Working together

Annual Report 2015 Find out more at: www.raildeliverygroup.com

Fr e The Rail Delivery Group (RDG) was set up in 2011 and brings together the owners of Britain’s passenger and freight train operating 1.6BN Passenger journeys have doubled in the companies and , to provide past two decades: growing from 801m leadership to Britain’s rail industry. (1996/97) to 1.6bn (2014/15) In 2013, a new, more fully resourced executive group was brought together to support delivery of the RDG’s workstream. The RDG’s mission is to promote greater co-operation between train operators and Network Rail through leadership £10.1bn The rail industry and its supply in the industry and by working together chain contribute up to £10.1bn with government, the supply chain to the economy per year and stakeholders. It is committed to improving services and delivering better value for money to passengers, freight customers and taxpayers. It does this by developing strategies for the industry to put into practice and by proposing solutions to policy makers.

Contents Introduction 1 The railway in numbers 2 Chairman’s statement 4 Our vision 6 Our strategy 7 Improving customer service 8 Delivering greater efficiency 10 Strengthening the benefits of GB rail 12 Building confidence and trust 14 Looking forward 15 How we operate – our structure 16 The RDG members 17 Future outlook 19 Financial statements 20 Rail Delivery Group 1 Annual Report 2015 Strategic report

The railway in numbers RAIL’S MULTI-MILLION POUND TURNAROUND HELPS FUND BETTER SERVICES

Freight growth Punctuality 79% Freight efficiency has improved. The number of freight trains run has fallen by approximately one third since 700m 2002/03, with a net increase of 79% more passenger journeys arrived in tonnes per train as planned in 2014/15 compared with 1997/98 89.7% of trains in 2014/15 arrived as planned (short distance services Capacity within 5 minutes of scheduled arrival time; long distances within 10 minutes) 28% 40% The network is being used more The number of incidents causing intensively, with the number of delays has dropped by 40% in a trains running each year increasing decade. However, delay minutes and by 28% since 1997/98 impact per incident are increasing due to congestion on the network

Figures based on data collated by KPMG. See RDG report GB Rail: better services, better journeys and better value. www.raildeliverygroup.com/rail-financials.html 2 Rail Delivery Group Annual Report 2015 Financial Safety Customer performance #1 satisfaction The UK now has the safest railway in Europe 80% Overall satisfaction levels of 80% £9.5bn in 2014/15 mean that passengers The passenger network now rated 600 million more journeys as generates £9.5bn to cover 99% ‘satisfactory’ or ‘good’ compared of its daily operating costs with 1999/2000 1/2 Nearly half of all passenger revenue comes from discounted tickets, up from 38% eight years ago

32% Passenger Staff The cost of running the rail network has fallen by 32% in the last decade, journeys through innovation, new technology and in-sourcing key activities 216,000 Rail and its supply chain employ 2.5m 216,000 people The railway brings 2.5 million people a day into Britain’s biggest 20% cities and towns Since 1997/98, train company operating costs per passenger mile have declined by 20% in real terms

31% Environment Investment by the Government in the network on renewal and enhancement has increased by 31% to respond to growth and demand 7.7m tonnes Rail reduces CO2 emissions by up to 7.7m tonnes

