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Exploring Public Procurement of Swedish Railway Infrastructure Maintenance
Luleå University of Technology, Department of Business Administration, Technology and Social Sciences.
2019 (English)Licentiate thesis, comprehensive summary (Other academic)
Abstract [en]

In 2002, Sweden started to outsource its railway infrastructure maintenance. Through gradual exposure (i.e. outsourcing one contract area at a time), the Swedish Transport Administration has developed its competence of being a client towards its contractors. The last contract was outsourced in 2014. In the last decade, the development of governance techniques and maintenance cost has not matched the increase in traffic. Due to an increased awareness in environmentally friendlier transportation, traffic is only expected to increase further in the coming years. Governance techniques and maintenance cost ultimately depends on the client-contractor relationship through public procurement. Hence, there is a need to understand public procurement of railway infrastructure maintenance. Therefore, the purpose of this thesis is to contribute to the knowledge of public procurement of railway infrastructure maintenance. Three separate studies were conducted. Study 1 was a literature review to explore and determine the state-of-the-art for the field of public procurement of railway maintenance. Study 2 was a linear regression analysis to examine the relationship between contract design and the output of maintenance in Sweden. Study 3 was an interview study in Sweden that explored what factors that supports or hinders collaboration in railway maintenance.

The main results of these studies are that asset knowledge is important for both the client and the contractor. Through reliable asset knowledge, incentives and contracts can be designed to support governance and collaboration. Today, railway infrastructure maintenance is dominated by informal relationships that lack the support of formal partnering activities. When an informal relationship is supported by a formal structure it provides a basis for innovation. This formal structure should be centralized around gaining and sharing asset knowledge. By establishing such a system to increase the asset knowledge and supporting collaboration, public organizations of maintenance can provide a basis for the improvement of maintenance.

Place, publisher, year, edition, pages
Luleå: Luleå University of Technology, 2019.
Series
Licentiate thesis / Luleå University of Technology, ISSN 1402-1757
Keywords [en]
Public Procurement, Railway Maintenance, Supply Chain Management, Contract Design
National Category
Reliability and Maintenance
Research subject
Quality Technology & Management
Identifiers
URN: urn:nbn:se:ltu:diva-75657ISBN: 978-91-7790-425-0 (print)ISBN: 978-91-7790-426-7 (electronic)OAI: oai:DiVA.org:ltu-75657DiVA, id: diva2:1345255
Presentation
2019-10-17, A109, Luleå, 09:30 (Swedish)
Opponent
Supervisors
Funder
Swedish Transport Administration, 47314Swedish Research Council Formas, 47314Available from: 2019-08-23 Created: 2019-08-23 Last updated: 2019-09-18Bibliographically approved
List of papers
1. Public procurement of railway infrastructuremaintenance: a literature review
Open this publication in new window or tab >>Public procurement of railway infrastructuremaintenance: a literature review
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2017 (English)Conference paper, Published paper (Refereed)
Abstract [en]

The maintenance of railway infrastructure has in several instances been changed from government-based to being based on public procurement, with varying degrees of flexibility for the contractor to design their maintenance work. The purpose of-giving contractors a larger freedom of choice of how to perform maintenance is to stimulate them to innovate and develop their maintenance processes. Since the contracts differ in between and there are changes in government policies over time that affects both existing and new contracts, a comparison between different contracts becomes challenging. A literature review has been conducted to understand the change in procurement strategy and how to encourage contractors to innovate. The research questions include: What procurement strategies are there? How is maintenance evaluated? How does procurement affect the innovation opportunities for entrepreneurs?

The literature review focuses on railway maintenance and contract design between client and contractor. In total, 17 articles matched the search criteria and were selected for the review. To have successful maintenance service, five articles suggested partnering as a strategy with common goals in combination with good communication during the entirety of the contract. When selecting incentive plan, four articles mentions that a focus on performance-based incentives in combination with riskmanagement is better rather than actual payment schemes. The reason being that payment is often themain cause of conflicts between client and contractor. The scientific literature suggests that improvement in incentives improves quality of maintenance, decreases delays and technical failures. The conclusion from the literature review is that partnering in railway maintenance is considered successful. With accurate knowledge about railway assets the incentive plan becomes accurate which reduces costs.

