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Siemens-“Bullet

Train”
Team members:

SIEMENS

 SYED USMAN WAZIR


 SYED ALI NAQI
 ANILA MUHAMMUD
 QURAT-UL-AIN RAUF
 ANUM SAFDAR KHAN
 SADAF MANSOOR
ANUM SAFDAR
INTRODUCTION

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INTRODUCTION:

 Siemens AG (Berlin and Munich) is a global


powerhouse in electronics and electrical
engineering, operating in the industry,
energy and healthcare sectors.

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  The company has around 400,000
employees (in continuing operations)
◦ working to develop and manufacture products,
◦ design and install complex systems and
projects,
◦ and tailor a wide range of solutions for individual
requirements
Our Values and Vision: a guide to
our business conduct
 Our stakeholders – customers, shareholders,
employees, suppliers and the societies in
which we operate – expect the highest
performance and the highest ethical

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standards. Meeting these requirements is
the ultimate determinant of our success.

 Reaching this goal requires a
new balance in which values,
business operations and the

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pursuit of our vision co-exist
harmoniously


 Our success depends on the success of our
customers.

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 Innovation is our life blood.




 Our employees are the key to our success

 Our ideas, technologies and activities help
create a better world.

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 We generate profitable growth to ensure
sustainable success.

SIEMENS RAIL INDUSTRY

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Core Products
 Rail automation, which includes spare
parts and up to date railway related
accessories.
 Locomotives, which are used for trams
and intra city tracks.

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 Electrification, which include state of the
art electric supply system for maglev
and electric trains.
 Light rails, which are also used for trams
and intra city commutation.
 Turnkey systems, which are specific trains
designed for underground subway
systems

 Trains, which include high speed valario and
other bullet trains
 Integrated services, which include software
and hardware solutions for railway logistics

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and supports.
 Heavy rail, which are used for freight and
cargo delivery.

GLOBAL PRESENCE:

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FOREIGN MARKETS ATTRACTIVE
FOR SIEMENS
 CHINA:

◦ It has been engaged in providing several high

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speed trains to China and had also worked in
collaboration with Shanghai Metro Group since
1989.
◦ It has also engaged in the expansion of the
metro in Guangzhou since 1994.
◦ China is providing Siemens with a "strong base
in a dynamic environment"


 INDIA:


◦ India has been one of the major countries where

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Siemens is catering to the electrical
engineering and electronic market.
◦ The country is offering tremendous growth
potential for infrastructure development for
Siemens.
◦ India is a "key market for growth" for Siemens

COMPETITORS

 The SIEMENS consider the following as their


major competitors in the market

◦ Alstom of France

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◦ Bombardier of Spain
◦ Finmeccanica of Italy
◦ Invensys of United Kingdom

SADAF MANSOOR

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RAILWAY
TECHNOLOGY
 Rail Gauge
◦ Narrow Gauge (about 3 ft 6 inches width)
◦ Standard or International Gauge (4ft 8.5
inches)

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◦ Wide gauge (above 4ft 8.5 inches width)
◦ Dual Gauge



Types of Trains Chosen
 ELECTRIC TRAINS
◦ Three Power Sources
 Overhead lines
 Voltage capacity of AC 25,000v
Maintaince : segments worked independently

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Power supply using different sources
Third Rail
Hazardous than previous source
Built up third rail for carrying current
Rechargeable Source


 World’s fastest trains
◦ Shinkensen of Japan and TGV of
France
 Characteristics of Electric trains

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◦ Maintenance costs low
◦ Noiseless causing less pollution
◦ Developed countries usage
◦ Good source where oil reserves are
depleting
◦ Infrastructure extremely expensive

DIESEL ELECTRIC
LOCOMOTIVE
 Diesel engine used to drive an electric
generator
 Suitable as infrastructure costs are lower
 Technology used in other areas as well

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 More fuel efficient than electric locomotives
MAGLEV TRAIN
 A revolution in the industry
 Record breaking speeds of above 581km/hr
◦ Travels above the ground
◦ Almost no friction
Components included

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◦ Powerful electric power source
◦ Magnets attached
◦ Track lined with metal coils
 Siemens provided Maglev trains to China in
2001-2002


 Market growing on average 2% yearly
 Generates Business volume worth EUR103.3
billion
 Important Growth markets are Eastern

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Europe, CIS and Asia-Pacific


 Reasons for Growth
◦ Economic growth , heavy urbanization >
growing traffic volume
◦ Increased Governmental support for

