Concepts and solutions that make transport more efficient are in demand with the ever-increasing need for mobility. The European railway industry suppliers are constantly developing new and intelligent mobility concepts and solutions that increase the capacity of rail infrastructure and continuously optimise and improve the travel experience for rail passengers, whether it’s about the comfort of most modern railcars or the easiness of accessing information through modern and effective digital solutions.
Elena Ilie is talking with… Jochen Eickholt, CEO Siemens Mobility Division
Also, as the number of people moving towards and within the cities increases, several challenges emerge regarding the urban transport system, which unfortunately, does not often meet proper demands for efficient mobility, capacity or safety.
More and more people and freight need to be transported. To enable them to reach their destinations reliably, safely and with minimal impact on the environment, it is important to have an intelligent network linking the various transport systems, especially in transport hubs, and Siemens has developed solutions for these challenges.
Siemens took the needs of urban and heavy rail transport into consideration and came up with a vision and with solutions for a better mobility. As a single-source supplier and system integrator, Siemens combines all the expertise necessary for sustainable solutions in all areas of rail transport.
Siemens takes a balanced, comprehensive approach to rail-based mobility – from trams, light rail and metro services to commuter rail lines all the way to regional services and high speed rail transport. Reliability, safety, attractiveness and efficiency are the Group’s top priorities – a benefit to the passengers, operators and the environment.
The world we live in is increasingly being digitalized and the trend of digitalization is also transforming the rail transport system. New customer needs and new technologies will substantially change our world and definitely the world of mobility over the next ten to twenty years.
The constant challenges for the railway industry suppliers, the solutions the industry advances for a better and competing railway system, the oportunities for an efficient mobility, market trends as well as other interesting topics are comprised in an interview with Mr Jochen Eickholt, CEO of Siemens Mobility and, recently appointed, Chairman of the Association of the European Rail Industry (UNIFE), who kindly answered our questions.
The world is changing, there are trends in several areas and one of these is demographic change. How can Siemens Mobility meet the passengers’ increasing demands for more comfortable and faster train journeys?
Jochen Eickholt: It’s imperative that we satisfy this growing demand, and I think we’re in an excellent position to do just that. By the year 2030, roughly three-quarters of Europe’s population will live in ever-larger metropolitan areas. At the same time, megacities are growing rapidly in number and size throughout the world. We are indeed facing a profound change and challenge here. And when it comes to transporting people and goods in these metropolitan areas, there are only two alternatives: Either the cities sink into traffic chaos and stifle the enormous growth opportunities they offer. Or we succeed in optimally developing and networking public mass transit and regional rail systems that ideally operate with electricity and help protect the environment. Along with rail systems, these transport modes also include electric buses. I believe we all clearly support the second alternative.
And the trend is in fact moving in this direction. In the United States, for instance, the advantages of mass transit and mainline transport by rail have recently been rediscovered and rail investments are flourishing. And in many other countries new high-speed rail lines are being built and rail fleets from the 1960s and 1970s are being replaced by new rolling stock. As a result of these developments, there are growth opportunities for rail worldwide. In addition, the liberalization of the European rail systems in 1994 also created many new markets.
Also, globalization and excessive urbanization are two of the big aspects and real challenges of our century. How does the rolling stock manufacturing industry envisage reducing distances between the large urban agglomerations, keeping in mind the fierce competition of air transport?
Jochen Eickholt: With our Velaro family of high-speed trains, we’re right on the heels of air transport. With its speed of 350 km/h and more, the Velaro is one of the fastest operating high-speed trains in the world. Whether offering a premium-class experience with extraordinary comfort for business travelers or serving as a highly efficient transport system for large passenger volumes: A trip with the Velaro can easily compete with a plane flight. Spain’s Velaro E, for instance, has been transporting passengers rapidly and reliably between Madrid and Barcelona for years. The Velaro E covers the 625 kilometers in less than 2.5 hours, which is only about one hour more than the actual flying time. Ten years ago, around 80 percent of the travelers on this route flew and only 20 percent took the train. Today the numbers have reversed: 80 percent take the train and only 20 percent fly.
Digitalization, technological changes, all these play an increasingly important role in our day-to-day life. What solutions does Siemens Mobility propose to facilitate rail innovation to make railways more competitive (compared to other transport modes), as well as more eco-friendly?
Jochen Eickholt: We have a great number and variety of solutions, and I think you’d have to look hard to find a company in our market that’s doing digitalization as well as we do it. Basically, we are using our digital solutions to optimize three key factors in rail transport: passenger comfort, throughput and availability.
