RAIL IN THE NORTH All Party Parliamentary Group

Fair investment, better services, more economic growth

supported by THE ALL PARTY PARLIAMENTARY Rail in the North GROUP

Chair  Julie Hilling MP Vice Chairs  Jason McCartney MP, Ian Mearns MP and Andrew Jones MP Secretary/Treasurer  Pat Glass MP

The All Party Parliamentary Rail in the North Group was established at the time of the General Election in order to inform debate over the future of railways in the North of . The group has quickly proved itself to be a useful platform for developing and maintaining effective dialogue between key political influencers and stakeholders, including , Passenger Transport Executives and Train Operating Companies. It helps to raise the profile of rail issues in the North of England within Parliament and Government.

The involvement of organisations across the rail industry enables the group to develop a programme of meetings and other activities on key issues affecting rail transport in the North, in recent times meeting to discuss key topical issues including metal theft and the Initial Industry Plans. The important role that the group is now playing in the policy debate is also evidenced in its submissions to recent Department for Transport consultations on rail franchising reform and on HS2.

supported by FOREWORD

Welcome to Fair All this is against a background of record to our partners over the coming year, as it investment, better passenger growth, which is set to continue is a critical year for the sector. The debate services, more economic well into the future. Growth that exceeds on reforming the railways continues as the growth, a new pamphlet that of London (an estimated 4% per Government responds to Sir Roy McNulty’s we have commissioned annum compared to 1.5% for London routes value for money review; the future of high to reflect on the past according to industry estimates). These speed rail is to be settled; and, critically, year as the All Party levels of growth had not been anticipated in the process for letting the franchises for the Parliamentary Rail in the the current franchises for the North and as a North (Northern and Transpennine) begins in North Group. The articles consequence the opportunities to capture the earnest. included provide the key benefits of growth to reinvest have been lost. sponsors and opinionmakers for the North’s We must not allow that to happen again. Whilst the year ahead promises to be full railways with the opportunity to explore the of opportunities for us to influence the key policy issues affecting rail transport The All Party Group of MPs believes that there development of the railway, we all believe that provision in our region, and provoke are a series of specific priorities with regards without a concerted push, there is a very real discussion on how we as parliamentarians, to transport infrastructure which should be danger that the North’s needs are once more sponsors and stakeholders can work together committed to. It is absolutely crucial to secure ignored. As Chair of the group I am grateful to improve the North’s railways. an ongoing commitment to additional trains for the support of the sponsors and other in the near term to relieve over crowding partners who have helped us over the past One of the key reasons why the group was and replace the old and unsuitable rolling year. I am keen that the Group continues established and why it has enjoyed crossparty stock, as well as making the case for further to be a forum for raising and discussing the support in its first year of existence is that electrification across the North. needs our railways and it is important for the needs of the North’s railways are very us, as Parliamentarians to hear what the evident to anyone who has used them. In the The All Party Parliamentary Group also industry, local authorities, rail users and past the North has consistently done poorly believes that a commitment to full funding of others have to say. in terms of rail investment, resulting in poor the Northern Hub project in the next Control quality rolling stock, overcrowding and unmet Period (2014-2019) must be secured, and passenger demand, and a ever increasing will continue to act as a key supporter of the sense of general frustration among those of Government’s plans to bring High Speed 2 to us who care about the railways. the North of England as quickly as possible. Julie Hiling MP As a group we will be making our views Chair, All Party Parliamentary clear to the Government, to industry and Rail in the North Group A SERIOUS AND CREDIBLE PROGRAMME FOR GROWTH

