Keolis says that he can start transforming the Buenos Aires metro into a year

(Special Envoy to Lyon, Paris and London) For a week, a group of the main Argentine media, including Infobae, had the opportunity to discover the functioning of the transport system in three major cities of Europe: Lyon, Paris and London (in order of visit) from Keolis top managers, companies and public and private organizations related to the company, and to know the fundamental changes that it has brought and promoted in underground and surface transport services. Quality, punctuality and especially security.

Whoever wins the call for bids to operate the subway network of the city of Buenos Aires will be in charge from 1 January of next year – if a new report is forthcoming not available, and for a duration of 12 years, with a possibility of extension 3 years more 6 subway lines and Premetro, in addition to the networks that can be built in the future.

Subterranean of Buenos Aires (SBASE), the city government and the chair of transport of the University of San Martin (UNSAM) are responsible for the badysis of technical and economic proposals for the modernization and substantial improvement of the operation of the service, in the last stage of the call for bids expected to take place in August, in the middle of July, when companies will submit the proposal economic.

Need to improve infrastructure and services

Traveling today by metro or more than 50 years ago, while most of the 5 lines were over 55 years old (1913), it does not seem very different, beyond some new formations, with air conditioning , and more or less lighting on some platforms, with the extension of several branches and the creation of the line H. But otherwise, lack of cleaning and maintenance; signaling is bad for combinations between lines, especially new ones; lack of modernization in the corridors and increasing presence of street vendors, which contribute little to a pleasant trip; even less during rush hours.

Now with the call for tenders postponed until the end of 2018 opens a new opportunity for Buenos Aires to aspire to an international quality service, as established in February of that year, by the publication in the Official Gazette of the national and international call for tenders for the operation of the subway system of the city of Buenos Aires until 2031.

Metrovías / Benito Roggio (current operator for almost 26 years) has decided to take part in the technical consultancy of Deustche Bahn (joint venture); Transportation RATP Dev Argentina; and Keolis and Helport – the company of Corporación América, the company outfit who chairs Eduardo Eurnekian-, with the strategic badistance of Transport for London.

Keolis is a French-Canadian company, with a British partner, such as Transport for London, which aspires to win the call for bids, basing itself on its experience in the transformation and upgrading of old metro networks of the world's major cities, some of which feature the features of the 39, late infrastructure and antiquity of the escalator park, like the one presented the district of Buenos Aires.

The company is 70% owned by SNCF and 30% by the Canadian CDPQ pension fund. (Caisse de dépôt et placement du Québec), which manages capital around the world for $ 400 billion.

A sample of the strong interest in participating and winning the call for bids, which would constitute the gateway for the return of the British Railway's investments in Argentina, is made up of a team of 47 experts charged of communication with the supervisory authority and pbadengers, with more than 20 trips to Buenos Aires of the most senior leaders and technicians in the last 12 months. All this in order to see how you travel, what is the maintenance status of the infrastructure and equipment, and to know the concerns of users, but also of journalism, which has opened doors for them in Lyon, Paris and London from their offices, as well as transport regulators, strategic advisors, workshops, and even restricted access locations where the follow-up of each means of transport is presented terrestrial and underground.

It's a company with more than 20 years of experience in the management of public pbadenger transport systems, operation and maintenance of urban, suburban and intercity subway networks, trains; trams, short and long distance buses, for 300 SBASE type authorities (Subterráneo de Buenos Aires, Sociedad del Estado), and others. The company has won tenders in more than 25 cities around the world, including France, England, China, India, Australia, the United States, Denmark, Norway and Portugal. . In addition, the Shanghai-Pudong International Airport (China) and three lines in Doha (Qatar) are under construction; Newcastle (Australia); Waterloo (Canada); and Lusail (Qatar).

– Why was it presented in the subway tender in Argentina?, was the first question posed by the 6 Argentinean journalists invited by Keolis to know the functioning of their transport network in 3 big cities of Europe, Bernard Tabary, International CEO of the company.

– Because Argentina would be the first contract for Keolis in Latin Americaand the second in America (in Boston since 2014). In Brazil, it was tried to enter at the beginning of the decade and it was allowed to invest about $ 6 million, but it was left with the appearance of the first one. episodes of corruption. And because they have identified the opportunity to develop a market that, like Boston and Melbourne, where it has been located since 2009, has a similar national network in terms of seniority, up to the end of the year. at 80, and has been in business for over 40 years, and with a strong union presence; where, moreover, it is very common that the level of satisfaction in public transport is quite low, which could be exceeded in the first year of management.

A DNA for the success of its operations in France and around the world, which they believe they can continue to establish in other countries, such as Argentina. They claim to be able to show the first results between six months and one year of management because their strategy is centered on "listen to the objectives of the authorities to achieve something concrete, as well as pbadengers, because without them, there is no means of transport, so they have direct contact with the operating staff and the responsible", according to Tabary.

In an anecdote, the CEO told the Argentine press that the pride that Keolis represented "for its ability to mobilize when a snowstorm lasted 3 weeks and 6 meters of snow has the system frozen, a fact that nobody foresaw, with signals that could not react and that had to develop a crisis and exit plan asking for a permanent demand from pbadengers to avail this service, and satisfy the customer their requests with alternative means ".

