Local Sustainable Transport Fund - Application Form Guidance on the Application Process is available at: www.dft.gov.uk/pgr/regional/ Bids for both small projects and initial proposals for large projects should be no more than 20 pages long. Applicant Information Local transport authority name(s)*: Tees Valley Unlimited – Stockton-on-Tees Borough Council as Accountable Body on behalf of the transport authorities of Hartlepool, Middlesbrough and Redcar & Cleveland *(If the bid is a joint proposal, please enter the names of all participating local transport authorities and specify the co-ordinating authority) Senior Responsible Owner name and position: Steve Payne, Integrated Transport Manager Bid Manager name and position: Steve Payne, Integrated Transport Manager Contact telephone number: 01642 524464 Email address: [email protected] Postal address: Tees Valley Unlimited Cavendish House Teesdale Business Park Stockton-on-Tees TS17 6QY Website address for published bid: www.teesvalleyunlimited.gov.uk SECTION A - Project description and funding profile A1. Project name: Improving Access to the Tees Valley Rail Network A2. Headline description: This project draws on specific evidence to promote measures designed to improve access to the rail network for current and future users, by addressing end-to-end journey needs and filling a gap in current service provision. The measures include improved passenger facilities at stations, enhanced information on the whole journey and a new rail station at one of the major employment and trip generation sites. The measures are part of a long term plan to use the existing rail network assets in a more cost effective and efficient way to support the economic regeneration of the area and reduce carbon emissions. 1 A3. Geographical area: The project covers the local transport authority areas of Darlington, Hartlepool, Middlesbrough, Redcar & Cleveland and Stockton-on-Tees within the Tees Valley, as well as relevant travel to work areas in Durham and North Yorkshire. The main passenger rail network in the area is shown in Figure 1 below. Figure 1 – Tees Valley Rail Network A4. Type of bid (please tick relevant box): Small project bids Tranche 1 bid Expression of interest for Tranche 2 (please complete sections A and B only) Tranche 2 bid A5. Total package cost (£m): 7.811 A6. Total DfT funding contribution sought (£m): 4.458 A7. Spend profile: £ 2011-12 2012-13 2013-14 2014-15 Total Revenue funding sought 0 552,830 215,842 40,000 808,672 Capital funding sought 0 629,375 2,855,935 163,776 3,649,086 Local contribution 575,329 2,098,921 678,750 0 3,353,000 Total 575,329 3,281,126 3,750,527 203,776 7,810,758 2 A8. Local contribution In addition to the funding sought through this bid, the following are confirmed local contributions (which amount to 43% of the total package cost): a). £1.17 million from Network Rail to upgrade the communications equipment at stations between Darlington and Saltburn – funding confirmed for 2012/13 and 2013/14; b). £885,300 from the Tees Valley Metro project towards a new ticket office, waiting room and shelter, customer information screens and improved ramp access at Eaglescliffe station – funding confirmed for 2011/12 and 2012/13, and implementation underway; c). £153,700 from the Tees Valley Metro project towards station facility improvements at Saltburn – funding confirmed for 2011/12, and implementation to start in March 2012; d). £500,000 from the Tees Valley Metro project towards additional enhancements at Redcar Central station – funding confirmed for 2012/13 and 2013/14; e). £400,000 from Network Rail to refurbish the existing footbridge at Redcar Central station – funding confirmed for 2012/13 and 2013/14; f). £129,600 from the Tees Valley Bus Network Improvements project to upgrade the Connect Tees Valley website – implementation complete; g). £115,000 from Middlesbrough Council for a new footway/cycleway to the planned James Cook University Hospital station – implementation complete. Northern Rail has confirmed that it would absorb additional operating costs for stopping trains at the proposed new station as part of the increased fare box revenue for the remainder of the franchise (up to May 2014), should the new station be opened before this date (see E2). Northern Rail has also agreed to provide in-kind support for costs associated with the management and delivery of the project through use of existing staff, as has the South Tees Hospital NHS Foundation Trust. All other direct staff costs (from Network Rail and TVU) are included within the bid, although TVU will also be continuing to provide in-kind resources to assist delivery. A9. Partnership bodies The project is being led by Tees Valley Unlimited , the Local Enterprise Partnership (LEP) for the Tees Valley. Stockton-on-Tees Borough Council acts as Accountable Body for TVU and, as such, has agreed to act as the lead authority for financial arrangements The other