infrastructure that best deliver sustainable In addition to this, the Ordsall Chord has economic growth - including rail. That is finally got the go ahead. The Ordsall Chord why rail was allocated £18bn of funding in project will tackle a major bottleneck in the The Rt Hon Theresa last year’s Spending Review. That has come network, and enable faster and much more Villiers MP with a downside - an RPI +3% increase in frequent services to run across the North Minister of State fares for three years to help fund the vital of England - including between , improvements we need. But even taking that , , Newcastle, and Hull. for Transport into account, rail came out of the spending review far more strongly than anyone We also recognise the benefits that the expected. And I think the outgoing Secretary remainder of the Northern Hub programme of State deserved all the many accolades he could offer, and will be looking very seriously received for his part in securing that result. at the whole proposal in the run up to next For nearly 200 years, the railway has been July’s HLOS 2 statement. Affordability issues bringing prosperity to the North. Connecting There are a number of reasons why the will need careful consideration, and it will people with the workplace, and goods with Chancellor chose to prioritise investment be necessary to make a judgment on the the marketplace. Providing the links on in rail. Not only can rail deliver growth. It different components individually. This is which businesses rely. And the Coalition can deliver more balanced sustainable unlikely to be an ‘all-or-nothing’ decision. Government believe that rail can play a vital economic growth across the country, helping Alongside measures to improve the role in spurring growth in modern Britain. to tackle the prosperity gap that continues infrastructure, we’re also modernising our That’s why the Coalition is today overseeing to divide North and South. £300m will be rolling stock. In total, we’re investing in 2,700 the biggest rail upgrade programme since the invested in rail electrification in the North new carriages across the rail network to ease Victorian era. West over the next 6 years, upgrading overcrowding on many routes. In Leeds alone crucial routes between Manchester, commuters are set to benefit from an extra For decades, British Governments have Liverpool, and Wigan, delivering significant 2,000 seats a day. responded to the need to rein in spending environmental, economic and passenger by reducing capital investment - typically benefits. Electrification will also allow these Yet despite our very significant commitment in large scale infrastructure schemes. lines to benefit from the rolling stock cascade to updating and improving the existing Today, though, our priorities are clear. triggered by the programme and railway, we also recognise its inherent Despite severe pressure on budgets, we allow existing diesel trains to be used on constraints. That’s why in 2008, in have made a strategic choice to increase other routes. Opposition, I championed high speed rail - at capital investment in those parts of the 2 a time when the Labour Government had thousands of responses and will publish our to invest in better services and address dismissed it as an option and ruled it out of response towards the end of the year. passenger needs. their 30 year strategy for the railways. I said then and I continue to believe that this is a As we do in so many areas, this Government We’ll also be reviewing fares regulation to project which can transform the economic also recognises the benefits localised see if we can eliminate some of the many and social geography of Britain. Contrary decision-making can bring to transport. The anomalies it contains, smooth out the most to the allegations made by its detractors, success of community rail gives us a hint extreme cliff edges, and better incentivise HS2 is not, and never has been, about of the benefits local input and commitment off-peak travel. I will be expecting the rail shaving a few minutes off the journey time to could bring. The upcoming refranchising industry to step up to ensure that they deliver Birmingham. It is about meeting the long term process for Northern and TransPennine a more user-friendly system for passengers. A transport needs of our economy. It is about Express will provide a real opportunity to modern fares system that helps fill up empty delivering the transport links that test the case for devolving more decisions to trains and spends less on transport thin air are absolutely crucial for future economic local authorities and PTEs. Discussions are is bound to involve some complexity. So an success. I firmly believe that HS2 will do more ongoing between the DfT and the PTEs, with important component of a successful reform to tackle the economic imbalance between a number of options on the table. There are should be aimed at ensuring that when the North and South than any policy tried many issues to resolve, not least of which passengers buy tickets, they can navigate the by the long succession of Governments that is whether to devolve right down to a very choices available and find the best ticket for have grappled with this seemingly intractable local area or try to create a consortia of local their journey without too much uncertainty problem. authorities to input into decisions across and too much hassle. more of the Northern franchise network. Although we are clear that the scheme will I genuinely believe that the measures I have deliver benefits to the whole country, it is Another key area for reform we are pursuing outlined in this article represent a serious the North that stands to get most from HS2 is franchising. The Coalition Agreement and credible programme to generate growth - in the same way regional cities around commits us to longer more flexible franchises and strengthen the competitiveness of the Europe have flourished when connected and a departure from the excessive micro- North of England by improving its transport to high speed rail. It would also free up management that characterised the infrastructure. I think they give us the chance huge amounts of capacity on existing lines, approach of the previous Government. to deliver a real shot in the arm for the providing space for more commuter, regional By introducing longer, less prescriptive Northern economy. A chance to deliver the and freight services on the West Coast, East franchises, we want to give the industry more improved capacity and connections that cities Coast and Midland Main lines. Following freedom to innovate, and a stronger incentive and communities across the North need to the consultation we are currently analysing grow and prosper. 3 RAIL IN THE NORTH: A TRAIN OPERATORS PERSPECTIVE

Northern is the largest train operator in reliability, has helped us to attract 38% the country, connecting people with jobs, more passengers since the start of the families and leisure activities across the franchise – a staggering achievement for north of England. We provide 2,500 local a franchise which was awarded on a ‘no and regional train services every day, with growth’ assumption. over 88 million journeys being made on our services each year. From day one, we have focussed on delivering consistently good local train Over the last seven years, much has services for our customers. However, we been achieved for the benefit of our have always been aware that our services customers through a combination of have also brought considerable economic, hard work, innovation and a strong ethos social and environmental benefits to of partnership. Serco and Abellio, the the regions. To help us quantify these owners of Northern, have invested more benefits, we recently commissioned Arup, than £30 million and our partners more an independent firm of consultants, to than £100 million to deliver more trains, investigate. better stations and new services. Drawing on a range of data and research, That investment has been delivered as a Arup explored a number of subjects result of the strong, effective partnerships ranging from the role that our services we have built with Network Rail, the five play in supporting economic growth, Passenger Transport Executives in the through to the environmental benefits north of England, many local authorities that our services deliver. Perhaps most and dozens of community organisations. importantly in this challenging economic climate, Arup found that each year, our The investment delivered by those services generate over £650 million of partnerships, combined with dramatic economic and other benefits for the north improvements in punctuality and of England. This is based on a range of

4 NORTHERN RAIL

factors such as journey time benefits, Following the publication of Sir Roy tourism impacts and direct employment McNulty’s Rail Value for Money Study, benefits. it is clear that significant cost savings need to be made across the industry Clearly, this is a substantial figure. Even so that we can afford to invest to meet taking account of the subsidy which future demand. At Northern, we know we receive from regional and central how to make a little investment go a long Government to operate our network way and we are talking to our partners, of services, this still equates to a very including Network Rail, about how to do positive benefit cost ratio in the region of things more effectively and achieve even 2:1. better value for money.