The literature review is a part of a research project with an overall goal to develop a model to guide the selection of appropriate type of procurement strategy, contract and control of maintenance for a moresustainable railway system.

Keywords
Procurement, Maintenance, Railway infrastructure, Contract, Payment
National Category
Reliability and Maintenance Other Engineering and Technologies not elsewhere specified
Research subject
Quality Technology and Management; Entrepreneurship and Innovation
Identifiers
urn:nbn:se:ltu:diva-66890 (URN)
Conference
9th Nordic Conference on Construction Economics and Organization, Gothenburg, June 13-14, 2017
Available from: 2017-12-04 Created: 2017-12-04 Last updated: 2019-08-23Bibliographically approved
2. Public Procurement of Railway Infrastructure Maintenance: A Linear Regression Analysis
Open this publication in new window or tab >>Public Procurement of Railway Infrastructure Maintenance: A Linear Regression Analysis
2019 (English)Conference paper, Published paper (Refereed)
Abstract [en]

Swedish railway infrastructure maintenance has been outsourced through gradualexposure since 2002. The idea behind outsourcing was to reduce cost and improveefficiency. However, railway maintenance cost has increased faster than railwaymaintenance operations, resulting in neglected railway maintenance. Since railwayoperation is governed by the contract design the purpose of this paper was to explore therelationship between contract design and maintenance outcome within Swedish railwayinfrastructure maintenance. To explore this relationship linear regression analysis wasused. The result indicates that asset knowledge and accessibility to the track areimportant to consider for improving maintenance operations.

Place, publisher, year, edition, pages
Helsinki: , 2019
Keywords
Public Procurement, Railway Maintenance, Contract Design
National Category
Reliability and Maintenance
Research subject
Quality Technology & Management
Identifiers
urn:nbn:se:ltu:diva-75637 (URN)
Conference
26th EurOMA conference
Available from: 2019-08-21 Created: 2019-08-21 Last updated: 2019-09-06
3. Procurement of Railway Maintenance: Collaboration for Innovation
Open this publication in new window or tab >>Procurement of Railway Maintenance: Collaboration for Innovation
2018 (English)Conference paper, Published paper (Refereed)
Abstract [en]

Railway maintenance is highly important for a sustainable transport system. A popular choice in Europe is to outsource the railway maintenance obligation through a public procurement process. Public procurement of railway maintenance has gained relatively little attention in research despite that the competitive tendering approach implies several challenges, especially related to collaboration and innovation. Hence, the aim of this study is to explore public procurement of railway maintenance, with a particular focus on how various factors support or hinder collaboration and innovation. A multiple case study approach is used, including interviews with client and contractor representatives and a multidimensional framework on partnering as supply chain integration guides the analysis. Tentative findings indicate that there is potential in strengthening the supply chain integration in the studied context. Findings provide theoretical contribution to supply chain integration, for example by pinpointing the importance of addressing informal relationships at the individual level in maintenance contracts. Furthermore, a practical implication for managing transport infrastructure maintenance contracts is the importance of addressing collaboration depth by allocating sufficient human resources to the client organisation.

Place, publisher, year, edition, pages
Belfast: , 2018
Keywords
collaboration, supply chain integration, railway maintenance
National Category
Reliability and Maintenance
Research subject
Quality Technology & Management
Identifiers
urn:nbn:se:ltu:diva-75640 (URN)
Conference
34th ARCOM conference
Available from: 2019-08-21 Created: 2019-08-21 Last updated: 2019-09-06

Open Access in DiVA

The full text will be freely available from 2019-09-26 12:35
Available from 2019-09-26 12:35

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Aldenlöv, Jens

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