People Technologies Markets - Balfour Beatty Rail

issue 4, autumn 2009 

People Technologies Markets 

A chAnged world 

ImprovIng operatIons In the 

new economIc clImate 

eAstern promise 

Balfour Beatty raIl 

makes headway In asIa 

d own the line 

what lIes ahead for 

europe’s raIl Industry?

These are challenging times for any 

industry, but those in the rail infra structure 

business face the future with a clear set of 

priorities. This issue of connect explores 

what that future may look like – for 

suppliers, customers and passengers. 

Now more than ever, there is a need 

for companies like ours to work more 

closely with customers to deliver value 

across the life of projects – something 

we explore in our feature on efficiency 

and client relationships (p4) in the UK, 

Germany and Sweden. 

On page 18, we find out how technology, 

in the shape of remote condition monitoring, 

has the potential to revolutionise track 

maintenance. 

We also reveal how clients are helping us 

achieve our target of reaching Zero Harm 

by 2012 (p14). 

The future is also the focus of UNIFE 

and Boston Consulting Group’s engaging 

study on the European rail industry. As 

you’ll read on page 16, the landscape could 

look very different for all the major players 

come 2025. 

The urban transport challenges discussed 

in the study have a resonance for two 

important, but very different, markets 

featured in this issue. On page 20, we 

discover how Germany is tackling the 

problem of an overcrowded network while 

pressing ahead with high-speed development, 

while on page 8, we explore how Balfour 

Beatty Rail is rising to the task of shaping 

the future of rail in south-east Asia. 

In Malaysia, work on the power and 

electrification of the Ipoh-Padang Besar 

section of the North-South line continues 

apace. As our exclusive interview with the 

Minister of Malaysian Railways (p10) 

reveals, the country has ambitious plans to 

editoriAl | 3 

attract more commuters away from the road, 

especially to its intercity services. And in 

Singapore, Gammon Construction is playing 

a growing part in realising the masterplan of 

the Singapore Land Transport Authority. 

In Panorama (p22-23), you’ll find the 

latest news and analysis, including details of 

Balfour Beatty’s proposed acquisition of 

Parsons Brinckerhoff. 

Finally, thank you to those who took time 

to complete the questionnaire in the last 

issue. Your feedback is invaluable as we 

continue to improve connect. If you have 

comments or suggestions on the magazine, 

or would like to receive regular updates 

from Balfour Beatty Rail, please email 

connect@bbrail.com. 

Manfred Leger 

Group Managing Director Balfour Beatty 

connect «

8 | mArkets 

For almost half a century, plans have been 

in the pipeline for creating an 89,900km rail 

network across Asia, linking 28 countries 

and enabling passengers to step on a train in 

Singapore and step off in Shanghai or travel 

from Seoul to Samarkand, Uzbekistan. The 

Trans-Asian Railway Network, originally 

launched by the United Nations Economic 

and Social Commission for Asia and the 

Pacific, has been plagued by setbacks over 

the decades. Everything from political and 

economic strife to differences in national 

track gauges has stood in the way of its 

progress. But now, as an intergovernmental 

agreement signed in 2006 comes into force, 

the pace looks set to pick up. 

Impressive scale 

If it does, one country whose commitment 

will be required is Malaysia where Balfour 

Beatty Rail has had a presence for more than 

a decade. “A lot of the countries involved 

are struggling to build the infrastructure in 

their section, but Malaysia is making great 

inroads into achieving just that,” says John 

Kirton, Managing Director of Balfour 

Beatty Rail Malaysia. 

›› connect autumn 2009 

Part of the preparation involves 

substantial work on the main North-South 

line from Thailand to Singapore. Balfour 

Beatty Rail has already had a significant role 

in this, having successfully completed an 

electrification project for the Rawang-Ipoh 

section of the route. 

Today, it is working on a scheme to 

double track and electrify more than 700km 

of the existing single track line. The project 

is a joint venture with Ansaldo STS on 

behalf of the main contractor MMC- 

Gamuda, and the scale is impressive. 

“It is one of the largest single projects that 

the Malaysian Government has undertaken,” 

says John Kirton. “It stretches over four 

northern states of West Malaysia, and 

includes 30 stations and yards, two depots, 

107 bridges and 100 river bridges.” 

Also ongoing is a 15km extension to the 

existing Klang Valley commuter network, 

due for completion in early 2010. When 

completed, the network will serve a densely 

populated area that is also popular with 

Gaining traction 

Rail infrastructure is a huge 

growth area in Asia, where Balfour 

Beatty Rail is putting down roots in 

two neighbouring countries with 

very different travel requirements. 

By Alex Elliott 

tourists during Thaipusam celebrations 

for the local Indian community. 

singapore success 

Meanwhile, in Malaysia’s southerly 

neighbour Singapore, where rail 

infrastructure is advancing at a fast pace, 

Balfour Beatty Rail is already well 

established. 

Gammon Construction, a construction 

contractor jointly owned by Balfour Beatty 

and Asian conglomerate Jardine Matheson, 

has been working in the region for nearly 

50 years and in Singapore for 25 years on 

a range of civil engineering, residential, 

industrial and transport projects. 

Indeed, until the mid-1990s, it was the 

only contractor ever to have built a railway 

in Singapore. 

In recent years, competition in the sector 

has been fierce, and today Gammon is 

aiming to strengthen its grip on the local 

market once again. The team is currently 

working on the Singapore metro’s Jurong 

East Modification Project (JEMP), an

extension to the city’s North-South line. “It’s 

quite a significant job because it will involve 

doing the first tie-in with an existing line 

that’s been done in Singapore,” says David 

Suff, Executive Director of Gammon 

Construction Singapore. 

The next goal is to win a contract for 

the Tuas extension, a 5km add-on to the 

Boon Lay extension of the East-West line 

completed in a joint venture between 

Gammon and Balfour Beatty Rail earlier 

this year. 

Dynamic strategy 

Despite the stiff competition, business is 

good. Suff came to Singapore from Hong 

Kong five years ago and the move has paid 

off: “Gammon had a turnover of S$80m in 

2006; that has gone up to S$500m today.” 

About two-thirds of this growth is in rail 

and has come from projects linked to the 

Singapore Land Transport Authority (LTA) 

masterplan, a dynamic strategy that will see 

a doubling of the rail network by 2020, and 

MRT stations within easy reach of every 

commuter. 

Working there is not without its 

challenges, of course. “The LTA are 

demanding people to work for but equally 

they are a very knowledgeable client,” 

says John Latham, International Operations 

Director Balfour Beatty Rail. 

“They understand what it is they need, are 

quite prepared to pay for it and they simply 

administer the contracts in a manner that 

ensures they get what they paid for. You 

have to be on top of your game to make 

them happy.” 

calling card 

The LTA’s exacting standards are 

evidenced in the quality of Singapore metro, 

which is widely admired around the world 

for its efficiency and modernity. Working 

on it is therefore a useful association for 

Balfour Beatty Rail. 

The same goes for the company’s work in 

Malaysia: “Both railway systems are market 

leaders in their own right in the region; 

they are immensely powerful references,” 

says Latham. 

Naturally, the recognition is not the team’s 

only driver; the Malaysian and Singaporean 

governments are also good customers. “They 

make commitments to contractors and as 

long as you deliver to them the requirements 

of the contract, they pay,” says Latham. 

