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Slide

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

Reserved

Administrative

announcement

RailTEC@Illinois•

Exam

April

4

(Friday)

,

2

pmSlide

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

Reserved

Lessons

Learned

in

the

Construction

of

the

Taiwan

High

Speed

Rail

RailTEC@Illinois

High

Speed

Rail

EngineeringTC

Kao,

Ph.D.,

P.E.Director

&Professor-

High

Speed

Rail

SystemsRailroad

Transportation&

Engineering

Center(RailTEC)Slide

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

ReservedWhy

does

Taiwan

need

High

Speed

Rail?

RailTEC@IllinoisPer

GDP

of

Taiwan(US

Dollar)AnnualIncreasing

Rate(%)Slide

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

ReservedGDP

of

Taiwan

(1970-1997)

RailTEC@Illinois

YearSlide

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

ReservedCongestion

of

the

Freeway

RailTEC@IllinoisSlide

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

Reserved

Alternatives

RailTEC@Illinois1.

Third

N-S

freeway.2.

Improvement

on

the

current

railroad

trunk

line.3.

Tilt

train

technology4.

High

Speed

RailSlide

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

Reserved

History

of

Project

RailTEC@Illinois•1987

Feasibility

study

by

Government•1989

Government

establishedpreparation

office•1993

Legislature

demanded

PrivateParticipation•1994

Government

passed

enactmentact

for

private

participation•1996

Invitation

for

Express

of

Interest•1997

Government

selected

THSRConsortium

as

the

preferred

bidderSlide

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

Reserved

Why

Private

Participation

?

RailTEC@Illinois•

Lessons

learned

in

the

Taipei

Mass

Rapid

Transit

projects-

efficiency

of

public

works•

Competitions

of

public

funds•

Entrepreneurship

of

private

sectors

Private

funding•

Efficiency

of

private

management

To

Share

the

risks

&

gainsSlide

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

ReservedSteps

of

Privatization

RailTEC@IllinoisEncouragementAct

for

PrivateParticipation

inInfrastructureProjectsConstruction

&OperationAgreement(C&OA)

Operation

Preparation-

Land

Acquisition

-

EIA

/

EIR

-

Geotechnical

/Utility

-

Preliminary

Design

-

Tender

Documents

-

Road

ShowsCall

for

Tenders

Tender

EvaluationNegotiation

&

Award

ConstructionSlide

10©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

ReservedConcession

Period

35

yearsOperateBuildTransfer

Transfer

assets

togovernmentTHSRC

BOT

SchemePlanning

Planning

byGovernment

10

YearsSlide

11©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

ReservedRailTEC@IllinoisConstruction

&

OperationAgreement

(C&OA)-1Project

Requirements:•

Right

of

Way

(ROW),

Alignment•

System

Design

Criteria

and

O&M

Requirements

(Core

system,

Infrastructure,

Operation

&

Maintenance)•

Independent

Verification

&

ValidationSlide

12©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

ReservedRailTEC@IllinoisConstruction

&

Operation

Agreement

(C&OA)-2Concession

Rights

:•

35

year

construction

&

operation

right•

50

year

station

land

commercial

rightStation

Land

HSRAlignment•

Cash

subsidy

for

non-recoverable

investment

Business

Development

LandSlide

13©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

ReservedRailTEC@IllinoisConstruction

&

Operation

Agreement

(C&OA)-3

Government

Obligation:•

Land

acquisition•No

second

HSR

in

the

western

corridor

in

next

30

years•

Provide

subsidy

for

the

“non-recoverable

(non-

self

-liquidating”)

investment

of

the

concessionaire.Slide

14Fierce

Competition

RailTEC@Illinois•

China

High

Speed

Rail

Consortium

KMT

backed

enterprises•

Taiwan

High

Speed

Rail

Consortium

5

young

entrepreneurs

5

successful

private

companies(中央社)

(中國評論新聞網)©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

ReservedSlide

15©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

Reserved

An

offer

government

can

not

resist

RailTEC@Illinois•

China

High

Speed

Rail

Consortium

Government

financing

-

NT$

149.5

billions•

Taiwan

High

Speed

Rail

Consortium

Government

Financing

-

NY$

(-)

105.7

billionsSlide

16©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

ReservedThe

World’s

First

Privatized

HSR

Rolled

Off

RailTEC@Illinois•

Main

Characters-

A

government

with

limited

privatization

experience

+

An

eager

concessionaire

World’s

largest

BOT

Project

A

Rocky

RoadSlide

17©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

Reserved

Controversies

RailTEC@Illinois1.

