The liberalisation of the railway system has progressed intensely since the introduction of the EU’s ambitious and large-scale fourth railway package for the commercial long-distance rail market in 2016. Eliminating the exclusive rights of existing operators has been a core objective of the legislation movement from the outset.

The first railway package introduced in 2001, made public tendering a standard process. Railway companies for the first time were given the chance to enter this market under a free competition model that respects the principles of transparency and non-discrimination. This opened up opportunities in the European railway market for any European rail operator, public or private, from any country. Competition between incumbents and new players in the railway market has created greater capacity and inspired new technology innovation and services for travellers. Healthy competition is only a good thing, especially when it aims to drive down the prices for travellers, improve transport services and reduce the transport’s carbon footprint. However, in a highly complex and evolving railway industry gaining and maintaining a competitive edge is challenging. And for new entrants and incumbents wanting to claim new railway contracts, where do they start, and what are the important considerations for managing the tender, procurement and project maintenance processes involved?

Leading by Example: The French Railway Market

The French railway market is dominated by SNCF, which operates the majority of the country’s rail services. The company is responsible for the operation and maintenance of the rail network, as well as the provision of passenger and freight services.

The railway market in France has undergone significant transformations in recent years driven by the need for modernisation and improved efficiency of passenger services and experiences. And faces several challenges, including an aging infrastructure and pressing environmental concerns, relating to carbon emissions and noise pollution. As such the French government has adopted an aggressive and meaningful strategy with €100bn investment over 16 years to expand and upgrade the country’s rail infrastructure, with key objectives of improving daily travel and reducing carbon emissions.

Underpinning this transformation in the French railway market is the call for tender structuring process now that passenger rail transport is open to new entrants on lines formerly reserved for national operators. For example, Italian rail operator Trenitalia has operated Frecciarossa trains on the Paris–Lyon line since autumn 2021, and Spanish rail operator Renfe has served the Paris–Marseille corridor since 2024. France has seen a significant increase in the number of private rail operators, offering a range of services from high-speed trains to regional commuter services. And companies such as Ouigo, a subsidiary of SNCF have disrupted the traditional rail market by offering low-cost, high-quality services that appeal to a wider range of passengers.

However, for the many tender successes, there have been failures too. The open-access rail co-operative Railcoop had been hoping to rejuvenate the Bordeaux to Lyon route but failed to ever launch the passenger service and went into liquidation. Whilst it is not clear what exactly went wrong, it should be a stark reminder that the tender application is just one element of the process. Strategy, planning, and maintenance to optimise any supply chain service infrastructure is an ongoing challenge.

The opportunity for private companies to contribute to the development of the country’s railway infrastructure is a highly lucrative one for companies of all sizes and specialties. If they get it right for the long haul. Entering a highly competitive new market presents uncertainties and risks with strict compliance procedures that need to be adhered to. On top of this, an aggressive price strategy coupled with a low carbon footprint should always be a top priority for any tender application.

It is of utmost importance to understand the railway tendering process and develop a structured approach for securing and maintaining contracts in the evolving rail industry.  At Milexia we recommend a strategic four-step process to gain a footing in the competitive French railway market.

Here we outline the four-step process, referring to a case study for the renovation of the TGV Atlantique trains on the SNCF Hellemmes-Lille maintenance site in two phases, OPMV1 and OPMV2. Involving the supply of electronic component kits for the upgrading of electronic boards on 1st generation TGVs, of several categories and on several TGV models.

Stage One: The Qualification Phase

The tendering of rail services subject to Public Service Orders (PSOs) is a long and complex process and sets limited timescales for bids meaning bidders have limited time to prepare their offers.

The perimeter of the tender must be properly defined and qualified from the outset. New entries should identify the robustness of their value proposition against the perimeters of the tender, including operating costs, maintenance costs, and rolling stock availability.

Ensuring that rolling stock is available to enter the market in the timeframe set by the tender requires an agile business model to be in place to adapt to changing market conditions and demands. Any tender application must demonstrate a commitment to safety, quality, decarbonisation, and sustainability, showcasing relevant certifications and innovative practices. And must be backed with hard evidence.

For TGV Atlantique trains tender project this involved:

1. The Identification of current component references from the information of the operator and defined schematics.
2. An in-depth meeting with the operator to finalise the list of requested components and their technical equivalents according to the life phase of the component, the obsolescence of certain components, and their need on each type of train of the different types of TGV, Standard and Duplex.

Stage Two: Project Tenders Offer

For driving the contract forward ideally, new entrants into the railway market should consider assigning or outsourcing a skilled bid team – experts in rail engineering with strong technical skills, project management, and financial expertise. And who can advise on how best to utilise existing in-house solutions and optimal procurement needs and standards, in line with a roadmap for new product development.

For TGV Atlantique trains tender project this involved:

1. Identification of sources of supply for all components to be included in the supply kit.
2. Establishment of a complete pyramid structure of kit nomenclature – corresponding to the renovation of a board, to the type of train and TGV.