Looking ahead, the Balfour Beatty Rail 

team is keenly focused on expanding its 

work in the region. 

In Malaysia, John Kirton is looking 

towards the long-awaited Singapore to 

Kuala Lumpur high-speed rail link. “I am 

sure that Balfour Beatty’s high-speed 

experience in Europe coupled with our 

Malaysian cost base will be an interesting 

proposition for either the Government 

or private financier.” 

This is just one of a number of 

opportunities that include new light rail 

lines, further extensions to existing lines 

and plans to expand Balfour Beatty’s local 

railway design business beyond Malaysia. 

“Asia is a growth market,” says Latham. 

“We value the work we do there, and our 

continued involvement in both Malaysia 

and Singapore is crucial to our business 

strategy.” 

mArkets | 9 

Deutsch 

Balfour Beatty Rail ist in Südostasien, wo die 

Eisenbahninfrastruktur einen großen Wachstumsmarkt 

darstellt, gut etabliert. Das Unternehmen 

verfügt seit mehr als zehn Jahren über eine 

Vertretung in Malaysia und war in den letzten 

Jahren in Projekten zur Elektrifizierung von 

Bahnstrecken sowie zur Energieverteilung tätig. 

Das Team aus Malaysia hofft, schon in naher 

Zukunft seinen ersten Gleisbauvertrag abschließen 

zu können. Darüber hinaus ist das Unternehmen 

seit 25 Jahren über das Miteigentum an der 

Tochtergesellschaft Gammon Construction in 

Singapur vertreten. Gammon hat zuletzt am 

Ausbau des Metrosystems in Singapur mitgewirkt 

und hofft, auf dieser Tätigkeit aufbauen und 

weitere Aufträge in Verbindung mit dem Masterplan 

der singapurischen Landtransportbehörde für 

den Ausbau des Schienenverkehrsnetzes sichern 

zu können. 

ItaLIano 

Balfour Beatty Rail gode di una buona posizione sul 

mercato del Sud-Est asiatico, caratterizzato dalla 

forte espansione delle infrastrutture ferroviarie. 

Da oltre un decennio, la società opera in Malesia, 

dove da qualche anno è impegnata in progetti di 

elettrificazione ferroviaria e realizzazione di reti di 

distribuzione di energia elettrica. Per il prossimo 

futuro la squadra operante in Malesia confida 

nell’aggiudicazione del suo primo appalto per lavori 

di armamento ferroviario. Da 25 anni il gruppo è, 

inoltre, presente a Singapore con una quota di 

partecipazione nella Gammon Construction, alla 

quale sono state recentemente affidate le opere di 

potenziamento della metropolitana di Singapore. In 

Gammon la speranza è di partire da questo incarico 

per ottenere altri appalti legati al piano generale 

della Land Transport Authority per il potenziamento 

della rete ferroviaria. 

connect «

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10 | diAlogue 

Fast approaching 

In an exclusive interview, Malaysian Minister 

for Transport, Dato’ Sri Ong Tee Keat, tells 

connect how the country’s flourishing rail 

network can fuel economic growth. 

What is the greatest challenge facing 

the Malaysian rail network? 

The KTMB network was constructed 

in the early 19th century, linking capital 

states and major towns in Malaysia. Later 

development was confined to the existing 

network. In the mid-1980s, significant 

investment was made to build the North- 

South highway, heralding the coming of 

age of Malaysia’s road transport system. 

Only in the early 1990s did the Government 

start to invest in railway development, with 

the Klang Valley double tracking and Ipoh 

to Padang Besar double tracking projects. 

By then, the railway system trailed the road 

network in terms of modernisation. 


The railway is seen as the most costeffective 

mode of transport. With the 

completion of the Ipoh to Padang Besar 

and Seremban to Gemas double tracking 

projects, the capacity of the railway will 

be increased. With further expansion of 

double track to Johor Bahru, capacity will 

be extended to the whole west coast of 

Malaysia. 

Can you describe the importance of the 

Rawang to Ipoh and Ipoh to Padang Besar 

double tracking projects to the wider 

infrastructure plans? 

The expansion of the double tracking 

network from Rawang to Ipoh and Ipoh 

to Padang Besar has become an impetus 

for further development of the railway 

infrastructure and construction of new lines 

have also been planned in the southern and 

eastern corridors. To balance higher track 

capacity that would become available once 

the double tracking project in the northern 

sector is completed, it is imperative that the 

railway infrastructure in the other regions 

throughout the west coast be improved and 

modernised. This would facilitate seamless 

travel from Johor Bahru (South) to Padang 

Besar (North) and thus attract the public to 

use the railways. Such development can also 

become a catalyst for economic growth and 

encourage property and socio-economic 

development in areas served by the railway.

Malaysian 

Minister for Transport 

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What is the focus of future investments? 

The Government has recently launched 

the National Key Result Areas (NKRA), 

with public transport as one of the main 

areas of focus. The two main areas of 

investment will be converting all single 

track into electrified double track and 

improving KTMB’s infrastructure and 

rolling stock to increase train capacity 

thus meeting anticipated demand. 

How is rail performing against other forms 

of transport? 

KTMB Commuter carries around 100,000 

passengers per day in urban areas (the Klang 

Valley) while the RapidKL LRT lines carry 

about 300,000 passengers per day. 

Today, KTMB Commuter stations and 

the LRT stations are well integrated in Kuala 

Lumpur. Passengers can transfer easily 

under covered walkways between the LRT, 

KTM and Monorail stations. And they can 

use the Touch & Go stored-value cards for 

KTM Commuter and LRTs, as well as the 

Monorail system. 

malaysian minister for transport 

Dato’ sri ong tee keat 

“The railway is seen as the most cost-effective mode of 

transport. With the completion of the Ipoh to Padang Besar 

and Seremban to Gemas double tracking projects, the 

capacity of the railway will be increased.” 

100,000 passengers per day 

KTMB Commuter services 

since 1997, 

passenger numbers on commuter services 

have increased at an average of 12% annually 

300,000 passengers per day 

RapidKL LRT lines 

KL Sentral is the rail hub for Kuala 

Lumpur and the nation as a whole, with 

the intra-city buses and airport coaches for 

the LCC and Express Rail Link providing 

a high-speed connection to the airport, while 

the intercity trains connect to the south, 

north and east coasts of the country. The 

intra-city buses also act as feeder buses 

to the LRT, KTM and Monorail systems. 

How well are the commuter trains 

performing in urban areas? 

Since 1997, commuter services passenger 

numbers have increased at an average 

of 12 per cent annually, while revenue is 

picking up at 13 per cent annually. Due to 

the high cost of living, many passengers 

live outside of the Klang Valley area 

surrounding Kuala Lumpur and commute 

daily. The services offered by other rail 

operators could significantly complement 

KTMB services, as well as providing more 

accessibility of rail services to the passenger. 

50 emu trains 

Dato’ Sri Ong Tee Keat 

diAlogue | 11 

and refurbishment of 198 coaches 

connect «

12 | diAlogue 


How is the Malaysian railway network 

currently performing? 

As of July 2009, KTMB’s revenue has 

fallen short of projections. This is because 

of lower revenue from its commuter and 

freight services due to the restricted 

commuter train capacity. There has also 

been a reduction in domestic and crossborder 

demand for container/bulk cargo 

movements. However, income from intercity 

services has risen since the inauguration of 

the Kuala Lumpur to Ipoh shuttle services 

in December 2008. As the world economy 

recovers, we expect to see rising income 

from freight services. 

