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A railway bonanza in China: Trouble down the track

January 14th, 2010 | No Comments

China’s love affair with high-speed rail is a boon to foreign suppliers—for now

IN SHARP contrast to the usual smooth collaboration between political and business interests in Hong Kong, thousands of protesters are expected to surround the territory’s legislative council on January 15th. They are hoping to deter the councillors from approving funding for the final 16 miles (26km) of one of the world’s most ambitious infrastructure projects, a high-speed rail network linking one end of China to another. They think it is too expensive, will involve the forced purchase of too much private property and will demolish too much of the territory’s heritage.

The same may be true of the rest of the epic project to expand China’s rail network by nearly 19,000 miles by 2015, 8,000 of which will be tracks for high-speed trains. But the media, at any rate, portray it as a point of national pride and as a huge stimulus to the economy and employment. While Hong Kong grumbles, nothing is allowed to impede this $750 billion civil-engineering juggernaut on the mainland. Indeed, last year it accelerated and, according to Jiong Shao, an analyst with Nomura Securities, the high-speed portion of this network should be finished by 2012, three years early. Urban metro lines will also expand dramatically from 620 miles to 2,800 over the next ten years, as the number of cities boasting such systems doubles from 11 to at least 22. …

Snow buries road, rail links in Europe

January 14th, 2010 | No Comments

Fresh snowfalls heaped further misery on parts of Europe yesterday, closing airports and schools and disrupting road and rail links notably across Britain and France. As overnight snow and plummetting temperatures brought a recent thaw to a halt, British business leaders said the worst winter in

Mobile Broadband Carriers Rail Against Net Neutrality

October 22nd, 2009 | No Comments

Not only is the Federal Communications Commission considering rules that would extend and codify the agency’s network neutrality principles for wireline broadband providers, the FCC is also considering extending those rules to wireless networks. Not surprisingly, the wireless carriers found little to like in the proposal.
– Wireless broadband carriers responded quickly to the FCC’s (Federal Communications Commission) Oct. 22 decision to begin consideration of network neutrality rules that would apply to wireless networks.
Currently, wireless carriers are exempt from the FCC’s four network
neutrality principles and, n…

Britain eyes rail to replace short-haul flights

August 5th, 2009 | No Comments

Britain is aiming to replace short-haul flights with high-speed rail travel in a multi-billion pound plan that is well advanced, the transport minister said on Wednesday. Transport Secretary Andrew Adonis told the Guardian newspaper that plans for a route from London to Britain’s second

Stagecoach eyes National Express

July 27th, 2009 | No Comments

Group opens discussions with private equity firm CVC and large shareholder the Cosmen family about acquiring some National Express businesses in the event of a successful takeover

Stagecoach joined the bidding fray for National Express this morning as it confirmed it is in talks to join a Spanish-led consortium stalking the public transport group.

The Perth-based bus, rail and coach group has opened discussions with private equity firm CVC and the Cosmen family, the largest shareholder in National Express, about acquiring some of the group’s businesses in the event of a successful takeover offer.

“Stagecoach confirms that it is in exclusive discussions with the consortium regarding the possible acquisition by Stagecoach of certain businesses and assets of National Express in the event that the consortium acquires National Express,” said the company. It is believed Stagecoach is interested in the UK rail, bus and coach operations of National Express, although it could combine both companies’ US bus operations as well.

National Express confirmed this afternoon that it is considering the cash offer from the Cosmen consortium. It said the proposal was subject to several preconditions, including that National Express continues running the East Anglia and c2c rail franchises. Some MPs have called for the company to lose both franchises following its decision to abandon the east coast main line.

National Express also said it would “seek to clarify the status of Stagecoach’s discussions”, to see whether it would help the consortium achieve its aim.

It is understood that the National Express executive chairman, John Devaney, is minded to concentrate on restoring the debt-laden group’s financial health rather than accept a bid to take it private. Investors, though, may put pressure on directors to accept a proposal that reportedly values National Express at 400p a share â€“ or just over Â£600m.

Stagecoach added that it will consider “all other options” regarding National Express, having appointed Deutsche Bank to advise on a potential all-share offer for the group.

National Express has become a takeover target after building up debts of Â£1.2bn that are threatening to breach loan covenants. A row with the government over its Â£1.4bn east coast rail franchise, which it expects to abandon later this year, has also weakened its hand strategically after the transport secretary, Lord Adonis, pledged to bar National Express from bidding for rail contracts in the future. Devaney has also launched the process to recruit a new boss following the surprise resignation of Richard Bowker, National Express chief executive, on the eve of the announcement that the group is stepping away from its east coast contract.