“our services generate over There will be changes in what we do and £650 million of economic how we do it to reflect improvements in technology and changes in society, but and other benefits per year we must always remember this is a public for the North of England” service that is growing and could grow even more with further investment. The research also highlighted the role that our services play in reducing the carbon Over the coming years, we will continue footprint from travel. Arup found that our to work with all of our partners to improve average passengers generate 69g of the railway in the north and make the CO2 per passenger kilometre, compared case for further investment into the with 129g of CO2 if the same journey network. was made by car. Clearly, this significant reduction in carbon emissions can only Ian Bevan help the north to achieve a low carbon Managing Director economy. Northern Rail 5 RAIL - THE GREAT SUCCESS STORY OF OUR AGE

recent years, outlined above, risks being Newcastle to Leeds by £1,775. It cannot thrown into reverse by the decisions to be right that commuters face paying Maria Eagle MP hike fares and cut back vital investment in more for their season ticket than for their infrastructure. mortgage or rent, just to get to work. Shadow Households are facing a cost of living crisis Secretary of State Firstly, the decision to raise fares by far and the decision to increase commuting for Transport more than had been planned by the costs is simply making the situation worse previous Government risks pricing people for families up and down the country. off the railways. Making it harder for people to afford to travel to work and take It is also a huge mistake to be pressing up new employment opportunities can only ahead with proposals for the biggest Rail is the great transport success story damage growth, push up unemployment closure of ticket offices and loss of of our age, with more people travelling and make it harder to reduce the deficit frontline staff for a generation. From by train that at any time for almost a by increasing welfare costs. Increasing Berwick to Burnley, from Salford to Settle, century. There has been a 6% increase fares by 3% above inflation every year for nearly over 600 ticket offices face closure in passengers in the last year, while the next three years is unjustified and across the country. It is already hard Integrated Transport Authorities across the will hit commuters hard. Alongside this, enough for passengers to get the best North of England have seen rail growth of handing back to train companies the right deal thanks to our overly complex ticketing more than a fifth during the past decade. to average out the fare cap will mean many system; replacing people with machines Record investment over that period has commuters face double digit percentage will leave customers paying more just as seen reliability, punctuality and safety all increases each year, an eye watering 30% ticket prices are spiralling. improve while journey times have been increase over the next three years. substantially reduced on many routes. It is of course right that we take steps to The effect these fare increases could reduce the £4 billion subsidy required by Yet despite all this good news, there is have on the North is stark. By 2015 a the rail industry, but higher fares, closing real cause for concern about the direction season ticket between Manchester and ticket offices and employing fewer staff is that the present government is taking on Liverpool will have increased by over £700; not the right answer. Instead, I believe we rail. The progress that has been made in Newcastle to York by over £1,400; and need to tackle the fragmented structure

6 of the rail industry that is the legacy of I have called for a single bill to include The Government is also wrong to deliver a botched privatisation and do more to the whole route through to the North, body blow to British train manufacturing reduce the money leaving the industry giving much needed certainty to the whole with its decision to award the Thameslink each year in profit, while the costs to project. rolling stock contract to a foreignbased taxpayers and farepayers rise. consortium. The loss of highly skilled jobs The decision to press ahead with and apprenticeships across the country I also feel that at a time when we the previous Government’s plans for thanks to this decision shows we need to need a credible plan for growth, the electrification in the North West is also change the way in which we procure rolling decision to scale back investment in rail sensible, but we now need to see a real stock. infrastructure is economically illiterate. commitment to completing the Northern It is excellent news for the North that Hub project. This ambitious plan to provide What is needed is a clear plan for growth the Government is continuing to take 700 more trains each day, improving and jobs with transport infrastructure at its forward our plans for a new high speed connectivity between our Northern towns heart - British manufacturing should play rail line between London, Birmingham, and cities and enabling 3.5 million more a central part in that. Manchester, Sheffield and Leeds. There passengers every year to use the network, is simply no credible alternative way has the potential to transform rail in the Labour will continue to press the Coalition of addressing the worsening capacity North. We also need a commitment to the to sustain the investment begun by the constraints on the existing main lines. electrification of the Midland Main Line previous government on our rail network from London to Derby, Nottingham and across the North of England, while “we now need to see a real Sheffield. ensuring passengers are not priced off the railways with extortionate fare rises. commitment to completing The Government is continuing with the the Northern Hub project” project to deliver a new generation of high The evidence so far is that the speed inter-city trains, but is wrong to have Government’s ideological decision to cut However, the Government is wrong to cut the order from the planned 1,400 to too far and too fast risks throwing the have decided only to legislate for the first just 600 carriages. It is also a mistake to progress that was made in recent years phase of the new line from London to scale back the plans for other new rolling into reverse. Birmingham in this Parliament. That’s why stock, vitally needed across the North.