What improvements are you looking 

to make? 

Focus has been given to projects that 

would improve the rolling stock availability 

and increase the capacity and safety 

standard of the railway. The projects – 

the overhaul of 50 EMU trains and 

refurbishment of 198 coaches – are ongoing; 

to complement measures to improve the 

availability of EMUs, priority has also 

been given to the purchase of four used 

Diesel Multiple Units (DMU) from Spain. 

On track infrastructure, the Ipoh to Bukit 

Mertajam and Rembau to Gemas sections 

have undergone rehabilitation. Now the 

track is fit to accommodate 20-tonne axle 

load locomotives with a maximum operating 

speed of 90km/h. The track rehabilitation 

work on the only remaining section between 

Seremban and Rembau will be completed 

in October 2009. 

Improving the availability of rolling stock 

and increasing railway capacity are two key 

priorities for KTMB 

What are the opportunities for further 

cross-border rail projects with Singapore, 

and the prospects for an eventual 

pan-Asian railway? 

Once the Singapore-Kunming Rail Link 

(SKRL) project is completed, movements 

of goods within the ASEAN countries 

(the Association of Southeast Asian nations), 

as well as its connection to China and India 

could be further developed. 

KTMB has been sharing its experience at 

the annual ASEAN CEOs’ Conference and 

bi-annual Joint Conference with the State 

Railway of Thailand. During the previous 

ASEAN CEOs’ Conferences, it was agreed 

that the Malaysian Railway Academy at 

Batu Gajah, Perak, will be turned into an 

ASEAN Centre of Excellence for Railways. 

Describe your relationship with 

Balfour Beatty Rail 

Balfour Beatty Rail Malaysia has 

been engaged as sub-contractor for the 

electrification works under the Mitsui- 

MTS Consortium (Mitsui) for the 180km 

Rawang-to-Ipoh Electrified Double Track 

Project and is currently the subcontractor 

for the electrification works under the 

MMC/Gamuda Joint Venture for the 330km 

Ipoh to Padang Besar Electrified Double 

Track Project. The company has shown 

good commitment in accomplishing the 

Rawang to Ipoh project and has a good 

understanding of KTMB’s requirements.

Kuala Lumpur 

Jalan Kastam 

Klang 

Port Klang 

Income from intercity services has risen since 

the inauguration of the Kuala Lumpur to Ipoh 

shuttle services in December 2008 

Kajang 

Seremban 

Batu Caves 

Batu Village 

Sentul 

Tampin 

John Kirton, Managing Director 

of Balfour Beatty Rail in Malaysia, on… 

KL Sentral 

Mentakab 

Bahau 

Gema 

Segamat 

labis 

Paloh 

Ex i s t i n g KTMB 

railway lines 

T h e proposed parallel 

railway lines 

Klunag 

Kulai 

Jahor 

Baru 

Singapore 

… working with the Government to 

achieve its goals 

As in most countries, the Government is actively 

encouraging Malaysians to switch from their cars 

to public transport. The existing road network in 

West Malaysia, particularly around Kuala Lumpur 

and the Klang Valley, is comparable to any other 

developed country. However, there are 2.5 million 

vehicles in this relatively small area, and with a John Kirton, Managing Director 

of Balfour Beatty Rail Malaysia 

growth rate of 8% per annum the Government 

acknowledges that an extensive and efficient public transportation system 

is a necessity to prevent the commercial centre of Malaysia from coming to 

a standstill. The current commuter system carries approximately 400,000 

passengers per day and the Government is looking to significantly increase 

this with the implementation of longer trains, line extensions, feeder services 

and a new line stretching some 60 kilometres across the conurbation. 

… malaysia’s potential 

The increasing affluence of Malaysia is promoting more requirements to 

travel for both business and pleasure. In 1988, the Government approved the 

construction of the North-South Highway, which runs down the west coast 

of Peninsular Malaysia. Following its completion, the highway has been the 

principal infrastructure accreditation to Malaysia’s status as a ‘tiger’ economy. 

I am positive that expanding and upgrading the existing rail network will have 

a similar economic impact as that of the North-South Highway construction. To 

assess the potential that rail infrastructure growth has in Malaysia, particularly 

in the main line development, one should look at the impact of the low-cost 

airlines within the country and regionally. These airlines have grown from small 

operations to large fleets within a few years, benefiting from the absence of 

a fast and reliable alternative to the motor vehicle for long-distance travel. 

… the regional economic benefit of rail 

The Asian governments have recognised that the construction of rail infrastructure 

has the initial benefit of investment into the local economy, while over the longer 

term there is an incalculable benefit to the economy as a whole. 

diAlogue | 13 

Deutsch 

Im Vergleich zum Straßennetz in Malaysia hat 

das Schienennetz des Landes Nachholbedarf in 

Sachen Modernisierung. Durch den doppelspurigen 

Ausbau der Schienentrassen zwischen Ipoh 

und Padang Besar sowie Seremban und Gemas 

und die geplante Erweiterung bis Johor Bahru 

werde die Kapazität jedoch an der gesamten 

Westküste Malaysias erhöht, erklärte der 

malaysische Verkehrsminister Dato’ Sri Ong Tee 

Keat. Die Regierung kündigte kürzlich Investitionen 

in den Umbau eingleisiger Strecken zu elektrifizierten 

zweigleisigen Trassen an sowie die 

Verbesserung der Infrastruktur und der Züge von 

KTMB, um die Schienennetzkapazität zu erhöhen. 

Nach Abschluss des Singapore-Kunming-Rail- 

Link-(SKRL)-Projekts könnten der Warentransport 

innerhalb der ASEAN-Staaten und die SKRL- 

Verbindung nach China und Indien weiter 

ausgebaut werden. 

ItaLIano 

La rete ferroviaria malese è ben lontana dal livello 

di ammodernamento della rete stradale, anche se, 

come illustra il Ministro dei trasporti malese Dato’ 

Sri Ong Tee Keat, i progetti per la realizzazione 

delle tratte a doppio binario Ipoh - Padang Besar 

e Seremban - Gemas e l’ulteriore prolungamento 

della linea fino a Johor Bahru consentiranno la 

copertura dell’intera costa occidentale della 

Malesia. Recentemente il Governo ha annunciato 

investimenti per il passaggio dal binario unico al 

doppio binario elettrificato e il potenziamento delle 

infrastrutture e del parco rotabili della KTMB, l’ente 

ferroviario malese, in modo da incrementare la 

capacità dei treni. Giusto per dare uno sguardo 

oltre confine, con il completamento del 

collegamento ferroviario Singapore-Kunming 

(Singapore-Kunming Rail Link, SKRL), si potranno 

prevedere un’intensificazione del trasporto merci 

fra i paesi appartenenti all’ASEAN (Associazione 

delle Nazioni dell’Asia Sud-Orientale) e un 

potenziamento del collegamento SKRL verso 

Cina e India. 

connect «

14 | sAfety 

Zero Harm was launched by Balfour 

Beatty in October 2008 with the ambitious 

target of eliminating fatalities or serious 

harm to its people, sub contrac tors and the 

public by 2012. 

