norway high speed rail michael hayes project director contract 5: market analysis

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Norway High Speed Rail Michael Hayes Project Director Contract 5: Market Analysis

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Page 1: Norway High Speed Rail Michael Hayes Project Director Contract 5: Market Analysis

Norway High Speed Rail

Michael HayesProject Director

Contract 5: Market Analysis

Page 2: Norway High Speed Rail Michael Hayes Project Director Contract 5: Market Analysis

Phase 2: Market Analysis

1. What is the potential market for HSR?

2. How many people would use HSR (and how much revenue) for different options?

3. Where should stations be situated and what facilities should they have?

4. How much freight could use the line?

Using experience from across Europe

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Page 3: Norway High Speed Rail Michael Hayes Project Director Contract 5: Market Analysis

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1. Potential Market for High Speed Rail

Analysis to understand potential market:

● Existing air, road and rail markets

● Improving access to tourist destinations?

● Better access to Gardermoen Airport?

Compare with international experience

Page 4: Norway High Speed Rail Michael Hayes Project Director Contract 5: Market Analysis

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1. Potential Market for High Speed Rail

Oslo – Stavanger Air: 1.2m pass/yrRail: 0.3m pass/yrRoad: 1m trips/yr

Oslo – Kristiansand Air: 0.5m pass/yrRail: 0.4m pass/yrRoad: 2.6m trips/yr

Page 5: Norway High Speed Rail Michael Hayes Project Director Contract 5: Market Analysis

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1. Potential Market for High Speed Rail

Oslo – Bergen Air: 1.5m pass/yrRail: 0.6m pass/yrRoad: 1.3m trips/yr

Page 6: Norway High Speed Rail Michael Hayes Project Director Contract 5: Market Analysis

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1. Potential Market for High Speed Rail

Oslo – Trondheim Air: 1.5m pass/yrRail: 0.4m pass/yrRoad: 1.4m trips/yr

Oslo – Stockholm:Air dominant (0.7m pass/yr)

Oslo – Gothenburg:Road dominant (waiting data)

Page 7: Norway High Speed Rail Michael Hayes Project Director Contract 5: Market Analysis

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1. Potential Market for High Speed Rail

European experience:

● HSR captures air markets well, road markets less so.

Route Distance (km)

Fastest Journey Time (hr:min)

Rail Service Frequency (per day)

Approximate HSR Market Share

Paris - Marseille 750 3:03 19 65%

London - Paris 495 2:15 16 70%

Cologne - Frankfurt

186 1:02 29 95%

Madrid - Seville 472 2:20 22 80%

Page 8: Norway High Speed Rail Michael Hayes Project Director Contract 5: Market Analysis

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2. Estimating HSR usage

● Assess cost of travelling by each mode

● How do people value different modes?

Page 9: Norway High Speed Rail Michael Hayes Project Director Contract 5: Market Analysis

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2. Estimating HSR usage

Many fundamental questions in forecasting:

● How willing are passengers to pay to save travel time?

● How important are frequency, reliability and station access?

● What impact does group size have on choice of travel?

● Would HSR inherently generate new demand for travel?

Page 10: Norway High Speed Rail Michael Hayes Project Director Contract 5: Market Analysis

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2. Estimating HSR usage

Also need to understand attitudes to HSR:

● Do business travellers value ability to work on trains rather than planes?

● Would amount of tunnels affect leisure market?

● Is reliability an important factor?

● Do people inherently value travelling by HSR more than by plane?

Page 11: Norway High Speed Rail Michael Hayes Project Director Contract 5: Market Analysis

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2. Estimating HSR usage

Market survey exercise being undertaken

● Surveys to understand attitudes for different types of travellers

● Economic analysis to produce forecasting models

● Supplement with sensitivity tests

Page 12: Norway High Speed Rail Michael Hayes Project Director Contract 5: Market Analysis

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3. Station Location and Facilities

Stavanger

Population within 15 minutes

Oslo

Kristiansand

● How many intermediate stations?

● Where should they be?

Page 13: Norway High Speed Rail Michael Hayes Project Director Contract 5: Market Analysis

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3. Station Location and Facilities

● Are the existing stations in the right place?

● What kind of facilities do they require?

Page 14: Norway High Speed Rail Michael Hayes Project Director Contract 5: Market Analysis

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4. Freight

● Is there demand for high speed freight?

Page 15: Norway High Speed Rail Michael Hayes Project Director Contract 5: Market Analysis

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4. Freight

● Could any HSR route carry normal freight trains?

Page 16: Norway High Speed Rail Michael Hayes Project Director Contract 5: Market Analysis

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Michael HayesHead of Rail Planning

Euston Tower, 286 Euston RoadLONDON NW1 3ATUnited Kingdom

Tel: +44 (0) 20 7121 2388Mobile: +44 (0)7857 981 343

Email: [email protected]

www.atkinsglobal.com