04.sum.priorities.qxd 4/1/02 10:40 am Page 25. The. priorities. short, medium and long term

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1 04.sum.priorities.qxd 4/1/02 10:40 am Page 25 The priorities short, medium and long term

2 04.sum.priorities.qxd 4/1/02 10:40 am Page Section 4 The priorities short term The administration of Railtrack provides an opportunity to secure a more robust and financeable industry structure. Short term priorities Skill shortages and structural pressures set limits on what can be achieved in the next few years. Nevertheless, improvements can and must be delivered. This section describes these improvements, which will provide a stable foundation on which to build the medium term priorities described in the next section. The SRA s focus will be on: developing the new industry structure, including the transitional arrangements; delivering benefits already committed, including safety programmes; improving performance back to pre- Hatfield levels and beyond; developing the major upgrade projects needed to deliver the 10 Year Plan targets; support for freight; the refranchising programme; implementation of national programmes of improvements throughout the network: an expanded Rail Passenger Partnership programme, the Incremental Output Statement (IOS) schemes, small scale freight schemes and Access for All, a major initiative to improve accessibility; tackling skills shortages and supporting innovation; reviewing policy options, for example on fares. The following sections set out the SRA s approach on each of these areas in turn. Developing the new industry structure The administration of Railtrack provides an opportunity to secure a more robust and financeable industry structure. The SRA is at the heart of this development process, working closely with Government and other stakeholders. A key area, which is being tackled urgently, is the creation of a better overall industry planning framework. To ensure the maximum output from a given level of input, all the costs, benefits and risks of any rail investment ought to be analysed in one single framework. The SRA and Rail Regulator have already taken steps to put this analytical process in place and it will be developed in greater detail over the coming weeks and months. The SRA is also developing, jointly with Government, the procurement framework for new enhancement projects. This includes looking at all stages of enhancement from prioritisation and initiation through development and implementation to operation and maintenance the objective being to increase confidence that the investment will secure the desired passenger and freight benefits in a cost-effective manner. The new framework will introduce new risktaking project partners through Special Purpose Vehicles (SPVs). In essence, this means creating companies to undertake the design, building and finance of enhancement projects. Work on this procurement framework is addressing the problems described in Section 2 Delivering major infrastructure projects. To persuade the capital markets to form a positive judgement about the new framework, and to attract investment in long term capacity and growth, the SRA and Government will provide further clarity and confidence over future work load, work type

3 04.sum.priorities.qxd 4/1/02 10:40 am Page and its timing, building on the project priorities identified in this Plan. However, the framework is not just a route to obtain extra funds. Opening up enhancements of the network to third parties has other objectives that will provide improved value for money: strengthening project management, improving the allocation of risk and, by introducing competition, bringing greater efficiency (including lower whole life costs), innovation and ingenuity in the development of the network. An important example of this new approach to the delivery of major enhancement projects is the East London Line extension, which is planned to be delivered through a design, build, finance and maintain arrangement. The SRA, in collaboration with Tf L, London Underground and the concessionaire, aims to deliver the new infrastructure in Delivering investment already committed There are major ongoing investment commitments that will be delivered in the short term, producing benefits across the country. They include: some 1,700 new coaches to be delivered by 2004, to replace 30 year old Mark 1 slam-door stock and cater for growth. The coaches will be introduced on the South Central, Connex South Eastern and South West Trains franchises. At the same time, improvements to the third rail power supply and depot provision, and some changes to platform lengths and clearances will be made. Replacement of the old trains will improve safety by eliminating slam doors and improving crashworthiness, and accessibility by ending the need for wheelchair users to ride in the Guard s van; delivery of other new coaches, particularly where there have been delays arising from the industry s acceptance process. All industry parties have a major role to play in ensuring that the acceptance process is managed effectively and that the new trains are, right from the start, at least as reliable as those that they replace. For electrically powered trains this has seldom been the case and this remains a significant issue going forward, particularly for performance (see Section 4 Improving performance ); completion of TPWS, which is designed to reduce the risk arising from Signals Passed at Danger (SPADs). TPWS is being installed at around 11,000 signals throughout the network and legislation requires completion by the end of 2003; major infrastructure and rolling stock investments on the West Coast Main Line and CrossCountry routes are in progress. There will be significant journey time reductions on the West Coast, and frequencies on CrossCountry services will be doubled, benefiting major regional centres such as Birmingham, Liverpool, Derby, Bristol and Plymouth. The SRA is committed to improving these routes, even though difficulties have been experienced to date with rising costs. The SRA is involved in a strategic review of the outputs of the West Coast project, which is likely to lead to some scaling back from the full upgrade originally agreed in 1997; completion of the Channel Tunnel Rail Link, relieving overcrowding on parts of Opening up enhancements of the network to third parties will provide better value for money.

