Presentation of Cambodian Railway Development & on Costing and Pricing of Rail Services
1. KINGDOM OF CAMBODIA
MINISTRY OF PUBLIC WORKS AND TRANSPORT
MINISTRY OF PUBLIC WORKS AND TRANSPORT
Railway Department
COUNTRY REPORT AND THE RAILWAY
DEVELOPMENT IN CAMBODIA
&
COURSE PRESENTATION
on
“Costing & Pricing of Rail Transport Service”
Presented by Mr. Sok‐Tharath CHREUNG
Deputy Director of Railway Department
Date February 2014
Date February 2014
Organized by AITD & NAIR
3‐15 February 2914, Vadodara, INDIA
2. Contents
I. Country Report and the Railway Development in
Cambodia
Course Presentation:
II. Cost and Pricing of a Train Passenger Service in
Cambodian: Train? still Bus?
III. How to make Cambodian Railway Systems
profitable?
3. I. CAMBODIA’s
Country Profile
15.26 millions (2012)**
Annual Population
Growth
1.5 per cent (2010-2012)
Urban Population
20 %
GDP Growth
7.2 % (2012)
GDP per capita
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US$ 934 (
$
(2012)**
)
Currency
Riel but US$ is widely used
Major Ports
Member State of ASEAN in Apr 1999
Member State of ASEAN in Apr 1999
181,035 sq km
(just about the same size of
Gujarat State of India)
India)*
Population
Capital City: Phnom Penh
Land Area
Sihanoukville Port and
Phnom Penh Port
Length of Roads
(National, Provincial & Rural)
45,256.03 km (2012)
Length of Railroad
Length of Asian
Highway Route in
Cambodia
1,486.8 km
(AH1, AH11 & AH123)
Number of Vehicle
* Gujarat State’s Area: 196,204 Km2
652 km (connected with
Thailand and seaport)
*Missing link with VN & Laos
1,761,415 vehicles (2012)
**Source: IMF
3
4. Cambodia’s Railway Networks
1. Northern line, consists of 386 km
- Phnom Penh to Poipet (Thai Border)
- Si l Track Meter gauge 1000mm
Single T k M t
1000
- Constructed since 1929 (during
French Colonial Era) and finished in
1942 using steel sleepers (are
replaced by concrete sleeper) bold
rigid and used P 30 of rail support for
15 tons axle load (will be upgraded to
20 tons axle load). It consists of 49
Stations.
Stations
(still under rehabilitation).
2. Southern line, consists of 266 km
- Phnom Penh to Sihanoukville Port
- Single Track Meter gauge 1000mm
- Constructed since 1960 (After
Independent from French) and
finished in 1969; using concrete
sleepers and P 43 of rail support for
20 tons axle load. it consists of 29
Stations.
(
(rehabilitation completed in 2011)
p
)
These rehabilitated projects cost US$142
Millions and are financed by ADB
(60%), AusAid (15%) & RGC (15%).
5. Summary of Cambodia’s Road Networks
Length,
Km
Road Classification under MPWT
NR, 1
digit
2 262 77
2,262.77
NR, 2
digit
3,360.30
NR, 1 digit
,
g
NR, 2 digit
PR, 3 & 4 digit
Total
Road
Class
Provinci
al Road
Rural
Road
Total
Road
Classification
Length,
Km
2,262.77
,
3,360.30
6,627.96
12,231.78
45,256.03
- Road Density is about
249.87 Km/1000
km2
NR ,1 digit
18.34%
18.34
27.47
54.19
100
PR, 3 & 4 digit
PR
di i
54.19%
6,627.96
33,005.00
Length,
(%)
NR , 2 digit
di i
27.47%
Road Pavement type under MPWT
Road Pavement Type
Portland Cement Concrete, PCC
Asphalt Concrete, AC
Double Bituminous Surface
Treatment, DBST
Laterite
Earth Road
Total
Length, Km
Length, (%)
23.02
0.19
934.5
7.64
4,756.68
38.89
5,189.65
42.43
1,327.93
10.85
12,231.78
100
5
9. Major Ports and Airports in Cambodia
Cambodia has 02 autonomous ports, - Provincial authorities have 02 coastal
ports and seven river ports,
- Private enterprises owned have 03
coastal ports, and
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- District authorities have 42 ports.
Siem Reap
International
Airport
Phnom Penh
International
Airport
Cambodia has 02 International
Airports,
Airports -- Phnom Penh International
Airport and Siem Reap International
Airport.
Sihanoukville
Autonomous Port
(Sea Port)
Phnom Penh
Autonomous
Port (River Port)
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10. The Chronicle of Cambodian Railway
1. French Colonial Era (1863-1953): The First Construction of Cambodian Railway in 19291942 of the Northern Line for 386 km (from Phnom Penh to Thai Border).
