Global rail opportunities- Atkins March 2014


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Findings from Frost & Sullivan Rail Practice featured on the Atkins global rail opportunities 6th March 2014!!

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Global rail opportunities- Atkins March 2014

  1. 1. Global rail opportunities 6 March 2014
  2. 2. Douglas McCormick Managing director, Rail (UK)
  3. 3. Agenda 3 • Safety • Worldwide rail market • Regional review − UK and Europe − Middle East − Asia Pacific − North America • Summary
  4. 4. Safety leadership, culture and engagement “Nothing is more urgent or important than safety and security at the workplace and on our project sites. Don’t hesitate for a second to tell a manager or act yourself if you think it is unsafe. Always ensure the safety of yourself, your colleagues and of the people whose lives and environments we touch.” Uwe Krueger
  5. 5. Worldwide rail markets 5 Region CAGR (%) Rail type (forward looking) Europe (Western including UK, and Eastern) 1.9 (Western Europe) and 3.2 (East Europe) Western Europe: High speed, and freight (enhancements/ upgrades). Eastern Europe: Mainline, light rail, and freight (enhancements/ upgrades). North America 2.8 Freight and light rail/metro (enhancements/upgrades) Asia-Pacific 1.9 High speed and metro/light rail (new build) Middle East (including Africa) 8.1 Metro, light rail, freight, high speed (new build) Latin America 7.0 Freight, monorail/light rail (new build, upgrades). Source: UNIFE, 2012. Projected 2017 market 39 22 23 6 5 Accessible market £95bn Europe North America Asia Pacific Middle East Latin America Market drivers • urbanisation • environmental concerns • technological advances − automation − electrification − communications − design tools.
  6. 6. Our international presence and resources 6 Atkins’ USP • High technical capability • Complex projects • High margin consultancy • World class portfolio • Transferrable skills and expertise.
  7. 7. Rail is our most significant sector 7 17% 18% 14% 11% 8% 8% 7% 7% 2% 8% Roads Rail (including mass transit/metro) Energy Water/environment Defence security Buildings - commercial/residential Urban development Aerospace/aviation Education Other Atkins’ revenue by end market (FY13) NB excluding UK Highways services business
  8. 8. Atkins’ capabilities – across the infrastructure life cycle 8 Asset management Procurement of services and site supervision Project management Design Project planning Consultancy technical services Industry navigator Scheme identification and feasibility Policy and standards advice • Atkins has a strong brand and reputation • We can leverage our Group resource and skillbase • Local delivery is supported by our international expertise • Strategic partnerships with clients, contractors and manufacturers.
  9. 9. Atkins’ rail value-volume pyramid 9 Volume Value Margin Service offering • Business advisory, strategy and financial planning including lenders technical advisor • Economic feasibility and options analysis • Preliminary design, planning and high-level modelling strategic asset management safety, regulatory, standards and governance services • Project management consultancy and programme management • Rail infrastructure design (civils) • Rail systems design • Passenger systems design and implementation • Programme detailed specification • Service/design verification, assurance. Mgmt & strategy consultancy Planning, engineering, technical consultancy Engineering, assurance implementation and operations services
  10. 10. Key rail competitors 10
  11. 11. UK and Europe
  12. 12. UK and Europe – rail market 12 • CP5 in UK, Network Rail’s business plan (2014-19) for £38bn of spend • Annual Scandinavian rail investment around £4bn of which consulting services account for c8% Scale Dynamics • Renewals and enhancements • Train control systems • Electrification • Stations • Major investment programmes eg HS2, Crossrail 2.
  13. 13. Atkins’ profile in UK and Europe 13 • Consultancy leadership • Complete design spectrum across rail • Engineering design and implementation in signalling and communications • High technical competencies • Scalability/capacity/complexity • Strong brand • Investment in innovation and technology capabilities • Supporting international growth. Capabilities USP Future
  14. 14. Stafford Area Improvements Programme Steve Higham, Atkins managing director, rail engineering projects
  15. 15. Stafford Alliance 15 The problem • Major bottleneck on West Coast Main Line • Infrastructure prone to failure • Speed limitations over 30 miles The alliance team: The solution • £250m programme of works including: • Line-speed improvements • Re-signalling • Elevated rail junction.
  16. 16. Stafford Alliance 16 Project scope • First rail industry alliance contract – future direction of travel in UK • 10km new track and electrification • 12 new bridges • 4 river diversions • 80 new signal structures Why Atkins? • Shortlisted from 50, tender won against four alliances • Tender award based on 30% price, 70% technical and behavioural • Our multi-functional design and engineering capability • Delivered from UK and our Indian offices.
  17. 17. Middle East Julian Hill, managing director, Rail (Middle East)
  18. 18. Middle East – rail market 18 • Investing £70bn in rail projects through to 2020, with Saudi Arabia, Qatar and UAE representing the biggest markets (Frost & Sullivan) • Qatar offers opportunities for UK companies with £140bn infrastructure forecast spend over the next 10 years (UKTI, July 2013) • Urbanisation key driver – metro demand • Minimal local technical competence – international expertise needed • Freight railways linking critical mining/ manufacturing areas with ports/airports across the Middle East • Design and build procurement strategy for new build metro systems • Religious tourism is the driver around Makkah and Medina. Scale Dynamics
