‘Prospects good for rail market’ says Invensys Rail CEO
As rail industry bosses head to London for the ‘Rail 2009 - Unlocking future growth: Delivering a Modern Sustainable Rail System’ conference on June 16, the Chief Executive of Invensys Rail, James Drummond, says the prospects for rail market are looking remarkably healthy despite the recession.Invensys Rail – one of the world’s leading railway signalling and control systems company – has had a busy first quarter on top of its best ever results for the year ending in March , winning major orders in the UK, United States, Spain, and Australasia, and bidding for a host of upcoming contracts in Asia, Europe, and North and South America. It has also strengthened its global sales and marketing team in anticipation of future growth.
“There is a growing recognition in countries all over the world that investment in mainline and metro signalling systems is amongst the most effective ways of meeting the challenges presented by rising populations and demand for travel,” says Mr Drummond.
“Thanks to the tremendous efforts made by Invensys Rail staff all over the world, our range of advanced signalling and control systems is already helping rail play a major role in cutting transport pollution and increasing mobility – a role which will only increase in its importance.”
Invensys Rail is entering into partnerships with leading suppliers in China and India to compete for major projects in these rapidly-growing economies, while in the United States, planned government investment in conventional and high-speed rail is also expected to lead to big orders.
The European market continues to drive forward with the expansion of the European Rail Traffic Management System (ERTMS) and with extensive and industry-leading expertise in this sector, Invensys Rail is leading the spread of this high-tech signalling system as it rolls-out across the continent and further afield.
Christoph Theis spearheads Invensys Rail German expansion
Christoph Theis has been appointed as Invensys Rail’s Business Development Director for Germany , as the railway signalling and control systems provider continues to build on its considerable successes in the European market.Christoph Theis has extensive experience of the German rail industry, having worked in DB and as a consultant in the industry for many years. On his appointment, he said: “I am extremely excited about helping to build on Invensys Rail’s achievements in Germany. Our comprehensive range of solutions, already proven in many countries across the world, will ensure we can help maintain Germany’s position as one of the world’s great railway markets”.
He will be based in the new Invensys Rail office in Westhafenplatz 1, Frankfurt/Main
Strong performance from Invensys Rail helps drive Group results
• Orders rise by 109% at constant exchange rates (CER) as rail industry continues to demonstrate strong fundamentals• Operating profit soars 32% at CER to £134 million
• Operating margin improves to 21.1%
An impressive performance from railway control and communication solutions provider Invensys Rail helped Invensys plc report a robust performance in the financial year ended 31 March 2009 despite the economic downturn. Overall Invensys plc made operating profits of £244 million on revenue of £2,284 million, with underlying earnings per share1 of 14.1p.
Invensys Rail – which also owns the Westinghouse Rail Systems and Dimetronic brands – saw operating profit soar by 32% to £134 million, while orders rose from £429 million in 2007/08 to £968 million – a 109% rise at CER.
During the year Invensys Rail won major contracts both within and outside of its core markets. In the UK, it won an important contract from Network Rail to undertake signalling enabling works at Reading Station, which represents the first state of the £425 million Reading Redevelopment Project. It has also recently won a contract from Crossrail Ltd to evaluate signalling and control solutions for the Crossrail project.
Outside the UK, Invensys Rail’s Spanish operation Dimetronic continued to build on its success, winning £155 million of contracts for the signalling of the Madrid-Valencia high-speed line, and receiving a letter of award for a £44 million contract on the Barcelona-Figueras high-speed line.
Singapore’s Land Transit Authority awarded Invensys Rail a £123 million contract for the country’s new Downtown Line, while, in New Zealand, Westinghouse Rail Systems Australia is to install European Rail Traffic Management System (ERTMS) signalling in Auckland – the first project of its type in Australasia. Another major ERTMS contract is for the installation of the pan-European signalling system on the Ankara–Konya high-speed line in Turkey. In North America, Invensys Rail’s recently-acquired operation, Quantum Engineering, is set to benefit from investment in Positive Train Control signalling systems.
Despite the recession, Invensys Rail believes the global rail market remains strong, helped by growing recognition of rail’s environmental and economic benefits over other modes of transport for both passengers and freight, and also by government stimulus packages investing in rail.
