MRT System Procurement and Maintenance:

Philippine Experience

Rommel C. Gavieta MA (URP), MSc (Eng)

Metro Rail Transit Line-3 Project Adviser
York Center for Asian Research, York University

Metro Manila Background Information

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-within2014#ixzz35kflDDX7)

Metro Manila Key Indicators

Proposed JICA Mega Manila

Rail Transit Development Plan (2015-2030)

Existing Metro Manila LRT/MRT and Rail Lines

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

Global LRT Maintenance Benchmarks

Key Performance Indicators

by MTR (Hong Kong) and Comet

Trend Towards Single Point of Responsibility under

Total Cost of Ownership Procurement Model
Total Cost of Ownership
(Maintenance done by Alstom)

Total Cost of Ownership

MRT3 Project Philippines

11% 2%
14%
16%

57%

Personnel (Operation)

Maintenance

Debt Repayment

Project cost

Equity Rental Repayment

Philippine LRT Maintenance Benchmarks

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 (Private Sectr Procurement)

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 (Public Sector Procurement)

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.
CNR has not produced Electric and double articulated Light Rail
Vehicles and delivered only diesel locomotives to MTR

Total Cost Of Operation/Acquisition

and Declining Ridership as a Result of Public Sector
Procurement of Maintenance Services

9,000,000,000.00

120.00

8,000,000,000.00
100.00
7,000,000,000.00
6,000,000,000.00

80.00

5,000,000,000.00
60.00
4,000,000,000.00
3,000,000,000.00

40.00

2,000,000,000.00
20.00
1,000,000,000.00
-

2000

2001

2002

2003

2005

2007

2008

2009

2010

2011

2012

Personnel Services

Maintenance and Other Maintenance Services

Equity Rental Payment

Debt payment (estimate)

Farebox Revenue

Subsidy

Subsidy per passenger

2013

2014

Indicative trend of
effect of shift from a
privately
administered
maintenance
service. to a publicly
administered
maintenance service

Design Capacity and Operating Capacity

South East Asian Comparison

Comparison of Private Sector and Public Sector

Procurement of Maintenance Service

Sumitomo Corp.
2000-2012
Terms of

Actual

PH Trams
2012
TOR was

Actual

APT Global
2012-2014
TOR and lately

Actual

Reference (TOR)
annunced as

revised under a

similar tom the

memo from

original TOR
60 cars
none

Performance
NA
canibalization of
parts
completed
required but not None
practical
implementation
undertaking
350,000
550,000
350,000
450,000

DOTC Usec Lotilla Performance

54 cars
40 cars
none
canibalization of
parts
required but not None
practical
implementation
350,000
430,000

LESS THAN 5 INCIDENCE OF

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

GREATER THAN 5 INCIDENCES OF

REVENUE SERVICE INTERRUPTION A
YEAR THAT IS GREATER THAN 5MINUTES

GREATER THAN 5 INCIDENCES OF

REVENUE SERVICE INTERRUPTION A
YEAR THAT IS GREATER THAN 5MINUTES

defined under the

Build, Lease and
Transfer (BLT)
Availability
Part
Overhauling

Ridership
COMET
Bencjmark for
reliability

Agreement OR
60 cars
6-month spare
part inventory
required

Performance
60 cars
yes

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

Recognition of Current Framework for Procurement

Practice of Rail Systems and Rolling Stock

Public Sector Current Practice

Proposed Action Moving Forward

Disconnected Procurement and O&M Policy

Recommendation
Harmonized procurement and O&M Policy
Adopt strategic decisions about rolling stock
procurement and specification should be taken
centrally. This critical 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

Current Level of
Awareness

Technical Strategy Leadership group; The Future Railway; 2012 UK

The Future and Recommendation

Traditional Procurement of an Urban Transit System

and Maintenance Works of an Urban Transit System

Market Demand

Concession Framework or Public Sector Administered

Customer Needs
and Expectations

PPP

Contractor and Supplier

ODA

PPP

Procurement
Group

Specifications Rail
System and NonRail System

Porcurement of

Concession Framework or Public Sector Administered

ODA

Procurement
Group

Piecemeal Procuremnt of Sub-components of an Urban

Rail Transit System

Specifications Rail
System and NonRail System

EPC Contractor

Regular
Maintenance
Works

Procurement of
Rolling Stock

LRV Manufacturers

Refurbishment
Works

Procurement of
Elctromechnical
Systems

Electromechanical

Upgrades and
Expansion of
Capacities

Civil Works

Suppliers

Proposed Procurement of an Urban Transit System

and Maintenance Works of an Urban Transit System

Market Demand

Concession Framework or Public Sector Administered

Framework

Customer Needs
and Expectations

PPP

Contractor and
Supplier

Concession Framework or Public Sector Administered

Framework

ODA

PPP

Procurement
Group

Procurement
Group

Specifications Rail

Single Point of

System and Non-

Responsibility

Rail System

Contracting Works

Porcurement of

ODA

Single Point of
Reeeeponsibility
Maintenance
Works

Specifications Rail
System and NonRail System

EPC Contractor

Regular
Maintenance
Works

Procurement of
Rolling Stock

LRV Manufacturers

Refurbishment
Works

Procurement of
Elctromechnical
Systems

Electromechanical

Upgrades and
Expansion of
Capacities

Civil Works

Suppliers

Possible Courses of Action

Procurement of Equipment and Maintenance for a Metro Manila System with a

45 km trackworks and with a ridership of 1.25million a day:

Centralized procurement with a single point of responsibility contractual

entity of rail equipment to achievement procurement leverage

Decentralized procurement with a single point of responsibility for regular

maintenance works, refurbishment works and warranties such as availability
requirements and COMET reliability benchmarks.

Contractual Risks

Public sectors creeping expropriation of existing concessions agreements

remains strong in the South East Asian infrastructure sector.
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Thank you for your time and patience

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Key Customer Needs Related to the

Maintenance of Urban Rail Transit Systems

Rolling Stock and Track Maintenance Corelationship

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.)

Metro Manila Key Indicators

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)

Proposed Metro Manila LRT/MRT and Rail Lines

Proposed Lines (JICA):

Primary Lines:
1. PNR rehabilitation or LRT5 (PhP25b MalolosCalamba), (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)

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6

Key Customer Needs Related to the

Maintenance of Urban Rail Transit Systems

Rolling Stock and Track Maintenance Corelationship

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.)

Modified Predictive Maintenance Framework

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-AgingRolling-Stock-Fleet.pdf)

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