Stage Three: Supply Chain Management

From stock availability, quantities according to their needs, and adapting the multiple small sites available to serve the infrastructure.  The winning organisations are those that can develop a forward-thinking approach for every part of the supply chain, from rolling stock procurement and demand planning to parts delivery and maintenance. And show agility for production delivery in line with defined timelines.

For TGV Atlantique trains tender project this involved:

1. Presentation to the operator of the methodology for the supply chain implementation plan and process.
2. Establishment of a three-year supply schedule and the two phases OPMV1 and OPMV2.

Stage Four: Ongoing Installation and Maintenance

Effective planning, coordination, and execution are essential for ensuring the timely completion of projects while maintaining high standards of quality and safety.

It is about being meticulous with the coordination of the lifetime of a project and building strategies aligned to KPIs. From planning and scheduling site installations, implementing safety protocols and regulations for compliance to managing resources, and organising logistics.

For TGV Atlantique trains tender project this involved:

1. Implementation and monitoring of the renovation operation.
2. Proper identification of the components necessary for each application and meeting the operator’s technical requirements.
3. Complete traceability of the source, origin, and quality of the components supplied.
4. First-class productivity and industrial performance through the implementation of a structured process.
5. The delivery of ready-to-use named-out kits made available for the trains undergoing maintenance, in line with the schedule requested by the operator.
6. Economic performance indicators and reporting for the operator.

Conclusion: Realising the Opportunities From Railway Liberalisation

Whilst there is a huge opportunity for new incumbents to make their mark and profit from the railway liberalisation movement, it is not easy. Winning the tender is just the beginning. Navigating opportunities from EU-Rail liberalisation must be guided by specialised expertise for the definition, realisation, monitoring, and maintenance of any project. Only then can new entrants into the market truly make an impact and help railways become socially and economically sustainable.

By Laure El Mhadder, Sales Director Electronics at Milexia France and Alain Gorrec – Integration Advisor at Milexia France

As seen in Railway Techonology, August 2024

Lithium-ion batteries (LiB) are powering this green revolution, providing a rechargeable, high-energy power source that is far superior to any other commercially available battery option.

The market for LiB is projected to hit $100 billion by 2025, up from US$30 billion in 2017. But this journey has not been without challenges. Manufacturers are ever on the lookout for ways to scale up LiB production quickly and affordably to meet demand, but they must do this while adhering to the quality and safety control requirements of a potentially dangerous and volatile energy source. Lithium-ion batteries must be handled with care, and a meticulous approach to the early-stage production process is paramount. This is why science must be applied if the LiB-reliant EV industry is to evolve sustainably and successfully.

The case for scientific instrumentation

The main problem with LiB is that they are prone to overheating and blowing up, potentially precipitating fires that can destroy an entire vehicle. Less dramatically, they are also liable to a short life span due to the constant recharging that must be done.

Lithium-ion technology has downsides when it comes to the environment as well. Extracting the necessary raw materials requires large quantities of energy and water. To make one ton of lithium requires about 500,000 litres of water and can have collateral side effects such as the poisoning of reservoirs and associated health problems. The conditions for the mining of Lithium at scale are notoriously unsafe for workers. Better recycling and an increased lifetime of LiB is therefore crucial if we are to minimise the need to mine huge quantities of its raw materials.

Scientific instrumentation of LiB addresses all these challenges. Using scientific instruments, a systematic approach can be meticulously applied to obtain the highest quality of LiB, with the best levels of homogeneity and safety. When recycled in a laboratory, batteries are sealed and degassed. This is necessary both for performance and safety reasons and means they cannot be opened for repairs in a mechanic’s garage. When a battery’s lifetime is finally over, and it needs to be replaced by a new unit, it must undergo a process in which it is reduced, shredded and recycled. This process is constantly being fine-tuned as part of the need to meet ever-increasing demand, and also to balance both economic and ecological considerations.

The right instrument for the job

The right scientific instrument is always fundamental to obtaining the data needed for the quality assurance and quality control (QA/QC) of any material. In the case of LiB, that job is split into various parts. A battery has two electrodes (anode and cathode), and a separator layer which divides the electrodes from each other. There is an ion-conductive electrolyte that fills the pores of the electrodes and the space inside the cell.

The production of LiB is a complex process that involves several key steps, with high precision required for ensuring the final battery’s quality and performance. The systematic scientific process for LiB manufacturing is as follows:

