Paul Carstens
Programme Director Asset Management – Performance-Based Maintenance at ProRail

Adrie Koster
Procurement Manager Maintenance at ProRail

Presentation title:
Performance-Based Maintenance: Improved Control on Operational Performance

Originally, the Dutch small-scale maintenance market existed out of three unique contractors. Lacking any form of competition, each contractor was privately awarded several contracts by ProRail. Over the last 20 years, this particular set-up gave way to small-scale maintenance costs, ultimately reaching an unsustainable level, causing ProRail’s grip on this development to falter. Moreover, the nature of these contracts contained insufficient incentives for optimization and innovation, and therefore did not afford ProRail the desired performance control over contractors. Finally, the maintenance in the contracts was controlled through the basis of prescribed activities and was focused on the reparation of failures, rather than their prevention, which led to additional discomfort for the traveler.

These adverse developments, together with increased pressure of compliancy to European Procurement Legislation, led to an acceleration of the development of a Performance-Based Maintenance market in 2016. This market is characterized by 21 distinct regions within the Netherlands, each with its own contract that is marketed through public tender. These contracts consist of the desired performance measurements for optimization, for which the responsibility of execution falls solely upon the contractor. The final objective is to carry out all the small-scale maintenance on the basis of these contracts, and to be fully compliant with European Procurement Legislation by the end of 2019.

In our presentation we will further elaborate upon the Performance-Based Maintenance program’s goals, more specifically, the program governance we set up in order to successfully achieve these goals. Additionally, the operational performance and financial results we achieved in 2016 will be showcased. Finally, we will discuss the internal obstacles facing the company, as well as the external market risks encountered during our first year and the respective measures taken in order to overcome them.

Paul Carstens is the Program Director of the Performance-Based Maintenance Program within the Asset Management division of ProRail, a government task organization maintaining the national railway network infrastructure. Before becoming a Program Director, he was an Operations Manager responsible for the day-to-day operations in several regions in the Netherlands. Prior to his several positions at ProRail he worked as partner at Horvat & Partners, a Dutch consultancy firm specializing in industrial infrastructure audits, assessments and advisory. Simultaneously as a project leader at the Dutch Safety Board, an independent research institution that investigates incidents at public and private organizations on which civilians rely for their safety. Paul holds a degree in Civil Engineering from the Technical University Delft and a degree in Economics from the Erasmus University Rotterdam.

The RailTech Europe 2017 Conference will explore the following three themes: