Delivery Plan. Control Period 6 ( ) High Level Summary

Transcription

1 Delivery Plan Control Period 6 ( ) High Level Summary

2 Foreword Putting passengers first I first joined the railway because it makes a difference to people in this country. Every day, 4.8 million people travel by train in Britain. People going to work, visiting their family, catching up with loved ones or heading to meetings. Around 200,000 tonnes of freight and goods are transported by rail in that same time frame, supporting businesses and consumers, taking thousands of lorries off the road. Andrew Haines Chief executive 01

3 The railway is hugely important, both to the people it serves and the economy. That means that when things don t run the way they should, it matters. Train performance, our promise to passengers, has been in decline for the last seven years. The disastrous start to the new timetable in May 2018 further undermined public trust in our ability to deliver a reliable service. In recent months, it has become clear to everyone involved in the rail industry that we have to do something very, very differently. The start of Control Period 6 (CP6) allows us a rare opportunity to take a fresh look at our industry, including the way that Network Rail is structured and works, so that we can better deliver for passengers. This is why industry leaders, including myself, have widely welcomed the Williams Review, with its ambition of aligning the industry more effectively, so that all parts of the railway are focused on its users, passengers and freight. The current system hasn t been reformed since the 1990s and it is clear it is no longer fit for purpose. I was deeply aware of the problems the industry was facing when I arrived at Network Rail in August My first step was to commission a listening exercise to ask people, both within and outside the rail industry, three key questions: How can Network Rail provide the best possible service for passengers and freight users? How do we ensure that Network Rail delivers the promises we ve made for CP6? How do we improve the way we work together as an organisation and with the rest of the rail industry? We spoke to hundreds of colleagues internally and more than 200 partners across 100 different organisations externally. The hours we spent listening to get a better understanding of what is working, and what is not, were invaluable. We heard that there are many things that Network Rail does very well. Our safety record was credited as a real achievement, as was our progress with devolution. However, it was also clear that train performance and the service that we deliver for passengers and freight users has not been good enough and we are often seen as difficult to work with. So we are going to change. We know that to effectively deliver our plans for CP6, and to rebuild trust with those that use the railway, we must change the way that we work, both within our own organisation and with the rest of the industry. Our plans include how we organise ourselves, but most importantly they are about how we engage with each other and with our external partners. Increasing our customer focus I am clear that Network Rail is a service organisation. As we move into CP6, we are going to become more customer focused and develop a mindset where we constantly ask How can we put our people and customers at the heart of everything we do?. Our plan for CP6 will bring us closer to our train operating colleagues, aligning our aims and ambitions, with a focus on the users of the railway. We are embedding a customer service culture at every level within Network Rail and shifting to be an organisation that treats people the way we would want to be treated ourselves. 02

4 Network Rail Routes and Regions Eastern 1 East Coast Route 2 North East Route 3 East Midlands Route 4 Anglia Route London North Western (LNW) LNW North Route LNW South Route Scotland Scotland Route Southern Kent Route Network Rail High Speed Sussex Route Wessex Route Wales and Western Wales Route Western Route Indicative only, subject to consultation 03

