Urban Transport Infrastructure May 2021 by Urban Transport News

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ISSN 2581-8023 COVER INR 300 VOLUME III ISSUE 15 MAY 2021

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Canada’s Transport Budget Low-Carbon Transit Technologies Transforming Canada for the Better Project Financing The Role of Development Financial Institutions in India

Transport Planning Issues and Risks for Monorail projects and Metro Systems

Urban Transportation Transforming Urban Transportation: Small Innovations, Big Returns

Transportation Beyond Border How valuable is connectivity between India and Bangladesh?

Urban Logistics Path for cities to make urban logistics more sustainable?

Anniversary Special 27 years of Delhi Metro

Touching bullet speeds

$47.78bn Investment Opportunities in Indian Railways

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URBAN TRANSPORT INFRASTRUCTURE | MAY 2021 | ISSUE 15

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Touching Bullet Speed: Investment opportunities in Indian Railways By Urban Transport News

Canada's Budget 2021: Low-Carbon Transit Technologies Transforming Canada for the Better

By Josipa G Petrunic President & CEO Canadian Urban Transit Research & Innovation Consortium (CUTRIC)

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History of Metro Rail in India: Trams to Driverless Metro

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ARTICLES/OPINION

Self-driving cars pose a crucial question: Who to blame in a crash?

Shaping women’s access to opportunities: Gender, transport, and employment in Mumbai By Muneeza Mehmood Alam, Economist (Transport) and Matias Herrera Dappe, Senior Economist, World Bank

By Urban Transport News

URBAN LOGISTICS 38

Time to decarbonize transport for a green, resilient and inclusive recovery

By Mari Elka Pangestu, World Bank Managing Director of Development Policy and Partnerships

27 Years of Delhi Metro

Future of Urban Logistics

By Ignacio Magallón Hernández, Sr. Innovation Consultant and Amy McCready, PR & Communications Officer, Bax & Company

E-MOBILITY

Transforming Urban Transportation: Small Innovations, Big Returns

E-biking to Work

By Prashanth Bachu, Urban Planning Specialist, Gear Change

How valuable is connectivity? In Bangladesh and India, transport links could boost income significantly

EVENTS

By Cecile Fruman Director, Regional Integration and Engagement, South Asia; Matias Herrera Dappe, Senior Economist and Charles Kunaka, Lead Private Sector Development Specialist, World Bank

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By Ankit Kumar, Founder & CEO, GoZero Mobility

Industry Event Calendar 2021

URBAN TRANSPORT INFRASTRUCTURE MAY 2021

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EDITORIAL ADVISORY BOARD Our distinguished advisory board has been assembled to guide Urban Transport Infrastructure Journal to become even more representative of rail, metro and urban transport industry. Members have been invited from the highest levels of the industry and academic/research institutions to ensure high quality content so that the journal can continue on its path of success.

Karuna Gopal Smart Cities Advisor Foundation for Futuristic Cities, Hyderabad

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Dr. Vivek Vaidyanathan Sudhanshu Mani, IRSME Urban Transport Scientist Urban Rail Expert Center for Study of Science, Ex-GM/ICF, Indian Railways Technology & Policy (CSTEP), Bangalore

Rajesh Agrawal Corporate Consultant, Former Member (Rolling Stock), Railway Board

MC Chauhan, IRSEE Railway Expert Ex. Chairman –KMRC, Ex. GM/NCR, Indian Railways

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VOL. III / ISSUE 15

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Covid-19 pandemic is an unprecedented event which showed us that our present transportation system is not resilient enough in terms of evacuating people from workplaces to their homes or to address problems people are facing in the lock down period. There are significant changes which people witnessed in the lockdown period that will affect the behavior of people. Even after recovery period, people may continue to exercise precautions against a possible third pandemic wave, which researchers suggest might hit in Fall 2021. Hence it is of utmost importance to understand the behavioral changes in people, the travel choices they make, and the planning and policy interventions required during BAU (Business As Usual) scenario after recovery period (pandemic’s peak period ends). This understanding will help government to prevent any third wave and can make transportation system integrated with response mechanism. Government and policy makers need to prepare a detailed plan beforehand so that post COVID-19 world is quickly supported by proper scientific interventions. Such interventions are required to solve problems which will arise during the BAU scenario such as managing transport demand, promoting sustainable transport interventions, improving resiliency of transport system to withstand any further COVID-19 wave and response to such disasters etc. In this issue we have discussed on business avenues in India’s railway sectors, better transportation planning, Canada’s Transport Budget, Role of DFIs, MRTS planning, Autonomous Vehicles and need of emission free mobility to curb global warming. Please keep sharing your valuable feedback on the content of our publications so that we can improve and provide more useful information in our future issues. Stay Safe and Stay Happy! Mamta Shah Managing Editor editor@urbantransportnews.com

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ROUND UP

HIGHLIGHTS OF MARCH-APRIL Dubai vaccinates all taxi and public transport drivers The Dubai Roads and Transport Authority (RTA), in collaboration with the Dubai Health Authority (DHA) and other authorities, has administered the COVID-19 vaccination to all eligible taxi and public transport drivers, which accounts for more than 20,000 individuals.

Moscow Transport unveils new Moskva-2020 model on metro rail network Moscow Metro on March 16, 2021 had introduced four new Moskva-2020 trains into service with a brand-new design. The new trains have a white and blue livery instead of earlier black versions, and according to the operator will run on lines 5 and 6 in the Russian capital. The new Moskva series has wider doors and gangways and is equipped with interactive route planners, information screens and 368 USB ports – five times more than in the previous model.

The campaign also covered outsourcing employees, school bus drivers, Bike Delivery riders and limo drivers as part of efforts to ensure the health and safety of all. The centre has been fitted with 30 counters to vaccinate 1200-1500 people a day clocking at 150 people an hour. All precautionary measures have been taken at the centre including physical distancing.

Scottish Government invests £7 million in zeroemissions projects The Scottish Government is investing £7 million to support zero emission mobility across two new projects, as it looks to build on recent technological breakthroughs such as the hydrogen train test conducted earlier this year.

Delhi Metro to establish National Metro Rail Knowledge Centre in New Delhi Delhi Metro Rail Corporation (DMRC) is planning to establish National Metro Rail Knowledge Centre near its Vishewavidyalaya Metro station to provide useful information to metro rail lovers as a part of its Corporate Social Responsibility (CSR). In this regard, DMRC invited Expression of Interest (EoI) from private parties, corporate houses, NGOs, PSUs, and trusts, etc. for the establishment of the National Metro Rail Knowledge Centre (NMRKC) near Vishewavidyalaya Metro station (on Yellow Line).

URBAN TRANSPORT INFRASTRUCTURE MAY 2021

The LOCATE facility, which will be based at the Michelin Scotland Innovation Parc (MSIP) site in Dundee, will receive £4 million to support heavy duty vehicle platform testing and innovation, particularly around hydrogen fuel cell and battery electric powertrains. This project is being developed by the Scottish Government in partnership with the Power Networks Demonstration Centre and the Hydrogen Accelerator at the University of St Andrews.

RTA Awarded 15-year contract for operation & maintenance of Dubai Metro and Trams A French-Japanese consortium has won the contract for the operation and maintenance of the Dubai Metro as well as the operation of the Dubai Tram. The contract covers 15 WWW.URBANTRANSPORTNEWS.COM

ROUND UP

years (nine base years and six years up for renewal) and amounts to approximately AED542 million per annum.

The consortium consists of three companies – Keolis, Mitsubishi Heavy Industries Engineering, and Mitsubishi Corporation. The award of the contract follows a public tender released by the Roads and Transport Authority (RTA) in which four consortiums and international firms specialising in rail operation and maintenance took part. The consortium will operate and maintain the Dubai Metro, as well as the Dubai Tram from 8 September 2021.

Volocopter issues roadmap for implementation of urban air mobility

The City of Seattle has released a city-wide plan which outlines how the city will move towards a more sustainable transportation system in order to reduce climate emissions and air pollution, increase electric mobility options, and create a pipeline of green jobs and workforce diversity.

This effort was co-led by the Office of Sustainability and Environment, Seattle City Light, Seattle Department of Transportation, and the Office of Economic Development to incorporate a wide range of expertise in climate policy, innovation, infrastructure, transit, mobility, economic development and workforce development to ensure an equitable transition.

Urban air mobility company Volocopter has published a white paper to lay out what it thinks are the key steps to achieving the widespread adoption of air mobility in the future. Entitled “The Roadmap to Scalable Urban Air Mobility”, the paper outlines what is needed to operate the full ecosystem enabling urban air mobility.

DfT unveils £100 million investment plan for zeroemissions buses Grant Shapps, Department for Transport (DfT) had launched a multimillion-pound scheme to enable local transport authorities to roll out zero-emission buses, as part of the government’s aim to “build back greener.”

The paper directly confronts the current challenges facing the electric vertical take-off and landing (eVTOL) industry with solutions focused on a holistic partnership approach for introducing this next dimension of mobility.

Seattle unveils ambitious transportation in city WWW.URBANTRANSPORTNEWS.COM

plan

for

green

Up to £120 million is being made available through the Zero Emission Buses Regional Area (ZEBRA) scheme, which will allow local transport authorities to bid for funding to purchase zero-emission buses, which the DfT hopes will reduce transport emissions and improve urban air quality. The funding will deliver up to 500 zeroemission buses, supporting the government’s wider commitment to introduce 4,000 zero-emission buses.

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ROUND UP

RTA, WEF signs MoU to promote autonomus vehicle technology in Dubai Dubai’s Roads and Transport Authority (RTA) has signed a Memorandum of Understanding (MoU) with the World Economic Forum (WEF) to promote the strategic partnerships between the two parties, especially relevant to the Safe Drive Initiative Framework (SafeDI Framework) of the Forum. RTA says the MoU supports Dubai’s strategy to transform 25 per cent of total trips in the city into self-driving trips by year 2030.

Transport for Greater Manchester celebrates its 10th Anniversary Transport for Greater Manchester (TfGM) on April 1, 2021 turned at 10 years. Marking its 10th anniversary TfGM had called it a decade of “unprecedented investment and development of the region’s transport network.” The reorganisation of TfGM was made on April 1, 2011. Before this, it had been known as GMPTE since 1974. Prior to that, it had operated as the South East Lancashire / North East Cheshire Passenger Transport Executive (SELNEC), following the introduction of the Transport Act (1968).

Ahmed Hashem Bahrozyan, CEO of Public Transport Agency, and Head of the Self Driving Transport Congress and Dubai World Challenge for Self-Driving Transport Organising Committee, signed the MoU on behalf of RTA. Jeremy Jurgens, Managing Director and Member of the Managing Board of the World Economic Forum signed on behalf of the Forum.

FTA announces over $30 billion in federal funding The US Department of Transportation’s (DOT) Federal Transit Administration (FTA) has announced a total of $30.5 billion in Federal funding to support the nation’s public transportation systems as they continue to respond to the COVID-19 pandemic and support President Biden’s call to vaccinate the U.S. population. An additional $1.7 billion is being provided for projects in the Capital Investment Grants (CIG) Program and another $25 million for competitive planning grants, which includes infrastructure projects in cities such as New York, Boston, Los Angeles, and Dallas.

URBAN TRANSPORT INFRASTRUCTURE MAY 2021

Japanese firm signs MoU for track works training for Mumbai-Ahmedabad HSR project The National High Speed Rail Corporation Ltd (NHSRCL) on April 19, 2021 signed a Memorandum of Understanding (MoU) with Japan Railway Technical Service (JARTS) for Training, Certification and Advisory Services for construction of Track works for Mumbai Ahmedabad High Speed Rail corridor under Package No.

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MAHSR-T-1, T-2 and T-3. The MoU was signed via a virtual ceremony in the presence of Managing Director, NHSRCL Achal Khare, NHSRCL Director Project Rajendra Prasad, Director Finance A.K. Bijalwan, Minister Embassy of Japan in India Shingo Miyamoto, Chief Representative JICA India Katsuo Matsumoto, President JARTS KONO Haruhiko, and other officials from JARTS, JICC and JR East.

Govt. of India approves Rs 14,788 crore Bangalore Metro Phase 2 Project The Central Government cabinet on April 20, 2021, gave their nod to 58.19 km ambitious Phase 2 of the Bangalore Metro Rail project. This is a big step towards realizing the dream of metro connectivity to the City's International Airport. This project is divided into two sub-phases viz. Phase 2A (ORR Line) and Phase 2B (Airport Line) with an estimated cost of Rs 14,788.1 crores.

Black woman, to serve in this role at Metro. She will succeed retiring CEO Phil Washington. Wiggins will manage a budget of nearly $7 billion, oversee up to $20 billion in capital construction projects, and oversee an agency with 11,000 employees that transports more than a half-million boarding passengers daily on a fleet of 2,200 buses and six rail lines.

FirstGroup to sell its US divisions to EQT Infrastructure Transit operator FirstGroup has announced it has entered into an agreement for the sale of First Student and First Transit to EQT Infrastructure. The proposed sale would bring together two of North America’s market leaders in school and public transportation with a large investor in infrastructure. The sale is subject to both FirstGroup shareholder approval and regulatory approval, though it is expected to be completed in the second half of 2021.

RITES submits report on Guwahati Metro Rail Project of India Railway Consultancy firm RITES Limited has submitted Comprehensive Mobility Plan and Analysis Report to Guwahati Metropolitan Development Authority (GMDA) for implementation of Mass Rapid Transit System for Guwahati city. The firm has recommended low cost Metrolite system after taking all suggestions in to consideration. The report will now send to Transport Department of Assam State and then to state cabinet for approval.

Stephanie Wiggins appointed as CEO of Angeles Metro

Los

Stephanie Wiggins has been announced as the new CEO of Los Angeles Metro (LA Metro), after the board of directors voted to appoint her this week. Wiggins, currently the CEO of Metrolink (a transportation authority in Southern California), will be the first woman, and the first

URBAN TRANSPORT INFRASTRUCTURE MAY 2021

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URBAN TRANSPORT INFRASTRUCTURE MAY 2021

COVER STORY

Touching Bullet Speeds Investment opportunities in Indian Railways

Industry Scenario The Indian Railways' freight revenues in 2020 were worth $11.8 bn. Coal and Coke had the highest freight revenue during this period.

ndia has the fourth-largest railway system in the world, behind only US, Russia and China. The Indian rail network has 123,542 km of total tracks over a 67,415 km route and about 7,300 stations. The railways run close to 13,000 passenger trains that carry over 23 mn passengers daily. The Indian Railways transported over 109.68MT of freight in November 2020. Indian Railways is the single largest employer in India and eighth largest in the world; employing close to 1.4 mn people. • • • •

Vision 2024 has been envisaged to achieve targets of 2024 MT freight loading by 2024 Indian Railways envisages a prospective investment of $190 bn in the next 5 years Mumbai-Ahmedabad high-speed rail project sanctioned at a total cost of $15 bn Railway Electrification works completed on a total of 5,782 Route kms during the year

100% FDI allowed in railway infrastructure under the automatic route.