Rail Delivery Group 3 Annual Report 2015 Strategic report continued

Chairman’s statement

2014/15 presented the rail industry with • putting more and more data about significant challenges. In the run up to the industry’s operational and the UK general election, the railway financial performance into the became the focus of intense public public domain debate. On an already congested • taking steps to improve passenger network, the industry also pushed ahead information during disruption with the most ambitious upgrade in its (PIDD). history to respond to the continuing extraordinary growth in passengers This has laid the foundations for the and freight. next five years during which we need to plan and build for the growing Our resolve as an industry to demand for rail. collaborate was tested to the full. But throughout the past year, we Seizing the opportunity presented worked closer together to deliver by a new UK government and better value to passengers, freight devolved administrations expanding customers and taxpayers. their oversight of public transport, the RDG used this summer to review The RDG played a significant role in its activities before confirming its this, in what was its first complete purpose and direction later in the year as a fully resourced strategic year. Key will be working with body. It brought together the most government, the supply chain and senior leaders from Network Rail, and other stakeholders to increase UK and international transport groups capacity cost effectively and generate running passenger and freight services. revenue to support investment in We worked in tandem with the UK, more and better services. Scottish and Welsh governments and key stakeholders including the Rail This annual report sets out in more Supply Group (RSG) to improve the detail the RDG’s vision, how it day-to-day operations of the railway operates, what it has achieved and its and plan better for its future by: finances. It’s your railway. This is our report on what we are doing to make • identifying efficiency savings Europe’s best railway even better. worth up to £1bn • starting to scope the most MARTIN GRIFFITHS significant programme to date CHAIRMAN to modernise how we sell tickets OCTOBER 2015 • setting out how many more trains are needed on the network to respond to ever more passengers and a plan for improving stations • agreeing industry-wide priorities to get trains to run as planned 4 Rail Delivery Group Annual Report 2015 Rail Delivery Group 5 Annual Report 2015 Strategic report continued

Our vision

TO MAKE EUROPE’S BEST RAILWAY EVEN BETTER

Britain’s rail industry is leading the OUR VISION IS TO MAKE EUROPE’S way in Europe. Our railway is not BEST RAILWAY EVEN BETTER BY: without challenges, but the UK ranks • running more, better, faster and highest for passenger satisfaction and greener rail services, at the highest it has the best safety record of any levels of safety to passengers, freight major EU railway. With passenger rail customers, the public and staff travel growing faster in Britain than in • offering a personalised travelling Germany, France or the Netherlands, experience which meets passengers’ and a revitalised freight sector, we needs by being simpler to use and have one of the most successful easier to understand railways in Europe. • greater cost efficiency, enabling the rail industry and government GB rail has been transformed since to strike the right balance between the mid-1990s into the EU’s most fares, freight charges, quality improved railway, thanks to market and investment forces and an industry structure • accelerating the use of digital which brings together private sector technology throughout the industry innovation and government policy to deliver all of these improvements to better serve our customers, for passengers and freight users. as well as the wider UK economy. You can read more about our vision Building greater trust and for the future in Britain’s Future, demonstrating our commitment Britain’s Railway. to the success of GB rail with our passengers, customers, stakeholders and the wider British public, is key to delivering our vision. BRITAIN’S FUTURE BRITAIN’S RAILWAY

6 Rail Delivery Group

Annual Report 2015

BRITAIN’S RAILWAY

BRITAIN’S FUTURE Our strategy

TO STRENGTHEN THE PARTNERSHIP AT THE HEART OF GB RAIL

GB rail benefits from a diverse range of commercial passenger and freight operators running services on a single national network. Working together with government and industry stakeholders, this partnership lies at the heart of the success of GB rail.

In particular, the RDG is committed to working with the RSG to strengthen the capability and competitiveness of the rail supply chain, and help us deliver our long term ambitions for growth in the railway.

Operators have used commercial acumen and innovation to increase the market for rail in a dynamic economy. The growth in revenue has played a crucial role in enabling successive governments to invest record sums, through Network Rail, to maintain and improve the network.

Other European countries have invested heavily in their railways, but do not benefit from the same vibrant rail market, which means they have not come close to matching GB rail’s record of achievement.