At the time Andy Rose, Group Managing 

Director, Engineering and Safety, said he 

wanted the Zero Harm initiative to “become 

part of the DNA of the Group”. Nearly one 

year on, how close is that goal to reality? 

“The power of the commitment of 

our businesses to Zero Harm has been 

astounding,” says Rose. “It has been a real 

pleasure to witness the energy and enthusiasm 

of everyone involved. Zero Harm has been 

embraced as a common mission in the UK 

and across borders, including a Zero Harm 

summit, held in Dubai, between our Middle 

East businesses and UK businesses.” 

Not just positive words, Rose insists. 

Balfour Beatty’s Group Accident Frequency 

Rate so far this year is down by 15 per cent 

on 2008. 

“Each business has produced a plan for 

meeting Zero Harm objectives and this has 

been communicated widely,” Rose adds. 

“All our businesses are different. The 

variety of approaches being taken are 

very wide and each is appropriate to the 

business concerned.” 


So what is the picture at Balfour Beatty 

Rail? What has been happening on the 

ground within the business to embed the 

Zero Harm DNA? 

Roger Rees, SHEQ Manager Engineering, 

Manufacturing and Technologies at Balfour 

Beatty Rail, outlines some of the main areas 

of focus. 

“We have appointed heads of the business 

to lead a number of potentially fatal risk 

projects. Mark Nash, Head of Manufacturing 

Operations, is tasked with working at height 

on lorry trailers. Mark and his team have 

looked at problems with working at height 

such as loading rail crossings onto lorry 

trailers,” he says. 

on the ground 

“There are opportunities here for workers 

to fall off and injure themselves when 

unhooking chains. We have rejected solutions 

such as air bags on the ground to cushion 

falls for practical reasons and are now 

focusing on finding alternative methods. 

Balfour Beatty Plant & Fleet Services has 

devised a novel method to unhook slings 

used for lifting its site cabins from ground 

level: its ‘Feet on the Ground’ initiative. 

This demonstrates how the process has 

been rethought and we will learn from that 

experience – that is, to see if we can 

primarily load lorries from ground level. 

Driving 

through change 

It is less than a year since Balfour Beatty launched 

Zero Harm, and already the Group’s accident rate 

has decreased. But how exactly has Balfour Beatty 

Rail contributed to this achievement? 

By David Craik 

“We have involved our key suppliers in 

areas such as working at height,” continues 

Rees. “They have come to our briefing 

sessions and we have asked them to brief 

their drivers on our initiatives.” 

Balfour Beatty Plant & Fleet Services 

has also developed a driver awareness 

programme to improve driver safety, Rees 

adds. It is currently running in many areas 

of Balfour Beatty Rail, including the 

Technologies division and will soon be 

operating within the manufacturing and 

engineering businesses. 

combining knowledge 

David Meacham, Head of Engineering 

for Renewals Main Line Operations at 

Balfour Beatty Rail, is the leader of a team 

dedicated to reducing injuries and deaths 

from electrocution within Main Line 

Operations. Meacham says the process 

is in its early stages. 

“We have set up a steering committee 

investigating the risks associated with our 

operations. These have been broken down 

into five categories – overhead lines, third 

and fourth rail, plant workshops, offices 

and depots and work sites,” he says. 

“We engaged our specialists in these areas 

and formed five challenge forums, pulling 

their ideas and information together. From

these, we have gone to our workforce and 

set up safety circles asking them to identify 

the risks they face regarding electrocution 

as they go about their day-to-day business. 

“As an example, there are significant risks 

faced by our on-track personnel placing speed 

restrictions when the power is live. Eighteen 

months ago, two of our workers were 

fortunate when they crossed a live line they 

believed was isolated. They were uninjured 

but traumatised when their equipment came 

into contact with the live rail. 

“By the end of the year, we anticipate 

completing the risk evaluation, including 

rating in terms of likelihood and severity 

based on existing safeguards. We want to 

identify the good processes we have in place 

and eliminate the ‘luck’ processes. The 

challenge forums will then look at additional 

measures that would reduce the risks and 

implement those within their powers. 

“Procedural changes requirements will 

be reviewed by the steering committee and 

put forward to the Executive for approval 

or adoption, whether this means specific 

training or a change in working culture,” 

Meacham says. 

Clients have recognised the 

safety strides being made 

across the Group. At the 

Network Rail Partnership 

Awards, Balfour Beatty 

picked up the safety award 

for its work on the Forth 

Bridge (see Panorama, p22). 

Subcontractors and clients are also 

supporting Balfour Beatty Rail’s work in 

this area. Meacham says subcontractors 

at the “highest level” have been 

contacted about Zero Harm and its 

objectives. He says: “They are 

engaging with us on the project and 

are ready to adopt any changes to 

work methods or kit that this 

entails.” 

Mick Rayner, Head of Mainline 

Operations at Balfour Beatty Rail, is leading 

the team created to look at how the business 

can reduce injuries and deaths related to 

train or machine strikes. 

“We have nominated separation of people, 

trains and machines as a key area of focus,” 

he says. “We are assembling a crossbusiness 

team to identify areas where we 

can reduce risk. We have implemented all 

orange PPE [Personal Protective Equipment] 

on all of our sites to increase the visibility 

of our people.” 

Rayner says Balfour Beatty Rail has 

also been trialling a new method of 

communication between the machine 

operator and machine controller. “This 

allows for continuous voice contact to 

ensure that the controller is always in 

contact and visible to the operator.” 

Picking up speed 

The momentum across the rail business 

and the group will increase in the next 

12 months, says Rose. “We should see 

improving safety performance and reducing 

occurrence of high-potential incidents,” he 

states. “A testament to all this commitment 

and endeavour will be when the name of 

the business becomes synonymous with the 

achievement of Zero Harm, and our 

customers and the wider community 

recognise it as such.” 

sAfety | 15 

Deutsch 

Unsere Initiative „ZERO HARM“ macht innerhalb 

von Balfour Beatty Rail gute Fortschritte. Zu 

den wichtigsten Zielen zählen die Verhinderung 

von Verletzungen und Todesfällen aufgrund von 

Arbeiten in Höhe, tödlichen Stromschlägen und 

Unfällen mit Zügen und Maschinen. In allen 

Bereichen von Balfour Beatty Rail werden in 

Zusammenarbeit mit Subunternehmern und 

Kunden Maßnahmen ergriffen, um die Ziele der 

Initiative „ZERO HARM“ bekannt zu machen 

und in eventuell erforderliche Veränderungen 

der Arbeitsprozesse einzubinden. Konzernweit 

sind bereits erste Ergebnisse sichtbar: Die Unfallhäufigkeit 

bei Balfour Beatty liegt im laufenden 

Jahr 15 Prozent unter der von 2008. 

ItaLIano 

Grandi passi avanti nella campagna Zero Harm 

in tutto il gruppo Balfour Beatty Rail. Fra le priorità 

rientrano l’eliminazione di infortuni e morti per 

“lavori in altezza”, il rischio elettrocuzione e gli 

incidenti ferroviari. Tutti, in Balfour Beatty Rail, si 

stanno adoperando per far conoscere gli obiettivi 

della campagna Zero Harm a fornitori, 

subappaltatori e clienti e per renderli partecipi dei 

cambiamenti che possono derivarne in ambito 

lavorativo. In questi mesi del 2009, già si possono 

apprezzare i primi risultati a livello di gruppo tra cui 

una diminuzione del 15% dell’indice di frequenza 

infortuni (AFR) rispetto all’anno precedente. 

