Date:12/03/2007 URL: http://www.thehindubusinessline.com/2007/03/12/stories/2007031201150600.htm

Back Global metro rail market to grow at 2.7 per cent

Mamuni Das

The global metro rail market, valued at Euro 6.3 billion worldwide, is expected to grow at 2.7 per cent over the ten-year period 2005-15. Fuelling the market will be the most populous cities, with their need for cheaper and environmentally cleaner transportation modes.

At the global level, 560 cities are expected to have a population of over one million by 2015. "Asia, which would account for 300 such cities, apart from Latin America and Eastern Europe, is likely be the area that will witness higher demands," said Mr Hubert de Blay, Representation and Compliance Director, Alstom Transport.

Alstom is the world's second largest supplier of urban rail transport equipment, with about 20 per cent of the market. Bombardier leads with a 26 per cent share, while Siemens has 13 per cent of the market and Kawasaki, ten per cent.

The metro market in Asia-Pacific region is likely to grow at 6.8 per cent on an annual basis between 2005 and 2015.

However, demand for metros is likely to go down by 2.6 per cent (or a growth of minus 2.5 per cent) per year in Western Europe during the period, which now accounts for the highest share (30 per cent) of metro fleets worldwide.

REGIONAL GROWTH RATES

Apart from growth in the Asia-Pacific region, other regions that would experience higher growth rates in the 2005-15 period include Eastern Europe (9.5 per cent), South America (10.7 per cent), Africa and West Asia (5.2 per cent), North America (3.8 per cent), CIS countries (3.8 per cent).

Talking about the trend in metro cities, he said that of 115 cities that already have urban rail transport systems, about a third are planning to extend them in the next five years.

According to Mr Philippe Mellier, President, Alstom Transport: "India is an important market for us. Indications are that that the future cities adopting mass rapid transit systems would have standard gauge, which is good news for us. And the country being democratic is an important factor as well."

Incidentally, Delhi Metro has a broad gauge track and thus requires broad gauge compliant rolling stock, whereas the majority of metro systems worldwide have standard gauges.

Meanwhile, in the Chinese market, where Alstom has entered into five technology transfer agreements and five joint ventures to make metro vehicles and signalling systems, amongst others, Mr Mellier said: "Alstom sees relatively less opportunity in the future as China appears to be keen on promoting local technology."