Interview with Andrey A. Andreyev, General Director of JSC Transmashholding
For Transmashholding (TMH), one of the first seven large rolling stock manufacturers in the world (in terms of sales), the last period has meant the launch of several vehicles dedicated to freight and passenger transport. Based on international standards, TMH manufactures vehicles that meet the companies’ latest requirements whose tendencies include modern technological solutions which determine cost-efficiency, rolling stock reliability and staff reduction, as well as the reduction of maintenance and repair costs.
To meet new requirements, TMH invests in research and development: over the past years, the amount have stood at around USD 1 Billion. By 2018, the company will allocate over USD 780 Million to this segment.
The company’s strategy is focused on innovation and it plans to manufacture new modern vehicles each year.
To find out more about the company’s development, the extension of its activity to other markets, the challenges it faces regarding the different requirements of each country or market and what it means for TMH to allocate funds to innovative projects, we have asked Mr. Andrey A. Andreyev, General Director of JSC Transmashholding, to give us further details in the interview below.
In 2013, Transmashholding had an increase in revenues. Which of your Company’s segments was determinative for this increase and what market (geographical area) represented the biggest share in this revenue growth?
Andrey A. Andreyev: Transmashholding revenue growth in 2013 amounted to 17.5%. The Company sales turnover reached RUR 154 bln thus securing its position among Top Seven world’s manufacturers in terms of sales. The railway market of Russia remains significant and of the first priority for the Company; besides, geographical extension and enhancement of other consumers’ role happens daily both within and beyond CIS countries.
What does this growth mean for Transmashholding and what is the Company’s strategy on entry into markets, access to which becomes more complicated?
Andrey A. Andreyev: The main Transmashholding’s strategy is turning it into “factory of innovations”, setting stage for us to elaborate new high-tech products every year. A special attention is paid in this regard to the maximum compliance of produced prototypes with the needs of existing and potential customers. Basic platforms developed at our sites over the last few years enable us to achieve desired results at minimum cost.
Transmashholding is one of the largest rolling stock manufacturers in Russia. What is the corporate strategy in regard to products and coverage area?
Andrey A. Andreyev: Our overriding priority remains to supply our key partners such as Russian Railways, Federal Passenger Company and Moscow Metro with state-of-the-art vehicles.
A high emphasis is placed on activities in foreign markets. In recent years, the Holding executed significant contracts in markets of Serbia, Bulgaria, Lithuania, and Mongolia. The number of countries supplied with some products of our plants amounts up to several dozens.
What are the most important requirements to the rolling stock set up by customer-operators in terms of improving their performance? What difficulties do they encounter in the course of selection of vehicle suppliers?
Andrey A. Andreyev: We can see a recent tendency that customers prefer high-technology solutions providing for cost efficiency and reliability in rolling stock operation, a drastic reduction of labour, maintenance and repair costs. In the passenger segment, a particular focus is on comfort enhancement and specially on facilitating trips for passengers with children and disabled people.
Transmashholding presents annually a number of new product prototypes elaborated according to advanced requirements. For instance, we came up with a DMU with separate power packs. Each power pack contains traction equipment including a diesel engine. The use of a separate power pack allows to reduce noise and vibration levels as compared with traditional layouts, which presupposes the use of underfloor space as the power pack has to rest against a dedicated bogy. Due to easy access to engine, generator, cooling system components and other assemblies, the labor intensity of maintenance and repair works is diminished.
A big break was elaboration of double-deck passenger cars. We produce the full product line of this rolling stock for long-distance traffic: compartment cars, two-berth sleepers, administrative and dining cars. Efforts are underway to produce double-deck coaches with seats. I am referring to three models. Development of two types of coaches with seats as well as of a very interesting administrative car is in progress. In the first tier, there are rooms for the train crew, and in the second tier – a cafeteria and a big children’s playground.
A couple of new shunting diesel locomotives of new designs have been manufactured.For instance, there is a diesel locomotive with a double-engine power module – TEM33. Its main design feature is the use of two diesel engines of small input, able to be operated both separately and jointly. Such technical solution allows to control the locomotive power in a flexible way thus preventing the waste of fuel at idle speed, and to maximize the engine life.
TEM35, a diesel locomotive with hybrid power equipment was developed, in which electrochemical capacitors were integrated along with a diesel-generator set. While the locomotive goes, the energy is transmitted from the diesel-generator set to asynchronous motors and capacitors, and in brake application, the energy is partly transferred to storage capacitors. Accumulated energy is used to keep the locomotive in “hot position” when idle, and to extend the engine life. If necessary, the locomotive is capable of working with energy from super-capacitors while the engine is switched off.
For the first time in Russia, the Holding’s experts created a locomotive with a gas reciprocating engine, which uses liquefied natural gas (LNG) as fuel: TEM19. The locomotive exterior is distinguished by the cryogenic reservoir filled with LNG, and the gas conditioning system. They applied antifreeze mixture as cooling agent in the cooling system of the gas reciprocating engine.Forms of cooperation between suppliers and end-users are in process of change. Contracts are concluded providing for the manufacturer’s responsibility for rolling stock operation through the all life cycles, from putting into operation to the final disposal. Transmashholding already has experience of such cooperation with RZD and Moscow Metro; we expect that this practice will expand.
