Philippine Experience:

Rolling Stock Fleet Procurement and Maintenance

Rommel C. Gavieta MA (URP), MSc (Eng)
Metro Rail Transit Holdings Inc
Asia Rail Summit 2014
Shangrila Hotel Bangkok, Thaiiand
Metro Manila as a Mega-City and Traffic Congestion
21 mega-cities are in Asia out of 36 mega-cities (2012)
Metro Manila is second to Tokyo with 70% of the population taking public transportation.
(http://ncts.upd.edu.ph/old/research/docs/research/papers/tiglao-EASTS2007-02.pdf)

Jica experts has said that Philippine the government would need to invest P2.3 trillion through
2030 to overhaul transportation infrastructure in Metro Manila.

It estimated that about P2.4 billion in potential income was being lost daily due to congestion
at the capitals roads and railways.
(http://www.jica.go.jp/philippine/english/office/topics/news/130801.html and
http://business.inquirer.net/158419/jicas-expanded-mass-transport-study-seen-out-within-
2014#ixzz35kflDDX7)
Metro Manila as a Mega-City
































http://www.forbes.com/sites/davidferris/2012/08/31/the-stark-environmental-challenge-of-
asias-megacities/2/
Proposed Metro Manila LRT/MRT and Rail Lines
Proposed Lines (JICA):

Primary Lines:
1. PNR rehabilitation or LRT5 (PhP25b Malolos-
Calamba), (LRT5)
2. MRT4 and MRT7 (Recto to Banaba PhP180billion),
3. Mega-Manila Subway (550billion)
4. Baclaran-Bacoor or LRT6 (PhP60billion PPP
awarded)

Secondary:
4. Ortigas-Angono (PhP32b),
5. Marikina-Katipunan (PhP32b),
6. Alabang-Zapote (PhP27b)
7. Zapote-General Tias (PhP26b)





1

2

5

4
Matching Design Capacity with
Appropriate Types of Rolling Stocks

Seven generic types of train:
Shorter Distance Self-Powered (diesel,
generally with 75 mph maximum speed);
Middle Distance Self-Powered (diesel, with 90/
100 mph capability);
Long Distance Self-Powered (diesel, with 100/
110/ 125 mph capability);
Shorter Distance Electric (generally with 75
mph maximum speed);
Middle Distance Electric (with 90/ 100/ 110
mph capability. Some future trains may require
125 mph capability);
Long Distance Electric (with 100/ 110/ 125 mph
capability);
Very High Speed Electric (140 mph and above,
for domestic services on HS1 and HS2).

(ATOC; Long Term Passenger Rolling Stock
Strategy for the Rail Industry; Feb 2013)

Existing Metro Manila LRT/MRT and Rail Lines
6
Existing LRT/MRT and PNR Lines
Capacities LRT/MRT and PNR Lines
LRT1: 15km competed 1985 (street cars operating as LRTs)
430,000 passengers a day
139 cars operating only 80 cars
550,000 passenger a day design capacity

LRT2: 14Km completed 2008 (MRT operating as LRT)
250,000 passengers a day
72 cars operating only 43 cars
360,000 passenger a day design capacity

MRT3: 16km completed 2000 (street cars operating as MRT)
450,000 passengers a day
70 cars operating 40 cars
350,000 passenger design capacity

PNR: 56 km Urban Line
100,000 passengers a day in a traffic corridor that carries
approximately 1.0million commuters a day.
18 cars and 56km

Benchmarking against Globally Accepted
Reliability Norms in Rail Revenue Service













MTR Hong Kong Train Reliability: train car-km per
train failure causing delays 5 minutes

Rolling Stock and Track Maintenance Co-
relationship
Strong mutual dependency and interference
of wear and tear of key assets (rolling stock
and infrastructure) this does not hold true
for gas and water, telecom and electricity, or
air transport

The cost and quality of train operations
depend on the condition of the tracks
(high maintenance requirement for rolling
stock, low maximum speed, etc. if tracks
are in bad condition)

The cost of infrastructure maintenance
depends on the condition and operation
of rolling stock (high wear and tear of
tracks if wheels are uneven, speed is
high, braking is strong, etc.)
Design Capacity and Operating Capacity
LRT1 Rolling Stock Fleet
(3 types and another type to be delivered approx. 2016 owned and
procured by public sector which was just recently privatized)
LRT1 1st generation LRVs
Delivered in 1984 from Belgium and refurbished in 2004
63-units,
Only 37-units are operational.
Maintenance Service only
Parts and Refurbishment are subject to annual appropriation risks

Based on DOTC's bid documents for the LRT1 South Extension Project (LRT1)








