20 1610 Р.Р.Р.

PRO/Movement.1520 forum recap

Martin Vaujour on international cooperation

Adaptive technology in action

IVOLGA’S NEW HIGH

AFF

ILIA

TE M

AG

AZI

NE

№ 4

12/

2018

4P.

TABLE OF CONTENTS № 4 12/2018

1

NEWS HIGHLIGHT

CORPORATE NEWS

TOPIC OF THE DAYIvolga on Moscow Central Diameters

INTERVIEWMartin Vaujour on Transmashholding's international plans

COOPERATIONHighlights of PRO//Movement.1520 Transport and Logistics Forum

TECHNOLOGYPredictive analytics and artificial intelligence in manufacturing

HISTORYAleksandrovsk foundry: art for centuries

2

10

4

2016

12+

2

4

10

16

20

24

No fewer than two of Transmashholding's members won Russian Railways’ competition for the best rolling stock and sophisticated engineering systems. The railwaymen appreciated the products of TVZ and NEVZ.

POSTER BOYS FOR RUSSIAN RAILWAYS

The competition award ceremony was held as part of the PRO//Movement.1520 International Transport and Logistics Forum in Sochi.

First place in the Rolling Stock category went to double-decker seat coach (61-4492) made by Tver Carriage Works (TVZ). Note that the winner is rightfully considered the founding father of rail dou-ble-decker making in Russia. The coach is made using the latest processes, equipment and mate-rials. The design incorporates all the best practices in railway coach

building, with local content of the coach in excess of 90%. “First place in such a prestigious com-petition is a sign of appreciation of our joint efforts,” said Andrey Solovey, general director [CEO] of TVZ. “This is evidence that we make much-needed competitive p r o d u c t s , t h e b e s t i n i t s segment.

The Yermak 4ES5K four-unit main-line freight AC locomotives with a collector drive made by Novocherkassk Electric Locomo-tive Plant (NEVZ) was the run-ner-up. These vehicles are among

the most powerful locomotives in the world. Yermak is available in a number of versions, power rated from 6560 to 13120 kW, and is the most numerous family of state-of-the-art electric locomo-tives in Russia. In the first six months of 2018, Yermak electric locomotives were ranked the most reliable new freight locomotives by PKB TsT [Traction Planning and Design Office (TPDO)] of Russian Railways. The inherent availability of warranted locomotives is 0.987 (regulatory requirement is 0.97 minimum).

Yermak wins silver at Russian Railways’ competition

Magazine for partners of Transmashholding JSC

Editor-in-chiefKonstantin Nikolayevich Dorokhink.dorokhin@tmholding.ru

Editorial office address:127055, Moscow,ul.Efremova, bld. 10Phone: 8 (495) 660-89-50

The magazine was prepared in cooperation with FuturaMedia LLCwww.medialine-pressa.ru

General Director Larisa Rudakova

Signed for printing: October 23, 2018 Printed in Mediacolor printing house: Moscow, ul.Volnaya, 28Circulation: 999 copies.

Distributed for free

№ 4 12/2018AFFILIATE MAGAZINE

№ 4 12/2018

23 new comfortable trains made by TMH will be delivered to CEPC in 2019-2020: 17 RA-3 two-car rail buses in August to November 2019 and another six three-car buses in May 2020.

Note that the RA-3 rail bus is a new design developed by OOO TMH Engineering. The look and interior of the saloons is in keeping

with state-of-the-art transport designs. The RA-3's standard configuration is three-car: two motorized lead cars and one motorless towed car. Compared with the previous models, the rail bus has been improved in the maximum speed from 100 to 120 kph. Its seating capacity is 15% higher.

The group's ten largest businesses successfully passed certification audits and have been awarded international ISO/TS22163 certificates alongside major global manufacturers of railway vehicles. ISO/TS22163 certification is a requirement of the group's key customers;

a mandatory project requirement in various countries where TMH is awarded subcontracts. The adoption of the new standard helps the group improve its products and competitive performance and carry on develop-ing and perfecting the business management system (BMS) in-house and at the international level.

The main advantages of the 3ES5K electric locomotive with axle-adjustable traction are its ability to negotiate terrain challenges (which are typical of Uzbekistan railways) and pull heavier trains, delivering better value for money as a result.

The system of independent excitation of traction in the traction mode, implemented in the speed range of 0 to 50 kph, improves anti-spin performance. Such locomotives are widely used by Russian Railways, primarily to pull heavy trains in Siberia and in the Far East.

RAIL BUSES FOR RUSSIAN PROVINCES

STERLING QUALITY Transmashholding members embraced ISO/TS 22163, the new standard of the railway industry.

TICKET TO UZBEKISTAN

The new rolling stock is supplied under a trilateral contract made by and between Russian Post, TVZ and VTB Leasing on finance lease terms. The wagons are rated for a speed of up to 160 kph and will be used both as part of high-speed and passenger trains and on Moscow - Vladivostok post train No 990/989. Based on the results of a public auction, the acquisition cost of wagons (inclusive of finance lease charges) was some 3.7 bln roubles.

“In 2015 we delivered to Russian Post the first 50 wagons designed and built to the latest requirements for luggage and post carriage delivering increasingly greater freight quantities while reducing operating costs and improving services to users,” said TVZ CEO Andrey Solovey. “The wagons won the title of Laureate in the Capital Goods category in the National Competition Russia's 100 Best Products. In 2016, Russian Post bought another 10 wagons from us; last year, 45.”

Under the 2018 contract, Tver Carriage Works supplied to the customer 83 model 61-4505 baggage and post office cars (with service spaces) and 24 model 61-4504 wagons.

