Feature CREATING THE WORLDS BEST RAIL ENGINEERING ORGANISATION WORDS A NDREW BENNETT P HOTOS NETWORK RAIL Rail experts from SNC-Lavalin and Atkins have wasted no time following the end of the 100-day integration period. Shortly after it finished, teams from each organisation joined forces to win and deliver nearly half a million pounds of work to sector clients, with joint bidding also under way in markets such as North America and Europe (see panel below). This should reflect the opportunities ahead with significant benefits for the overall business as well as members of staff according to the leaders of rail operations that are becoming a joint entity. Both Richard George, Group Managing Director of SNC-Lavalin Rail & Transit Engineering, and Philip Hoare, Managing Director of Atkins Transportation division for the UK and Europe, are excited about the future. There are now things we can do because we have the horsepower to do them whereas we didnt have previously, says Richard. Remaining focused on the client Philip has a topical message for staff. Our market is so strong, I really dont want people to be distracted by the restructuring conversation, and to remain focused. Yes, its easy to say that but the reality is continuing to do a great job for our clients. Richard sums up the situation: Most people will carry on doing the same work for the same customer working for the same person. There will be a few people for whom there will be a change. Speaking to Richard and Philip at the Euston Tower headquarters of Atkins in London now the combined office for all staff in the UKs capital they are unsurprised the initial stages of working together have gone well. With a growing global rail and transit market and a shortage of the kind of skilled engineers that SNC-Lavalin and Atkins offer this bodes well. Richard says: From my perspective, all of the early contact between the two companies has been extremely positive; clearly the cultures are similar enough for there not to have been a massive culture shock. Philip agrees, adding: If you think about our backgrounds, our employees in the rail sector grew up together, know each other, went to same sort of colleges, worked in the same businesses, and buy their sandwiches in the same shops. Distinctive railway culture From a UK perspective, both organisations were already close in culture. Richard adds: Wherever I go in the world, there is always a railway culture that is quite distinct frankly, I never find it difficult to talk to somebody who is operating or engineering a railway anywhere! Another key acquisition benefit is that the two organisations complement the other very well strategically. Richard explains that SNC-Lavalin had aspired to broaden its business base and move more into engineering services rather than being seen in some markets just as a construction company. And, strategically, it needed to be stronger in certain growth areas Atkins found itself in a similar position. We were traditionally a UK-based firm, with a very strong UK presence, solid in our markets as SNC-Lavalin is in Canada, and we had ambitions for global growth. But we were struggling to grow in the way we wanted to, says Philip. Putting the two together is a good fit strategically and in terms of service line. Richard adds: They are a near perfect fit globally, with Atkins being very strong in areas where SNC-Lavalin has not been so strong. The acquisition also helps create balance in the business portfolio and, consequently, improves the businesss risk profile. Big projects can make huge sums of money, or lose huge sums, but technical and consultancy services are pretty steady work, says Richard. With an overall headcount of 50,000 people, joining the companies gives the new organisation the combined skills, strength, breadth and geographic scope to achieve much more than the two enterprises could separately. Together, we are undoubtedly the most formidable rail organisation, says Philip. From a rail perspective, just in terms of headcount, we have 2,500 people in rail in the UK and more than 5,000 globally. This is a really strong position to be in. This is bearing itself out already with the list of projects we have won since the end of the integration period. I dont think we would have won, had we bid separately. A different conversation A key example is the Bakerloo Line Extension on London Underground a live project with the overall bid led by Atkins with input from SNC-Lavalin. I dont think we would have won without the combined strength, says Richard. With many governments facing financial restrictions yet eager to expand their rail network, SNC-Lavalins private finance capabilities could also be pivotal on some projects. It fundamentally changes the game and allows us to take a different position, says Philip. The new organisation can now have an end-to-end conversation with its clients, according to Richard. We can do the feasibility study, we can design the new railway, fund it, build it, run it, and decommission it later, if you want us to, he says. We do that already in Canada, but now we can talk about doing that in realistic terms in places elsewhere where we never really had the strength, never had the horsepower to do it. By this Im referring to the number of people with the right skills to take things forward. He adds: The fact that we can put money on the table is a fundamental change in conversation. Everywhere in the world, people want more railways but every government in the world is strapped for cash, so they are all looking for ways of funding more railways. Digital transformation Increasingly, customers are also looking to make their operations more efficient and harness new technologies. On 30 October, SNC-Lavalin announced the acquisition of Florida-based Data Transfer Solutions LLC for US$45 million, a purchase designed to enhance the companys service offerings in digital asset management. Atkins is seen as particularly advanced in the digital field and there is a desire to continue to be a pioneer in driving a digital railway. The organisation will develop its digital tools to help clients in a range of ways, including maintenance work, managing and storing records, and improving their operations. Philip says: This work is about how to use digital to improve design in the front end services we provide, in terms of making it more efficient and leaner, how we use digital in design and construction and use digital in operations and maintenance work. He is also keen to see the pioneering work on public mobility systems of the future, started by Atkins, continue. With predictions of greater urbanisation, issues to tackle include finding the best way for mass transport systems such as light rail to interface with heavy rail and other public transport systems. Off to a great start While there may be challenges ahead, both managing directors are highly optimistic. With the SNC-Lavalin Rail & Transit teams moving into the Atkins base in London, physical integration of offices will also be happening at other UK sites including Edinburgh, Manchester and Birmingham, as well as in Sweden. From my perspective the culture of the water cooler conversation is very important, says Richard. He adds: The cooperation between personnel at Atkins and SNC-Lavalin is more important than what we do with the structure. Together, we can make a better railway, and I genuinely believe and we should be proud to say we are the best rail engineering organisation in the world. Philip concludes: I feel excited too, Im keen to get on with it; weve had a great start and, as we move into the spring, I hope we can accelerate the benefits of working together. viewpoint@snclavalin.com snclavalin.com 1. At ht Neil Bruce, SNC-Lavalin President and Chief Executive Officer, and Heath Drewett, President, Atkins, discuss SNC-Lavalins rationale for acquiring Atkins EARLY WINS With the list of projects we have won since the end of the integration period, I dont think we would have won had we bid separately Philip Hoare Managing Director, Transportation, UK&E, Atkins The companies are a near perfect fit globally, with Atkins being very strong in areas where SNC-Lavalin has not been so strong Richard George Group Managing Director, Rail & Transit Engineering Live projects that SNC-Lavalin and Atkins have already been working on: Govia Thameslink Railway, driver accommodation Norwich Crown Point Midland Mainline electrification, two packages of work Crossrail Anglia, traction bonding design Bakerloo Line extension, London Underground The teams are also bidding together on several projects, including signalling design, control systems, electrification and other specialities in the UK, Denmark and Canada. snclavalin.com