7 A STRATEGY FOR RAIL

But currently passengers are frustrated Following these announcements, it is by delays, disruption and longrunning essential that current spending on rail Louise Ellman MP engineering works which can wipe out infrastructure is at least maintained in Chair, House of evening and weekend services; they the next Network Rail control period, from are annoyed by the lack of real time 2014 to 2019. However, it is also time Commons information during periods of disruption; for spending on rail to be re-balanced, Transport Select and they are fed up with overcrowded with more emphasis on enhancements to Committee carriages. Most of all, though, passengers the network in the North and other areas are struggling to pay fares which are far from London. London’s transport rising steeply at a time when incomes are network has rightly benefited from stagnant. Ever higher season ticket prices investment – for example in Thameslink The main challenge in rail policy today is pose enormous dilemmas for families: and – but there is a pressing to enhance the network whilst bringing change job, move house, or cut the need to improve connections between down the cost to both the taxpayer and household budget to stay in work. our major cities away from London and passengers. A successful outcome to relieve capacity constraints where appears within the Government’s grasp, New rolling stock, better track and demand has grown more strongly than but it will require firm leadership from signalling, upgraded stations and expected. Commuter services into ministers as well as from those within the infrastructure all require significant both Manchester and Birmingham are rail industry to achieve this goal. financial investment. The previous Labour overcrowded – not just in London. Government’s spending plans for rail have Personally, my focus is primarily on the been largely maintained by the present New rolling stock to be introduced in passenger experience. Millions of people Government and there have been recent the South will lead to carriages being use the railway for commuting, business welcome announcements for the North, redeployed in the North and elsewhere, trips and leisure. Rail is a relatively safe for example on the electrification of lines with the potential to improve the travelling and environmentally friendly means of in the North West and the renewed work experience, particularly if the use of Pacer transporting people around the country. on the Ordsall Chord. trains can be quickly phased out. However we will only achieve these potential benefits if the redeployed stock is in good condition. 8 Passengers are increasingly sceptical in achieving this and I look forward and a vision for the future for rail. This of the argument that higher fares are to hearing the arguments when the sounds like a call for a strategy for rail. needed to pay for improvements to the Transport Committee comes to look at The Transport Committee has previously network. There is an increasing sense the issue. So far, the Government has commented on the absence of strategic that rail journeys are not value for money; emphasised the role Network Rail should thinking in the Department for Transport walk-on fares on inter-city routes are play in leading the industry, through the and it is incumbent on ministers to particularly difficult to justify. work of a new Rail Delivery Group. We engage with parliament and the public will be interested to see what difference about what sort of railway they want, and The previous Government commissioned this group makes to the running of the rail how it can be paid for. While I applaud Mr Sir Roy McNulty to examine costs in the industry and whether the different players Haythornthwaite’s willingness to grasp rail industry and his detailed report is now in such a fragmented industry can find a this nettle, he is asking questions which being studied the Coalition. Its response common purpose. I would expect the Secretary of State to is due later this autumn and will be pose. closely scrutinised by the Transport Select “it is time for spending Committee, though there does seem to on rail to be re-balanced, In September, Philip Hammond MP, the be a broad consensus that costs in the then Secretary of State, told the Transport UK rail industry are significantly higher with more emphasis on Committee that it was an “uncomfortable than in Europe and higher than they enhancements to the fact” that rail was “a rich man’s toy”. This should be. If this is the case, it should be is particularly the case for commuters possible to reduce rail subsidies, keep network in the North and people who pay walk-on fares who a grip on fares, and at least maintain and other areas far from cannot make use of heavily discounted current levels of investment in the London” advance tickets. The Government cannot network by driving out excess costs. sit back and accept this situation. Rail is Network Rail’s Chairman, Rick vital to people of all incomes and should There has already been extensive Haythornthwaite, recently talked of be accessible to all. It is time for the debate about whether or not Sir Roy’s launching a dialogue with the public Government to achieve this by setting out recommendations will be effective about the tough choices facing rail policy a strategy for rail which includes a clear commitment to lower fares. 9 RAIL IN THE NORTH: A VIEW FROM MERSEYSIDE

The Liverpool City Region economy has the number of passengers wishing to use opportunity to provide extra capacity experienced a 9% rise in employment, it and already operates at well above its and introduce units capable of operation 62% rise in total economic value, and theoretical capacity during peak hours and on both the third rail and overhead a 21% rise in business density over the on Saturdays. Major modernisation works electrification systems, opening the door to past 10 years. Substantial investment is will take place over the next two years at network extensions and through services being made by both the private and public all the underground stations, but extra beyond the present electric terminus. sectors, including the £1billion investment investment to grow passenger capacity is by Grosvenor in Liverpool One that has vital as part of our ongoing plans. The InterCity West Coast franchise, moved Liverpool from 17th to 5th in the operated by , expires in 2012. league table of retail cities. Merseytravel As well as investing in our existing station All 4 bidders have shown interest in has a long term vision to develop a high network, we also hold several plans for increasing the Liverpool – London service quality rail network which meets the possible extensions of the Merseyrail to half-hourly, with the second train calling needs of the people of Merseyside in a network. The most promising is to reopen at Milton Keynes. Separately, the case has secure, accessible, sustainable and cost the Halton Curve, a direct line between been made to extend London Midland’s effective way and supports the economic Runcorn and Frodsham, and introduce a London – Crewe fast service to Liverpool, regeneration of the Liverpool City Region. new hourly service between Liverpool Lime which would give a through service Street, Liverpool South Parkway, Runcorn between Liverpool, the Trent Valley towns As part of our ongoing commitment to and Chester, which could be extended and Northampton. delivering this, the Merseyrail Electrics to Wrexham with the necessary support Concession is a real success story, with from the Welsh Assembly Government. “extra investment to grow annual passenger journeys having risen by Looking to the longer term, other network passenger capacity is vital 14.7% between 2003/04 and 2010/11, extensions could include a new line from from 27.8 million in to 31.9 million. Kirkby to Headbolt Lane and as part of our ongoing and the possible reopening of the plans” This growth, well above DfT but not local Burscough Curves. expectations, highlights the importance The North West electrification scheme of continued investment in the Merseyrail In terms of rolling stock, the Merseyrail announced by this Government is a network. Liverpool Central, the busiest Electrics fleet is due for replacement positive move which gives crucial additional Merseyrail station, struggles to handle by 2018, providing us with an excellent capacity on the Merseyrail City Lines, as