We optimize availability, for instance, with our predictive maintenance that uses sophisticated algorithms to analyze a constant real-time flow of train data. We currently perform this primarily at our Mobility Data Services Center in Munich-Allach, Germany. Using the data, we can spot potential problems in rolling stock and rail infrastructure far faster and more precisely than ever before, make valid predictions and take the necessary action. This eliminates unnecessary, rigidly scheduled maintenance stops in depots, makes standardized inspection schedules superfluous, reduces failures and downtimes during operations to a minimum, and ensures nearly 100-percent rolling stock availability.
We can increase throughput with our driverless trains. In metro systems, fully automated operation has been state-of-the-art for a number of years. The advantages are obvious: On an automated line, trains can operate at shorter intervals, increasing the capacity of a metro line by up to 50 percent. Short intervals of 80 to 90 seconds can be achieved. During peak hours with heavy passenger volumes, supplementary trains can be added along with the regularly scheduled trains and these additional trains can be automatically dispatched from the depot with the simple push of a button. Moreover, automated trains use less energy because their acceleration, running and braking is optimized. Depending on the degree of train automation, energy consumption can be reduced by up to 30 percent. At the same time, automation increases the punctuality of the trains. On the basis of route data, the automated system calculates exactly when and where a train should accelerate or brake in order to reach the next station exactly on time. The Paris Metro is one example of such an optimized system.
And third, we provide excellent passenger comfort and convenience. Monitors have long been used for displaying passenger information, but they can in fact do more: They can show connections in real-time or, accessed by the customer’s smart phone, provide selected information and entertainment. WLAN systems offering Internet access with various digital mobile networks will also be the standard in mass transit in just a few years. Security cameras monitored online increase the security of passengers and train staff alike. Finally, automated ticketing systems that accurately record which trams, trains and buses the rider has used, make the use of public transport systems much simpler and more convenient. And last but not least, with the acquisition of HaCon, we are entering – and adding to our current portfolio – a completely new business field centered on timetable planning and trip planning for travelers.
What can you tell us about Siemens Mobility’s solutions for optimizing rail infrastructure and the rolling stock fleet?
Jochen Eickholt: We are very well set up here, also in comparison with our competitors. We offer a truly comprehensive spectrum of products, systems and services, including, for example, professional maintenance, provision of spare parts, refurbishment, repairs of damages, as well as the testing and validation of rail systems. These days, fewer and fewer customers order rolling stock and then take over the maintenance and modernization, as was customary in the past. A growing number of our customers now prefer to leave all maintenance and services to us. And the reason why is clear: To operate economically, rail transport companies must ensure their rolling stock is optimally available – and over many decades. Even in regional transport, where operators can often change over the lifecycle of a vehicle, the vehicle must meet defined quality standards the entire time and be fundamentally modernized after 15 or 20 years.
For years now, Siemens offers a complete package that exactly fulfills these requirements. The package includes the vehicles themselves as well as their maintenance over their entire lifecycle – all from one source. One example here: the 82 multiple-unit trains ordered for the Rhine-Ruhr Express in Germany’s Rhine-Ruhr region. Siemens will maintain the trains for a period of 32 years at our new maintenance depot in Dortmund-Eving.
One great advantage of our maintenance system: Using our highly innovative digital technologies, we can detect a possible fault before it actually occurs and then fix it without risking downtimes. One outstanding example of the resulting reliability and availability is the Spanish variant of the ICE 3, the Velaro E that I mentioned before. The train operates between Madrid and Barcelona with an availability of 99.9 percent. In over 2,500 trips, the Velaro E missed its scheduled service just once.
Transport decarbonization is a hot topic on the agenda of both state authorities and that of the rail industry, and the Paris Agreement is the most eloquent example. How can Siemens Mobility contribute to achieving a modal shift (from road to railways), but also facilitate energy efficiency?
Jochen Eickholt: Shifting freight transport to rail is a great idea, but it also has its limitations. The international freight transport volume is growing continuously, and the World Business Council for Sustainable Development (WBCSD) predicts a trebling of global freight transport volumes between the years 2000 and 2050. Despite the considerable expansion of rail infrastructure expected in coming years, railroads will only be able to handle around a third of this additional freight traffic. Consequently, a considerable share of the transport will need to be provided by trucks that combine reliable service with minimal environmental impact.