In 2018, Transmashholding built 107 baggage and post office cars for Russian Post.

RUSSIAN POST UPGRADES FLEET

Transmashholding made a tripartite contract with Sberbank Leasing and Central Exurban Passenger Company [CPPK] for the supply of RA-3 rail buses.

is the increase in Transmashholding's sales of goods and services for 9 months of 2018.

By value, the sales reached 159.3 bln roubles

54%

is the growth of sales in the segment of multiple-unit rolling stock (from 230 to 474 units). The number of electric train wagons

sold is up 22% to 241 units

106%

is the increase in the sales of railway coaches (649 units,

including double-deckers, 51)

76%

is the increase in the manufacture of diesel engines (205 units)

109%

is the increase in the sales of main-line freight diesel locomotives

(142 units)

9%

is the increase in the sales of diesel shunters

(104 units)

13%

TRANSMASHHOLDING

A supply contract for EP3D electric trains was inked in late April 2018. A total of five four-car trains will be made under the contract.

EP3D trains have been manufactured since 2016. They were developed with due regard to input from operating companies and passen-gers, meet all current international safety requirements for motive rolling stock and have 90% local content.

The EP3D electric trains made for Volga-Vy-atka PPK can be used as a multiple-unit system, that is, with double and four-car trains running during rush hour and low-traffic

periods respectively. As requested by the customer, interiors of EP3D lead coaches have a new layout, with four-passenger seats and overhead handrails. Middle (motored) coaches have six-passenger seats and route maps on side windows.

To date, 27 EP3D trains are in operation on the railways of Russia and the Republic of Kazakhstan. The new train will run in Nizhny Novgorod (Gorky-Moscovsky Depot). The other electric trains are scheduled for delivery to the carrier company for the first quarter of 2019.

Transmashholding has delivered the first AC-powered train, EP3D, to Volga-Vyatka Exurban Passenger Company [VVPPK].

NOW TO NIZHNY NOVGOROD TOO

Transmashholding has delivered to Uzbekistan Railways two 3ES5K electric locomotives with axle-adjustable traction.

32

CORPORATE NEWS

IVOLGA’S NEW HIGH

The ambitious project, Moscow Central Diameters, which is being implemented by the Moscow government, provides for commuter train service through the capital. It will increase the length of metro and railway lines, and passengers will be able to travel without transfer from one suburb to another. The MCD project is expected to be launched in late 2019 or early 2020, and the first phase alone will seat an additional 900 thousand passengers per day. MCD requires a special type of rolling stock: one that is ruggedized for frequent stops and has a large passenger capacity. A train that fully meets such requirements has been created by Transmashholding.

By Svyatoslav Mikhnya

Modern cabin A high level of comfort is offered to the engine driver and train crew: a spacious cabin, comfortable seats, a climate control system, windscreen heating and even a small refrigerator.

Wide doorsThanks to the wide doorways, the passengers can easily board and deboard without running into each other.

Safety featuresThe lead and subsequent cars have modular blocks (crash modules) installed as part of their passive safety system. In the event of a collision with an obstacle, they absorb the energy released as a result, securely protecting the passengers and engine drivers.

Everything under controlThe trains have an extensive CCTV system in place, which records what is taking place inside and outside the train.

Will last a long timeThe coach bodies are made of corrosion-resistant steel, which greatly extends their service life.

Smooth movementThe air suspension technology implemented makes for a smooth ride of the train and reduces the noise and vibration levels.

TOPIC OF THE DAY

4 5

№ 4 12/2018

VLADIMIR PUTIN,PRESIDENT OF RUSSIA:

- Ivolga was developed in, and for, Russia. This train outshines similar products made anywhere in the world in many respects.

Time to marketIvolga is 100% designed in Russia. The TVZ-made electric trains have an asynchronous drive, digital control system, air suspension, climate control system, sophisticated safety features and comfort-able furnishings. Not unimportant is the fact that Ivolga is nearly 90% locally made. What is more, Ivolga’s life-cycle cost is 20% lower than that of mass-produced trains. Further, its energy-saving equipment reduces electricity costs by 30%. Big savings are also achieved thanks to the lower cost of maintenance and scheduled repairs. From this point of view, Ivolga leaves the old models in the dust. For example, the old electric trains, which are being phased out of service, come in for mainte-nance and testing up to five times a month, while for Ivolga once is enough. The train service crew has but 7 people, who only need 4 hours to com-plete all the necessary procedures. FYI: older trains need up to 40 people to service them.

Ivolga is designed to be used on urban lines with high passenger traffic, which calls for short [runs] and frequent stops. That is why it is very important to minimize the boarding/deboarding time. A major factor in reducing it is that the doors are spaced evenly throughout the train to accommodate high passenger traffic. Open passage throughout the train also facilitates this and allows passengers comfortable accommodation throughout the cabin. The result is a modern, comfortable and now readily recognizable commuter train, not unlike surface metro.

The train is suitable for passengers with children and reduced mobility. The entrances to the lead coaches have ramps to ease up boarding and de-boarding. The same coaches offer more space and accessibility toilet rooms, suitable for all passengers. Secure attachments are available for wheelchairs.

Ivolga has a smooth ride and low noise and vi-bration levels thanks to its air suspension.

CCTV cameras have been installed to ensure safety within and outside the train. For the first time in the electric trains in this country, the lead and subsequent cars have received modular blocks as part of their passive safety system such as crash modules, which absorb the impact in the event of an accident.

Since 2017, five-carriage Ivolga trains serviced the Moscow Kiyevskaya - Novoperedelkino route, and the Moscow - Usovo section since October 2018, and are very popular with passengers who have seen the advantages of the new train first-hand.

