National Railway Master Plan Focus Group Developing Rail Freight Services on Java: What is Recommended for the Railway Master Plan? 6 May 2010
Objectives of the National Railways Master Plan
Rapidly expand railway capacity to meet
Indonesia’s growing passenger and freight transport needs.
Implement railway structural reforms, including
increasing role of sub-national railway operations increasing separation of infrastructure and above rail operations.
encourage public and private sector investment increase competition in the railway sector and increase transport efficiency.
Key Demand Drivers on Java Economic growth is driving rapid growth of transport demands for both passengers and freight High density of population strongly favors railway passenger services. But, the economic geography of Java short distances between markets and near proximity of lower-cost water transport for minerals & other bulky goods limits the normal role of railway freight services.
Key Driving Forces The economic geography– short distances between markets and near proximity of lower-cost water transport for minerals & other bulky goods– limits the normal role of railway freight services. => but expansion of transport capacity, especially in the highways sector, is constrained by difficulties in acquisition of rights of way. => Capacity constraints and congestion will increasingly impinge on economic growth, unless railway capacity and service quality can be enhanced.
Key Driving Forces The economic geography limits the normal role of railway freight services=> but expansion of capacity in the highways sector is constrained by acquisition of rights of way. High density of population strongly favors railway passenger services. => Technological modernization of railways to meet large increases in demand for passenger services also creates important economies of scopefor expanding capacity and improving railway freight services at very low cost
Regulatory Environment Is an Important Element of the Plan
Law 23/2007 requires that private freight operations have equal and fair access to the national railway infrastructure
This will require separation of infrastructure from direct control of PT KA and development of an access regime that provides fair access and access pricing for all operators
It also requires regulation governing licensing of private rail operators and chartering of new railway lines
Freight Traffic Freight Ton-kilometers 20,000 6,000 Java Java Sumatra Sumatra 17,500 5,000 15,000 4,000 12,500 billions Million Tons 10,000 3,000 7,500 2,000 5,000 1,000 2,500 0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Development of Rail Freight Services Capabilities is an Important Part of the Railway Master Plan
Rail freight market shares have been declining for decades
Regulatory Changes are Insufficient to Grow Freight Traffic – New Investment is Needed
Replacement cost for the existing freight wagon fleet is more than US$330 million
Replacement cost for the existing locomotive fleet is about US$850 million
Total rail equipment replacement costs are more than US$5 billion
Much of the existing fleet is obsolete and needs replacement in the next decade
The Current Infrastructure is Inadequate for Freight Services Axle loadings are limited to a maximum of 18 tons – providing a maximum of 50 tons of lading per wagon Many lines have lower axle loadings – 13 tons or less – providing a maximum net load of 30 tons or less per freight wagon These limitations also extend to the locomotive fleet – limiting the power of locomotives and the maximum sizes of trains The current infrastructure constrains the development of the Java rail freight market – trains don’t carry much more than trucks, sometimes less
Infrastructure Enhancement is a Major Recommendation for the Rail Master Plan Moving axle loads to 25 tons on the main lines – wagon carrying capacity to 77 tons Increasing physical clearances to 6.1 meters eventually Recommended Infrastructure Standards Include: R60 continuously welded rail Concrete sleepers at 1,660/kilometer 300 mm hard rock ballast Electronic signaling Bridges sufficient for 25 tons/axle loading at track speed
Proposed Infrastructure Enhancements Will Transform Rail Operations
High-Speed passenger trains proposed on the north island coast line
150-kph max speed services Hourly departures, half-hourly in peak periods
Higher-speed passenger services on the Bandung – Yogyakarta line – perhaps using tilt-trains
Increased frequency Bi-level equipment for greater capacity
Capacity enhancements will allow more, larger, heavier, and faster freight services
Freight Success May Depend on Specialized Terminals Specialized terminals for warehousing and logistics services include Containers Oil and bulk liquids Steel, other industrial materials Coal terminals Manufacturing, automobiles
Specialized Terminals and Freight Rolling Stock Increasingly Private Sector Responsibility
High capital needs for infrastructure and passenger services
Means a larger role for private investment in railway facilities
New law allows and encourages private investment in rail sector
Freight wagons Specialized terminals and terminal operations Rail operators using PT KA locos, drivers Warehousing and logistics services Rail operations role possible in the future
PT KA must implement accounting separation of railway services and infrastructure accounts
More rigorous accounting standards to identify infrastructure, passenger, and freight operating costs
PT KA likely to separate into at least two divisions
Infrastructure Services Unit: Maintain and operate railway infrastructure, including day-to-day maintenance, dispatching, under contract with DGR Rail Operations Unit: To assemble and operate trains, operate stations and terminals, provide locomotives, drivers, and operations management infrastructure Rail Operations Unit may further separate into freight and passenger divisions
PT KA will no longer have monopoly on operations but will be able to provide operations services to private railways
Possible Rail Sector Structure in Indonesia Transport Policy Economic regulation Accident Investigation Technical Regulation & Standards, PSO, Access Charges Access terms (network statement, capacity allocation)