NEXALA, A technology provider to the mass transport sector, says it has its strongest sales pipeline ever, having recently won the contract to supply National Express’s East Anglia (NXEA) fleet with its remote train-monitoring system.
The Dublin firm’s remote diagnostics technology, called Spectrum, takes real-time data from sensors fitted on every train in a fleet. The data is then sent over the 3G mobile network to the operator’s control room.
This is said to identify possible faults early, allowing rail firms to reduce the time needed for repairs and maintenance. The system can also recommend actions to prevent trains from having to make unscheduled stops.
Rail operators incur lower financial penalties by improving their service and reducing delays. Since Nexala’s Spectrum system was implemented at NXEA, the number of fault-free miles for each train has increased by almost 60 per cent, while delay minutes have reduced by 40 per cent.
Spectrum is also claimed to increase the lifespan of trains that have been in use for several years, saving rail operators from having to replace rolling stock. The NXEA deal is the first of its type in the UK rail sector where sensors have been retro-fitted to a complete fleet of existing trains.
Although the value of the deal has not been disclosed, Nexala chief executive Dr Karl O’Connell said these kinds of remote diagnostics contracts are usually worth €300,000-€500,000 per fleet.
He said the company has its “strongest ever” sales pipeline and stands to benefit from increased government spending across Europe in rail upgrades. “We would see a doubling of revenue this year and about a 50 per cent growth the year after,” he said.
Formed in 2002, Nexala has won contracts in Ireland, Britain, the US and continental Europe, and it has agents and distributors in Asia and the Middle East.
Customers include Irish Rail, Hitachi Rail Europe, London Midland, Mersey Rail, National Express Group, Go-Ahead group, SBB, Alstom, Bombardier, Siemens Transportation and RFF.
The company is looking to expand further, with the US market high on the list since the Obama administration earmarked $8 billion (€6.2 billion) in grants for a high-speed intercity rail network earlier this year. “All governments are investing in mass transit systems. It plays to a political, green agenda,” said Dr O’Connell.
Nexala is owned by its founders and staff, along with some international private investors and Enterprise Ireland. The State agency’s grant funding allowed Nexala to develop the Spectrum remote diagnostics technology in the first place.
“With the new product, we’re seeing four or more additional large deals this year,” said Dr O’Connell.
The company’s other main product is the Equinox transportation management system which it acquired from a British firm in 2006.
Nexala raised €1.5 million in funding the same year but Dr O’Connell said the company would not need further investment.
“We see ourselves as adequately funded from organic revenues,” he said.
The company employs just over 60 people – 30 in Dublin and the remainder split between offices in London, Derby and at France’s technology hub in Sophia Antipolis, close to Nice in the south.