ZERO HARM 

BY 2012

16 | study 

All aboard the 

2025 express 

A study for trade body UNIFE 

identifies four scenarios for 

the future of the European rail 

industry, from Chinese domination 

to protectionism. connect finds 

that in some respects, the future 

is already pulling into the station. 

By Matt Farquharson 

In the next 20 years, Western rail 

companies will be either gobbled up by 

Chinese competitors or struggling to find 

a new business model to survive. China 

will dominate the world, its industrial and 

financial strength will give it first access 

to resources and technology, and Europe 

will have steadily less influence over 

global affairs. 

That is one conclusion drawn by UNIFE, 

the industry body for European rail, in its 

April 2009 report into the future of the 

global rail market. It commissioned Boston 

Consulting Group (BCG) to examine how 

the industry might look in 2025. BCG came 

up with four scenarios (see box), and one 

extrapolation of its ‘Dragon corp’ scenario 

would see China overtake the Western rail 

industry. 

Becoming reality 

“On one side, they [the Chinese] would 

build advanced railway systems,” explains 


Michael Clausecker, UNIFE’s Director 

General, “and at the same time they 

would exploit African markets for natural 

resources, steel, minerals and so on.” 

It might sound a little excitable, accepts 

Alain Beauvillard, Project Leader with 

BCG, but he insists that it’s becoming 

more feasible. “At the beginning, some 

participants felt the four scenarios were 

too far from reality,” he says. 

“But looking back at them now, it’s 

becoming more realistic every day. ‘Divided 

nation’ [a move to protectionism] – this is 

something that you see arriving everywhere 

in Europe. ‘Dragon corp’ [increasing 

competition from Chinese players] is a reality 

that most industry players are confronted 

with on an everyday basis. And ‘mission 

mobility’ [convergence of different 

transportation modes] is ongoing. These 

scenarios for 20 to 25 years from now are 

not as unrealistic as we thought at the 

beginning.” 

rapid development 

“Looking at the short term, many 

people have been surprised by the rapid 

development of the economic crisis. It was 

not part of the project scope but rapidly 

became a major focus topic when we 

observed how hard and how quickly the 

crisis started affecting the rail industry,” 

says Dr Peter Ulrich, Managing Director 

with BCG. “Discussions were around not 

only the freight segment – hardly hit with 

traffic drops by 20 to 40 per cent versus 

previous years – but also the passenger 

segment in which mainline already shows 

initial signs of slowdown. 

“Moreover, the crisis turned out to be 

enforcing the long-term scenarios heavily. 

Underlying scenario assumptions like 

protectionism and the increasing role of 

China matched pretty well with the French 

Automotive Support focused on France 

only and the $85 billion anti-crisis package 

launched for rail in China.”

UNIFE commissioned the report so 

that it could offer more strategic support 

to members. “We saw all around us that a 

very severe economic crisis was happening,” 

says Clausecker. The organisation, he says, 

wanted to “provide our members with food 

for thought and some ideas. The fact we 

are doing this reflects a new role for our 

organisation – to give members advice on 

their strategy building.” 

cycle of change 

So far, the response from the industry has 

been a series of sombre nods. “There has been 

a lot of surprise about how severely the crisis 

has affected the industry,” says Beauvillard. 

“There has been a lot of discussion about 

what segments are being most affected and 

about the threat, so for people it was more 

a confirmation of their fears.” For an industry 

that is historically slow to change, these 

scenarios could have massive implications. 

“The rail industry is not used to radical 

changes,” says Beauvillard. “It typically 

works in cycles of 15 to 20 years. If you 

look at the product life of a locomotive, you 

are talking about 40 years. The pace of this 

cycle is now accelerating and we are not 

sure that all players in the rail industry are 

well prepared. This acceleration is partly 

driven by the crisis but also by the 

convergence of different transportation 

modes and new end-customer expectations. 

Operators want to offer more door-to-door 

solutions and move from a purely railfocused 

model to a mix of various 

transportation modes.” 

“During such turbulent times, we 

may experience major shifts in the player 

landscape. A recent BCG report shows, 

for example, that mergers and acquisitions 

(M&A) conducted in crisis times are 

generating above average value. Some 

segments – such as signalling – are still 

very fragmented and the question remains 

about how many suppliers will survive 

and what kind of M&A we will see,” adds 

Ulrich. 

surge in demand 

Of course, there are positives to consider, 

too. The race for clean, renewable energy 

sources has, in many ways, sped up as a 

result of the economic crisis. Economic 

stimulus packages in the US and UK have 

come with funds earmarked for green 

projects. And if this ‘mission mobility’ 

scenario were to become a reality, the report 

concludes, there could be a huge surge in 

demand for travel, creating challenging but 

potentially rewarding times for the industry 

and its suppliers. The flipside, however, 

is likely to be increased competition from 

other transport means and declining 

government support for rail travel, as its 

environmental benefits become less relevant. 

“All scenarios provide certain threats,” 

says Clausecker. “Certainly, ‘divided 

nation’ and ‘China corp’ carry more threats 

than opportunities, but the challenge is that 

even if the threats are larger than the 

opportunities, you have to recognise them 

early on and develop your strategy to deal 

with them.” In some ways, the industry is 

already adapting to improve its offering 

and face the challenges ahead. 

No one can accurately tell what the future 

holds. By 2025, these predictions may appear 

staggeringly prescient or hopelessly incorrect. 

But the current climate is presenting 

challenges that will alter the rail industry 

for years to come, and those that fail to react 

may find themselves consigned to the pages 

of history. 

1. World at home: a communications boom 

means less need for long-distance travel 

3. Dragon corp: China dominates the globe 

economically, financially and industrially, and leads 

the international rail industry 

study | 17 

Deutsch 

Der Dachverband der europäischen Eisenbahnindustrie 

UNIFE hat einen Bericht über die Zukunft 

der Branche in Auftrag gegeben. Dieser Schritt ist 

Teil des erweiterten Aufgabenbereichs der UNIFE, 

der nun auch die strategische Beratung seiner 

Mitglieder umfasst. Der Bericht geht auf vier 

Szenarien ein: 1 – Ein Kommunikationsboom führt 

zu sinkendem Reisebedarf; 2 – Eine neue saubere 

Energiequelle bewirkt ein höheres Reiseaufkommen; 

3 – China dominiert die Branche (und die 

Welt); 4 – Die Branche gleitet in nationalen Protektionismus 

zurück. Die Verfasser führen an, dass 

diese Szenarien – insbesondere Nr. 2 und Nr. 3 

– seit der Aufnahme ihrer Arbeit wahrscheinlicher 

geworden seien. Um zu überleben, müssen 

Lieferanten und Beförderungsunternehmen daher 

zu Veränderungen bereit sein, und zwar in sehr viel 

kürzeren Abständen als es in der Vergangenheit in 

der Branche erforderlich war. 

