Strategizing for operational, sustainability of high-speed train
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
The Jakarta Post - Menyusun strategi operasional dan keberlanjutan kereta cepat
5 September 2023
By: Taufikurrahman
Jakarta - In today's fast-paced world, high-speed trains stand as symbols of efficiency and innovation in transportation. As the Kereta Cepat Indonesia China (KCIC) prepares to launch, there is a wealth of wisdom to be gained from established high-speed train operators around the world. By studying their strategies for profitability and business performance, KCIC can chart a course toward operational excellence that is both efficient and economically sustainable.
Government support and substantial investment in dedicated tracks by countries like Japan, France and China have yielded strong financial returns. These investments have not only facilitated seamless operations but also generated economic activity and spurred local development. Aligning with government and private stakeholders for infrastructure investment and maintenance can set the stage for a thriving high-speed rail network that benefits both passengers and the economy.
Cutting-edge technology adoption is often a cornerstone of profitability. By incorporating innovations like automatic train control systems and predictive maintenance, high-speed operators enhance operational efficiency and minimize service disruptions. Utilization of advanced technologies can lead to reduced operational costs, excellence in safety and increased passenger trust.
Effective planning contributes to streamlined operations and optimized resource allocation. The Eurostar's coordinated scheduling across borders demonstrates how strategic planning can lead to profitability. High-speed train operators can replicate this approach by aligning schedules, routes and operational strategies, ensuring that resources are used efficiently to maximize revenues.
Putting passengers at the center of operations is a strategy embraced by Spain's AVE trains, which offer personalized services. Such an approach not only enhances passenger experience but also fosters customer loyalty, positively impacting revenues. KCIC can also cultivate a loyal customer base by offering tailored services and amenities that cater to the preferences of diverse travelers.
Investing in employee training pays dividends in terms of service quality and operational efficiency. Well-trained staff contribute to positive passenger experiences, leading to repeat business and referrals. KCIC can prioritize employee training to ensure a dedicated and efficient workforce, ultimately translating into better service delivery and improved business performance.
Profitability thrives when organizations embrace a culture of continuous improvement. Germany's Deutsche Bahn, with its commitment to refining services based on passenger feedback, exemplifies this approach. KCIC can establish mechanisms to gather passenger insights and use them to fine-tune operations, leading to enhanced customer satisfaction and increased ridership.
A robust safety culture is not only a moral imperative but also impacts business performance. France's SNCF prioritizes safety with advanced technology and stringent protocols, establishing trust with passengers. For KCIC, a comprehensive safety framework can not only ensure passenger well-being but also enhance its reputation, contributing to long-term financial sustainability.
Embracing sustainability is not just ethical, it is financially prudent. China's high-speed rail's commitment to eco-friendly practices not only reduces the environmental impact but also lowers operational costs. KCIC can adopt similar sustainable practices to reduce energy consumption, minimize costs and attract environmentally conscious passengers.
Government support and collaboration with private entities in the ecosystem can bolster profitability. KCIC can leverage such collaboration to secure funding, expertise and resources necessary for a thriving high-speed rail venture. KCIC's pursuit of long-term profitability and business performance can greatly benefit from international lessons in this area.
By considering infrastructure as an investment rather than a cost, KCIC can drive economic growth, job creation and increased tourism. Emulating the strategies of countries like China and France, KCIC can collaborate with the government to secure support for additional infrastructure investment and maintenance, spurring economic development along the rail route.
To achieve long-term operational sustainability, KCIC should position itself as a technological leader by continuously updating with cutting-edge solutions like automatic train control systems and predictive maintenance. Such innovations not only improve efficiency but also reduce long-term operational costs, leading to higher profitability and a competitive edge in the market.
Comprehensive strategic planning can lead to optimized schedules and cost-efficient operations. By working closely with government and key stakeholders, KCIC can ensure a coordinated approach that maximizes revenue potential.
Prioritizing passenger satisfaction, as exemplified by Spain's AVE, can foster customer loyalty and repeat business for KCIC. Through customized services, enhanced amenities and attentive staff, KCIC can cultivate a positive reputation that translates into increased ridership and revenue.
KCIC's investment in employee training can pay off in terms of superior service quality. By mirroring Japan's JR Central and Germany's Deutsche Bahn in fostering a skilled and motivated workforce, KCIC can provide passengers with exceptional experiences that drive repeat business.
KCIC's commitment to continuous improvement, akin to Germany's Deutsche Bahn, can ensure that services remain relevant and responsive to passenger needs. By integrating passenger feedback into decision-making processes, KCIC can drive business growth while maintaining high levels of customer satisfaction.
KCIC can prioritize safety as France's SNCF does, fostering a strong sense of trust among passengers. By implementing advanced safety technologies and adhering to stringent protocols, KCIC can establish itself as a safe and reliable transportation option, attracting more passengers and generating higher revenues.
A sharper focus on sustainability aligns with global trends and cost savings. By adopting eco-friendly practices, KCIC can not only reduce operational costs but also appeal to environmentally conscious passengers, contributing to financial performance while promoting responsible transportation.
Public-private partnerships can provide KCIC with the necessary resources for a successful launch. By harnessing government support and private sector expertise in the ecosystem, KCIC can ensure financial sustainability while offering top-tier services.
As KCIC embarks on its journey, lessons learned from international high-speed train operators underscore the critical role of profitability and business performance in operational excellence. By leveraging government support, embracing innovation and prioritizing customer satisfaction, KCIC can establish itself as a premier high-speed rail operator.
Through a commitment to employee excellence, continuous improvement, safety and sustainability, KCIC can thrive both financially and operationally. As Indonesia's high-speed train network comes to life, it has the opportunity to transform the nation's transportation landscape, bolster the economy, and provide passengers with an unparalleled travel experience that is both efficient and rewarding.
