Mrock J w10 Application PDF

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Week 10 Application - Topic Hi-Speed Rail...

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Leadership in an International Context: Spain’s High Rail System By Jeff Mrock New School of Architecture & Design

Leadership Challenges in Construction Mgmt. CM-653 Professor: Dia Hunter Week 10 Application Contact: [email protected]

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Introduction Construction management is a crucial factor in the delivery of construction. An efficient process normally applies leadership principals such as trust, empowerment, & self-assessment through the timely use of acquired performance measures, determining contractor’s capabilities, and the prioritization of risk management. The Application of leadership strategies is integral to reduce inefficiencies during construction. One perception about megaprojects such as High Speed Rail (HSR) is that they are not only difficult but often unsuccessful. Whether construction projects succeed or fail is important due to many reasons. Success in construction contributes to economic growth while failure is a hindrance to development, possibly for years. There are common things about Spain and California in relation to the success or failure in construction of High Speed Rails systems. Both Spain and California have similar climates, geography, land mass and initiatives to construct HSR that offer their citizens’ convenient, non-automotive centric transportation alternatives. The two have similarities in terms of population profiles but California has a more than twice Spain’s GDP, and a more robust economy. California’s population is more concentrated in metro regions which HSR is intended to serve. Compared to Spain, California has even more rural areas with potential to access HSR via buses and feeder trains and so a significant customer base exists. However, Spain has been very successful compared to California when it comes to high speed rail construction. Considering these factors, this paper seeks to demonstrate that leadership is a critical element in determining the success of construction in Spain. America had at one time one of the most efficient rail networks in the world, for both freight and passengers. Today more tonnage is shipped by rail than after World War Two, with fewer regional carriers; however our population has since doubled in those years. The passenger systems have not fared as well, leaving us with only Amtrak, and state or city run trains. The railroads ran passenger trains profitably until people abandoned trains for their automobiles and air travel. This was facilitated by our inept federal government 1

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which subsidized the highway and airline systems, at the same time preventing the railroads from operating their own airlines or bus systems, as it would have been a conflict of interest leading to a monopoly. However the government was perfectly fine with allowing the auto makers, oil companies, and tire manufacturers to purchase the interurban electric trolley systems and put them out of business, so they could increase the use of intercity bus lines (Chiland, 2018). The final blow for railroad passenger service came with US mail contracts being canceled & switched to airlines and trucks in 1967, which had allowed the railroads to operate remaining trains at a profit (DeBruler, 2016). The railroad abandoned passenger rail service in 1971 with the formation of Amtrak, which took over the remaining routes. So the US had a premier transportation system, which could have had rail, air, and vehicle travel working in unison, which has now devolved into clogged highways and airlines, excessive fuel consumption, and lost productivity because of poor planning, or some would argue sinister acts, that almost killed off rail travel in the US. Per tonnage mile, rail is the most efficient mean of transporting passenger or cargo, so as a society what are we to do?

Pacific Electric Railway Streetcars in the Scrapyard

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Spanish High Speed Railways

Spain introduced AVE (Altra Velocidad Espanola) as its first ever high speed rail line in 1992. Spain normally has two different rail networks. This country opted to construct its new rail network by use of a wider gauge compared to the international standard. However, its high speed network still complies with international standards to enhance the interchange of Spanish HSR trains with other countries rail lines. However, the trains require special equipment enabling them to work on both networks. By 2011, the Spanish high-speed rail system was the second largest system worldwide following China’s with a length of 1,656 miles. The trains are known to move at high speeds of 155 to 200 miles per hour (Feigenbaum, 2013). From 2003 onward, Spain’s infrastructure expenditure has been focused on rail rather than roads. The Ministry of Public Works in Spain has established a strategic plan for Infrastructure and Transport from the year 2005 to the year 2020 & railways have been allocated $146B which is the largest expenditure ahead of roads & other projects. Also, by the year 2020, Spain plans to extend the size of the HSR network to 6,200 miles, facilitating access by 90% of the population within 30 miles of a HSR station (Feigenbaum, 2013). But, with the election of a new government, escalation of material costs and underperformance of the previous high speed rail lines, new construction has been delayed. The earlier government promoted the HSR network as a means of enhancing mobility with minimal environmental impact compared to automobile or air travel, and also as a means of promoting the rapid accessibility of Spain ‘s various regions and creation of rail centric employment. Comparatively, HSR in California has encountered numerous problems ever since the projects inception in 2008, being fraught with delays and escalating costs. The acquisition of land required for the project was more difficult than authorities anticipated, causing many setbacks and cost overruns. There were also engineering challenges as a result of geological obstacles including; mountain ranges & highway infrastructure causing more 3