local transport authorities of Hartlepool, Middlesbrough and Redcar & Cleveland have been involved in the design of the package. In addition, this bid has been developed to be complementary to the successful LSTF Tranche 1 bids from Darlington and Redcar & Cleveland , as well as Durham County Council , and the Tranche 2 bids from Middlesbrough and North Yorkshire County Council . Similarly, both Network Rail and Northern Rail have been involved with the design of the package of works. Both have taken a lead role in the design of the new station planned at The James Cook University Hospital, as has the South Tees Hospital NHS Foundation Trust . Draft heads of terms have been drawn up to allow access over the Trust’s land for the building and maintenance of the new station. Middlesbrough Council will be progressing with a planning application for the new station in Spring 2012. Given that the rail network also serves Durham and North Yorkshire, and that there is particular demand for health services from both of these areas, TVU has kept both authorities fully informed of the progress of the design work and the content of this bid. In particular, support for the project has been provided by Scarborough Borough Council , bearing in mind the improved accessibility to healthcare facilities that will result and the links to the Whitby and Esk Valley Tourism Economy Package within North Yorkshire County Council’s LSTF Tranche 2 bid. Finally, the scoping of work on stations along the Esk Valley line, together with the evidence supporting a new station at James Cook University Hospital, has been undertaken in conjunction 3 with the Esk Valley Railway Development Company (EVRDC), the Community Rail Partnership for the line. The involvement of each within the current (and proposed) governance structure is an indication of their willingness to help deliver the project, and each partner has approved this submission, either through these existing arrangements, or through a separate discussion. SECTION B – The local challenge B1. The local context The Tees Valley faces significant economic challenges, due in part to its reliance on the public sector. In 2008, 25% of Tees Valley employment was in the public sector, rising to 32.7% in Middlesbrough (the second highest in England). In addition, at least 10% of private sector jobs formed part of the public sector supply chain. It is estimated that some 1,300 jobs have been lost in the public sector in the area since the start of the financial crisis in 2008 with a further 2,800 predicted to be lost up until 2014. However, the area is home to the largest integrated heavy industrial area in the UK at Wilton and has a significant export economy, focused around the fourth largest port in the country, Teesport. Large investments have been made by Wal Mart and Tesco in recent years at the port to confirm the advantages of a logistics base in this area for onward distribution of goods to the North of England and Scotland. Work is due to start later in 2012 on an upgrade of the rail network in the area to accommodate larger containers by rail. The LEP’s forward strategy is to build on these assets, and to support those economic sectors with the greatest potential for output and employment growth. The Tees Valley Enterprise Zone shown Figure 2 below identifies those sites that are considered critical to the area’s future growth. Figure 2 – Tees Valley Local Enterprise Zone Alongside these manufacturing and logistics assets, the LEP will support existing major employers across the Tees Valley, such as The James Cook University Hospital in Middlesbrough. The hospital offers a wide range of district general hospital services for 274,000 people, and specialist 4 (tertiary) services including neurosurgery, renal medicine, spinal injuries, major trauma, vascular surgery and cancer services to the Tees Valley, South Durham and North Yorkshire, with an approximate catchment area of 1.5 million people. It is one of the largest hospitals of its type in Europe, with 1,100 beds, and work is underway on a £35 million cancer unit redevelopment at the north end of the site. In addition to the 6,500 staff already on site, approximately 1,500 further staff were transferred to the site in April 2011, as part of the ongoing changes in the health service. The LEP also recognises that the ability to attract and retain a skilled and increasingly mobile workforce is vital. Actions set out to achieve this include the provision of a range of housing that caters for all needs and aspirations and the requirement to continue to improve both external and internal connectivity of the Tees Valley to develop a reliable and integrated network. Enhanced connectivity is important to ensure that residents and visitors can access employment, education, healthcare, retail, leisure and other key opportunities, not just within each community or authority area but across the Tees Valley as a whole.