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Multi Annual Infrastructure Planning

Multi Annual Infrastructure Planning. Twinning project, Tuesday 28 March 2006, Ljubljana By Henk Schutte, Ministry of Transport, The Netherlands. Minister. State Secretary. Secretary-General. Deputy Secretary-General. Central Services. Inspectorate of V&W. DG Public Works.

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Multi Annual Infrastructure Planning

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  1. Multi Annual Infrastructure Planning Twinning project, Tuesday 28 March 2006, Ljubljana By Henk Schutte, Ministry of Transport, The Netherlands

  2. Minister State Secretary Secretary-General Deputy Secretary-General Central Services Inspectorate of V&W DG Public Works DG Freight Transport DG Passenger Transport DG Water & Water Management and Aviation 1000 8000 150 200 100 supervision implementation Policy Ministry organogram

  3. DG Passenger Transport DG Passenger Transport Pol I cy Railway Directorate Road Directorate Water Directorate Execution Rail infra manager ProRail Rijkswaterstaat (Road Agency)

  4. Content of Presentation • Institutional setting • Facts and figures • Actual Policy • Policy process (priorities) • Maintenance (more details) • Managing performance • Multi-annual planning

  5. Relationship State-ProRail • ProRail is rail infra structure manager • ProRail: Private company • State is only shareholder • Legislative framework: Act on Railways • Management Concession ProRail

  6. Institutional triangle • State • ProRail (Maintenance, capacitymanagement, Traffic Control) • Railway Operators (passenger and freight) • EC-directives MoT NS ProRail Freight Operators

  7. Funding of ProRail • Annual subsidy for maintenance • Subsidies for new infrastructure (projects) • Infrastructure charge • Third party revenues

  8. Dutch railway infra structure: Facts and figures (1) • 6500 km rail (2004) • 2800 length of network • 4500 km of catenary • 4500 bridges and tunnels • 3000 secured cross overs • 9000 switches • 9800 signalling poles • 386 stations

  9. National Rail Network

  10. Dutch railway transportation: Facts and figures (2) • 128 mln train kilometers (per year) • 5000 passenger trains (per day) • 230 freight trains (per day) • 1 mln passengers (per day) • 80.000 tonne freight (per day)

  11. MoT: Setting the policy priorities • Prioritisation of railway infrastructure investment projects according to MIT-rules • Prioritisation of railway infrastructure maintenance according to output results • Multi-annual budget for funding ProRail

  12. MoT: Actual Policy • National mobility plan • Decreasing budgets for new infrastructure • Increasing budgets for maintenance • “Railinfrastructure Recovery plan” !

  13. Consequences of former policy - ‘Lessons learned’ • Too much focus on new infra structure • Absorption budgets by mega projects • Limited budgets for maintenance • Backlog in maintenance • RAMS problems • Unsatisfied railway operators and passengers

  14. Railway infra structure: Available budget • New infrastructure 2006-2010 € 4,5 (billion) • New infrastructure 2011-2014 € 1,9 • New infrastructure 2015-2020 € 0,1 • Total new infrastructure € 6,5 • Maintenance 2006-2010 € 6,9 • Maintenance 2011-2014 € 4,4 • Maintenance 2015-2020 € 9,0 • Total Maintenance € 20

  15. ProRail: Facts and figures financial • Total Costs Maintenance * € 1200 mln • Infra Structure Charge € 200 mln • Annual MoT subsidy € 1000 mln * Management, Current & capital maintenance, renewal, interest, depreciations, overhead, other.

  16. Realisation phase Planning of infrastructure Exploration of problem MIT- model: Phases and decision moments 3. Project decision 1. Intakedecision 5. Completion 2. Yes/no planning phase 4. Implementing order

  17. Decision making process (Stakeholders) • Realization policy goals • Political influence • Economical Costs and benefits • Regional policy (Provinces and local authorities) • Wish list railway operators • Wish list rail infra manager ProRail • Interests of societal organisations • Interests of citizens

  18. Decision making processes on railway infrastructure: the policy arena MIT parliament Provinces MoT: Railway Directorate ProRail Railway operators Citizens Munici palities Societal organisations

  19. Prioritising Railway Maintenance • Long term budget based on agreed upon results (KPI’s) • ProRail responsibly for selecting means (activities) to obtain the results • State influence on rail infra management operation limited to ‘political sensitive dossiers’ (for example accessibility) • Maintenance agreements between the MoT and ProRail contain renewals as well • Planning & control includes audits/benchmarks.

