1Rail Group The Big Question Peter Wilkinson, Director, Rail
Franchising
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2Rail Group
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3 Public & Private Sector Partnerships Work Passenger
Growth Passenger Satisfaction Investment Safety
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4Rail Group The Evolution of the Process We want Engagement and
Partnership with all participants Inclusivity Franchised and Open
Access, freight, infrastructure and the industry supply chain A
process that is transparent and simple Bidding propositions that
are Innovative And it has to be Safe A future that is
Sustainable
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5Rail Group Future Challenges Capacity Punctuality and
performance Funding, costs and profitability A more discerning
passenger base New skills and investment in the workforce
Investment in technology and innovation Sustainability
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6Rail Group Growth and Capacity Growth in Freight Ebay,
amazon.co.uk, Tesco Growth in Passengers For many, no other option
More commuters travelling further Costs of car ownership and
urbanisation
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7Rail Group The need for speed Speed is not a luxury It should
be an essential part of our ambition and ambition causes innovation
Journey time improvement 125mph should be the basic standard on:
East Coast (140pmh post with IEP) West Coast (135mph with
Pendolino) Great Western (140 with IEP) Great Eastern South Western
(Bournemouth Southampton) Other routes that should touch 125 on key
sections TPE Midland Main Line Thames Valley
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8Rail Group Punctuality and Performance Rolling Stock
Reliability Infrastructure External Factors Weather Passenger
Expectations
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9Rail Group Re-thinking our approach to the Timetable We need a
re-think about the timing of Britains railways to benefit existing
passengers and attract new markets onto rail, in particular the
car-dominated non-Central-London market. reduced journey times, in
many cases on the scale of those anticipated by HS2, from improved
connections and new fast long distance expresses timed to maximise
the potential of the existing infrastructure increased frequencies,
especially at busier times, without requiring additional trains to
be run an opportunity to take a fresh look at overlooked markets
that could be served by rail greater flexibility to tailor supply
to demand, thereby avoiding unnecessary costs by providing, a
consistent, regular and symmetric service pattern, seven days a
week, from start to finish of service Improved service recovery
opportunities to expand the freight market increased access to the
infrastructure for maintenance and reduced need for disruptive
engineering work This will mean investment in some infrastructure,
driven by the requirements of the timetable, to allow
cross-platform interchange to take place at stations where the
existing track layout does not allow this. Network Rail and DfT
will be working with operators to examine the opportunities that
such a re-think might provide and we expect to pilot this through a
forthcoming franchise competition.
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10Rail Group Funding Britains railways rail subsidy (2011/12
prices) Net cost to Government per passenger mile (p) Ratio of
taxpayer to farepayer funding (%) Long distance7.3p25 : 75 London
and South East4.819 : 81 Regional31.161 : 39 Since privatisation,
revenue growth of 2.3 billion in 2011-12 prices (mostly from
increased passenger numbers rather than higher fares) has been more
than offset by three factors: a 1.7 billion increase in train
operating costs, which have grown in tandem with the growth of
passenger numbers; 1.5 billion extra cost associated with funding
Network Rail's regulatory asset base, its borrowing to finance
capital projects; and 0.5 billion in additional rolling stock
charges, again reflecting increased demand.
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11Rail Group The rail industry received 1.3bn of other income
in 2011-12, an increase of 5.1% compared to 2010-11. Train
operators received 0.7bn from car parking, property rental,
catering and other sales. Network Rail received 0.6bn from its
stations and property portfolio, and charges to freight and open
access train operators. A privatised railway - really?
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12Rail Group Cost and Profitability Distribution of costs
between the taxpayer and farepayer Change the argument about
Premium / Subsidy Devolution and choices to be faced Investment and
private capital Trade offs between long term short term
affordability and long term value for money
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13Rail Group Community, Environment and Sustainability
Sustainability is fundamental to rails long term success Must be
embedded throughout the industry: its a core requirement not an
optional extra. We want ambitious, innovative proposals in our bids
to deliver environmental improvements, support economic growth and
bring communities together There are today over 50 Community Rail
Partnerships putting real money, peal people-power and real
innovation into rail, Community Rail Partnerships have re- opened
local rail services and transformed long decaying assets into vital
community resources
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14Rail Group New solutions Up until now Where is the passenger?
Or the workforce? One (franchising) model fits all No sense of
partnership Lots of tell little ask An air of we know best Unable
to react to changing markets Have not created conditions for
innovation or investment No sense of local Future Passenger must be
at the centre of every aspect of design, the workforce properly
supported Less tell more ask Contractual relationships fit for the
specific railway circumstances Real innovation properly recognised
in bids New alliances and partnerships Localise the railway
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15Rail Group With innovation in mind Just suppose: Instead of
measuring arrival times, we measure the efficiency of connections?
Instead of the barriers being shut until your ticket opens them,
they are open and only close if you dont present your ticket
Instead of a map of routes, we have a map of flows showing where
people travel between and all modes and we planned our railways
around this
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16Rail Group What Will Our Legacy Be? complacency has no part
in it The rest of the world is investing for tomorrow, now. So
should we
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17Rail Group My Challenge To You We need a new kind of
partnership - at all levels, across all interfaces Between;
workforce and passengers DfT and the Industry Industry and the
supply chain DfT, Regional and Local Government