LRT1 2nd generation LRVs
Delivered in 1999 from AdTranz manufactured in Korea
28-units,
Only 8-units are operational.
Maintenance Service only
Parts and Refurbishment are subject to annual appropriation risks








LRT1 3
rd
generation LRVs
Delivered in 2007 from Japan
48-units
Only 44-units are operational
Maintenance Service only
Parts and Refurbishment are subject to annual appropriation risk
MRT Rolling Stock Fleet
(73 procured by private sector owner and 48 procured by public sector
operator subject to consent of private sector owner)








MRT3
73-cars from CKD procured by the Private Owners of the Assset
Reliability Centric maintenance service by Sumitomo
Corporation from Completion Date (2000) to 2012 with a
guaranteed availability of 60 cars, spare part inventory and
refurbishment requirement.
Service centric maintenance service by local company with no
spare part inventory requirement and no refurbishment
commitment










MRT3
48 cars from CNR procurement by operator
Deployment for revenue service requires the consent of the
owner of the MRT3 Asset and may pay trackage fees to alleviate
capacity congestion.
MRT3 Phase 1
Comparative Maintenance Administration
2000 - 2012: MRTC-Sumitomo
Corp. (TES-P)
2012 - 2013: DOTC-Metrostar-PH
Trams
2014 - onwards: Foreign Direct
Investor (FDI)
Phase 1
80% guaranteed availability of cars
or 60 rail cars available everyday
450,000 riders a day at 30% over
design capacity
Maintenance Provider was
Sumitomo and Bombardier
(Subcontractor Signalling)
Maintenance fee at US$1.2million
to US$ 1.4mn for parts, service and
refurbishment on 7
th
year
Phase 1
54% availability of cars or 40 rail
cars available everyday.
450,000 riders a day at crush
capacity
Maintenance Provider is PH Trams
Maintenance fee at US$ 1.2mn
service ONLY w/o parts and
refurbishment on 7
th
year.
Phase 1
90% guaranteed availability or 152
rail cars available everyday
4-car train & 2 minute interval
service
770,000 riders a day design
capacity
Maintenance with refurbishment
on 7
th
year.

LESS THAN 5 INCIDENCE OF
REVENUE SERVICE INTERRUPTION
A YEAR THAT IS GREATER THAN 5-
MINUTES

GREATER THAN 5 INCIDENCES OF
REVENUE SERVICE INTERRUPTION A
YEAR THAT IS GREATER THAN 5-
MINUTES

MRT3 Phase 1
Comparative Maintenance Project Benchmarks
2000 - 2012: MRTC-Sumitomo
Corp. (TES-P)
2012 - 2013: DOTC-Metrostar-PH
Trams
2014 - onwards: Foreign Direct
Investor (FDI)
Phase 1
80% guaranteed availability of cars
or 60 rail cars available everyday
450,000 riders a day at 30% over
design capacity
Maintenance Provider was
Sumitomo and Bombardier
(Subcontractor Signalling)
Maintenance fee at US$1.2million
to US$ 1.4mn for parts, service and
refurbishment on 7
th
year
Phase 1
54% availability of cars or 40 rail
cars available everyday.
450,000 riders a day at crush
capacity
Maintenance Provider is PH Trams
Maintenance fee at US$ 1.2mn
service ONLY w/o parts and
refurbishment on 7
th
year.
Phase 1
90% guaranteed availability or 152
rail cars available everyday
4-car train & 2 minute interval
service
770,000 riders a day design
capacity
Maintenance with refurbishment
on 7
th
year.

LESS THAN 5 INCIDENCE OF
REVENUE SERVICE INTERRUPTION
A YEAR THAT IS GREATER THAN 5-
MINUTES

GREATER THAN 5 INCIDENCES OF
REVENUE SERVICE INTERRUPTION A
YEAR THAT IS GREATER THAN 5-
MINUTES

Total subsidy is at least
PhP6.3billion

Total subsidy for the two years is a
total of PhP9.4billion

NO SUBSIDY

Lessons Learned from Public Sector Budget Allocation
2000 to 2013 for MRT3
(Lease Payment, Personnel Services, Maintenance & Other Operating
Expenses Capital Expenditure and Subsidy)
D
O
T
C

O
P
E
X

a
n
d

C
A
P
E
X

b
u
d
g
e
t


(
U
S
$
)

D
O
T
C

M
R
T
3

S
u
b
s
i
d
y

p
e
r

p
a
s
s
e
n
g
e
r

(
U
S
$
)

D
O
T
C

O
P
E
X

a
n
d

C
A
P
E
X

b
u
d
g
e
t

(
U
S
$
)


D
O
T
C

M
R
T
3

S
u
b
s
i
d
y

p
e
r

p
a
s
s
e
n
g
e
r

(
U
S
$
)

Actual O&M 25-year MRT3 Project
Modified ERP and O&M 25-year MRT3 Project
Lessons Learned in LRT1 and MRT3 Maintenance
Regimes and resulting Design Capacity and Actual
Ridership

LRT1 actual ridership is always
below potential design capacity
Public Sector Procurement of
rolling stock
Public Sector Procurement
Maintenance Services Only

MRT3 actual ridership was
higher than design capacity
during private sector
responsibility for procurement of
maintenance services

MRT3 actual ridership fell during
public sector responsibility for
procurement of maintenance
service only.