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development of railways
◦ Railways play important role in development of
economies
◦ by 2015, passenger traffic increase by 30%,
freight traffic by 70%


 50% of world population lives in urban
areas, will increase to 60% y 2020
 High speed usage based on travelling time
 Countries economic growth favors

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development
 Western Europe slow growth rates but
account for 32% of total business
 NAFTA region accounts for (EUR 22 billion)


 Up keeping, maintaining and replacing
existing systems is a key revenue factor
 Asia strong development because of
increasing population, development and

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industrialization


Environmental Factors
◦ Car transport has much higher transmission of
CO , HC, NO than air and rail travel
◦ However rail travel emits greater SO when
compared to road and air travel
◦ Emissions of SO greater than rail for shorter

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journeys
SWOT analysis
Strengths Weaknesses
Shorter time (passenger/freight) Overall Cost

Existing Expertise (China, India etc) Infrastructure buildup starting from scratch

Customer preference to choose Siemens Pakistan's position on Global Competitive

2.5million train users


scale(India 27th )
Employment opportunities for local people

Avoidance of double taxation

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Threats Opportunities
Fuel shortages will create problems First mover advantage

China's position Privatization hype of railways

Delay in Project acceptability, higher costs Growing needs of the market where demand

Political instability and uncertainty exceeds supply


Airline industry carries 70% of domestic freight PR stagnant and slow growth (10% passenger

traffic traffic, 5% freight traffic


video

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QURAT-UL-AIN RAUF

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CURRENT STATUS OF HOST
COUNTRY
 Rail Statistics of Pakistan
 total Length : 8,163 km
broad gauge: 7,718 km 1.676-m
gauge (293km electrified)

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narrow gauge: 445 km 1.000-m gauge
(2006)

Major routes

◦ Peshawar-Karachi Route
◦ Peshawar-Quetta Route
◦ Lahore-Sialkot Route
◦ Lahore-Faisalabad Route

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◦ Faisalabad-Khanewal Route
 Our Focus
◦ Islamabad-Lahore and vice versa

DATA OF REVENUE RECEIPTS
Year Passenger Freight Other Earnings Overall Earnings

(Rs) (Rs)
PKMs Earning (Rs) TKMs Earning (Rs)

2003-04 22.8 8.2 4.9 4.6 1.7 14.5

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2004-05 23.2 8.6 5.5 5.2 1.9 15.7

2005-06 23.7 90. 6.3 5.9 2.0 16.9

2006-07 24.3 9.5 7.3 6.9 2.3 18.7

2007-08 25.0 10.0 8.4 7.9 2.5 20.4

2008-09 25.8 10.7 9.6 9.0 2.8 22.5

2009-10 26.8 11.7 11.1 10.4 3.1 25.2

2010-11 27.9 12.9 12.7 11.9 3.6 28.4


PAKISTAN RAILWAYS
DEVELOPMENTAL PLANS 2005-
10Up gradation and improvement of track from Khanpur to

Lalamusa

 Dualization of Track from Khanewal to Raiwind and Shahdara
to Lalamusa

Feasibility Study for provision of rail link from Dina to Mirpur

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AJK

 Improvement and rehabilitation of old and obsolete
signaling system on Karachi – Peshawar section in phases

 Electrification of Lahore – Khanewal double line section with
rehabilitation of existing single line Lahore – Khanewal
section

 Procurement/ manufacturing and assembly of 100
passenger coaches

INTERNATIONAL GOVERNMENT
POLICIES
 Extensively regulated in all sectors

 Government restrictions

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 Regulatory controls have led to the poor
railway system

NATIONAL GOVERNMENT
POLICIES
 Government decision to restructure Pakistan
railways

 Focus on core business of rail services

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 Development of the manufacturing units of
Pakistan Railways

BENEFITS RELATING TO THIS
REFORM EXERCISE
 It would offload railway budget from the
non- core activities

 It would facilitate manufacturing units to
have their autonomous entities for

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seeking business from the private
enterprises

 It would facilitate preparation corporate
plans and feasibility for their future
operations and implementation strategy.



 The manufacturing units will follow a
policy for developing original
capabilities of the new companies to
design, manufacture coaches,
locomotives and sleepers by

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developing research and development
activity, design centre, human and
capital formation

 It would lessen dependence on foreign
manufactures and develop potential to
compete in foreign markets.

