Implementing TOD – Challenges and opportunities for Railway Stations Redevelopment WRI Workshop Thursday, February 18, 2016 www.irsdc.com
PM SHRI NARENDRA MODI ON RAILWAY STATIONS Monday, February 29, 2016 2
A WORLD CLASS STATION … …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. Monday, February 29, 2016 3
MAIN FEATURES Integrating both sides Iconic Structure of the city Segregation: Arrival/ Enhancing passengers’ Departure delight Planning for next 40 Energy efficient years To act as a multi modal Disabled friendly transit hub Monday, February 29, 2016 4
STAKEHOLDERS IN STATION DEVELOPMENT Indian Railway Local Tourism communities Dept Station Development Investors / State Govt Developers Contiguous City Landowners Corporations Monday, February 29, 2016 5
BENEFITS TO STAKEHOLDERS Opportunity to create an iconic structure High brand visibility with benefits for your other business Enhanced credibility and goodwill Create a gateway as part of a holistic tourist experience Rise 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. Monday, February 29, 2016 6
SWOT ANALYSIS Weaknesses Strengths Model under implementation Ownership of land Real Estate component– Complex formalities Strategically placed Studied well for implementation Threats Opportunities Competition from upcoming/planned Huge potential, growing system projects in the cities Volatility in real estate valuations. FDI – 100% Monday, February 29, 2016 7
KEY CHALLENGES Located 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. Monday, February 29, 2016 8
GLOBAL EXAMPLES The station’s 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 Monday, February 29, 2016 9
GLOBAL EXAMPLES View of Tokyo Station in 2000, before redevelopment Tokyo Station renovation - Marunouchi side, Nov 2009 Tokyo, Japan Monday, February 29, 2016 10
GLOBAL EXAMPLES Tokyo Station Yaesu Side, with the new Grand Tokyo The front of Tokyo Station lit up at night, taken from South Tower completed in 2007 the Marunouchi Oazo side Tokyo, Japan Monday, February 29, 2016 11
GLOBAL EXAMPLES 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 Monday, February 29, 2016 12
GLOBAL EXAMPLES Office 3.4 million sq ft Retail 500,000 sq ft Hotel 91 rooms 30,000 sq ft Residential 2,000 units Parking 865 spaces Open space 26 acres Total gross building area planned 6 million sq ft Total site area 67 acres (27 ha) Kings Cross Station London, UK Monday, February 29, 2016 13
GLOBAL EXAMPLES 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 Station London, UK Monday, February 29, 2016 14
GLOBAL EXAMPLES 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 Monday, February 29, 2016 15
OUR STRATEGY 8 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”. Monday, February 29, 2016 16
IRSDC PROJECTS: METHODOLOGY Invitation of Finalisation of Invitation of RTP proposal for ATC RFQ Appointment of Finalisation of RTP Arch & Tech Invitation of RFQ incl. consultant Normalization Appointment of Approval of Invitation of RFP Financial & Bid Master plan by advisory ( Financial Bid) Local bodies consultant Preparation of Approval of Master Plan & Master plan by Finalisation of RFP Issue of LOA Feasibility report Zonal Railway Monday, February 29, 2016 17
IMPLEMENTATION STRATEGY Developer Premium IRSDC Develop in 8 yrs max Development in 3 yrs Lease, Development Lease 45 yrs O&M for 5 years Rights and Right of Way Transfer Real Estate Railway Station IRSDC/ Railway 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. Monday, February 29, 2016 18
STATUS OF STATIONS ENTRUSTED TO IRSDC Station Current Status RFQ and RTP finalised Habibganj RFP (Financial Bid) invited on 14.12.2015 Award of Development contract by 28.02.2016 In-principle approval of Master Plan received from Unified Traffic and Transportation Infrastructure. (Planning & Engineering) Centre (UTTIPEC); RFQ invited, to be opened on Anand Vihar 22.02.2016. In-principle approval of Master Plan received from UTTIPEC Increase in height of building from 10.39 m to 21.57 m obtained from Airport Authority of India. Bijwasan RFQ invited, to be opened on 22.02.2016. In principle approval of Master Plan received from UT Administration, Chandigarh. Revision of Chandigarh drawings in process. RFQ invitation – Planned in February2016. Monday, February 29, 2016 19
STATUS OF STATIONS ENTRUSTED TO IRSDC Station Current Status Application for approval of Master Plan by local authorities submitted. Shivajinagar Heritage clearance obtained. Master plan approval being pursued at Chief Secretary, Govt. of Maharashtra level. An Integrated Multi-Modal Hub to be developed duly encompassing Rly’s master plan. SMC and Surat Gujarat State Road Transport Corporation (GSRTC) have appointed their Consultants and their plans are yet to be finalized. Last meeting held at Surat on 11.01.2016 to finalise multimodal plan. Gandhinagar Feasibility Report and Master Plan prepared. (RLDA) Plan finalised broadly. Financial modelling being done. MOU with state govt being drafted. Monday, February 29, 2016 20
400 STATIONS REDEVELOPMENT - PRESENT STATUS 400 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 is being finalised after stakeholders’ consultations in January’ 2016. IRSDC entrusted to appoint a consultant for providing Strategic / transaction Advisory Services for this project; Bids under finalisation. Monday, February 29, 2016 21
“SWISS CHALLENGE” METHODOLOGY Normalization & Seeking initial Submission of Inviting open proposal proposals bids Submission of Submission of detailed Bid evaluation Proposal proposal Time for Examination by Approval from matching STC GM highest bid Examination by Examination by Award SFC ICEE Monday, February 29, 2016 22
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