Changchun Railway Vehicles.

Despite China MOR's constant trumpeting of "100% domestic", I believe there are some components they still cannot produce domestically, which is why there is still foreign involvement in core components for even the latest CRH380 models. Plus, overall, Japanese rolling stock manufacturers usually produce higher-end products, which will naturally have a smaller potential market... This means that manufacturers of specialized equipment will need to diversify their clients and partners if they want to survive, which has already led to some cross-national partnerships like Mitsubishi + Hyundai Rotem.
 
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