Our strategy is to strengthen and maximise the benefits for our customers brought about by this range of commercial operators on a single network. By working in partnership with government, regulators and industry suppliers, we can co-ordinate solutions to cross-industry challenges. Our work programmes

Our current programme of workstreams PERFORMANCE Better performance and improved covers the following themes: improving punctuality are key to customer customer service, delivering greater efficiency, satisfaction. Led by the cross- industry National Task Force, we have strengthening the benefits of GB rail, building implemented a new process for confidence and trust, and looking forward. managing performance through Performance Strategies and a Quarterly Review process. We completed a refresh of the industry’s performance reports for Control Period 5 (CP5) and provided an industry response to the Transport Resilience Review. We Improving developed criteria for initiating a Strategic Crisis Management Team and have implemented a new process for customer service managing the autumn season on the network. FURTHER IMPROVEMENTS TO PUNCTUALITY; Also completed in this period was MODERNISING TICKET SALES; PROVIDING a biennial review of the group’s CLEARER INFORMATION; ENHANCING needs, purpose and membership and a thorough analysis of the STATIONS; AND CONTINUING TO SECURE THE causes of under-performance in CP4. This was agreed across the SAFEST ENVIRONMENT FOR OUR CUSTOMERS industry and used consistently in our external communications.

INFORMATION & TICKETING The task of the Information & Ticketing working group is to deliver, cost effectively, an excellent customer experience. Our focus is on the provision of clear information, an attractive range of good value fares, a choice of retail channels and easy ticket purchase.

We have begun scoping the most significant programme to date to modernise how we sell tickets by promoting and accelerating an industry-wide migration from paper to digital tickets over 5–10 years.

In parallel, we are progressing with our five point plan for improvements which supports:

• better information about fares • easier ticketing • simpler, more convenient fares • clearer conditions and fairer treatment • more and easier ways to claim compensation when things go wrong. We have engaged with the Office of The programme was launched at a Rail and Road (ORR) on key regulatory Stations Summit in December 2014 initiatives, including the Retail and enabled the SSG to engage with Information Code of Practice and stakeholders beyond the rail sector. review of the rail retail market. We are The summit formed the foundation also in discussion with Future Railway of the process to deliver an industry regarding innovation, including the vision for stations. Leading possible funding of new initiatives. independent transport consultancy Steer Davies Gleave was commissioned STATIONS to work with the rail industry to We provide a high level industry lead develop the vision. Nine principles on stations, with the particular objective have been drawn up following of optimising long term outcomes widespread consultation with the more efficiently. finalised vision due to be launched at the end of 2015. Railway stations have the potential to regenerate communities, support HEALTH AND SAFETY local identity and serve as hubs of During the year, the RDG initiated the innovation. The Stations Strategy development of a rail industry safety Group (SSG) provides the top level and health strategy, supported by the industry lead on a strategic vision for Rail Safety and Standards Board stations of the future, not just as (RSSB) and the wider industry. A places to access rail services – driving workshop in January 2015 produced the agenda by engaging with rail an outline purpose statement and industry and infrastructure leaders. reached agreement over scope, governance and content. Work on the The group is focused on building the strategy continues, with an intention customer experience from the start to publish it early in 2016. and identifying how blocks to progress can be resolved.