For this reason we developed the Siemens eHighway. Our eHighway system is twice as efficient overall as conventional internal combustion engines. This Siemens innovation supplies trucks with power from an overhead contact line. This not only cuts total energy consumption by half but also significantly reduces local air pollution. From environmental and economic perspectives, the eHighway is particularly effective for heavily used truck routes, such as between ports or industrial parks and cargo hubs, or between mines and central transshipment terminals.
The first eHighway test section on a public highway has been operating in Sweden since 2016. We will be testing the technology for the coming two years on a two-kilometer section of the E16 autobahn north of Stockholm. Our goal is to reduce the system’s complexity, costs and weight and further increase its reliability. When these parameters have been met, we are very optimistic about a more widespread use of the system.
Can you share with us your vision regarding the evolution of the rail transport market in Central and Eastern Europe, for the years to come, compared to that in Western Europe, as the latter is way ahead with the implementation of rail high-speed projects?
Jochen Eickholt: Seen as a whole, Europe is the world’s biggest mobility market – with a sustained high level of investments in all market segments and regions. And that applies not only to the United Kingdom, France and Spain. Backed by our know-how, experience and extensive portfolio, we are working on developing other important core markets. The increasing digitalization of the transport market offers additional potential here for us. As a trailblazer in the digitalization market, we draw on our competence and experience to optimize three aspects of mobility that are important for operators and passengers alike: namely availability, throughput and passenger comfort.
How do you see the potential of the Asian rail market considering that countries such as Singapore, Malaysia or India have announced their intention to create rail high-speed transport networks?
Jochen Eickholt: We are closely following developments in Asia and at the same time are optimistic. For the short term, we see moderate growth as a result of ongoing headwinds. Over the longer term, however, we expect positive growth effects – particularly from the expanding development of the regional rail network in China and investments in mass transit and infrastructure. In India, we expect to see sustained high investments in new and modernized rail routes as well as in new rolling stock for passenger and freight transport. As an experienced worldwide provider of sustainable transport solutions, Siemens is the best partner for efficiently executing these complex rail projects. We employ our future-oriented technologies and ensure long-term availability with our innovative maintenance concepts.
Moscow-Kazan high-speed railway is a very ambitious and challenging project for the rail industry. What are Siemens Mobility’s advantages against the similar offer submitted by other companies for rolling stock supply?
Jochen Eickholt: We are actively taking part in developing high-speed projects in various countries – not only Europe, but also in such countries like China and Russia. Siemens has a long-term business relationship with Russian Railways RZD and clearly understands the particular requirements of the client.
Our technologies and solutions are localized in Russia. Siemens’ plant in Yekaterinburg is ready to produce trains for high-speed service in Russia. The highly successful operation of Siemens’ Velaro trains on the high-speed line between Moscow and St. Petersburg is an important factor in favor of extending our cooperation in the country.
Experience has shown us that a complex approach is required for developing high-speed rail lines. The development includes the construction of special infrastructure, the delivery of high-speed trains and the implementation of the most advanced technical solutions and technologies. And Siemens is the one-source specialist in all these areas: We not only deliver the rolling stock, but all relevant infrastructure elements – from overhead contact lines, train operating systems and safety control systems to signalling systems.
Working together with other members of the German initiative for High Speed Rail in Russia like Deutsche Bahn and Strabag, we would like to apply our innovative know-how based on localization and lifecycle service to advance the efficient development of high-speed lines in Russia for Russia.
The Chinese competition is very serious for the European rail industry, one cannot overlook that. The international press has talked about the possibility to initiate discussions between Siemens and Bombardier Transportation in view of a potential merger of the two companies’ rail operations in order to face the competition of the Chinese rolling stock market. Can you detail for us Siemens’ point of view on the topic, is this just rumors or is there some truth in it and, if so, what is the plan towards which Siemens Mobility is heading?
Jochen Eickholt: Siemens has been in business for nearly 170 years and is at home around the globe. So competition is really a daily matter and a constant challenge for us. Chinese rail providers are already operating in the international markets. New competitors in the European market would intensify competition, of course, insofar as they can overcome the high hurdles of our certification procedures and the differences in mentalities. But also following the merger of CSR and CNR, we still see good perspectives in the international market for our locomotives. As far as the Asian competitors are concerned: As long as one doesn’t work with state subsidies – either open or covertly – we must be in a position to prevail in every type of competition. And I think we are well set up and positioned to do so.
Regarding the second part of your question, please understand that we fundamentally do not comment on speculations, market rumors or supposed M&A activities.
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