URBAN TRANSPORT INFRASTRUCTURE MAY 2021

Indian Railways aspires to add 1.5% to the country’s GDP by building infrastructure to support 40% modal freight share of the economy. The Indian Railways clocked a 3% increase in freight revenue in 2020-21 and the quantum of goods loaded grew by 2%. Two Dedicated Freight Corridors (DFC), one on the Western route (Jawaharlal Nehru Port to Dadri) and another on the Eastern route (Ludhiana to Dankuni), have been fast-tracked. The Indian Railways is looking to electrify the entire network by 2025 which will lead to energy savings of $1.55 bn. India Railways is focused on: • 3,360 km dedicated freight corridors by June 2022 • 700 stations to be fed with solar power in the medium term • The Ministry of Railways has decided to redevelop 90 railway stations into world-class transit hubs • Creating private investments worth $4 bn through Public-Private Partnerships • 100% electrification of Broad-Gauge routes to be completed by December, 2023

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COVER STORY

Growth Drivers •

• • • • •

Rising passenger & freight traffic: Increasing urbanization, rising incomes (both rural and urban), growing industrialization across the country along with private sector participation Increasing freight traffic: Growing industrialization across the country Dedicated freight corridor: Six high-capacity, highspeed dedicated freight corridors Freight Business Development Portal: One-stop cargo solution for seamless goods transportation Diamond Quadrilateral network of high-speed rail: Connecting major metros and growth centers of the country Atmanirbhar Bharat Abhiyaan - Self Reliant India: Special economic and comprehensive package of INR 20 lakh crores towards promoting manufacturing in India

Investment Opportunities Project

Approx. Investment

States

Manufacturing of Passenger Coach Project

US$ 16.67 bn

Electric Locomotive Production Project

US$ 11.15bn

Private Train Operations Project

US$ 4.11bn

Madhepura Electric Locomotive Procurement Project

US$3.84bn

High Speed Rail Corridors Under Construction • Mumbai – Ahmedabad HSR: 508 km Planned • Delhi – Varanasi HSR: 865 km • Delhi – Ahmedabad HSR: 886 km • Mumbai – Nagpur HSR: 753 km • Mumbai – Hyderabad HSR: 711 km • Chennai – Mysuru HSR: 435 km • Delhi – Amritsar HSR: 459 km

Dedicated Freight Corridors Under Construction • Western Dedicated Freight Corridor: 1504 km • Eastern Dedicated Freight Corridor: 1856 km

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Planned • East Coast Corridor: 1114 km • East West Sub Corridor – I: 1645 km • East West Sub Corridor – II: 195 km • North South Sub Corridor: 975 km

Upcoming Projects/Opportunities Modernisation of Railway Infrastructure • 33,000 km of railways to be electrified by 2023 at a cost of USD 2bn per annum • Work on tracks over 16,000 km long (Multi-tracking – 14,000 km, Gauge Conversion – 2,200 km) to be completed by 2024 at a cost of USD 3bn per annum • Delhi-Mumbai & Delhi – Howrah (total 3,000 km) to be upgraded to 160 km/h through track and signalling investments Private Participation • Re-development of 50 railway stations through PPP model • Privatisation of passenger train operations on 100 routes with 150 privately procured trains • Establishment of 40 private freight terminals annually at a cost of USD 70mn • Private ownership of freight rolling stock Metropolitan Transit • 8 Rapid Rail Transport Systems (RRTS) connecting important urban corridors • Metro rail transit system in 50+ cities Revenue growth of the Indian Railways has been strong over the years. Indian Railways’ gross revenue stood at US$ 24.78 billion in FY20. RailTel, a PSU under the Railway Ministry, which provides fast and free Wi-Fi across the Indian Railways network, announced its highest ever consolidated income of Rs. 11,660.05 million (US$ 158.48 million) for FY19-20. This income figure is a growth of 12.3% over the consolidated income of the financial year FY18-19. Freight earnings in FY20 stood at US$ 16.24 billion. Passenger earnings for Indian Railways was estimated at US$ 7.25 billion in FY20. Freight remains the major revenue earning segment for the Railways and accounted for 64% of its total revenue in FY20, followed by the passenger segment. On July 27, 2020, the average speed of freight trains was 46.16 kmph, which is more than double as compared to last year on the same date (22.52 kmph), and total loading stood at 3.13 million tonnes. In November 2020, Indian Railways freight loading stood at 109.68 million tonnes, compared with 100.96 million tonnes in the same month last year. The Indian Railways earned Rs. 10,657.66 crore (US$ 1.44 billion) from freight loading; this increased by Rs 449.79 crores (US$ 61.13

URBAN TRANSPORT INFRASTRUCTURE MAY 2021

COVER STORY

million) or 4% compared with Rs. 10,207.87 crore (US$ 1.38 billion) in the same month last year. In November 2020, India Railways announced that 40% of dedicated freight corridor (DFC) will be opened for traffic by endFY21, while the entire 2,800 km route will be completed by June 2022. Passenger traffic was valued at 8.10 billion and freight traffic at 1,208.34 million tonnes in FY20. The punctuality performance of Indian Railways for mail and express trains increased to 75.67% during AprilDecember 2019 compared to 68.19% during the same period last year. Under the Union Budget 2021-22, the government allocated Rs. 110,054.64 crore (US$ 15.19 billion) to the Ministry of Railways. FDI Inflow in railway-related components stood at US$ 1.12 billion from April 2000 to September 2020. Under the Union Budget 2021-22, the government allotted Rs. 1,803.01 crore (US$ 249.07 million) for gauge conversion, Rs. 3,000 crore (US$ 414.43 million) for doubling tracks, Rs. 6,815.36 crore (US$ 941.51 million) for rolling stock and Rs. 2,448.30 crore (US$ 338.22 million) for signalling and telecom. With increasing participation expected from private players, domestic and foreign, due to favourable policy measures, both passenger and freight traffic is expected to grow rapidly over the medium to long term. Govt. of India’s focus on infrastructure is a major factor which will accelerate growth of railways. Railways infrastructure plans to invest Rs 50 lakh crore (US$ 715.41 billion) by 2030. In FY20, 15 critical projects of around 562 kms track length worth Rs 5,622 crore (US$ 797.56 million) were completed, out of which, 13 were commissioned by railways. Railways completed electrification on a total of 5,782 route kms during the same year. Indian Railways completed eight major capacity enhancement projects by taking advantage of the coronavirus lockdown. These projects included three super critical projects with a combined length of 68km, three critical projects with a combined length of 45km, upgradation of the entire 389km railway line from Jhajha in Bihar to Pt. Deen Dayal Upadhyaya junction in Uttar Pradesh and a new 82km port connectivity line to Paradip. As a part of the Railways’ plans to upgrade its network, the Ministry announced that all non-AC sleeper coaches will be replaced by AC coaches for trains running >130 kmph. This move has been taken as a technical necessity for high-

URBAN TRANSPORT INFRASTRUCTURE MAY 2021

speed trains with the bonus of improving passenger experience. Indian Railways is also looking at other areas of revenue generation such as the following: a) Change in composition of coaches so that it can push the more profitable AC coach travel; b) Additional revenue streams by monetising traffic on its digital booking IRCTC; and c) Disinvesting IRCTC. In January 2021, Hyundai Motor India Ltd. (HMIL) has announced that it has exported 125 cars to Nepal via the Indian Railways. The export is claimed to be eco-friendly and the first-ever by the company. With this step, the company is aiming to reduce carbon footprint by 20,260 tonnes. On November 26, 2020, National High-Speed Rail Corporation Limited (NHSRCL) signed an agreement with L&T to design and construct 47% alignment works for Mumbai-Ahmedabad bullet train project. In November 2020, Indian Railways’ Rail Coach Factory (RCF), in Kapurthala, rolled out a semi high-speed doubledecker coach. Equipped with the modern amenities and design, the coach can run at a top speed of up to 160 km/h. In February 2021, Indian Railways called for ‘Request for Qualification (RFQ)’ for redeveloping New Delhi railway station under a public-private partnership, with an estimated project cost of Rs. 5,000 crore (US$ 690.75 million). Railways is leading India’s fight against climate challenge and is taking significant steps towards meeting its ambitious goal of being a net zero carbon emissions organisation by 2030 and meeting India’s Intended Nationally Determined Contributions (INDC) targets.

Alstom, a leading sustainable mobility provider, has successfully manufactured and delivered the 100th electric locomotive to Indian Railways on May 3, 2021. The delivery is part of the contract worth €3.5 billion (INR 25,000 crores), signed between the ministry of railways and Alstom in 2015 which led to the creation of a joint venture for the project and the largest foreign direct investment project of the Railways. The company will be supplying 800 fully electric high-powered double-section locomotives of 12,000 HP (9 MW) for freight service, capable of hauling 6,000 tonnes at a speed of 120 km/hr.

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COVER STORY

Government initiatives Few recent initiatives taken up by the Government are: • Under the Union Budget 2021-22, the government allocated Rs. 110,054.64 crore (US$ 15.19 billion) to the Ministry of Railways. • In February 2021, Minister of Railways Mr. Piyush Goyal dedicated 88 Railway projects to the country worth Rs. 1000 crore (US$ 138.14 million) in the states of Kerala, Tamil Nadu, Madhya Pradesh, West Bengal and Karnataka. • In February 2021, Indian Railways called for ‘Request for Qualification (RFQ)’ for redeveloping New Delhi railway station under a public-private partnership, with an estimated project cost of Rs. 5,000 crore (US$ 690.75 million). • To boost rail infrastructure and make the Indian Railways network future ready, Indian Railways has identified 56 projects across the country in various zones to be completed by Feb-Mar 2021 and FY22. • In July 2020, the Ministry of Railways has invited ‘Request for Qualifications (RFQ) for private participation in operating passenger train services across 109 Origin Destination (OD) routes. As part of the plan, the railways will introduce 12 trains in FY23, 45 in FY24, 50 in FY26 and 44 more in the next fiscal, taking the total number of trains to 151 by the FY27. The project would entail private sector investments of about Rs. 30,000 crore (US$ 4.09 billion). • In November 2020, Indian Railways developed antiCOVID-19 coach to prevent the spread of coronavirus. This anti-COVID-19 coach has hands-free water tanks and flushes; copper-coated handles and locks. • The Railway Minister, Mr. Piyush Goyal, announced on November 29, 2020, that tea will be sold in environment friendly 'Kulhads' (earthen cups) in place of plastic cups at all railway stations in the country. Currently, >400 railways stations serve tea in ‘Kulhads’. This strategy will be the contribution of the Indian Railways towards a plastic-free India. • As of October 2020, the Railway Ministry issued a policy to develop goods shed facilities at small/roadside railway stations aimed at augmenting terminal capacity through the participation of the private sector. Private parties are allowed to develop a goods wharf, utilities for labourers (resting space, drinking water, etc.), approach roads, loading and unloading docks, and other related infrastructure. • On September 22, 2020, Indian Railways sanctioned a feasibility study for seven bullet train projects - all open to PPP investments. • In July 2020, The Ministry of Railways decided to create a special cell, Project Development Cell (PDC), in the railway board to increase investments and inflow of foreign direct investment (FDI).

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Dedicated Freight Corridor Corp. of India Ltd (DFCCIL) is already building the first two freight corridors - Eastern Freight Corridor from Ludhiana to Dankuni (1,856 kms) and Western Freight Corridor from Dadri to Jawaharlal Nehru Port (1,504 kms) - at a total cost of Rs 81,000 crore (US$ 11.59 billion). The Government is going to come up with a ‘National Rail Plan’ to enable the country to integrate its rail network with other modes of transport and develop a multi-modal transportation network. A 'New Online Vendor Registration System' has been launched by Research Designs & Standards Organisation (RDSO), the research arm of Indian Railways, to have digital and transparent systems and procedures.

Road Ahead Indian Railway network is growing at a healthy rate. In the next five years, Indian railway market will be the third largest, accounting for 10% of the global market. Indian Railways, which is one of the country's biggest employers, can generate one million jobs, according to Mr Piyush Goyal, Union Minister for Railways and Coal. The government has announced two key initiatives for seeking private investments-running passenger trains by private operators across the railways network and redevelopment of railway stations across the country. According to Indian Railways, these projects have the potential of bringing an investment of over US$ 7.5 billion in the next five years. Indian Railways is also looking at other areas of revenue generation such as the following: a) Change in composition of coaches so that it can push the more profitable AC coach travel; b) Additional revenue streams by monetising traffic on its digital booking IRCTC; and c) Disinvesting IRCTC. Indian Railways is targeting to increase its freight traffic to 3.3 billion tonnes by 2030 from 1.1 billion tonnes in 2017. Indian Railways plans to achieve 2,024 MT (metric tonne) loading in 2024 from the current 1,200-1,300 MT. It is projected that freight traffic via the Dedicated Freight Corridors will increase at a CAGR of 5.4% to 182 MT in 2021-22 from 140 MT in 2016-17. As part of the National Rail Plan for 2030, Indian Railways is expected to create a future-ready railway system by 2030 to bring down logistics cost and ensure 100% electrification of broad rail routes by December 2023. *** [Data Source: National Investment Pipeline (NIP)]

URBAN TRANSPORT INFRASTRUCTURE MAY 2021

INTERVIEW

During more than one year, we are absolute in compliance with the guidance of Government to limit the spread of the virus. STAY SAFE EVERYDAY is our working orientation throughout the pandemic. Thanks to that, there was not a single effected case of Covid-19 in Vinh Hung JSC and our company still operates normally. -

LUONG VO TA, General Director, Vinh Hung JSC, Vietnam

Established in 2006, Vinh Hung Trading, Consulting and Construction Joint Stock Company (Vinh Hung JSC) has become a leader in supplying products and technological solutions for transportation and industrial construction. Vinh Hung sale’s network spreads throughout the country with the Head office based in Ha Noi, the Branch located in Ho Chi Minh city and the Representative office located in Da Nang. The company has played an important role in creating competitive advantages of Vinh Hung brand name, contributing to ensuring sustainable development of the Company on three fields: “Trading, Manufacturing, and Construction”. An interview with Mr. Luong Vo Ta - General Director of Vinh Hung JSC about how the enterprise approaches to Asian markets, especially to India during the Covid-19 pandemic and the opportunities along with challenges of Vinh Hung when expanding exports to these markets.