Originally Ivolga was designed as a base platform for a number of train versions differing in their functionality, interior and number of carriages. The manufacturer is currently fulfilling a contract with Central Exurban Passenger Company, which pro-

vides for the supply of 24 electric trains by the middle of the 2nd quarter of 2019. “We have done our best to take in input from customers and pas-sengers and implement it in new Ivolga,” says TVZ CEO Andrey Solovey.

Moscow-style In October 2018, journalists from federal and in-dustry media outlets were shown an upgraded - six-coach - version of the Ivolga electric train, meant for the first lines, Lobnya - Odintsovo and Nakhab-ino - Podolsk, of Moscow Central Diameters (MCD). Having been designed for MCDs, this modification of the electric train has a plethora of differences from Ivolga’s first version. Having studied the nuts and bolts of train operation, the designers have succeeded in making it even more technologically advanced and comfortable. “Minor changes were made to the train’s look. It’s lost its spats, and its colour scheme has been modified,” says Ivolga project leader Sergey Orlov. “This has improved the look of the electric train a lot in my opinion.”

The core assemblies and systems of the electric train were not affected much; the coach interior, however, was radically redesigned and improved. It has a larger seating capacity than the previous version. Ivolga’s first version had 58 and 24 seats in the lead and subsequent coaches respectively; the upgraded version has 68 and 28 respectively. Thus, the five-carriage Ivolga had 222 seats; the upgrade has 316. As for passenger capacity, the previous version accommodated 1638 passengers, the upgraded 1808.

The seat spacing has been increased by 10 cen-timetres; additional luggage racks have been in-stalled. Compared with the previous version, the lead coaches now have a bicycle rack. “Because of the bike racks in the lead car, we were forced to rearrange the disabled seats,” explains Sergey

THE CREW THAT MAINTAINS NEW IVOLGA HAS BUT 7 PEOPLE, WHO ONLY NEED 4 HOURS TO COMPLETE ALL THE NECESSARY PROCEDURES. FYI: OLDER TRAINS NEED UP TO 40 PEOPLE TO SERVICE THEM

DMITRY MEDVEDEV, prime minister of Russia:

- Ivolga is a modern train. It will replace virtually all commuter trains in operation in this country.

BIG SAVINGS ACHIEVED THANKS TO LOWER COST OF MAINTENANCE AND SCHEDULED REPAIRS. FROM THIS POINT OF VIEW, IVOLGA LEAVES THE OLD MODELS IN THE DUST

TOPIC OF THE DAY

6 7

№ 4 12/2018

ANDREY SOLOVEY, TVZ CEO

- We took on board input from customers and passengers and have implemented it in new Ivolga.

Orlov. “The coach has received folding seats. If there are no wheelchair users or bicycles in the coach, ordinary passengers can use the folding seats. You can also use the folding seats to lean on when standing. They will have soft upholstery, and pas-sengers will be able to use them as cushions.”

The changes have affected the operation of sanitary appliances. The taps, soap dispensers and hand dryers now have touch controls. They are convenient and aesthetically pleasing. There are now many more handrails; they are warm to the touch.

The lighting fixtures have been replaced. The new ones look sleeker. With the long diffusers, they look a single line without breaks.

Keeping in step with the times, the creators of the Ivolga electric train have done everything to keep the passengers online. For this purpose, the coaches of the upgraded Ivolga have USB ports for device charging. Improvements have been made to the intercom. The upgraded Ivolga has four video monitors installed in every coach. Further, the screen size is now 21.5 inches.

FUTURE IVOLGAS WILL CATER TO LITTLE PASSENGERS. LEAD COACHES ARE EXPECTED TO HAVE CHILD SEATS, COLOUR-CODED OR MARKED ON THE FLOOR

In addition, MCD Ivolgas have an automatic passenger count system: special sensors in the coach door openings help count the boarding and deboarding people. These data help the carrier improve the timetable and promptly increase or reduce the service frequency.

These are the electric trains, comfortable and modern, that will service passengers on Moscow Central Diameters. A contract is already in place for the supply of 15 Ivolga trains of the seven-carriage version. Design changes on these trains will be even more noticeable. Specifically, these are major im-provements to the exterior of the driver’s cabin and a deep restyling of the interiors, as well as new systems and components to improve passenger comfort. Future Ivolgas will cater to little passen-gers. Lead coaches are expected to have child seats, colour-coded or marked on the floor.

At a recent meeting on Russian Railways’ long-term development programme to 2025, the Ivolga electric train was showcased to Dmitry Medvedev, the prime minister of Russia. “We took a look at the modern train - it will replace virtually all commut-er trains that are in operation in this country. It does indeed look good,” said Dmitry Medvedev.

Replace the old fleet of electric trains with a new one - this is a task that can surely be done by Trans-mashholding, Russia’s largest supplier of railway and rail vehicles, and by Tver Carriage Works, which created Ivolga.

SERGEY ORLOV,Ivolga project leader:

- Minor changes were made to the train’s look. It’s lost its spats, and its colour scheme has been modified.This has improved the look of the electric train a lot in my opinion. The core assemblies and systems of the electric train were not affected much; the coach interior, however, was radically redesigned and improved. It has a larger seating capacity than the previous version.

CERTIFICATE IN PLACE!On 10 December of this year, Transmashholding received a certificate of conformity for the Ivolga electric train with a greater number of carriages - 5 to 11. This document, issued by FBU [federal government institution (FGI)] called “Federal Rail Transport Certification Register”, shows that the electric train conforms to all safety requirements.Ivolga has successfully passed all tests.

