Railway case study by Olivier CROUZIER

PPP in Syria PPP Workshop Railway Case Study

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Case study 2

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About Stategy : To be presented and discussed

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Strategical aspects

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Strategical aspects

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Strategical aspects

General National Establishment of Syrian Railways (history) The Syrian Railways were established for first time in year 1885, where a line was laid between Damascus- Beirut across Saragaya and pick - with long 104 km, then between year 1904- 1908 the extension Railway between Damascus- Makkh across Jordan, and the same time Ottoman laid railway starting from Kongah across Adneh- Mussel- Baghdad to Basra with branch connected it with Aleppo and so Syria had the following networks: - Railway Aleppo - Almesselmieih- Midanakbess- Alraâ&#x20AC;&#x2122;I the borders with long 166 km. - Qameshli- Alyarobieh railway with long 81 km. - Homs- Al-qusair borderline 40 km long. - Railway Akari- Lebanon borderline 40 km long. These Railways were invested total by French sides in era of French Mandate, that the Syrian government in era of independence- with secured the north line, and established Railways of Syria depending on legislative decree number 10 dated 9/4/1949, then it bought the south sections according to the law number 223 of 1956, and then the south and north parts were unified and invested by the General National Establishment enjoyed financial and administrative independence. These railways had few exile equipment and the speed of not more then 40 km in steer train. From Syrian Railways site (CFS)

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To be presented and discussed

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From ISMF Studies in Transport Sector Read pp 104 -108

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Meeting on Sunday 20.04.2008 •

Actual data – Length of railway network : 2400 km – In connection with productive sectors and other countries (Turkey, Jordan, Lebanon, Iraq) – 12000 employees (Staff and workers) – 2 400 000 passengers and 9.5 M tons in 2007

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Existing Master plan for railway development up to 2025 – Targeted traffic values : 10 M passengers and 30 M tons (2025) – Strategic plan for infrastructures and superstructures

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Projects on current focus – Corridor to Iraq and Iran : 670 km inside Syria and 1300 km inside Iraq • Route : Lattikia-Tortous- Homs-Iraq border- (Bagdab- Bassora- Teheran) • Actually 10 to 12 days are necessary for Bagdad …instead of 1 day (future) by rail; 2 days may be necessary for Iran (Teheran … 2300 km ?)

– Railway infrastructure for phosphate export

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• Route : Phosphate mine – Mins- Homs- Tartous (dedicated terminal) • Actually big pollution in Tartous due to phosphate • Possibility of extension to Palmira with railway station-Airport connection

Let’s chose the case study Projects

From-to

No 1

Tartous – Iraqi Border

670

Part of an international corridor

No 2

Phosphate mine – Tartous Port

230

Secure Phosphate providing

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Lengh (km)

Purposes

Project cost (SP)

Department of Operating and Transportion Operating and transportation directorates under takes putting technical bases tasks in the establishment for the better investment for the available devices in the General Establishment of Syrian railways, stations, branches, rolling stocks and signaling and communication equipment's, and the others. As its participates in putting plan for transporting of passengers and goods putting the General method for the whole network of the trains movement. This department practices its tasks, competence and specialization throughing the its central departments related it which are: Firstly: Technical department of operating affairs This department contains the following branches: 1-Branch of the technical instructions. 2-Branch of drawings. 3-Branch of technical office. Secondly: Department of passengers transportation This department contains the following branches: 1-Branch of the passengers affairs. 2-Branch of the restaurants. 3-Branch of services. Thirdly: Department of programming, directing and control This department contains the following branches: 1-Branch of the rolling stock positions and directing it. 2-Branch of programming. 3-Branch of directing trains movement. Fourthly: Department of the trains safety movement This department contains the following branches: 1-Branch of trains safety movement affairs. 2-Branch of the incidents and accidents. Fifty: Department of the transport of goods and statistics This department contains the following branches: 1-Branch of goods transportation. 2-Branch of statistics. Sixty: Department of divan office This department contains the following branches: 1-Branch of the workers affairs. 2-Branch of administrative affairs. 3-Branch of technical services. 4-Branch of necessaries.