Some analysts argue that the east coast row could make the group a more attractive takeover target because without the onerous London-to-Edinburgh contract the business generates strong profits. According to research by Astaire Securities, National Express will generate cash flow of about Â£150m a year if it loses its rail franchises. Lord Adonis is determined to strip the company of its c2c and National Express East Anglia contracts if it abandons the east coast contract. National Express wants to retain its remaining contracts, which produce healthy profits, and is willing to take the dispute to the high court. The dispute is expected to loom over any takeover battle for the group, whose shares rose 4.7% to 362p this morning, valuing National Express at Â£529m.

guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds

MPs attack rail firms for raising fares

July 27th, 2009 | No Comments

Rail passengers have seen fares increase during the recession because of a “perverse” franchise system that takes consumers for granted, a critical report by MPs says today.

Privately owned rail franchises have increased ticket prices by up to 11% on some routes at the worst possible time, according to the House of Commons transport committee, potentially causing long-term damage to the relationship between train operators and commuters.

The report is published as the government fights to restore credibility to the franchise system following the announcement that the UK’s biggest rail contract, National Express east coast, will be nationalised. “A short-term approach and insensitive attitude towards passengers will damage train operators’ relationships with their customers in the long-term,” the committee says. “The system encourages and allows train operators to take their passengers for granted.”

Under the franchising system, companies bid for the right to run trains on routes such as the Great Western or east coast main lines.

The contracts are often awarded to the train operator that offers the highest premium payments or, if the route requires heavy subsidies to be profitable, to the company that requires the lowest level of state backing.

But the recession forced train operators to impose the highest possible fare increases in January. Regulated rail fares, which account for 60% of journeys including all season tickets, rose by an average of 6% this year despite negative inflation.

“Train operating companies have taken advantage of the mechanism to raise fares at the worst possible moment and to a level which is out of all proportion to the real economy,” the committee says. The transport secretary, Lord Adonis, said the report backed the government’s fares policy, with price increases on season tickets and some off-peak fares limited to no more than 1% above inflation.

Those fares are expected to fall next year because the retail price index for July, which will be used when ticket prices are set for 2010, is forecast to be negative. “I pledge that the government will stick to this policy, which is likely to lead to most rail fares falling in January,” said Adonis.

The Association of Train Operating Companies criticised the report, saying that MPs had attacked a system that now runs over 20,000 services a day with record levels of satisfaction and punctuality. It also rejected the committee’s claim that passengers have been treated shoddily following the imposition of fare hikes earlier this year.

“Over 80% of passengers travel on discounted tickets. Train companies work hard to give passengers accurate advice on the best value fares.”

guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds

Governors Holding Midwest High Speed Rail Summit

July 26th, 2009 | No Comments

Illinois Gov. Pat Quinn is the host of what he’s calling the Midwest High Speed Rail Summit.

Takeover bid for National Express

July 24th, 2009 | No Comments

Approach follows swiftly on from the rejection of an offer from rival FirstGroup, which walked away on Wednesday but could potentially now return to the fray

National Express, the embattled bus and rail company, has received a takeover offer from its largest shareholder, the Cosmen family of Spain, with backing from private equity firm CVC Capital Partners.

In a brief statement, CVC confirmed today that it had made an “indicative” all-cash offer for the company in partnership with the Cosmens, one of Spain’s wealthiest business dynasties. The bid is said to be worth around Â£500m.

The approach follows swiftly on from the rejection of an offer from rival FirstGroup, which walked away on Wednesday but could potentially now return to the fray.

National Express has been in disarray since chief executive Richard Bowker abruptly quit last month and the company admitted it would quit the loss-making east coast rail franchise, after failing to meet ambitious growth targets. The company had committed to pay the government Â£1.4bn over the course of eight years.

Transport secretary Lord Adonis has since warned that he might have cause to strip the company of its other two, profitable, rail franchises, East Anglia and c2c, the London to Tilbury and Southend operation. The company is also struggling under the weight of Â£1.2bn debt.

CVC and the Cosmens are understood to have sent a letter to the board of National Express four days ago.

