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EFRTC Policy & Research Committee Market Strategy Report. Jeremy Candfield Chairman. Zürich 27 May 2011. Introduction. Spoke in Florence on the continuing delay in completing the report of workstream A on Market Strategies

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Zürich 27 May 2011

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Z rich 27 may 2011

EFRTC Policy & Research Committee

Market Strategy Report

Jeremy Candfield Chairman

Zürich

27 May 2011


Z rich 27 may 2011

Introduction

  • Spoke in Florence on the continuing delay in completing the report of workstream A on Market Strategies

  • Intended to be the first of seven studies under a joint initiative of EIM/CER/EFRTC following-up Innotrack work:

EFRTC GM, Zürich 27.05.2011


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Post-Innotrack Workstreams: A reminder

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Introduction

  • Pending completion of A the Committee has not met.

  • But:

    • -the report has now reached Final Draft stage

    • -is being circulated by EIM to the WG for final comment and then publication

    • -agreed with EIM will discuss Workstream B – Long Term Funding – and Workstream E – Contracting Strategy – once A is completed

    • -if need be we may take E forward by ourselves

  • Patience is a virtue ....(but see later!)

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The Study

  • Participants

  • Some Survey Conclusions

  • Case Studies

  • European Landscape

  • Result

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Participants

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Some Survey Conclusions

  • insourcing/outsourcing – decision-making criteria

  • value-adding behaviours

  • value-destroying behaviours

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Part 1 decision making criteria

Part 1: decision-making criteria

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In Order of Importance:

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Survey of Value-Adding Behaviours –

Most Important:

  • good safety and environmental culture at all levels

  • clarity and simplicity of technical, legislative and safety standards required to be met in delivering the works

  • collaboration and concise, clear, timely communication

  • work is delivered to the agreed quality first time

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Survey of Value-Destroying Behaviours

  • Lack of clarity in scope of work to be done, frequent uncontrolled and late changes by client, specifications, standards and capacity

  • Poor site management or pressure to take short cuts

  • Short notice change to track access requirements or availability

  • Poor quality work requiring corrective actions and thus reducing track capacities for operators

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Case studies

  • PRORAIL on process of outsourcing track maintenance in the Netherlands

  • RFF – examples from performance contract which may affect outsourcing in France

  • Network Rail system of performance assessment of contractors offers and works in GB

  • GB (RIA) Value Improvement Programme driving waste out of the supply chain using collaborative behaviours

  • Finland on collaborative process of product life cycle and performance assessment by outsourcing

  • Switzerland - positive experience from collaborative way of working in whole supply chain with client (from long term planning to performing the work)

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The European Landscape

  • Estimates were derived, mainly by EFRTC (SG), of annual spend on track maintenance and renewal by each IM

  • Presented as an Appendix with further information

  • Approximate total £20b pa, c40% by contractors – mainly renewals.

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Result

  • A guidebook for both Infrastructure Managers and Contractors to help encourage open dialogue, develop transparency, promote value-adding behaviours, and showcase good practice.

  • Since it was written....

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Post Scriptum

Network Rail website since 25 March 2011:

Partnering Framework for Infrastructure Works

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Post Scriptum

Network Rail website since 25 March 2011:

Partnering Framework for Infrastructure Works

EFRTC GM, Zürich 27.05.2011


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Post Scriptum

Network Rail website since 25 March 2011:

Partnering Framework for Infrastructure Works

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Network Rail Partnering Framework

  • It is still early days

  • It is clear that senior management is committed

  • Numerous other major changes are being made simultaneously in costs, structure, contestability and much else

  • Will they break the Permafrost?

    • To be continued.....

EFRTC GM, Zürich 27.05.2011


Z rich 27 may 2011

Thank you


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