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Exhibit List EXHIBIT LIST Reference No: HOL/00530 Petitioner: DB Cargo (UK) Limited DB Cargo International Limited Rail Express Systems Limited Published(formally DB to SchenkerCollaboration (UK Area: Limited) Monday 21-Nov-2016 Page 1 of 182 No Exhibit Name Page 1 A703 Summary of Arguments.pdf (A703) 2 - 3 2 A704 Presentation.pdf (A704) 4 - 15 3 A705 HoC Select Committee transcript 28012016.pdf (A705) 16 - 35 4 A706 HoC Select Committee 2nd Report Feb 2016.pdf (A706) 36 - 148 5 A707 DfT Response to Select Committee Report Mar 2016.pdf (A707) 149 - 182 HOL/00530/0001 HOUSE OF LORDS SELECT COMMITTEE: HS2 (LONDON – WEST MIDLANDS) BILL Petition 530: DB Cargo SUMMARY OF ARGUMENTS 1. DB Cargo has a long lease on the Willesden Euroterminal site that runs until 2119. This is close to a freehold interest. The Euroterminal operates as a multi-purpose rail freight terminal. It is a unique facility which is of very considerable importance to rail freight nationally. It is open access, so all freight operators are able to use the terminal on the same terms as DB Cargo uses it. 2. There are many public benefits arising from the use of the Euroterminal for freight. The Euroterminal supports the construction industry in London. It is used to deliver aggregates and materials to London and to remove waste and spoil. This is vital to support construction in London, especially for much needed new housing (including at Old Oak and Park Royal). It could also be important to delivering projects such as the Thames Tunnel and Crossrail 2. 3. There are significant benefits in having freight transported by rail rather than road, including in CO2 emissions and road safety. And the Euroterminal will play an increasingly important role in handling containerised freight being transported to and from continental Europe. The Euroterminal was originally established to handle Channel Tunnel freight traffic. 4. HS2 wants to use the Euroterminal for its construction works. It wants virtually all the site for 8 years and then wants a reduced area of the site for another 9 years. But HS2 does not need all the site and does not need it permanently. 5. HS2 has sought power to acquire the Euroterminal permanently. This will end DB Cargo’s ability to operate the Euroterminal. It would be virtually impossible to replace if lost. 6. DB Cargo is content for HS2 to occupy as much of the Euroterminal as it reasonably needs during construction. With the drop in channel tunnel rail freight in recent years due to the situation in Calais, and because DB Cargo has made the investment, there is some capacity at the Barking Euro Hub in the short to medium term which can accommodate some of that activity. DB Cargo can return to the site after 8 years. Beyond that period, if the Euroterminal is lost, the lack of freight terminal capacity would limit the growth of rail freight nationally. 7. DB Cargo is content with HS2’s plans to reconfigure the site and would not need HS2 to reinstate it at the end of the occupation. 1 A703 (1) HOL/00530/0002 8. DB Cargo is also content to agree a rent or compensation payment in advance, to provide financial certainty to HS2. It would be likely to be much cheaper to the public purse to allow DB Cargo to retain its long leasehold interest, rather than forcing it to pursue compensation for the reinstatement of the facility elsewhere or for the extinguishment of its operations. 9. DB Cargo is prepared to enter into a lease with HS2 in order to ensure that the site can be used for the construction phase. In any event, the fallback position should at most be temporary occupation of the terminal under Schedule 16 and not permanent acquisition. That would mean that the Euroterminal could continue to operate, to an extent during HS2’s construction – as not all the site is required all the time – and then after construction. 10. The House of Commons Select Committee asked HS2 to negotiate with DB Cargo in good faith on the basis of a lease rather than outright acquisition. HS2 agreed but in its March 2016 response added the caveat that this was subject to temporary occupation not costing more than acquisition, the so-called “economic test”. 11. HS2 did nothing to progress a lease, despite being pressed, for some nine months. The Commons Committee suggested we should return to the Lords if the matter was not resolved. There has been a burst of activity recently from HS2 and discussions on a lease are now well advanced. But the matter is not resolved. 