Challenges and Opportunities in the

Railway Subsector in Myanmar

Presented by

Myanma Railways

1. Existing Infrastructure

7648.80 4780.50 Total Track Mile Rails 50 lb ANSC

Rails 60 lb BS 5844.03 3652.52 Total Route Mile

Rails 60 lb RBS

Rails 75 lb RBS 700.82 438.01 Double line Route Mile

Rails Wt: 5143.21 3214.51 Single line Route Mile

Km Mile Remarks

Length Item

(a) Track

1.(b) Major Facilities & Equipment

(47.52 km) (Route Kilometre)

29.50 mile Yangon Circular Line (Route Mile)

4132467 P.C Sleeper

6927694 Wooden Sleeper

710 Plant & Machinery

21275 Buildings

11659 Bridges

12 Tunnels

367 (b) Wayside Stations

559 (a) Block Stations

Stations

Number Description

1.(c) Communication & Signalling system

HF/SSB Radio - 42

UHF Radio - 142

VHF - 402

Magneto Telephone - 200

Electronic Private Automatic

Branch Exchange (EPABX) - 24

Fiber Optic Cable - 385 miles

(i)

Yangon Circular line = Automatic Block System

Other Lines = Paper line-clear ticket System

(ii)

2. Motive Power & Rolling Stock

431 424 389 380 365 Grand Total:-

394 387 352 343 328 Total:-

137

135

105

100

100 (b) Diesel Hydraulic

257 252 247 243 228 (a) Diesel Electric

Diesel Locomotive

37 37 37 37 37 Steam Locomotive

2011-12 2010-11 2009-10 2008-09 2007-08

Year Type

(a) Locomotive Fleet

2.(b) Number of passenger coaches

1277 1238 1246 1209 1211 Total:-

87 86 - - - Departmental

22 22 20 17 17 Restaurants

130 110 104 99 102 Brake Vans

14 14 14 14 14 Mail Vans

661 648 663 638 651 Ordinary Class

332 327 329 325 311 Upper Class

2011-12 2010-11 2009-10 2008-09 2007-08 Type

31 31 116 116 116 Others

2.(c) Number of Freight Wagons

3236 3331 3427 3252 3249 Total:-

55 155 134 114 111 Others

55 95 95 95 95 Brake Van

233 233 233 233 233 Tank Wagon

Timber Wagon

514

521

547

547

547

(High Sided)

Open Wagon

398

398

398

398

398

(Low Sided)

633 638 643 575 575 Open Wagon

1225 1312 1377 1290 1290 Covered Wagon

2011-12 2010-11 2009-10 2008-09 2007-08

Year Type

3. Railways Service

Train Type Nos of Train per day

Passenger Trains Express 44 Mail & Others 72 Mixed 66 Rail Bus 44 ----- Total 226 ----- Suburban Trains

Yangon

200

Fr eight Trains 2 9 ------------------------------------------------- Total Trains 455

-------------------------------------------------

(2011-2012)

( 0.1 million passengers traveled per day )

4. Performance (Traffic Volume)

31.428 33.287 33.376 33.489 33.784 Passenger Mile

64.352 67.650 71.602 73.561 75.959 Total

33.106 33.548 37.861 38.974 39.228 Suburban

31.246 34.102 33.741 34.587 36.731 Main

No. of Passenger

2011-12 2010-11 2009-10 2008-09 2007-08

Year Classification

Passenger and Freight Traffic

(Million)

Ton Carried

Ton Mile

2.93 2.95 3.33 3.41 3.58

53.54 56.99 65.83 69.78 72.27

5. Financial Statement( Operating Ratio)

(Kyats in million)

Actual Classification

- - - - - Tax

(with interest) - Operating Ratio.

(without interest) 133.77% 199.98% 195.51% 187.06% - Operating Ratio.

68271.87 66382.96 58895.97 52618.36 Total Expenses

37.92 61.66

(25.22)

36.61

(5.41)

26.50

(8.85)

Profit & Loss on

foreign Exchange.

- - - - - Interest.