Invensys Rail Chief Executive, James Drummond, said: “We are extremely pleased with Invensys Rail’s performance in all of our markets. The fundamentals of the rail market are strong, and we believe our range of advanced and scalable signalling and communication solutions positions us well to benefit from initiatives to enhance capacity and safety on mainline and mass transit networks all around the world.”
Table: Invensys Rail financial performance
Year ended 31 March 2009 2008 % change at CER2 % total change
Orders (£m) 968 429 109% 126%
Revenue (£m) 636 539 9% 18%
Operating profit3 (£m) 134 93 32% 44%
Operating margin3 (%) 21.1% 17.3%
Operating cash flow (£m) 128 93 26% 38%
Operating cash conversion (%) 96% 100%
1 Calculated by reference to earnings before exceptional finance costs and income, and foreign exchange losses on financial items. Prior year earnings per share also exclude the PPP settlement credit.
2 % change is measured as the change at CER as a percentage of the 2008 adjusted base and is calculated based on underlying amounts in £’000s.
3 All references to operating profit and operating margin are arrived at before exceptional items, unless otherwise stated
Westinghouse secures $14m Sydney turnkey signalling project
IRG announced that its subsidiary Westinghouse Rail Systems Australia (WRSA) has won a A$14m turnkey signalling contract from the Australian Rail Track Corporation Ltd (ARTC). The contract is central to an ARTC project to improve the efficiency and cost-effectiveness of rail freight services along the North-South Rail Corridor between Melbourne, Sydney and Brisbane.A major bottleneck in the rail freight network currently exists in southern Sydney, where freight trains share existing rail lines with the Sydney metropolitan passenger services operated by RailCorp. During morning and afternoon peak periods, freight services are not permitted to run due to passenger priority. As a result, freight services cannot arrive or depart Sydney at the optimum times.
To alleviate this bottleneck, the ARTC began work on the Southern Sydney Freight Line (SSFL), which will provide a dedicated freight line for a distance of 36km between Macarthur and Sefton in southern Sydney. The SSFL will provide a third track in the rail corridor specifically for freight services, allowing passenger and freight services to operate independently.
Under the contract, WRSA is to supply a turnkey signalling system, including design, supply, installation, testing and commissioning.
One of the main reasons for WRSA’s contract win was the ability to reduce the requirement for signalling technology on the project. Managing Director Phil Ellingworth explains “ARTC’s tender specified delivery of a conventional interlocking solution using track circuits. WRSA proposed an alternative solution using service-proven signalling elements in an innovative architecture delivering optimal value to meet ARTC’s key operational needs.” “It was this innovative engineering solution that won WRSA the tender in the end” he added.
The ARTC has been a major client of WRSA for many years and this latest project is one in a series won in recent times. These include: the relocation of the train control system in Victoria to Mile End in Adelaide; North Coast New South Wales level crossing upgrades; the Newport to West Footscray signalling upgrade; and upgrading the crossing loops on the Trans-Australian Railway between Port Augusta and Kalgoorlie.
Westinghouse lands $4.5 Laverton contract
IRG announced that its subsidiary Westinghouse Rail Systems Australia (WRSA) has been selected by Connex Mainco Joint Venture (CMJV) to provide A$4.5m worth of signalling equipment and services for the Laverton rail upgrade project in the State of Victoria, Australia. The project is part of the A$38b Victorian Transport Plan which aims to deliver extra trains and services to the busy Werribee corridor by the end of 2011.Under the contract, WRSA will replace the existing life expired relay interlocking at Laverton with a Hot Standby WESTRACE interlocking. The WESTRACE is being provided in a “Hot Standby” configuration with diverse communications links – resulting in high system availability and reduced downtime in the event of a failure. WRSA will also replace the existing manual unit level Newport panel with a new WestCad VDU control system. The new VDU based system will interface with a total of six different interlocking; four relay, one solid state interlocking and the new WESTRACE.