ItaLIano 

L’ UNIFE, in linea con il suo crescente ruolo 

strategico di consulente per gli associati, ha 

commissionato uno studio sul futuro del settore 

ferroviario. Quattro gli scenari previsti: 1 – boom 

delle telecomunicazioni, che porterà ad una minor 

necessità di spostarsi; 2 – fonti energetiche nuove 

e pulite, che porteranno ad un maggior sviluppo di 

sistemi di trasporto sostenibili; 3 – ruolo dominante 

della Cina nel settore (e nel mondo); 4 – ritorno 

dell’industria al protezionismo. E a detta dei 

ricercatori, in particolare il 2° e il 3° scenario, nel 

corso dello studio sono risultati essere sempre più 

probabili. Il prezzo per la sopravvivenza chiesto a 

fornitori e vettori ferroviari è la versatilità, come 

capacità di adattarsi, e disponibilità a cambiare in 

tempi molto più rapidi rispetto al passato. 

2. Mission mobility: a clean energy revolution 

removes dependence on fossil fuels and travel 

increases dramatically 

4. Divided nation: trading blocs collapse as the 

world sinks into protectionism and rail returns to 

pre-privatisation era 

Source: Boston Consulting Group/UNIFE 

connect «

18 | technology 

Points taken 

By predicting the future state of track assets, 

remote condition monitoring can help make 

savings now. 

“We need suppliers to work with us to 

deliver solutions, which help to bring about 

a step change in business performance, 

rather than simply supplying engineering 

widgets.” 

So Professor Andrew McNaughton, 

Network Rail’s Chief Engineer (currently 

seconded to High Speed 2), described the 

thinking behind ‘intelligent infrastructure’, 

the company’s ambition to use near to 

real-time condition information on its track 

assets to save time, money and labour. 

The challenge set down by McNaughton 

and Network Rail is one that requires an 

increasingly sophisticated response – 

especially given the pressure to deliver 

savings during control period four (CP4), 

Network Rail’s strategic delivery plan for 

2009-2014. 

One significant area of saving for 

Network Rail is the ongoing maintenance 

of the network. Money can be saved by 


being more efficient in controlling the 

amount of work carried out. And this is 

where remote condition monitoring (RCM) 

comes to the fore. 

Ian Maclean, General Manager of 

Engineering, Manufacturing and 

Technologies in Balfour Beatty Rail UK, 

explains: “Remote condition monitoring is 

a predictive tool that looks at the condition 

of the track asset, and uses algorithms to 

predict its future condition. It is crucial in 

reducing maintenance cost and life-cycle 

cost of components.” 

Working closely with Network Rail, 

Balfour Beatty Rail has been adapting its 

approach to points condition monitoring 

in line with the renewed priorities. 

“Network Rail plans a huge increase in 

investment on asset monitoring during CP4 

and is setting up framework agreements 

with a few key suppliers, to meet the step 

change in demand,” says Keith Wilson, 

Balfour Beatty Rail UK. “We have to 

provide the right technical and commercial 

offering to Network Rail in order to help 

them to achieve their long and short-term 

goals.” 

A little over a year ago, Network Rail 

conducted a benchmark exercise on 

different points monitoring systems, the 

parameters they measured and their benefits. 

The company concluded that if the RCM 

systems only measured current in the points, 

they would resolve 75 per cent to 80 per 

cent of the issues. 

testing times 

The result is that Network Rail has moved 

towards single sensor condition monitoring – 

a cost-effective solution that can be rolled 

out to more points on the network. 

“During our early experience on the 

West Coast Mainline, we measured several 

parameters and although it was proven 

technically, the solution was probably too

“ We’ve had to sharpen our pencils to offer the 

right technical and commercial response.” 

expensive to be rolled out on a national 

basis,” says Wilson. “It’s been a long 

learning curve for us, but we’ve worked 

closely with Network Rail to come up with 

products that meet their needs.” 

assetView 

One of these products is AssetView, a 

configurable software system with web 

access that allows real-time, user-friendly 

information to be viewed by the end user. 

It enables Network Rail and other customers 

to understand fully how their assets are 

performing, and to analyse trends to see 

potential modes of failure. Specific data, 

graphs and track map replays can be viewed 

for a particular section of track at any time 

of the day. 

“For example, you can see how quickly 

the points move, and plot the current every 

time the points move. You can see if the 

motor is using more power than it should 

be, enabling you to pick up any performance 

trends and potential issues that may affect 

the points working properly,” says Wilson. 

eliminate delays 

He believes the benefits are clear. 

There have been significant improvements 

regarding maintenance scheduling, 

especially the ability to plan and predict 

when work needs to take place. Condition 

monitoring can also extend the life of point 

machines, and most importantly, improve 

safety and reduce costs. 

“There is less chance of malfunction and 

therefore accidents and it can eliminate 

minor problems in points that cause train 

delays. If you have one train delayed going 

into a London terminus at rush hour, the 

knock-on effect can be enormous, especially 

in terms of potential fines.” 

The challenge for Balfour Beatty Rail is 

to take its learning from the UK and adapt 

it for other markets. Condition monitoring 

testing has already begun in Italy on the 

technology | 19 

Deutsch 

Network Rail strebt eine Zustandsüberwachung 

der Strecken in Fast-Echtzeit an, um Zeit, Geld und 

Arbeitskräfte zu sparen. Eine Lösung dazu ist das 

sogenannte Remote Condition Monitoring (RCM), 

über das der zukünftige Zustand von Strecken 

prognostiziert wird. Network Rail plant eine 

erhebliche Steigerung der Investitionen im 

Kontrollzeitraum vier und schließt derzeit 

Rahmenvereinbarungen mit Schlüssellieferanten, 

um dem veränderten Bedarf nachzukommen. Nach 

eingehendem Benchmarking favorisiert Network 

Rail derzeit eine Zustandsüberwachung über einen 

integrierten Sender. Balfour Beatty Rail hat in 

Zusammenarbeit mit dem Unternehmen geeignete 

Produkte entwickelt. Eines dieser Produkte ist 

AssetView, ein konfigurierbares Softwaresystem, 

über das dem Nutzer Informationen in Echtzeit 

angezeigt werden. 

ItaLIano 

Informazioni in tempo reale - o quasi - sullo stato 

dei propri binari: a questo punta Network Rail per 

risparmiare tempo, denaro e lavoro. Una possibile 

soluzione arriva dal sistema di monitoraggio remoto 

(RCM) che consente di elaborare previsioni sulle 

condizioni future del binario ferroviario. Per il 

periodo 2009-2014 (CP4), Network Rail ha in 

programma un massiccio incremento degli 

investimenti sui sistemi di monitoraggio e sta 

stipulando una serie di accordi quadro con fornitori 

chiave per fare fronte alle nuove esigenze. Un test 

di confronto fra vari sistemi ha indotto Network Rail 

a propendere per il monitoraggio mediante sensori 

singoli e Balfour Beatty Rail ha collaborato con la 

società per individuare i prodotti idonei, fra cui 

AssetView, un sistema software configurabile in 

grado di visualizzare in tempo reale le informazioni 

destinate all’utente finale. 

Milan metro, with hopes high for further 

work later in the year. “There is no doubt 

that the technology is global, but signalling 

logic is different in every country and the 

systems must be flexible to offer the proven 

benefits to the end user,” says Wilson. 

But he’s confident Balfour Beatty Rail’s 

response to McNaughton’s challenge will 

stand it in good stead. “In the past 12 

months the relationship has changed 

slightly, in that Network Rail has taken 

more control at a national level through the 

intelligent infrastructure initiative. Also, 

during 2009 we have installed AssetView 

almost the full length of the West Coast 

Mainline – it’s a great reference for us to 

prove the benefits of all types of asset 

monitoring across the entire network.” 

connect «

20 | mArkets 

In the thick of it 

With Germany’s central location in Europe underlining the need for 

a world-class rail network, Deutsche Bahn is in a race against time 

to modernise the system to increase transport capacity. 