68223.95 66346.52 58864.77 52600.71 - Operating expenses

EXPENSES

51008.00 33164.62 30104.88 28114.96 Total Revenue

4817.21 4237.27 2210.64 2104.36 - Others

16734.19 8288.01 7689.97 5468.90 - Goods

29456.60 20639.34 20204.27 20541.15 - Passenger

REVENUE

2011-12 (Prov)

2010-11 2009-10 2008-09

133.85% 200.16% 195.64% 187.15%

Railway Connectivity of Myanmar

with the GMS and Beyond

Railway Lines of International Importance in Myanmar

Existing lines

Mandalay-Yangon = 617 km

Mandalay-Lashio = 313 km

Mandalay-Kalay = 539 km

Bago-Thanbyuzayat = 270 km

Missing lines

Kalay-Tamu = 127.4 km**

Lashio-Rueli = 141.8 km**

Thanbyuzayat-Three Pagoda Pass = 110 km**

** The route lengths of missing lines are

referred from feasibility reports

(a) Indian-Myanmar Rail link (Kalay-Tamu)

* Conducted by RITES Ltd. 2004-2005

* The scope of the study ¤ New rail link (i) Jiribam-Moreh (219 kms) India (ii) Tamu-Kalay (127.4 kms) Myanmar

¤ Rehabilitation of existing line Kalay-Mandalay (513 kms) Myanmar

* The construction cost of the project # Tamu-Kalay 97.68 mil USD. (new line) # Kalay-Mandalay 162 mil USD. (Rehabilitation)

* Freight Demand Forecast 2.48 mil tons in 2027-28

* The Financial Analysis Jiribam-Moreh (-) 1.7% Tamu-Kalay (-) 1.2% Combined (-) 1.3% Under optimistic scenario, FIRR could improve to (-) 0.6%

* Comparison of transport between Yangon & New Delhi

Without Project With Project

Transit time 22 days 9 days

per TEU cost 2000 USD 800 USD

(b) (i)China-Myanmar Rail link (Lashio-Muse-Rueli) * Conducted by 2nd Railway Survey and Design Institute, 2005.

* The scope of the study A metre-gauge railway line Lashio-Muse-Rueli (141.88 km) (Change of Gauge)

* Route Description 32.93 km (60 major and medium bridge) 23% 52.37 km (51 tunnels) 37% 56.58 km Rolling 40%

* The investment cost 479.47 mil USD (RMB 3598 mil Yuan)

* Demand Forecast in 2030 Total Trade Total Transport Volume Volume

Myanmar-China 8.9 mil (USD) 10.3mil tons Myanmar-Southwest 5.2 mil (USD) 6.28mil tons

China Sino-Myanmar Railway Freight Volume 4.5 mil tons

* Financial & Economic Evaluation # FIRR < 0 # Repayment period of investment > 25 yrs. (RMB 0.10/person-km, RMB 0.10/ton-km)

If the calculation scope extends to Mandalay # FIRR = 0.57 % # Repayment period of investment = 24.61 yrs. # EIRR = 10.87

(b). (ii)China-Myanmar Rail link (Muse – Lashio – Kyaukpyu)

Ruili/Muse - Kyaukpyu railway start from

ruili east railway station, goes to Muse at the

border, terminates at Kyaukpyu Port via. Lashio,

Mandalay & Magway. The total length of the

railway line is 868.262km.

China Railway Engineering Corporation

(CREC) submitted Feasibility Study Report on

2012. Myanma Railways had submitted that report

to Ministry of Rail Transportation and at the same

time, submitted to the government of Shan State,

Mandalay Region, Magway Region and Rakhin

State, where the Rail line will passes through so

the they can review them and made comments

regarding to compensations, relocation work, and

all other that are involved with the local

communities and the government concerned.

Main Technical Standards of China - Myanmar Rail link

Item Standard

Railway Classification Class I

Track gauge (mm) 1435

Number of main line Single track

Controlling gradient (% ) 12, pusher grade 24

Minimum radius of curve(m) 800

Design running speed of passenger

train (km/h)

120; for some section, adaptability to 160 will be reserved

for plane and profile

Traction type Electricity (diesel asmakeshift )

Type of Locomotive Six axles electric locomotive

(six-axle diesel locomotive for makeshift stage)

Traction Tonnage(t) Preliminary stage 1800; near future 3000; far future 4000

Effect length of arriving and departure

track (m)

650, with adaptability to 850(880 for dual locomotives)

Type of blocking Semi-automatic block

(c). (i)Thailand-Myanmar Rail link (Thanbyuzayat-Three Pagoda Pass)

* Conducted by KOICA 2005-2007

* The scope of the study # Thanbyuzayat-Three Pagoda Pass (110 km)

(Myanmar)

# Three Pagoda Pass-NamTok ( 153 km)

(Thailand)

* The construction cost for Myanmar side

246.171 mil USD.

