Bro braus bombardier supplychain july2015

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C O M P A N Y O V E R V I E W


Bombardier Transportat

Bombardier plays central role the revitalization of Australia’s

While the task before them is daunting, Bombardier and th Australian Government are planning to provide cutting-edg mobility solutions for the next phase of increasing populat growth and congestion across the nation. Written by: Ian Hanner Produced by: Daniel Kadar


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B O M B A R D I E R T R A N S P O R TAT I O N

Mock Up of QNGR vehicle at Eagle Farm

Response to population growth The world’s population has increased dramatically since the beginning of the last century, increasing from fewer than 2 billion in 1900 to 7.2 billion in 2014. Aside from the increased resource drain that more people ensure, there’s the other factor of population growth that is inescapable, though solvable congestion. Bombardier Transportation wants to answer the calling by providing the next generation of mobility solutions. In tandem with multiple private sector entities and with the backing of the Australian government, the more 5

July 2015

than-century old company is poised to ensure reliable transport for the years to come. All around the world, goods need to be transported to and fro in not only safe, but ultimately reliable, ways. While automobiles and paved roads have allowed for greater geographical connectivity than ever before, they’re limited a great deal by the number of people on the roads and driving habits. For traveling over long distances, airplanes remain the unrivalled solution. But the large swaths of land needed to put an airplane down, and the heavy fuel


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Inside mock up of QNGR vehicle - restroom facilities

consumption that this mode of travel demands make it obviously impractical for commuter traffic. Interestingly, it’s a return to a technology older than both of those that shows the greatest promise: rail. Long neglected as the usefulstill, but not as glamorous transport of yesteryear, the commuter rail industry is poised to make real growth over the next decade or two in nearly every country in the world. One such endeavor that could serve as a beacon for future projects to look to for guidance is being carried out in Australia. In May 2015, the Australasian

Railway Association (ARA) published the results of the Infrastructure Australia Audit Report, which found the ocean-lined nation woefully unprepared for the challenges of growing populations. ARA Interim Chairman Bob Herbert said, “Rail infrastructure underpinning passenger transport must be in place to meet population growth which, according to the audit, will swell demand for public transport by 55 percent in Sydney, 121 percent in Melbourne and around 89 percent in other capital cities.” While the results of the audit w w w. b o m b a r d i e r. c o m /

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For perfect clear vision.

Besides outstanding quality and reliability, product innovation plays a significant role for our company. Thanks to our company-owned developmental team, motivated staff and state-of-the-art manufacturing facilities, Glas Trösch AG Rail counts as one of the most competent suppliers worldwide in the field of high-end su windscreens and cabin glazing for the most important train manufacturers.

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Glas Trösch AG Rail is proud to be supplier in cabin glazing for Bombardier Transportation.

77 years of experience... provide evidence that offering the engineering, manufacturing, delivery as well as tailor made aftermarket services for reliable state-of-science glazing solutions are a key to long-term success. With that in mind, it is no surprise that our light-weight window systems meeting the highest international standards have been chosen for the fantastic all-new QNGR fleet. Maximum protection vs. minimum weight: opposing attributes which are both met at the same time by the excellent products of Flachglas Wernberg.

“I think all of the parties involved in this project are very keen to demonstrate that our PPP model can be successful for such a large-scale new train procurement process.” – Paul Brown

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B O M B A R D I E R T R A N S P O R TAT I O N present an image of a worrisome future, the Australian government, in partnership with the private sector, is already developing the transport infrastructure to keep pace. The Queensland New Generation Rollingstock (QNGR) project. “This project is a game-changer for Bombardier in Australia in terms of both size of the project and complexity,” said QNGR Project Director Paul Brown. “It’s a $3 billion project which is seeing us deliver 75 new trains for Queensland and involves the construction of a new depot as part of that contractual obligation. Equally, we have the 30 year maintenance deal as part of a PPP contract.” Bombardier is largely leading the development of the QNGR project through Qtectic, the trading identity of a consortium of companies including Bombardier Transportation, John Laing, Itochu and Uberior. With this venture, Australia is investing in its transportation future, specifically in Queensland. But since this project is to serve as a beacon, it has to be done

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right, especially as a public-private partnership (PPP) model. This model presents a range of longterm challenges that are often completely absent in projects of this nature, such as a three decadeslong obligation for Bombardier to maintain the health and functionality of the systems. “Managing the complexity of a PPP contract is a key ability that we believe we have here at Bombardier, particularly in terms of our systems division,” Brown said. “Australia seems to be much more in favor of the PPP model and it would appear to be much more successful here than in other parts of the world— certainly in rail.” He added, “I think all of the parties involved in this project are very keen to demonstrate that our PPP model can be successful for such a large-scale new train procurement process.” Benefits for Australia These 450 carriages, which are designed by Bombardier with input from universities in Queensland, will be manufactured at Bombardier’s facility in Savli, India. The trains will w w w. b o m b a r d i e r. c o m /

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B O M B A R D I E R T R A N S P O R TAT I O N

Inside mock up of QNGR vehicle

carry passengers at a top suburban speed of 100 kilometers per hour and a top interurban speed of 140 kilometers per hour. Bombardier’s trains will service every line in South East Queensland. There’s also the matter of job creation. Given that many 9

July 2015

components of this project as possible are being sourced locally in Australia, it’s difficult to accurately measure the number of jobs an undertaking like this will create. However, many of these jobs would be, in theory, temporary. That’s not such a bad thing, with


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countless examples of temporary labor markets lifting people out of chronic unemployment. However, what really matter are the long-terms jobs that this project will create. Bombardier estimates that once all is said and done, the operation of the trains and the new facility will easily create permanent jobs for more than 150 individuals. Brown also points to the tertiary roles that this development would create. “In the wider arena, the supporting jobs that this project will bring, such as business at the local coffee shop or maintenance contracts that we’ll need to place for cleaning and maintenance of the depot, can easily create upwards of another 500 jobs,” he said. This is extremely good news for a region that has seen job growth slow to a trickle. So with economic opportunities abounding, and prudent early planning promising to mitigate challenges for Australia down the line, it’s hard for Brown and the rest of Bombardier not to be optimistic. “The railroad sector itself is a very exciting sector to be in right now,” he said. “It ticks all the boxes if you look at what’s happening in the wider economic sphere in terms of population growth, increased urbanization, environmental pressures for municipalities and more. Rail, as a solution, ticks all those boxes, so you know there’s continued forecasted growth in that market. Bombardier and Australia want to remain in a central position to maximize opportunities.”

Company Information INDUSTRY

Supply Chain HEADQUARTERS

Melbourne, Victoria, Australia FOUNDED

1942 EMPLOYEES

40,000 REVENUE

$20.1 billion PRODUCTS/ SERVICES With 63 production and engineering sites in 26 countries and 18 service centers across the world, Bombardier Transportation is the global leader in the rail industry. They cover the full spectrum of rail solutions, ranging from complete trains to sub-systems, maintenance services, system integration, and signaling. Their installed base of rolling stock exceeds 100,000 rail cars and locomotives worldwide. Bombardier’s 39,700 employees continue a proud tradition of delivering ingenious rail transportation solutions.

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BOMBARDIER TRANSPORTATION Address 35-45 Frankston-Dandenong Rd, Dandenong, Melbourne, Victoria, Australia, 3175 Tel. +61 3 9794 2111 Fax. +61 3 9706 9219 http://www.bombardier.com/en/contacts/ contact-us-form.html www.bombardier.com/


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