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Support The National Economy In response to the directions of the homelandâ&#x20AC;&#x2122;s leader in the row speech, the general institution of the Syrian railways has adopted a program for an administrative and economic reform in order to develop and modernize the functions and the activities of the establishment in all its human and material powers and in its machineries in transporting goods and passengers inside the country and across its borders. The purpose of the establishment reform program is to build future strategic visions which gives Syrian railways position in transportation economic in the Middle East region through working hard to increase the establishmentâ&#x20AC;&#x2122;s contribution in composing the local products by increasing transportation power and the improvement of its fleet of locomotives, coaches, wagons and tanks, and completing the connection of the railways nets to achieve and international railway link across two axle transportation: The First: From European countries to Syrian ports through Syria, Iraq and Iran to the middle and east Asia. The second: From Europe through Turkey and Syria to Jordan and Arab countries, to make maintenend and repair and renew and development of old lines the recent railways in accordance with UIC specifications which enabling the establishment to achieve its required speed in transportation and improve the quality of its services in transporting passengers and goods and raising human resource to achieve that. And in the area of establishment plans to develop and modernize its functions activities, the establishment made a technical study to modernize the railways net. And in this regard it made a lot of studies of which: A- A study of the base of the earth lathe in Gibrin. B- A study of a hall for collecting the gas tanks in the center of wagon reform in Gibrin. C- A study of a building for fixed installations in Tartous. D- A study of locomotives depot in Homs station. E- A study of typical passengers for crossing two levels. F- A study of pedestrian passage in Gabla station. H- A study of executing of pole hall G- A preliminary and executing study of sleepers factory. L- A study of organizing Baghdad station area in Aleppo city. M_ A study of organizing Al-kaddam station in Damascus. And in relation to the study of the positions of posts to insure its organizing plan ,and the movement of the stored spare parts ,we can speak about achievements of the establishment in 2000 AC which are : a _ A study of the purchasing process and scrutinizing on the reasons of purchasing the raw materials which had not been consumed several years ago. b_ A study of storage requirements in a united area and proposing making a committee for studying the requirement of constructing central depots in Gibrin region.

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Actual allocation of responsibilities ? Responsibilities

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Prefered allocation of responsibilities ? Responsibilities

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What is the current strategy ?

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General informations Producing in mines The company invests in the raw materials of phosphate, salt and quartz sand The raw materials of phosphate are mined from 2 major sites: Khnaifees and Alsharqia with a medial percentage of phosphoric dioxide 24 -28%. Starting from 1980s to the present day , the productive density of the two mines is /2650000/ tons, /800000/ of which from Khnaifees mine and the rest / 185000/ tons from Alsharqia two mines (A) and (B) while the discovered reserve exceeds /2/ billion tons. Alsharqia phosphate reserve is considered the most important. The company is willing soon to produce additional amount of the washed phosphate so the general annual production becomes /3.8/ million tons i.e. The productive density of phosphate becomes /3.85/ million tons starting from 2005. Most of the produced qualities, 80% of the general production, are for export. The rest 20% is locally used in making phosphoric acid and phosphate fertilizer in Homs Fertilizer. Later, the phosphate and especially the raw materials are being transported by railway to Tortuous' port 265 km away from mines. The ordinary phosphate (P2 O5) is transported in a percentage of /29.75- 30.25%/ to Homs fertilizer and Tartous' port while washed 窶電ried phosphate of / 30.75 - 31.5 % / is transported to Tartous. 2- Raw salt is invested from under-surface mine from a depth of /150m/ of sea level. Approximately, the annual production is /75/ tons. Also, salt is mined from salinities and marshes with an average of / 50-100/ tons a year. 3- Quartz sand: this raw material is found in many areas in country; most important are Altadmouria Mountain Series, Albishri Mountain and Alforatia Benches. Those raw materials are mined from Alramlia and Aldaana mines (near Alqritain city) with annual quantity of /850/ tons. And equal quantity is mined by the private sector in different sites in Reif Demashk. The company exports most of 28/01/13 27distributed. phosphate production to external markets while quartz sand and salt are locally