Rail Delivery Group 9 Annual Report 2015 Our work programmes continued

Delivering greater efficiency TRANSFORMING HOW MAINTENANCE AND IMPROVEMENT WORKS ARE MANAGED AND IMPROVING THE WAY MAJOR INVESTMENTS ARE PLANNED TO MAXIMISE USER BENEFITS, EXPAND SERVICES AND REDUCE COSTS ASSET, PROGRAMME & SUPPLY The Network Optimisation workstream ROLLING STOCK CHAIN MANAGEMENT identified unnecessary infrastructure The RSSSG is a pan-industry group This programme brings together with long term benefits estimated at comprising vehicle owners, operators train operating companies, freight over £10m. Between 750 and 1,000 and maintainers, and the RDG. It operators, contractors and Network non-used or under-used switches provides recommendations, informing Rail as well as representatives from and crossings are currently being debate and choices on rolling stock the Department for Transport (DfT) progressed within the scope of re- issues at a strategic level, and and ORR to ensure that work on the signalling schemes or standalone identifying efficiencies to be gained, network delivers the best value, interventions. particularly where companies and maximum benefits and minimal Network Rail work together. disruption to passenger and Following the overrunning of freight services. improvement works after Christmas Our publication of the third annual 2014, the Secretary of State update of Long Term Passenger During 2014/15, we identified that commissioned an independent review Rolling Stock Strategy for the Rail action in five areas could secure by Anton Valk into the planning and Industry was welcomed by efficiency savings worth up to £1bn, timing of engineering works on the government and the industry as as well as improved management of rail network. We broadly supported its a valuable contribution to long term risk and contingency, and longer term conclusions and its recommendations planning. The report provides a range safety and performance benefits. for industry action to improve the of forecasts to enable the national way it plans improvement works. A fleet to accommodate future passenger We saw good progress in the Industry delivery plan is being developed to take numbers over the next 30 years. Access Programme (IAP) Phase 1 forward the report’s recommendations. programme, designed to optimise The group worked with a number access for maintenance, renewals PLANNING of stakeholders, including DfT, on a and enhancements. The programme The Planning Oversight Group variety of rolling stock issues, to help has engaged with Network Rail and provides the long term, continuous inform the franchise invitation to identified potential efficiencies of planning narrative between industry tender for Northern and TransPennine approximately £50m that could be and governments. in the area of procurement. It also achieved across a relatively small worked with the supply chain to number of sites. Our planning workstreams will inform develop understanding of the rolling the Initial Industry Plan (IIP). A wide stock strategy; considered a number Within the programme, the Cost of range of organisations and groups of potential areas for CP5 efficiency; Contingency workstream developed from across the industry have actively and initiated workstreams in the areas a Project Alliance Agreement been engaged to do this. These of rolling stock, depots and stabling model to incentivise parties jointly include the RSSB; the National Skills to input into the IIP process. Work will to reduce contingency budgets and Academy for Railway Engineering continue on the long term rolling reduce costs. We also started the (NSARE); the Rolling Stock Strategy stock strategy in 2015/16 to reflect development of an industry-wide risk Steering Group (RSSSG); the RSG; new franchises and changes to and value management framework. and Transport Focus. Relationships underpinning assumptions. with other key stakeholders, funders and specifiers have developed, including the Scottish Government, the Welsh Assembly and ORR.

We delivered a clear position statement on how the rail industry can help HS2 as it develops, to maximise the benefits of this project to GB rail. We also published The Way Ahead, a report that seeks to improve stakeholder understanding of how the rail industry’s long term planning process works, and how it can help the railway serve the UK better.

Rail Delivery Group 11 Annual Report 2015 Our work programmes continued

Strengthening the benefits of GB rail IMPROVING THE STRUCTURE OF REGULATION FOR BOTH PASSENGER AND FREIGHT OPERATIONS; DELIVERING MORE FOR PASSENGERS AND TAXPAYERS; AND MAKING THE CASE FOR POLICIES THAT SUPPORT A VIBRANT RAIL FREIGHT SECTOR