4 04.sum.priorities.qxd 4/1/02 10:40 am Page Section 4 The priorities short term continued The SRA will establish a new Rail Performance Fund to help improve performance in the short term. Kent s congested rail network and bringing Paris and Brussels 30 minutes closer to London; commitment to opening new passenger lines and stations, through RPP projects such as Edinburgh Crossrail and the Vale of Glamorgan Line. Improving performance Section 2 The need for better performance highlighted the problem of poor performance. The SRA is working with Railtrack and train operators to get performance back to its previous 1999 peak and then improve it beyond that. Actions include: review of incentive and compensation regimes: the incentive regimes have been criticised for encouraging a confrontational approach between industry parties and creating perverse incentives. The SRA and the Association of Train Operating Companies agree that incentives provide an important contribution to performance management, but that the regimes must be reviewed and, where appropriate, better arrangements must be put in place. In addition, as franchises are replaced, or earlier if the opportunity arises, the SRA intends to introduce increased incentives to encourage improved performance. establishing a new Rail Performance Fund: there is a risk that some current initiatives to improve performance may stall while Railtrack is in administration. The SRA will establish a new Rail Performance Fund to help improve performance in the short term, and address that risk. One use of the Fund will be to provide co-funding of appropriate performance initiatives between the SRA and other parties (which might include Railtrack, TOCs, freight operators and rolling stock leasing companies). The Fund can be used to provide increased incentives for TOCs for whom there is no immediate prospect of a new franchise agreement. Over time the Fund is likely to be deployed to secure small scale enhancements to the network to provide added resilience at the same time as major renewal projects, particularly signalling schemes, are implemented. extending the SRA s benchmarking and capability reviews: the SRA already monitors TOCs through franchise contracts, but it proposes, in conjunction with ATOC, to extend the SRA s benchmarking and capability review processes into specific new areas such as rolling stock reliability and traincrew management. This will help identify examples of good practice that can be spread to other TOCs. It will also provide early warning of emerging problems, so that corrective action can be taken. easing the introduction of new rolling stock: the SRA has already become increasingly involved in working with TOCs, manufacturers and Railtrack on the effective management of the introduction of new trains. This will probably be the greatest single challenge to the industry s operational performance over the next three years, particularly in the South East of England, as a result of Mark 1 replacement. The SRA believes that the introduction of new fleets will be much smoother in the future if the case can be made for the construction of a national test track (see Section 4 Tackling skills shortages and supporting innovation ).

5 04.sum.priorities.qxd 4/1/02 10:40 am Page reviewing Passenger Service Requirements (PSRs): PSRs set out the minimum services operators must provide. They are being reviewed to establish whether changes could deliver a more robust timetable and extra capacity. The SRA is seeking to identify priorities for early action. measuring and improving customer satisfaction: the SRA will continue to expand the use of the National Passenger Survey (NPS) and other measures of service quality and customer satisfaction. Good practice in the delivery of customer requirements will be identified and encouraged amongst other TOCs. This will also inform the contractual requirements of new and extended franchises, to ensure that service quality is improved over time. In specific cases the SRA will fund or co-fund the development of new network-wide initiatives, a current example being real time train running information systems. Support for freight In the short term, investment in freight will continue to support the growth in both traditional and intermodal markets and will begin to influence newer markets. The SRA will be involved in the following schemes: a Company Neutral Revenue Support scheme will be introduced in 2002, initially directed at the intermodal and less than trainload markets. Under this scheme the grant will be allocated to key rail freight flows, rather than directed at specific operators; a relaunched Freight Facilities Grant scheme, administered by the SRA (and by the Scottish Executive for schemes within Scotland) will contribute to capital projects; mechanisms will be developed to provide funding for rail freight interchanges where the market is unable to take all the risk. In addition, the SRA will work with planning authorities to enable development of interchanges at appropriate locations and with the right facilities; the SRA will continue to promote the development of innovative freight technologies and facilities through a repeat of the successful Innovation in Rail-based Logistics competition. The refranchising programme The priorities for the SRA on refranchising are to: progress the first three replacements; continue simplifying the franchise map; refranchise the short term franchises in order to increase stability in the industry; implement new enhanceable franchises of up to fifteen years duration. The first three replacements The Chiltern, South Central and South West Trains replacement franchises combine significant rolling stock and infrastructure investment with measures to improve integration between modes of transport. They are key parts of the SRA s plan for improvement, and the SRA, the franchisees and Railtrack are working closely together to ensure that they are delivered as rapidly as possible. These negotiations have the goal of agreeing early delivery of key enhancements whilst permitting the full replacement deal to be signed later. The SRA will continue to promote the development of innovative freight technologies and facilities.

