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A PASSION FOR A PASSION FOR RAILWAY SOLUTIONS RAILWAY SOLUTIONS Development for Sustainable Change in Ethiopia Consulting · Engineering · Analysis · Systems 1

Introduction Molinari Rail We are…  an independent railway consulting and engineering company  specialized in all aspects of railway systems  active on all continents  headquarter in Winterthur, with subsidiaries in Austria, Germany, Turkey and Malaysia  passionate about railway solutions – but we like all other modes of transport as well ! 2

Why transportation is so relevant ? A transport system is key for the social and economic development of a country. It enables … transportation of products and people … to boost economic development Source: ERC … connects regions and countries Key requirements for any transport system are:  Transportation should be efficient, economic, affordable, accessible for all  Transportation hubs should be located in areas with high transport demand  Transportation modes form an intermodal chain from start to end Transportation Systems are enabler for economic and social development 3

Awash-Weldia Railway Project Railway Systems Modern railway system consists of the following: Infrastructure Personnel & Operations   Railway line Management   Passenger Stations Operation and Control   Freight Stations Operational staff   Maintenance workshop Ticketing and billing  Maintenance Rolling stock (trains)  Locomotives (diesel or electric)  Passenger Coaches  Trains with distributed traction  Various types of freight wagons The key challenges now are training, operation and maintenance 4

Awash-Weldia Railway Project Yapi Merkezi from Turkey is developing the project Largest commercially financed railway infrastructure project in Africa.  Start station: Awash, Ethiopia  Workshop: Kombolcha, Ethiopia  End station: Hara Gebeya, Ethiopia  Total over 420km, 6 stations Molinari is responsible for Swiss and Austrian supplies (143 MUSD) Largest sub-suppliers include:  Power supply: ABB, CH  Catenary: Kummeler Matter, CH  Welding: Schlatter, CH  Workshop Equipment: Molinari, CH  Track switches: Voestalpine, AT  Bridges: MCE Bilfinger, AT 5

Awash-Weldia Railway Project Maintenance Workshop Project brief  Fully equipped maintenance facility in Kombolcha  Molinari scope:  Concept design  Maintenance processes  Equipment specification  Equipment Delivery Kitchen Compressed 1-22 0-22 0-22 0-13 0-22 Magnaflux Entran Meeting Training Undress Air 0-10 Brake 0-16 0-15 Axles Stair 0-14 Wshop ce Hall 0-35 1-19 Controll Shower Room 0-39, 0-40, 0-41, 0-20 0-17 32t 0-33 0-42, 0-32 Heating and 0-22 a gn M e t ic 0-18 Water sp in p a rti ce l e cti o Floor n Supervi Daily maintenance storage 0-27 sor Wheelset Workshop  22 MUSD of equipment from Rolling Bearing Superviso Workshops Electric Freight/Passenger Loco 32t Electric Freight/Passenger Loco Painting r 0-11 0-012 Heavy Maintenance and Bogie removal/mounting 2.1 Boogie Workshop Mo bil e Bearing demoun ting Switzerland, and EU countries equipmen t Electric Freight/Passenger Loco Electric Freight/Passenger Loco Cleaning 3.1 Incoming Check Toilette Stai Pantograp Electronic Workshops h 0-09 Electric Freight/Passenger Loco Electric Freight/Passenger Loco 0-32 r Machanical Workshop and Coupling 0-06 16t Daily maintenance storage 0-36 0-22 Supervisor Supervisor 0-05 0-19 Locomotive Maintenance 0-02 0-28 0-30 0-29 0-31 Electric Freight/Passenger Loco Electric Freight/Passenger Loco Bi-level Auto carrier Bi-level Auto carrier Bi-level Auto carrier Bi-level Auto carrier Bi-level Auto carrier Bi-level Auto carrier  Project timeline: 16t Wagon Maintenance 0-01 0-22 Daily maintenance storage 0-21 High level access RW25G Dinner Passenger Car YZ25G Passenger car YZ25G Passenger car YZ25G Passenger car YZ25G Passenger car  Contract signature: 06/2014 16t Coach Maintenance 0-03 Daily maintenance storage 0-21 0-22 YZ25G Passenger car YZ25G Passenger car YZ25G Passenger car YZ25G Passenger car YZ25G Passenger car High level access  Project Start: 11/2014 Underfloor wheel lathe 0-04  Project End: Yapi Merkezi – Ethiopia Project Page 1/2 11/2017 Preliminary Workshop Concept V7 6 – –

Awash-Weldia Railway Project Other Equipment Supplies Track Welding Machine, Schlatter, Switzerland Source: Yapi Merkezi 2015 Bridge Girder & Piers, MCE Bilfinger, Austria Source: Yapi Merkezi 2015 Bridge Installation, Ethiopia Source: Yapi Merkezi 2015 7

Awash-Weldia Railway Project Project Challenges vs. Opportunities Major project challenges are:  Timetable  Documentation requirements  Cultural differences between Switzerland-Turkey-Ethiopia  Specifics of transport to and Source: Yapi Merkezi 2015 project implementation in Ethiopia Site Clearing, Kombolcha Major project opportunities are:  Facilitation of transport to and from Ethiopia  Create new work opportunities in railways and the industry  Create opportunity for multilateral training efforts between Europe/Turkey-Ethiopia  Counter proposal to the Chinese project Source: Yapi Merkezi 2015 development methodology Sleeper Factory, Kombolcha  Reduce economic migration 8

Awash-Weldia Railway Project Key Success Factors for Project Setup Suc Succe cess ss Fac actor tors  Close and open collaboration with customer and stakeholder  Solid contractual structure  Professionalism and flexibility SERV  Support UBS  Reinsurance OeKB  Exchange rate insurance Remaini emaining ng chall halleng enges es  Costs for Financing SME vs. Multinational Corp. Source: Wikimedia commons  The usual suspects 9

Awash-Weldia Railway Project Future steps Commencement to work on key steps for a successful, safe and efficient operation of the Awash-Weldia Railway Line. Key workstreams:  Enabling local staff to carry out operations by:  Plan development  Training  Introduction of long-term training concepts (Railway academy)  Enablement of railway company to operate and maintain the project by The railway development supports  attracting business regional development and connectivity,  expand and improve will boost trade and will create new industries and job opportunities. 10

A PASSION FOR A PASSION FOR RAILWAY SOLUTIONS RAILWAY SOLUTIONS Technologies for the most sustainable mode of transit Made by Molinari 11