2. Independent Era (King Sihanouk, 1953-1970): The 2nd Construction of Cambodian Railway in
1960-1969 of the Southern Line for 264 km (from Phnom Penh to Sihanoukville Port) for the
purpose of buster international trade.
3. The 1st Civil War (American-Vietnam War:1970-1975): The first wave of destruction of
Cambodian Railway. Both lines were frequently blew up sections by sections; all trains
operation were almost completely ceased.
4. The Communist Regime (Khmer Rouge, 1975-1979): Both lines were rehabilitated (a major
mode of transport), but train operations’ capacity were very low due to close economies.
5. The 2nd Civil War (1979-1991): Both lines were again frequently destructed but trains were
still operated on daily/or weekly basis after sectional repairs.
6. The Collapse of Cambodia Royal Railway (1991-2006): The interruption of continuing civil
wars with very poor maintenance of both tracks and trains led to transport services by rail
sharply drop and until 2006 all trains transport service were completely shutdown.
However, another reason of shutdown was the RGC stop providing subsidies.
7. The Restructuring of Cambodia Royal Railway (2006-2010): ADB started to finance the track
works reconstruction of both lines (18 Feb 2008), and The State run company of Cambodia
Royal Railway were dissolved on 1st Oct 2009 and all asset are conceded to an Australian
private corporation (Toll Royal Railway) under 30 years Concession Agreement for Freight
Service. Then the Cambodian Railways are revitalized (re-operated) in October 1st, 2010.
Also The Railway Department were established on Oct 1st 2009 to oversee the
Concessionaire and other railway development projects
projects.
8. Cambodia Railway Networks Master Plan has been developed in a comprehensive manner
for Short, Medium and Long Term Development for the next 25 years.
11. The Institution: Railway Department, under the Ministry of Public
Works and Transport
The Royal Government of Cambodia established Railway Department directly under
Ministry of Public Works and Transport by sub decreed No. 163 dated 01
October 2009.
The Railway Department and Concession Management Committee (CMC) are
the authorities who oversees the railway concession agreement, railway
reconstruction projects and become the f l point f other railway
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j
db
h focal i for h
il
developments in Cambodia.
Total Number of Staffs: 300 persons
Management Staffs
: 6 persons (1 Director & 5 Deputies)
Engineer & Other Professional Staffs
: 60 persons
Technicians
: 100 persons
Skill Workers/Clerks
: 140 persons
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Address Railway Department :
# 163 Russian Federation Blvd, Sangkat Srach Chak, Khan Daun Penh,Phnom
Chak,
Penh, C b di (Opposite of the C
P h Cambodia. (O
i f h Council Mi i
il Ministers)
)
Phone : +855 (011) 45 68 78
Fax : +855 (023) 42 61 40
E mail: tharath@gmail com
12. I- General Information
Organization Structure Chart of Railway Department
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DIRECTOR
Secretariat
Deputy Director
Concession Relations
Deputy Director
Development
Legal Office
Deputy Director
Policy & International
Cooperation
Deputy Director
Inspections
Deputy Director
Administration
Assets Office
New Lines Planning Office
Policy Office
Locomotives & Rolling Stock
Office
Human Resources Office
Concession Office
Urban Rail Planning Office
International Cooperation Office
Track & Infrastructure Office
Administration Office
Safety Office
Budget & Accounting Office
Procurement & Project Appraisal Office
Training Office
14. Course Presentation:
II.
II Costing and Pricing of Passenger Rail
Transport Service in Cambodian
“Passenger Focus Corporate Plan”
A seek to answer the Question
Still be in Private Vehicles & Bus Service?
or we need Train?
16. 2. Pricing
Pricing of Rail Passenger Service has to be based on the
willingness to pay of the passengers.
illi
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f th
The “Passenger Focus” Method is to be used for a
comparative benchmarking provided by the Rail
comparative benchmarking provided by the Rail
Passenger Survey (RPS) and the Bus Passenger
Survey (BPS)
Survey (BPS)
In order to succeed Passenger Focus needs a number of things to
be in place:
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• effective board leadership, governance and oversight
• the resources to carry out this work to the necessary standard
• capable, confident staff who want to work at Passenger Focus.
20. III. How to make Cambodian Railway
Systems profitable?