6 04.sum.priorities.qxd 4/1/02 10:40 am Page Section 4 The priorities short term continued The SRA has continued to review franchise boundaries so that they better align with market needs and local stakeholder priorities. Amongst the proposals in the South Central and South West Trains replacements are service improvements South of the Thames a first step in the South London Metro concept proposed by the Mayor and local authorities. Simplifying the franchise map Since its formation, the SRA has continued to review franchise boundaries so that they better align with market needs and local stakeholder priorities. It proposes to simplify the franchise structure by bringing services at key London termini under single control wherever possible. It launched a consultation on this proposal last year; this approach will bring passenger benefits, while also reducing operational conflicts at congested parts of the network. Measures taken or already planned include: creation of the initial phase of a new Wales & Borders franchise, aligned with devolved Government, in October The bidding process has started and the commencement of the new franchise is targeted for early 2003; the new Wessex franchise, covering parts of the West of England and the South West, was also formed in October In the context of simplifying the franchise structure, the SRA will consider the best way forward for this franchise and will make an announcement later this year; a new TransPennine franchise, which will bring improved focus to this key interurban market, is being let and will provide better links between Manchester Airport, Manchester, Leeds, Sheffield, Newcastle and other key centres in the North and North West; work on a new Northern franchise, combining the two existing large franchises in the North and North West. The franchise will feature local business units to improve service delivery in PTE areas. Expressions of interest have been invited, and it is expected that a franchisee will be selected by the end of the year; the existing Thameslink franchise will be enlarged to include the Great Northern and some services South of the Thames. A key aim is to ensure there is a strong operator in place throughout the time that the Thameslink 2000 project is being constructed, and thereafter. Refranchising will resume as soon as possible, reflecting the outcomes of the Transport and Works inquiry and the conclusions of the SRA-Railtrack procurement review that was announced in April There is a possibility of a two year extension to the existing franchise; letting of the new Greater Anglia franchise, combining together the existing Anglia, Great Eastern and West Anglia services, will begin in late 2002 and will bring together all train operations into London s busy Liverpool Street station under one TOC, delivering customer and operational benefits; during 2002 consideration will be given to the potential benefits of combining the First Great Western and Thames Trains franchises to provide improved market focus and realise operational improvements at Paddington; consideration will also be given to a possible future union of Silverlink County services with the West Coast franchise, and to the wider applicability of the Greater Anglia model.