Indicative trend of
effect of shift from
a privately
administered
maintenance
service. to a
publicly
administered
maintenance
service
Recognition of Current Framework for Procurement
Practice of Rail Systems and Rolling Stock
LRTA Current Practice Proposed Action Moving Forward
Disconnected Procurement and O&M Policy

Recommendation
Harmonized procurement and O&M Policy
It is entirely appropriate that strategic decisions
about rolling stock procurement and
specification should be taken centrally. Given the
level of fragmentation of the sector/industry
(Butcher, L; Railways: rolling stock
Standard Note: SN3146; 31 October 2013; House of
Commons)

Procurement Policy driven specification and lowest
cost

Recommendation:
Procurement Policy that is Performance Standard
centric

Technical Strategy Leadership group; The Future Railway; 2012 UK
Current Level of
Awareness
Understanding Operations and Maintenance Cost
Rules of Thumb
Operation and maintnance represents approximately 80% of the Total Cost of Ownership
(TCO) .

In the case of the MRT3, over the concession period the ratio is 86% O&M and 14% project
cost

In the case of MRT3, the ratio distribution of the maintenance fee is 60% rolling stock and
40% infrastructure

Approximately 60% of maintenance cost are personnel cost and 40% for material and parts

Maintenance cost is the major cost position subject to optimization as energy and
depreciation stay consistent during lifecycle of rolling stock fleet.

(Author own calculation and Wyman, O.; Lean Rolling Stock Maintenance; 2009 oliverwyman

Strategic Framework for Procurement of Rail
Systems and Procurement of Rail O&M Services
Strategic consistency, not short-term
opportunism

If authorities are to deliver the desired
outcomes of transport projects, it is
desirable that they set a long-term
path and then work continuously
towards it.

Strategies and plans need to be fully
worked through by the authorities that
create them.

There is a risk that documents with
titles that include the word strategy
will, in fact, be short-term statements
of intent

(Success and failure in urban transport
infrastructure projects
A study by Glaister, Allport, Brown and Travers
KPMGs Infrastructure Spotlight Report)

Zoeteman, A.; Life Cycle Cost analysis for managing rail
infrastructure; EJTIT, 1, no. 4 (2001), p391-413; The
Netherlands
Limitations and constraints like capital funding, resource availability of plant, parts, operating budgets, time,
support services and workforce skills are realities that directly related to maintenance activities.
(http://www.apta.com/mc/rail/papers/Papers/WeissM-Challenges-of-Matching-Maintenance-Programs-to-an-
Aging-Rolling-Stock-Fleet.pdf)

Reliability Maintenance Framework
process to ensure that assets continue to do what their users require in their present operating context.

Successful implementation of RCM will lead to increase in cost effectiveness, machine uptime, and a greater
understanding of the level of risk that the organization is managing.

Predictive Maintenance Fraework
process designed to help determine the condition of in-service equipment in order to predict when maintenance
should be performed.
This approach promises cost savings over routine or time-based preventive maintenance, because tasks are
performed only when warranted.
The main promise of Predicted Maintenance is to allow convenient scheduling of corrective maintenance, and to
prevent unexpected equipment failures. The key is "the right information in the right time".

Challenges to managing rolling stock at various
stages of their life cycle are real and familiar to
railway operating agencies
Modified Predictive Maintenance Framework
19
There is a continual need to employ a Kaizening* process that confronts and combats
the challenges of common constraints, in order to create adaptive and balanced
maintenance programs, that are justifiably well planned and timely executed.
(http://www.apta.com/mc/rail/papers/Papers/WeissM-Challenges-of-Matching-Maintenance-Programs-to-an-Aging-
Rolling-Stock-Fleet.pdf)


Looking at the Benefits and Moving Forward
What are the benefits to the public first and then to public and private
sectors?

Robust fleet plans aligned with long term business strategies.

Effective vehicle architecture comparisons, enabling optimal fleet selection
for the intended application.

Rolling stock that aligns with the maintenance and operational philosophy
at an optimum cost.

A fleet with known lifecycle costs, capable of delivering a sustainable
service.
(http://www.lr.org/en/rail/rolling-stock/fleet-procurement/index.aspx)

20



Thank you for your time and patience



21