5 Developing a new operating model To support our customer focus, we are going to deepen devolution and develop a new operating model formed of 13 routes organised into five Network Rail regions. We will also devolve central functions including Infrastructure Projects and elements of System Operator, Safety Technical & Engineering, and Group Digital Railway. The routes will be responsible for the day to day delivery of train performance and will develop a deep partnership with the train operating companies in their area. The five Network Rail regions will be organisations that are large enough to absorb further devolution and increase route capabilities locally. The changes will enable more local decision making, improve responsiveness and relationships with train operators and regional stakeholders, putting more focus on improving train performance and putting passengers and our customers first. The new setup will allow us to work closer to customers and ensure that activities and roles sit in the right places in the organisation to drive up performance and deliver for our customers. They will also help build the right capabilities in the right places and empower our front-line colleagues. We will use this improved alignment to explore a range of different delivery mechanisms for the routes, including partnerships, concessions and alliances. Building our capabilities But it s not just about organisational structures. Operations is a crucial skill for running a rail network as complex as ours. In recent years, it simply hasn t had the attention or focus that it deserves. We haven t developed a pipeline of world class operations talent or cultivated operations as a profession to rival any of the others within the industry. So we will build and rebuild that capability, and become a centre for world-class operations. We will develop operators with excellent competence and experience, excellent leadership skills and a system-overview that enables them to work effectively to deliver together deliver the best outcome for passengers. Looking ahead Changes on this scale take time. That s why we plan to make these changes in four separate phases, with the first phase the formation of the new routes and regions taking place in summer We will make changes when we are fully ready, rather than rushing them, but we plan to have completed everything by the end of Throughout these changes, our priority will always be the safe and reliable running of the network. When I first joined Network Rail, I was genuinely struck by the level of dedication and passion our people have towards the railway. We want to make it better. And we want to deliver for passengers because Britain deserves a world-class railway. Changing our organisation gives us the best possible chance of success in the long-term and I am proud to lead that change today. 04

6 Control Period 6 and our vision for Network Rail Our vision Our purpose Our role A company that is on the side of passengers and freight users; that is easy to engage with and a dependable partner; a company people are proud to work for; instinctively recognised as an industry leader. In CP6, we are putting passengers and freight users first. For too long the industry has been introspective and focused on engineering excellence, rather than on the service that we provide. From now on we will be driven by what is collectively agreed are the right outcomes for passenger and freight users. We will cultivate a customer service mindset to ensure that, wherever you work within the business on the frontline or in a supporting function you are always thinking about how to best serve users of the railway. Connecting people to places and goods, driving economic growth We exist to get people and goods where they need to be, at the right time, and to drive economic growth and productivity. The railway connects homes with schools and workplaces, businesses with markets and can help unlock new land for house building. It is part of the social fabric of our nation, connecting people with friends, family and loved ones. The railway also carries goods worth over 30bn each year, bringing food to shops, building materials to construction sites, and fuel to power stations. Even for those who never use a train, the railway makes everyday life possible, in an environmentally sustainable way. Running a safe, reliable and efficient railway, serving customers and communities Our role is to deliver a railway that people can rely on, with trains that turn up and arrive at their destination on time, and where passengers can feel confident that they are in safe hands. We have received 53bn of funding from the Department for Transport (DfT) and Transport Scotland to fulfil this role in CP6. Reliable train performance is what we must deliver on a daily basis in CP6, and what we should and will be held to account for throughout the control period. 05

7 Safe Safely running Britain s railways will always be our priority. Throughout CP6 we will continue to make our rail network a safer place to travel, work or live near, with a specific focus on four areas: Passenger safety Our plan for shows how we will reduce the risk of a train accident by a further 10 per cent, building on the 38 per cent reduction in risk that we have achieved over the last five years. Public safety Our award-winning work to reduce trespass on the railways and prevent suicides will continue, building on the 14 per cent reduction in suicides on the railway that we have seen in CP5. Level crossing safety We will use better techniques and digital technologies to improve the way we maintain and manage our infrastructure and take steps to further reduce risk to the public at our level crossings by 13 per cent. Workforce safety We want an injury-free and healthy business, so we will continue to improve our Lost Time Injury Frequency Rate (LTIFR) measure by 54 per cent. We will also increase our work on mental health and resilience, with a target of a 25 per cent reduction in work and part work related mental health sickness absence by the end of CP6. Safety and sustainability We are broadening our approach to safety by enhancing environmental performance. Making sure the land around the railway, such as cuttings and banks, is stable is crucial to safety, and the stability of our earthworks is often reliant on the way we manage vegetation near the railway. We plan to increase biodiversity on and around the railway, and we will also reduce energy consumption in our operations by 18 per cent over the next five years. This is responsible leadership. 06