Aggressive

bid

by

the

concessionaire

during

the

tender

stage.2.

Tripartite

loan

agreement

signed

by

the

Government,

the

bank

and

the

Concessionaire.3.

Awarding

the

core

contract

to

Shinkansen.4.

Close

identification

with

Democratic

Progressive

Party

(DDP).5.

Investment

from

government

controlled

companies.6.

Initial

operation

difficulty

&

2008

restructuring.Slide

18©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

ReservedThe

World’s

first

private

HSR

RailTEC@IllinoisHigh

Speed

Rail

Route

Plan

RailTEC@Illinois•

The

total

length

of

the

High

SpeedRail

is

345

km

(214

mi.)

from

Taipei

toKaohsiung

and

passes

through

14cities

and

77

towns.•

8

Stations

to

be

constructed

under

the

initial

phase

of

the

Project:•

4

Stations

planned

for

later

phases

of

the

project•

Main

Workshop:

Yanchao

(near

Kaohsiung)•

3

Stabling

Yard

:

Sijhih,

Wurih,

Zuoying•

4

Infrastructure

Maintenance

Bases:

Sijhih,

Lioujia,

Wurih,

Taibao,

Zuoying•

Maintenance

Center:

Zuoying

Slide

19

Depot

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

Reserved

HSR

Miaoli

Station

HSR

Taichung

Station

HSR

Changhua

Station

HSR

Yunlin

Station

HSR

Chiayi

Station

HSR

Tainan

StationHSR

Zuoying

StationHSR

Hsinchu

Station

HSR

Sijhih

Depot

HSR

Taipei

StationHSR

Taoyuan

StationHSR

Nangang

Station

HSR

Banciao

StationHSR

Lioujia

Depot

HSR

Wurih

DepotHSR

Taibao

Depot

HSR

Yanchao

Main

Workshop

HSR

ZuoyingITEM2000200120022003200420052006CivilWorks•Design/BuildStations•Design/Tender•BuildDepots•Design/Tender•BuildTrackWorks•Design/BuildCoreSystem•Procurement•InstallationTesting&Commissioning©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

ReservedSlide

20Master

Program

RailTEC@IllinoisCopyright

©

2006

Taiwan

High

Speed

Rail

Corporation.