By Jo Russell 

Situated at the heart of Europe, Germany 

is an industrial and economic powerhouse. 

After more than a decade of ironing out the 

problems that reunification brought, the 

country can now capitalise on its size and 

location. Its geographical importance is 

particularly acute when looking at the rail 

industry. As Michael Bernhardt, Sales 

Director of Balfour Beatty Rail Germany, 

points out, “Anyone wanting to transfer 

goods west to east or north to south has 

to move it through Germany.” 

As a consequence, the German rail 

network operated by Deutsche Bahn is 

denser than other comparable countries in 

the world, and has extremely frequent 

service levels. It is also one of the oldest. 

Early adoption of rail transport has meant 

that many existing tracks and tunnels are 

now close to 50 years old. Attention is 

therefore focused on connectivity and 

upgrading of existing lines rather than 

the construction of new lines. 

Stuttgart 21 is a prime example. 

Currently, Stuttgart is a terminal station 

where passengers must stop and change 

trains. Converting it to a “through” station 

will vastly improve journey times of trains 

running from Frankfurt or Paris via Stuttgart 

to Munich, Vienna and Italy, and contribute 

to the efficiency of the planned European rail 

transport corridor – lines designed to provide 

the most efficient and shortest transport 

solution between European markets. Under 

a massive long-term project, work is under 

way to move the station underground and 

build a tunnel under the city. Balfour Beatty 

Rail won the contract for the overhead lines 

and the adaptation of the existing technical 

installation to prepare the station area for 

the drilling machines of the tunnel tubes. 

combined forces 

Teaming up with rail engineering group 

Schreck-Mieves has enabled Balfour Beatty 

Rail to play a greater role in this ongoing 


modernisation work. Balfour Beatty Rail’s 

acquisition of Schreck-Mieves in 2008 

means that the company can now put itself 

forward for complex tenders where solutions 

involving both track and fixed installation 

works are required. “We are sharing 

knowledge across both companies and 

improving how we can work together,” 

explains Bernhardt. “We recently won 

the Karlsruhe/Rastatt track improvement 

project, which required Schreck-Mieves’s 

track machines, Balfour Beatty Rail’s 

expertise in adapting the overhead lines, 

and in signalling interlocking work.” 

Government attention 

While attention is focused on the 

upgrading programme, there have also been a 

number of high-speed projects. Lord Adonis, 

Secretary of State for Transport in the UK, 

recently visited Germany and was impressed 

with what he saw. He said: “378km are under 

construction in addition to the 1,300km 

already open – and it includes most of the 

nation’s primary economic corridors. The 

greatest success has been the 160km 

Frankfurt to Cologne line, with a journey 

time of just over an hour.” The work 

includes the development of Frankfurt 

airport as a new high-speed hub on the 

line, which has helped virtually eliminate 

flights between Frankfurt and Cologne. 

Chancellor Angela Merkel has made 

a commitment to improve the European 

corridor, and additional budget has been 

made available for this through a recessionbusting 

economic stimulus package. 

Contracts for the civil works have been 

granted on the line that will run between 

Erfurt and Nuremberg, while tenders for 

the technical equipment are being prepared. 

The line will form part of a link that will 

cut travelling times between Munich and 

Berlin from six to four hours. 

Aware of the importance of the rail 

industry to the economy, the German 

government has allocated €2.5 billion 

per year for the next five years on rail 

infrastructure. There is also an additional 

fund of more than €1 billion plus further 

€1.3 billion stimulus packages, to be 

invested in accelerating existing rail 

infrastructure projects, noise reduction 

and station improvement. The difficulty 

can lie in releasing this money for the 

projects for which they are designed and at 

the desired pace. “Planning of big projects 

can take a long time in Germany,” 

says Bernhardt. 

“The money is 

allocated by the 

government but the 

process to receive 

the money seems 

to be complex, 

and European 

tender policies and 

timings must be 

followed.” 

Deutsche Bahn is one of the 

biggest players in the European 

rail market, and its new chief 

executive Rudiger Grube, is facing 

some challenges, including falling 

revenues in its rail freight business 

and a network at full stretch. On the 

38,200km long network, a train is 

passing on average every 17 minutes 

and in some highly frequented corridors, 

every two minutes. Yet severe congestion 

on the roads has led to increased rail 

transportation, so the government’s billions 

are sorely needed. 

For Germany, there could be busy times 

ahead. As Bernhardt says: “I have told my 

colleagues to take their holiday now, as the 

last few months of the year will be hectic.”

Greatest success 

€1.3 billion 

Stimulus package 

160km Frankfurt to Cologne line 

Deutsche Bahn network 

38,200km 

378km of track under construction 

1,300km already open 

mArkets | 21 

Deutsch 

Dank seiner Lage im Herzen Europas ist 

Deutschland der ideale Ausgangspunkt für den 

europäischen Warentransport. Das landesweite 

Schienennetz ist gut ausgebaut, die vorhandenen 

Strecken werden kontinuierlich verbessert. 

Darüber hinaus werden europäische Korridore als 

Verbindungen zwischen Deutschland und den 

Nachbarländern eingerichtet. Im Bewusstsein über 

die strategische Bedeutung des Schienennetzes 

hat die deutsche Regierung entschieden, jährlich 

weiter 4 Milliarden Euro an Fördermitteln für 

Schieneninfrastrukturprojekte bereitzustellen. 

Förderpakete, Verkehrsstaus und Umweltbedenken 

setzen Signale für eine Erfolg versprechende 

Zukunft des Schienentransports in Deutschland. 

ItaLIano 

La Germania, grazie alla sua posizione ideale nel 

cuore dell’Europa, non può che trarre vantaggio dal 

trasporto merci trans-europeo. Ai collegamenti 

ferroviari già estremamente efficienti su tutto il 

territorio nazionale, si sommano continui interventi 

di potenziamento delle linee esistenti e opere per 

la realizzazione di corridoi ferroviari per unire la 

Germania ai paesi confinanti. Il Governo tedesco, 

consapevole dell’importanza strategica della strada 

ferrata, ha destinato alle ferrovie altri 4 miliardi di 

euro l’anno, che tuttavia l’operatore tedesco 

Deutsche Bahn per ora non ha ancora cominciato 

a investire. Pacchetti di incentivi, traffico 

congestionato e diffusa coscienza ambientalista 

fanno ben sperare per il futuro del trasporto 

ferroviario in Germania. 

connect connect « 

«

22 | pAnorAmA 

News and analysis 

from Balfour Beatty Rail 

Norway 

Powering Norway’s rail network 

Balfour Beatty Rail is planning further 

success in Norway following the award 

of a power supply contract. The deal with 

Norwegian client JbV Bane Energi is worth 

approximately 120 MNOK (£12 million), 

and includes the construction and installation 

of a converter station in Stavanger. The 

works began with the design of the station 

and the project will be finished in 2011. 

JbV Bane Energi owns and operates all 

power supply to the Norwegian railway and 

plans to spend an average of 100 MNOK 

(£10 million) each year for the coming 

decade on refurbishment and new build. 