IVOLGA ONLINEThe Ivolga electric train now has its own website: ivolga-train.com.It offers a wealth of interesting information about Transmashholding’s novelty

TOPIC OF THE DAY

8 9

№ 4 12/2018

MARTIN VAUJOUR: WE APPRECIATE CHALLENGES

The expansion into new markets, the 2018 highlights and the international plans of Transmashholding are the focus of our talk with Martin Vaujour, CEO of TMH International, the international arm of the group.

country a local partner and join forces to develop projects.We have a big edge over many competitors. The TMH group is a fully private operation, owned by people who are not risk-averse. That is the reason why we are willing to provide seed funding and then grow in sync with partners, drawing on lo-cal people, local expertise and support from local players. Most of our competitors take the oppo-site approach: they first win a big contract and then send their own people to the country, min-imizing their local staff. Today’s market calls for a

W h a t a r e t h e o b j e c t i v e s o f T M H International? What is its profile?

The TMH group’s growth strategy provides for market diversification and lower dependence on major Russian consumers. Yet the ambitions of shareholders are not confined to one-off supply contracts, but are focused on establishing a per-manent presence in international markets.It is in furtherance of this strategy that TMH Inter-national was incorporated and headquartered in Switzerland. On the one hand, a European legal entity bestows the status of a European company with all prospects and preferential treatments that this entails. On the other hand, affiliation with the TMH family makes it possible to draw on Russian entities, with their substantial competencies and experience.We were tasked with the challenge of reaching sales of 500 million euros per year in the foreign markets.

Who are employed by TMH International? The team of TMH International includes profes-

sionals who were hand-picked for their extensive track record with major multinationals. This is an international team, whose members were select-ed to organically complement each other and be capable of effectively operating virtually in any country, communicating with customers in their native tongues.The head office employs but 18 people: they are in charge of business development and project management. Another 90 and 150 people based in Argentina and Africa respectively are respon-sible for manufacturing and in-process control.

What methods does TMH International use to expand into new markets?

Developing business in new markets requires local presence: setting up production and engi-neering centres in the target areas. This brings you closer to your customer and gives you insights into unique features of the market and its demand. What is more, we are convinced that partnership is key to success. That is why we find for each

The locomotive factory of TMH Africa in the town of Boksburg, South Africa

TMH GROUP’S STRATEGY IS TO ESTABLISH A PERMANENT PRESENCE IN INTERNATIONAL MARKETS

INTERVIEW

10 11

№ 4 12/2018

Cuba

Russia Egypt Hungary

TMH Hungary, Budapest

consortium, we are looking into acquiring a site in Hungary and building up the Egyptian business to set up local production in Egypt.

What sets TMH International apart from the other companies with international ambitions?

We come to countries where railway industry used to prosper, but has fallen into decline for some reason or other. That is why we do more than just sell our products; we invite local part-ners to resurrect their railway industry.Our stockholders already have such track record in Russia. Following the collapse of the Soviet Un-ion, they went around integrating individual fac-tories into a single organism, retooling them in keeping with modern requirements and re-engi-neering their production lines. This is a unique competency, much in demand far outside the CIS.In addition, Transmashholding is expanding into adjoining links of the value added chain, offering, over and above industrial capacity, vehicle main-tenance services for its own and third-party prod-ucts. Outsourcing of after-sales service is a very topical issue, for example in Argentina, which stud-ies with great interest the best practices in farm-ing out a depot and taking care of its staff.We are building an open engineering industrial system. This means that you needn’t always mar-ket your own product and fight against players entrenched in their niches. In this day and age manufacturers compete and do joint projects at the same time; this is a close-knit community. We are willing to partner up with any player, provid-ed that this benefits both parties. For example, at our plant in South Africa we will continue in our role as a contract manufacturer for Bombardier under the contract to supply electric locomotives, will continue doing business with GE, and we are also willing to set up local production for other manufacturers with contracts already in place and on the lo okout for a lo c al manuf ac tur ing partner.

How do customers respond to the “new Russian kid on the block”?

Customer feedback shows that we are welcomed in the market. People often ask me where Russia has been for the last 20 years. Vietnam, Cuba and African countries feel left out in the cold; they have great respect for our engineering traditions and trust Russian technology. Many went to school in the USSR and speak Russian.For example, when we were looking for personnel for the St Martin project in Argentina to maintain Chinese-made vehicles, an engineer’s CV mentioned

different approach E.g., the TMH group set up TMH Argentina and TMH Africa, and is in the process of forming TMH Cuba. Also, two new locations have been added to our production facilities: Me-chita in Argentina and a factory in Boksburg, a satellite of Johannesburg, South Africa. In Mech-ita we rented an industrial site, which we use to fulfil a maintenance service contract for Chinese locomotives and coaches. The factory in Boksburg, a manufacturer of railway vehicles, is a partner and co-contractor under contracts to supply third-party vehicles.Having signed a contract to supply 1300 railway coaches to Egypt through a Russian-Hungarian

Panel debate at South-African Investment Forum with the involvement of Kirill Lipa and Samuel Bhembe, TMH’s business partner in South Africa

IN THIS DAY AND AGE MANUFACTURERS COMPETE AND DO JOINT PROJECTS AT THE SAME TIME. WE ARE WILLING TO PARTNER UP WITH ANY PLAYER, PROVIDED THAT THIS BENEFITS BOTH PARTIES

TMH Cuba, Havana (under formation)

TMH International, Moscow

EgyptTMH Egypt, Cairo (under formation)

