India’s First International Trade Show On TRAFFIC

January 26, 2011

India’s first International integrated traffic show supported by the Ministry of Road Transport and Highways, Government of India and National highway Authority of India.

TrafficInfraTech Expo is organised by Virtual Info Systems Pvt Ltd, publisher of Trafficinfratech magazine in association with Italy’s Fierabolzano Messebozen and Afidamp Servizi srl. The show brings together national and international stakeholders in the fields of Traffic Safety, Management/Solutions, Infrastructure, Toll, Parking, Mass Rapid Transport and Environment.

Participating companies from all over the world – include Australia, Canada, France, Germany, Italy, Japan, Qatar, Spain, Switzerland, the UK, USA and of course India – will showcase products /systems on road safety, parking, road marking, street lighting, highway security, traffic simulation, electronic sensors, access control, noise barrier, reflective/signage, etc.

The exhibitors include 3M, Avery Dennison, Magnetic Auto Control, Fracasso Group, Sunovatech, Metro Roads, Hofmann, Omnitech, Imago Screens India , Imeva, Envoys Electronics Pvt Ltd, Came India, Kistler Instruments, Pepperl+Fuchs (India) Swareflex, Telegra and Alcohol Countermeasure Systems.

The fact that the show has also received the support from different organizations like NHAI, Central Road Research Institute (CRRI), APSA, FSAI and IRTE reiterates the fact that India needs a comprehensive show on traffic, as road safety and traffic management are issues Indian government is grappling with and, is keen to solve. TrafficInfraTech Expo aims at bringing the traffic industry under one roof in an effort to come up with good solutions for improving the country’s traffic safety and management.

TrafficInfraTech Seminar- February 3 & 4, 2011 – “Highway & Urban Traffic Management and Safety”

Day 1: February 3 Time: 10.15 am-1.30pm
Topic: Highway traffic safety and management
Presentations:
1) Plans and perspectives of development of highway – NHAI
2) ITS Road Map – NHAI
3) Highway safety standards and specifications – CRRI
4) Project challenges faced by NHAI concessionaires and their technology requirements
5) Highway Traffic Management – System Providers
Day 2: February 4 – Time: 10.15 am -1.30pm
Topic: Urban Road Safety Management
Focus: Traffic management/ systems today and what are the requirements of the Future / (Regulation, Surveillance, Enforcement, Awareness/ Education, Information).

Presentations by the Traffic Police Commissioners of selected metros/cities.

The pan India visitors will include officials from the Government traffic/transport/safety departments, enforcement authorities, policy makers, traffic consultants, system providers/integrators, infrastructure companies, large corporate houses, officials from Railways, Airport authority, Ports, etc., urban planning consultants, traffic researchers, NGOs and financial institutions.

Virtual Info Systems has a decade of experience in publishing, organizing national and international B2B trade shows and in data management. Its publication, TrafficInfraTech magazine, is the media partner for the Expo.

For more details, visit WWW.TRAFFICINFRATECHEXPO.COM

Toll Roads in China: Speeding Up Growth

January 12, 2011

Infrastructure has played an instrumental role in the Chinese economy’s ascent to the position of a global economic powerhouse. And the overarching importance of infrastructure in China was underscored yet again when the sector grabbed a 38% lion’s share of the $586 billion Chinese stimulus package introduced in November 2008. Out of all the infrastructure sectors, the effort to improve the country’s roads has received the strongest impetus and investment from the Chinese government. According to consulting firm KPMG, since 2000 China’s expressway network has been growing on an average of 20% per year. With this, the country has zoomed to the second position globally in terms of expressway network, next only to the U.S.

Driving forces of road construction

China infrastructure
Source: Infrastructure in China: Foundation for Growth, KPMG, 2009

Outlined in a series of five-year plans, the development of infrastructure in the Chinese economy has remained an integral part of its economic development initiatives, But expressway construction in China only gained momentum in 1989, when the forces of economic liberalization were gathering steam. As a result of these comprehensive economic reforms, the Chinese economy surged to an average annual growth rate of 9% in the three decades spanning 1978-2008, a remarkable achievement. Driven by industrial production and exports, this higher economic growth was naturally accompanied by a greater demand for freight transport, which in turn created a demand for construction of new roads. Higher living standards along with improved levels of domestic consumption further added to this transport demand. What’s more, China’s zooming car sales and its emergence as the largest car market globally in 2009, also necessitated the quick construction of highways and expressways. Notably, the building of highways is a crucial factor in the country’s “Go West” policy aimed for the integrated development of central and western China, which lags behind the more economically prosperous east, as well as some parts of the north1 .