All

Contents

Confidential.Slide

21©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

ReservedRailTEC@IllinoisSlide

22©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

ReservedRailTEC@IllinoisSlide

23©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

ReservedRailTEC@IllinoisSlide

24©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

ReservedRailTEC@IllinoisSlide

25©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

ReservedSlide

26©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

ReservedRailTEC@IllinoisSlide

27©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

ReservedRailTEC@IllinoisSlide

28©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

ReservedStandard

classT

700

Trainset

RailTEC@Illinois•

12

coaches•

1

business

,11

standard

class•

989

passenger

seats

Business

classSlide

29©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

ReservedTop

Operation

Speed

300

km/hr

RailTEC@Illinois

Taipei-

Taichung

45

min

Taipei-

Kaohsiung

90

minSlide

30©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

ReservedImpact

on

Regional

Development

RailTEC@IllinoisTaichungAfter

the

completionSlide

31©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

ReservedWest

Corridor

Regional

City

TaipeiCKSTaoyuan

TaipeiHsinchuTaichungChiayi

Tainan

KaohsiungKaohsiung

TRAExpwyHSRBeforethe

completionof

HighwayTaipeiTaoyuanHsinchuTaichungChiayiTainanKaohsiungTaoyuan

19.75

minTaipei-

BAC

-

TAY-Hsinchu

32.75

minTaipei-

BAC

–Taichung

45.75min

Taipei

-

BAC

-

TAC

-

Chiayi

83.75minTaipei-BAC

-

TAC

-CHA-

Tainan

103

minTaipei

–Zuoying

90

minNorthern

Taiwan

Metropolitan

AreaCentral

Taiwan

Metropolitan

AreaSouthern

Taiwan

Metropolitan

Areaof

HighwayWest

Corridor

Megapolis

After

the

completion

of

High

Speed

Rail1-Day

Living

Periphery-

Round

trip

within

one

daySlide

32New

Taiwan

Taipei’s

View

Taipei

TaipeiHsinchu

HsinchuTaichung

Tainan

Taichung

Kaohsiung

Kending

Sun

Moon

Lake

A-li

Mountain

Tainan

Kaohsiung

Kending©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

Reserved

Sun

Moon

Lake

A-li

Mountain

TaidungTaidungSlide

33©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

ReservedA-Li

MountainTaidungKaohsiung

KendingTainanSun

Moon

LakeKendingTaidungHsinchu

Sun

Moon

Lake

A-LiMountain

Taichung

Taichung

TainanKaohsiungNew

Taiwan

Taichung’s

View

Taipei

Hsinchu

TaipeiSlide

34©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

Reserved

Taichung

Tainan

Tainan

KaohsiungKaohsiungKending

KendingTaidung

TaidungSun

Moon

Lake

A-Li

Mountai

nNew

Taiwan

Kaohsiung’s

View

Taipei

Hsinchu

Taichung

Sun

Moon

Lake

A-Li

Mountain

Hsinchu

TaipeiSlide

35©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

ReservedNew

Towns

RailTEC@IllinoisSlide

36©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

ReservedHigh

Speed

Rail

New

TownNTaoyuan

TaoyuanHsinchuHsinchuTaichungChiayi

Taichung

ChiayiTainanTainan

Taoyuan

:490

ha

Hsinchu

:

309

ha

Taichung

:

272

ha

Chiayi

:

135

ha

Tainan

:

299

ha

Total

:

1,505

haRailTEC@Illinois

Slide

37

New

Life

Style©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

ReservedSlide

38©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

ReservedMilk

Way

High

Speed

Rail

Restaurant

RailTEC@IllinoisSlide

39

Before

HSR©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

ReservedAfter

HSRNew

Life

Style

–Affordable

RailTEC@IllinoisSlide

40Love

is

no

more

a

long

distance

internet

romance

RailTEC@Illinois

Before

HSR©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

ReservedAfter

HSRSlide

41Home

coming

RailTEC@Illinois

Before

HSR©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

ReservedAfter

HSRSlide

42

Before

HSR©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

ReservedAfter

HSRFamily

companionship

RailTEC@IllinoisSlide

43©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

ReservedMy

life

as

a

HSR

Customer

RailTEC@IllinoisSlide

44©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

Reserved

My

life

as

a

HSR

Customer

RailTEC@Illinois•

While

THSR

has

only

a

short

three

years

history,

it

appears

that

the

“mindset”

of

the

people

in

Taiwan

already

has

THSR

culture

deeply

embedded

in

its

psyche!•

I

suddenly

found

my

life

to

be

fully

integrated

with

this

rail

system!

Taking

the

high

speed

rail

at

least

two

to

three

times

a

week,

almost

always

by

necessity

and

not

by

pleasure,

no

longer

made

me

a

theme

park

rider

of

the

system.•

Today,

it

is

inconceivable

NOT

to

have

the

THSR!•

There

are

no

naysayers

anymore!Daily

Ridership

(103

Passenger/

per

day)Slide

45©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

Reserved40

Ridership120100

80

6005101520253035404550Months

of

Commercial

ServiceeTHSR

Ridership

Growth

Curve20

-Slide

46©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

ReservedAnnual

Financial

Report-

2010Slide

47©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

Reserved

Lessons

Learnt

inEngineering

&

Management

RailTEC@IllinoisSlide

48©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

Reserved

Civil

Works

RailTEC@Illinois•

Bridges

and

Viaducts

(73%)•

Tunnels

(18%)•

Earthworks

(9%)Slide

49©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

ReservedRailTEC@IllinoisSlide

50©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

ReservedSlide

51©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

ReservedPublic

Private

Participation

(PPP)

Is

it

successful?

