Presentation on Railway Stations at CREDAI Conclave 2015

PowerPoint Presentation

Emerging Opportunities in PPP Projects for Railway Stations RedevelopmentCREDAI CONCLAVEThursday, December 17, 2015www.irsdc.com

PM SHRI NARENDRA MODI ON RAILWAY STATIONSThursday, 17 December 152

A WORLD CLASS STATION Thursday, 17 December 153

will provide state of the art facilities to the passengers

by leveraging the real estate potential of the land and air space in and around the station.

will incorporate architecture that shall reflect the culture and the character of the city.will integrate development for a comfortable and efficient passenger experience.

will be self financing and would also generate revenue for railway.

New Delhi was given to Terry Farrell, Hongkong which did Beijing southMumbai CST was given to AREP VILLE France, which has done many Stations in France3

MAIN FEATURESThursday, 17 December 154Iconic Structure

Segregation: Arrival/ DeparturePlanning for next 40 yearsTo act as a multi modal transit hubIntegrating both sides of the cityEnergy efficientDisabled friendlyEnhancing passengers delight

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STAKEHOLDERS IN STATION DEVELOPMENTThursday, 17 December 155StationDevelopmentIndian RailwayTourism DeptState GovtCity CorporationsContiguous LandownersInvestors / DevelopersLocal communities

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BENEFITS TO STAKEHOLDERSThursday, 17 December 156

Opportunity to create an iconic structureHigh brand visibility with benefits for your other businessEnhanced credibility and goodwillCreate a gateway as part of a holistic tourist experienceRise in property value around stations

Station redevelopment projects are TOD projects in which the central station complex becomes more multifunctional, and the linkage system is more thematic to satisfy a diversity of needs. Station areas as places for exchange of ideas and promotion of lifestyle, within a physical framework that incorporates innovations in building and space technology. The railway stations are in effect becoming nerve centres for the so-called Smart city, in which the transportation function plays a supportive role and no longer a central role.

SWOT ANALYSISThursday, 17 December 157Ownership of landStrategically placedStudied well for implementationModel under implementation Real Estate Project Complex formalitiesCompetition from upcoming/planned projects in the citiesVolatility in real estate valuations.Huge potential, growing systemFDI 100%StrengthsThreatsWeaknessesOpportunities

KEY CHALLENGESThursday, 17 December 158Located in congested areas in city centres. Commercial development around these stations may add to the congestion and the capacity of approach road infrastructure may be a constraint.Extensive discussions with local authorities/bodies: permissible FAR, multi-modal integration, approach infrastructure.Station specific issues i.e. Heritage clearances etc.Most stations are brown field ones where redevelopment works have to be executed under running train conditions.Different financial models required for viability.Financial viability depends on real estate market which is cyclical in nature.

GLOBAL EXAMPLESThursday, 17 December 159

The stations conversion is part of an urban renewal project centring on the area north of the station. The locus of this project is the renovation of the central station, which now forms the focal point of this area. The new urban complex will comprise an international congress centre, hotels, housing, offices, public space, etc.Seoul, South Korea


View of Tokyo Station in 2000, before redevelopmentTokyo Station renovation - Marunouchi side, Nov 2009Tokyo, Japan


Tokyo Station Yaesu Side, with the new Grand Tokyo South Tower completed in 2007The front of Tokyo Station lit up at night, taken from the Marunouchi Oazo sideTokyo, Japan


In St. Pancras, 9,000 square meters (97,000 square feet) of retail space are directly connected to passenger flows. The land between and behind the two stations (St. Pancras & Kings Cross) has been redeveloped with nearly 2,000 new homes, 5.3 million sqft of office space and new roads as King's Cross Central. The St. Pancras Renaissance London Hotel was opened in 2011.St. Pancras Station, London, UK


Kings Cross StationLondon, UKOffice 3.4 million sq ftRetail 500,000 sq ftHotel 91 rooms 30,000 sq ftResidential 2,000 unitsParking 865 spacesOpen space 26 acresTotal gross building area planned 6 million sq ftTotal site area 67 acres (27 ha)


The station redevelopment has been the catalyst for one of the largest regeneration schemes in Europe, attracting 2.2bn of private investment. 67 acres of brown-field land is being developed into offices (3.4 million sq ft), Retail (500,000 sq ft) and 2,000 homes.

The project was completed with the revealing of the original station facade and the opening of the 75,000 sq ft King's Cross Square in front of the station.Kings Cross StationLondon, UK


Kuala Lumpur Sentral (KL Sentral) is a transit-oriented development that houses the main railway station of Kuala Lumpur. KL Sentral replaced the old Kuala Lumpur railway station as the city's main intercity railway station. KL Sentral refers to the entire 290,000 square metres of development built on the former KTM marshalling yard. The development includes the transport hub, hotels, office towers, condominiums and shopping malls.

Kuala Lumpur Sentral, Malaysia

OUR STRATEGYThursday, 17 December 15168 stations by IRSDC. Project development by IRSDC prior to bidding.400 (A1 & A category) stations on Swiss Challenge method. Bidding on as is where is basis.

IRSDC PROJECTS: METHODOLOGY Thursday, 17 December 1517Invitation of proposal for ATC Appointment of Arch & Tech consultant Appointment of Financial & Bid advisory consultantPreparation of Master Plan & Feasibility reportApproval of Master plan by Zonal RailwayApproval of Master plan by Local bodiesInvitation of RFQFinalisation of RFQInvitation of RTPFinalisation of RTP incl. NormalizationInvitation of RFP( Financial Bid) Finalisation of RFP Issue of LOA

IMPLEMENTATION STRATEGYThursday, 17 December 1518DeveloperReal EstateRailway StationDevelopment in 3 yrsO&M for 5 yearsTransferIRSDC/ RailwayPremiumLease, Development Rights and Right of WayIRSDC

The developer will fund the development of station and operation & maintenance for 5 years, using the revenues from real estate.Developer will transfer station assets to railways and operate the station for 5 years through a O&M contract.Before completion of station development, developer will not be permitted to earn revenues from real estate.Develop in 8 yrs max Lease 45 yrs

STATUS OF STATIONS ENTRUSTED TO IRSDCThursday, 17 December 1519Station Current StatusHabibganjRFQ and RTP finalisedRFP (Financial Bid) invited on 14.12.2015 Award of Development contract by 28.02.2016Anand ViharIn-principle approval of Master Plan received from Unified Traffic and Transportation Infrastructure. (Planning & Engineering) Centre (UTTIPEC); RFQ invited, to be opened on 23.12.2015.Pre application conference held 26.11.15. Ten developers participated.BijwasanIn-principle approval of Master Plan received from UTTIPECIncrease in height of building from 10.39 m to 21.57 m obtained from Airport Authority of India. RFQ invited, to be opened on 08.01.2016. Pre application conference 23.12.15ChandigarhIn principle approval of Master Plan received from UT Administration, Chandigarh. Revision of drawings in process.RFQ invitation Planned in January 2016.

STATUS OF STATIONS ENTRUSTED TO IRSDCThursday, 17 December 1520Station Current StatusShivajinagar Application for approval of Master Plan by local authorities submitted.Heritage clearance obtained.Master plan approval being pursued at Chief Secretary, Govt. of Maharashtralevel.Surat An Integrated Multi-Modal Hub to be developed duly encompassing Rlys master plan. SMC and Gujarat State Road Transport Corporation (GSRTC) have appointed their Consultants and their plans are yet to be finalized. Last meeting held at Surat on 08.12.2015 to finalise multimodal plan.Gandhinagar (RLDA)Feasibility Report and Master Plan prepared.For examining financial viability, eight different options with 150/200 rooms Hotel and for different scale of station redevelopment prepared. Each option needs Railway funding support. Details under evaluation to decide further course of action.

400 STATIONS REDEVELOPMENT - PRESENT STATUSThursday, 17 December 1521400 stations on as is where is basis. General Guidelines issued to Zonal Railways and Standing Groups constituted to facilitate interaction with prospective bidders. (www.indianrailways.gov.in)List of stations proposed, general data and indicative list of facilities uploaded on Zonal railways website.Rail Land Development Authority (RLDA) has appointed a consultant for preparation of Model tender document, which will be uploaded for stakeholders consultations in December 2015.IRSDC entrusted to appoint a consultant for providing Strategic / transaction Advisory Services for this project; Bids to be opened on 11-01-16.

SWISS CHALLENGE METHODOLOGYThursday, 17 December 1522Seeking initial proposalSubmission of ProposalExamination by STC Examination by SFC Examination by ICEE Approval from GM Submission of detailed proposalNormalization & Inviting open bids Submission of proposalsBid evaluation Time for matching highest bid Award

FINANCING MODELThursday, 17 December 1523Self-Financing Mechanism: capital and operating cost of the project is financed through the project revenues and station facility revenues.Project Revenues: revenue from commercial development on vacant land & air rights.

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REAL ESTATE DEVELOPMENTThursday, 17 December 1524Vacant land and air rightsModel Development Agreement (www.irsdc.com)SPV to be formed for Station Development

Maximum lease period in years3years within which station development is to be accomplishedyears within which commercial development is envisaged45

REAL ESTATE DEVELOPMENTThursday, 17 December 1525Land cannot be mortgaged: ownership always with RailwaysCommissioning of Commercial Development: after commissioning of station developmentAdvance Marketing: permitted through Escrow mechanismNo residential development permitted

Welcome to partner in worlds largest TOD and PPP programmeFor more informationContactA.K. Sachan 9958293657, 011- 23383254, [email protected] Agrawal 9958293475, [email protected] S.K.Lohia 9560595050, email- [email protected] & [email protected]

Habibganj (Bhopal)

Thursday, 17 December 1527

Anand vihar


Bijwasan


Chandigarh


Shivaji Nagar (Pune)


SuratThursday, 17 December 1532

Gandhinagar


Presentation on Railway Stations at CREDAI Conclave 2015

Presentations & Public Speaking