1. Mixing – the precursor materials for the cathode and anode are combined, making slurries where they react leading to small particles of the final materials. The production of slurry requires not only active materials but also conductive additives, solvents, and binders.
2. Coating – next these particle slurries are coated onto the current collector through pipework or in sealed storage tanks.
3. Roll pressing – electrode layers are flattened evenly by pressing, so homogeneous layers can be built.
4. Cutting – by slitting and notching, electrodes are cut into battery-size pieces. This process involves cutting the sheets to the desired size and alternating anode and cathode layers with others, like membranes or isolates, in a cake-like fashion. This accumulates the maximum amount of energy in the minimum possible weight.
5. Cell assembly – electrodes and separator films are stacked to build the pouch battery. Electrode cutting can be performed using a mechanical punching approach or laser separation technique.
6. Injecting – the electrolyte is placed into the cell with the aid of a high-precision dosing needle, ensuring proper vetting under vacuum conditions. It’s a critical step due to safety and quality considerations.
7. Formation – the first charge of the cell, crucial for Solid Electrolyte Interface (SEI) layer formation and battery performance. When charge-discharge cycles are performed, the batteries are allowed to stabilise.
8. Degassing – the process of electrolyte degassing is then carried out in a vacuum to ensure the Lithium-ions can move freely, enabling efficient charging and discharging. The gas formed during charging, especially in pouch cells, is removed to diminish the possibility of a fire hazard. If the degassing step is omitted, a large portion of the gas evolved is consumed over time. It is also essential to remove gases and contaminants to retain the purity of the electrochemistry for optimum performance and long life of the battery cells.
9. Cell finishing and aging – Cells are monitored under controlled temperatures.
10. Final Inspection – the finished product should be given a thorough final inspection inside an air-tight casing, with metallic connectors to the anode and cathode layers.
11. Testing – before shipping, the LiB should be tested several times with charging and discharging cycles.

Each step must be scrutinised and examined using the most appropriate technique. For example, anode and cathode particle size and composition in the first step has to be observed using scanning electron microscopes. For every step, skilled scientific instrumentation experts will identify the most crucial quality features, and the most delicate and prone to failure.

Apart from traditional temperature or humidity monitoring, production control of LiB may require the use of metallographic optical microscopes, hardness testing, or high-tech devices such as electron microscopes equipped with electron diffraction spectroscopy. The use of such techniques also demands specific sample preparation methods, such as precision cutting saws, mechanical or electrochemical polishing, and focused or broad ion beam instruments.

The absence of defects or contamination can only be determined by quality control procedures, which are performed by scientific personnel in manufacturing facilities, sometimes in their own QC labs through sampling, and sometimes in-line, in other words in real-time during the production process in an automated way.

Quality results have to be documented and be traceable for every step, as buyer companies must audit their manufacturers to ensure that they don’t cheat and that they’re buying reliable and safe materials. The finished good, whatever it is, should be delivered with test results. There are a lot of regulations and paperwork surrounding quality and safety. Sometimes, there can even be one or more “official” analysis techniques that are mandatory in a particular region.

The benefits of rigorous science

In the rapidly evolving Gigafactory environment, manufacturers are eager to achieve more from their LiB battery production for productivity, scale in demand, cost efficiency, and sustainability. By ensuring product quality early on in production, it is possible to achieve these goals.

The benefits of rigorous liB scientific instrumentation for gigafactories include:

• Avoiding defects in the production process that result in product scrappage and unnecessary costs that would have been avoidable had defects been detected earlier in the manufacturing process.
• Eliminating lithium-ion cell fires that can occur under conditions of mechanical, thermal, or electrical stress or abuse.
• Certifying the compliance of the final product so that it meets target technical specifications and tight regulatory requirements. The EU’s Batteries Regulation became law in July 2023 and contains obligations that require companies to identify, prevent and address social and environmental risks linked to the sourcing, processing and trading of raw materials such as lithium. The manufacturer must comply in drawing up certain technical documentation as proof and is subject to surveillance.
• Guaranteeing the incoming finished product is delivered to specification to avoid customer complaints, refunds, and costly reprocessing.

Well-implemented, end-to-end scientific instrumentation analysis helps uphold quality across a wide range of production processes, from the processing of raw materials and production quality control to final inspection. It is important to remember that even very small defects can significantly impact the performance of the final product, its lifetime, or even its safety.

Taking ethical responsibility

Lithium-ion batteries are crucial not just for powering the EV market but enabling our modern world and ensuring a low-carbon future for us all. It is in everyone’s best interests to ensure that these batteries are safe, clean and long-lasting.

Recycling and increasing the lifetime of LiB is key in reducing the need to mine huge quantities of the precious material and so reduce its impact on our planet. LiB scientific processes and product quality are important parameters affecting the operational lifetime of final products and their durability.

Advanced scientific analytical techniques are also behind new developments in alternative battery science, helping to manage the lifecycle of these batteries responsibly. For example, rapid developments are already well underway in the use of blockchain technology for real-time data insights and the tracking of raw materials. This helps with collecting data on battery conditions and performance, from when the raw materials are first mined through to actual use in an EV battery.

It is essential for policymakers, and industry stakeholders to remain vigilant in their assessment of the most environmentally sound options for the future of electric-powered vehicles. When it comes to lithium-ion batteries, the industry must invest in alternative solutions, while in parallel remediating and reducing the impact of lithium mining. Recycling and increasing the lifetime of these batteries is key in reducing the need to mine huge quantities of a finite and valuable material. This effort should be accompanied by new lithium mining operations with strict environmental laws and regulations and investment in advanced mining methods capable of extracting lithium from seawater.

By Thierry Grenut, Sales Director, Milexia France (Scientific Instrumentation BU)

As seen in Electro Optics, July 2024