7 04.sum.priorities.qxd 4/1/02 10:40 am Page the refranchising of the Scottish franchise will be carried out by the SRA, acting as a procurement agent to the Executive; the SRA is currently awaiting Directions and Guidance from the Scottish Executive, reflecting the results of its recent consultation on priorities for the development of Scotland s railways. Replacing the remaining short term franchises A deal has already been reached to extend the Midland Mainline franchise by two years, in return for a package of measures including new rolling stock and station improvements. The SRA s goal is to put as many of the remaining short term franchises as possible onto a more stable footing, through long term franchises where this is the most appropriate way forward. A priority is to refranchise those TOCs currently operating on cost plus contracts, in order to deliver better service as well as value for money. The enhanceable franchise To provide flexibility in the future, which is essential given the resource and financing constraints that affect the industry, the SRA will use an enhanceable franchise agreement for future replacements. Franchises will, in the first instance, be re-let assuming broadly a continuation of existing services, but taking account of new statutory and safety requirements. Prospective franchisees will also be asked for proposals for further improvements to services which could be made through greater flexibility but without increasing overall franchise support. This could require consultation with stakeholders. These might include changes to PSRs, fares regulation, overcrowding limits or other aspects of the price and quality of services offered. On top of this, the SRA will negotiate a menu of possible enhancement options, with an emphasis on short term benefits for passengers, including, for example, better information provision. Bidders will cost each item of the menu and options will be taken forward as resources permit, allowing the overall improvement programme to develop over time. The same mechanism could be used to allow larger scale investment projects to be developed and built as resources permit. The enhanceable franchises will normally be let on the basis of a fifteen year term, split into three periods of broadly five years each. Each TOC will be set challenging but achievable performance targets. Progress will be reviewed at the end of each of these periods, and failure to meet targets could result in termination of the franchise. Consultation on the enhanceable franchise concept is currently under way. Project development The SRA has allocated funds to help develop the medium term projects described in Section 5 Additional projects to meet the 10 Year Plan and for further feasibility studies for projects identified in Section 5 Schemes for further development. Through the arrangements put in place since the Statement of Principles 7 was agreed with Railtrack, under which the cost of most project development is shared between the SRA and Railtrack, a significant programme of development work has been set up. The SRA s contribution to this was around 30m 7 Statement of Principles agreed between the Government and Railtrack, 2 April 2001

8 04.sum.priorities.qxd 4/1/02 10:40 am Page Section 4 The priorities short term continued in 2001, and will increase rapidly this year as development gathers pace. The SRA expects that its role in funding development work for particular projects will become increasingly important. In view of the problems that the industry has faced over the past year or so, there is increasing evidence that the private sector faces a number of difficulties in supporting the risks involved in the early stages of the project development process. The initial stages of engineering development, railway timetable planning and implementation planning are very important in the development of any project. They help derisk the project by identifying a buildable, deliverable programme of works that can be practicably implemented whilst the railway remains operational. Yet, where there is significant uncertainty about whether a project can proceed or adequate interfaces with day-to-day train operations can be developed, the private sector can sometimes take an overly cautious view. Accordingly, the SRA s Plan assumes that the public sector will need to support much of the early stages of certain projects through capital grants to Railtrack, train operators or engineering project managers. The SRA will also continue to develop proposals for this work to be taken forward by companies or consortia that may be able to assume many of the risks involved. As the investment programme proceeds and investor confidence grows, the role of these kinds of companies is expected to increase. Improvements throughout the country Major infrastructure projects help remove capacity constraints on the network and improve quality. Inevitably, they concentrate investment on certain parts of the network where the biggest improvements can be made. They can also take many years to implement. It is essential that these projects should be complemented by local improvements throughout the network focusing on short term delivery. Four programmes have been put in place to achieve this goal. Incremental Output Statements This programme was designed by the SRA following detailed consultation with stakeholders and the industry and includes: track and signalling schemes at over 100 locations to provide improved capacity, journey times or reliability; modern facilities at 1,000 stations, with improvements such as waiting rooms, toilets, security and information systems. The definition and funding of the schemes is well advanced, and discussions are in hand with Railtrack and the Administrators to ensure they are taken forward. The programme is designed to be fully completed in 2007, at a capital cost of around 700m. Rail Passenger Partnership The Rail Passenger Partnership (RPP) programme provides funding to assist new or enhanced rail services and facilities which contribute to the Government s wider objectives but which typically are not able to earn commercial returns. The programme is