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delays. Other factors were the environmental lawsuits by residents opposing the project & a lack of funding from private partners. By 2018, the HSR was estimated to be 140% over its original budget and years behind schedule. Leadership as a factor in success of HSR The Spanish railway network surpasses in both track mileage & ridership systems in Japan and France, two early leaders in the construction of HSR. Also, the number of passengers transported by HSR in Spain is 6% greater than the number transported by the Shinkansen in Japan, whose population is almost three times larger than Spain’s! The extension of HSR network is the showpiece of infrastructure planning within Spain for the coming decades. The strategic Plan for Infrastructure and Transportation in Spain predicts that 43.7% of expenditure from 2005-2020 should be allocated to interurban rail. The driving idea behind this plan is to link all the provincial capitals in Spain with Madrid by the year 2020. Spain is currently leading the rest of the world in HSR construction projects considering that 80% of the miles under construction in the European Union closely mirror data metrics of AVE projects (Albalate, et. al. 2012). It is obvious that in the process of executing such large projects as HSR, challenges, problems, and even failures are quite inevitable. And for it to remain successful, construction management and leadership is critical. With effective management, overcoming the obstacles that arise is possible. For instance, during the construction of the €109M line that started in 2011, there were several unusual challenges encountered that required special measures be taken. An environment study revealed the presence of seven golden eagle nests which are a protected species in Spain. To avoid conflict with animal protection agencies as well as protect the birds, FCC had to construct seven new nests a few kilometers from the site. Also, since the reservoir is a nature reserve, FCC avoided entering the river in the build phase, which required the construction of a dramatic arched bridge. As a necessity, a bird protection system was set up on the deck to prevent the birds from striking catenaries or trains as they fly over the viaduct (Morgan, 2016). 4

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Working in joint venture with Administrador de Infraestructuras Ferroviarias (ADFI) enhanced the process, and while there were some minor problems, overall the project was successful. FCC has also established a temporary partnership with other contractors such as Acciona and Collosa for the construction of a high speed tunnel alongside the Madrid-Galicia line located in north–west Spain. Also, the Bolanos tunnel project raised a problem in a nearby town since the construction would impact a local religious monument. The project managers worked in collaboration with the local community to propose the most equitable solution, and together they decided to construct a new monument closer to the town which afforded better access. A study conducted (Englund, et. al. 2019) showed that leadership qualities are an important part of a project manager’s portfolio. This indicates that construction projects need leadership skills to insure the successful completion of complex endeavor like a HSR system. Other research (Meredith et.al., 2017) suggest it essential for a project manager to be competent in four areas including; technical skills, project leadership abilities & effective communication, project management skills, and an entrepreneurial mindset. Using these abilities will increase the chance for a projects success, and it takes a skillful blend of these qualities for a successful project manager to handle all the unexpected challenges that managing an HSR system could encompass. From the beginning of construction, all these skills come into play, with no preference given to any one trait, yet some project managers might exhibit more a more technical aptitude, rather than strong communication abilities, yet can still manage effectively. This can depend on the morale of the team, and if they are inspired to perform at their highest level, thus compensating for some areas that project managers might be lacking. Ideally the perfect project manager would be strong in all these areas and possess a keen ability anticipate small problems & respond with appropriate measures, before they get out of hand. Proficiency in technical skills during construction of HSR in Spain was necessary due to several difficulties encountered in environmental impact, remote locations, challenging earthworks, and mountainous terrain compared with other European countries. 5

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This is the opposite of ideal HSR construction which requires the routes to have gentle grades & wide curves which are necessary for high speeds. Overcoming these challenges and assuring the safety & comfort of passengers presented unique opportunities for ACCIONA Construction which built the Spanish HSR network in the early 1990’s. The company drew upon its experience with traditional blasting techniques and tunnel boring machines (TBM’s) in the construction of over 158 km of high speed tunnels. Another key requirement of a functional HSR network is employment empowerment. In relation to this, the ADIF has brought different innovations to the system. The ADIF’s Technology Training Centre in Valencia designs and implements training programs in different fields such as engineering, construction, telecommunications, IT systems, and maintenance management. Consultation is also offered by 40 full time professionals and more than 1,000 part-time staff. Classrooms are equipped with substations replicas, switches and protection systems applied on the AVE network. Additionally, the trainees are provided with an artificial track and overhead catenary system for outdoor simulations, allowing them to hone their maintenance skills. However, due to limited resources in terms of space and money for creation of physical systems, digital tools like video tutorials, software stimulations and virtual reality have become very important. (Bolino, et. al, 2016) state leadership is, “all about giving direction, organizing people, motivating and inspiring others”. The five main leadership practices identified include; “modeling leadership behavior, inspiring a shared vision, challenging traditional processes, & inspiring others to act, by acknowledging their contributions”. In the case of California’s HSR construction, many projects objectives failed to attain their highest level of performance standards, not due to lack of equipment, resources or systems but due to a failure of human factors. Conversely, the Spanish HSR system has been successful in by focusing on the project’s objectives (Deakin, et. al. 2017). When the goals are clear, minimal disruption ensues, as people desire to follow leaders who