TMH International, Switzerland, Zug

Dunakeszi,Budapest ETP 200, Cairo TMH factories

Establishment Production sites

Central America

the Middle EastEastern Europe

Argentina

TMH Argentina, Buenos Aires

Mechita,Bragado

Retiro St Martin, Buenos Aires

South America

RSA

TMH Africa, Johannesburg

Boksburg,Johannesburg

South Africa

Target region Host country

Kazakhstan

TMH Kazakhstan, Astana

LKZ,Astana

EKZ,Astana

Central Asia

INTERVIEW

12 13

№ 4 12/2018

manufacturers in their entirety and delivered to the customer ready to roll. The challenge is to make sure they run problem-free not only while under warranty but also when out of warranty: we have to factor in all nuances of the Cuban cli-mate while still at the design stage. We are trying to persuade the customer of the need for in-house maintenance service for the vehicles supplied by us and to set up a service cluster, not least be-cause the heart of a locomotive - its engine - is also made by TMH. However, even if the custom-er turns us down, our vehicles need to bolster the positive image of Russian engineering abroad.In Argentina, on the other hand, the focus in con-tractual performance is on building a seamless supply chain for spare parts for Chinese-made ve-hicles, as well as developing the required repair expertise.Excellent performance under the contracts in place is extremely important both for projecting the corporate group’s image on the international mar-ket and for delivering the expected financial re-turns. That is why we are now paying a great deal of attention to putting together a team of project managers.

Our ambitions are not confined, however, to im-plementing the projects in progress; our plan calls for a consolidation of positions in several key re-gions: South America, Central America, the Mid-dle East, South Africa, Eastern Europe and Central Asia.

Are you not put off by the scale of projects? We appreciate challenges; we welcome pro-

jects whose success can improve freight and pas-senger t raf f ic in this or that countr y. Our willingness to transfer technology, our ability to set up manufacturing and repair, as well as our readiness to co-invest and raise capital make us extremely attractive to our customers.It is also important that Transmashholding remains not only the parent company of TMH International but also our main technology partner. I am grati-fied that, despite having a lot of domestic orders in Russia, TMH is committed to developing busi-ness overseas too.I believe that by pooling our resources and join-ing forces both in manufacturing and manage-m e n t , i n R u s s i a a n d a b r o a d , w e w i l l b e successful.

his Russian-language skills. It turned out that he had attended a school in the Soviet Union. He was happy to get a job with a company with Russian roots in his homeland. We should appreciate our past and set ambitious goals for the future. TMH businesses have a proven track record in custom designing and manufacturing vehicles for the most challenging environments based on local infra-structure and engineering culture.

What are TMH International’s priorities? We have a number of contracts in place that we

must now fulfil. E.g., supply 1300 coaches to Egyp-tian National Railways - a major export project not only for TMH but also for Egypt in the last dec-ades. It would seem that the signing is the end of a long, nearly decade-long struggle. It is, howev-er, only the beginning: we now have to develop the product and set up its production at three manufacturing locations - in Russia, Hungary and Egypt. The project will be under scrutiny from pol-iticians in the three countries, customers and, defi-nitely, competitors. The latter will be waiting on our mistakes in hopes of taking advantage if we drop the ball and winning back their market share.With the Cuban contracts, the situation is differ-ent . The vehicles wil l be made by Russian

TMH Vice President Sergo-Shakhzada Kurbanov and Ashraf Raslan, head of the Egyptian Railway Authority, signed a contract for 1300 coaches

The Mechita opening was a milestone for TMH. Andrey Bokarev and Kirill Lipa came from Moscow to attend the celebration.

Sam Bembe, business partner in RSA, Martin Vaujour and Jerome Boyet, CEO of TMH Africa, after a press conference at Africa Rail 2018

I AM GRATIFIED THAT, DESPITE HAVING A LOT OF DOMESTIC ORDERS IN RUSSIA, TMH PLANTS ARE COMMITTED TO DEVELOPING BUSINESS OVERSEAS TOO

14 15

№ 4 12/2018INTERVIEW

BROAD GAUGEPRO//Movement.1520 has ended in Sochi. This International Transport and Logistics Forum is a high-profile meeting of people from the transport sector, RF Government officials and investors, and Transmashholding took an active part in it.

For two days, 2 and 3 October, Sochi’s main Media Centre provided a forum for discussions of the industry’s current challenges and global develop-ment trends. The forum’s importance as a public square was highlighted in his opening address by Transmashholding CEO Kirill Lipa: “Today’s realities make it impossible for a company to grow in isola-tion. We feel it’s important to hear opinions from our colleagues; we want to describe our bleed-ing-edge solutions; we are open to a constructive dialogue to work out a joint growth strategy.”

Alongside its CEO, Transmashholding was repre-sented at the forum by Aleksandr Loshmanov,

deputy CEO for passenger transport development, and Natalia Shishlakova, deputy CEO for HR man-agement and corporate project management system.

Day of StrategiesThat was the name of the forum’s first day. It includ-ed a plenary session called “PRO future of the glob-al transport system: global trends”, strategic sessions such as “PRO strategy for infrastructure investment: the search for a balance between financial and oper-ational interests”, “PRO vehicles of the future: how do we haul?” and “Professionals of Future 4.0”, a

COOPERATION

16 17

№ 4 12/2018

Natalia Shishlakova, deputy CEO for HR management and corporate project management system

debate called “PRO cooperation: from point A to point B cheaper, faster and better by joining forces” and a roundtable called “PRO new speeds”.

The PRO New Speeds roundtable discussed the achievements, objectives and prospects of high-speed rail transport in Russia, the effect of digiti-zation on the development of high-speed rail, and changing requirements for after-sales service in step with evolving technologies. Kirill Lipa contrib-uted to the discussion as an expert - together with Aleksandr Liberov, president of Siemens in Russia, Philippe Pegorier, president and general director of Alstom in Russia, and Aleksandr Zazhigalkin, head of the innovat ion centre of Russian Railways.