12. The major stumbling block is HS2’s “economic test”, namely that HS2 will not pay more for temporary occupation than permanent acquisition would cost. As HS2 factors into the cost of permanent acquisition the amount it would recover in selling the interest in land when it is no longer needed – offsetting the original acquisition cost by the subsequent sale proceeds – temporary occupation would almost always cost more. 13. The operation of the “economic test” is unfair. The Euroterminal site is only needed by HS2 temporarily so it should only be taken temporarily. DB Cargo should not be deprived of its site for purely financial reasons. This concern underlay the Commons Committee’s view. 14. We ask this Committee to require HS2 to remove the Euroterminal from permanent acquisition and to finalise the lease, with temporary possession as a fallback if required, but without applying the “economic test” in this case. RICHARD HONEY Francis Taylor Building, Temple 21 November 2016 2 A703 (2) HOL/00530/0003 Presentation to Select Committee on the High Speed (London – West Midlands) Bill DB Cargo - Willesden Euroterminal 24 November 2016 Simon Ives FRICS, Property Consultant November 2016 A704 (1) HOL/00530/0004 DB Cargo - a leading provider of railfreight & logistics in the UK . DB Cargo is a leading provider of rail freight & logistics services in the UK and across Europe. DB Cargo is the largest UK rail freight operator moving about 70m tonnes by rail each year. London and the South East is a key growth area for all product types and for all rail freight operators. DB Cargo holds a lease on the Willesden Euro Terminal until April 2119 – a further 102 years. Within the “Ring Fencing Deed” of November 1997, the site is defined as a core asset to support Channel Tunnel rail freight operations. A704 (2) HOL/00530/0005 2 Willesden Euroterminal Site, North West London Willesden Euroterminal site A704 (3) HOL/00530/0006 3 Willesden Euroterminal Site Plan - boundaries Network Rail Main sidings Virtual Quarry Tarmac Cement Plant Gantry cranes Office block Spoil export operation Storage yard A704 (4) HOL/00530/0007 4 The site currently has a number of tenants who base and operate parts of their business from Willesden . The site is configured as a multipurpose railfreight terminal of some 8 ha (20 acres). Its current primary use is to support the construction industry in the North West of London, importing aggregates and exporting spoil. There is no other facility of equivalent scale in north-west London. There are presently eleven occupiers: Tarmac (lease expires November 2023) Network Rail (lease expires June 2019); and Nine other tenants and licensees, all terminable on less than 6 months notice. Like almost all UK rail freight sites, Willesden is subject to open access rules as defined by the ORR A704 (5) HOL/00530/0008 5 Current activity Headcode Origin Destination . Up to 10 daily trains importing construction materials and exporting 4G50 Willesden Washwood Heath spoil across the country 6D53 Willesden Mountsorrell 6Z77 Willesden Studdfarm . These trains operate at up to 1500 tonnes payload, equivalent to 1300 6Z15 Willesden Barrington HGV movements per day 6M92 Willesden Calvert 6Z16 Willesden Barrington . Freight trains reduce CO2 emissions by around 75% when compared with 6O96 Willesden Northfleet road vehicles 6Y15 Willesden Northampton 6Z56 Willesden Calvert 6T47 Willesden Calvert A704 (6) HOL/00530/0009 6 Significance of Rail Freight in London . Rail freight is transforming itself; government targets suggest 100% growth by 2034. Key markets are changing; traffic in the construction and automotive sectors and in containerised freight is growing strongly. The Mineral Products Association recorded annual growth to September 2015 of 8.5%. It predicts an average 3.7% growth until 2018 then 2.3% per annum until 2023. London's growth requires substantial construction activity: the Mayor’s office suggests 50,000 new homes per annum and 600 new schools. New infrastructure provision, supported by the National Infrastructure Plan, is forecast to grow at 11% per annum. Rail freight performs well in bulk haul environments as projects like the Olympic Park and Crossrail demonstrate. A704 (7) HOL/00530/0010 7 Rail is uniquely placed to move large volumes of freight into London – but it needs infrastructure . DB Cargo is investing, especially in the south-east. It has recently opened a new terminal at Barking and has agreements to operate the two new proposed intermodal terminals at Radlett and Colnbrook. Governmental targets and the environmental imperative demand more efficient carriage of goods and products. Rail is inherently and uniquely able to contribute. Projected growth and existing road congestion in London pose unique problems, rail freight can offer a solution to help reduce road congestion. Rail can help to improve air quality by providing an alternative to road vehicles. This is particularly important in light of the ultra low emission zone targets. DB Cargo is also upgrading its existing estate with plans for new multi-user facilities at Bow and Cricklewood each with the capacity to accommodate several forms of traffic.
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