The Answer is
The Answer is
COMMERCIALIZE RAILWAY BUSINESS
FROM THE STATE RAILWAY OPERATION
O
S
O
O
TO A PRIVATE RAILWAY OPERATION
ON A COMMERCIAL BASE
UNDER THE FORM OF PPP
UNDER THE FORM OF PPP
(PUBLIC PRIVATE PARTMERSHIP)
22. Railway Restructuring
Toll Royal Railway
-
-
In September 2010 The Toll Group and The Royal Group formed a
2010,
joint venture (TRR) to be responsible for the operation and
maintenance of Cambodian Railway under Concession Agreement.
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TRR began train operations on the Section of the Southern line
from Phnom Penh to Touk Meas Station (Cement Factory) in the
length of 120 km on October 1, 2010.
ASSETS TRANSFER:
TRR has rehabilitated 10 French Alstom Locomotives, 2 Czech
locomotives, and 2 Chinese locomotives currently available to meet
operating requirements.
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23. Railway Restructuring
Toll Royal Railway
As wagons, TRR has now rehabilitated 12 ballast wagons, 25 high sided wagons
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and are in the process of rehabilitating 33 fuel container wagons and 140 flat top
container wagons adding significant freight capacity to the network. It’s also
including a numbers of passender coach for toursit operation.
All Stations and Depots (including railway lands) are Transferred and the
All Stations and Depots (including railway lands) are Transferred and the
concessionaire has to rehabilitated and developed by their own cost.
Concessionare has to maintained and developed all railway infrastructures with
by their own cost.
y
25. Services of Toll Royal Railway
y
y
Current services
Bulk Fuel
Bulk Fuel
• TRR currently operates a bulk fuel train for Sokimex every second day and transport 1,200,000
litres of fuel per train or 17,000,000 litres per month
Cement
• TRR currently operates a bagged cement train service for SCG Trading two times every week
moving 9,000 ton of cement per month
Coal
• TRR currently operates a bulk coal train for SCG Trading every second day and transport 800 ton
TRR currently operates a bulk coal train for SCG Trading every second day and transport 800 ton
of coal per train or 9,000 ton per month
Containers
•
TRR has commenced a twice weekly container service to and from Phnom Penh and
Sihanoukville
Warehousing
•
TRR has continued its warehousing of cement products and is now extending the warehousing
of cement to the Phnom Penh Dry Port and has commenced the warehousing of agricultural
product at the Phnom Penh Dry Port
27. Toll Royal Railway KPI s
Toll Royal Railway ‐ KPI’s
Toll Royal Railway has achieved the following over the past 4 years;
T ll R l R il
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• Zero loss time injuries
• Zero medical treated injuries
Zero medical treated injuries
• Zero absenteeism
• Fuel burn 40% saving on budget
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• Overtime less than 10%
• Uniform compliance 100%
• Positive drug tests 0
• Positive breath tests 1 (visitor non employee)
29. Toll Royal Railway
Toll Royal Railway – Achievements
Safety
risk assessments have been conducted on the entire TRR business activities
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th
ti TRR b i
ti iti
locomotives and wagons have been painted yellow to reduce risk profiles at level crossings.
Rollingstock is to American Railroad Association Standards
TRR has achieved and maintained zero employee injuries (LTI’s) for the past 46 months across
track works, warehouse, office and administration, workshop and train operations
all staff have been issued and comply with PPE, rail hi visibility safety compliant orange uniform
and wet weather equipment
all staff wear the Toll Royal Railway ID Card that includes their employee number and photo ID
all staff wear the Toll Royal Railway ID Card, that includes their employee number and photo ID
staff are subject to and participate in random breath tests for blood alcohol content and
participate in pre‐employment and show cause drug testing
TRR has designed and contracted the manufacture of vigilance control units and have fitted them
to all operational conceded locomotives, all equipment is fitted with GPS tracking
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all changes to work systems or work practices are preceded with a change management process,
risk assessment and are advised to the effected staff via a tool‐box talk
developed a Contractor Manual and contractor packs are implemented with contractors
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30. Toll Royal Railway
Toll Royal Railway – Achievements
Commercial,
introduced the Toll Royal Railway website www.tollroyalrailway.com developed road, rail and
warehousing cost models for current and proposed services
signed a contract with SCT (Cement Company) and commenced warehousing and PUD (VAS
services up to 3,000T/week), significant new business in Rice exports, Garment exports, Coal
imports, Fuel imports, Cassava exports, Corn exports
developed a customer list and used this as the basis for developing the TRR 5 year business,
capex and financial model
completed a preferred supplier list using local and international suppliers
completed a preferred supplier list using local and international suppliers
commenced the licensing of a number of conceded buildings, warehouses, offices
finalised Trading Terms and Conditions with Toll’s Corporate Legal Department
developed a commercial format for providing customer contracts and proposals
implemented the Toll formats for customer credit checks and legal, insurance and corporate
governance and is working to implement these processes
commenced conducting post capex audits in order to ensure the costs, desired benefits and
commercial matters have been achieved for the authorised expenditure
commercial matters have been achieved for the authorised expenditure
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31. Toll Royal Railway
Toll Royal Railway – Achievements
Corporate Governance
5 year business plan has been prepared with The Royal Group and Toll
all business transactions are conducted in accordance with the Australian Corporations Act and
Trade Practices Act and in the concept of total transparency
all staff are paid using electronic banking via ANZ Royal Bank
all invoicing and all payments are made via ANZ Royal Bank
all invoicing and all payments are made via ANZ Royal Bank
all condition precedent requirements have been complied with
CDC tax exemption has been completed and approved, this was renewed on the 30th June 2012
with a six month extension
designed, published and launched the TRR Web Site (including links to the JV partner
businesses)
all staff undergo pre‐employment medical and drug tests
annual and periodic TAX audit by KPMG
annual and periodic TAX audit by KPMG
all staff trained in Fire Fighting and First Aid
all training is competency based to International standards
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32. Toll Royal Railway
Toll Royal Railway – Achievements
Operations, we have;
worked with all stakeholders and delivered the first train operations on time on the 01st
October 2010 using Phase 1 track
designed and developed a new safe working in 2013 the safety management and safe working
system is based on the Australian National Code of Practice
introduced electronic satellite tracking of all of its owned locomotives, rail mounted track
equipment and trolleys.
