O&M concessions in Copenhagen
We provided Board level strategic advice and bid support services to Metro Service for two successful O&M bids: for the shadow operator and future operator role for the Hovestadens Letbane, a 28km Light Rail project under construction; and for the 10 year re-concessioning of Metro Lines 1 and 2 (a 21km driverless system). It included delivering a programme which coached the senior leadership team, leading bid workshops and development of the business strategy, and a unique proposal creation process aimed at generating high scoring bids. The bids beat two global competitors, both well established in the Danish public transport market.
Very high-speed trains for HS2
Strategic Lines supported a Hitachi Bombardier JV providing leadership services on a bid for 54 x (360kph) train sets for High Speed 2 (HS2). It included managing the creation of a brand-new design compliant with demanding HS2 technical specifications; a 35-year life-cycle cost modelling; and costing a fixed-price12-year maintenance contract. Reporting to the JV Board, the role required leadership of a core Birmingham based JV bid team of secondees and consultants. An even bigger team provided indirect international support from the two partner firms. A key criterion for success was rapidly creating a single, cohesive and motivated bidding machine from different, diverse and geographically dispersed corporate entities.
West Coast Partnership franchise bid
We provided the Bid Director for MTR’s bid for the West Coast Partnership, one of the largest ever franchising opportunities. It combined the takeover and running of the West Coast Main Line (the 2nd biggest UK commercial franchise c£1bn pa), with the future operations of HS2, the UK’s 2nd High Speed Rail link. The bid also included a requirement to bid for the HS2 Shadow Operator whilst the line is being built, working very closely with HS2 supporting and overseeing the design, procurement, delivery and commissioning, of the systems, trains, track and stations. The bid included European and International partners, and a large bid team with more than 20 advisory firms including EY, Deloitte, LEK, SDG and WSP.
UK market study for European bank
Strategic Lines were employed by German regional savings bank, HSH Nordbank to carry out a comprehensive analytical study into the UK rail transport finance market in order to support and confirm key strategic decisions. It covered mainline passenger and freight, metros and urban light rail and tramways and included the development of a database of UK transport projects and opportunities, selective joint interviews with leading transport players and a high level ‘strategic fit’ analysis.
UK Rail Power Projects
Strategic Lines provided management services for three Siemens’ projects for London Underground, Cross Rail and the East Coast Main Line. All three involved integrated Joint Venture bidding with Civils’ firms for major railway power supply and electrification schemes and upgrade programmes valued at £50-250m. We had overall responsibility for the development and delivery of the proposal win strategy, narrative themes, client engagement management, bid leadership and the building and management of project bid teams of 12-20 staff.
Diligence on an LRT system in Kazakhstan
Strategic Lines were contracted to PKF International – a UK based accountancy and management practice who were providing advice to an international investor on a mixed development combining transport, real estate and leisure facilities. Our role was to advise on the feasibility of the proposed urban transport project – reviewing the route, the technology, the ‘fit’ with existing construction initiatives, the capital costs, forecast demand levels and the procurement methodology. It included an extensive site visit, testing of the project business case and key sensitivities and an initial report and review with sponsors and key stakeholders. We were invited to undertake a second evaluation of subsequent route alignments and technology options.
Interim Technical Director
We provided an interim Technical Director role for the public sector on the Nadzemny Express (LRT) project in St Petersburg, Russia. It required the management of several critical work streams in preparation for the commencement of an international PPP tender. It involved the development of a suite of technical specifications, key performance criteria and linked commercial penalty regime for the Invitation to Tender. This role led to being strategic adviser to Government’s Project Director and the management of technical advisers, legal counsel and financial experts from the World Bank.
Global market study for tram rail
To underpin an investment decision for expanding one of Corus Rail’s factories in France, we carried out a comprehensive review of future global demand, sectors and trends; reviewed buying habits of their clients; then analysed the data to enable a series of strategic conclusions for the top management team. It involved a market analysis and generation of a worldwide demand data base and sector-based projections; and technical and commercial feedback interviews with a broad portfolio of client parties and influencers in key markets and sectors; The UK team were supported by associates working in Italy, Spain, Germany, USA, Central and Eastern Europe.
Life-cycle cost analysis for Midland Metro fleet
We carried out an analysis to enable strategic decisions to be made in respect of options for the existing 16 car fleet – built by Ansaldo under a finance lease. The key question to be addressed was whether to simply augment the existing fleet with a new vehicle fleet for the two extensions, or to replace the fleet entirely with a single new common fleet. We developed a life-cycle net present value (NPV) cost model which analysed which option represented the best value for Centro. In addition to the model creation, it involved ascertaining input data from a variety of sources, including maintenance costs, lease termination values and risks. We carried out sensitivity tests and presented the findings which eventually led to the fleet replacement.
PPP Seminars in China
We developed original material for a comprehensive series of rail PPP/ liberalisation seminars. We then delivered the seminars in three Chinese cities considering expansion programmes for their metros. They covered PPP basics and structures; PPP procurement models; project finance; commercial issues and procurement processes; alternative funding; and project and technology considerations. Material was also used for training and orientation of UK and overseas clients.
1st class business case
At the time of franchise award there was an aspiration for Arriva to provide a first-class service on certain routes within the franchise, however, it was not clear whether these routes had a sustainable business case. Strategic Lines were invited to develop and test a high-level business case for the introduction of a Premier Class service on selected routes.
Strategic Lines worked with associate Schoenemann Design who carried out interior design work on the vehicles and developed capital cost estimates. A bespoke financial model was created which forecast costs, passenger demand and revenues. A business case was produced and used for an investment decision by Arriva and their client.