URBAN TRANSPORT INFRASTRUCTURE MAY 2021

Can you share with our readers how Covid-19 situation updates is in Vietnam? As of April 1st, 2021, there have been 2.603 total infections of coronavirus in Vietnam. At the moment, Vietnam has recorded 35 deaths related to the pandemic so far. Vietnam never had a national lockdown and we try to localize the lockdown and limit the area, as small as possible. In 2020, Vietnamese Government estimates showed economy growing 2.9% and set to grow 6.6% in 2021. Although this is the slowest rate in more than 30 years, it still proves Vietnam to be a rare winner from the Covid-19 pandemic. Sharing long border with China, Vietnam has appeared the first infected case since late January 2020. Right from that time, we has taken very drastic measures that most other countries had only implemented from March-April 2020 to against Covid-19 such as: • Closing the border, banning flights from China • Testing and the mass, centralized quarantine of tens of thousands of people. • Strengthening the propaganda to prevent epidemics • Compulsory wearing masks in public places, spraying bacteria frequently, etc. That is how we successfully contained Covid-19 and fulfilled the government's dual goals of controlling the epidemic while maintaining economic growth How has Covid -19 affected Vietnamese enterprises? Like businesses in the world, Vietnamese enterprises were negative affected by the pandemic. When the first outbreak happened, enterprises were very confused, many factories closed, consumption decreased, and foreign investment decreased suddenly. Especially, Vietnam has a very high ratio of exports and imports to GDP (198%) so its economy depends a lot on the international market. As a results, we were affected strongly when the pandemic broke out around the world.

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INTERVIEW

However, after efforts as mentioned above, Vietnam proclaimed success in containing the coronavirus and positioned itself as a safe place to do business, and capitalized on demand from international manufacturers looking to diversify their supply chains away from China. Exporters have more chances to expanding to global market while manufacturers in the world are stagnant because of the pandemic. These factors have helped Vietnamese businesses in general and our company in particular to quickly recover and made the macro economy of Vietnam an impressive growth in 2020 and the first quarter of 2021. What is the secret of Vinh Hung JSC to overcome the difficulties caused by the Covid-19 pandemic? The first and foremost reason as I mentioned above was Vietnam’s Covid-19 response success. Besides, the government implements a policy of "dual goals" to promote economic development where transport infrastructure is a priority sector. In 2020, a series of key national projects were invested and focused mainly on the Eastern cluster of the North-South Expressway and the North-South High-Speed Railway (HSR), Long Thanh International Airport Project, Terminal T3 Project in Tan Son Nhat International Airport. This policy has exploded the demand for our company's products. On the company side, we thoroughly implement 5 main strategies: •

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Compliance with the guidance of the Ministry of Health to limit the spread of the virus. Thanks to that, there was not a single case of Covid-19 in our company and our company still operates normally. Applying technologies to reduce face-to-face interaction and increase productivity. Investing in modern machinery and equipment to increase the manufacturing capacity. Besides, the production management and quality control systems are standardized in accordance with international standards. In 2020, we was certified with ISO 3834 and EN1090-2 (Exclusive class 3). Increasing the quality of technical and sales team to capture opportunities in the booming development of the domestic market. In addition to exploiting traditional markets such as the Philippines, Brunei, and Indonesia which are currently working with major partners from Spain, Korea, we promote to explore new markets such as India, Singapore, Thailand, etc. I evaluate these countries as potential markets with high demand in the coming time.

India is the 5th largest economy, 7th largest area, and the largest population in the world. This country is also the most dynamic economy in the world in recent years. According to our research information, the Indian government is investing great resources to the development of transport infrastructure. According to statistics, the average import-export turnover between Vietnam - India in 2020 reached about 1 billion USD per month on average. The number shows that Vietnam – India have become important economic partners of each other, two-way trade turnover has grown strongly and sustainably. Currently, India is one of the 10 largest trading partners of Vietnam, and Vietnam is one of India's leading trade partners in ASEAN region. In addition, that India has also cut import duty and anti-dumping duty on some iron and steel products from Vietnam creates favorable conditions for Vinh Hung to bring products into this country. However, the differences in culture and business environments between Vietnam and India is the most difficult challenge for us. Moreover, there should be an effort to develop cooperation in Covid-19 time when we can not visit each others or have directly interaction. How has Vinh Hung JSC approach Indian market recently? Working with our India partners, we can see that India has very high demand on the quality of goods. Providing high quality products is a core value that our company bring to each customer. When approaching Indian market, Vinh Hung JSC already has experience working with large international corporations in Vietnam as well as in the Philippines, Indonesia, Brunei. In each area, we listen, adapt and renovate – so we can successfully improve productivity and performance regionally. Besides, our products are in accordance with international standard certification such as ISO 9001-2015, ISO3834, EN1090-2 so I believe we can meet the distinct standards such as IRC standards set by the Govt. of India. In addition, Vietnam has local strengths that not many countries have such as cheap high-skilled labor, convenient maritime transportation with low cost and strong foundation in mechanical engineering. Therefore, we confidently provide products with affordable price but international insights in competition with suppliers from China, Korea and European countries. ***

What is your assessment of the opportunities and challenges of the Indian market for Vinh Hung JSC?

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URBAN TRANSPORT INFRASTRUCTURE MAY 2021

PROJECT FINANCING

The Role of Development Financial Institutions in Infrastructure Development provide the financing needed in the developing world. Development Banks can thus be key players for development by providing long-term financing directly from their own funding sources, by tapping into new sources and by leveraging additional resources, including private, through the co-financing of projects with other partners.

Gulzar Natarajan IAS & MD, AP State Finance Corporation

In brief, Development Financial Institutions also designated as Development Banks are often equated with the institutions which supply the capital to meet economic development objectives. These institutions are meant to provide long term finance to agriculture, industries, trade, transport, and basic infrastructure.

World Bank survey defines a development bank as ‘a bank or financial institution with at least 30 per cent State-owned equity that has been given an explicit legal mandate to reach socioeconomic goals in a region, sector or particular market segment’. It uses the terms Development Bank and Development Financial Institution interchangeably. According to UNCTAD, Development Banks are needed to bridge finance from end-savers to development projects. Such bridging should be done by Development Banks at all levels national, regional and international – in order to

URBAN TRANSPORT INFRASTRUCTURE MAY 2021

A DFI provides financing for development activities at less than strictly commercial terms. It delivers this through technical assistance grants, structured loans, different types of guarantees and credit enhancement and sometimes even equity. It is interesting that in the discussions on development banking, no distinction is made between the bank and nonbank development finance institution. The terms Development Financial Institution and Infrastructure Finance Institution and National Development Bank and Development Financial Institution are often used interchangeably. But, these are essentially different types of institutions, with different purposes.

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PROJECT FINANCING

The distinction in case of development and infrastructure financing institutions concerns their respective financing purposes. Infrastructure is only one of the development sectors. Also, there are important differences between lending for industrial and infrastructure purposes. For a start, unlike the shorter-term working capital requirements of the industry, infrastructure requires long-term capital. Further, the risk-returns profile of infrastructure compared to industrial lending are very different. The risks, especially with construction, are much higher than with many other sectors. A Development Financial Institution (DFI) is an institution that provides long-term finance for development. The National Development Bank is a type of DFI. As the name suggests, it is a deposit-taking bank. In contrast, a majority of DFIs are non-deposit taking institutions. The strength and resilience of banks arise from their access to information (about their customers) and their cash-flow patterns. The provision of short-term working capital sits well with their strengths. In contrast, the provision of longterm capital expenditure does not. Banks are therefore well placed to provide working capital finance, but face assetliability mismatches when making long-term loans to infrastructure projects. There are three different institutional forms for a DFI. First, deposit-taking wholesale banks. Second, non-deposit taking financial institutions. Finally, there are the offbalance-sheet entities like infrastructure funds. The RBI defines a non-deposit accepting, non-banking finance company, called Infrastructure Finance Company (IFCNBFC). A minimum of 75 per cent of its assets should be in infrastructure loans, and it should have a minimum Net Owned Funds of INR 3 bn. The wholesale banks could meet long-term financing requirements. Non-deposit taking institutions, with appropriate capital sources, are well placed to provide longterm capital. Off-balance sheet entities, while more likely to enjoy an arms-length relationship with their owners, could also create principal-agent related governance challenges. They could also be vulnerable to accumulating unsustainable leverage. DFIs can be either wholly or partially owned by the government. A few have majority private ownership. The shareholding pattern is largely determined by the nature of the activities being financed, and their associated riskreturns profile. Fully government-owned DFIs are risk-tolerant and are more likely to offer patient capital to invest in emerging technologies and infrastructure sectors. They would also be willing to accept less than commercial returns and offer

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debt at concessional terms. Further, such an entity will be able to ensure credit flows even in a downturn, thereby serving as an automatic economic stabilizer. Their objective function seeks to maximise development objectives, even at the cost of returns.

DFIs can be either wholly or partially owned by the government. A few have majority private ownership. The shareholding pattern is largely determined by the nature of the activities being financed, and their associated risk-returns profile. However, ownership introduces issues of governance. Governments usually do not maintain arms-length relationships with the management of organizations that they fully own. And DFIs that are majority privatelyowned struggle to reconcile their pursuit of development objectives with shareholder preference for profit maximization. There are two broad categories of incorporation and associated regulation in the case of financial institutions. There are institutional and instrument-based regulations. This can also overlap, with the institution itself having one regulator and a separate regulator for specific instruments offered by that institution. There are some DFIs which are established directly by the statute. The statute prescribes the regulator for the institution. Currently, NABARD, NHB, SIDBI, and EXIM Bank are the only four statutory DFIs. The Reserve Bank of India regulates them under the Banking Regulation Act 1949. The remaining are incorporated as non-banking financial corporations (NBFCs) under the Indian Companies Act 1956. Depending on the nature of their activities, they register with different types of regulatory agencies. The RBI, SEBI, NHB, IRDA, and Registrar of Companies are all regulators for different kinds of NBFCs. In the context of financial market instruments, pooled investment funds not covered under the Securities and Exchanges Board of India (SEBI) (Mutual Funds) Regulations 1996, are regulated under the SEBI (Alternative Investment Funds) Regulations 2012. They include private equity, venture capital, hedge funds,

URBAN TRANSPORT INFRASTRUCTURE MAY 2021

PROJECT FINANCING

infrastructure funds, etc. Examples of instrumental regulation are the Infrastructure Debt Funds registered with the Securities and Exchanges Board of India while the issuing institution, the India Infrastructure Finance Corporation Limited (IIFCL) is institutionally under the regulation of the RBI and the National Infrastructure Investment Fund (NIIF) which is an Alternative Investment Fund regulated by SEBI. Complicating matters, sometimes DFIs can be both a market maker in terms of refinancing or even direct lending, and also be regulating and supervising institution. In India, the National Housing Bank (NHB) does both refinancings of housing finance companies (HFCs) as well as their regulation and supervision. The funds for lending can come from either the government or the market. In this context, it is important to keep in mind that DFIs can serve their purpose of being catalytic if they have access to relatively cheap sources of financing. So concessional or semi-guaranteed public debt, low-cost deposits, institutional savings, and government transfers are perhaps the most appropriate forms of capital for lending. In the pre-liberalization era, the RBI printed money and refinanced DFIs. However, post-liberalization, DFIs have had to raise money from the market through bond offerings in the capital market and through private placements. DFIs also benefit from permissions to issue tax-free bonds. The long gestation of infrastructure projects means that they require long-term capital. Such capital is typically supplied by pension and provident funds, insurers, postoffice savings, and other long-term savings sources. The DFIs could even float sector-specific funds that would attract investors. They also access long-term credit from multilateral development institutions. Further, these funds can also come from either internal or external sources. Recently established institutions like the NIIF have sought to raise capital from sovereign wealth funds, pension funds, and insurers. For external financing to be sustainable, the expenditures or revenues, ideally both, have to be in foreign currency. This would help avoid currency mismatches that happen when revenues of the foreign currency financed investment are in the local currency. Infrastructure projects, with local currency revenues, are therefore best financed by local currency debt.

exports. Broadly focused ones tend to cover some or all of these sectors. Each of these activities has its unique financing requirements – use of funds, the tenor of funding, amounts involved, etc. The nature of these activities also determines the source of funding for these DFIs themselves.

The long gestation of infrastructure projects means that they require long-term capital. Such capital is typically supplied by pension and provident funds, insurers, post-office savings, and other long-term savings sources. The DFIs could even float sectorspecific funds that would attract investors. They also access longterm credit from multilateral development institutions. DFIs can both take equity in the project or provide debt. Equity investments by DFIs could de-risk investments for private investors besides lowering the cost of capital of privately raised debt. On a related note, they can also be under-writers for equity raising. The refinance role is most often a very stable source of income and invariably this part of the DFI balance sheet that could also off-set the losses on the direct lending side. Most often, the positive glow of profitability on DFI balance sheets can be traced to the dominance of refinancing activities and lending to captive government borrowers. *** Author is 1999 batch IAS Officer and currently serving as Managing Director at Andhra Pradesh State Finance Corporation. Views are personal.

DFIs can have a specific sectoral or broad focus. The specific sector ones typically cover infrastructure, core industries, small and medium enterprises, agriculture, and

URBAN TRANSPORT INFRASTRUCTURE MAY 2021

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INTERVIEW

Liksutov on Moscow Metro Maxim Liksutov, Deputy Mayor and Head of the Department of Transport and Road Infrastructure Development, Moscow in his interview spoke about the plans and results of Moscow Metro. Troika smart card Noting the high demand among passengers using the Troika transport card in Moscow and the Moscow region, more than 40 regions of the Russian Federation are considering a similar possibility of introducing the Troika card. This use of the transport card will facilitate the convenient movement of passengers on public transport not only in Moscow, but also in all regions of the country. In his interview, Head of the Department of Transport and Road Infrastructure Development – Maxim Liksutov spoke about the experience of using the Troika in the Tula region:

Six months of our joint work have shown that there is about 10-15% more passengers, because it is easier for people to use the card - there are no barriers. People come from the Tula Region and easily pay for travel in Moscow. Muscovites come to the Tula region and pay for travel there. The same thing happens in the Moscow Region. Now the Troika transport card operates on 700 routes. About female drivers At the beginning of the year, the first female drivers appeared on Line 4 of Moscow Metro. At the moment, the metro Training Center has additionally recruited about 10 female drivers, who will complete their training in the near future and go to work on the line. “We are thinking about how to expand the staff of our drivers, and give the opportunity to work on other metro lines. But we seriously expect that the number of female

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drivers in Moscow Metro will increase, because there are many willing drivers. If they want to be train drivers, then we have to make sure that they feel good and comfortable,” said Maxim Liksutov. Restoration of stations Not so long ago, Moscow Metro received a special permit from the Ministry of Culture of the Russian Federation, which gave the right to restore the stations themselves, recognized as historical objects. “The Mayor of Moscow has set us the task of trying to return the original appearance of the stations, as they were when they were opened. We find archival drawings, documents, and sometimes ask the relatives of the architects and engineers who built these stations if they still have useful materials at home. We try to take this into account in our work, and we treat every station, every detail very carefully, understanding the huge responsibility. We want to return and preserve the value of the wonderful objects of Moscow Metro,” said Maxim Liksutov. It should be noted that the restoration of the Smolenskaya station, which has been restored to its original appearance since its opening, 67 years ago, will be completed very soon. Face Pay Maxim Liksutov also said that the method of paying for travel using a person face, or Face Pay, is planned to be launched at all Moscow Metro stations by the end of the year. According to him, for several months, Face Pay is being tested at several Moscow Metro stations.