* Total Traffic Demand Forecast In the case of medium demand scenario; 2017 2027 2037 Freight ton 0.7 mil 3.1 mil 5.7 mil Passenger 0.06mil 0.2 mil 0.5 mil

* Economic Evaluation In the case of the medium demand scenario B/C ratio = 0.74 EIRR= 8.1% < discount rate 12% The project is not viable economically.

Financial Evaluation For the medium scenario, FIRR = 0.4%

(c) (ii)

At present there is an ongoing project for building a deep

seaport and a special Economic Zone at Dawei

(Myanmar). It is a BOT project with Italian Thai as

developer. The project includes road link as well as a rail

link from Kanchanaburi (Thailand) to Dawei deep seaport

(Myanmar). Since Dawei is the end of the Southern

corridor of GMS which passes Ho Chi Minh City, Phnom

Penh and Bangkok. This railway line could be expected to

play a much larger role in the regional transportation

network.

ADB’s Transport Sector Assessment

Railway Subsector Constraints

The focus on constructing new lines having low

economic value and revenue prospects,

Insufficient investment in the core network,

The lack of a modern commercially-oriented financial

management system.

(i)

(ii)

(iii)

Technical & Operational obstacles

(a) Compatibility with technical standards of TAR

5,100 mm 3,810 mm 3,770 mm 3,770 mm Structure gauge

3,950 mm 2,820 mm 3,429 mm 2,590 mm Vehicle gauge

Height Width Height Width

TAR MYANMAR

Comparison of clearance (Vehicle gauge & Structure gauge)

(b) Axle load and other technical standard

Item TAR MR

Target speed Freight 80 km/hr 48 km/hr

Passenger 120 km/hr 68 km/hr

Radius of

Curvature

Rolling 800 m 200 m

Mountainous 150 m

Maximum

Gradients

Rolling 1.00% 1.00%

Mountainous 1.20%-1.25% 4.00%

Track

Structure

Rail section UIC 54 37 kg/m

Sleeper P.C P.C

W.S

Depth ballast 250 mm 120 mm

Axle load 20 ton 12.5 ton

(c) Number of bridges along the railway lines of International Importance

Section

Number of bridges no. of bridges

over headed

truss girder <30 m 30 m subtotal

Yangon-Mandalay 900 61 961 19

Mandalay-Kalay 514 26 540 10

Mandalay-Lashio 713 10 723 -

Bago-Thanbyuzayat 230 28 258 7

Total 2357 125 2482 36

Under 10 years

11 years 20 years

21 years 30 years

31 years 40 years

41 years 50 years

(a) Life condition of Diesel Locomotive in (2011 – 2012)

28% 21%

25% 14% 12%

Over-aged Rolling Stock

Under 10 years

11 years 20 years

21 years 30 years

Over aged

(b) Life condition of Passenger Coaches in (2011 – 2012)

31% 24%

25% 20%

55%

9% 14%

8% 14%

(c) Life condition of Freight Wagons in (2011 – 2012)

Under 10 years

11 years 20 years

21 years 30 years

31 years 40 years

41 years 50 years

Expansion of National Railways Network

(1) Kyangin–Pakkoku 512.00 km

(2) Katha-BaMaw 156.80 km

(3) Dawei-Myeik 212.00 km

(4) Moene-Kyaington 361.60 km

(5) Pyawbwe-Magwe 152.00 km

(6) Minbu-Sittway 411.20 km

(7) Pathein-Yangon 142.40 km

(8) Hinthada-Nyaungdon 76.80 km

(9) Naypyitaw-Pinlong 192.00 km

(10) Myitkyina-Namsan 760.00 km

(11) Monywa-Kalay 216.00 km

(12) Taungoo-Loikaw 240.00 km

(13) Pyay-Taungoo 192.00 km

Total 3624.80 km

Expansion of MR National Network

Myanmar is now changing in political and economic situations very fast. Myanma Railways performs more economically in the organization’s functions so we cease the project of new lines and under construction lines.

