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

1. Global rail opportunities
6 March 2014

2. Douglas McCormick
Managing director, Rail (UK)

3. Agenda
3
• Safety
• Worldwide rail market
• Regional review
− UK and Europe
− Middle East
− Asia Pacific
− North America
• Summary

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. 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. Our international presence and resources
6
Atkins’ USP
• High technical capability
• Complex projects
• High margin consultancy
• World class portfolio
• Transferrable skills and
expertise.

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. 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. 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. Key rail competitors
10

11. UK and Europe

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. 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. Stafford Area Improvements Programme
Steve Higham, Atkins managing director,
rail engineering projects

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. 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. Middle East
Julian Hill, managing director, Rail (Middle East)

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. 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. Pre-eminent position in the rail market

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. 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. 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. Asia Pacific

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. 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. 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. Atkins’ role in Hong Kong’s current
rail network expansion
28

29. 29
North America

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. 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. 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. Disclaimer
33
The information in this presentation pack, which does not purport to be comprehensive, has
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