URBAN TRANSPORT INFRASTRUCTURE MAY 2021

PROJECT PLANNING

Issues and Risks for Monorail Projects and Metro Systems  Institute of Urban Transport, New Delhi

onorail and Metro Rail Systems are essentially grade separated high capacity public transport systems. Metro Rail is the highest in the hierarchy of public transport systems. It requires an exclusive, completely gradeseparated alignment, underground or elevated structures. It is a high-capacity system with a train with four to ten cars and carrying capacity up to 80,000 Per Hour per Direction Traffic (PHPDT). It is costly to build, operate and maintain. Nonetheless, for corridors with a PHPDT of over 25 to 30 thousand, it is the only system which works. At present more than 175 cities in the world have operational metro rail, while 50 more are in the process of constructing it – 25 of them in China and 9 of them in India itself. Monorail is a sleek, elevated mass rapid transit system which operates on a single beam (normally concrete) guide way and with rubber tiered wheels. It can be built to efficiently serve areas dominated by high-rises and sharp turns and where metro rail cannot penetrate. Its traction system is typically 750 volt DC. It can be configured to run as a driver less system. It is known to carry up to 15000 PHPDT.

URBAN TRANSPORT INFRASTRUCTURE MAY 2021

Use of Monorail is relatively limited; about 10 locations for public transport around the World. In India the monorail system is under construction in Mumbai- and its PHPDT in first and last year of Project life is estimated between 7000-8500 PHPDT. Similarly, the latest DPR of Kozhikode puts the first and last year peak PHPDT as 7000-11500 approximately. Issues in Procurement and Implementation of Mass Rapid Transit Projects The procurement of Urban Mass Rapid Transit Systems e.g. MRT/ Monorail could be achieved either through a conventional contracting process or through a private sector led PPP format. Conventional contracting process does not include financing by the contractor while PPP includes private financing including operational and management efficiencies. The type of conventional contracting process to be used depends on the extent to which the project has been defined (Designed). FIRM FIXED-PRICE CONTRACTS are used when the project can be fully defined with detailed specifications. Otherwise FIXED-PRICE WITH PRICE ADJUSTMENT format may be used. When it is not possible at the time of placing the contract to estimate the extent or duration of the work or to anticipate costs with any substantial accuracy time-and-materials contracts or cost.

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PROJECT PLANNING

Reimbursement contracts can be used. Incentive contracts are sometimes used to harness the profit motive to stimulate the contractor to perform at a lower cost, to produce a better product or service, or to cut down lead time in delivery dates. PPPs contemplate the private sector being responsible and financially liable for performing all or a significant number of functions in connection with a project. Agencies use PPP delivery approach to obtain time and cost savings and better quality projects with reduced risks to the project sponsor. PPP format may vary according to the scope of responsibility and degree of risk assumed by the private partner.

PPPs contemplate the private sector being responsible and financially liable for performing all or a significant number of functions in connection with a project. Agencies use PPP delivery approach to obtain time and cost savings and better quality projects with reduced risks to the project sponsor. Under a Design-Build contract, the risks may be assigned to the party best able to handle them. For example private sector may be better equipped to handle the risks associated with design quality, construction costs, leveraging / raising finances and adherence to the delivery schedule while the public sector may be better able to manage the public risks of environmental clearance, and right-of-way acquisition. Design-Build-Operate-Maintain and Build-OperateTransfer approach offers increased incentives for the delivery of a better quality plan and project. Design-BuildFinance-Operate and Design-Build-Finance-OperateMaintain in addition makes the contractor responsible for all or a major part of the project’s financing and transfers the financial risks to the private partner during the contract period. Under the Build-Own-Operate approach, the private partner owns the facility and is assigned all operating revenue risk and any surplus revenues for the life of the facility. Risks in Procurement and Implementation of Mass Rapid Transit Projects The main risks involved in MRT / Monorail projects at pre-development stage, during development stage and during operations stage can be categorized as : Political

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Risks, Construction Risks, Market and Revenue Risks, Finance Risks, Legal Risks and Operating Risks. In addition, contracts commonly address Force Majeure and legal liability because they have proven to be sources of time and cost overruns. Political risk concerns government actions that affect the ability to generate earnings. These include termination of the concession, the imposition of taxes or regulations, restrictions on the ability to collect or raise passenger tariff etc. Construction risks i.e. design changes and unforeseen weather conditions during the construction phase lead to time and cost overrun. The private sector typically bears primary responsibility for the construction uncertainties and attempts to cover it through insurance. Demand uncertainty continues to be a major factor in most of the projects. Traffic and tariff levels may not be sufficient to cover all costs, including construction, operation and maintenance. The private sector fully depends upon the government for the handling of the traffic and revenue risks. Financial risk is the risk that project cash flows might be insufficient to cover debt service and then pay an adequate return on sponsor equity. Financial risks are best borne by the private sector but a substantial government risk sharing is required either through viability gap funding (VGF) , revenue or debt guarantees or through participation by state or multilateral development institutions. Legal risks stem from weak implementation of regulatory commitments built into the contracts and the laws or other legal instruments that are relevant to the value of the transactions as it was originally assessed. Operating risks are the risks that emerge at the time of the operations of the project. It can also involve the risks like force majeure risks that are beyond the control of both the public and private partners, such as fire or earthquakes, or other non-political factors such as strikes and industrial

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PROJECT PLANNING

disturbances that impair the project’s ability to earn revenues. Sometimes private insurance is becoming available for catastrophic risks but generally public sector is faced with the need to restructure the project if such disaster or problem occurs.

Secondly risk of derailment i.e. wheels jumping the rails is higher in the case of Metro rail systems than the monorail. Thirdly, the arrangement for emergency evacuation in case of Monorail system is more complicated than the Metro rail. Instruments for Mitigating Financial Risks

Risks – Metro Rail Vs. Monorail

Instruments for mitigating Urban Transit Risks mainly rely on Government providing equity guarantees, debt guarantees, exchange rate guarantees, grants/subsidies, subordinated loans, minimum traffic and revenue guarantees, shadow revenue and opportunities for concession extensions and revenue enhancements.

Political risks, market and revenue risks, financial risks and legal risks are same for both MRT and Monorail projects. Construction risks are faced by both modes. Metro rail faces more risks than monorail due to more requirement of scarce urban land for ROW, specially because metro rail requires flat curves (Desirable 300m radius) than Monorail (50-70 m radius). On the other hand Monorail procurement carries more risks than Metro rail as number of suppliers is limited. Operating risks are more in the case of Monorail as the technology finds limited use around the World and is new to India. Hence absorption of technology for construction, operation and maintenance and availability of spare parts could pose a threat to reliability of service. There is no ongoing innovation/research process currently undertaken in India. On the other hand, Metro rail systems around the World and in India are already stabilized as far as technology acceptance and availability of manufacturing infrastructure (for spare parts etc.) in the country.

Conclusion Metro rail and monorail do not substitute for each other. Metro rail is a high capacity mode and monorail is a medium capacity mode. Each has its own limitations and application. Monorail can be introduced in narrow width roads because it uses two beams only and not an elevated deck which would block light and air underneath. Procurement, construction and operation risks in a monorail are higher than for Metro rail because of limited use (experience with operation) and new technology. ***

TRANSPORT BUDGET

Canada's Budget 2021: Low-Carbon Transit Technologies Transforming Canada for the Better

his month, Canada finds itself in a unique position. Minister of Finance, Chrystia Freeland, has just transformed the future of this country’s transportation landscape via her inaugural budget. It's a 700-page tome of budgetary incentivization that will – without a doubt – alter the face of Canada’s transportation-energy matrix for generations to come. The investments made in Budget 2021 will result in a mobility landscape that looks, unlike anything Canadians have experienced before. It's one that puts transit and shared mobility at the forefront of a shift away from automotive-focused transportation paradigms that languish with waning 20th-century energy systems. As Canadians, we’ve had a few trial runs in the lead up to this budgetary moment. The federal budget released on April 19, 2021 also contains investments that have the potential to reduce about 40 percent of Canada’s greenhouse gas emissions (all from transportation), while motivating a fundamental redesign of our cities at the road and side-walk level. Trial runs for this budgetary moment As Canadians, we’ve had a few trials runs in the lead-up to this budgetary moment.

URBAN TRANSPORT INFRASTRUCTURE MAY 2021

Josipa G Petrunic President & CEO Canadian Urban Transit Research & Innovation Consortium (CUTRIC)

The Kyoto Protocol was an ambitious project aimed at trying to get countries around the world to coordinate their emissions targets, and to agree to binding reductions that would get carbon out of our transportation networks. It didn’t work. As Canadians, we didn’t meet our targets. And we didn't even have a real plan. But Kyoto was an important first step. From it, we learned that unilateral top-down rigid approaches to complicated relationships generally don’t work. And our relationship with the environment is complicated. The failure of Kyoto led to the Paris Climate Agreement a few years ago. Paris took a more collaborative, bottom-up approach with world leaders being directed to show up with their own promises – ones that nations could agree to abide by. Canada, like others, showed up with commitments to radically reduce pollution from all its industrial sectors, while knowing that to achieve the ambitious goal of keeping climate change to less than 1.5 degrees above preindustrial levels we will need to eliminate petroleum fossil fuels almost entirely as a combustion fuel and overhaul our entire transportation network, including transit.

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TRANSPORT BUDGET

Budget 2021 furthers this historic commitment to climate action through transportation innovation.

procure zero-emission buses and allied charging and fuelling systems.

Budget 2021: a new mobility future

What matters for most of us today is our society is about to change.This year Minister Catherine McKenna announced billions of dollars to get 5,000 non-polluting zero-emission buses out the door – that’s about 30 percent of the Canadian fleet. It will eliminate 750,000 tonnes of greenhouse gases locally and globally, and support healthier lungs and happier transit riders.

For low-carbon transit technologies, this budget is a first-ofits-kind. It offers permanent public transit funding in the order of billions of dollars per year focusing the use of those dollars on zero-emission buses, like battery-electric buses (BEBs), hydrogen fuel cell electric buses (FCEBs), and renewable natural gas-powered buses (R-CNGs). These investments will improve local air quality and reduce transit emissions by more than 90 per cent in many Canadian communities within the next decade and a half. Bluntly put, Budget 2021 puts cars at the back of the transit line. And rightly so. Shared mobility in the form of electrified and zeroemissions buses, frequent rapid rail systems, and automated and connected electric shuttles comes first. These technologies will be expanded where they are already proving effective in cities like Vancouver, Edmonton, Calgary, Toronto, Brampton, Laval, Montreal and across York Region. And they will infiltrate the fleets of smaller cities and towns by 2030, supporting a true postpandemic green recovery for all Canadians using public mobility services.

Is it possible? Yes. Because unlike electric cars, which households buy one-by-one, transit fleets operate in stepwise functions with large procurements all at once. With these procurements come jobs. Our team at CUTRIC has calculated that for every $1 billion dispersed in the green transit industry, the federal government is supporting approximately 260,000 direct full-time and part-time jobs in the transit, utility and zero-emission bus manufacturing and supply chain industry and creating between 30,000 and 98,000 new direct and indirect jobs. These jobs are coming just when we need them most. When people can get jobs, make money and raise families from industry, it’s here to stay. And Budget 2021 makes this type of economy a permanent fact of life – not a hypothetical potentiality up for debate. The Supreme Court weighs in

Budget 2021 puts cars at the back of the transit line. Whether history recounts Budget 2021 as a final version of other previous and similar 20th-century post-war recovery programs or as the first of what might be many future postpandemic recovery programs in the centuries ahead is a matter for erudite debate in sequestered circles of academia. What matters for most of us today is our society is about to change. Green and shared mobility has taken hold Across Canada, the US, Europe and globally, a transitfocused green and shared mobility industry has already started to take control of our streets. Thousands of zeroemission buses have already been purchased and deployed across the continents. Even in Canada, while just a few pilot buses were on the roads by the end of 2018, our transit agencies have now deployed more than 100 zeroemission buses nation-wide and committed to more than 550 by 2022-2023. These developments are led by the Toronto Transit Commission, TransLink, Société de transport de Laval, Société de transport de Montréal, Edmonton Transit, Brampton Transit, and York Region Transit. Meanwhile, cities like Mississauga, London, Guelph, Quebec City, Winnipeg, Burlington, Ottawa and Kingston have also lined up with their public visions to

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In recent weeks the Supreme Court of Canada agreed climate change is catastrophic to human health and longevity, and that a nationwide carbon tax that prices pollution is both legal and just. Canada’s top court confirmed climate change is not just an energy issue – it’s a human issue that affects the lives of all Canadians. Combating it and planning for it is a national necessity. As a result, the federal government has stated we need a highpriced carbon levy at $170/tonne by 2030 to permanently change our transportation behaviours as a national community. This price point means we’re all about to feel the costs of our polluting transportation systems. And that means we will all reassess the way(s) we get around. For the first time ever we can all say we live in a national political context in which every major federal political party has a climate action plan in place and every elected leader of a major political party in this country actually believes climate change is both real and a threat to human life. Minister Freeland’s Budget 2021 builds on these foundational developments in Canadian climate action. It charts a pathway forward for our society that is green, bold, and more equitably mobile than ever before. It’s about time.

URBAN TRANSPORT INFRASTRUCTURE MAY 2021

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Despite Covid impact, we are trying that something is done in 2023. Achal Khare, Managing Director, National High Speed Rail Corporation Ltd (NHSRCL)

readymade solution to this. In Gujarat also, we had issues of plots where there were 20 owners of a plot. We discussed it with the Gujarat government and they extended all help to resolve ownership issues. We could settle issues there quite well. But in Palghar, in many cases the real owners and persons in possession of land are different.