  19. 19. Atkins’ profile in the Middle East 19 Capabilities USP Future • Team of multidisciplinary metro experts each with 20+ years experience in complex design and build metro systems • Proven value engineering at the tender stage • Chosen design partner for international contractors • Core resources based in region – client facing • Strong brand, substantial credibility, proven delivery • Global design centre – capacity and capability to deliver major rail projects • Huge pipeline of metro opportunities – our focus in Saudi Arabia, Qatar and United Arab Emirates • Intermodal transport networks • Diversification into systems and project management consultancy.
  20. 20. Pre-eminent position in the rail market
  21. 21. Dubai Metro Lusail LRTAl Mashaaer Metro Riyadh Metro Package 3 Doha metro systems/depots Dubai metro extensions Makkah city metro Doha metro red line south Abu Dhabi metro Future major rail projects Past/current major rail projects Working with international contractors
  22. 22. Future Middle East metro opportunities • Depot and stabling yard for 90 train sets • Rail systems & rolling stock for phase 1 of Doha metro – 38 stations and 84 km of track • 33km track • 26 stations (at-grade) • 7 stations (underground) • 1 depot, maintenance/storage facility & test track 2.6 bn 4-6 bn 1.8 bn Capital cost (£) Doha metro depot & systems Doha metro gold line Lusail LRT • 14 stations • Pedestrian subways and entrance pods • 14km of twin bored tunnels • Switch boxes / cross passages
  23. 23. Future Middle East metro opportunities • Phase 1 comprises 18km track • 4 underground stations • 8 elevated stations Phase 1 • Two Civil works packages • 23km of tunnel and 9 underground stations • 20km of viaduct, 10 elevated stations and 1 depot • Metro phase 1,2,3 • 152km track • 92 stations 2.6 bn 4.0 bn 10.6bn Abu Dhabi metro Makkah metro civil works Jeddah metro Capital cost (£)
  24. 24. Asia Pacific
  25. 25. Asia Pacific – rail market 25 • By 2020 the urban rail market across Asia Pacific is expected to grow to £60bn (CAGR 5.6%)* • Relatively mature rail consultancy market • New build metro and light rail in highest demand • Major rail infrastructure programmes starting in Malaysia and Vietnam • Ongoing rail infrastructure development in Singapore. Scale Dynamics * Frost & Sullivan, 2013
  26. 26. Atkins’ profile in Asia Pacific 26 • Analysis, design and detailing of internal tunnel works for Hong Kong’s rail network • Delivering multidisciplinary services including stations, tunnels and viaducts • Transport orientated design • Strong brand associated with quality and efficiency • Ability to bring international best practice • Complexity • Partnering with local companies in South East Asia • Broader geographic footprint • Working with Chinese contractors. Capabilities USP Future
  27. 27. Core capability – rail infrastructure 27 Atkins has held lead design roles on the four major rail projects in Hong Kong: • Express rail link to mainland China • West Island line extension • South Island line • Shatin central link Work includes: stations, tunnels, viaducts and significant utility and highway diversions We are undertaking a feasibility study for the South Island line west which will start a new phase of metro development.
  28. 28. Atkins’ role in Hong Kong’s current rail network expansion 28
  29. 29. 29 North America
  30. 30. North America – rail market 30 • By 2020 US rail transit market expected to grow towards £44bn* pa in capital expenditure, including over £6.5bn* in engineering services • By 2017 approx. £22bn* will be accessible to European companies (around 50% of the market) Scale Dynamics * Frost & Sullivan, 2013 • Mature market for engineering design consultancies • PPP potential funding model given public funding constraints.
  31. 31. Atkins’ profile in North America 31 • Access to worldwide skills base, particularly in specialist engineering services • Level of local knowledge • Asset management Capabilities USP Future • Emerging brand image • Leveraging Group capabilities particularly in brownfield projects • Targeting advisory roles and technology use as a differentiator rather than a more commoditised role • Developing metro market – urbanisation driver • Focusing on key states/regions.
  32. 32. Summary 32 Highly differentiated business with good growth and attractive margins • Well positioned with strong market share in UK, and good exposure to stable Scandinavian markets • Significant pipeline of Middle East metro opportunities – our focus in Saudi Arabia, Qatar and United Arab Emirates • Expansion into South East Asia from historic MTRC client base in Hong Kong • North America – future growth potential, particularly in brownfield projects • Ability to leverage Group capabilities.
  33. 33. Disclaimer 33 The information in this presentation pack, which does not purport to be comprehensive, has been provided by Atkins and has not been independently verified. While this information has been prepared in good faith, no representation or warranty, express or implied, is or will be made and no responsibility or liability is or will be accepted by Atkins as to or in relation to the accuracy or completeness of this presentation pack or any other written or oral information made available as part of the presentation and any such liability is expressly disclaimed. Further, whilst Atkins may subsequently update the information made available in this presentation, we expressly disclaim any obligation to do so. The presentation contains indications of likely future developments and other forward-looking statements that are subject to risk factors associated with, among other things, the economic and business circumstances occurring from time to time in the countries, sectors and business segments in which the Group operates. These and other factors could adversely affect the Group’s results, strategy and prospects. Forward-looking statements involve risks, uncertainties and assumptions. They relate to events and/or depend on circumstances in the future which could cause actual results and outcomes to differ materially from those currently expected. No obligation is assumed to update any forward-looking statements, whether as a result of new information, future events or otherwise.