9 04.sum.priorities.qxd 4/1/02 10:40 am Page driven by proposals from local stakeholders and hence reflects genuine local requirements; it has proved to be a particularly effective way of stimulating improved integration with other forms of public transport. Around 45m has already been approved for 41 schemes, with a further 35 schemes currently being assessed. New stations, new passenger lines, new train services, extended car parks, improved station facilities, cycle parking and passenger information systems have been provided. The RPP budget originally agreed by Government was 105m for three years only. The programme has recently been relaunched with: funds available increased to 430m, and the programme extended from three to ten years; these funds will lever in additional funding from local stakeholders; a speeded-up approval process, with the steps on the way more transparent; schemes under 250,000 will be fasttracked to a decision in one to two months, and schemes under 5m will receive a decision within four months; capital grants will also be available to provide assistance with up-front costs. Access for All The 10 Year Plan stated that building in accessibility for disabled people in all new investment is a condition of public money being spent. An integrated set of initiatives has been developed to realise this goal, including: publication of the SRA Code of Practice on accessibility standards, which deals with services provided for disabled people; all new coaches will be fully accessible, complying with the Rail Vehicle Accessibility Regulations; work carried out under the IOS station improvement programme will be compliant with the new SRA Code of Practice on accessibility standards; the SRA will make available additional funding to ensure TOCs are resourced, where necessary, to implement the requirements of the Disability Discrimination Act (DDA) on access to stations. This funding will be available throughout the time needed to implement the DDA, a process that will take a number of years, given the age and condition of many of the existing stations. In partnership with key stakeholders, criteria are being produced to allocate funds and optimise the value of the outputs flowing from them, and details of a funding mechanism are being developed. A further announcement will be made later this year. Small scale freight schemes Small scale schemes designed to deliver early benefits to freight will be funded through a 300m Freight Small Schemes Fund. These could include early work on gauge enhancement, branch line reopenings, loop lengthening and small network improvements to increase capacity, improve reliability and promote efficiency. The initial focus will be on schemes which can be delivered in a short (two to three year) time frame, those which can be carried out at the same time as renewals which are already planned and those which place least pressure on scarce technical resources.

10 04.sum.priorities.qxd 4/1/02 10:40 am Page Section 4 The priorities short term continued The SRA will take the lead on proposals for a National Rail Academy. 8 A Framework for Skills for the Rail Industry, DfEE/SRA, London, 2001 Tackling skills shortages and supporting innovation This Plan is intended to encourage development of the supply side of the industry, through setting out achievable investment priorities and hence giving the supply industry confidence to invest. Specific further measures planned are: the SRA will take the lead on proposals for a National Rail Academy, to promote the development of the key skills and competencies needed to run a railway on a safe and effective basis; the SRA has provided 500,000 for development work; the SRA will become a member of the Rail Industry Training Council (the national training organisation for the rail industry), and take a lead role in setting the training agenda as well as encouraging the industry to give full support to the RITC; the SRA will promote the joint SRA/Department for Education and Skills action plan on skills 8 covering the areas of manpower planning, recruitment, and training and development, pushing the skills issue faster up the agenda; refranchising will be used to promote training wherever possible for example the Midland Mainline franchise extension deal includes a commitment to set up a Customer Services Academy. Skills development is not the only supply side measure needed. The rail industry has a poor record of introducing new technology, and to stimulate change the SRA is developing a research and innovation strategy. The SRA s strategy will seek to speed up the process, without replacing the vital role that manufacturers and suppliers themselves play in this area. As part of this strategy the SRA is carrying out a study of the case for a national test track to accelerate the introduction of new trains into service and improve their reliability. The study will report early this year. Review of policy options Although the technical work underpinning this Plan has assumed no change in key policies, the SRA cannot proceed on the basis that existing policies in crucial areas such as fares continue indefinitely, without considering the advantages and disadvantages of change. For example, there is already a tension between London peak fares regulation and Tf L s travelcard pricing policy. Changes in fares policies have the potential to reduce investment requirements and future subsidy levels, as well as to increase demand through selective fares cuts, where capacity can be expanded at modest cost. Changes to PSRs have the potential to improve performance and increase capacity. The SRA s overcrowding standards are based on those that British Rail first applied in the early 1980s and have not been through a process of review for some time. Any change will have to be examined carefully and will be subject to consultation. The SRA will be carrying out a review of fares policy together with its continuing analysis of possible PSR changes (see Section 4 Improving performance ). On overcrowding standards, the SRA will revisit the scope of the standards (which TOCs they apply to) and the way they are defined (to ensure this best reflects the impact of overcrowding), recognising that