The strategic session “PRO vehicles of the future: how do we haul?” explored the topics of long-range growth of rail transport, adoption of digital tech-nologies and development of management sys-tems to improve traffic safety. The strategic session also discussed the consumer requirements for rail-way vehicles, and cost-benefit aspects of their repair and maintenance provided as part of life-cycle con-tracts. The attendees also discussed the objectives of the Russian Railways long-term growth pro-gramme to 2025. Kirill Lipa told the audience about the rail transport’s growth prospects, the rolling stock of the future and the adoption of digital technologies.

“We provide not only products but also after-sales service,” Kirill Lipa said at the beginning of his pres-entation, “and we are well aware of the current tech-nical and operational needs of Russian railway operators. We understand all key requirements of modern age; these are adaptability, effectiveness, autonomy and optimization of engineering solu-tions offered for implementation on the Russian

Railways’ network. It is our philosophy that we must have all the requisite expertise in manufacturing and after-sales service throughout the life cycle of our vehicles, and we go all out in developing it.”

The participants in the strategic session “Profes-sionals of Future 4.0” reviewed Russian and global HR practices in personnel management and train-ing, and discussed how to create an environment for talent nurturing in the transport sector, what competencies railwaymen 4.0 must have, and what new specialist f ields global digitization will create.

In her contribution to the session, Natalia Shish-lakova emphasized Transmashholding’s leadership not only in business but also in personnel management.

“Last year we started thinking about how we should measure ourselves versus ourselves - we have no competitors in terms of human capitaliza-tion,” said Natalia Shishlakova. “We did a study: we measured the employee engagement and satisfac-tion index. Having made measurements at eight of our major industrial arms, and they are all different - we have locomotive manufacturers, urban rail operators and diesel engine builders, we were rein-forced in our belief that we are equal to any task we may set ourselves. The index was on a par with that of global productivity leaders, the top five companies.”

Transmashholding presentsWhen inviting all those in attendance at the PRO Vehicles of the Future session to visit Transmash-holding’s booth, Kirill Lipa described the importance given by the company to digitization. “We are into everything described as «smart»: rolling stock, dig-ital depot 4.0, digital factory - this project is given

the green light at our electric locomotive manufac-turing facility in Novocherkassk. Digital railway traf-fic control systems are a new technology for us, but we are heavily investing in it and actively exploring this avenue. As part of the 2050 group, we are work-ing to implement predictive solutions. We now can troubleshoot online 11 locomotive families - the gauges monitor equipment performance in full and thus provide pre-failure analytics for vehicles. The quality of data gathering, processing, storage and analysis directly affects locomotive performance prediction, and thus the performance of the entire locomotive complex.”

At the forum, Transmashholding also unveiled a locomotive under the working name of “The Hope of BAM [Baikal-Amur Mainline]”. This is a three-unit die-sel locomotive equipped with state-of-the-art asyn-chronous and diesel engines. It can negotiate the entire route from start to finish without uncoupling, provided it can be refuelled en route. Two prototypes have already travelled more than 50 thou. km.

The second project, now in performance testing, is an electric locomotive designed for the Trans-Si-berian Line; it has a weight rating of 7100 tonnes, but it is actually capable of pulling up to 9 [thou-sand] tonnes of freight in horizontal sections. It will be available in two versions: two- and three-unit.

Day of Debates and RecapOn the forum’s second day, the focus was on pas-sengers - the Second International Passenger Forum had opened. The activities of the business pro-gramme covered digital and engineering solutions for passenger, including urban, transport, the issues and targets in passenger traffic.

Aleksandr Loshmanov joined the discussion of the issues raised in the course of the roundtable

called “Railway through the passenger’s eyes” and touching upon marketing as a tool for assessing passenger requirements, the creation of a single network, railway coach building, commuter car-riage and the role played by railway transport in cluster structuring.

Aleksandr Loshmanov made a presentation on development trends in suburban and urban pas-senger transport, saying, among other things: ”The common factor today in all trends and patterns, in the development of novel products, infrastruc-ture and services is first and foremost the passen-ger. T he p er s on to day t akes centre s t age everywhere, and this is essentially our common denominator.

The world is changing and our passenger chang-es with it, and so do his needs and his lifestyle. And Russian transport hears and understands the trends in the passenger world view - personal space is no less important than punctuality, reliability and speed.

We understand that what is needed is not just com-fort but a new type of bionic design, one that incor-porates natural features and technology alike. We take care of the environment and the interests and enthu-siasms of passengers, promote a healthy and aware lifestyle. I say this with confidence because Trans-mashholding today is a major manufacturer of pas-senger rolling stock; our products are present in all segments of passenger carriage”.

An important result of Transmashholding’s involvement in the Sochi forum is the decision to do business with the Vostok company in the con-text of verification and distributed storage of a locomotive fleet data gathering and analysis sys-tem. Trial operation of the new system is expected to start as early as this year.

The Forum marked

the 15th

anniversary of russian railways

in the forum’s name refers to the millimetre measurement of the

track gauge of railways in Russia, other CIS countries, the Baltics,

Mongolia and Finland.

