Financial Sustainability of Regional Transit - RRTS. National Capital Region Transport Corporation Limited (NCRTC)

Transcription

1 Financial Sustainability of Regional Transit - RRTS National Capital Region Transport Corporation Limited (NCRTC) 9 th November 2016

2 1 What is RRTS? Outline Why RRTS? How is it different from MRTS? Financially Sustainable? 5 Where do we go from here? NCRTC

3 What is RRTS? Regional Rapid Transit System-Regional, Rail based, km Dedicated, high speed, high capacity, comfortable and safe commuter service connecting regional nodes RRTS is different from conventional Railway as it will provide high frequency, point to point regional travel for passengers at a high speed along dedicated railroad RRTS is different from metro as it caters to passengers looking to travel relatively longer distance with fewer stops and at higher speed

4 For Commuters, RRTS offers

5 Why RRTS National Capital Region (NCR) Multi-state region with National Capital as Centre Area of about 35,000 Sq Km With 46 million population, largest metropolitan area in the world

6 Why RRTS Existing cities are congested brown field investments slow in execution & impact Hence, there is a need to create alternate/additional growth centres away from megacities Such developments will result in exponential growth with large socio-economic benefits Rapid & Mass connectivity catering to unmet and induced travel demand can lead to Sustainable Regional Development

7 Why RRTS Development of Megaregions Indian Economy is expected to reach $ 5 trillion by Two Third of this Economy will be located in 3 Megaregions National Capital Region consisting of 19 districts which may expand further Mumbai-Pune-Thane belt extending upto Ahmedabad Chennai to Bangalore Each one of these will have a $ 1 Trillion economy How will people commute in these Megaregions? These Megaregions will need wider connectivity and transport corporations that will have ownership of all participating stakeholders and state governments

8 NCRTC Institutional Structure NCRTC was incorporated in Aug State Governments joined hands with GoI to implement country s first Regional Transit System in NCR Equity structure of NCRTC is : Govt of India - 50% States of NCR -50% (12.5% each) State Govt of UP State Govt of Rajasthan State Govt of Haryana Government of NCTD

9 How is it different from MRTS? Variations in geographic reach (within city or regional) and majority commuter profile Both can be feeder/dispersal systems for each other MRTS and RRTS are not supplementary but complementary to each other

10 How is it different from MRTS? Impact on city development MRTS typically results in densification within city limits, however, incremental value appreciation is limited However, RRTS can support creation of urban agglomeration and satellite cities or new economic centers around main city, like Delhi Resultant impact of RRTS in terms of incremental value is much larger as it improves regional connectivity Appreciation of Land Value at the furthest Point

11 Financial Sustainability World over mass transport systems are financially not sustainable on stand alone basis and are supported through Government support/subsidy Financial viability definition needs to be revisited, Financially Sustainability improves as we move to right. O&M Interest Systems Infra Manpower, energy & spares Recurring Cost (Opex) Rolling stocks, S&T, E&M Civil Infra, Tracks, Stations, Depots Land, other costs Non-Recurring Cost (Capex) The project needs to recover O&M expenses, preferably through fare box collections

12 Enabling Financial Sustainability (1 of 4) Standardization of Technical Specification Multiple Urban Transportation Projects are coming up in the Country Opportunity for economy of scale by fixing common standards for similar projects and encourage common tendering MoUD actively working Unified Transport Planning Authority A planning authority which can facilitate the coherent working of multiple transportation/government agencies The agency s mandate should be to decrease the cost and time of project execution through better management of land acquisition/row issues and promote multi modal integration Employing Value Engineering to bring down the Project cost

13 Enabling Financial Sustainability (2 of 4) Rationalizing Manpower Cost Promoting Cross functioning and Multi Tasking Outsourcing of non-critical activities Bringing down the Energy expenses Optimised Operations Employing PPP to use non-conventional energy sources at lower rates

14 Enabling Financial Sustainability (3 of 4) Reducing Spare Costs Development of local vendors for supplying spares Use of IT to enable optimum utilization ( Assets Management System) Minimize Interest cost Adherence to Project time lines to reduce IDC Selection of soft loans after due diligence

15 Enabling Financial Sustainability (4 of 4) PULL Quality of Service Integration with other transport systems, last mile connectivity PUSH Discouraging Private Transport Uses Regulation, Design RIDERSHIP Fare Box TOD and Land Use Integration Alternate Revenue Models Conventional Sources Non-Fare Box Additionally, Value Creation in Land and Regional economy needs to be captured by appropriate authorities and ploughed back to the RRTS

16 Case Study Regional Rail in Germany In Germany, 27 regional passenger rail authorities are responsible for organizing and financing RRT in their respective regions The regions receive approximately 7 billion Euro per year to support operating deficit Revenue from Fare box States and regions support investments made by DB Netz AG (Infrastructure manager) Access charges typically supports up to 1/3 rd of capex financing

17 Case Study Regional Rail in France The responsibility of financing the regional passenger rail services in France is assigned to the 20 metropolitan regions The amount paid in compensation for the regions is approximately 2 billion Euros to support Operations Deficit States and regions support investments made in Rail Infrastructure

18 Take away Mass Transit projects, on standalone basis, not financially viable, as they may not match the benchmark criteria for FIRR by GoI Need to evaluate RRTS projects on overall regional socioeconomic impact basis and not pure financial feasibility The deficit (in capex or opex or both), then, needs to be met through appropriate value capture mechanisms State governments, being the largest beneficiaries, to take lead in capturing the value addition and passing on to projects GoI guidelines

19 गत स प रगत Thank You

20 RRTS will travel at 3 times the average speed of Metro