Presentation from the Doing Business with the Eurasian Economic Union Conference focuses on global and EEU trends.

1. Increased Investment & Efficiency in the Rail Sector
Doing Business with the
Eurasian Economic Union (EEU) Conference
December 2015

2. Contents
• Global Trends
• EEU Trends
• Claret Services
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3. Global Trends

4. OECD & European Trends
• Share of rail investment in total inland transport
infrastructure investment increased from 17% to
26% for the OECD total from 1995 to 2013
• In Western Europe, the share of rail investment has
increased steadily from around 20% in 1975 to 30%
in 1995 and further to 40% in 2013
• The trend of favoring road investment in Central &
Eastern Europe reversed in 2011 and the share of
rail investment is now increasing
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5. Emerging Market Trends
• China has invested an average of $100 billion in rail
infrastructure since 2009
• India recently announced a rail investment program
of $137 billion
• Iran is planning a $25 billion rail network upgrade
• South Africa's Transnet is in the midst of a $34
billion investment program
• Tanzania announced a $14 billion rail investment
program
• Etc, etc, etc
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6. Rationale for Increased Rail
Investment
• Environmental benefits compared to other forms of
transport
• Freight rail offers cost & time advantages to road
and sea travel (China-Finland 10 days on Transib vs.
28 days by sea)
• Passenger rail offers cost & time advantages to air
and car travel in certain regions
• Transit offers congestion relief & supports
urbanization trends
• The train is the original “driverless car”
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7. Rail Investments to Prevent
Obesity
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Obesity Rates Car Commuter Rates

8. EEU Trends

9. EEU Trends
• Container traffic on the Trans-Siberian Railway
increased 700% during 2009-2014 to 131,000 TEUs
• Traffic volume to China increased 89% to 66,000
TEUs in the first 9 months of 2015
• Major investment programs underway in Russia,
Kazakhstan
• Recent reductions in traffic present short-term
challenges but unlikely to reverse long-term trends
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10. Russian Railways Key Indicators
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0
500
1000
1500
2000
2500
3000
2008 2009 2010 2011 2012 2013
Freight turnover, billion tones-kilometers Passenger turnover, billion passenger-kilometers
Revenues from main activity

11. Moscow-Kazan High Speed Rail
• Russia-China joint $15 billion project
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12. EEU Trends
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13. Innovative Revenues
• Rail investment unlocks the potential for major real
estate & industrial investments
• Additional passenger services
• Redevelopment of historic rail stations
• Urban Development: commuter & commercial
centers
• Transformation of suburbs to small cities
• Development of Special Economic Zones, industrial
parks (Khorgos, Aktau)
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14. Range of Financing Sources
• Public budgets
• Traditional revenue sources
• National Development Banks/Funds
• Sovereign Wealth Funds
• Multilateral Development Banks
• Export Credit Agencies
• Commercial Banks
• Lease Financing
• Private Equity
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15. Energy Efficient Rail
• Reduce costs, improve service, limit impact
• New Procurement Approach: Lifecycle Costing
• CO2 Reduction Targets
• Traction/Non-traction, Propulsion (80%) & Facilities
(20%)
• Fuel sources
• Regenerative braking
• LED lighting
• Improved traffic & local management
• Total Energy Management
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16. Energy Efficiency Technologies
• Automatic Engine Stop Start (AESS) systems
• On-board metering of diesel locomotive fuel
consumption
• Trip Logistics and Optimization Software
• Smart lighting systems
• Locomotive Idle Reduction Technologies
• Distributed Power Management & Control Software
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17. Suppliers
• Bombardier
• Alstom
• Siemens
• General Electric
• China Railway Rolling Stock Corporation
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18. Claret Services

19. Claret Rail Services
• Restructuring
• Reorganization
• Commercialization
• PPP
• Privatization
• Energy Efficiency
• Sustainability
• Financial Advisory
• Financial Modeling
• Procurement
Management
• Market Testing
• Feasibility Analysis
• Policy Advice
• Program Development
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20. Sub-Sectors
• High Speed Rail
• Freight rail
• Intercity rail
• Commuter rail
• Heavy rail
• Light rail
• Maglev
• Logistics
• Supply chain
• Special Economic Zones
• Multimodal
• Real Estate
• Transit Oriented
Development
• Station Management
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21. Country Experience
Europe
• Argentina
• USA
Africa
• Ghana
• Kenya
• Tanzania
• Uganda
Middle East
• Kazakhstan
• Moldova
• Poland
• Romania
• Russia
• UK
• China
• India
• Mongolia
• Philippines
Asia
• Egypt
• Saudi
Arabia
Americas
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22. Contact
Brien Desilets
Managing Director
bdesilets@claretconsult.com
www.claretconsult.com
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