CONTRACTUAL AND markets; and environmental FREIGHT REGULATORY REFORM regulation on replacement diesel The Freight working group provides Drawing on expertise from across the engines. At the same time, we leadership and strategic direction to RDG’s membership, the aim of the developed a cohesive GB rail view on the rail freight sector whilst promoting Contractual and Regulatory Reform a range of issues, which has allowed its benefits to the UK economy. working group is to provide a clear the industry to effectively influence framework that gives confidence to both EU stakeholders and the UK Rail freight has transformed itself industry, users and taxpayers. Government on European issues. since the mid-1990s into a competitive and vibrant industry and has a key We completed the first two phases of FRANCHISING part to play in meeting government’s a review of charges and incentives for The purpose of the Franchising economic and environmental targets. use of Network Rail’s infrastructure. In Steering Group is to enable Our report Freight Britain sets out the 2014/15, we developed the industry’s the development of an RDG position, long term sustainability of freight. vision of what the regime should clear messaging for engagement with deliver and then set out how well the officials, and support for political and An agreed and shared track access industry considers the current system strategic developments. charging and incentive regime which delivers against that vision. The provides certainty and sustainability preferred options for CP6 and beyond Our statement on the positive role for the rail freight sector beyond CP5 will inform ORR’s next review. of private sector engagement in rail is the aim of the newly formed Freight service provision forms the basis of Investability and Sustainability Group. We undertook a series of activities to policy and strategy engagement for One option is an accelerated element simplify and improve the flexibility of the future. of the RDG Review of Charges. passenger and freight access rights which should facilitate better use During the year we developed a A package of reforms to the of network capacity. We made franchising policy, and identified management and control of strategic progress in a number of areas, opportunities for change, through freight sites has been developed by including simplifying the way that structured engagement between Network Rail. Draft proposals have access rights are articulated, a review the RDG and the DfT Rail Executive. been reviewed with freight operator of Network Rail’s Sale of Access This work includes the RDG chairing companies (FOCs), ORR, DfT, Rail Rights processes, and measures the steering group for the DfT Freight Group and end user groups. to improve transparency. Franchise Agreement Review. A full consultation on the Freight Estate Reform Programme is due We also influenced European 2015/16 will see further progress to be launched in March 2016. Commission rail-related proposals to on the priority areas for the DfT ensure that efficient UK procedures and franchising process to meet passenger existing governance arrangements and stakeholder requirements and can continue. This includes: proposals with wider strategic overall direction on charging and track access of rail service procurement. agreements; the 4th Railway Package (ongoing) to promote more open

12 Rail Delivery Group Annual Report 2015 Work has continued on the review of access rights and meetings have taken place between FOCs and Network Rail. FOCs have retained 468 unused rights for their own future needs. Those will continue to be assessed to ensure there is justification in retaining them.

You can read more about our work in this area in Freight Britain. Our work programmes continued

Building confidence and trust MAKING THE CASE FOR CONTINUED INVESTMENT AND ENHANCEMENT TO THE RAIL NETWORK; EXPANDING TRANSPARENCY; AND MAKING DATA PUBLICLY AVAILABLE TO THE CUSTOMER AND TAXPAYER

COMMUNICATIONS We do this by: Making Darwin, the official industry Creating a single voice for its real-time train running information members has been the focus of the • generating positive stories about rail engine, available to third parties RDG communications team. Crucial • running a 24/7 press office, has been a major step forward to this was producing Britain’s Future, 365 days a year in open data provision, resulting Britain’s Railway, our narrative on the • amplifying messaging in significantly more people using railway about which the entire to stakeholders the data feed. industry could communicate • co-ordinating cross-industry consistently and engage stakeholders communications in crises. Almost all in a dialogue. websites now publish data in a Through a variety of public initiatives, user friendly format following This narrative explains why the railway we aim to demonstrate that the implementation of 10 key transparency matters, with a particular focus on railway is a force for good. A campaign indicators developed by Network Rail. rail’s value to the economy, industry is under consideration to engage the achievements such as more services public, rail users and non-users, in a and increased train company returns dialogue about the important role rail to government, and our commitments plays in all our lives. We have also to deliver better services, journeys staged a touring exhibition on the role and value for money. of the railway in World War I, working with government, industry partners The objectives of the RDG’s and the voluntary sector, including ENGAGING STAKEHOLDERS communications activity are to promote the Royal British Legion. Building support and awareness rail, enhance public advocacy about amongst key decision-makers is the railway and show how the RDG TRANSPARENCY vital if the RDG is to achieve its is improving the day-to-day operation Our work on improving transparency goals. To this end, we organised of the railway and long term planning. across the rail industry is designed to a number of initiatives designed build greater trust with customers, to engage publicly with senior We take part in political engagement stakeholders and funders. We are stakeholders including government with governments and elected putting more and more data about ministers and officials, and senior representatives in Westminster, the industry’s operational and business leaders. The Secretary Holyrood and Cardiff and wider financial performance into the of State for Transport, Rt Hon stakeholder engagement within rail public domain. Patrick McLoughlin MP, and and beyond, such as the City, business Shadow Transport Secretary, groups, unions, regulators and The aim of the workstream is to Lilian Greenwood MP, headlined passenger groups. We also represent ensure that information is relevant the RDG’s industry day in February the railway at events in Westminster, to passengers and can inform their 2015, which allowed stakeholders Edinburgh and Cardiff and around choices and journeys as well as from across the industry and supply the country, such as at conferences, being in an accessible format and chain to share their views. We also seminars and roundtables. easy to find. We always support maintained our ongoing political a bias towards disclosure where it dialogue through engagement We also manage national media for our is practicable and cost effective in with politicians at the main members, engaging with broadcast and relation to the benefit to passengers. party conferences. print journalists and via social media. 14 Rail Delivery Group Annual Report 2015 Looking forward FOSTERING THE DEVELOPMENT OF TECHNOLOGIES TO DELIVER OUR VISION AND PROMOTING POLICIES WHICH DEVELOP THE NECESSARY SKILLS, CULTURE AND PRODUCTIVITY OF OUR PEOPLE