The Cosmen family sold the Spanish bus and coach company, Alsa, to National Express in 2005 in return for a 9.9% stake in the British company and Â£149m in cash. Since then, the family has quietly built its stake to 18.5%. Jorge Cosmen is deputy chairman at National Express.

But any bidder for National Express faces considerable uncertainty over the rail business, with Lord Adonis playing a key role in any outcome. As well as the existing threat to pull the profitable franchises from National Express, the Department for Transport would need to approve any change in control. Analysts have warned the company could also face a ban on bidding for new rail franchises.

First Group initially approached National Express in June with proposals for an all-share merger of the two businesses. It withdrew after National Express asked the City’s Takeover Panel to issue a “put up or shut up” deadline for it to make a formal offer. At the time, Sir Moir Lockhead, the First Group chief executive said it was “inappropriate” to table a formal offer “at this time” because of the lack of clarity surrounding the rail business.

Under Takeover Panel rules, First Group is now banned for bidding for six months, unless a rival offer emerges.

National Express confirmed earlier this week that it had received a second offer, although it did not at the time disclose the identity of the Cosmen family and CVC. The board is said to be holding out for an offer of around 400p a share, which would value the firm at Â£620m. The company had no further comment today.

Analysts said others could make a play for National Express, including another rival operator Stagecoach. “The key question is how other players in the industry react,” said Douglas McNeill at Astaire stockbrokers. “CVC looks like a serious approach”. Shares in National Express leapt 7% yesterday to close at 346p.

National Express is expected to hand back its east coast franchise later this year after failing to renegotiate the terms of the agreement. It is the second time in just three years that the owner of the franchise has walked away from its contract. GNER gave it up in 2006 after admitting that its promise to pay Â£1.3bn over 10 years was too much.

Among its portfolio, CVC owns a controlling stake in Formula One and is behind Debenhams, the high street department store chain. It was also the only bidder on the table for a stake in Royal Mail.

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Â£1bn to electrify 300-mile Great Western rail line

July 23rd, 2009 | No Comments

Electrification will reduce carbon dioxide emissions and will mean faster and more reliable services for millions of passengers

Network Rail will electrify nearly 300 miles of Britain’s busiest railway track over the next decade after the government today gave its approval to a Â£1.1bn programme.

The plans, announced by Gordon Brown this morning, will transform the Great Western mainline, which runs from London to Oxford, Newbury and Cardiff, via Reading.

Electrification will reduce carbon dioxide emissions and will mean faster and more reliable services for millions of passengers.

The prime minister travelled on one of the routes to benefit from the scheme this morning, arriving at Paddington station in London to journey on the Great Western line to Cardiff for a cabinet meeting.

The Great Western route from London to Swansea is to be electrified over the next eight years at a cost of Â£1bn.

The government is also spending Â£100m on electrifying lines between Liverpool and Manchester, with the work taking four years.

At Paddington, Brown said: “This is the future. It is green, it is faster and it’s more reliable. This is about making the railways fit for the 21st century.”

Asked if the government could afford such a scheme now, Brown replied: “We have set aside money for this. It’s an important priority for us.”

Only about one third of the rail network is electrified at the moment, with the Great Western route the last of the major routes to be still predominantly using diesel trains.

The electrification will include the lines to Oxford and to Newbury in Berkshire and will also make possible the direct replacement of the ageing InterCity 125 fleet by electric Super Express trains.

Electrification will shorten the London to Swansea journey time – currently just over three hours – by about 20 minutes. The plans will involve installing hundreds of miles of electric cables as well as alterations to tunnels, bridges and stations on one of Britain’s oldest rail routes.

Travelling with the prime minister today was the transport secretary, Lord Adonis, who said: “We are electrifying 300 miles of track and we are also looking to extend electrification to other lines.

“There will be some disruptions while the work is going on but Network Rail plans to keep disruption to a minimum, with much of the work being done overnight.”

Lord Adonis went on: “Electrification will mean faster, quieter and more efficient trains, which break down far less often.”

Mark Hopwood, managing director of First Great Western, said: “We are really delighted with this news. It’s going to transform our route and provide cleaner and more environmentally friendly travel.”

The electrification announcement follows Network Rail’s consultation document on electrification earlier this year, which also made the case for electrifying the Midland mainline route.

