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The Great Transport Debate The Rail Network Michael Roberts Chief Executive, ATOC

The Great Transport Debate The Rail Network Michael Roberts Chief Executive, ATOC. Rail and politics. <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

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The Great Transport Debate The Rail Network Michael Roberts Chief Executive, ATOC

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  1. The Great Transport Debate The Rail Network Michael Roberts Chief Executive, ATOC

  2. Rail and politics • <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

  3. Rail 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

  4. Rail and the four C’s Capacity Customers Cost Carbon

  5. 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 & Customers

  6. 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 & Carbon

  7. The way forward • Honour commitments on rail investment • Reinvigorate public private partnership in rail • Plan ahead for next 30 years

  8. Way forward 1: Commitments • 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

  9. Way forward 2: Partnership • Government to focus on setting and funding high-level goals (eg HLOS, SOFA) • Longer & smarter franchises which enable TOCs to • focus more on quality • innovate in providing outputs • deliver better VfM • Joint Network Rail-TOC incentives to drive efficiency • Continued primary ORR role in promoting more customer-focused Network Rail

  10. Way forward 3: Plan • 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

  11. ‘First 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

  12. Summary • 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

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