10 MERSEYTRAVEL

well as the opportunity to introduce a half- Curve. It looks forward to the approval for being the first stage of a truly national high hourly electric service between Liverpool the full scheme, which will bring much speed rail network. and Preston and to reinstate long distance greater benefits to Merseyside, especially through services between Liverpool and a 15 minute service of express trains In particular we remain concerned that or . In addition to this, between Liverpool and Manchester Victoria under present plans Liverpool – London resignalling of Liverpool Lime Street station and half-hourly services of express trains high speed travel will take 28mins longer is due in 2016 and we believe this will give between Liverpool and Leeds and between than Manchester – London, a significant a key opportunity to increase capacity in Liverpool, Warrington, Manchester and incentive to businesses to locate in the station throat, with the construction Sheffield. Manchester rather than Liverpool. Overall of at least one extra platform to handle though there is strong support for HS2, the additional traffic generated by Merseytravel is also a strong supporter coupled with a determination that electrification and Northern Hub projects, of the Government’s proposals for Merseyside should extract the maximum meeting the aspirations of Merseytravel, HS2, coupled with a determination that economic benefit from a truly national high the train operators and franchise bidders. Merseyside should extract the maximum speed rail network. economic benefit from a truly national high Merseytravel also welcomes the approval speed rail network. However our support Neil Scales OBE for the first stage of the Northern Hub for the proposals is based on the project Chief Executive and Director General project, the construction of the Ordsall Merseytravel

11 New routes to growth in North East England

North East England was the birthplace Metro is the busiest urban light rail system and Blyth. This is a particular issue south of of modern railways as engineers like outside London with 40 million passengers, Newcastle, where the East Coast Mainline Stephenson and Hackworth met the covering a network of 60 stations focussed is limited to a single line in each direction challenge of supporting the growing coal around Newcastle and Sunderland city for much of the way to York. industry, and finding new ways to get centres and including three of the 20 minerals from the mines to market. busiest railway stations of any kind outside “while the ITA supports the the London commuter area. principle of new high speed The importance of good rail infrastructure to underpin economic growth is just as Yet whilst Metro is the core of the region’s lines and a Y-shaped route important today – and can provide further local passenger rail network, it is not map, current proposals benefits in the region by taking freight and the only part of it. Metro shares the line passenger traffic away from congestion between Newcastle and Sunderland for high speed provision hotspots across the Tyne and Wear river station, recently refurbished in an as far as Leeds offer very crossings and on the A1 and A1(M) in awardwinning £7 million Nexus project, with Gateshead and further south. Northern Rail regional services as well as limited benefit to the North with openaccess operator Grand Central’s East of England, compared The Tyne and Wear Integrated Transport intercity trains to London. Authority is at the heart of work in the to improvements to the region to maintain and enhance local There are also important local and regional existing direct route to rail services, in partnership with Network passenger services between Newcastle and Rail, the business community and local on the Tyne Valley Line, between London on the East Coast authorities across the North East. Newcastle and Morpeth on the East Coast Mainline” Mainline, and between Newcastle and It is also overseeing the £385 million the Tees Valley both via Sunderland and As part of the ongoing development of modernisation of the Tyne and Wear Metro Darlington to the south. the rail infrastrucutre in our region, the by Nexus, the Tyne and Wear Passenger Integrated Transport Authority continues to Transport Executive, which owns and Capacity is a growing issue as these routes promote the restoration of the Leamside manages the system. vie for space with national and inter- line from Gateshead to Tursdale, County regional passenger services as well as with Durham, which when linked to further growing freight traffic from the ports of Tyne diversionary routes in County Durham and 12 NEXUS