The total length of roads with this broad gauge is in excess

1520

of

150,000 km

The forum was attended by representatives from

340 companies

of

16 countries

COOPERATION

18 19

№ 4 12/2018

Aleksandr Loshmanov, deputy CEO for passenger transport development

Transmashholding CEO Kirill Lipa

ADAPTIVE TECHNOLOGY TO SERVE RAILWAYMEN

Intensifying competition and all-pervasive Digitization call for the optimization of business processes using a state-of-the-art toolkit. These days’ machine builders do not just create new machinery, but provide after-sales service for it and offer life-cycle contracts. It would have been impossible to provide such services well without solutions from innovative companies. One of them - Clover Group - is Transmashholding’s partner. Its unrivalled predictive analytics, coupled with AI and neural network solutions, give a special advantage to the companies that use Transmashholding’s products.

platform. Earlier, an update would have had to be issued, but now the system will update automat-ically and remember the issue for the future.

CoordinationThe platform is now in beta testing at 34 depots. All the program’s inputs are quickly accumulated and reviewed without glitches. Clover’s project group and the depot’s diagnosticians stay in con-tact, promptly dealing with whatever issues may arise and exchanging knowledge. If diagnosticians fail to understand something, they are helped by analytical experts; if the experts see strange out-liers they cannot identify, they bring in TMH En-gineering. The issue is analysed, imported into the database and notified to LocoTech, which pro-vides repairs.

State-of-the-art technology offers businesses a wealth of opportunities. Digitization and automa-tion of various processes make it possible to re-duce costs, make savings and boost profit margins. A major trend is AI engineering, including in me-chanical engineering.

Clover Group’s project - a smart analytics plat-form - fuses mathematics and machine learning. The system makes short work of analysing large arrays of equipment polling data and identifying the current and predicting the future status of the locomotive.

How it worksA modern locomotive has a multitude of various reliable sensors that monitor its performance, in-stantaneously recording anything and everything that affects it. Data are mostly gathered manual-ly: when a locomotive arrives at the depot, diag-nosticians download f iles from the on-board computers to special memory sticks and import them into their PCs. Earlier they had to analyse data more or less themselves, using low-perfor-mance computer systems. But the smart analytics platform does this for them.

Why? The answer is simple. The sensors accu-mulate 100 hours’ worth of data - this means 700 megabytes, or about 4 mln lines. It used to take two to four hours to go over all data. Now the sys-tem does this in f ive to ten minutes, combing through the data using the algorithms in place and finds any irregularity or problem in the tech-nical condition of the locomotive. All that remains for the diagnostician to do is record the malfunc-tions and pass them on to the repairmen. Thus the system helps eliminate the human factor. Because a human can overlook something out of ignorance or tiredness, but the system will never fail in that way. What is more, it knows how to learn. If loco-motive data should exhibit an unusual anomaly, the program will still flag, and the diagnostician will be able to identify it and import it into the

Clover SmartMaintenance System

TECHNOLOGY

20 21

№ 4 12/2018

century, yet now a large array of sensors on the loco-motive and the rate of processing of incoming data make it possible to move to a more sophisticated re-pair option - one based on the actual condition.

What does this mean? Scheduled preventive maintenance often serves no purpose. Time comes for a tech check-up, even though the locomotive is fully operable, and instead of running on the line, it stays down at a depot. The smart data anal-ysis platform makes it possible to check at any time the technical condition of the locomotive equipment, what the predicted time to failure is for any element, and schedule the best time for taking it down for repairs.

This reduces the number of visits to the depot and downtime. The analytical system and switch-ing to condition-based repair make it possible to reduce maintenance costs by 25-30%, malfunc-tions by 70-75% and downtime by 35-45%.

In addition, the platform makes it possible to evaluate repair quality by comparing performance indicators before and after depot maintenance to see how the figures have changed if at all. In oth-er words, you can see whether the repair crew did a good job, and adjust their procedures.

Economic benefitsFor the time being, a combination of predictive analytics and artificial intelligence is a novelty for Russia and the rest of the world alike. Experts, however, note that even today the quality and rate of data collection, processing and analysis make it possible to improve performance. And not only for those who make and repair vehicles but also for those who use them.

What is important for a carrier? A longer service life of traction fleet; after all, its effective and sus-tainable performance is key to compliance with the service timetable, earnings of railway opera-tors, and quality service to carrier companies and passengers. The smart data analysis platform shows the condition of the vehicle, how many more kilometres it can run without any problems. As already mentioned above, the platform’s algo-rithms detect any and all defects and will not miss the slightest change or irregularity in locomotive performance. Most importantly, the platform can predict - mathematically - failures, enable repair planning and efforts to achieve accident-free operation.

As to savings, with full information about the condition of the unit in place, we can schedule the supply of the necessary parts, optimize capac-ity allocation, reduce repair downtime and there-fore increase availability of the locomotive fleet.

Incidentally, condition-based repair has long been used by the aircraft-manufacturing sector as the best in cost-benefit terms. An analysis sys-tem is planned for as early as in the design stage, when monitoring sensors and instruments are in-corporated into the blueprints.

On top of that and apart from its safety features, the platform implements cyber security mecha-nisms. Locomotive monitoring data, while not unique, are still of great value. All incoming data are securely protected in the system against un-authorized hacking or penetration. Clover’s plans provide for an in-house project to be launched and for the system to be regularly tested against penetration. The platform will be intentionally hacked to test for vulnerabilities. This is a stand-ard practice, but it will safeguard the entire body of data against [black-hat] hackers.

ProspectsGiven that the industry and economies are under-going massive digitalization, any company that wants to succeed must «jump on the bandwag-on”. The global task of predictive and big data an-aly t ic s is to help the indus tr y move f rom case-by-case engineering to smart business pro-cess management. This should ultimately deliver a model whereby locomotive data are displayed in a VR space from where they can be download-ed and analysed by company employees at vari-ous levels and at various points in the life cycle of a locomotive: not only during repair but also in design and manufacture. Even now, locomotive data analysis helps improve the design and fuel efficiency because the performance of all ele-ments is laid bare. As a result, digitization of the

locomotive’s life cycle makes it possible to im-prove its performance at each of the stages and guarantee effective operation and maintenance of the locomotive throughout its service life.