refurbished the train control center for monitoring the performance of all rail movements on
the track on the southern corridor and trained its train controllers in safe‐working and track side
the track on the southern corridor and trained its train controllers in safe‐working and track side
protection
corporate and HR policies that have been written and posted in all worksites in English and
Khmer
designed, developed and written a new fully compliant Safety Management System in
accordance with international best practice
restored 12 locomotives and 160 wagons, 1 x 25t crane, 1 x 70t crane, 1 x rail mounted
excavator, I rail mounted P&H crane and numerous rail trolleys and 7 dresines (yellow 12
person rail trolleys)
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33. Toll Royal Railway
Toll Royal Railway – Achievements
Operations – cont, we have;
ensured that locomotive and wagon workshop have been made operational, workshop staff
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have been trained, equipment has been restored, electronic engines have been rewound,
mechanical engines have been repaired, overhead cranes have been restored
repaired and or rehabilitated a number of conceded buildings including refurbishment of the
historic Phnom Penh railway station
patrolling f the 6.5km from Phnom Penh to the Green Trade Warehouse, refurbished the Pursat
and Battambong stations and maintained the 9.6 km of track Phnom Penh to Samrong junction
restored all of the permanent way and track machinery and equipment
restored all of the permanent way and track machinery and equipment
commenced the warehouse inventory sorting and cataloguing and will implement Tolls
warehouse inventory system in due course
constructed new railway lines along the wagon workshop and into the Cement Warehouse, the
conceded asset register will be amended to reflect the new warehouse and the demolition of
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the former kings coach warehouse
refurbished the former CWT Dry Port and the associated warehousing and offices and the
terminal hardstand, the reach stacker and empty container handler and warehouses
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57. Toll Royal Railway
Toll Royal Railway – Achievements
ISO 9001, 2008
TRR bt i d ISO 9001 2008
TRR obtained ISO 9001, 2008 accreditation in October 2010 and have registered for ISO 9001,
dit ti i O t b 2010 d h
i t d f ISO 9001
2010
TRR have undergone four full ISO 9001, 2008 compliance audit and no non–compliances or non‐
conformances were identified
TRR prepared all documentation, human resource filing, medicals and training now comply with
ISO 9001, TRR’s entire SMS is being aligned to ISO principals including contractor management
and procurement
TRR developed a safety interface agreement with the Railway Department that has been
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amended to comply with ISO standards and converted to Khmer and will be resubmitted to the
Minister for approval
An International Railway Training Organisation is training TRR and Railway Department
employees in International Railway Safe Working Standards
employees in International Railway Safe Working Standards
ISO 9001, 2008 training for TRR and Railway Department staff in December 2012
Full ISO 9001, 2010 audit planned for September 2013
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58. Toll Royal Railway
Toll Royal Railway – Achievements
Training
all staff have been trained in HIV/AIDS awareness
all staff have been trained in personal budgeting and personal financing
all staff have been trained in Fire Fighting. Fire extinguishers are provided in all
vehicles, workshops and offices/administration buildings
selected staff (50% of employees) have been trained in First Aid training. First aid kits
are provided in all vehicles, workshops and offices/administration building
all staff are being trained and competency assessed to International training and
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assessment standards based on the Australian TQF standards
Selected staff are being trained as ISO 9001 auditors
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