General informations Phosphate usage: Annually, (600-700) thousand tons of phosphate are used locally in fertilizer in Homs- Syria for farming the phosphor acid, the triple fertilizer and locally used Super phosphate, but the remaining produced amounts about 3,2 million tons are exported outside(to the previous mentioned countries). The exported amounts are used externally in making the alimentary, unnatural and yellow phosphor and all kinds of simple and double phosphate fertilizers, and also in making the compound fertilizers which contain the elements of phosphor for the nourishment of agricultural lands. The Syrian phosphate is also used for making the forage (De-calcium phosphate). The company with the ordered authorities, in collaboration with Ministry of Industry and Syrian private sector in addition to international organizations, are studying the development of production of Syrian phosphate and exceeding the productive amount for a developed industry of phosphor acid and different fertilizer with cooperation with the private sector in Syria and with international institutions expert in the construction of such projects according to the investment law, number / 10 /. Developing phosphate loading and storing department in Tartous The general company of phosphate and mines purchased new loading tower to be installed shipping pavement /19/ instead of the old one in order to increase loading capacity and to reduce ascending dust while loading on ships. The general company of phosphate and mines purchased new telescope pipe with high specification so it reduces ascending dust while loading phosphate to be installed on loading tower on pavement /18/. The general company of phosphate and mines established a central lab and a semi-industrial experiment unit in headquarters to make all necessary researches on phosphate.

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About railways At independence, the country inherited two separate railroads. The narrow gauge (1.05 meters) Hijaz Railway served Damascus and the southwest, with connections to Lebanon and Jordan. In 1984 it had 327 kilometers of track. The standard gauge (1.4 meters) Northern Railway had 757 kilometers of track from the port of Latakia to the northeast corner of the country and Iraq via Aleppo, Ar Raqqah, Dayr az Zawr, and Al Hasakah. The link between Latakia and the northeast was completed in the mid1970s, and it resulted in a substantial rise in freight, primarily shipments of cotton, wheat, and barley. By the late 1970s, the railroads required considerable rehabilitation in order to make an important contribution to the economy. Transportation policy needed attention and equipment needed upgrading. The government had long-term plans to add equipment and trackage, link the two systems, and make the railroads much more important carriers of passengers and traffic. In 1978 work began on lines linking the phosphate mines near Tadmur to Tartus. In 1981 the Soviet Union provided Syria US$49.5 million in development aid, including funding for the 150- kilometer railroad from Dayr az Zawr to Abu Kamal and an 80- kilometer line between Tartus and Latakia, with a 10-kilometer spur to the Tartus cement factory. The 209-kilometer line from Damascus to Homs opened for freight in 1983. The opening of the Homs to Tadmur and Homs to Tartus routes, coupled with other expansions of the railroad network, connected Syria's main towns and industrial centers in the mid-1980s. By 1984, total standard extended gauge track stood at 1,686 kilometers.

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Syrian railway context

Project

Rail The Syrian Railway General Organisation (SRGO) runs Syria's main line. This 1,900 km track links Damascus to Aleppo, via Homs, continuing to Deir ez-Zor and Qusaybah on the Iraq border. A link between Aleppo and Moussel (Iraq) has recently been reintroduced. At Aleppo a secondary line follows Syria's border with Turkey to Qamishe, before linking to Deir ezZor. A line also runs from Aleppo to Lattakia, following the coast to Tartous before linking to Homs. At Homs a rail link carries traffic to Beirut. The General Organisation of the Hedjaz-Syrian Railway operates the 327 km link to Amman in Jordan. Syrian railways carry over four million passengers per year. Cargo freight is restricted to the transport of bulky heavy goods. From www.uktradeinvest

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Syrian railway context

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Project

PPP optionsâ&#x20AC;Ś

Works & Services Contracts

Management & Maintenance Contracts

Operation & Maintenance Concessions

Build Operate Transfer Concessions

High

Low Extent of private sector participation

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Full Privatization

PPP optionsâ&#x20AC;Ś Types of Contract

Asset Capital ownership Investment

O&M

Commercial Duration Risk (yrs)

Service Contract

Public

Private & Public

Public

1-2

Management Contract

Public

3-5

Lease

Public

Private

8-15

Concession

Public

Private

25-30

BOT / BOOT

Public & Private

Private

25-30

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Type of contact

Institutional requirements Technical feasibility Financing arrangements

Legal framework requirements Operation and maintenance model

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About financing

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