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Guangzhou Metro Corporation Works With IBM to Modernize Rapid Transit in China


GUANGZHOU CITY, CHINA .- Guangzhou Metro Corporation (GZ Metro) has selected IBM (NYSE:IBM) technology and services to improve the City’s rapid transit system serving more than two million passengers a day. IBM will help GZ Metro manage all of its IT and physical assets including four commuter lines, 60 stations and more than 116 kilometers of track.

Smart transportation systems, like GZ Metro, help improve safety and reliability, while reducing travel delays, emissions and fuel consumption. As part of the Guangdong Provincial Government’s Five-Year Development Plan (2008 to 2012), the government will improve Guangzhou City’s infrastructure to support the organization of the 16th Asian Games, held next year. The investment program is aimed to turn the public transportation system into an environment-friendly, intelligent and digitalized transportation system.

Currently, GZ Metro’s various assets are estimated to be worth more than RMB 20 billion (US$2.9 billion). The efficiency of GZ Metro is dependent on complete visibility across all its assets in order to provide safe and uninterrupted railway services. Under the agreement signed in February 2009, GZ Metro is working with IBM to introduce an Integrated Asset Management (IAM) System as part of its modernization efforts. The IAM system will be the first of its kind for China.

With multiple software applications installed, GZ Metro is currently only able to draw a partial view of its total assets. As a result, the company does not have the visibility it needs to achieve efficiency and on-time service. To provide safe and uninterrupted railway services, GZ Metro wanted to build an advanced, secure and reliable IT platform to manage its software, services and physical assets including tracks, carriages, advertising spots and shops in the train stations.

“With traffic congestion on the rise in cities across China, it has become critical to build smarter rail systems and governments are investing heavily in these projects,” said Marc Chapman, General Manager, Global Business Services, Greater China, IBM. “By having control over each asset across the entire rail system, Guangzhou Metro is able to improve safety and on time arrivals for passengers and commuters.”

For the implementation of the IAM platform, IBM Global Business Services will build a uniform asset classification and coding system for all assets, as well as integrate the operational and financial management processes in investment, construction, operation and asset maintenance -- throughout the entire life cycle of asset management. The system will improve the GZ Metro’s transparency into their operational processes, which can enhance asset-related decision-making, asset service delivery and return on investment. This will contribute to GZ Metro’s business objective of improving efficiency and increasing asset uptime.

The IAM platform, powered by IBM Maximo software, will help GZ Metro improve maintenance procedures by integrating the overall work procedures with contract management, as well as monitor and manage the maintenance equipment. This will lower the operational maintenance cost while improving productivity and prolonging the lifespan of the equipment.

The IAM project is instrumental to supporting the GZ Metro’s expansion plan. In anticipation of a sharp increase in the number of passengers, the rapid transit railway operator is investing RMB 12 billion (US$1.76 billion) this year to expand the networks which will be able to operate nine commuter lines. As a result, GZ Metro’s daily passenger capacity will increase from two to four million.

Metro had evaluated the asset management offerings from IBM and several other international IT companies. IBM Global Business Services was chosen as the consultancy partner for its deep industry experience and extensive business and technology experience in asset management.


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