Transportation Infrastructure: United Kingdom A Strategic Overview of Trends and Investment Top-Level Analysis for I3 Business Forum Webinar By Shyam Raman, Senior Research Analyst & Team Leader2 Contents Section Slide Numbers UK Transport Market Overview 3 Smart is the New Green 12 Appendix 173 UK Transport Market Overview4 United Kingdom: National Infrastructure Plan Overview Waste, £1.1, 0.3% Science & Research, £1.4, 0.3% Flood, £3.5, 0.9% Communications, £7.0, 1.7% Water, £25.7, 6.2% Transport, £127.4, 31.0% Energy, £244.9, 59.6% Transport Market: Projects in National Infrastructure Plan by Sector, United Kingdom, 2015-2021 : Source: Frost & Sullivan5 Investment In High Speed Rail 2 Dwarfs Projects In Other Sub Sectors 0.2 0.2 0.7 4.0 5.7 6.0 9.8 13.5 14.5 23.2 49.7 9 9 14 1 1 21 72 83 39 51 2 0 10 20 30 40 50 60 70 80 90 - 10.0 20.0 30.0 40.0 50.0 60.0 Number of Projects Total Funding in Billion GBP Total Funding in Billion GBP Number of Projects Maximum number of projects opportunities available in roads – Local authority roads outnumber highways Transport Market: Investment Plan - Transport Infrastructure Projects, United Kingdom, 2015-2021 : Source: Frost & Sullivan6 Long Term Spending Plans on Transportation Infrastructure 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 2015 2016 2017 2018 2019 2020 Available Budget in Million GBP High Speed 2 Highways Agency Network Rail London Transport Investment Local Authority Major Projects Local Authority Maintenance Integrated Transport Block Over 65% of all investment is directed towards road and rail transport projects Transport Market: Investment Plan - Transport Infrastructure Projects, United Kingdom, 2015-2021 : Source: Frost & Sullivan7 Number of Transport Projects By Phase: Over 101 projects are in planning and scoping phase, A total of 302 transport project opportunities have been identified Transport Sector Active Programme Consents approved In construction Planning & Consents Scoping Total Airports 3 - 5 1 2 11 Crossrail - - 1 - - 1 High Speed Rail - - 1 1 2 LA Majors 34 3 11 6 11 65 London 6 1 14 1 14 36 Ports 1 3 4 - 3 11 Rail 1 1 7 1 12 22 Roads – HE Majors 1 - 18 30 18 66 Total 45 8 60 40 61 214 : Source: Frost & Sullivan Transport Market: List of Major Transport Infrastructure Projects, United Kingdom, 2015-20218 United Kingdom’s Investment in Road Networks: Reforming the road network through capacity addition and enhancement is seen as the only solution to meet growing traffic demand as aging infrastructure reliability decreases Transport Market: Planned Investment in Road Infrastructure, United Kingdom, 2015-2021 : Source: Frost & Sullivan 2015 Investment Goals 2021 Investment of: • £10 billion for repairs • £28 billion for enhancement of national and local roads Add extra lanes • addition of 221 lane miles Construct ALL Highway agency projects • includes A14 from Cambridge to Huntingdon and • M4 From London to Reading Convert Highways agency to a public-owned corporation • To increase flexibility and sustainability Underinvested: • UK ranks 24th in road qualities • Relies heavily on assets created in the 1960s and 1970s9 UK: Network Rail Enters Control Period 5 (CP5) 2014–2019 CP5 focuses on greater connectivity in London, electrification of mainlines and upgrade of signalling and stations, costing over €12.1 billion Key targets: • To increase available seats on peak commuter services in London and South East by 20.0 per cent • Scotland to receive capacity upgrade by means of new lines • Northern cities to have greater connectivity by increasing 700 train services a day • To increase electrification and upgrade to modern signalling. 1,817 1,654 636 299 281 264 187 180 179 177 0 400 800 1,200 1,600 2,000 Thameslink Crossrail Great Western Electrification Intercity Express Programme Edinburgh Glasgow Infrastructure West Coast power supply upgrade Reading Station redevelopment North West Electrification Edinburgh Glasgow Electrification Stafford area improvement 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 CP4 CP5 Investment (€ Million) England and Wales Scotland Rail investments increased by 30.8% Note: All figures are rounded. The base year is 2014. Source: Frost & Sullivan Rail Market: Total Expected Investment in Control Period 5, United Kingdom, 2014–2019 Rail Market: Breakdown of Expected Investment in Control Period 5, United Kingdom, 2014–201910 10 Source: Frost & Sullivan analysis. In Future, HS Rail will not only Connect Cities and Countries but will also Connect Continents • Globally over €581.60 billion cumulative spending by 2022 • Projects in Turkey, Japan and China are underway and are expected to be complete by 2020 • China : 25,000 kms by 2025 (7,431 kms in 2010) • Biggest NA Project: $68 billion California HSR • UK project HS2: £33 billion (by 2026) What are the Opportunities? • Copper-silver and copper-magnesium wires • Steel Companies • Construction tooling, spare parts • Condition monitoring, security, surveillance, • Data handling, Passenger information systems • High Speed Logistics • Mergers and Acquisitions • Innovations in construction and engineering11 United Kingdom’s High-Speed Rail on Four Main Corridors Three mainlines and one dedicated route running centrally connecting cities nationwide, providing service at speeds of over 200 km/h HS2 Phase 1 HS2 Phase 2 Proposed Future Phases HS1 Dedicated High Speed East Coast Mainline – ETCS level 2 by 2022 West Coast Mainline – ETCS level 2 by 2027 Mainline Great Western Mainline – ETCS level 2 by 2018 London Peterborough York Newcastle Birmingham Manchester Liverpool Sheffield Leeds Edinburgh Glasgow Reading Bristol Cardiff Swansea Penzance Rail Market: Planned High-Speed Rail Lines, United Kingdom, 2013–2027 Source: Frost & Sullivan12 Smart is the New Green13 Future is Integrated Mobility To truly deliver a Smart City and Intelligent Mobility, we need to align the roadmaps of Connected Cars, infrastructure, and realise the potential of Integrated Mobility ADAS Analytics Cars • Telematics • Apps • Infotainment • eCommerce Services • Safety / warranty Infrastructure • V2V / V2X • Integrated City Planning • Automated Driving Integrated Mobility • Door to Door • Multi Modal • Shared Vehicles • On-Demand • Pre, In, Post Trip14 OEMs Leasing Companies Travel Management Companies Software Platform Providers Fleet Management Providers Public Transport Operators Integrated Solution Providers Car Rental Companies Mobility Integrators Type Example Taxi Services Uber, Hailo, mytaxi Bike Sharing Nextbike, velib, bicing Micro-mobility Renault, smart Car Sharing Zipcar, car2go,Drivenow Corporate Car-Sharing AlphaCity, ubeeqo Car Rental Hertz, avis, budget Ridesharing BlablaCar, lyft Parking Vinci park, justpark E-mobility Source,ChargeNow Public Transport DB, oyster, NS Integrated Mobility Moovel, Qixxit Ecosystem Partnership Concur, Uber Mobility Landscape – Many Players, New Partnerships, New Models In both B2C and B2B environments customers are demanding intuitive services; many actors investing significantly in order to deliver the ‘killer’ seamless proposition & user experience.15 Conclusion : Is the Future of Mobility in UK, James Bond.................?16 ...............................or Jason Bourne – who uses Multi Modal transport!!17 Appendix18 Frost & Sullivan: Who We Are A Leading Growth Consulting & Research Firm with 40+ Offices in 30 Countries and 1,800+ employees 40 Offices Around the World 10,000+ Clients Worldwide 50 years of Experience 3-tiered Growth System Growth Team Methodology Market Engineering Research Methodology Growth consulting, best practice training, market and technology research to help clients grow their businesses through exclusive proprietary methodologies.19 Our Industry Coverage 10 Industry Verticals Cover Over 10,000 Markets Globally and Annually Aerospace and Defense Infrastructure Information and Communication Technologies Environment and Building Healthcare Technologies Energy and Power Systems Chemicals, Materials and Food Electronics and Security Industrial Automation and Process Control Automotive Transportation and Logistics Consumer Technologies Minerals and Mining20 Summary of Frost & Sullivan’s Rail Research Program Comprehensive Strategic, and Actionable Research and Analysis Covering All Growth Opportunities in the Rail Industry Voice of Consumer Global RailMarket NA, EU, Asia, South America 2020 Vision of Rail Industry Global Rolling Stock and Infrastructure Market Global Platforms and Sourcing Strategies Next 11 and African Markets Growth Opportunities in a Flat World Emission- EPA, Euro, Global Harmonization Safety- ABS, Truck legislation that impact rail, Advanced Safety Incentives and Credits Fuel Tax Hours of Service Global Regulatory Environment Developments in railway infrastructure, Signalling including interlocking systems, wayside equipment, train detection, train control systems, RM&D, Electrification networks including overhead catenary systems and power supply, Station Railway Infrastructure Database and forecast for rolling stock, new lines, extensions, and refurbishments for: • High Speed Rail • Mainlines/Inter-City • Light Rail • Underground/Metro • Monorail and PRT • Freight Database Global De-urbanization Trends PESTLE ANALYSIS Development of Mega Cities Effects on mobility Inter-modal Freight Movement Development of Public Transport Systems Urbanization Trends Coaches, Multiple units, Metros & light rail vehicles, Locomotives , Electric trains , Freight wagons. Includes chassis and powertrain Improving efficiency of Rolling Stock Rolling Stock Services to support smooth flow of passengers & freight: • Fare Calculation & Ticketing • Travel Planning Systems • Communication and Management of delays / engineering works Payload Management Safety and Telematics Services Services to support efficient railway operations including: • Vehicle maintenance • Vehicle refurbishment and overhaul • Component refurbishment • Material solutions (such as logistics services) Legislations North American and EU Markets for Rail Safety and Telematics Technologies, Market and Technology Analysis and Forecasts, Technology and Market Trends, Growth Opportunities, Market Growth Enablers, Revenue Opportunities, Advanced Technologies and Applications Rail operators and Fleet Managers Desirability and Willingness to Pay for Advanced Technologies- Powertrain, Safety, Telematics, Regulation Compliance Technologies, Concept Product Demand Estimation, Purchase Intentions, Recommendations End user passenger surveys21 Research Subscription Clients Consulting Clients Note: The above companies are few our subscription and consulting clients A Wide Variety of Customers Access our Research and Avail our Consulting Services in the Rail Domain22 Key Contacts Darren Hanfrey Associate, Paris, Business & Financial Services Direct: +33 (0)1 42 81 23 12 Fax: +33 (0)1 42 81 54 52 Email: [email protected] Shyam Raman Senior Research Analyst & Team Leader Direct: 416.495.2686 Fax: 416.490.1533 Email: [email protected]