The Rs 1 lakh crore Ahmedabad-Mumbai highspeed rail project is a prestigious one. Achal Khare, managing director of National High Speed Rail Corporation Ltd has explained its challenges to Dipak Kumar Dash, Times of India:

Will Covid affect the deadline? The Covid impact will be there. But we are trying to do

Where does the project now stand? We have got 95% land in Gujarat and out of 351 km falling in the state, contract for 325 km has been awarded. The project is now fully into the construction phase. All the remaining civil packages in the Gujarat portion will be awarded during the current calendar year. In Maharashtra, 24% land has been acquired. But this is very scattered and we can’t even take up work on 10-15 km. What is the status in Maharashtra? In Palghar, we were quite successful. We had carried out joint measurement surveys in 71 out of 73 villages. It shows that people are largely not against the project. We completed 450 sale deeds in Maharashtra, all on consent, and in only Palghar we have done 220 such sale deeds. But we need to have 1,200 sale deeds. People are ready to give the land, the major issue is their land records. There are plots, around 500, where land ownership is not clear. There are plots where 150 or 200 names are entered in the records. They call it ‘gola plot’. There is no

URBAN TRANSPORT INFRASTRUCTURE MAY 2021

The Covid impact will be there. But we are trying to do something by December 2023 or early 2024. We have aligned the contractor also on this thinking that let’s try and achieve something in one section for the trial purpose. I am in talks with the Japanese side. We have not been able to concretise all this. But they are agreeing to this kind of arrangement. We are trying that something is done in 2023. If not fully, our attempt is let’s partially fulfill the dream. Achal Khare Managing Director, NHSRCL

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INTERVIEW

something by December 2023 or early 2024. We have aligned the contractor also on this thinking that let’s try and achieve something in one section for the trial purpose. I am in talks with the Japanese side. We have not been able to concretise all this. But they are agreeing to this kind of arrangement. We are trying that something is done in 2023. If not fully, our attempt is let’s partially fulfil the dream. Is technology transfer from Japan happening? Let me start with areas where we had nothing. Metro and railways have ballastless tracks and these are fit for 80, 90 or 100 kmph. But the tracks that Japanese are making are fit for 350 kmph train speed. So, with a lot of discussion, last year they agreed to open this area to Indian contractors. This is a major achievement. Every supervisor and the workers of the contractor will be trained first and certified by Japanese experts before being put on the job. We have estimated 800 supervisors and workers will have to be trained for this. This will help us get construction track technology, which is fit for 350 kmph. Second is steel fabrication which requires very high skill. Initially, this was kept for Japanese players. A committee of experts came up with the finding that right now this does not exist in India, but can be achieved. To ensure that the trained workforce doesn’t deviate from the standard while doing it, there will be two international experts at the welding facility throughout the fabrication process at the workshop. Now, this package is open to Indian players. After doing this project, the fabrication quality in India will improve significantly. Another area was the quality of steel. They were insisting on Japanese quality. We took their standards and shared it with big manufacturers. It took us about a year and they confirmed that they will be able to produce quality steel of Japanese standard. So, all steel is going to be manufactured in India. Will the first project make us self-reliant in high-speed rail?

brought in complete knockdown condition, but assembled and tested here. So, even assembling and testing will require an investment of about Rs 300 crore by Indian manufacturers. We estimate if there is demand of around 100-150 in a year, probably setting up of a factory in India will be viable. Another area is signalling and telecom. Japanese are using gas filled cables. If a small crack happens, the gas will start leaking and there is a cable monitoring system that will tell that there is a problem at a particular point. So, you can replace that before it causes a failure. That is why their reliability is so high. In India we are not manufacturing gas filled cables. Signalling and telecom is an area where we will need some handholding whether it’s Japanese or European technology. The budgetary allocation has been increased for this year How are you going to speed up the work? This year we have been allocated Rs 14,000 crore, which is more than Rs 1,000 crore per month. We will award all civil contracts in Gujarat. We have awarded two major contracts, which are to the tune of Rs 33,000- Rs 34,000 crore that will be carried out in next four years. This Rs 14,000 crore will be used mostly for works. Now, there is a plan to have six to seven more high speed rail corridors. Will that bring some change? I am pretty sure if all these six to seven come, probably in signaling and telecom also 70-80% can be indigenous. It’s a question of the market, we have the capability. Anything you can share on the new corridors which have been planned? We have submitted the draft report for Delhi-Varanasi stretch. We will give all details in the final report. The idea is if the project is sanctioned, we can start work from day one. All routes will be justified on economic returns. ***

Yes, we can do civil works, steel fabrication and track ourselves. Only in two areas we would need some hand holding; one of them is rolling stock. We have estimated 24 train sets and six will be done here. Because most of the material is not manufactured in India, the six will be

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URBAN TRANSPORT INFRASTRUCTURE MAY 2021

CASE STUDY

METRO RAIL HISTORY

History of Metro Rail in India: Trams to Driverless Metro

he modern world has transformed itself faster than ever in each and every aspect of lives. Whether it be technology or anything else, science has proved itself worthy. Although science has also caused greater devastation during the first half of the twentieth century as two world wars, it has been the major force behind the present scenario of a peaceful world. To understand the role of science and technology in the modern world, we can have a look into the preindependence era of Indian Subcontinent. That was the world of bullock carts and Charkha. Things have changed rapidly during the period of the last 100 years and since we are talking about the history of the Urban Transit System, let's have a look into the circumstances which led to rapid growth of the mass transit system in India. The British rule in India was for nothing but to drain the wealth of this beautiful nation. They developed a huge rail network to transport the resources of Indian Subcontinent to the ports and then subsequently to their own country, England. The motto behind development of the rail network in India was solely for the movements of goods and later, for the transport of labour.

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Until the year 1905, Kolkata used to be the capital of the subcontinent being governed by the English people. As it was the capital city, the Britishers used to develop the city to show their might, wealth and power. It was for the same purpose that the first horse-drawn trams came into existence in India. These trams ran between Sealdah and Armenian Ghat Street of Kolkata on 24 February 1873 for the first time. Although the services were discontinued very soon the same year, it was the first of its kind in imperial India and it is regarded as the first attempt to run a public transit system in any of the Indian cities. Remember, Kolkata used to be the capital of India at that time and that's why these major developments were taking place there. Afterwards, The Calcutta Tramway Company was formed and Meter-gauge horse-drawn tram tracks were laid from Sealdah to Armenian Ghat via Bowbazar Street, Dalhousie Square, and Strand Road. This was such an ambitious project that it was inaugurated by the then Viceroy of India. You may think about the intensity of joy and happiness at the time. This was the start and ever since, the public transit system of the Indian cities have remained developing at a faster pace.

URBAN TRANSPORT INFRASTRUCTURE MAY 2021

METRO RAIL HISTORY

The tram networks were very popular at the time but with advancements in technology, Kolkata decided to go for s better mode of transport and it was going to be the first metro network of the country.

In the September 1919 session of the Imperial Legislative Council at Shimla, a committee was set up by W. E. Crum that recommended a metro line for Kolkata. This line was supposed to connect Bagmari in the east to Benaras Road, Salkia, in Howrah in the west via a tunnel beneath Hooghly River. The estimated construction costs were £3,526,154, about Rs 4.28 crore (US$600,000) based on current exchange rates, and the proposed deadline was 1925–1926. The proposed line was 10.4 km long, about 4 km shorter than the current East-West Corridor, which would connect East Bengal Railway in Bagmari and East Indian Railway in Benaras Road, according to different historical sources. The state government proposed the idea of having a metro network in the year 1949–1950. A survey was then by a team of French experts. However, the efforts went in vain. The proposal couldn't be brought into immediate effect and Kolkata had to further wait for the country's first metro network. However, the move was initiated through this event.

First metro train began operation in Kolkata on October 24, 1984 (Photo: Telegraph)

URBAN TRANSPORT INFRASTRUCTURE MAY 2021

It is obvious that such networks are developed to get rid of the notorious traffic jams and such related problems but at the same time, metro projects can also be seen as an asset to the city. The pace at which metro projects are being developed in our age couldn't be done at the time when Kolkata metro was being developed. Indeed it took around 23 years to develop the network. Although it was a very indigenous project, the time taken in its construction was far greater than expected. Today, a metro network gets operational in less than five years but those were the days of greater struggles and a lot of bureaucratic hurdles. The typical government agencies were working for its development which made the process a little bit late. The foundation stone of the project was laid by Indira Gandhi, the Prime Minister of India, on 29 December 1972, and construction work started in 1973–74. Initially, cut and cover along with slurry wall construction to handle soft ground, was recommended by the Soviet Union Consultants. Later, in 1977, it was decided to adopt both shield tunneling and cut and cover methods for construction under populated areas, sewer lines, water mains, electrical cables, telephone cables, tram lines, canals etc. The services began for the first time on the first stretch of Kolkata Metro on 24 October 1984 with an operational line of 3.40 km with five stations served between Esplanade and Bhowanipur. The commuter service was extended to Tollygunge on 29 April 1986, covering a further distance of 4.24 km, making the service available over a distance of 9.79 km with 11 stations on the network. Since 1905, the capital of India was shifted to Delhi and this can be one reason of the delayed development of Metro services in Kolkata. When Delhi planned to have its metro network, it took less than 5 years to make its first stretch operational. The concept of a mass rapid transit for New Delhi first emerged from a traffic and travel characteristics study which was carried out in the city in 1969. It was because of the terrain and geographical structure of Delhi where road traffic was the main mode of transportation. As the population of the city increased and different cities developed in its surroundings, it became urgent for the government to find a solution for the increasing traffic of Delhi and as a result, different plans were laid down and construction began for the Delhi Metro Rail Project on October 1, 1998, many stakeholders were participation in the venture. Unlike Kolkata Metro, a special purpose vehicle (SPV) called Delhi Metro Rail Corporation was set up for the work and it was given all the independence to carry out the works smoothly. As a result, the first line of Delhi Metro, Red Line got operational on December 24, 2002 with the

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METRO RAIL HISTORY

then prime minister Atal Bihari Vajpayee inaugurating the same. Delhi metro from then onwards has been developing very fast and it has an operational network of 348 km today while there are under construction projects as well. Afterwards, the construction of Metro projects has become a quite easier task and India has a wide network of operational metro networks from north to south. There are many more metro networks being developed in different cities and DMRC is playing a crucial role in this process for which it is often regarded as the mother organization of Metro projects in India. A new technology has now come in the Metro operations and DMRC recently included driverless trains on its fleet. The Delhi Metro Rail Corporation (DMRC) launched its first-ever driverless train operations on its 38-kilometer long Magenta Line, which connects Janakpuri West and Botanical Garden. The maiden driverless train is being seen as a major technological feat. The importance of matter can be understood from the very fact that the prime minister himself inaugurated the driverless train. At the virtual inauguration of the train, PM Narendra Modi had said that his government has taken growing urbanisation as an opportunity and asserted that metro train services will be extended to 25 cities by 2025 from the current 18 cities. Apart from these all, a lot more different projects are coming in different parts of the country. There are three RRTS projects coming up in NCR. The first amongst these three is the Delhi–Meerut Regional Rapid Transit System which is an 82.15 km long, under-construction, semi-high speed rail corridor connecting Delhi, Ghaziabad, and Meerut. The others are Metrolite and Metro Neo which are going to change the scenario of urban mobility sector in India.

OPERATIONAL METRO RAIL PROJECTS IN INDIA Kolkata Metro Kolkata Metro is oldest Mass Rapid Transit System of India. It began operation on October 24, 1984 and presently covering a distance of 39.2 km with two corridors. Delhi Metro Delhi Metro is first modern and largest Mass Rapid Transit System of India. It began operation on December 24, 2002 and presently covering the distance of 347 km network comprising 10 multicolor lines. Bangalore Metro Also known as Namma Metro, Bangalore Metro began its first operation on October 20, 2011 and presently covering a distance of 48.1 km in Bengaluru city. Gurgaon Rapid Metro Gurgaon Metro is first privately financed Mass Rapid Transit System in India. It began operation on November 14, 2013 and currently covering a total distance of 12.1 km within Gurugram city. Mumbai Metro Mumbai Metro is first Mass Rapid Transit Project developed under PPP mode in India. It began operation on June 8, 2014 and presently covering a total network of 11.4 km with a single line. Jaipur Metro Jaipur Metro started its first operation on June 3, 2015 and currently serving a total of 12 km network in Pink city. Chennai Metro Chennai Metro began its operation on June 29, 2015 and currently serving a total of 54.1 km network in Chennai. Kochi Metro Kochi Metro started it operation on June 19, 2017 and currently serving a total of 25 km network in Kochi city. Lucknow Metro Lucknow Metro began its operation on September 6, 2017 and presently serving a total network of 22.9 km. Hyderabad Metro Hyderabad Metro is World’s largest MRTS developed under PPP mode. It began operation on November 29, 2017 and presently serving a total network of 67 km. Noida Metro: Since January 25, 2019 (29.7 km) Ahmedabad Metro: Since March 6, 2019 (6.5 km)

First driverless metro train began operation in Delhi on December 28, 2020.

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Nagpur Metro: Since March 8, 2019 (24.5 km)

URBAN TRANSPORT INFRASTRUCTURE MAY 2021

URBAN LOGISTICS

Future of Urban Logistics

Ignacio Magallón Hernández Sr. Innovation Consultant Bax & Company

Amy McCready PR & Communications Officer, Bax & Company

ith a growing global population concentrated in cities, urban freight transport (UFT) – defined as all movements of goods into, out from, through or within the urban area – is broadly recognised as a fundamental part of economic trade. This growing number of vehicle and transport needs in urban areas is having a severe impact on cities’ quality of life. According to ALICE (Alliance for Logistics Innovation through Collaboration in Europe), urban freight is a major component of traffic (10-15% of vehicle equivalent miles), emissions (25% of urban transport CO2 and 30 to 50% of NOx and particles) and noise in cities. At the same time, consumers habits are shifting towards on-demand solutions that are able to satisfy their needs for faster delivery, putting even more pressure on the current logistics solutions. This trend is confirmed by the increasing numbers of e-commerce. Miebach Consulting

URBAN TRANSPORT INFRASTRUCTURE MAY 2021

analysed this situation in their white paper The Urban Distribution of Goods: Challenges and Solutions, and found that in Spain alone, the market share of e-commerce has grown by 37% in the last 3 years, representing up to 8.9% of total sales in 2017 and expecting to grow up to 11.4% by 2020. This same study shows also that the growth of urban deliveries is highly influenced by the increasing habit of customers making small orders each day while they demand more immediacy – same day or less than 2 hours – between the purchase and the receipt of their orders. Under these circumstances, urban freight services need to quickly react and explore new concepts and developments. The roadmap of the two main European networks, ALICE and ERTRAC (European Road Transport Research Advisory Council) clearly define what the proposed solutions need to focus on: • Increasing energy efficiency, to therefore improve the sustainability and livability of cities • Improving reliability of systems, increasing customer satisfaction • Increasing safety and security, reducing the risk of road injuries and fatalities

What is the path for cities to make urban logistics more sustainable? At Bax & Company, we see that the path towards greener, flexible and secure UFT requires the deployment of innovative, efficient and sustainable solutions for all components of the system: vehicles, infrastructure and services. This includes two main lines of work:

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URBAN LOGISTICS

1. The efficient integration of urban freight in the urban transport system Currently, UFT is an activity that tries to find a place in an environment that is not specifically designed for it. Logistic activities have to better integrate into the urban transport system, a process which needs new out-of-the-box ideas that combine the development and adaptation of delivery vehicles and solutions, with the implementation of horizontal and collaborative business models.

in space and time. This contributes to the creation of attractive business opportunities, as the same transportation needs can be met with fewer vehicles, alleviating traffic and congestion problems. The integration of people and cargo can also contribute to making ondemand transport options socially accepted – affordable and accessible for all users – in an economically viable way. Many initiatives are already starting to explore these solutions by multiple means: autonomous electric vehicles , ride-sharing vans, or public transport.