“From a technology point of view we have assembled a complete solution from robust system elements. Our ability to integrate solutions from these elements is one of our great strengths as an organisation. Although the site presents a number of challenges, we have worked with the client to develop an innovative contract structure that enables the risk to be dealt with efficiently at minimal cost to the client. We believe our design solution was an innovative one, designed to increase service levels and capacity of the Werribee corridor by creating a ‘short starter’ station at Laverton” said WRSA’s Managing Director, Phil Ellingworth.
WRSA has to design, test, install and commission the new control centre and interlocking by September 2009, when work begins on the relocation and reconfiguration of the existing track layout.
WRSA has been active in Victoria for over 120 years and continues to commit to local delivery integrating the most appropriate technologies from around the globe to deliver value added customer solutions.
IRG scoops first New Zealand ERTMS
Westinghouse Rail Systems Australia (WRSA), part of Invensys Rail Group, and New Zealand’s rail infrastructure manager ONTRACK will implement New Zealand’s first installation of European Rail Traffic Management System (ERTMS) in a contract worth AUD $75 million (USD $49 million, EUR €38.17 million) as part of the Auckland Metropolitan Network Train Control and Resignalling Project.The 30-month contract will see WRSA install ERTMS Level 1 train control systems as well as providing comprehensive training for ONTRACK staff to maintain trackside and on-train systems. WRSA will work with local contractors to undertake civil construction and electrical installations, with ongoing support provided from its offices in Auckland and Australia.
WRSA Managing Director, Phil Ellingworth says: “The Auckland rail network is about to embark on one of the biggest signalling changes in its history, and ONTRACK, Auckland Regional Transport Authority and operators require a system that will serve them well into the future. Our delivery methodology has been developed to ensure the least possible disruption to the operating network, ensuring that trains are kept running right up to the time the change-over occurs.
Mr Ellingworth went on to say “Our team is highly experienced at working in multi-disciplinary projects, including those involving electrification and major civil works. Part of our commitment is also to cooperate with the other stakeholders and contractors to ensure the overall project is well planned and coordinated.”
WRSA will install its highly-capable and service-proven WESTRACE Mark 2 interlockings. The modular approach and robust construction of WESTRACE minimises the use of costly relays, and reduces the amount of lineside infrastructure such as cabling.
In addition, the Invensys Rail Group’s SystematICS train management system – specifically designed for business-critical rail applications where total availability, scalability and flexibility are essential – will be delivered, enhancing the reliability of train services.
ONTRACK’s Project Director, Murray Hood, said “WRSA will implement a system based on the latest, most reliable signalling technology. Their proposal incorporated all the features ONTRACK required: A fully compliant European Train Control System (ETCS) Level 1 Automatic Train Protection (ATP) which will provide added safety for all rail users and workers; bi-directional running providing additional train operating flexibility; improved headways across the network providing additional train capacity to support passenger and freight growth; and a new sophisticated train control system with Automatic Route Setting (ARS) which also enables the network to be controlled from two independent control centres.”
Mr Hood went on to say that “WRSA have minimised the project risk by reducing the on-site installation time and minimising disruption to current train operations by installing and testing the new system in parallel to the old signalling allowing it to remain operating safely until its decommissioning.”
“The WRSA solution will provide great value for money to ONTRACK and the people of Auckland."
ERTMS
ERTMS is a pan-European initiative that provides a standardised signalling system, offering greater safety and capacity while improving interoperability between different countries. It is in operation or planned for countries as diverse as Spain, Switzerland, Saudi Arabia, the United Kingdom, Italy, Benelux and Scandinavia.
The components to be installed in Auckland include the latest generation train control system, interlockings, trackside and ERTMS Level 1 train protection system equipment and systems. They are designed to work together, enabling routes to be safely set and the management of train movements optimised. Rather than driving to conventional signal aspects (red for ‘stop’, amber for ‘caution’ and green for ‘route clear’), train drivers are provided with a maximum safe speed on a display screen in the cab. Should a driver exceed this speed, the system intervenes automatically to slow the train to a safe speed.
Jesus Guzman new MD with signalling giant
Invensys Rail Group has appointed Jesus Guzman as Managing Director of its Spanish Dimetronic Signals subsidiary. For almost half a century, Dimetronic has been implementing state-of-the-art railway signalling solutions around Europe.