National Trunk Highway System: Backbone of China’s road network

China road investment
Source: Infrastructure in China: Foundation for Growth, KPMG, 2009

China’s ambitious National Trunk Highway System (NTHS), launched in 1990 originally envisaged 35,000 kilometers (21,748 miles) of expressways that would link all the major cities with each other as well as the ports. While this core of the Chinese transport system, covering a population of almost one billion, was due to be completed in 2020, it was functional by 2007, 13 years ahead of schedule. The NTHS, also known as the 7918 network, links all provincial capitals as well as cities with a population of more than 200,000, and incorporates the following:

  • 7 Highways from Beijing
  • 9 North to South vertical expressways
  • 18 East to West horizontal expressways

Building expressways at a breakneck speed, China today boasts of 65,000 kilometers (40,389 miles) of expressway network, the second largest in the world, compared to a mere 147 kilometers (91.34 miles) in 1989 . The country is poised to expand this network further to 85,000 kilometers (52,817 miles) by 2020, according to the Ministry of Transport. For greater integration of rural areas in the economic development process, the government also plans to build and modernize about 270,000 kilometers (167,770 miles) of rural roads.

Regulatory framework for roads: Government at the helm

The fast-paced expansion of the road network in China, especially expressways, over the past 15 years has been possible due to the government’s systematic tiered approach. The development has been led by the State Council as a central entity for overall planning and standards, while the Provincial Transport Departments are responsible for detailed planning, design as well as building. Successive five-year plans have also outlined specific provincial targets for road construction, which have facilitated large-scale implementation simultaneously of many parallel projects.

The governance or regulatory framework for roads in China is as follows2 :

State Council: This is the highest executive organ of state administration, with the premier at the helm, along with ministers and state councilors. The State Council has the responsibility of approving and issuing plans and policies for road sector development.

Ministry of Transportation: The Ministry of Transportation (MOT) assumes the role of policy oversight as well as regulation of all transport modes, except railways.

Provincial Transport Departments & Transport Bureaus: The 27 Provincial Transport Departments and the transport bureaus for the four mega cities- Beijing, Chongqing, Shanghai and Tianjin- are responsible for the implementation of the transport programs and policies. They are also accountable for raising funds for the road projects, and for their operation as well as maintenance.

Financing of road projects

On the funding front, the provinces finance about 65%-90% of the capital cost needed to construct and maintain the expressways through their own budgets and debt. MOT sets policies, standards and provides investment support for construction. While expanding the inter-provincial National Trunk Highway System, the government decided to adopt a toll-based network, which would be predominantly financed by debt3 .

While the financing and management of the expressway network predominantly remains in the public sector domain, the government has adopted a distinctive form of Public-Private Partnership (PPP) financing for some expressway projects. For example, after completing the construction of a toll expressway, provincial governments set up an expressway corporation as a public limited company, listed on the stock exchange. The provincial government then invests the money paid by the shareholders into construction of new toll roads. As such, China followed a one road-one company model, which allows for joint venture, securitized ownership, direct private sector investment, as well as different forms of leasing and concessions. Overall, private investments constitute a mere 7% of expressway financing in China. Here, the build-operate-transfer (BOT) method of road construction and management, which is a popular form of PPP financing, has been recently introduced in China. It is a tendered process, in which the chosen concessionaire (private entity) finances, builds and operates a road for a specified period.

China sources of funds for road investment
Source: ‘A Review of Institutional Arrangements for Road Asset Management: Lessons for the Developing World’, Cesar Queiroz and Henry Kerali, The World Bank, 2010.

China and India: Contrasting approach to road projects

In terms of the total road network, China ranks second, while India ranks third globally. A common characteristic of the road network in both countries is the predominance of rural roads, which constitute almost 90% of the total road length in China and 79% in India. While India boasts of a highway network of 66,590 kilometers (41,377 miles), its minuscule expressway network of 200 kilometers (124.3 miles) is dwarfed by China’s 65,000 kilometers (40,389 miles) expressway network4 .

While traditionally road construction in India was entirely undertaken and financed by the government, budgetary constraints have resulted in alternative models for road projects. With the objective of attracting private investment in road development, maintenance and operation, the National Highways Act (NH Act) of 1956 was amended in June 1995. These amendments facilitated private entities to invest in the NH projects, as well as levy, collect and retain fee from users, and regulate traffic on these highways as per the provisions of the Motor Vehicle Act of 1988.

The National Highways Development Program (NHDP) forms the backbone of India’s road network with a length of 66,590 kilometers (41,377 miles). While this constitutes only 2% of India’s total road network it, it carries about 40% of the total road traffic. Launched in 2001, the NHDP is spread over seven phases to be completed by 2015. This ambitious program consists of connecting the four metropolitan cities of New Delhi, Mumbai, Chennai and Kolkata (the Golden Quadrilateral), while substantially upgrading its existing network too.

Read full article here:
http://www.thomaswhite.com/explore-the-world/BRIC-spotlight/2010/china-toll-roads-expressways.aspx

Kamal Nath upset with NHAI officials

January 11, 2011

Transport minister Kamal Nath has pulled up the NHAI officials over the poor performance of road building programme. Upset over the sluggish pace, he has warned that he will take up the issue with the PM.

Read more at: http://profit.ndtv.com/video/show/168022?cp