RailTEC@IllinoisSlide

52©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

Reserved

Project

success

criteria

RailTEC@Illinois•

Project

Management

Success

Time

Cost

Quality•

Product

success

Meeting

the

project

owner’s

strategic

objectives

Satisfying

the

user’s

needsSlide

53©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

ReservedTaiwan

High

Speed

Rail

RailTEC@Illinois•••••••Rapid

economic

development

from

1960s

to

1980sKick-off

in

1989Privatized

in

1993BOT

agreement

signed

in

1998Total

length=

345

km.Commercial

service

launched

on

January

5,

2007World’s

first

private

high

speed

rail.Slide

54©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

Reserved

Korean

High

Speed

Rail

RailTEC@Illinois•

Rapid

economic

development

of

Korea

between

1960s

and

1980s•

The

decision

to

construct

a

high

speed

line

linking

Seoul

and

Busan

was

made

in

May

1989.•

Construction

started

in

1992•

Total

length=

412

km•

Commercial

service

launched

on

April

1,

2004

(

only

238

km

high

speed

line)•

Government

sponsored

public

workSlide

55©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

Reserved

Similarities

RailTEC@Illinois•

Stimulated

by

a

pressing

economic

need

arising

from

Asia’s

rapid

economic

development

between

1960s

and

1980s.•

Aimed

at

solving

freeway

congestion

arising

from

the

rapid

economic

growth.•

Each

planned

to

connect

the

capital

city

with

the

countries’

largest

port.•

Similar

route

distances

345

kilometers

for

Taiwan

412

kilometers

for

KoreaSlide

56©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

Reserved

Similarities

(2)

RailTEC@Illinois•

Aimed

at

achieving

the

top

operational

speed

of

300

km/hr.•

Initiated

in

the

same

year

(1990).•

Routed

through

the

most

densely

populated

city

corridors:

THSR

serves

approximately

94%

of

Taiwan’s

population

(22

million)

KHSR

serves

approximately

71%

of

South

Korea’s

population

(35

million.Slide

57©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

Reserved

Route

of

the

KHSR

RailTEC@IllinoisSeoul

BusanSlide

58©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

Reserved

Construction

history-

KHSR

RailTEC@Illinois•

Route

selection

around

Kyungju•

Closed

mines

discovered

underneath

the

tunnels•

Indecision

of

station

location•

Naming

a

new

station•

Tunnel

under

Mount

CheonsungDatesHSRsPlannedStartdatePlannedCompletiondateActualStartdateActualCompletiondatePlannedDuration(Months)ActualDuration(Months)OverrunRatioTSHRMarch,2000Oct,2005March,2000Jan,200768821.21KSHR(Phase1)March,1992Dec,1998March,1992April,2004821451.77Slide

59©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

Reservedi

Time

RailTEC@IllinoisTime,

can

be

measured

in

terms

of

schedule

overrun

ratio:

s

Ta

iCostsHSRsInitialbudget(billionUS$)Finalcost(billionUS$)Length(km)UnitCost(millionUS$perkm)Overrun(billionUS$)OverrunRatioTHSR14.415.2434544.20.821.06KHSR(Phase1)5.3111.5823848.76.272.18Slide

60©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

Reservedi

Cost

RailTEC@IllinoisCost,

can

be

determined

by

computing

actual

cost

as

apercentage

of

the

initially

planned

budget:

C

Ca

iHSRsPerformanceTHSRKHSR(Phase1)Ontimeperformance99.4%95.5%Slide

61©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

Reserved

Quality-

On

time

performance

RailTEC@Illinois“on

time

performance”

criterionSlide

62©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

Reserved

Project

success

criteria

RailTEC@Illinois•

Project

Management

Success

Time

Cost

Quality•

Product

success

Meeting

the

project

owner’s

strategic

objectives

Satisfying

the

user’s

needsSlide

63©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

ReservedKTX

vs.

THSR

RailTEC@Illinois

KHSRSlide

64©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

ReservedEvolution

of

KTX

trainsKTX/

KTX

II

/

HEMU

400

RailTEC@IllinoisSlide

65©

2013

University

of

Illinois

at

Urbana-Champaign.

All

Rights

Reserved

Lessons

learned

RailTEC@IllinoisThe

PPP

of

the

THSR

project

presented

a

unique

opportunity

toexplore

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