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inspire confidence. People also perform better once they are, motivated, supported and directed by capable leadership. Leadership is fundamental for any HSR project to be successful, in particular, the government‘s clear role is a main ingredient for the success of an HSR system, unless private finding can be obtained. The government must maintain adequate and predictable funding during the construction of a HSR network. California began their HSR project, claiming that the support of the state government was needed to establish a plan and then the construction will commence. The assumption was established that construction would be sustained by a different public-private partnership. Even if this materialized, it is a very risky assumption. The failure to identity a long term source of funding beyond federal grants, and lack of a public-private partnership leaves the HSR vision with uncertainty. Even if the California’s HSR system passes the test of sustainability and resolves its financial problems, there is still the question of whether a HSR system is an appropriate investment for the state. There was poor planning by not establishing a connection between San Francisco, Los Angeles, & San Diego before connecting more remote locations after the successful completion of this first route. It is failing in terms of in terms of consultation, authority, public administration structure, and controls, to deliver the much needed HSR in California to provide relief from the overused highway & airline network. Additionally California’s HSR has been linked with poor contract management, rushing into construction with shortsightedness, insufficient risk management, failure to review invoices from contractors and an overreliance on management consultant firms to monitor some contractors and provide costs estimates (Vartabedian, 2019). In Spain, there has been a substantial institutional effort in implementation of HSR. However, in California there has been limited attention devoted to HSR in the public sector which for a long time has been the responsibility of a small underfunded public corporation that manages intercity passenger service and managing freight terminals. The 7

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California High Speed Rail Authority was initially given the responsibility of preparing a plan for the construction and then unsupported. Its tenure was later extended and then made permanent before shifting under control of Caltrans, where it relied on the available planning, engineering and management staff for assistance. However, Caltrans lacked the adequate relevant experience on how a complex project like HSR should be planned and executed (Henríquez & Deakin, 2017). Generally, the failure in California’s HSR generally demonstrates poor quality of planning and fiscal ineptitude in leadership. The growth of construction management has recently led to increased emphasis on leadership in construction. HSR resulted from a surge in demand for more efficient transportation solutions that are synergistic with continuing economic development, as demonstrated by Spain, Italy, Japan, China and France. Success is not just measured in access & reliability, but in the manner HSR can enhance the economic environment by linking cities with efficient transportation systems. HSR can also be measured by the ability of the service to satisfy the necessary requirements of contracts, standards, regulations, procedural documents and also the desires of the passengers and society. During the construction of the first high speed railway in Spain, the Railway Transportation Infrastructure Bureau wanted to assure project quality. It implemented a special feedback system that aided the project’s construction management in receiving feedback during construction and improve on quality management requirements and construction measures. The leadership in Spain chose not to focus on efficiency first, rather giving priority to pursue the goals of equity and cohesion by starting their projects in corridors that had relatively low traffic volumes, then promoting future regional development, after early successes. Initially, the Madrid –Seville corridor was given more priority over more populated routes like those along the Ebro River Valley and the Mediterranean coast (Henríquez & Deakin, 2017). California tried to emulate this approach, however has been unsuccessful, as people were critical of HSR in rural areas, where demand was initially low. In this case, California might had more foresight & linked San Francisco to Los Angeles 8

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first where demand would be high. Or an inland city like San Bernardino to Los Angeles. It seems that the planning effort was lacking, which has led to criticism of the project, which has ben dubbed “the train to nowhere”. Conclusion The experience of HSR in Spain demonstrates the careful manner in which the implementation of HSR was done. Urbanization patterns, economic conditions, social preference, infrastructure options and the political situation were carefully analyzed to insure a successful outcome. HSR implementation in Spain can only be understood after considering the fact that the infrastructure investment was a part of a bigger strategy for Spain’s integration into the EU and improving the country’s economic outlook. This is the reason why part of the project was partly financed with European Union funds. Also, the conventional long distance road and rail network in Spain were not in great condition, making upgrading these systems almost as expensive as funding HSR. Following the bold decision of their countries leadership, the implementation of HSR has been very successful, even with the systems perceived overcapacity. HSR has led to increased usage of rail, a reduction of air travel, is energy efficient, and fulfilled regional management objectives. In Spain, public opinion has been in favor of the huge expenditure needed with the only opponents being small groups of economists that did not consider the long term benefits. The United States should consider the example of HSR in Spain carefully, and build upon their success.

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Bibliography: Albalate, D., & Germà B., (2012) The economics and politics of high-speed rail: lessons from experiences abroad. Lexington Books Acciona (2018) Towards the future on high-speed rail, Acciona Corporate, from: https://www.acciona-construccion.com/pressroom/in-depth/2018/junio/towards-futurehigh-speed-rail/ Albalate, D., & Germà B., (2012) The economics and politics of high-speed rail: lessons from experiences abroad. Lexington Books Alfalla-Luque, R., Medina-López, C., (2015) High-speed Rail: Seville - Madrid Line A Megaproject case study, from: California High-Speed Rail: Under Construction and Moving Forward, from: http://www.mega-project.eu/assets/exp/resources/High-speed_Rail_ Seville_-_Madrid_Line.pdf Anantatmula, V.S. (2010) Project management leadership role in improving project performance, Engineering Management Journal, 22 (1), pp.13–22, Academic Search Complete, from: http://web.nch...