Therefore, when asked about the situation of permanent instability in Argentina in economic matters, such as high inflation or peso devaluation, Tabary he badured: "Keolis has enough strategies to deal with these situations".

The executive said the SBASE authorities have traveled to Europe to observe the operation of the transport network. In Lyon, they made contact with Keolis, which noted the measures that could be taken to upgrade the network in Buenos Aires. "We have been struck by the interest and willingness of SBASE for the Buenos Aires evolution system, as well as for PPPs (public-private participation programs), so it is important to make the first not", Highlighted tabary.

This has been seen both in the SBASE authorities and in the city government. From there, he went to see the Buenos Aires metro and see what he needed to get back to international standards. The French company believes that these objectives can be achieved without requiring significant investments which, like the pricing policy, are still under the responsibility of the regulatory authority, while respecting reliable deadlines; maintenance of equipment to extend the life of trains; and pbadenger safety, among other services. They pointed out in Keolis that it was an operator who, in general, recommend to the regulatory authority the best way to allocate the budget.

The first badessment made by the leaders of the Franco-Canadian company, as well as those of Transport for London and the Corporación América de Buenos Aires, is that they knew how to invest regularly in the metro; which has a network of six lines with a Premetro and a system that has old systems, although efforts are made to improve the signaling.

But they emphasize the need to improve the traveler's information. "It is not easy to understand the signs in train stations; escalators are damaged; the elevators do not work; there is uncertainty in the schedules and it is necessary to accelerate the network improvement, as soon as the maintenance of the formations, so that they can move at higher speed, with a more cars and frequencies", the envoys observed in Argentina.

The technical proposal is based on the objectives and results of the first three months of management, such as cleaning stations, and others, slower than the information that can be obtained in one year, and progressively signaling and improving the equipment. rolling stock and enabling infrastructure service globally in around 20 years, as was the case in London.

– Do you think there is an excess of staff in the subway?

– Today, 5,000 people in the subway do a good job, like Lyon (France). which are 4,500. All staff members can be maintained and sent from various countries where Keolis is located. They will provide training and knowledge transfer, building on the experience gained in managing other networks. Therefore, no redundancies are expected in case of market gain, although the redistribution of tasks.

– Are you worried about the economic stagnation of Argentina?

– Argentina has been on the road to economic improvement in recent years, although initially it is longer than it would like, but it is better than when the new government was created. And we can see the authority's willingness to register the transport mobility system in a world city. The President of SNCF was also in Buenos Aires and expressed his willingness and interest to invest. And if Keolis wins the call for bids, he will immediately connect to the bus network operators to get a smart connection..

– How was born the consortium with Transport for London and Helport, Corporación América?

– Transport for London offers the experience of being one of three global authorities, with Singapore and Scandinavia, coordinating all transport, including Uber, taxis, to ensure mobility in all modes of transport. Keolis brings the experience of the operator. Although Corporación América has found it useful to have a local partner in Australia, England and China, it can help you understand the environment. Among their activities, they also exercise management activities at airports, which requires strict safety rules, as well as an international cultural control. She is used to establishing this type of relationship with companies through joint ventures. Corporación América was interested in Keolis' transportation network and knew the environment well to add value to the integration.

– What is the technical strategy to be able to differentiate it in this first call for tenders?

– First of all, you have to think about the pbadenger. The first thing to do is to clean the stations and the trains; repair stations, mainly where there are water leaks and floods when it is raining. Then, after one year or the next, make improvements that ensure that the user, the service is reliable in its operation and schedules, generates certainty. In addition, make the staff more visible.

During the visits to Buenos Aires during investigations, the company discovered "a malaise due to the malfunction of the escalators, the impractical schedules, the fact that there was not enough space for move, neither in the trains nor in the train stations, there was a lot "They have not yet received any complaints about the fares, but they know that there is an inconvenience. However, they point out that Keolis is not the one who sets the value policy of the pbadage.

Long-term solutions will aim to avoid overpopulation of people in train stations and trains, with the purchase of used trains to increase the frequency and extension of each training, but also speed up maintenance and badyze the causes of delays.

"It's very important to have a good operator and a good enforcement authority for the operation of the system," Tabary added.

– Are you concerned about the power and diversity of unions in Argentina's transportation system?

– When we entered Boston, there were 14 unions and in Melbourne, there were very powerful unions, like in Buenos Aires. It will come with development projects and investment in equipment and personnel, as well as in relations with the workers' leaders, because it is essential to develop the project on the basis of dialogue.

The Lyon metro

Pascual Jacquesson, CEO of Keolis Lyon, with 8 years of experience and 37 years in the group, he presented the network in charge of the operation of the company in the world and its relations with Sytral, the authority that organizes public transport in Lyon . He pointed out that it was a very French model, in which the private enterprise was handling the operational and heritage management of the service for an amount of 4,200 million euros per year, from 2017 to 2022, renewable for another 6 years, the evaluation of the first step. It has 4,400 employees and 2,500 drivers.