TECHNOLOGY & OPERATIONS A task force, led by Angel Trains CEO The Association of Train Operating The role of the Technology & Malcolm Brown, established the Companies (ATOC) informal pensions Operations Steering Group is to governance and supporting processes working group continued its ongoing establish the high level priorities for for the pilot Innovation in Franchising work with trade unions to reduce investment in research, development Funding Scheme. Virgin Trains East employer pension costs and developed and innovation with the aim of securing Coast is the first franchise to benefit proposals to ensure that sustainable funding and aligning the work across from this fund. pension arrangements are put in place. the industry. Our objective is to accelerate and support the delivery We also developed an evaluation A study into a scientific approach to of the Rail Technical Strategy 2012. framework, to determine the benefits route knowledge training has been available from the innovation commissioned by the ATOC Operations We continued to lead industry programme governed by the TSLG. Council and will be undertaken by consideration of ‘best ways’ to improve Future Railway. The rail industry has mobile connectivity for customers PEOPLE also been a ‘trailblazer’, securing new while travelling on trains, working on A key area of activity for the People standards for a number of engineering the challenge in closer collaboration working group has been the and operational role apprenticeships. with government departments, Ofcom development of a strategic vision for and the mobile network operators. where the industry needs to be, in terms of the skills which will be required in the In 2014/15 we provided a thorough next 10 years. The group also actively review and analysis of potential promotes the industry’s success, benefits to the industry of proposed relevance, attractiveness and stability technological innovations and the of employment, focusing on key grade contribution they would make in groups and skills. NSARE delivered a the four key areas for the industry: detailed proposal for defining and closing the industry’s skills gap. The • increased capacity strategy has now been agreed and • customer satisfaction adopted by the industry. • reduced cost • a reduction in carbon. The successful pilot of an industry train driver training course was completed The steering group has the important in 2014 – just one area where we have role of endorsing the industry made significant progress this year. innovation programme that is Developed by RSSB in partnership with overseen by the Technical Strategy Southeastern and Network Rail, the Leadership Group (TSLG) and course is now being rolled out for delivered by RSSB. further pilots.