What difficulties (challenge) has Transmashholding to face in the context of requirement variances in different countries/markets (Europa, Russia, Central Asia etc.)? In which way do you resolve issues associated with the need for refurbishment of the Russian railway sector?
Andrey A. Andreyev: Our capabilities, both intellectual and technical, allow us to elaborate equipment compliant with the most unusual requests and state-of-the-art technical progress.
We possess experience of operation in European and Asian markets. Several years ago, the Holding developed a DMU destined for operation on 1435 mm tracks, which is of narrower type as applied in CIS countries. At present, such DMUs carry passengers in Serbia. There is an interest in these trains in other countries as well.
In cooperation with Siemens, the Holding developed new RIC-cars designed for international passenger traffic. The design provides for a possibility to apply two different bogies (for the Russian and the European track gauge) and for power supply standards concurrently. This permits to carry passengers virtually throughout Europe conveniently and with comfort. Previously, this kind of cars used to be imported from the East Germany.
Recently, lots of freight and shunting locomotives were manufactured for Mongolia; they demonstrate good operation under conditions of high dust content and extremely high temperatures.
In short-term view? There is a plan for mastering a new EMU platform with asynchronous traction drive. The first urban EMUs named ‘Ivolga’ (Russian for Oriole bird) will be built as late as this year. Then a complete EMU line will appear including products designed for speeds up to 160 and even 250 km/h.
What problems does the Russian railway industry face?
Andrey A. Andreyev: It would be more correct to speak not about problems but goals we set for ourselves.
The main goal is to improve our own operational efficiency. This is precisely why we pay so much attention to the deployment of new approaches to work management both at the level of certain plants and at the Holding’s level. For example, we’ve deployed the Lean production, management system, and quality management, as well as corporate centres of competences have been set up to develop and manufacture key components of the rolling stock, production sites have been certified according to international standards. Work is in progress to establish a common centre for innovative development, which is going to be located in the Skolkovo, the Russian National Innovation Center. Transmashholding cooperates actively with foreign rolling stock manufacturers. Our key technology partner and shareholder is one of the world’s leaders in transport mechanic engineering: the French Alstom Group.
All of this let us maintain competitive ability in the global market and feel certain for tomorrow.
What is your opinion on railway sector development, including in light of rolling stock deliveries to markets of the Central and East Europe as well as Central Asia? What are the key elements determining differences in requirements of various operators?
Andrey A. Andreyev: Governments of the most countries with receptive rolling stock markets seek to generate value to the maximum within the own territory and to withdraw from simple import. We respect this position. In cooperation with Alstom and the national railway operator of Kazakhstan, Transmashholding implements a project on establishment of an electric locomotive building facility in Astana; we own a share in diesel-locomotive assembly site in Kazakhstan. Also, the Holding is the owner of the biggest locomotive producer of Ukraine – Luganskteplovoz.
Together with Vilnius Locomotive Repair Depot, we implemented a project on developing a shunting module diesel locomotive TEM TMH. Locomotives of this class operate in Lithuania, Estonia and in Russia nowadays.
Talks on cooperation of similar form are held in other countries as well.
French Alstom owns a share interest in Transmashholding. Which effect has the partnership with a European company had on your company business?
Andrey A. Andreyev: Transmashholding highly appreciates the relationships with Alstom. The partnership meant for the company the significant enhancement of its capability to offer state-of-the-art technologies. We’ve become first in Russia to use asynchronous traction drive in a locomotive.
A dual voltage passenger locomotive of EP20 class has also become a pioneer product of this type in the Russian market. EP20 locomotives may carry the trains on the lines having both ac and dc overhead power supply without changing the locomotives, thus reducing labour costs and train travel time. If compared with production locomotive series, this locomotive design features improved power consumption and extended runs between maintenance events. According to the contract signed with Russian Railways, 200 EP20s will be delivered to the customer until 2020. More than forty locomotives already carry passenger trains.
The company has also certified its mainline 2ES5 class freight ac locomotive with asynchronous traction motors. The locomotive is designed to carry heavy trains on the line sections having complex profile. RZD will receive 200 2ES5 class locomotives over seven years to come.
Furthermore, TRTrans company, a joint engineering centre established in Russia, where local and foreign engineers work together, has become a good school for Russian product engineers. The company has launched the production of modern electrical equipment for electric locomotives. And a new business for TMH – the tram manufacturing facilities, – is under construction. Alstom experience in the development of very high speed trains is of special interest. This type rolling stock has never been produced in Russia. TMH intends to participate in a tender for rolling stock supply for future local VHS lines and to set the production facilities with the help of its French partner at a plant in Russia.
Transmashholding has an increased focus on the investments into R&D and products development. In this context, what are the investments your company has already made, and what are your plans for the next 5 years?
Andrey A. Andreyev: The investments into the company development have exceeded RUR 33 bln. (about USD 1 bln.) over the past few years. Moreover, the company is planning to invest about RUR 30 bln (over USD 781 m) into various projects until 2018.
by Pamela Luică
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