Partnership railway’s transformation in numbers Dataset on rail industry finances, performance and investment since 1997-98
December 2017 The economic benefits of rail
The railway is vital to the economic health of the country and is a significant industrial sector in its own right: • Each year the rail industry and its supply chain contributes up to £10.4bn in GVA • Britain’s railway provides benefits to the UK economy of up to £31bn a year, including: benefits to customers as well as companies using freight; reduction of congestion on roads; and wider economic impacts through closer links between businesses and communities. • Investment from both public and private sectors through the partnership railway will secure almost £85bn of additional economic benefits to the country • The railway and its supply chain employ 240,000 people with a further 100,000 job opportunities across the country anticipated by 2027 • The industry has a target to create 20,000 new apprenticeships by 2020, 10,000 of whom will be new recruits from more diverse backgrounds
Sources: Oxera, 2017, “How does rail contribute to the UK economy?” Oxera, 2017, “Investment in rail: the economic benefits”
Rail Delivery Group, 2017, “In Partnership for Britain’s Prosperity” 3 Rail’s transformation in numbers
Highlights from the RDG dataset: • Sustained rise in passenger journeys and freight carried • Train companies making record contributions to government - industry income covers day-to-day costs and supports investment • Taxpayers paying smaller share of rail costs and customers a larger share – the result of policy of successive governments • Government support to the railway is at its lowest level since 2002-03 and private sector investment at its highest level since being measured • Safety, satisfaction, number of services and fleet size have improved significantly • Delay incidents down but more congested network means worse impact on customers • Government spending funds extra capital expenditure to boost capacity and improve services 4 Partnership railway - finances snapshot Analysis of Revenues and Costs
• The £10.5bn of revenue generated by the rail industry now more than covers the day- to-day running costs of the railway (£10.3bn)
Industry financials 2015-16 (£bn) 16
14 Day to Day Running 12 Costs Passenger income, 10.0 TOC operating 10 costs, 7.8
8 £bn Industry Generated 6 Income NR operating and maintenance expenditure, 2.5 4 Other income, 0.5
NR capital and Government 2 financing funding, 3.7 costs, 3.9
0 Income Costs
Note: Day-to-day running costs excludes renewals and enhancements costs 6 Source: ORR “GB rail industry financial information 2015-16” Government Support to the Rail Industry
• Train operating companies in 2016-17 paid central government a net total of £0.8bn, whereas in 2002-03 they received £1.4bn from central government in real terms. • Total Government support to the industry is at the lowest level since 2002-03. • Grant to Network Rail peaked in 2006-07 (£4.3bn), in 2015-16 this was £4.1bn
Government support to the rail industry since 2002-03 (real terms)
Net payments to/from TOCs PTE grants (for national rail services) 8 Grant to Network Rail 7 Total Gov't support Other elements of Gov't support
17 17 prices 6 - 5 4 3 2
£ £ billons 2016 at 1 0 -1
-2
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
Note: This data is presented from 2002-03 due to a change made to the allocation of funding for infrastructure from that year Note: ‘Other elements of Government support’ comprises central government expenditure on major projects, support to arms length bodies 7 including British Transport Police and Transport Focus, a grant to British Rail to finance its residual activities, and other adhoc rail projects. Source: ORR data portal Train Operating Company Operating Margins
• Operating margins as a proportion of revenue are lower than when franchising began
TOC operating margins 10%
8%
6% 4.9%5.2% 4.1%4.2%4.1%4.2% 3.7% 4% 3.6%3.5% 3.5% 3.1% 3.0% 3.0% 3.0% 2.9%2.9% 2.6% % % operatingmargins 2.4%2.3% 2%
0%
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2012-13 2013-14 2014-15 2015-16 1997-98 1998-99 1999-00 2000-01 2007-08 2008-09 2009-10 2010-11 2011-12
Note that ‘operating margin’ (gross of tax) is used as ‘profit margin’ (net of tax) is not available for the full time series. Source: Rail Industry Monitor, Statutory Accounts and ORR “GB rail industry financial information 2015-16” 8 Passenger Share of Rail Income
• Passenger share of total rail industry income has increased from 57% in 2010-11 to 70% in 2015-16, a slight fall from 2014-15 • In 2010-11, passengers contributed £6.6bn compared to £10.0bn in 2015-16. Over the same period the average price paid per journey in real terms reduced from £5.66 to £5.54 Passenger income as a share of rail industry income 75% 71% 70% 70% 68%
