The Great Transport Debate The Rail Network Michael Roberts Chief Executive, ATOC.
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Transcript of The Great Transport Debate The Rail Network Michael Roberts Chief Executive, ATOC.
The Great Transport Debate
The Rail NetworkThe Rail NetworkMichael RobertsChief Executive, ATOC
•<1% of total public spend - but eg 55% of UK population use trains
•Part of daily life (eg more stations than Tesco or McDonalds outlets) - but also long term sector
•Broad high-level Westminster consensus on high speed rail
•Rail should be a national priority, not a political football
Rail and politicsRail and politics
Rail and public/private sectorsRail and public/private sectors
•Government sets high-level goals eg HLOS
•5-year funding periods for NR and others (eg CP4 to 2014)
•Franchising (c 20 operators) sets service requirements
•A partnership which has evolved and delivered – but which can be built on
CapacityCapacity CustomersCustomers
CostCost CarbonCarbon
Rail and the four C’sRail and the four C’s
Capacity•£4.5bn in rolling stock & key schemes eg WCML upgrade
•CP4 = trains, stations, bottlenecks
•Passengers at post-WW2 high - yet demand to double in 30 yrs
Customers•83% satisfaction & over 90% punctuality – a record
•Value for money remains challenging
•Other areas eg stations, information, integration
Capacity & CustomersCapacity & Customers
Cost•By 2014: NR efficiency goal of 21% & half of franchises to pay premia
•Major projects – big part & challenge of CP4
•Taxpayer funding @ 50% instead of 25%
Carbon•Rail emissions only 0.5% UK total (and down 25%)
•But no room for complacency eg greener cars
•Modal shift and eg electrification key to its contribution
Cost & CarbonCost & Carbon
The way forwardThe way forward
•Honour commitments on rail investment
•Reinvigorate public private partnership in rail
•Plan ahead for next 30 years
•Projects help economic agenda – long term benefits eg Crossrail
•Schemes to 2014 (eg trains + network + stations) work as package to improve services
•Major programme but modest impact – eg only addresses 60% of total rise in demand
•Unwinding franchise agreements/regulatory settlement would be difficult and bad for UK plc
Way forward 1: Way forward 1: CommitmentsCommitments
•Government to focus on setting and funding high-level goals (eg HLOS, SOFA)
•Longer & smarter franchises which enable TOCs tofocus more on qualityinnovate in providing outputsdeliver better VfM
•Joint Network Rail-TOC incentives to drive efficiency
•Continued primary ORR role in promoting more customer-focused Network Rail
Way forward 2: Way forward 2: PartnershipPartnership
Way forward 3: Way forward 3: PlanPlan
•Work with industry to set CP5 decisions in 30 year context
•Clarify key rail outcomes eg more emphasis on cost-efficiency
•Set fresh challenges eg where next on performance
•Develop joined-up strategy – new lines, electrification, rolling stock, stations, other modes
‘‘First Friday’ decisionsFirst Friday’ decisions
•Adopt smart approach to next franchises
•Resolve key projects eg rolling stock strategy
•Flesh out high speed strategy – route, phasing, wider network, funding
•Press ahead with review of industry cost
•Set out strategy on funding and fares policy
•Gear up to HLOS 2
SummarySummary
•Rail (and transport) needs to be a political priority – and area for consensus
•4Cs – capacity, customers, cost, carbon – remain the main rail policy and delivery challenges
•Getting the best of public and private sectors is key to rail success