Indonesia railways in international perspective


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Indonesia railways in international perspective

  1. 1. <ul><li>Indonesia Railways in International Perspective </li></ul><ul><li>HWTSK, Inc </li></ul>An Outsider’s Assessment
  2. 2. <ul><li>Better Than We Expected </li></ul><ul><li>Reports from many sources let us to believe: </li></ul><ul><ul><li>The railway was in poor condition </li></ul></ul><ul><ul><li>Had poor discipline </li></ul></ul><ul><ul><li>Was unsafe </li></ul></ul><ul><li>We inspected the railway in a series of visits </li></ul><ul><li>We benchmarked some Indonesian Railway measures. against similar railways </li></ul><ul><li>The Indonesian Railway is much better than we expected. </li></ul><ul><li>But there is room for improvement </li></ul>
  3. 3. <ul><li>Limited Interaction with PTKA Until Recently </li></ul><ul><li>In the following pages, we will look at some very general benchmarking data </li></ul><ul><li>Then, we will correlate that data with our observations </li></ul><ul><li>This correlation provides a preliminary assessment of the railway from an outsider’s perspective </li></ul><ul><li>Caution is always in order when comparing railways: Our analysis does not compare PT KA to the very large railways with different track gages </li></ul><ul><li>Our analysis’s purpose is simply to get a general idea of how PT KA compares to other, somewhat similar railways </li></ul>
  4. 4. <ul><li>We selected similar railways for comparison. These railways are meter or Cape gauge (same as Indonesia) </li></ul><ul><li>At nearly 4,700 kilometers long, PT KA is typical of the other meter gauge railways </li></ul>Size of Rail Network
  5. 5. <ul><li>Employment </li></ul><ul><li>PT KA employment levels are generally consistent with other railways of its size - productivity measures are more interesting. </li></ul>
  6. 6. <ul><li>Work Performed: Narrow Gauge </li></ul><ul><li>Some narrow gauge railways perform much more work (passenger kilometers + freight tonne-kilometers). PT KA is lightly used. </li></ul>
  7. 7. <ul><li>Network Productivity </li></ul><ul><li>Some narrow gauge networks are highly productive – EFVM because of iron-ore, Japan’s railways because of high density passenger services </li></ul>
  8. 8. <ul><li>Employee Productivity </li></ul><ul><li>Network density helps employee productivity measures – here EFVM and South Africa in freight transport, but Japan in passenger transport </li></ul>
  9. 9. <ul><li>Employee Productivity </li></ul><ul><li>PT KA relatively low network density reduces employee productivity as measured by network kilometers per employee </li></ul>
  10. 10. <ul><li>Motive Power Productivity </li></ul><ul><li>PT KA’s locomotive and power unit fleet is relatively productive </li></ul><ul><li>Dense infrastructure (signals, Catenary) or high axle loads help EFVM and Japan achieve high motive power unit productivity </li></ul>
  11. 11. <ul><li>Freight Wagon Fleet Productivity </li></ul><ul><li>PT KA’s wagon fleet is moderately productive - limited by light axle loads. </li></ul><ul><li>Railways with more productive freight wagon fleets have higher axle loadings. </li></ul>
  12. 12. <ul><li>Passenger Vehicle Fleet Productivity </li></ul><ul><li>PT KA’s passenger vehicle fleet is productive, even comparing it to Japan </li></ul><ul><li>A high proportion of urban transport trips helps increase PT KA passenger vehicle fleet productivity </li></ul>
  13. 13. <ul><li>Passenger Fares </li></ul><ul><li>PT KA’s average passenger fares are low, even compared to China. </li></ul>
  14. 14. <ul><li>Freight Charges </li></ul><ul><li>PT KA’s average freight tariffs are relatively high </li></ul>
  15. 15. <ul><li>PT KA has been focused on passenger transport </li></ul><ul><li>Passenger services appear to be relatively productive but efforts to increase revenue density of trains (Rupiah/train path) should be considered </li></ul><ul><li>Low axle loads and short train lengths are fine for passenger traffic but a hindrance to freight transport in its markets </li></ul><ul><ul><li>Geography of Indonesia limits length-of-haul </li></ul></ul><ul><ul><li>Current limitations make freight less competitive </li></ul></ul><ul><ul><li>Freight and passenger markets in Java very competitive for road, air and sea transport, making it difficult to increase freight market share </li></ul></ul>
  16. 16. <ul><li>Investment should be focused on limitations </li></ul><ul><li>While the infrastructure is in good condition, speeds can be increased </li></ul><ul><ul><li>More precision in track maintenance equipment can improve line and surface </li></ul></ul><ul><ul><li>New signal systems can improve capacity and permit higher speeds </li></ul></ul><ul><ul><li>These investments can provide better financial returns than double tracking </li></ul></ul><ul><li>Low axle loads and short train lengths are OK for passenger traffic but a hinder freight transport in PT KA markets </li></ul><ul><ul><li>Short potential haul lengths require high productivity from the railway – fast service or heavier loading, or both </li></ul></ul><ul><ul><li>Freight and passenger markets in Java very competitive for road, air and sea transport, making it difficult to increase freight market share </li></ul></ul><ul><li>A long term plan to increase axle loading capacity and reduce the tare weight of freight wagons can help make freight more competitive </li></ul>
  17. 17. Some Preliminary Conclusions <ul><li>Scrap old rolling stock. other materials. and facilities that are uneconomic to operate – they clog the network, represent idle money, and send a poor message to employees and customers </li></ul><ul><li>Invest in modern track maintenance machinery – not only for labor savings but also for increasing materials’ lives, and for improved commercial capabilities and line capacity the better track offers </li></ul><ul><li>Invest for the long term, e.g. in higher axleloads </li></ul><ul><li>Investigate international practices more fully </li></ul><ul><ul><li>Given PTK’s axle load limits, low-tare high-capacity wagons are more commercially viable even if these wagons cost a premium price </li></ul></ul><ul><ul><li>Develop more detailed specifications for technology investments to ensure inter-operability and maintainability and to reduce spares requirements </li></ul></ul><ul><li>Simplify the organization structure to streamline decision making – too many parties involved in decisions, too many layers of HQ, regional, and local organizations </li></ul><ul><li>Think “where you want to be”, not “where you are.” </li></ul>
  18. 18. <ul><li>Thank you! </li></ul>