Lord Adonis said today that the government did consider Midland mainline and would continue to consider it.

guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds

Bangladesh favours reopening rail link with India: Sheikh Hasina

July 22nd, 2009 | No Comments

Bangladesh Prime Minister Sheikh Hasina has expressed her government’’s interest in reopening a rail link between Bangladesh and India to establish stronger connectivity between the two neighbouring countries in the fields of trade, investment and people-to-people contacts.
The railway link was severed following 1965 India-Pakistan war and has been non-operational since then.
She conveyed this at [...]

New accident at Delhi metro site

July 22nd, 2009 | No Comments

Cranes which crashed at a Delhi metro rail construction site on July 13, 2009

A labourer was killed when a girder fell on him at the Delhi metro rail construction site, the city’s rail corporation has said.

This is the third accident in the last 10 days at metro construction sites in the national capital.

The incident took place in the Punjabi Bagh area in west Delhi, a Delhi Metro Rail Corporation spokesman said.

At least six people died when a pillar supporting a partly-built bridge collapsed on 12 July in south Delhi.

A day later three cranes crashed while trying to clear the site.

Delhi’s seven year old metro system is the city’s pride and joy, offering commuters a clean air-conditioned and swift alternative to overcrowded buses and three wheelers.

‘Buckled’

"The labourer was guarding the beam when it hit his shoulder," the Press Trust of India news agency quoted Delhi metro’s Chief Public Relations Officer Anuj Dayal as saying.

The injured man was rushed to a nearby hospital where he succumbed to his injuries, he said.

Mr Dayal said that there was no structural collapse in the incident.

The truck-mounted cranes had lifted the girder off the ground when they buckled under the weight, the agency quoted him as saying.

The frequent accidents at metro sites have given rise to fears that safety standards are being compromised in the rush to build new lines, correspondents say.

There is pressure to upgrade Delhi’s metro before next year’s Commonwealth Games.

On 12 May, a pillar supporting a partly-built bridge collapsed killing six in the city’s Zamrudpur area.

The men who died were labourers working on the bridge.

In October, two people were crushed to death and 12 injured when another bridge under construction collapsed on to a bus and cars below. </p

This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Cardiff rail route to be electrified

July 21st, 2009 | No Comments

One of Britain’s busiest rail lines is to be electrified in a move that will introduce greener and more reliable services for millions of passengers.

The government is finalising plans to transform the Great Western mainline as part of a drive to reduce carbon dioxide emissions from transport. The programme will involve installing hundreds of miles of electric cables as well as alterations to tunnels, bridges and stations on one of Britain’s oldest rail routes.

An announcement could come as soon as Thursday, although the financing is still being put in place. The Department for Transport (DfT) and Network Rail, owner of Britain’s rail infrastructure, have discussed electrifying the route from London Paddington to Cardiff, taking in Reading and Bristol, as well as the popular commuter route from London to Oxford.

However, the programme is expected to be carried out in phases over the next decade in order to minimise disruption.

Britain lags behind many of its European counterparts in electrical coverage of its rail system, with only 40% of the 20,000-mile network electrified. Lord Adonis, the transport secretary, has pledged to electrify swaths of the network, led by Great Western and the Midland mainline from St Pancras to Sheffield, in order to reduce carbon dioxide emissions from transport by 14% by 2020.

Train operators said electrification would bring quicker and more reliable services for passengers, as well as giving rail a green edge over car and air travel. Michael Roberts, chief executive of the Association of Train Operating Companies, said: “Electrification brings with it the dual benefits of helping to make rail services more attractive to customers and drawing them away from cars and planes. It also relies on lower-carbon sources of energy.” First Great Western, the main operator on the Great Western network, carries 84 million passengers a year.

According to Network Rail, the diesel trains that travel on the Great Western route emit at least double the carbon dioxide output per mile of an electric train. The government-backed company has also calculated that it will cost Â£800,000 a track mile just to erect the cabling. Once work on tunnels, bridges and culverts is added in electrifying the 118-mile stretch from London to Bristol could cost Â£380m, according to Network Rail.

It is understood that the DfT and Network Rail have discussed funding the work through an increase in Network Rail’s borrowings. Network Rail’s debt is underwritten by the state and the government will pay off the interest over a number of decades, minimising the immediate impact on the taxpayer.

Stephen Glaister, professor of transport and infrastructure at Imperial College London, said the benefits of electrifying thousands of miles of railway track would be undermined if trains were not powered by energy produced from low-carbon sources such as nuclear plants or wind farms. Otherwise, electrification would simply increase demand for electricity from coal- and gas-powered plants, he added. “The government has to clarify where the electricity is coming from. In a world where nuclear power is declining and renewables cannot fill the gap, where else is it going to come from apart from burning more coal and gas?”