North Yorkshire would significantly relieve busy with frequent Metro and passenger infrastructure dating back to Stephenson’s East Coast Mainline capacity as far south services through Sunderland. The Leamside era comprehensively renewed, the first of as Northallerton. line would provide local economic benefits 90 Metrocars to be refurbished re-enter and important extra capacity to the national service, and rebuilding and refurbishment The case for re-opening the Leamside network. of four stations well advanced, with a Line, last used in 1991, is strengthened Aside from the case for re-opening the further two at Haymarket (Newcastle city by its potential to provide both local and Leamside Line, across the north of the centre) and Sunderland already complete. national rail solutions. It could provide a Tyne we believe that there is potential to new local commuter rail or Metro route for exploit in future the existing freight route A parallel project to replace all ticket Washington and Durham, with Park and between Ashington, Blyth and Newcastle by machines and introduce smart ticketing Ride sites on the A1(M) and reduce regional improving capacity through resignalling the through the Pop Card brand is also rail journey times between Newcastle and existing route and extending the passenger progressing well, with the first new models the Tees Valley to less than an hour. service from Newcastle to Morpeth on into being rolled out to stations. More than Bedlington. 50,000 Pop Cards have already been As a local freight route it would link the issued to the under 16 market. Nissan car plant in Washington, the most The future also holds the possibility of High productive in Europe, to the company’s Speed 2, and while the ITA supports the Nexus and the ITA is beginning to plan distribution hub at Port of Tyne and principle of new high speed lines and a ahead for the third phase of Metro destinations across Europe, relieving Y-shaped route map, current proposals for modernisation, a decade away. This will congestion on the A19 Tyne Tunnel high speed provision as far as Leeds offer include the replacement of the by then 40 approaches. Not only this, as part of the very limited benefit to the North East of year old train fleet with new rolling stock, national network it is well placed to handle England, compared to improvements to the meeting higher accessibility standards growing traffic from Port of Tyne as well as existing direct route to London on the East and providing, in conjunction with mode acting as a freight and passenger relief Coast Mainline. advanced signalling technology, sufficient route to the East Coast Mainline. capacity for the decades ahead. In line with our continued commitment to Network Rail has already invested to developing rail infrastruture in the North improve rail routes out of the Port by East, Phase 2 of the Metro Modernisation Bernard Garner reinstating the Boldon Chord onto the Programme began in April 2010. The Director General Durham Coast line, but this route is itself programme has already seen 12km of NEXUS 13 Northern Hub and High Speed Rail - Crucial to the North West Economy

The North West Rail Campaign (NWRC) problems of capacity and connectivity. to release further network capacity and is a partnership of organisations The North West’s economy is the second improving connectivity on the North West representing the private and public sector. largest outside of the South East and rail network. The overarching aim of the campaign is reliant on rail connectivity and capacity to to boost economic growth in the North ensure further growth in the future. With Early investment in the Northern Hub West, in line with the Government’s first the West Coast Mainline approaching is crucial to address existing capacity stated priority of rebalancing the economy peak capacity in the next 10 - 15 years blockages, and the Government outside of the South East. In transport and connectivity / capacity constraints in has already made the first step in terms, this means investment in rail the North West’s rail network, certain rail recognising this by announcing an projects that will connect people with investments must be made if we are to £85 million investment in the Ordsall jobs, cities with each other and increase realise the future economic potential of Chord, linking Manchester Victoria with the productivity of the labour market the region. The first is the Northern Hub, Manchester Piccadilly. The new chord in the North West, through solving the which if fully funded will have the ability will free up capacity at Piccadilly from

14 North West Rail Campaign (NWRC) the Transpennine route and allow better -30 years for yet more rail capacity. The and increase this modal shift, creating a connections with Leeds and Liverpool. West Coast Mainline upgrade was only more sustainable transport system. Whilst this is a very welcome investment recently completed and is already due there are a number of further investments to reach peak capacity in the next 10-15 HS2 meets the Government’s first priority- to be made and they all need to be years. Such saturation will inevitably to rebalance the economy outside of complete in order to successfully deliver have negative economic impacts for the South East. As the largest economy what must be the most important the North West as time progresses. It outside of London, the North West is well investment in rail this century: HS2. is also generally accepted that existing placed to address this challenge. Linking road capacity cannot meet the forecast businesses in the North West with other “It is estimated that a increase in demand and other solutions, markets in both the inclduing on the rail network, must be and Europe will provide a significant significant increase in found. and sustained benefit to the regional rail capacity across the economy, whilst freeing up space on the Increasing rail capacity in the North existing network will also create capacity North West, through HS2, West has real benefits for the economy, for local and freight services. could see up to 10,000 moving freight more quickly and jobs created across the improving journey times for passengers. Business leaders have been united and It is estimated that a significant increase vocal in supporting HS2, as the benefits North West, increasing in rail capacity across the North West, are huge and long term. It is important productivity and economic through HS2, could see up to 10,000 jobs that the support seen already is built created across the North West, increasing upon so that this unique opportunity is outputs by almost £1 billion productivity and economic outputs by not lost and the North West can address per year” almost £1 billion per year. the productivity gap that will help this country reach its full economic potential. The case for high speed rail is primarily The advent of the Pendolino service driven by the huge increase in passenger from Manchester to London has also Susan Williams demand seen over the past 10 - 15 years encouraged modal shift from air to rail for Campaign Director and the projected need over the next 20 the business traveller. HS2 will continue NWRC

15 FACING UP TO KEY CHALLENGES

Rail services across the North of England South East over the same period. During face a number of key challenges in the this period the only new trains to be put coming few years. into service in the North have been entirely funded locally. The first of these is positive: How to respond to its recent success in attracting rail Whilst significant improvements have been passenger growth. Rail growth has been delivered such as at Sheffield, Barnsley and strong in recent years; nationally, the number Doncaster Stations, and work to rebuild of passenger kilometres travelled by rail has Rotherham Central Station nears completion, grown by around 45% in the last 10 years. there are still a number of priorities which This national trend has also been reflected SYPTE is trying to tackle as rail services are in South Yorkshire, where we have seen a increasingly fundamental to economic growth growth in passenger numbers of around 20%. within South Yorkshire. It links people to jobs and opportunities as well as providing a wider The second key challenge for rail in the employment pool and improved access for North is the growing problem of significant investors and employers. overcrowding on peak hour trains. Even in a recession, the Northern franchise is still To address these three fundamental reporting passenger growth of 8% within challenges, we believe the following are the last year, and PTEs such as SYPTE are essential: acutely aware of unmet demand for increased capacity on many routes. 1 Increasing the funding for railways in the North. Currently there is a massive The third key challenge, particularly in South imbalance in government funding on Yorkshire, is the decrepit state of our existing transport, with the gap in public spending on rolling stock. For example, in 2007, around a transport between London and the regions third of the rolling stock in northern PTE areas growing wider in recent years. We must strive was 20 years old or more, whilst the Northern to work innovatively to reduce this imbalance franchise has received no new carriages in over time and look for more innovative ways the last five years, compared to 580 in the to raise funding, for example by taking the