Anila Muhammed
TRENDS…

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Trend Analysis
 Survey
 Sample size
 Location
◦ Daewoo Terminal

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Rawalpindi
◦ Airports
Rawalpindi & Islamabad
◦ Railway Stations
Rawalpindi & Islamabad


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Consumer Behavior

 Siemens general status


◦ 8% (China)
 Segmentation

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MAJOR LOCAL COMPETITORS

 Express and Non-express Trains


 less than 4 hours
◦ Subak Raftar express
◦ Islamabad non-stop

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◦ The Margala Express

 Journey varies to 5 to 8 hours
◦ Khyber Mail
◦ Tezgam
◦ Awam Express


Trains
 Strengths
◦ Frequent trips
16 trains
◦ Lower costs
◦ Miscellaneous

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Washrooms
Snack items, meals newspapers & magazines
◦ Efficient in fuel consumption

 Weakness
◦ Lower quality(justified by the price)
◦ Takes longer time


Roads (Motorways)
 Road travel in Pakistan carries about 80%
 Motorway
◦ M1 (ISB TO PSH)
◦ M2 (LHR to ISB)

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◦ M4 (FSB to MUL)
 NHA is managing 3% of the total entire road
network
◦ 75% of the country’s road traffic
 M2
◦ developed by Daewoo
◦ cost of Rs 36.7 billion
Roads (Bus Service)
 SAMMI DAEWOO BUS SERVIVE
◦ Travel 35 times daily
◦ Capacity of about 40 seats
◦ Security
◦ Departure after every half an hour

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◦ Snacks along with drinks
◦ Stop over points
G7 sector of Islamabad
◦ Head phones and have LCDs
◦ Rs480 (Standard Bus)
◦ Rs 750 (Royal Decker Buses)



Drawbacks
 Pollution
◦ lesser implementation of environmental
standards
 Urbanization and growth in population has

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resulted in massive destruction of
landscapes and trees.

AIR TRAVEL

 PIA
◦ 5 times daily
◦ Ticket price is about Rs 7500 but it is subject to
change

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 Drawbacks
◦ Expensive service
◦ Limited option available
SYED ALI NAQI
PROJECT FEASIBILITY

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Revenues
 Sales Revenue

Type of Revenue per Revenue per Total Total
custome customer customer customer/yearRevenue
r (excluding taxes) (Including

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taxes)
VIP 1500 1725 547500 944437500
class
General 2500 2875 730000 2098750000
Class
Total 1277500 3043187500

 Revenue from Cargo Handling

Basic Rate/car Per train Per month Per year

Rs.1509375 Rs.15093750 Rs.45281250 Rs.543375000

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 Revenue from marketing



Basic Rate/car Per train Per month Per year

Rs.1000000 Rs.10000000 Rs.30000000 Rs.360000000

Sales cargo marketing Total


3043187500 543375000 360000000 3946562500
costs
 Cost of land

Land
Total Required sqft 100000000 Chakwal sqft 200

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cost/sqft 350 jehlum 425

Total cost 35 billion gujrat 380

gujranwala 400

Average 350

 Cost of Track

Cost/ square meter Total length Total cost

82500 500,000 41,00,0000,000

Cost of Trains

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Cost of one unit Total total cost

6000000000 3Units 18000000000

 Engineering/Materials

Cost/ square meter Total length Total cost

4000 500000 2000000000


Costs Bearing
Sr. No Nature of cost Amount The bearer
1 Cost of Land 35000000000 GOP
2 Cost of Track 41000000000 GOP
3 Cost of Trains 18000000000 Siemens
4 Cost of 2000000000 Siemens

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Engineering
Total Cost etc 96000000000 -
5 Operating 750 million Siemens
expenses annually
Terms & Conditions
 The project would be the sole property of
state of Pakistan and can not be pledged
by any entity other than state of Pakistan
 The project would be leased out to Siemens

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for 20 years time
 The Siemens would operate the whole
system at its own & GOP would receive
taxes only
 After 20 years the whole project &
infrastructure would be handed over to
state of Pakistan
 20% of free income would be given to

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government of Pakistan

contract

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SYED USMAN WAZIR
MARKETING PLAN

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LOGO & NAME
 BURAQ

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MARKETING PLAN
 Billboards
 Website
 Sponsorships
 Commercials

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 Print media
 Others
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Recommendations
 The project should be carried out by the
Government of Punjab with funding from
Asian Development Bank;
 some basic regulation for providing legal cover
on who is going to implement this project so

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as to avoid future conflict.
 Otherwise if the current government changes
hands the project may die too.
 Provincial legislature should do law making to
give this project to either a subsidiary dept of
provincial government OR a private company

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or make law for a brand new "mass transit
authority" for the project

Q&A,
VOTING…

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