8 Reliable We know that what passengers want is a reliable train service, so performance must be at the top of our agenda in CP6. It is essential that we continue to work together across the rail industry to improve train performance for our passengers. The current level of train punctuality is unacceptable. We have therefore set ourselves a target to reduce the number of delayed trains by 12 per cent in 2019/20 and by 28 per cent by the end of the control period. Our performance trajectory for CP6 2018/ / / % of trains meet PPM* 87.5% of trains meet PPM* 89.8% of trains meet PPM* *The public performance measure (PPM) shows the percentage of trains which ran their entire planned journey calling at all scheduled stations and arriving at their terminating station within five minutes (for London & South East and regional services) or 10 minutes (for long distance services). It combines figures for punctuality and reliability into a single performance measure. It is the current industry standard measurement of performance. With a new operating structure and a renewed focus on putting passengers first, we will get train performance back up to the standards that passengers expect and deserve. By improving the reliability of our network and providing better information to passengers during disruption, we hope to see passenger satisfaction rise over the next five years. Our CP6 plans detail how we will work with train operators to reduce the number of trains that are delayed on the network, with a particular focus on the following areas: Assets Improving the reliability of the railway s infrastructure to reduce the number of incidents that cause disruption. Timetables Improving the accuracy of assumptions on which the timetable is based. Operations Improving operational processes so that service recovery from incidents is rapid. Information Improving the accuracy of train running data to help problem solve and improving the information we give passengers during disruption. 07

9 Efficient Passenger numbers have grown significantly over the past 20 years, and as passenger demand has increased, so has the cost of running the railway. The extra demand has been met by a significant increase in the number of trains that run each day these extra trains have, however, created additional performance challenges for us. Network Rail needs to become the most efficient company we can be, if we are to play our part in delivering an affordable and reliable railway for the future. Driving greater efficiency is a core part of our vision for CP6. We have a target of saving 3.5bn between , which we firmly believe we can achieve. Some efficiency savings will come through programmes that are already in place and driving efficiency now, and additional efficiency programmes will begin in April Some of the ways that we will deliver a more efficient railway over CP6 include: Using intelligent infrastructure New technology is allowing us to collect improved information about the state of railway infrastructure, allowing us to predict and prevent problems and better target our maintenance and renewals work. Stabilising our work plan Making it easier for both us and our supply chain to plan and deliver work efficiently. Better every day Better Every Day uses the good ideas from our 41,000 strong workforce to aggregate marginal gains in hundreds of different day to day work activities. If we are dedicated to driving efficiency within the organisation, it is crucial that we engage the whole organisation and make everyone accountable for everyday improvements. This is already saving millions. Making the best use of access The amount of time we have to access the railway to undertake work has reduced, so we are taking a number of steps to optimise the way we work when we do have access. Improved contracting strategies Working with our supply chain to become an industry client of choice. Making our national functions more efficient Delivering savings through IT transformation, increased commercialisation of business services and improved supply chain operations. 08

10 Growing Moving into the next control period, we will continue to improve our railway through the delivery of enhancements. We have radically changed our approach to planning enhancements in recent years, to prevent projects from being overpromised before they are properly developed and costed. From 2019, enhancements will be considered on a case by case basis rather than in one five-year budget. This pipeline approach will be supported by business cases to confirm the strategic fit, value for money, affordability and deliverability of proposals. We also want to make it easier for other people to fund, finance or deliver work on the railways. We are implementing a number of reforms that aim to cut red tape, so people can come forward with innovative solutions and new ways of working on the railway. In the years ahead, we will: Make it easier for third parties to compete for work Enable third parties to carry out work on the railway directly Make third party funding easier to achieve Attract and reward third party finance and delivery Achieving our business objectives for CP6 will be hugely influenced by our ability to attract, retain and develop dedicated and committed people. This means becoming one of Britain s best employers, so our people strategy includes the following four overall objectives: To enable and engage our people to do the best job they can, in turn supporting the business to achieve its objectives; To create an environment where people can truly say I m doing my best work and have the best boss I ve ever had ; To be industry-leading in all we do when it comes to our people; To support the embedding of a customer service culture at Network Rail. We have set ourselves ambitious targets to help achieve these objectives during CP6 including: Through the mental health and resilience project we will continue to focus on awareness, training, education and deployment of wellbeing ambassadors to achieve a supportive health culture in the workplace. We have set a target of reducing occupation related mental health issues by 25 per cent by prioritising mental health and employee wellbeing; Leading the way in making the industry more diverse and inclusive, including by increasing the female workforce to 20 per cent by 2020 and doubling the proportion of women at Network Rail by And we will also look to achieve the following outcomes: Lead the industry in planning for, and developing, leadership skills to meet the future needs of the railway; Make Network Rail a place people are proud to work; Be an organisation where people feel safe, looked after and treated with dignity and respect; Encourage great leadership and become a place where there is mutual trust and respect between line managers and employees. Taken together, we believe our plan for the next five years will help create an environment which enables everyone to reach their full potential and deliver the railway that our passengers expect and deserve. 09

