As stated by Mckinsey (Rail) below, OEM’s can play a pivotal role within the maintenance rail industry should their services be required. There is an opportunity for them to bid for single tenders and establish themselves within a train operators business model, both parties benefiting from the partnership. However, the three main beneficiaries are:
Urban/regional passenger rail
“Rolling stock OEMs will take on the maintenance for smaller regional and urban rail operators on a service basis, leveraging their currently superior analytical skills and knowledge of the assets and this way putting even more competitive pressure on larger regional and urban rail operators.”
This allows for the smaller rail companies with limited resources (in comparison to large fleets) to obtain expert maintenance from OEMs, assisting Asset Management and keeping the trains running more frequently, reducing costs and increasing revenue. By keeping their trains running, they can avoid delays and improve their passenger’s journey experience.
Long-distance Passenger rail
“In long-distance rail, the competitive pressure is significantly lower compared to urban/regional passenger and cargo rail segments. The transportation market is stable, and autonomous passenger cars are still a relatively far-off reality. Customers more and more ask for a higher-quality transport experience, long-distance rail operators might be incentivized to reduce component failures through condition monitoring. This, next to a significant potential to increase margins, mightyet make the case, albeit longer-term, for change in long-distance rail.”
Long distance is today seen as a competitive alternative to air travel (for distances < 2000 km). It is expected that demand will increase, and governments will promote this move, either by subsidising or cutting taxes on train fares. This encourages the train operator to reinvest in one of their KPIs such as improving passenger experience for example (a common goal within the long-distance passenger rail sector).