  20. Measuring the results: Key Performance Indicators (KPI’s) • Reliability (Disruptions, Irregularities, Function restore time) • Availability (train free periods, the avoidance of speed restrictions!) • Quality (Renewal, Life Cycle Management) • Safety (percentage of travellers, which feel safe at day / night ,the amount of train collisions and the death toll) • Properness (the amount of travellers that judges stations to be sufficient clean)

  21. Working with the MIT in the Railway Sector – lessons learned • Long term planning important for efficient operation (LCM) and increasing reliability and utilisation (performance) • Overview of long term effects and performance necessary for securing long term budget • Golden rule: less budget = less performance (exception: efficiency). • Transparant decision making based on integrated approach.

  22. Content Afternoon presentation • Setting policy priorities in more detail (the National Mobility Plan) • From performance to budget • Relationship Multi Annual budget and annual management plan • Multi Annual budget and changes in policy • Conclusions

  23. Setting policy priorities • The National Mobility Plan (2011-2020) - Retain current rail maintenance level within few years (renewal plan) - Improving quality and preparing for future local growth - Punctuality from 83% in 2003 to 89-91% in 2020. - Limited expanding of the network

  24. From Performance tot budget • Performance targets as agreed upon in the National Mobility Plan • Decision making process based on performance-cost scenario’s • Multi-annual budget (MIT) is based on the costs of the national mobility plan • Efficiency improvement is part of the budget

  25. Railway infra structure: Available budget • New infrastructure 2006-2010 € 4,5 (billion) • New infrastructure 2011-2014 € 1,9 • New infrastructure 2015-2020 € 0,1 • Total new infrastructure € 6,5 • Maintenance 2006-2010 € 6,9 • Maintenance 2011-2014 € 4,4 • Maintenance 2015-2020 € 9,0 • Total Maintenance € 20

  26. Multi Anual Overview • Handout

  27. Multi Annual Budget and Annual Management Plan • Multi Annual Budget (MIT) based on National Mobility Plan • Annual Subsidy based on annual management plan • Annual management plan includes renewal.

  28. Annual Management Plan (1) • ProRail responsible for annual management & maintenance plan • The plan has to be in line with performance agreed upon in MIT and national mobility plan • ProRail responsible for selecting means tot obtain goals( Performance) • MoT has to approve the management plan

  29. Annual Management Plan (2) • The annual management & maintenance policy must be in line with the Multi-Annual budget • Annual MoT subsidy based on annual Management Plan • Deviations from the plan have to be agreed upon and can change the annual subsidy • Differences between subsidy and realised costs have to be explained by ProRail • Differences will be part of the result or balance sheet of ProRail

  30. Mutli Annual Budget and changes in policy (1) • Right to approve the (multi annual) budget by the parliament • New government can always change priorities and budget • A change in policy starts with the discussion about the goals Budget follows performance !

  31. Mutli Annual Budget and changes in policy (2) • Consequences for Life Cycle costs and efficiency • Changes in policy difficult on short term (2006-2010), possible on mid term (2011-2014) and likely on long term (2015-2020)

  32. Case: What if there’s less budget available • Step 1: Define policy priorities (MoT) • Step 2: Change maintenance Plan in line with these priorities (ProRail) • Step 3: Overview of effects (ProRail) • Step 4: Scenario’s for decision-making in terms of costs & budget) and benefits & performance (MoT).

  33. Conclusions (1) • Multi Annual Budget provides stability for ProRail: relative secure budget. • Multi Annual budget provides stability for MoT: less claims, less surprises, stability in performance. • Multi Annual Performance and Multi Annual Budget are two sides of same coin!

  34. Conclusions (2) • Multi annual planning provides opportunity for optimizing life cycle costs • Performance planning demands knowledge of and transparancy in relationship between performance, activities and costs • Multi Annual Performance Policy necessary for securing Multi Annual budget

  35. Any questions?

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