11 04.sum.priorities.qxd 4/1/02 10:40 am Page Section 5 The priorities medium term overcrowding is an issue at peak times on many parts of the network, not just London. Each of these areas feeds into the broader issue of capacity allocation on the rail network. The SRA intends to issue a Capacity Allocation Strategy later this year and will shortly be announcing details of the related consultation process. Medium term priorities The purpose of this section is to set out the SRA s medium term priorities. These are focused on delivering the major investment projects needed to address the Government s core targets for the railways and developing a pipeline of further investment projects for the longer term, that can be implemented as resources permit. Additional projects to meet the 10 Year Plan In addition to statutory and contractual commitments, the SRA has prioritised the following schemes. These schemes are at varying stages of development and in some cases their precise scope and implementation timetable within the 10 Year Plan period are still being finalised. The priority schemes are: Passenger the first three franchise replacements: Chiltern, South Central and South West Trains, which will deliver new rolling stock, increased capacity and better integration with other modes; the Thameslink 2000 project, providing Metro-style frequencies through the centre of London, and relieving congestion on the Underground; an upgrade of the East Coast Main Line (ECML), with half hourly services to Leeds as an early improvement. The scope and timing of this upgrade is currently being reviewed in the light of emerging information on costs and market requirements. More detailed proposals will be put forward in the coming months;

12 04.sum.priorities.qxd 4/1/02 10:40 am Page Section 5 The priorities medium term continued the new rolling stock and improved stations from the Midland Mainline franchise extension; improvements under the new TransPennine Express franchise; platform extensions to accommodate longer trains on the Connex South Eastern, Great Northern and First Great Eastern franchises, increasing capacity and reducing overcrowding; measures such as introducing longer trains and changes to timetables are likely to be taken on these and other franchises that suffer from overcrowding; extension of the East London Line, linking together rail services North and South of the Thames and promoting access to Docklands. This project is also a stepping stone to the eventual implementation of Orbirail, which would be a high frequency inner suburban service linking together key interchange points at the edge of the central area of London; capacity improvements on the London West Anglia route, to improve both local and Stansted Airport services; new RPP Projects. Freight A programme of gauge and capacity enhancement designed to provide a national network of freight routes offering access to heavier, wider and higher freight trains throughout the day is being developed. As announced in the Freight Strategy, it will include: trunk routes for freight trains from Felixstowe to the West Coast Main Line (joining it at Nuneaton) and from Southampton to the West Midlands and the North West. The programme is being designed to allow the gauge and route availability works to be accelerated, to open the railway to new, heavier and wider loads at the earliest possible opportunity; improved access to the ports on South Humberside; capacity improvements on local routes in the West Midlands, including restoration of the Stourbridge Junction Walsall route, to provide capacity for long distance freight services to cross Birmingham quickly; enlargement of clearances at bridges and platforms to allow larger, wider trains to pass. The overall programme The table Major priority investment projects lists the SRA s priority projects, and the level of commitment each has reached. The chart Major projects indicative timescales gives estimated timescales for the execution of projects to be completed before The timetable represents the SRA s latest information about when its priority projects could be started or finished, provided that SPVs can be put in place quickly to provide the necessary private sector investment and programme management capability that is needed. The timetable s starting points are statutory deadlines for safety improvements and existing contractual commitments. Dates for projects which are still in development, and particularly those where no contractual commitment has been entered into with the private sector, are necessarily more uncertain than other dates. The SRA will continue to develop and refine its investment plan as a key element of the proposed new industry planning framework.

13 04.sum.priorities.qxd 4/1/02 10:40 am Page Major projects indicative timescales TPWS Mark 1 replacement Midland Mainline upgrade: stations and new trains West Coast upgrade CrossCountry upgrade New trains and platform extensions for Connex South Eastern Chiltern upgrade East London Line extension TransPennine upgrade, e.g. stations and new trains Channel Tunnel Rail Link Section 1 Incremental Output Statements Modern Facilities at Stations West Anglia Route Modernisation Thameslink 2000 Southampton West Midlands upgrade gauge clearance Felixstowe Nuneaton upgrade gauge clearance East Coast Main Line upgrade initial capacity upgrade South Central upgrade Ashford Hastings and Hurst Green Uckfield electrification Arun Valley, Brighton Main Line and South Coast upgrades South West Trains upgrade suburban platform extensions Main Line platform and train lengthening further Main Line capacity RPP schemes Other freight projects development implementation milestone