16 SYPTE

revenue risk on rail fares, or by charging more offer, on trains and on stations, more processes so that unit costs are kept under to fund local investment. Put simply, we want responsive to local needs, but making control. We must also be clear on the main funding to invest locally in new rolling stock, prudent savings which are then retained investments we want for the rail network to help address the challenge of decrepit locally; in the North. Across the North there is trains. • ensuring that priority investments can agreement in the importance of the Northern be made to those projects ithat can most Hub, which will free up capacity for more “PTEs such as SYPTE are facilitate stronger economic growth in frequent and regular services to and from acutely aware of unmet South Yorkshire. Sheffield. Within South Yorkshire we are undertaking work to test and provide sound demand for increased 3 Continuing to lobby for high speed rail evidence that the following are also critical to as part of a coherent national strategy for the our economic growth: capacity on many routes” long distance rail network, though support for HS2 should be pursued alongside upgrades • Performance and capacity improvements 2 The second essential for SYPTE is to to the existing network. Critical in this regard at Sheffield station and its approaches; take up the Government’s stated intention are concurrent journey time and frequency • Performance and capacity improvements to devolve franchise management to local improvements to the Midland Mainline and at Doncaster station approaches; bodies. While there is a great deal to work East Coast Mainline. • Increased capacity on the Sheffield through before a final decision can be taken, to Leeds via Barnsley and Leeds via the prospect of being able to control our own 4 Lower cost alternatives to heavy rail are Rotherham lines, as well as routes destiny through specifying and managing also important. The Department for Transport between Sheffield and Doncaster; northern trains would enable PTEs to do is shortly to make an announcement on the • Journey time improvements to Leeds, some fantastic things, including: funding for new tram-train vehicles proposed Nottingham and Manchester. for the Sheffield-Rotherham line. If successful • using rail revenue to drive investment to we believe tram-train could play a key role In these challenging economic times it is fund new rolling stock; in unlocking capacity in South Yorkshire and imperative that we plan now to put these • integrating rail with other modes – elsewhere. badlyneeded investments in place to meet delivering value for money integrated the eventual economic recovery. ticketing, as well as connecting buses 5 Finally we return to investment to trains and trams and providing better again, but this time in the form of rail David Brown through journeys; infrastructure. We need to support Network Director General • enabling a more refined customer Rail in their efforts to take costs out of their SYPTE 17 IMPROVED RAIL CAPACITY AND FASTER, MORE EFFICIENT RAIL SERVICES

Since the Northern franchise was last the building of the Ordsall Chord, is also let, on a no-growth basis, rail patronage encouraging. in has increased by 35%. That alone is a solid justification But the fact remains that we will need for why the All Party Parliamentary Rail in to see more investment in the North’s the North Group is absolutely necessary. rail network if the region is to reach its Alongside this, it’s clear that the demand full economic potential as a centre of for rail services in the North is strongly commerce and industry. The Ordsall Chord linked with the successful growth of the alone, for instance, will not be enough northern economy, and that improving to address the current shortcomings and expanding the rail network must be in rail capacity in and around Greater an investment priority if the region is to Manchester. continue to prosper. It is absolutely essential that we see a We have already seen some welcome commitment to the remainder of the central government investment in heavy Northern Hub proposals, which will benefit rail here in the North. Electrification of not just Greater Manchester, or even just lines between Liverpool, Manchester and the North West, but the North of England Preston, due to be complete by 2016, is a as a whole. Major rail infrastructure positive step towards reducing the cost of projects like the Northern Hub not only our railways – both rolling stock and track boost economic growth by improving maintenance are considerably cheaper on connectivity and capacity for business, electrified routes than they are on routes employment, tourism and leisure, but the using diesel trains - and improving the construction itself also brings new jobs to speed and efficiency of services on those the region. routes. It should also have a knock-on effect in terms of available rolling stock. Greater Manchester’s two key rail The Government’s commitment to a key franchises, currently operated by Northern stage in the Northern Hub proposals, and First TransPennine, are due for renewal in 2015, and the growth we have 18 TRANSPORT FOR GREATER MANCHESTER seen in recent years is a clear indication a strong role for TfGM, the northern PTEs that refranchising will need to take and the All Party Parliamentary Group in both recent and future growth fully into championing the region’s needs during account. the refranchising process. Put simply, improved rail capacity and faster, more Moreover, the necessary extra capacity efficient rail services between major urban must be provided at a lower overall centres in the North of England will play a cost. Less reliance on expensive diesel major role in connecting businesses with trains, increased speeds to allow for more people, and businesses with each other. journeys per train, and more efficient ways of managing infrastructure and timetabling Many of the primary commuter services on would all boost capacity on the railways of Greater Manchester’s railways are already the North at a reduced cost. severely overcrowded at peak times, and without more investment in rolling stock, “we will need to see more electrification and improved network investment in the North’s capacity to cope with more trains, there is a risk that inadequate rail services will rail network if the region is impede the region’s economic growth and to reach its full economic stall the development of the North as a centre for business and innovation. potential as a centre of commerce and industry” The formation of the All Party Parliamentary Group, which is looking at The people who are perhaps bestplaced to these issues and advocating strongly for understand the needs of rail passengers rail investment where it is most needed, is and businesses in the North are those a positive step forward for the North’s rail who have a detailed local knowledge of network and its continuing growth. the network and the particular issues Stephen Clark which most affect it, so there should be Rail Programme Director Transport for Greater Manchester 19 COST REDUCTIONS, LOCAL DEVOLUTION AND INNOVATION