“Securing this contract clearly improves 

our position, and will be a recommendation 

for future contracts,” says Egil Smevoll, 

Managing Director of Balfour Beatty Rail 

Norway. 

“The power supply business and the track/ 

catenary business are two quite different 

things, with different competitors and 

different contract models,” explains 

Smevoll. “We are the only contractor in 

Norway active in power supply, track, 

catenary and signalling. We are planning for 

strong growth – trackwork and catenary 

works will be key areas of focus.” 


UK 

Chongqing 

Cho qing 

‘Making a difference’ 

Huaihua 

Network Rail has recognised Balfour 

Beatty’s contribution to the rail industry in 

the UK by naming the company supplier of 

the year at its first partnership awards 

ceremony. 

Balfour Beatty Civil Engineering also 

picked up the safety award for its efforts to 

improve safety while refurbishing the Forth 

Bridge in Scotland. The work was also 

shortlisted for the heritage and team 

contribution awards. Birse Rail won the 

environmental sustainability award for its 

use of recycled ballast during an emergency 

embankment stabilisation. Balfour Beatty 

Rail Projects was highly commended for its 

recycling at Orient Way, part of works for 

the London Olympics. 

Network Rail Chief Executive Iain 

Coucher said: “Selecting the winners was 

tough and all our shortlisted entrants should 

feel proud. Our finalists have made a real 

difference to Network Rail and the millions 

of people who travel by rail every day.” 

Following a detailed study into the need 

for new capacity on the UK’s railway, 

Network Rail has proposed a new 320km/h 

high-speed line, linking the Midlands, 

north-west and Scotland. It would halve 

travel time from London to Scotland to just 

over two hours. The UK government is 

assessing the plans and has promised a 

decision in 2010. 

Beijing 

Changsha 

Wuhan 

Chenzhou 

Asia-Pacific 

Chongqing 

Breaking new ground 

Beijing 

Wuhan 

Changsha 

Hong Kong 

Dalian 

Harbin 

Shanghai 

Speeds of more than 350km/h were 

reached during a recent trial run of the 

high-speed line overhead catenary system 

between Changsha and Wuhan in China. In 

the first official test of the system, the train 

averaged a speed of more than 300km/h 

over a distance of 222km. 

The project kicked off in summer 2007, 

when Balfour Beatty Rail Germany was 

awarded the contract for the electrification 

of the track section between Wuhan and 

Guangzhou. One of the world’s largest 

railway electrification projects, it presented 

the company with several challenges: nearly 

half of the 967km track runs over bridges 

and viaducts, while approximately 70km 

runs through tunnels. 

The operating speed will be 300km/h, 

which has not yet been achieved on Chinese 

high-speed passenger lines. The new line 

opens on 1 January 2010. 

Taipei

Strong half-year results 

Balfour Beatty Group has reported a 14 per 

cent jump in pre-tax profit to £108 million for 

the first half of 2009, compared with £95 

million during the same period last year. 

Profit in investments rose by 86 per cent, 

and profit from operations in the building 

sector increased by 39 per cent. 

Balfour Beatty’s cash position remains 

strong, with average net cash of £224 

million for the first six months of 2009. 

A number of factors have contributed, 

including the development of the US 

business, which accounted for 30 per 

cent of Group revenue. 

With an order book of £12.5 billion, the 

Group is confident that it will build on this 

success during the rest of 2009. Chief 

Executive Ian Tyler said: “Our strong 

first-half performance, together with the 

visibility provided by our significant order 

book of high-quality work, underpins our 

confidence in the prospects of the Group.” 

Published by: Balfour Beatty Rail, 86 Station Road, Redhill, Surrey. RH1 1PQ UK Publisher: Manfred Leger 

editorial: Bladonmore Media Ltd., UK Design & Production: FLAME Communications GmbH, Germany 

Reproduction, copying or extracting by any means of the whole or part of this publication must not be 

undertaken without the written permission of the publisher. 

Alliance shows its strength Acquisition of Parsons 

Brinckerhoff 

Balfour Beatty Rail, in alliance with 

London Underground (LU), has secured a 

two-year extension to the Track Alliance 

track renewal contract. 

The Track Alliance comprises staff from 

both LU and Balfour Beatty Rail working 

together through one management team. 

Over the next two years, the works will 

include deep tube reconditioning, ballasted 

track renewals, points and crossings (P&C) 

and P&C heavy maintenance. 

“The next two years will be extremely 

challenging in order to meet the required 

delivery and cost targets as well as 

improving quality and safety in our journey 

towards Zero Harm,” said Richard Adams, 

Director, Balfour Beatty Rail UK. 

The contract covers the SSR and BCV 

lines, (Metropolitan, District, Hammersmith 

& City, and Central, Bakerloo and Victoria 

lines). 

The contract extension has been awarded 

based on the Track Alliance’s performance 

in meeting demanding targets on delivery, 

cost, quality and safety over the past year. 

UK UK USA 

pAnorAmA | 23 

Balfour Beatty announced the $626 

million acquisition of Parsons Brinckerhoff 

(PB) in September. Shareholders of Balfour 

Beatty and the US-based Parsons 

Brinckerhoff, one of the world’s leading 

professional services firms, will now be 

asked to approve the deal with completion 

expected at the end of October. 

Parsons Brinckerhoff has a network of 

more than 100 offices with over 12,500 

employees and 2008 revenue of $2.34 

billion. It is one of the world’s leading 

planning, engineering and programme and 

construction management organisations. It 

has an excellent record in large-scale 

infrastructure projects with an extensive 

track record in rail projects including the 

Taiwan High-Speed Rail Line, the Bay Area 

Rapid Transit System in San Francisco and 

London’s East London Line. 

Balfour Beatty Chief Executive Ian 

Tyler said: “Balfour Beatty has a lot of 

transportation and power capability already, 

but it is very much focused on delivering 

projects. What we have now is the full 

supply chain right the way from the 

feasibility work that PB does, down to 

the projects on the ground and everything 

in between.” 

Overseas, Tyler indicated that the 

acquisition of PB would significantly extend 

the Group’s presence in the US market, 

particularly in civil infrastructure and 

transport, and would open a number of new 

markets to the business. 

connect «

Balfour Beatty Rail 

UK 

Balfour Beatty Rail Ltd. 

info@bbrail.com 

Germany 

Balfour Beatty Rail GmbH 

info.de@bbrail.com 

info@schreck-mieves.de 

Italy 

Balfour Beatty Rail S.p.A. 

info.it@bbrail.com 

Spain 

Balfour Beatty Rail Ibérica, S.A.U. 

info.es@bbrail.com 

Scandinavia 

Balfour Beatty Rail AB (Sweden) 

info.se@bbrail.com 

Balfour Beatty Rail AS (Norway) 

info.no@bbrail.com 

Balfour Beatty Rail Denmark A/S 

info.dk@bbrail.com 

Austria 

Balfour Beatty GmbH 

info.at@bbrail.com 

China 

Balfour Beatty Rail Trading Beijing Ltd. 

info.cn@bbrail.com 

Malaysia 

Balfour Beatty Rail Sdn Bhd 

info.my@bbrail.com 

Romania 

Balfour Beatty Rail S.A.R.L. 

info.ro@bbail.com 

USA 

Balfour Beatty Rail Inc. 

info@bbri.com 

www.bbrail.com

People Technologies Markets - Balfour Beatty Rail

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