14 04.sum.priorities.qxd 4/1/02 10:40 am Page Section 5 The priorities medium term continued From now on, infrastructure investment and refranchising are likely to proceed along separate, but closely related, courses. 9 Committed outputs are the main priorities within the new franchise agreements Major priority investment projects Commitments Train Protection Warning System replacement of Mark 1 coaches delivery of ERTMS Pilots West Coast upgrade Channel Tunnel Rail Link Incremental Output Statements DDA implementation CrossCountry upgrade Priorities by 2010 committed outputs 9 from the Chiltern, South Central and South West Trains replacements Thameslink 2000 East Coast Main Line upgrade, including improvements at Kings Cross Freight Strategy Midland Mainline franchise extension TransPennine refranchising new trains and platform extensions to reduce overcrowding in South East England East London Line extension London West Anglia modernisation RPP schemes Schemes for further development West Midlands capacity study Greater Manchester capacity study rail schemes from Multi-Modal Studies longer term aspirations for the Chiltern, South Central and South West replacements full South London Metro project London Crossrail and Merton Hackney further interchange improvements at Kings Cross/St Pancras North South High Speed Line Great Western upgrade improved links to Heathrow, Glasgow and Edinburgh Airports strategic options for North South freight capacity Implementation To date, there has been a close link between refranchising and investment, typified by the first three replacements. From now on, infrastructure investment and refranchising are likely to proceed along separate, but closely related, courses. Most major new projects in this Plan are likely to be taken forward by the SRA working directly through project development mechanisms with Railtrack s successor, developers, contractors and others rather than through the mechanism of a franchise agreement. However, where franchisees indicate that they do propose to take the lead on delivering infrastructure projects, and have the financial and managerial resources to do so, this approach will be considered. Schemes for further development A number of major schemes are being developed and offer potential particularly for delivering on the wider agenda of the 10 Year Plan. More work needs to be done on their feasibility, value for money and inter-relationships with existing services. This Plan contains funding to allow these to be explored further, but there is unlikely to be sufficient funding or technical resources available to support implementation before If increased funding becomes available, particularly through partnerships with other parts of the public sector, it may be possible to make progress more quickly on some of them. These projects include: West Midlands capacity study proposals; Greater Manchester capacity study proposals; rail-based projects identified in the Multi- Modal Studies; longer term aspirations proposed in the first three franchise replacements;

15 04.sum.priorities.qxd 4/1/02 10:40 am Page development of a South London Metro beyond the initial stages, to provide higher frequency services; London Crossrail. Options for taking forward this scheme as well as the proposed Merton Hackney project are being developed by the newly formed SRA-Tf L joint venture, Cross London Rail Links, with the SRA contributing 75m of the costs; Kings Cross/St Pancras superhub works beyond the substantial improvements committed to facilitate the Channel Tunnel Rail Link terminal and as part of the proposed ECML upgrade; North South High Speed Line; major infrastructure improvements to the Great Western Main Line; Airtrack, offering direct services from Heathrow to Waterloo, Woking and the South West Trains network. Co-funding of this project by BAA will have a major role to play in its implementation; direct rail links to Edinburgh and Glasgow Airports; strategic options for North South freight capacity.

16 04.sum.priorities.qxd 4/1/02 10:40 am Page Section 6 The priorities longer term The railway will play an increasingly important part in providing for the nation s transport needs. The longer term There is clear evidence that the railway will have an increasingly important role after Demand for transport is predicted to continue to rise, at least as fast as economic growth. The road network will simply be unable to cope with this growth, even if its expansion were an acceptable solution in financial, social and environmental terms. The railway will therefore play an increasingly important part in providing for the nation s transport needs. Moreover, the inherent advantages of rail are likely to grow in significance, particularly: speed; the ability to move high volumes efficiently; low environmental emissions in relation to volumes moved (especially of carbon dioxide); potential for use of alternative energy sources, and efficient use of energy; low environmental impact (visual and land take); better safety record than other land transport modes. The SRA is planning for a safer, bigger, better railway, meeting the standard of good European practice. A railway whose customers use it with confidence and which provides a real alternative to car, coach and air, across the country. Such a railway would carry substantially more freight and passengers and would contribute to the Government s wider aims on regeneration, sustainable transport, the environment, health, employment, social inclusion and accessibility for all. This will require implementation of many of the schemes outlined in Section 5 Schemes for further development. Radical solutions may be needed to address capacity shortage between London, the North of England and Scotland, including consideration of a new line with a high speed capability. After completion of the CTRL, better Channel Tunnel links to the regions to provide an alternative to European hub and spoke connecting flights may be required, and there will be a need to connect new freight and passenger markets which will develop over the next decade with new or reinstated railways or new freight sidings.