Collaborative last-mile delivery services (zero/low emission, shared and crowdsourced) offer a solution for the “last-mile” delivery of goods to customers and businesses in a flexible, cost-effective, practical and sustainable way. A clear step in this direction is the implementation of interoperable standard modular solutions for delivery logistics in inner-city areas, which contribute to the optimisation of load units, as well as inter-connectivity with physical movement throughout the complete supply chain, aspiring towards the Physical Internet concept philosophy. Bremen based start-up RYTLE understood this need and translated it into an innovative modular concept, integrating e-cargo bicycles with modular containers and mobile depots, that can be easily integrated into the cityscape. The operation of these kinds of solutions needs to be supported by long-lasting new cooperative business models. When choosing from a pool of diverse solutions (from freight-share to the decoupling of delivery and reception), decisions taken need to ensure that the adopted schemes are actually sustainable and costefficient. Horizontal collaboration models for sharing infrastructure and assets are some of the most effective ways to achieve optimal use of urban land space and increase load factors. This approach requires new concepts of consolidation and distribution centres, with the potential to operate as multimodal cross-dock micro platforms, integrating mobility functions with urban freight delivery functions. They can easily be built upon the existing transport hub, such as the mobil.punkt or mobihub concept, which provides a smart point in the transportation network that seamlessly integrates different modes of transportation through multi-modal supportive infrastructure; including carsharing parking slots, bike-sharing docks, public or collective transport stations and EV-chargers.

The Sustainable Urban Mobility Plan (SUMP) is a “strategic plan designed to satisfy the mobility needs of people and businesses in cities and their surroundings for a better quality of life” 2. Policy actions to drive change For cities and local authorities to achieve more sustainable and liveable cities, sustainable policy-making and mobility planning are crucial steps. The Sustainable Urban Mobility Plan (SUMP) is a “strategic plan designed to satisfy the mobility needs of people and businesses in cities and their surroundings for a better quality of life” For SUMPs to effectively assimilate the complexity of UFT, specific guidelines for the integration of the UFT environment in mobility planning have to be developed. This package of measures and policies is often described as a Sustainable Urban Logistic Plan (SULP), a “holistic planning strategy for urban freight that ensures efficient and sustainable logistics operations within urban areas.” The process of defining a SULP requires engaging with multiple stakeholders, looking at the different transport operations and logistics activities and requirements, both from policy and technical perspectives. This will, in turn, provide evidence to support crucial decision making and planning for urban freight logistics. ***

These consolidation schemes also offer an operating ground for the dual integration of freight and passenger transportation. The confluence of mobility and logistics is already a reality among the automotive industry, due to its great potential to optimise the use of city infrastructures

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URBAN TRANSPORT INFRASTRUCTURE MAY 2021

GENDER AND TRANSPORT

Muneeza Mehmood Alam Economist, Transport, World Bank

Matias Herrera Dappe Senior Economist, World Bank

Shaping women’s access to opportunities: Gender, transport, and employment in Mumbai Where I work is strongly determined by work timings, transport to and from office, and time taken and distance to get to office. - Working woman, Mumbai, India

I take my kids to tuition center and prefer those within walking distance. If the tuition center is far away, then auto rickshaw is more suitable due to lack of bus service.” Housewife, Mumbai, India We often heard statements like these during a survey we conducted in Mumbai, India on the role of transport in shaping women’s access to economic and social opportunities. They reflect the different mobility choices and experiences women face compared to men, and how these mobility patterns have evolved in India’s largest city. There is increasing global recognition that women experience mobility differently from men. Lack of access to transport and mobility shape women’s access to public

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services—especially to education and health. In turn, this lack of access to markets, employment, and skills affects their livelihoods, influencing not only their individual quality of life, but also that of their families. The study conducted in Mumbai documents the differences in men and women’s mobility patterns and the changes in these patterns as the city has developed. It also explores whether the lack of access to mass transit limits women’s labor force participation in the Greater Mumbai Region (GMR). Four results emerge from the study: First, the differences in mobility patterns of men and women reflect differences in the division of labor within households. The study finds persistent differences in the mobility patterns of men and women. These differences partly reflect differences in household responsibilities and labor force participation rates. In 2019, only one-fifth of women in Mumbai were employed. In the same year, 80 percent of men’s trips were work related compared to only 17 percent for women. Half of women’s trips were for shopping or transporting children to and from schools or tuition centers. Second, men and women choose different modes of transport even when commuting for the same purpose and this impacts their access to opportunities. Both men and women who commute for work, spend the same

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GENDER AND TRANSPORT

amount of time on average on their commute. However, women are more likely to walk or use public transit. In 2019, 39 percent of women reported walking and 32 percent reported using public transit (rail or public bus) as their primary commute mode. In contrast, only 28 percent of men reported walking and 24 percent reported using public transit. Women were also more likely to commute by auto-rickshaw (14 percent) than by two-wheeler (9 percent) or car (4 percent). This finding implies that women are accessing fewer economic opportunities, even though they are commuting for the same amount of time as men ; a finding mirrored in studies of Argentina and elsewhere.

reported commuting as a barrier to working. Of these, less than 4 percent indicated that transport was a commuting barrier for work. In contrast, 13 percent said that childcare responsibilities were a barrier to commuting for work, and 19 percent indicated that domestic duties were a barrier to commuting for work.

Several factors could be driving this choice to use slower modes of transport— safety and security considerations, the need for flexibility to combine work trips with household chores, and lack of access to transport assets within the household. Third, the differences and the evolution of these patterns point to an implicit “pink tax” on female mobility. Mass transit within the GMR appears not to have kept pace with the needs and expectations of the population. The fall in satisfaction with bus and rail transit has increased the use of two-wheelers and auto-rickshaws by both men and women. However, adoption of private, and arguably faster, modes of transport has been slower for women. Furthermore, men have shifted largely to commuting to work by two-wheelers, and women shifted to using auto-rickshaws or taxis, which tend to be more expensive. Thus, there appears to be a surcharge or “pink tax” on women’s mobility. Fourth, a transport system that allows women to combine domestic duties and childcare responsibilities with being economically active, can enhance women’s likelihood to participate in the labor force. The study reveals that transport is only one of the barriers to women’s labor force participation. Instead, gendered social norms play a large role in determining women’s labor force participation . In 2019, 31 percent of surveyed women

A transportation system that does not explicitly recognize gender differences in usage can exacerbate gender inequalities and limit women’s access to economic opportunities A transportation system that does not explicitly recognize gender differences in usage can exacerbate gender inequalities and limit women’s access to economic opportunities. Policy measures focused on improving public transit and walkability in Mumbai and provision of daycare facilities at key locations could differentially benefit women. Notably: • Enhancing the walkability of Mumbai city by creating a walking friendly street network and providing affordable micro-mobility solutions in Mumbai (like scooters and bicycles). • Improving the reliability, convenience, safety and frequency of bus and rail services. • Taking a network approach to the routing and timing of the rail and bus systems and flexible tariff structures to better integrate public transit options and make public transit a more attractive option. • Providing safe and affordable childcare services at suitable locations in Mumbai (possibly at or close to rail stations). (Source: The World Bank)

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URBAN TRANSPORT INFRASTRUCTURE MAY 2021

AUTONOMOUS VEHICLE

Keith Laing Technology Journalist Bloomberg

Self-driving cars pose a crucial question: Who to blame in a crash?

debate over who to blame or sue when a selfdriven car hits someone is holding up legislation the industry says it needs to advance. “If another driver hits you, it’s clear who the driver is," Sarah Rooney, senior director of federal and regulatory affairs for the American Association for Justice, said. “It’s the human being.“ Not so when a fully self-driving car hits another vehicle or a pedestrian. Then the fault may lie with the manufacturer and the software, or with the owner if updates have not been properly installed. And if the manufacturer is as fault, a victim may seek to sue under product liability standards, as with a conventional car. The vehicles are still in the beta stage but the issues have held up legislation that would allow carmakers to test and sell tens of thousands of autonomous vehicles, something the industry says it needs to fully develop and eventually market the technology to consumers. A bill to do that sailed through the House several years ago but has been bogged down in the Senate over the liability question.

URBAN TRANSPORT INFRASTRUCTURE MAY 2021

A move to merge the bill with must-pass legislation earlier this month faltered over an initiative by some manufacturers to include language that would prevent consumers from suing or forming class-action cases. Instead, the consumers would have to submit disputes to binding arbitration, something that is common with technology products but not automobiles. That idea faced resistance from safety groups and trial lawyers, who are influential among Senate Democrats. The measure was pulled on the eve of a committee vote and supporters say they are still working to address the liability issue in the hopes of moving the legislation forward this year.

Uber Crash A handful of crashes involving Tesla Inc. vehicles with human drivers utilizing the company’s Autopilot system, as well as the death of a pedestrian struck by an Uber Technologies Inc. self-driving test car in 2018, has focused attention on the issue of liability on vehicles now under development that have no steering wheels, gas pedals or other accommodation for human drivers. Rooney, whose group represents trial lawyers who oppose limits on lawsuits, said liability issues will have to be worked out before any legislation authorizing the use of more automated vehicles on U.S. roads should proceed. A group of 15 consumer advocacy groups including Rooney’s association wrote a letter on May 17 to leaders on the House Energy and Commerce’s consumer protection subcommittee opposing mandatory arbitration. They expressed concern that automated vehicles may someday be operated by Uber or other companies and come with clauses to their terms of service.

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AUTONOMOUS VEHICLE

“Unless legislation prevents manufacturers from doing so, they will insert extremely broad forced arbitration clauses into their contracts, blocking consumers from meaningful remedies if they are hurt or their privacy violated," the letter read. “Even pedestrians’ claims could be kept out of court.“ South Dakota Republican Senator John Thune has proposed legislation calling for the National Highway Traffic Safety Administration to exempt as many as 15,000 self-driving vehicles per manufacturer from human-driving safety standards. The number would rise to 80,000 within three years. Currently, an automaker can produce 2,500 of the vehicles for testing.

Thune’s Bill “Providing the automotive industry with the tools they need to safely test and deploy automated vehicles across the nation will create thousands of jobs and generate billions of dollars in investment," Thune, who is a member of the Senate Commerce, Science and Transportation Committee, said in a statement. The measure doesn’t address the arbitration issue, something Thune says should be considered separately. But opponents of the measure fear granting the exemptions before liability issues are worked out will give carmakers carte blanche to put thousands of self-driving cars on the road before the legal rules are set. Jason Levine, executive director of Center for Auto Safety, said the threat of litigation has served consumers as an important check on auto manufacturers for decades. “Too often the most effective counterweight to vehicle defects and manufacturers prioritizing profits over safety has not been the federal government, but instead has been the threat of litigation by crash victims," he said. The issue is even more important with the advent of selfdriving car technology, Levine said.

Tech Companies “Consumers are right to wonder who will be held responsible for the defective computer code which operates a motor vehicle they are in when it kills or maims another human being," he said. “Who will be held responsible for preventable tragedies, whether it a passenger, or vehicle owner, or the manufacturer, or an individual software engineer will be determined by choices made by Congress." Rooney said the friction about liability lies in the fact that self-driving cars are attracting interest from technology companies that do not have long histories in the auto

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industry. Traditional automakers know “if you manufacture a faulty ignition switch, you’re going to be held accountable,” she said. “The tech companies that are interested in getting into the space have been allowed to use forced arbitration at will," she said. “They do not want to get rid of it. If this was traditional auto manufacturers, this debate would probably be over and there would be a bill.“ Self-driving car supporters have argued that existing tort law contains principles for allocating fault and apportioning liability among parties. “Decades of motor vehicle law have been applied to countless new technologies in the past and have already been applied to AVs," Ariel Wolf, general counsel to the Self-Driving Coalition, which represents companies such as Ford Motor Co., Uber Technologies Inc., Lyft Inc. and Waymo LLC, said. Missy Cummings, director of Duke University’s Humans and Autonomy Lab, said Congress should not rush to add new regulations for self-driving cars -- or reduce them -while the technology is still in development. “I think the experimental exemptions that we have are fine," she said. Many automakers have quietly backed off pronouncements made in the middle of the last decade that would have resulted in many more self-driving cars being on the road, she said. “Without explicitly saying it, a lot of companies are realizing that self-driving cars are much further off than we initially realized," she said. Wolf said despite the intense debate over legal issues, selfdriving cars have the potential to drastically reduce the number of car crashes and deaths on U.S. roads. “With an estimated 36,000 lives lost on U.S. roads last year, autonomous vehicles offer a transformative opportunity to save lives, unlock new economic and mobility opportunities, and promote American leadership and innovation," he said. ***

URBAN TRANSPORT INFRASTRUCTURE MAY 2021

GREEN MOBILITY

Mari Elka Pangestu World Bank Managing Director of Development Policy and Partnerships

Time to decarbonize transport for a green, resilient and inclusive recovery

t a time when we face enormous challenges brought on by the COVID-19 pandemic, it is heartening to see the world mobilizing as never before to tackle the looming crisis of global warming. From renewable energy to carbon markets to sustainable agriculture, countries are taking steps to address emissions and enhance resilience. The international development community is also stepping up. In 2020, the World Bank Group reached its highest ever level of climate financing, at $21.4 billion, and we recently announced our plan to align all-new World Bank operations with the Paris Agreement by July 2023. But despite all the positive momentum, there is one area in particular that requires urgent action: transport. Without decarbonizing transport, no scenario for achieving the 1.5degree climate goal is feasible, and there we are currently heading in the wrong direction. The global transport sector emits around 24 percent of the world’s total energy-related carbon emissions, and this is expected to grow by 60 percent by 2050. The pressing need to address transport’s many challenges brought some of the most important partners to the World Bank Group Spring Meetings last week. Transport is one key area where transformational action is needed under the

URBAN TRANSPORT INFRASTRUCTURE MAY 2021

Bank Group’s green, resilient, and inclusive development (GRID) approach , which framed discussions at the Meetings. I was pleased to join a high-level working meeting to find ways to accelerate transport decarbonization while ensuring that countries continue to expand the social and economic benefits of transport. Ministers, CEOs, heads of departments and agencies, and others gathered around the virtual table to share their thoughts and actions, and discuss how the Bank can help turn transport around. It was encouraging to hear about the myriad initiatives and programs around the globe that include transport emission mitigation. So much is being done – but unfortunately, all this has not been enough to change the emissions growth trend. It is clear that progress will require doing things differently, and working much more closely together. We need to approach transport decarbonization in a strategic, systemic, and coordinated manner, not as an add-on to other efforts. One central obstacle is that transport lacks global instruments to create, test, nurture, coordinate, and scaleup solutions. To develop solutions at scale, the World Bank, other multilateral development banks, bilateral development agencies, and the private sector will need to come together and leverage their resources.