In common with other urban rail networks in system of rail franchising has not served they’re designed to stop development rather the metropolitan areas, the West Yorkshire Northern cities well. Two ‘no growth’ than encourage it. Getting costs down is rail network is a huge success story. Over franchises and a centrally controlled key and city region networks will have to the last decade, peak-time rail journeys to transport system means that currently, play their part in this. This, coupled with and from Leeds have increased by 50%. The local needs are not being fully met. That’s devolution, not just of franchises but also problem in Leeds City Region, as elsewhere, why Metro and other PTEs are enthusiastic the relationship with Network Rail, will allow is that investment in infrastructure and train about proposals for further devolution and decisions and trade-offs to be made much capacity has not kept pace. Metro is clear are working hard to develop a proposition more effectively. that overcrowding is now a major threat to that works locally and across the North. If future economic growth in our region. local responsiveness can be successfully As an example, in the 1980s and 1990s combined with a financial deal that works for Metro opened more than 20 new stations The increase in demand has certainly been PTEs, there’s a substantial prize of greater with basic structures often costing just linked to recent economic growth, but even economic growth to be had. In discussions a few hundred thousand pounds. These in the current financial climate passenger with local businesses and the LEP Board, were generally constructed on marginal numbers continue to rise. There is clearly transport is consistently top of the priority cost assumptions for the industry, and something more fundamental at play in list. We need the framework and flexibility to informal ‘trade-offs’ against performance the city regions, associated with changing be able to respond to business needs. risks. Investment in stations and service lifestyles, growing road congestion and enhancements drove an overall doubling greater environmental awareness, all of “Metro is clear that of passenger numbers. Unfortunately the which lead to our current rail renaissance. overcrowding is now a major current contractual culture doesn’t allow this approach, with costs and risks added This growth in passenger numbers has been threat to future economic at several stages and multiplied together. stimulated by the investment that Metro and growth in our region” This means that many smaller-scale rail its partners have made in the rail network infrastructure enhancements are simply over the last 30 years, including opening new As McNulty rightly pointed out the cost priced out of the market. We need to get stations, routes and services and completing structure of the rail industry is a barrier to back to a simpler way of doing business with the electrification of the fantastically investment and must be tackled in order an agreed set of local priorities to which successful Airedale and Wharfedale route. to make investment affordable. Like many everyone is committed. Investment here has contributed to a 70% others, I’ve experienced personally the market share for some peak journeys. frustrations of working with the industry Work commissioned by Metro shows that Despite this level of success, the current where processes sometimes feel as though some of the biggest productivity gains can 20 METRO

be made by reducing journey times and Bradford-Halifax-Manchester and the Leeds increasing frequencies on the main urban - Harrogate lines. A programme aligned with corridors. That’s why the inclusion of the the phased introduction of new rolling stock, Northern Hub scheme in the Initial Industry could allow manufacturers and funders to Plan is good news – now we need to work plan with more certainty and drive costs together to ensure it is funded. The inclusion down. of journey time improvements between Leeds and Sheffield is also welcome and It’s not just electrification which can deliver long overdue. Electrification features strongly multiple outcomes. Innovations such in the Plan with the trans-Pennine route an as tram-train could deliver McNultystyle obvious front-runner, building on Northern operating cost savings, capacity and Hub. frequency boosts, together with a lower-cost way of linking to growth areas not currently This single scheme would deliver many on the rail network. economic benefits for the Leeds City Region. Aside from the obvious journey time Leeds is the largest city region in Europe improvements and uplift in quality from without any form of rapid transit network. electrification, the provision of new rolling A progressive conversion of some routes stock would provide a capacity boost and to tram-train, coupled with the proposed allow a cascade of the existing diesel trains trolleybus system, would provide a cost to other inter-urban routes. Adding Leeds- effective way of delivering rapid transit to Sheffield electrification to plans for the support key growth areas. Midland Main Line would be a major boost. Despite the obvious challenges, the long run I’d argue that we need to go further than outlook for rail is very good if the building the Initial Industry Plan and develop a much blocks of cost reductions, local devolution more ambitious blueprint for electrification and innovation can be harnessed effectively. of regional networks – a properly planned and managed programme to electrify the David Hoggarth majority of routes. Other City Region priorities Director – Development for electrification would be the Leeds- Metro 21 The All Party Parliamentary Rail in the North Group is kindly supported by

For further information please contact the Group Secretariat Tom Denney  email: [email protected]  tel: 020 7592 9592