In global terms, digitization affects not only the rolling stock but also the entire railway. E.g., Eu-ropean countries have long been energetically implementing digital technologies, increasing the road throughput, capacity (that is, traffic) and, to be sure, reducing risks through smart systems monitoring the condition of railroad bed and the trains themselves.

Active implementation of digital technologies (and particularly smart analytical systems) helps companies in any segment of the sector (from manufacturers to carriers) boost their competi-tive advantage in the domestic and international markets alike.

DENIS KASIMOV, CEO of Clover Group:

- Our mission is to provide solutions that facilitate to hardware health. In the final analysis, our mission is to help customers to make economically sound and informed decisions improving their business performance.

A separate effort focuses on requests to iden-tify hidden interdependencies. Taking into ac-count the quantity of data a person is physically incapable of detecting them. And it is only the system that can see what is linked to what and why a given process takes place.

Data exchange between the companies is an ongoing process, making it possible to quickly re-spond to issues, prevent their recurrence and fac-tor them into repairs or design of a new locomotive. However, sensors will soon be transferring all data online. Some locomotives already have such de-vices in place, and their use across the board is in the near future. What is more, this is down to or-ganization rather than technology. First, data transfer online will be more effective for vehicle operators because diagnosticians and analysts will be able to monitor the unit throughout its op-erating cycle and continuously record defect evo-lution, improving the performance and reliability of the locomotive in its subsequent use.

Next-generation repairsVarious-level managers of the carriage process need to know first of all the status of the entire locomotive fleet, as well as being able to rank it in terms of deployment. Because equipment does not last forever, it must be repaired on a regular basis. However, we must do this properly, saving time and money without compromising quality. Novel solutions call for new approaches to vehi-cle maintenance.

We are now witnessing a second generation of re-pair management - scheduled preventive mainte-nance. But this approach was effective in the 20th

Equipment troubleshooting

Demonstration of Clover SmartMaintenance system at InnoTrans 2018

Interface of the Clover SmartMaintenance system

TECHNOLOGY

22 23

№ 4 12/2018

№ 4 12/2018HISTORY

24 25

MUSIC IN METAL

Narva Gate

St. Isaac Cathedral

Lion figures in the Palace Embankment

with Neva by a new canal. A swing bridge and a wharf were built at the intersection of the highway and the canal. The wharf was linked to the foundry by a railroad, called Chugunka.

The shop itself received a special pit to cast large articles weighing up to 300 poods (5000 kg). Unparalleled in terms of layout and size (its area was as large as 2000 m2); it was the first of its kind.

7 September 1826 (Old Style), that is, 14.5 months after the start of construction, first metal started flowing from the cupolas of smelting furnaces. The factory was a jack of all trades: it produced iron, copper and bronze castings, cannon shells, steamers, dredgers and other ships with steam-driven machinery.

Art in mass production Eve n a su m mar y l i s t o f t h e o u t p u t o f t h e Aleksandrovsk factory would be too long, so let's pick and choose. Over the period between 1827 and 1840, the Aleksandrovsk factory contributed to the manufacture (casting, embossing) of many decorations and structures for the city, including parts for the Konyushenny and Teatralny Bridges, decorations for the Egyptian Gate in Tsarskoye Selo, and ironwork for the Aleksandrinsky theatre under construction (including the casting of the Apollo's

Let a factory be!The main drag of the Nevsk y Distr ic t of St Petersburg - Obukhovskoy Oborony [Obukhov Defence Avenue] - starts in Alexander Nevsky Square and runs along the left bank of the Neva to Karavayevskaya Street. It is 11 km long. In the early 18th century, the left bank the Neva, to the south of the Alexander Nevsky Monastery under construction, was a deserted waterlogged area, overgrown with thick woods. Later a post road was moved here from the right bank to connect St Petersburg with Arkhangelsk. The road crossed Schlüsselburg (now Petrokrepost), hence its name of Shlisselburgsky Tract [Schlüsselburg Highway].

On 27 March 1825 a Decree to build a new foundry was drafted, which was signed by Emperor Alexander I, with the words “Let it be so” written in his own hand. A construction site was selected on the bank of the Bolshaya Neva; the site sat mostly in public land, with few private properties.

The autumn of 1826 saw the factory's main brick buildings already in place: a sawmill and a forge, a fitting and a foundry shops; an extensive reservoir was dug out for ship building and repair, linked

The Aleksandrovsk foundry is a one-of-a-kind en-terprise in the country. Many of its products have be-come works of art and the pride of St Petersburg.

Chariot sculptural group on the theatre's gable). The factory's workers cast the Glory Chariot for the arch of the General Headquarters in the Palace Square and 24 bronze figures for St. Isaac Cathedral. They literally recreated all (!) metal structures of the Winter Palace, damaged by the 1837 fire ...

This is far from a complete list of the applied art m a d e b y t h e e n t e r p r i s e . T h a t i s w hy t h e Aleksandrovsk foundry (Oktyabrsky Electric Railway Car Repair Plant) is deservedly one of the patriarchs of St Petersburg's industry.

INCIDENTALLY The masterpieces created by the workers of the Aleksandrovsk foundry are now on UNESCO's World Heritage List.

MADE IN, AND FOR, RUSSIA

IVOLGA

SOON ON THE MRT LINES