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GREEN MOBILITY

This is why we have launched the Global Facility to Decarbonize Transport (GFDT), a major multi-donor trust fund that is wholly focused on solving the transport decarbonization issue, and tackle related challenges from access to safety. It aims to make transport decarbonization the catalyzer that will help improve lives, create opportunities—especially for the poor, women, and girls— and boost country competitiveness. This can be accomplished by expanding the horizon for cooperation and coordination, as well as leveraging resources and influencing investments at a global level. The synergies are strong: Bus Rapid Transit systems take cars off the roads, increase access to mobility, and are an important part of many country national climate targets or NDCs; safe transport and lower speeds allow cities to open spaces for walking and biking; better regulation of used car exports to developing countries—which in some cases represent over 90 percent of national fleets—can significantly reduce emissions, pollution and save lives with safer cars; and investing in e-mobility and other emerging technologies can help increase the competitiveness of cities and countries. As the world recovers from COVID-19, countries have a once-in-a-generation chance to set themselves on a green, resilient and inclusive development path. Decisions taken now will determine to what extent the world experiences renewed development progress, sustainable job creation and low-carbon, resilient economic transformation. Transport decarbonization is a critical piece of this puzzle. Fortunately, there is strong consensus forged among both governments and the private sector that we must act now, together, with innovation and determination. I look forward to sharing with you the fruits of these efforts.

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RAIL AND METRO INFRASTRUCTURE 2021 June 28-30, 2021 | WEBINAR

Sessions

50+

Speakers

Exhibitors

Host/Co-Host:

*** (Source: The World Bank)

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URBAN TRANSPORT INFRASTRUCTURE MAY 2021

CASE STUDY SPECIAL ANNIVERSARY

Anniversary Special

27 Years of Delhi Metro… The DMRC opened its first corridor between Shahdara and Tis Hazari on 25th December, 2002. Subsequently, the first phase of construction worth 65 kilometres of Metro lines was finished two years and nine months ahead of schedule in 2005. Since then the DMRC has also completed the construction of another 125 kilometres of Metro corridors under the second phase in only four and a half years.

he Delhi Metro has been instrumental in ushering in a new era in the sphere of mass urban transportation in India. The swanky and modern Metro system introduced comfortable, air conditioned and eco-friendly services for the first time in India and completely revolutionized the mass transportation scenario not only in the National Capital Region but the entire country. Having constructed a massive network of about 389 Km with 285 stations (including NOIDA-Greater NOIDA Corridor and Rapid Metro, Gurugram) in record time in Delhi, NCR, the DMRC today stands out as a shining example of how a mammoth technically complex infrastructure project can be completed before time and within budgeted cost by a Government agency. The Delhi Metro Rail Corporation Limited (DMRC) was registered on 3rd May 1995 under the Companies Act, 1956 with equal equity participation of the Government of the National Capital Territory of Delhi (GNCTD) and the Central Government to implement the dream of construction and operation of a world- class Mass Rapid Transport System (MRTS).

URBAN TRANSPORT INFRASTRUCTURE MAY 2021

Presently, the Delhi Metro network consists of about 389 Km with 285 stations. The network has now crossed the boundaries of Delhi to reach NOIDA and Ghaziabad in Uttar Pradesh, Gurgaon, Faridabad, Bahadurgarh and Ballabhgarh in Haryana. With the opening of the Majlis Park to Shiv Vihar and Janakpuri West - Botanical Garden Sections, new age trains equipped with the Unattended Train Operation (UTO) technology have been introduced. These trains operate with the Communication Based Train Control (CBTC) signaling technology which facilitate movement of trains in very short frequencies. This network also includes the Noida - Greater Noida Aqua Line. The Aqua Line has been constructed by DMRC on behalf of the Noida Metro Rail Corporation and is also being operated by DMRC currently. In addition, the 11.6 kilometre long Rapid Metro also connects with the Delhi Metro network at Sikanderpur station of Yellow Line. The Rapid Metro provides connectivity within the satellite city of Gurugram. The Airport Express link between the Indira Gandhi International Airport and New Delhi has now propelled Delhi to the league of global cities which have high speed rail connectivity between the city and the airport. The DMRC today has over 300 train sets of four, six and eight coaches.

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ANNIVERSARY SPECIAL

The Delhi Metro has also contributed tremendously on the environment front by becoming the first ever railway project in the world to claim carbon credits for regenerative braking. DMRC has also been certified by the United Nations (UN) as the first Metro Rail and Rail based system in the world to get carbon Credits for reducing Green House gas emissions as it has helped to reduce pollution levels in the city by 6.3 lakh tons every year thus helping in reducing global warming. It has also set up roof top solar power plants at many of its stations. All stations of the presently under construction corridors are being constructed as green buildings. In the present phase of Delhi Metro’s construction, the DMRC has completed 160 kilometres of Metro lines which has woven a web of Metro corridors along the city’s Ring Road besides connecting with many other localities in NOIDA, Ghaziabad, Bahadurgarh and Ballabhgarh.

• •

The works of elevated portion have been awarded and the construction work formally started on 30th December, 2019 & the work is in progress. The works for the underground portion will be awarded after concurrence of loan by JICA, which is in process. The Phase IV platform of Haiderpur Badli Mor which will come up above the Phase III station will be the highest ever platform in Delhi Metro at a height of 24.66 meters. Corridors under approval: • •

Apart from providing Delhites with a comfortable public transport option, the Delhi Metro is also contributing significantly towards controlling pollution as well as reducing vehicular congestion on the roads. Future expansion plans: Remaining corridors of Phase III and corridors of Phase IV Delhi Metro Rail Corporation is now looking forward to a further expansion of about 107 km under Phase IV with an objective to bring small stretches and unconnected areas of Delhi on the Metro map. The proposed Phase IV consists of the following Corridors: Corridors already approved (Sanctioned 61.68 km and after realignment 65.10 km): • Majlis Park – Maujpur (Pink Line Ext.) having route length of 12.56 km

Janakpuri West – R. K. Ashram (Magenta Line Ext.) having route length of 28.92 km Aerocity – Tughlakabad having route length of 23.62 km

•

Inderlok – Indraprashtha having route length of 12.57 km Lajpat Nagar – Saket G Block having route length of 07.96 km Rithala – Narela having route length of 21.73 km

Metrolite There are plans to develop Rithala – Narela corridor as a light Metro Rail system known as ‘Metrolite’, which may be a more viable option for less populated areas with adequate land available. Some of the proposed new initiatives in the area of the project in Phase IV are single pier system in place of threelegged frame construction for stations to the maximum possible extent; Integrated flyover, for road traffic with metro viaduct using double-decker construction supported on single pier system, etc. These will result in reduced cost & time and minimal disruption to the public.

350

325

347 347 347

300 250

228 188 188 188 188

200

206 206

143

150 90

100

68 55 64 64

50 0

8 12

0 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Year-wise progress

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URBAN TRANSPORT INFRASTRUCTURE MAY 2021

ANNIVERSARY SPECIAL

Delhi Metro Rail Present Operational Network Line

Length (km)

Stations

Terminals

34.69

Shaheed Sthal - Rithala

49.31

Samaypur Badli – HUDA City Centre

56.61

Noida Electronic City – Dwarka Sector 21

8.74

Yamuna Bank - Vaishali

29.64

Inderlok/Kirti Nagar – Brigadier Hoshiyar Singh

46.63

Kashmere Gate – Raja Nahar Singh

57.58

Majlis Park – Shuv Vihar

37.46

Botanical Garden – Janakpuri West

4.30

Dwarka - Najafgarh

#AP

22.70

New Delhi – Dwarka Sector 21

Total

347.66

253

Project Cost & Funding Phase

Project Cost (Rs)

Funding by

10,571 crore

Govt. of India, Govt. of Delhi and JICA

18,783 crore

Govt. of India, Govt. of Delhi , Govt. of Haryana, Govt. of Uttar Pradesh and JICA

III

41,079 crore

Govt. of India, Govt. of Delhi , Govt. of Uttar Pradesh and JICA

24,949 crore

Govt. of India, Govt. of Delhi and JICA

Fact File • • •

Delhi Metro is Country’s largest and World’s sixth largest metro rail network after Seoul, Shanghai, Beijing, London and New York. The United Nations has certified the DMRC as the first metro and rail-based system that gets carbon credits for reducing greenhouse gas emissions. Delhi Metro is country’s first metro system that introduced Driverless operation partially.

URBAN TRANSPORT INFRASTRUCTURE MAY 2021

Technology Absorption/‘Make in India’ initiative of the Govt. of India Delhi Metro has always placed great emphasis for increased indigenization with highest quality standards in rolling stock resulting in a boost to local manufacturing, capital investment and generation of employment opportunities. As a result, vendor base for critical spares has been developed with provision of tender conditions mandating manufacture 75% of ordered quantity of rolling stock within India, and mandatory sourcing of certain items from India. Further, efforts made towards indigenization of Signaling sub-systems have resulted in local sourcing of large number of equipment viz. cables, depot point machines, LEDbased signals, route indicators, junction boxes for point machines and signals cable distribution cubicles, electronic key transmitter box, emergency stop plunger, large video screen at Operation Control Centre, automatic push button, push fit couplers, high-density polyethylene (HDPE) pipes, etc. Most of the equipments procured for passengers announcement, passengers display & master clock systems viz. amplifiers, audio matrix, display panels (TFT & LED), indoor and outdoor clocks, etc. provided in Phase III have been manufactured in India and sourced from Indian firms. Further, Delhi Metro is concentrating on indigenising a number of critical imported spares used for manufacturing as well as operations of trains viz. use of 3D printing technology for spares used in trains; some of the PAC items were revoked after indigenization, etc. Communication Based Train Control (CBTC) System with Driverless/Unattended Train Operations (DTO/ UTO) functionality has been implemented on Line-7 & Line-8 of Phase III project. Platform Screen Doors with associated signaling interface were also provided on these lines. In order to facilitate knowledge up-gradation and in-house maintenance of the CBTC based signaling system, necessary training, simulation & laboratory facilities have been set up in Vinod Nagar and Kalindi Kunj depots. R&D Project Development of indigenous CBTC (I-CBTC) based signaling system has been taken up as R&D Project. In November, 2019 the Company signed an MOU with Bharat Electricals Limited for development of indigenous signalling technology with an objective to indigenously develop and test Automatic Train Supervision system as per the European Standards mandatory for metro rail application and test it with suitable interfaces with metro sub-system at depot and mainline. ***

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TRANSPORT PLANNING

Transforming Urban Transportation Small Innovations, Big Returns

he last decade has seen a drop in public transport mode-share across all Indian cities. The fear-mongering about the coronavirus spread further dented the appeal of city bus services. However, when the services were gradually reinstated, ridership in most city bus systems rebounded to 65-95% of the pre-lockdown levels despite many educational and workplaces still not operational. This is both an indicator of resilience and also of how integral the bus service is to the lives of many citizens. The question now is how to transform the urban transportation landscape to at least recover the lost ground over the last 10 years. Top-most on every urban passenger’s travel decision making is (a) Reliability of bus service, (b) Affordability, and followed by (c) Accessibility. While comfort of travel is also important, it falls much lower in the order of what is desirable. Thus, switching buses to ‘electric’ (or ‘CNG’) from other fuels doesn’t do a thing to improve public transport. Yet, such technologies increase the cost of providing service. If the public transport mode-share continues to fall, as it did in the past decade, buses, even if electric, will run empty and add to congestion; thus increasing the overall emissions from transport.

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Prashanth Bachu Urban Planning Specialist Gear Change

Let us see what it takes to improve the critical aspects of travel decision making (explained in figure 1). Both infrastructure and policy changes are not within the domain of the transit agencies. Knowing that the most significant gains in reducing costs and increasing ridership are only possible with technology solutions, transit STUs/SPVs started investing in Intelligent Transport Systems (ITS). In the past decade, transit agencies across the country spent Rs.1000+ crore ($150+ million) in procuring ITS with the objectives of achieving service reliability and efficiency. Yet, all this expense proved to be in vain. Even today, none of the 40+ cities using ITS have been able to: • Access travel data and analytics to improve bus planning & operations efficiency • Show bus location/arrival data on Google Maps • Deploy a smart-card/cashless ticketing with substantial adoption ITS deployments not only failed in value addition but also failed in reliably capturing essential operational parameters, because of which bus operators continued to keep manual records as was always done. Thus, instead of solving existing challenges, ITS deployments rather

URBAN TRANSPORT INFRASTRUCTURE MAY 2021

TRANSPORT PLANNING

increased the cost of operations and also the workload of bus operators. The rapidly declining public transport ridership attests to this fact.

possibilities that technology can bring. At the same time, software developers are unaware of the various use cases and scenarios in bus operations to be factored into the

Some of the key reasons for such failure are:

development. What then ends up being deployed is a common-minimum solution that tries to mimic the routine manual methods of work happening at the transit agency. After the deployment, transit agencies become aware of the limitations that ITS imposes on the ad-hoc decisionmaking that happens quite frequently, thus resulting in frustration.

A. Flawed Procurement Process: The key to ITS is the software back-end that captures, stores and processes data from the various hardware components. Moreover, developing robust software requires detailed documentation of the processes, defining performance indicators, methods of analysis, etc. However, tender documents focus on defining the hardware, leaving the intelligence functions and performance criterion extremely subjective and weak. Hence, what finally gets delivered is expensive IT hardware with large-size video walls and data storage systems in the control centre. B. Multi-disciplinary Problem: Another key challenge is in bridging the chasm between technology developers and transit agencies. Transit agencies are unable to imagine the

URBAN TRANSPORT INFRASTRUCTURE MAY 2021

The end result of this compartmentalised, non-iterative approach is that the analytical outputs go missing. In most cases, the base data itself is inaccessible. This problem has been identified and documented way back in 2014 in the Bus Karo – Case Studies, and yet, the same mistakes have been repeated several times all across the country. The need is to modify the very procurement/development methodology of the ITS solution for public transit.