Rail Delivery Group 15 Annual Report 2015 Corporate governance

How we operate – our structure THE RDG CURRENTLY HAS THREE TYPES OF MEMBERSHIP

1. MEMBERS a monthly basis. Full minutes are 3. ASSOCIATE MEMBERS Members of the board are made available on the RDG website. Any organisation that can help up of Network Rail and any the RDG achieve its objectives organisation or group which has RDG members lead the can become an associate member. a turnover from passengers or workstreams wherever possible. These tend to be major suppliers freight operations on the UK The workstreams are supported to the rail industry, and other network in excess of the current by groups, many of which have industry bodies (including British prescribed amount. members from across the Transport Police). They are not industry, and an executive team members of the board but, like Members are responsible for the which pools together ATOC staff, licensed members, contribute to funding of the RDG, with Network secondments from Network Rail workstreams and provide valuable Rail paying 50% and other and other industry resources. input to the annual forum. members paying proportionate to their revenue from rail activities. 2. LICENSED MEMBERS For a full list of all our members, Members also nominate a director Any company that holds a railway board minutes, the RDG Articles who sits on the board. There are licence, i.e. is able to operate of Association and our anti- currently 14 permanent members trains on the national network, trust compliance details, of the board (see pages 17 and 18) can become a licensed member. please visit our website: as well as regular attendances While they are not members of www.raildeliverygroup.com from some licensed members. the board, they contribute to the Members of the board meet on workstreams and provide valuable input to the annual forum.

OUR MEMBERS

16 Rail Delivery Group Annual Report 2015 THE RDG MEMBERS

MARTIN GRIFFITHS MARK CARNE DOMINIC BOOTH CHIEF EXECUTIVE, STAGECOACH GROUP CHIEF EXECUTIVE, NETWORK RAIL MANAGING DIRECTOR, ABELLIO UK CHAIR OF THE RDG DEPUTY CHAIR OF THE RDG Dominic joined Abellio Group as a Martin is Chief Executive of Stagecoach Formerly executive vice president for main board member in January 2007. Group plc, one of the UK’s biggest rail Royal Dutch Shell plc in the Middle East In 2012, he was appointed to the operators. The company operates and North Africa, Mark’s career has newly created post of Managing South West Trains and spanned different roles in engineering, Director UK, after winning the Greater Trains and, along with Virgin, is major projects, operations and safety. Anglia rail franchise. In this role, responsible for the West Coast and He took over as Chief Executive of Dominic is responsible for all Abellio’s East Coast inter-city rail franchises. Network Rail in February 2014. business in the UK. RDG workstreams: Stations

DAVID BROWN DEAN FINCH ALISTAIR GORDON CHIEF EXECUTIVE, GO-AHEAD GROUP GROUP CHIEF EXECUTIVE, CHIEF EXECUTIVE OFFICER, KEOLIS UK David is Group Chief Executive of NATIONAL EXPRESS Alistair joined Keolis UK as Project The Go-Ahead Group plc. He has held Dean is Group Chief Executive of Director in 2004, leading the a number of senior transport industry National Express. Prior to this, he company’s UK bidding for positions, the most recent being was Group Chief Executive of Tube Southeastern, Rail and Managing Director for Surface Lines from June 2009. Before that, Southern. In 2010, he was promoted Transport at . he worked for over 10 years in senior to become Chief Executive Officer Go-Ahead has the largest share of UK roles within FirstGroup. of Keolis UK. passenger journeys (30%) made on its RDG workstreams: RDG workstreams: train operating companies’ services: Franchising Technology & Operations Govia Thameslink Railway, Southern, Southeastern and London Midland. RDG workstreams: Information & Ticketing, Transparency

DAVID MARTIN RUSSELL MEARS TIM O’TOOLE CHIEF EXECUTIVE, ARRIVA CHIEF EXECUTIVE OFFICER, CHIEF EXECUTIVE, FIRSTGROUP David joined Arriva in 1996, becoming FREIGHTLINER GROUP LTD Tim became FirstGroup’s Chief a member of the board in February (Previously Peter Maybury) Executive in November 2010. Before 1998 with specific responsibility for Russell joined Freightliner in 1993 and that, he was Managing Director of the group’s international operations has been the Chief Executive Officer London Underground between 2003 and development. From March 2005, since 2013. Prior to this, he was the and 2009. He is a Non-Executive he was Group Managing Director Finance Director of Freightliner Director of CSX Corporation, a rail – Operations and Deputy Chief Group since January 2005. freight transportation company in Executive, and since April 2006, North America. He served as the RDG workstreams: Chief Executive. RDG’s first chairman. Freight RDG workstreams: Asset, Programme & Supply Chain Management