11 Our Delivery Plan Our Delivery Plan represents the continued development of our plans for CP6 ( ). This is the final stage in the process that started nearly three years ago. The process concluded when we accepted Office of Rail and Road s (ORR) Final Determination, which set out what we should deliver for the funding available, earlier this year. The 42bn of funding for operations, maintenance and renewals on the network that we have agreed with Governments is a great result for passengers and freight. Our Delivery Plan sets out how we will spend this money in order to deliver a more reliable service for passengers. The Delivery Plan has been built from the bottom up by our routes in consultation with local stakeholders and rail users, and is supported by individual route strategic plans, which set out how each route will use their individual funding settlements to deliver the best service for rail users in their area. This Delivery Plan does not include all of the enhancements that could take place during CP6. Enhancements are now planned in a pipeline process and considered on a case-bycase basis, rather than all being planned into one five-year funding period. This means that the Final Determination is primarily focused on investing to improve the safety and reliability of the railway for passengers and freight. This plan is consistent with ORR s Final Determination. We have maintained a strong line of sight with this throughout the development of our Strategic Business Plan and this Delivery Plan. As part of this Delivery Plan, each of the route strategic plans have evolved from those published in February Once the new organisational structures are in place, the changes to route strategic plans and associated settlements for each region will be published in subsequent updates during CP6. We will ensure that the revised Delivery Plan outcomes are consistent with those outlined in the Final Determination. You can download summaries of each route strategic plan at 10

12 Our targets for CP6 10% 13% 54% Safe improvement in train accident risk improvement in level crossing risk improvement in Lost Time Injury Frequency Rate 12% 28% Reliable improvement in delayed trains in 2019/20 improvement in delayed trains by the end of CP6 3.5bn Efficient incremental efficiency savings between Putting people first 50% improvement in the number of women employed 25% improvement in occupation related mental health absence 25% 18% Environmental impacts improvement in carbon emissions improvement in energy consumption 11

13 Our funding and expenditure in CP6 Our funding Government 14.2bn Franchised train operating companies income 24.3bn 2.2bn 2.1bn -0.4bn Department for Transport network grant income Transport Scotland network grant income Commercial income (property, freight income, open access operators) Net Schedule 4 & Schedule 8 costs 42.4bn Total income Our projected expenditure 4.1bn 3.4bn 9.0bn 4.7bn 18.5bn Support Operations Maintenance Industry costs and rates Renewals 39.7bn Total for support, operations, maintenance and renewals (SOMR), and other industry costs 2.7bn Group Portfolio Funds (GPF) 42.4bn Total SOMR and other & GPF 53bn 10.4bn Funding for enhancements Total of Statement of Funds Available for CP6 12

14 The purpose of this document is to present a high-level summary of Network Rail s Delivery Plan in Control Period 6 ( ). Our Delivery Plan represents the continued development of our plans for CP6. This is the final stage in the process, following the UK and Scottish Governments High Level Output Specification and Statement of Funds Available, where they set out what they wanted us to deliver and how much they will invest through the control period. The process concluded when we accepted Office of Rail and Road s (ORR) Final Determination earlier this year, which set out what we should deliver for the funding available. You can download copies of our detailed Delivery Plans at Network Rail Limited 1 Eversholt Street London NW1 2DN Tel networkrail.co.uk Company number: Registered in England and Wales For more information, please contact publicaffairs@networkrail.co.uk