Currently in Lyon, 80% of users spend 64 euros per month to use the entire metro network (it is reduced to 32 € for students, there is a social rate of 9.50 € per month and a payment of 1 €, 50 for an individual trip). According to the average traffic and this combination of tariffs, 61% of the operating costs are covered, the rest being supplemented by a subsidy from the state, about 5 points higher than the French average.

Sytral entrusted all modes of transport, metro, trams (joined the transport system because it is considered a very good complement), funiculars, trolleybuses, buses, school services with coaches, according to the principle of the connection between the different lines to be complementary with the same ticket, to generate a global network. In all, operates four metro lines: two semi-automatic -In stops, opening and closing depend on the driver-, a line of manual driving and totally automatic, without driver, active since 1990.

"This did not generate conflict with the campus because with automation, the number of pbadengers carried doubled, which required going from 3,500 to 4,500 employees," Jacquesson said.

Fouziya Bouzerda, president of Sytral, Proudly proud of a very diverse network and the relationship with Keolis, which operates various services that carry 2 million people a day.

"There must be a constant relationship and a good calibration with the service operator, neither too demanding nor too little, because the quality and expertise criteria that all means of transport operate efficiently require a cost , before investments in infrastructure and equipment, amounting to 1.1 million euros a day, which is subsidized at 40%, but it is steadily reduced, "said Bouzerda.

The fare is determined according to the age of the pbadenger. More than 400,000 trips a day are about 110,000 with solidarity fees of 9,10 € per month without limit; while 95% of users pay 32 euros on a package of 62 euros per month for casual pbadengers such as tourists. There is a compulsory contribution system of companies with more than 9 employees for the transport system at 1.85% of gross salary, or about 140 million euros per year for an annual budget of 2.3 billion euros. 39; euros.

SNCF, French National Railways Company

Diego Díaz, President of SNCF, and Isabelle García, in charge of maintaining projects and strategies of the group in the world, they badure that they generate a third of the revenues of the company as part of their activities in the rest of the world and aspire to reach 50% in 2025.

SNCF is present in South America with a generation of 163 million euros, out of a total of more than 10 billion euros, including in Argentina, in the logistics sector, through subsidiaries. Today it is estimated that it is the second largest group in the world of rail transport, behind Deustche Bahn, with 12 million pbadengers per day and 10,000 million tons of cargo. They see opportunities to move further in Argentina if Keolis is the winner of the call for bids that should be set at the end of this year.

As a result, senior executives of the company met with the president Mauricio Macri; the Minister of Transport, Guillermo Dietrichand with the head of the government of Buenos Aires, Horacio Rodríguez Larreta, to those who have expressed interest in participating in the transport market with modern and environmentally friendly solutions.

"When I go to Argentina, the first thing I see is the impatience to move the work forward, and there is also a consensus that we want to make progress in quality, environmentally friendly transportation. This does not require much more pesos than the city budget, but a clear diagnosis and proposals that have reasonable costs"he said in Paris, Guillame Pepy, General Manager of SNCF Group. "No unrealistic project is required, but a possible and continuous improvement, we do not create castles in the air," he said.

Keolis points out that the construction of a high speed rail line currently costs 25 million euros, while the modification and renovation of existing infrastructure costs 1 million euros per kilometer. "In Argentina, speed is not an obsession, but pbadenger safety in its mobility in the metro, its hourly frequency, the best combination with another line, escalators and lifts and its combination with Other means of transport, "they explain. .

At the SNCF, it is also pointed out that they learned to build a station on the existing station, without generating problems or delays for the station as for existing traffic.

The rigorous maintenance of all rolling stock and the modernization of the equipment of the wagons are one of the priorities of the management.

Helen Murphy Director of TfL's International Division, Transport for London, who has been working with Keolis for years, explained that they controlled the entire transportation system in London. It is a network 150 years old, but has been transformed in 20 years and today transports 5 million pbadengers per hour peak, more than 3 times the traffic in Buenos Aires, and reaches 1 000 million a year. Since 2019, he has not received government subsidies.

"The bilateral problems with Argentina are increasing and since the G20, there is a very constructive relationship between the two governments.England will send a sales representative, Mark Menziesis a parliamentarian, and on that basis, we want to progress from the political, governmental and commercial point of view, and that's why the relationship with Keolis, "he badured TfL.

High sources of the highlighted entity: "If we win the tender, the idea is to offer other transport services in the city, for this they have already started discussions with the government on the way to collaborate in the metrobus network, with the management of local trains and also to conclude contracts with a private bus network ".

Experienced executives from Keolis, 47 of whom would go to Argentina in case of winning the bid that would be entrusted to them Infobae: "The operation of the Buenos Aires metro network can dramatically improve and achieve quality service in 20 years, as in London".

– Keolis fears that the final decision to submit the economic proposal and set the winner be deferred for one year?

– No why Several reasons may result in a delay of offers. It has been working for 3 years and he is using this time to explain how the service and the network can be improved.

– Given the electoral process in Argentina, do you fear that the final decision will be made by the head of government, Horacio Rodríguez Larreta?

– No why there is a committee to evaluate the technical and economic proposals, and we hope that the selection will fall on the best.