Rail Delivery Group 17 Annual Report 2015 Corporate governance continued

PAUL PLUMMER MICHAEL ROBERTS DAVID STRETCH GROUP STRATEGY DIRECTOR, DIRECTOR GENERAL, RAIL DELIVERY MANAGING DIRECTOR OF TRANSPORT NETWORK RAIL GROUP AND CHIEF EXECUTIVE, ATOC SERVICES, Paul joined Network Rail in October Michael joined ATOC as Chief (Previously Ian Downie) 2002 and is Group Strategy Director. Executive in April 2008, and was David was appointed Managing He is responsible for planning the appointed Director General of the Director of Transport Services at development of the network, business RDG in 2013. He previously worked Serco in January 2010. His main planning, the interface with at the CBI, where he was Director responsibilities are for the leadership, government and economic regulation. of Business Environment from 2000. strategic development and growth of the transport business across the UK RDG workstreams: and Europe. He has Executive Director Contractual and Regulatory Reform, responsibilities for Serco’s two UK Planning and Oversight Group joint venture train companies, and Northern Rail.

ALAIN THAUVETTE PHIL WHITTINGHAM HEAD OF REGION WEST, MANAGING DIRECTOR, VIRGIN TRAINS DB SCHENKER RAIL Phil became Director, Finance in 2008. Alain has been a member of the Prior to joining Virgin Trains in 1999, management board of DB Schenker he worked as a Chartered Accountant Rail since February 2010. He promotes at KPMG, having qualified in 1996. the creation of a European railway network through his responsibilities in the UK, ECR France and Transfesa in Spain. RDG workstreams: People

18 Rail Delivery Group Annual Report 2015 Future outlook

The RDG is using the opportunity • how do we build a bigger and better presented by a new UK government network without disrupting the and parliament to review its work millions of people who travel and programme for the next two to hundreds of tonnes of goods that three years. It is carrying out this are moved by rail every day? reassessment in consultation with DfT • how do we become more cost and other significant stakeholders. efficient while modernising the customer experience? The key challenges the industry faces in the coming years are: In 2015/16, the RDG will demonstrate leadership by working out how to • how do we respond to the move forward on some of these big continuing strong growth in issues, collaborating with the UK, demand for passenger and Scottish and Welsh governments as freight rail services? well as regional and local authorities, • how do we pay for the extra trains and the supply chain to build a better and lines, the bigger stations and railway for passengers, freight platforms, that are needed to customers and the nation. accommodate ever more rail users, particularly when government funding is declining? Financial statements Profit and loss account For the year ended 31 March 2015

Unaudited 7 months Year ended ended 31 March 31 March 2015 2014 £000 £000 Turnover 4,140 40 Operating expenses (4,118) (190) Operating profit/(loss) 22 (150) Profit/(loss) on ordinary activities before taxation 22 (150) Taxation on profit on ordinary activities (6) 30 Profit/(loss) after taxation 16 (120)

There are no other recognised gains and losses other than those recorded through the profit and loss account above and therefore no separate statement of total recognised gains and losses has been presented.

All activities are continuing.

There are no differences between the amounts reported in the profit and loss account and their historical cost equivalents.

Balance sheet As at 31 March 2015

Unaudited As at As at 31 March 31 March 2015 2014 £000 £000 Fixed assets Investments — — Current assets Debtors 2,178 26 Cash at bank 436 145 2,614 171 Creditors: amounts falling due within one year (2,590) (163) Net current assets 24 8 Total assets less current liabilities 24 8 Net assets 24 8 Capital and reserves Called up share capital — — Profit and loss account 24 8 Reserves 24 8

These financial statements were approved by the board of directors and authorised for issue on 28 July 2015.

Reference: This is an extract of the annual audited accounts. For more detailed information please go to Companies House online.

COMPANY REGISTRATION NO. 08176197

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