WRITTEN SUBMISSION FROM NETWORK RAIL 28 OCTOBER 2008

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1 WRITTEN SUBMISSION FROM NETWORK RAIL 28 OCTOBER 2008 Thank you for inviting Network Rail to participate in the Transport, Infrastructure and Climate Change Committee inquiry into the potential benefits of high-speed rail services. We welcome the opportunity to be involved. The enclosed submission (SPC/1-10/08) sets out details of works that Network Rail commissioned in July of this year looking into the case for building new rail lines across the network of Britain. The review will look at five of Network Rail's strategic routes, north and west of London: Chiltern, East Coast, West Coast, Great Western and Midland Main Lines. By 2025 many lines will be full up, especially those running to and from the north and west of London. This will happen even after we have implemented the investment to boost current capacity. With popularity for rail growing, we have to start planning for the medium- and long-term future. We have to see how we can meet the capacity challenge and see what solutions - including potentially, that of new lines -are deliverable and affordable. This review, working in partnership with other players in the railway industry, will kick start this process. Network Rail is uniquely positioned to take a whole network approach in planning the railway of the future. We have a thriving railway today and that must continue and grow to meet the economic and environmental needs of Great Britain. In the last decade passenger numbers have soared by 40% with 1.13bn journeys a year -the greatest number since when the network was twice the size. In that time too, the amount of freight carried has rocketed by 60%. All credible current projections point to similar growth over the next decade. Also, punctuality has improved to a point where 90% of services arrive on time. It is anticipated that an initial report will be completed in summer I hope our submission is helpful. Should you need any further information please contact Dave Boyce, Public Affairs Manager. 1

2 INTRODUCTION Network Rail - Background Network Rail is the owner and operator of Britain s railway and is responsible for its maintenance, renewal and for facilitating the enhancement of the network. We spend approximately 14 million a day maintaining, improving and upgrading the railway infrastructure (Scotland circa 1.5 million a day). Network Rail s main customers are the train and freight operating companies who run the country s train services. 25,000 trains move around Britain s railway network everyday (circa 2,300 in Scotland). Network Rail owns over 2,500 stations (344 stations in Scotland) the majority of which are leased to and managed by the train operating companies. Network Rail employs more than 35,000 people (circa 3,000 in Scotland) and owns and maintains 21,000 miles of track across Great Britain (Scotland circa 2,573miles). Our Legal and Financial Structure Network Rail is a not for dividend company with all profits reinvested to improve the railway. Our purpose is to deliver a safe, reliable and efficient railway for Britain. As a company limited by guarantee, we are a private company operating as a commercial business. We are directly accountable to our members and regulated by the Office of Rail Regulation (ORR). The Board runs Network Rail to the standards required of a publicly listed company. We produce an Annual Report & Accounts and hold an Annual General Meeting. Network Capability The demand for rail transport has grown by more than 40% for passenger traffic and more than 60% for freight traffic in the last ten years. The long term forecast suggests that demand for rail travel is likely to continue to grow. Network Rail has a programme to develop short term and medium term plans through the Route Utilisation Strategies and Business Planning processes. The New Lines programme is a strategic initiative to look at longer term options. There is a need to look ahead to identify the challenges that will face the railways in the future and to examine the options available to meet these challenges which represent value for money and are affordable. There is an opportunity for Network Rail to work with the Department for Transport and Transport Scotland and contribute to long term strategic planning process in the rail context. PURPOSE This document has been produced in response to the Scottish Parliament's Transport, Infrastructure and Climate Change Committee inquiry call for evidence into the potential benefits of high speed railways. It is understood that the Committee has agreed that its inquiry will focus on the five key areas set out in the following remit: To identify the potential economic and environmental benefits to be gained through the development of a high-speed rail network linking Scotland with major English conurbations, London and Europe via High Speed 1; Options for ensuring that the existing rail network within Scotland can connect effectively with any high-speed network; The practicalities and costs of constructing a high-speed line and the different options for routes and train types; 2

3 OBJECTIVES The potential for high-speed and improved links to achieve modal shift away from domestic aviation and long distance driving, as opposed to meeting increased overall demand; and To identify any barriers to the development of improved high-speed rail links. The remainder of this paper, in responding to this remit, sets out to explain the work we are currently doing under our New Lines Programme. The main focus of Network Rail s New Lines Programme is to test the hypothesis that in the future, the existing rail lines from London to the North and West will be operating at full capacity and that all available conventional tools to increase this capacity have been exhausted. In such circumstances there will be the need for additional intervention(s). The main objective is to develop and evaluate the options for possible such interventions, including the building of new lines, which could be high speed. The output would be a business case for one or more new lines. The planning process will take into account the fact that high speed railways have the following potential benefits: - Additional capacity - Journey time savings - Reduced externalities from other modes - Generated traffic - Wider economic benefits It is relevant to mention that the main reason for the construction of the first Shinkansen in Japan and the original TGV line in France was increasing route capacity. Information received from the UIC (Union Internationale des Chemin de Fer) suggests that High Speed rail has been able to divert traffic from air in the segment 300 to 600 km. It is in this distance slab that high speed provides a real alternative to air traffic. It has been determined by the UIC that the average external costs of rail journeys is only Euro 20 per 1000 passenger km, as compared to Euro 48 by air and Euro 87 by car. The external costs include urban effects, landscape, climate change, air pollution, noise and accidents. The scope for which we are developing a business case is the area broadly covered by the following five Network Rail Strategic Routes: East Coast Main Line, West Coast Main Line, Great Western Main Line, Chilterns and Midland Main Line. PROGRAMME ORGANISATION Network Rail is managing the programme with consultancy support. We anticipate completing the current phase of work by mid This will then inform the next stages of development and indicate whether there might be a suitable economic business case on other routes. Programme Governance. A Programme Working Group has been established to manage the programme. This consists of Network Rail, Department for Transport, Transport Scotland and the programme management consultants. The programme will engage with a group representing the wider stakeholders in the railway industry. 3

4 Wider Stakeholder Group New Lines Programme Working Group NR, DfT, TS, Programme management Consultants Programme Team PROGRAMME MANAGEMENT PROCESSES The business case development work will follow a structured planning process. It will comply with the strategic planning framework laid down by Department for Transport and Transport Scotland as well as the project planning framework of Network Rail. STAKEHOLDER MANAGEMENT AND COMMUNICATION Understanding the interests of the many and varied key stakeholders will be essential to programme success. As far as practicable we will attempt to establish the aspirations of the funders and rail users. The principles of stakeholder management and consultation will be laid out in the stakeholder management plan. 4

5 Stakeholder Management Plan Government DfT//TSRegional Governments Regulators ORR HMRI New Lines Programme Stakehold er Engageme Operators ATOC TOCs Suppliers ROSCOs UNISIG/signal NR Board Prof Heads Industrial Relations Unions European Other Railways Media in Europe Communicatio ns Plan FUTURE PROGRAMME After completion of the present work content in mid 2009, it is intended to use the findings of this project to drive both further development of the new lines which have been assessed and to develop a process by which future proposals can be assessed. 5