Lord Adonis, the transport secretary, said last week: “Transport accounts for a significant amount of our domestic emissions. Therefore decarbonising this sector has to be front and centre of efforts to meet our obligations and commitments to tackle climate change.”

The government is also encouraging greater production, and acquisition, of electric and hybrid cars as part of its low-carbon policy.

guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds

Cardiff rail route to be electrified

July 21st, 2009 | No Comments

One of Britain’s busiest rail lines is to be electrified in a move that will introduce greener and more reliable services for millions of passengers.

However, the programme is expected to be carried out in phases over the next decade in order to minimise disruption.

The government is also encouraging greater production, and acquisition, of electric and hybrid cars as part of its low-carbon policy.

guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds

July 21, 1904: All Aboard for Siberia, Tovarich

July 21st, 2009 | No Comments

1904: Decreed by a czar, built by thousands of workers over a period of more than a decade, the Trans-Siberian Railway is officially completed. As you’d expect with a project of this size, complexity and scope, “officially completed” is a relative term. Trains have already been operating on parts of the line for some time, [...]

San Francisco Train Operator’s Actions Come Under Scrutiny Following Crash

July 20th, 2009 | No Comments

SAN FRANCISCO — The operator of a light-rail train that crashed and injured dozens of passengers in San Francisco came under scrutiny Sunday as federal investigators tried to figure out why he inexplicably turned off the automatic contro…

Dozens hurt in San Francisco rail accident

July 19th, 2009 | No Comments

Two light rail cars collided in San Francisco on Saturday, injuring 48 people, four of whom were in critical condition, officials said. The mid-afternoon accident caused service delays into the evening between the West Portal and Castro stations in California’s third largest city. Initial

Big Cash Infusion Could Ease Chicago’s Snarling Train Traffic

July 18th, 2009 | No Comments

CHICAGO (AP) — When a train screeches to a halt in Chicago, freight and passenger trains from as far away as Baltimore or Los Angeles are sometimes forced to apply their brakes as well – which can result in costly gridlock throughout the nati…

Five dead, 15 injured in New Delhi metro rail bridge collapse

July 12th, 2009 | No Comments

Five people were killed and another 15 injured when a section of a partially-constructed New Delhi metro bridge gave way suddenly early Sunday, a spokesman for the rail service said. The accident occurred when a pillar supporting part of the carriageway collapsed, Anuj Dayal, spokesman for

Are we all smiling nicely? Japanese firm to check up on staff

July 11th, 2009 | No Comments

Commuters in Japan

A Japanese rail firm has introduced a system to check that staff are smiling enough at all times.

Computerised scanners around 15 Tokyo stations will measure the smile’s curvature to ensure it is broad enough.

Those failing to measure up – literally – will be advised to look less serious and more cheerful.

The system will also be introduced at a hospital in Osaka to check staff friendliness and at a truck stop to measure the tiredness of drivers.

The BBC’s Roland Buerk, in Tokyo, says that the Japanese highly value customer service.

It is standard practice, our correspondent explains, for smartly-dressed train conductors to bow as customers enter and leave train carriages.

The software has been developed by Japanese firm Omron.

They suggests that future applications may include shops – where they could be positioned to measure the reaction of customers to products on display. </p

This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Posts Tagged ‘rail’

A railway bonanza in China: Trouble down the track

Snow buries road, rail links in Europe

Mobile Broadband Carriers Rail Against Net Neutrality

Britain eyes rail to replace short-haul flights

MPs attack rail firms for raising fares

Governors Holding Midwest High Speed Rail Summit

Takeover bid for National Express

Â£1bn to electrify 300-mile Great Western rail line

Bangladesh favours reopening rail link with India: Sheikh Hasina

New accident at Delhi metro site

Cardiff rail route to be electrified

Cardiff rail route to be electrified

July 21, 1904: All Aboard for Siberia, Tovarich

San Francisco Train Operator’s Actions Come Under Scrutiny Following Crash

Dozens hurt in San Francisco rail accident

Big Cash Infusion Could Ease Chicago’s Snarling Train Traffic

Five dead, 15 injured in New Delhi metro rail bridge collapse

Are we all smiling nicely? Japanese firm to check up on staff

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