Guzman has been with the company for six years now, holding senior positions in the R&D, Engineering and Marketing departments. Most recently he has been leading Dimetronic’s day-to-day operations under the guidance of outgoing Managing Director Carlos Monzano.
“Carlos now passes total responsibility for Dimetronic to Jesus with the business in a remarkably healthy state, demonstrating record sales, profits and orders. He will remain with the company as Advisor to the new Managing Director, carrying out a coaching and mentoring role, through to his retirement on 31 October 2009,” said IRG’s President James Drummond.
“Please join me in congratulating Jesus on his appointment and in thanking Carlos for his tremendous achievements in leading Dimetronic over the past six years,” he added.
Safetran V.P. to Co-Chair Key Industry Committee
The Railway Supply Institute (RSI) has appointed Mr. John J. Paljug, Vice President Signaling and Crossings at Safetran Systems Corp., to the position of Co-Chairman of the new, joint committee for Communications & Signals/Maintenance-of-Way.As Co-Chairman, Mr. Paljug will represent RSI member companies in these supply industry segments as the Association addresses rail industry concerns in such areas as rail reregulation, Section 130 highway-rail grade crossing funding, rail infrastructure tax incentives and Federal investment to support the Positive Train Control mandate.
Mr. Paljug has been with Safetran for the past 12 years of his 29 year career in the Communications and Signal portion of the rail industry. At Safetran, he has lead the company’s marketing, sales, product management and field service activities. Safetran is pleased that, with this appointment, Mr. Paljug’s experience and leadership capabilities will be extended to support the rail supply industry as a whole.
Invensys Rail Group delivers Westlock to Portugal
Invensys Rail Group (IRG) has successfully commissioned a new WESTLOCK interlocking installation at a test site in Portugal. IRG companies, Westinghouse Rail Systems and Dimetronic Signals, have been working with Portugal’s infrastructure manager REFER for nearly 20 years, having commissioned Portugal\'s first electronic interlocking - a Solid State Interlocking (SSI) at Campanhã, the main station in Oporto, in 1990.
Given the extensive use of SSIs in Portugal, (second only to the UK in terms of the number of units installed), evolution to WESTLOCK was a natural choice for REFER. Its state-of-the-art technology delivers a modern high-integrity system, providing high reliability and availability. WESTLOCK is compatible with existing SSI infrastructure and track equipment, and its flexible design permits the interlocking to be connected in a variety of ways to provide the most appropriate solution for each situation.
The architecture of WESTLOCK has been designed with high-speed data link capability at its core. Its network communications ability and processor capacity enable faster communication with a range of control centre solutions, trackside equipment and with European Rail Traffic Management System Radio Block Centres.
IRG and REFER signed a protocol in 2007 to undertake tests and validation, with Coruche selected as the test site by REFER. In the south-east of the country, around 60km from Lisbon, Coruche was one of the earliest SSI sites - in 1994 two SSIs were commissioned there, covering five stations over a 30km area of electrified 25kVA, single-track railway (the Vendas Novas line).
The team for the Coruche project drew heavily on experience gained from the trial of WESTLOCK at Leamington Spa, United Kingdom, in 2007: the same trial strategy and protocol was used in Portugal that proved so successful in the UK. Having successfully completed site functionality and thorough testing, the installation was commissioned on 2 November 2008, with the existing SSI retained as a fall-back solution over the six-month trial period.
Project Manager Vince Dade, said: "Final commissioning is scheduled for April 2009, at which point the fall-back SSI will be recovered and we expect to receive full WESTLOCK product approval from REFER for implementation of both base-band and long-distance schemes. The signalling principles and operational requirements of Portuguese railways are very different to the UK, and the application of WESTLOCK demonstrates the versatility of the technology to meet multiple operational requirements.
"Portugal has always been a catalyst for innovation, new technology and forward thinking and this project has provided yet another opportunity to demonstrate the Group\'s capability for the successful delivery of innovative solutions. Once again, REFER has been impressed not only with our technical solutions, but also with the approach, delivery, commitment and expertise of our teams".