Particular 1988/89Up to end of

September,2012

Route - km 3162.16km 5488.03 1 Kyangin - Pakkoku 512.00 km

2 Katha - Bamaw 156.80 km

3 Dawei - Myeik 212.00 km

4 Moene - Kyaingtong 361.60 km

5 Pyawbwe-Magwe 152.00 km

6 Minbu - Sittway 411.20 km

7 Pathein-Yangon 142.40 km

8 Hinthada-Nyaungdon 76.80 km

9 Naypyitaw-Pinlong 192.00 km

10 Myitkyina-Namsan 760.00 km

11 Monywa-Kalay 216.00 km

12 Taungoo-Loikaw 240.00 km

13 Pyay-Taungoo 192.00 km

3624.80 km

Track - km 4470.17km 7648.80km

Sub-total

Under Construction

Opportunities

comprehensive survey and New Line Construction Projects

elimination

postponing

renovation of the project

corporatization

1. National Railways Strategic plan.

2. Track Improvement Project for Yangon- Mandalay line Up Line

and Down Linetotaling 1242 km.

3. Upgrading of Yangon Circular Line 95 miles.

4. Mandaly- Myitkyina track Upgrading Project 552km.

5. Bago- Dawei Track Upgrading Project 507 km.

6. Yangon- Pyi Track Upgrading Project 259 km.

7. Tamu-Kalay-Segyi-Monywa Mandalay Rail Line project.

Further Investment for the core network

8. Thanbyuzayat-Three Pagoda Pass Rail Line Project.

9. Upgrading of three Major Locomotives and Carriage

Maintenance Workshop.

10. Purchasing of 300 Nos. new passenger coaches.

11. Purchasing of 20 Nos. new locomotives.

12. Repowering of 50 Nos. locomotives.

13. Monitoring Goods and Passengers transportation including

Private Sector by IT System.

14. Monitoring Internal and External traffic condition by IT

System.

Sr

No.Project Title

Indicative

Timline

Cost

Estimate

(US$ million)

Remark

1 National Railways Strategic plan 2013 10 ADB Grant

2 Track Improvement Project for Yangon-

Mandalay line Up Line and Down Line

totaling 1242 km

(a) Track 2013-2016 72.56 Japan

ODA Loan

(b) Signalling 2012-2016 10 Japan

ODA Loan

3 Upgrading of Yangon Circualr Line 95 miles

(a) Track 2013-2016 5.55 Japan

ODA Loan

(b) Signalling 2012-2013 1.5 Japan

ODA Loan

INDICATIVE BASELINE INVESTMENT PROGRAM

For Ministry of Rail Transportation

RAIL

TO SUPPORT THE GMS STRATEGIC FRAME WORK (2012-2022)

TRANSPORT

Sr

No.Project Title

Indicative

Timline

Cost

Estimate

(US$ million)

Remark

4 Mandaly-Myitkyina track Upgrading

Project 552 km.

(a) Track 2013-2016 35.57 Japan

ODA Loan

(b) Signalling 2012-2016 25 Japan

ODA Loan

5 Bago-Dawei Track Upgrading Project

507km

2013-2016 29.6 Japan

ODA Loan

6 Yangon-Pyi Track Upgrading Project

259 km.

2013-2016 15.15 Japan

ODA Loan

7 Tamu-Kalay-Segyi-Monywa Mandalay

Rail Line project

2013-2016 168.1 By Indian

Arrangeme8 Thanbyuzayat-Three Pagoda Pass Rail

Line Project

2013-2016 246 Japan

ODA Loan

9 Upgrading of three Major Locomotives

and Carriage Maintenance Workshop

2013-2015 10 Indian Loan

10 Purchasing of 300Nos .new passenger

coaches

2013-2016 85 Korea

EDCF

Loan

11 Purchasing of 20 Nos. new locomotives 2013-2015 32 Indian

Loan

12 Repowering of 50 Nos. locomotives 2013-2016 21 Korea

EDCF

Loan

Sr

No.Project Title

Indicative

Timline

Cost

Estimate

(US$ million)

Remark

13 Monitoring Goods and Passengers

transportation including Private Sector by IT

System

2013-

2014

2014-

TBD

14 Monitoring Internal and External traffic

condition by IT System

2013-

2014

2014-

2015

TBD

IT SYSTEM

Lessons Learnt from the history

1948 - 1972 - Union of Burma Railways (UBR). Board Public Services

Obligation (PSO)

1972 - 1988 - Burma Railway Corporation (BRC) - Commercialization

(but not realized)

- break-even position

1988 - 2012 - Myanma Railways (UBR). Board - 20 times of fuel cost

- 10 times of salaries

- 150 times of exchange rate

( No Vision No Mission No Strategic Plan )

Conclusion

We, Myanma Railways shall actively coordinate and cooperate

with ADB and development partners for the regional

connectivity.

We do believe that we can come back to the prosperous

regional community by the technical and financial assistance of

ADB.