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TRANSPORT PLANNING

A problem such as this one, having complex processes, integrating with many hardware components, varying methods of financial operations requires thorough understanding of practices, defining of standard operating procedures, and performance indicators, in order to develop a technology that will not only recover its cost but also deliver value many times over. Such an enterprise seems beyond the capacity of individual transit agencies that are already ailing. So, here is what we know: •

• •

•

None of the 40+ cities using ITS has come anywhere close to leveraging the costs of ITS. Transit agencies end up with fancy electronic hardware and IT infrastructure that is of no practical use and gets outdated with time. There are just about three or four ITS providers in the country, selling the same dysfunctional software to multiple cities. More than 1,000+ crore spent on ITS is predominantly funded by MoHUA (with matching contributions from the State), which means the central government is paying multiple times for the same product. Yet, neither the States nor MoHUA is able to gather accurate information on the available fleet, their performance or the effectiveness of the funding schemes. Technology for transit is a complex, multi-disciplinary problem requiring an iterative process with significant inputs from specialists in bus operations and data scientists.

•

Training & capacity building for transit operators on the use of various monitoring and intelligence functions to improve performance of the bus services

b) Procurement, deployment and maintenance of hardware (GPS, ticketing, control centre, etc.) as needed by the individual transit agencies, following the specifications and integration developed by the central agency. This approach resolves the various issues currently faced in deploying ITS for transit and ensures a framework for continuous improvement that can be rolled out across the country instantly. It resolves the issue of duplicate spending in various cities and ensures state-of-the-art management and the availability of performance tools and open data for fuelling further innovation.

The Way Forward The problem that seems as unfathomable as this can indeed be overcome with a simple approach – disengage the software and hardware portions of the ITS tender. This approach involves: a) Development and hosting of an overarching Transit Operations Management & Intelligence software centrally at the national level, under a Special Purpose Vehicle with the MoHUA or MoRTH or MEITy. This division will be in charge of: • Understanding the needs and practices of the various transit agencies • Standardisation of performance indicators and documenting Standard Operating Procedures (SOPs) • Development of sophisticated system architecture and software, taking the various hardware integrations into consideration • Create necessary documentation/specifications for the transit agencies to procure and integrate the hardware

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Ever since the JnNURM bus funding scheme, there has been one or the other central government program floated to support transit agencies, albeit insufficient and inconsistent. Initially, funding was directed to the purchase of buses. The next round extended financing for support infrastructure. In the absence of performance metrics from individual cities, the distribution of funds was mostly based on political and demographic considerations. Thus, a significant resource was spent ineffectively. However, now, there is consensus that funding has to extend to the operational viability gap and that it should be based on performance outcomes on-ground. Thus, developing a central infrastructure for capturing various data, analysing performance and identifying service quality improvements to bring efficiency becomes inevitable. Undertaking such an enterprise (central software development) may cost just about Rs. 20 – 30 crore ($3 – 4 million) over a period of 18 to 24 months. The ongoing costs of maintaining the system and improvements will be minuscule of the benefits derived once rolled out.

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TRANSPORT PLANNING

The Outcome It will be worthwhile here to learn from the experience of the rollout of the Unified Payments Interface (UPI) regime in the banking sector. It may be noted that the Mastercard and Visa networks for payments existed in India for decades. However, the advent of the UPI completely transformed the digital transactions space like never before, even transcending the urban-rural and literate-illiterate divide. Not just the ease of use, it also cut the transaction costs from about 2+% MDR to near-zero with the UPI. This method of centrally hosted SPV, on the lines of the National Payments Corporation of India (NPCI) and possibly christened as the Universal Public Transport Interface (UPTI), can be a game-changer for public

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transport in India. Moreover, unlike the UPI, the UTPI can be extended for use by peer-nations in Asia and Africa facing similar challenges. Thus, a small innovation can bring in significantly big returns on investment. An effective ITS can transform the public transport sector, reducing cost of provisioning transport by at least 10% and also multiply bus ridership. Even if just considering the top 10 cities in India, it translates to annual savings of Rs. 1,200 crore ($160 million – assuming 30k bus fleet), improving travel convenience of over 20 million passengers every day, and so much more in intangible positive externalities. This outcome may seem overwhelming for an ailing sector, and yet, this outcome is just the tip of the iceberg.

E-MOBILITY

E-Biking to Work The e-bike marries the bicycle and the motorcycle, providing us the best of both worlds – the fitness and light-onwallet qualities of a bicycle and the effortlessness and swiftness of a motorcycle.

ith all the buzz on EVs and the government’s push towards incentives, charging infrastructure, and what not, let us bring to light one specific EV that is silently taking all the cities around the world by storm – the humble, silent, and ever nifty electric bicycle, aka e-bikes. The typical working professional in an Indian metropolitan city lives within a radius of 10 km from their workspace. However, with the proliferation of motorized vehicles in all metropolitan cities, and the tacit label of status that is attached to the ownership of a motorized vehicle, our roads have become clogged with private cars and motorcycles. This has increased the average living expenses by around 1.2-1.5 lacs annually if you own a car or 30-50 thousand for a motorcycle. Tagging along with this has come numerous problems such as clogged roads, instances of road rage, and accidents, all of which have contributed to time wasted on the road and deteriorating mental health. This is also not to mention, the costs of air pollution and CO2 emissions making life in the city bleaker by the day. Thanks to COVID-19, shared cabs like Uber Pool, Ola Share have been eliminated from the roads. And here’s where e-bikes have come to be that light at the end of this tunnel of living in the city. Ginormous though

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Ankit Kumar Founder & CEO, GoZero Mobility

the claim may be, the benefits of commuting by an e-bike far outweigh its minuscule cost (not more than 3000 a year) and the benefits that one may see out of commuting by motorcycle/car. The e-bike marries the bicycle and the motorcycle, providing us the best of both worlds – the fitness and light-on-wallet qualities of a bicycle and the effortlessness and swiftness of a motorcycle. The physical fitness offered seamlessly integrates into the busy lives of the average working professional, who are ever more sedentary than before. But how is this important for corporates and employers? With improvement in physical fitness, and no time is wasted in traffic jams, reduced frustration from road rages and accidents, comes astronomical improvement in the mental health of their workers, thus further improving their efficiency – higher output and reduced leaves due to health issues. Governments and businesses around the world have come to realize the true benefits of e-biking to work and have worked together in bringing schemes to encourage this habit. The UK government’s scheme of Biking to Work is one such example, where both parties have come together to subsidize the cost of ownership of e-bikes for their employees. Governments around the world have also cordoned off zones and lanes specifically for cycles and ebikes, measures that have been adopted by the Kolkata government (which has announced 120 km of cycling lanes in the city). Employers in India have begun to notice the benefits of ebikes and have started taking the initiative of providing their employees with e-bikes and enjoying the benefits of costs saved and healthy employees. OEM brands working in the space of e-bikes need to join hands together to promote this habit to co-exist within all metropolises in order to make the impact significant on a global scale. ***

URBAN TRANSPORT INFRASTRUCTURE MAY 2021

TRANSPORT BEYOND BORDER

How valuable is connectivity? In Bangladesh and India, transport links could boost income significantly…

Cecile Fruman Director, Regional Integration and Engagement, South Asia

Matias Herrera Dappe Senior Economist, World Bank

trong cross-border transport links make it easier to import and export goods. The benefits typically ripple throughout the economy, boosting the income of people near and far. In the case of Bangladesh, seamless transport integration with neighboring India would stop requiring trucks to transload goods at the border. However, integration would require modern customs processing systems and multi-modal links to easily transfer cargo among trucks, railcars, boats, and planes. All reduce the costs of imports and exports.

URBAN TRANSPORT INFRASTRUCTURE MAY 2021

Charles Kunaka Lead Private Sector Development Specialist

Those improvements would translate into better lives – and more money – for most people on both sides of the border. Our new analysis finds that real income could rise by up to 17 percent throughout Bangladesh, and by up to 8 percent in India. It uses an innovative quantitative spatial economic model to calculate the impact on income for every Bangladeshi district and Indian state based on prices of goods, wages, and economic activity. South Asia lags the rest of the world in regional trade integration and transport links. Nations in the region maintain high tariffs, trade barriers, and other border restrictions. Fortunately, the foundation already exists to build better transport connectivity among several countries. The 2015 Motor Vehicles Agreement aims to lift restrictions on cross-

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TRANSPORT BEYOND BORDER

border movement of cargo, passengers, and personal vehicles among Bangladesh, Bhutan, India, and Nepal, a group known as the BBIN. The BBIN agreement has accompanying protocols and operating procedures for passenger and cargo movement that need to be agreed upon. Currently, neither Bangladesh nor India allows each other’s trucks to cross the border and deliver freight -- a major impediment to regional connectivity. Trucks must stop at the border where their cargo is manually transferred to a truck from the other country. Not surprisingly, transport costs in South Asia are among the highest in the world. Delays and cumbersome border procedures force companies in Bangladesh and India to pay up to 20 percent more to trade with each other than to trade with Europe. Better transport links do much more than move freight faster. Transport corridors in other parts of the world create opportunities for commerce and invigorate communities. For example, small businesses that process agricultural and aquaculture crops – often owned by women – benefit when located near transport corridors. India’s northeastern states are enthusiastic about more direct transport links.

They will benefit both from access to the ocean through Bangladesh and also as a facilitator of traffic and transport between Bangladesh and our mountain neighbors, Bhutan and Nepal,” Vikram K. Doraiswami India’s High Commissioner to Bangladesh

Doraiswami spoke during a recent online event, Connecting to Thrive: Integrating Transport in South Asia, the latest in a series of #OneSouthAsia Conversations on regional integration issues. Currently, India’s northeastern states are linked to the rest of India through the congested Siliguri corridor, a slender strip of land known as the “chicken’s neck.” For example, the cost of transporting goods from Agartala, a large city in northeast India, would fall by up to 80 percent if exporters could use the much closer port in Chattogram, Bangladesh. Currently, Agartala goods are trucked around the perimeter of Bangladesh, then through the chicken’s neck to Kolkata, the nearest seaport in India.

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Bangladesh would also gain substantially. Many of its industries are eager for better access to the huge Indian market. Bangladesh is a natural gateway to growing markets in Southeast Asia and could become a transportation hub for all South Asia. The opportunities are enticing as Bangladesh prepares to graduate in 2026 to developing country status. Despite the promise of big economic benefits, there is reluctance. The effects of full integration mean some regions gain more than others while some sectors will win, and others potentially lose out. For example, some Bangladeshi transportation groups and businesses worry about being overwhelmed by India’s vast economy and trucking industry. Nihad Kabir, president of Dhaka’s Metropolitan Chamber of Commerce and Industry, said they “fear they may not get a fair share of the increased benefits.” In addition to the World Bank analysis of overall economic benefits to Bangladesh and India, Kabir said analyses of specific sectors could help those who resist change see the benefits for themselves. “We need to show our business community that this is going to be very positive,” she said. “If we can have a demonstration effect, that will work wonders for both sides.” Tariq Karim, Bangladesh’s former High Commissioner to India, said grassroots outreach and community dialogues are needed to explain how transport connectivity can improve lives. “The local level is the most important. If they become the champions and start demanding it, it will travel up,” he said. “The process has to be bottom-up rather than top-down.” Doraiswami identified three priorities to move forward. Simplifying the process for goods to cross the border and expanding work on multimodal connectivity are two big steps, he said. A third is for BBIN countries to finalize Motor Vehicles Agreement protocols for the movement of goods and passenger vehicles. “If we could do this in the next six months, I think it would be a huge opening to start the process of showing quick wins,” he said. Ultimately, transport integration is about restoring some of the links that once existed before the partition of South Asia. “The problems can be definitely overcome,” Kabir said. “At the end of the day, our commonalties are more than what divide us.” The Connecting to Thrive research was supported by Australia’s Department of Foreign Affairs and Trade through the South Asia Regional Trade Facilitation Program.

URBAN TRANSPORT INFRASTRUCTURE MAY 2021

INDUSTRY EVENT CALENDER 2021

Dates

Event Name

Venue

April 20-21

Safety of Passengers

Warsaw, Poland

May 12-14

Electrotrans

Moscow, Russia

May 20-21

Smart Ticketing & Digital Services Forum

Budapest, Hungary

June 1-July 31

Urban Rail & Equipment Business Virtual Show

Online

June 15-18

UITP India Bus Seminar

Online

June 16-18

Rail Solution Asia

Kuala Lumpur, Malaysia

June 21-23

Conference on Railway Excellence

Perth, Australia

June 28-30

Rail and Metro Infrastructure 2021

Online

Sept 1-30

Urban Infra & Construction Business Virtual Show

Online

September 7-9

Railtex & Infrarail

Birmingham, UK

September 13-15

Transport Security Congress

Miami, USA

October 5-6

World Passenger Festival

Amsterdam, The Netherlands

October 12-13

Middle East Rail

UAE

October 18-20

SmartMetro

Vienna, Austria

October 29-31

Urban Mobility India Conference & Expo

Kochi, India

Nov.1 – Dec 15

Transport, Logistics & Technology Virtual Show

New Delhi, India

November 9-10

MOVE

London, UK

November 11

2nd Rail Infra and Mobility Business Awards 2021

New Delhi, India

Nov 30 – Dec 2

SmartRail Europe

Rome, Italy

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URBAN TRANSPORT INFRASTRUCTURE MAY 2021

EDITORIAL CALENDER AND ADVERTISING RATES 2021-22

URBAN TRANSPORT INFRASTRUCTURE Issue

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Rail Business

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July 2021

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Innovation in Urban Infra Industry

Sept 2021

Machinery & Plants

Role of Support Industry

Equipment Market

Automation Equipment

Nov 2021

Green Mobility

Future of Electric Vehicles

Charging Infrastructure

Hydrogen Fuel Technology

Jan 2022

Multi-Model Transport

Mobility as a Service (MaaS)

Role of Micro-Mobility

Year End Review 2021

Mar 2022

Autonomous Vehicles

Role of IoT, AI in Automation

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Urban Transport Infrastructure May 2021

Articles inside

Transforming Urban Transportation: Small Innovations, Big Returns

E biking to Work

27 Years of Delhi Metro

Self driving cars pose a crucial question Who to blame in a crash?

Achal Khare

Future of Urban Logistics

History of Metro Rail in India: Trams to Driverless Metro

Maxim Liksutov

Luong Vo Ta

Editor’s Note

Shaping women’s access to opportunities: Gender, transport, and employment in Mumbai

Touching Bullet Speed: Investment opportunities in Indian Railways