Member of UITP 8 th Trolleybus Working Group

Member of UITP 8 th Trolleybus Working Group and 3 rd Trolleybus Workshop Session 3: New Technologies available for worldwide Trolleybus Markets (Tendency of Market Segments) Presentation Arnulf Schuchmann, Managing Partner 28 th Vologda February 2008

Worldwide trolleybus markets can currently be segmented - tendency traditional systems on "high" level traditional systems on "low" level Overview Trolleybus Working Group innovations, e. g. Lyon innovations like BRT New Technologies available for worldwide Trolleybus markets (Market segmentation) Presentation Vologda, 28 th February 2008 UITP_Belgrade_27092006_final. ppt © S 2 R Consulting 2008 2

Current market segments within Europe Russia total: 90 11. 300 Overview I II Total: 55 Trolleybus Working Group 3581 I II Total: 47 1850 III Total: 61 II 6493 New Technologies available for worldwide Trolleybus markets (Market segmentation) Presentation Vologda, 28 th February 2008 III UITP_Belgrade_27092006_final. ppt © S 2 R Consulting 2008 3

Key indicators for segmenting the market "High" level "Low" level Innovative systems traditionally trolleybus partly no tradition in trolleybus no big investment backlog investment money available environmental aspects of concern environmental aspects are neglected Segmentation Trolleybus Working Group environmental aspects of concern advanced technology robust technology innovative technology stable demand focused on corridors high demand in peaks, disperse high demand focused on corridors New Technologies available for worldwide Trolleybus markets (Market segmentation) Presentation Vologda, 28 th February 2008 UITP_Belgrade_27092006_final. ppt © S 2 R Consulting 2008 4

Main market differences Segmentation 1 "High" level Differences - Price Technology Design Service 2 Trolleybus Working Group New Technologies available for worldwide Trolleybus markets (Market segmentation) "Low" level Presentation Vologda, 28 th February 2008 UITP_Belgrade_27092006_final. ppt © S 2 R Consulting 2008 2007 Seite 5

Relevant aspects for trolleybus cities and operators in traditional "high" level markets Aspects Life cycle cost articulated low floor buses environmental aspects auxiliary drive or super caps § long term cost pressure § investment budgets available § § Segmentation try to focus on corridors stable or increasing demand passenger comfort investment (capital cost) are less than 20% of the cost structure Trolleybus Working Group § zero emission, noise issue becomes crucial § super caps instead of diesel for auxiliary § higher flexibility (for politicians often an argument) § no overhead line in depots needed New Technologies available for worldwide Trolleybus markets (Market segmentation) Presentation Vologda, 28 th February 2008 UITP_Belgrade_27092006_final. ppt © S 2 R Consulting 2008 6

Segmentation Switzerland example for a traditional market on "high" level Trolleybus Working Group New Technologies available for worldwide Trolleybus markets (Market segmentation) Presentation Vologda, 28 th February 2008 UITP_Belgrade_27092006_final. ppt © S 2 R Consulting 2008 7

Relevant aspects for trolleybus cities and operators in traditional "low" level markets Aspects investment cost solo buses robust technology § scarce investment budgets available § loss making business (less subsidies) § § Segmentation disperse demand structure decreasing demand cheaper than articulated more flexibility Trolleybus Working Group § easy to operate and maintain § no foreign spare parts needed § spare parts to be self made New Technologies available for worldwide Trolleybus markets (Market segmentation) Presentation Vologda, 28 th February 2008 UITP_Belgrade_27092006_final. ppt © S 2 R Consulting 2008 8

Trolleybus operators in "low" level markets need to overcome its investment backlog Age structure of vehicles "High" level market "Low" level market Segmentation Trolleybus Working Group Average price: 400 thousand Euro Average age: 8 -10 years Æ increase service quality by low floor, AC, etc. Æ optimise LCC Average price: 80 -100 thousand Euro Average age: 63% more than 10 years New Technologies available for worldwide Trolleybus markets (Market segmentation) Presentation Æ first: renew fleet within given budget Æ second: think about typical optimsation topics (like in W. E. ) Vologda, 28 th February 2008 UITP_Belgrade_27092006_final. ppt © S 2 R Consulting 2008 9

Main decision within traditional markets on "low" level is the price of the bus … Market analysis for trolleybuses 1 Decision criteria Weight Price of the bus 55% Segmentation Life cycle cost: 2 - spare part prices - maintainability Trolleybus Working Group 25% - maintenance cycles/intervals Additional criteria: 3 - workplace driver passenger benefits second hand price availability of spare parts 20% New Technologies available for worldwide Trolleybus markets (Market segmentation) Presentation Vologda, 28 th February 2008 UITP_Belgrade_27092006_final. ppt © S 2 R Consulting 2008 2007 Seite 10

… whereas in mature ("high" level) markets additional services become more crucial Market analysis for trolleybuses Decision criteria Weight 1 Life cycle cost 30% 2 Availability of spare parts throughout vehicle life time 20% 3 Experiences, quality and references 20% 4 Workplace drivers 10% 5 Passenger benefits 10% Segmentation Trolleybus Working Group New Technologies available for worldwide Trolleybus markets (Market segmentation) Presentation 6 Maintainability Vologda, 28 th February 2008 10% UITP_Belgrade_27092006_final. ppt © S 2 R Consulting 2008 2007 Seite 11

Markets are different currently, from products perspective markets will be unified in future Tendency 12 2 High level § Quality Trolleybus Working Group New Technologies available for worldwide Trolleybus markets (Market segmentation) Low level Presentation § Design Vologda, 28 th February 2008 § Technology § Environment UITP_Belgrade_27092006_final. ppt © S 2 R Consulting 2008 2007 Seite 12

If you have any questions or if you would like to receive further information, please do not hesitate to contact us! schuchmann@s 2 r-consulting. com Trolleybus Working Group www. s 2 r-consulting. com S 2 R Consulting Gmb. H Friedheimstrasse 17 CH – 8057 Zurich New Technologies for worldwide S 2 R Consultingavailable KG Trolleybus markets Kurze Mühren 1 (Market segmentation) D – 22083 Hamburg Presentation Vologda, 28 th February 2008 UITP_Belgrade_27092006_final. ppt © S 2 R Consulting 2008 13