65% 62%
60% 58% 57%
55%
50%
45%
40% 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
Note: Rail industry income excludes DfT loans to Network Rail Source: ORR “GB rail industry financial information 2015-16” and previous releases 9 Partnership railway - delivering a vital and growing public service Journey Growth
• Passenger numbers have more than doubled since 1997-98, the first full year of rail franchising • Average annual journey growth has been 3.84%, compared to 0.5% in the 18yrs prior • Rail journeys per head of population have increased by 82%
Passenger journeys since 1950 2,000.0 Passenger Journey Growth 1,800.0 Period CAGR1 1,600.0 65 years to 2016-17 0.79% 1,400.0 1977-78 to 1996-97 0.53% 1,200.0 1997-98 to 2016-17 3.84% 1,000.0 1 Compound Annual Growth Rate
800.0 Passenger journeys (millons) 600.0 Rail journeys per head of population
400.0 Year Annual journeys per capita
200.0 1981-82 13.12
0.0 1997-98 14.93
2016-17 27.15
2015-16
2010-11
2005-06
2000-01
1995-96
1990-91
1985-86
1980-81
1975-76
1970-71
1965-66
1960-61
1955-56 1950-51
Source: ORR data portal
11 Rail Volume Growth vs European Peers
• Distance travelled by passengers per km of track has nearly doubled since 1997, out- performing growth seen from many of its European peers
Thousand Passenger km per km of track by European Peers Growth in Thousand (1997 vs 2014) passenger km per km of 6,000 track (1997 v 2014)
UK 94% 5,000
SE 73% 4,000 FR 57%
3,000 DE 26%
2,000 ES 14%
NL 8% 1,000
IT 3% 0
NL UK IT FR DE ES SE 0 0.5 1 Thousand Thousand Passenger Km perKm of track
1997 2014
Source: Eurostat database
12 Passenger Journeys vs GDP Growth
• Since 1997-98, journey growth has been more than double GDP growth
Rail journey and GDP growth 120% GDP Growth Journey Growth 105% 100%
80%
60% 56%
44% % % Movement 40%
20% 14%
0% 1977-78 - 1996-97 1997-98 - 2016-17
Source: ORR data portal and Cebr Economic Forecast
13 Modal Change – Shift to Rail
• Since 1997, National Rail has increased its modal share of all travel by 3.4%, while domestic air travel has remained broadly flat and road travel has fallen by 4.2% • Passenger km by road have increased by 22bn since 1997 to 707bn passenger km with National Rail increasing by 30bn to 65bn
Change in Transport modal share since 1997 4.0%
3.0%
2.0%
1.0%
0.0%
-1.0%
-2.0%
-3.0%
-4.0% Change modalin share (1997 = 0%)
-5.0%
1997 1999 2000 2002 2003 2006 2007 2009 2010 2012 2013 2015 1998 2001 2004 2005 2008 2011 2014
Air (Domestic) Road National Rail
Source: Department for Transport Statistics and ORR data portal 14 Growth in Rail – European Comparisons
• Growth in UK rail’s share of passenger transport has far outstripped other European countries with only Sweden seeing similar growth • Spain, France and the Netherlands have all seen around 1 percentage point increase in rail’s modal share since 2000 whereas UK rail’s share has increased by 3.4 percentage points European passenger transport modal share between 2000 and 2015 Train Bus Car
United Kingdom
Sweden
Spain
France
Netherlands
Germany
Italy
-3.0 -2.0 -1.0 0.0 1.0 2.0 3.0 4.0
Percentage point change, 2000 to 2015
Source: Eurostat database 15 Mode of Transport to Work
• National Rail as the chosen mode of transport to work has increased by 73% since 2002, compared to a 8% increase in car commuting, a 49% increase in other types of rail and an overall increase of 12%
180 Mode of transport to work
Car National rail 160 Other rail (underground, light railway systems and trams) Total travelling to work
140
120 Index (2002 Index(2002 = 100)
100
80 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Source: Department for Transport Statistics and ORR data portal. (N.B. Oldest available data is 2002)
16 Trips per person all modes vs rail
• Whereas trends across all modes for trips per person for all journey purposes have fallen by 13% since 2002, trips per person by rail has climbed by close to 60%
Trips Per Person Per Year All Modes (Excluding Short Walks) Trips per person by rail (NTS)
Commuting Business Leisure Commuting and business Leisure 110 190
105 170 100 150 95
90 130
85 Index (2002 = 100) Index (2002 = 100) 110 80 90 75
70 70 2002 2004 2006 2008 2010 2012 2014 2016 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Source: Department for Transport Statistics, National Travel Survey Source: Department for Transport Statistics, National Travel Survey
17 Journey Growth in London & South East
• Journey growth is not just due to increased demand from commuters - since 1997-98 total rail journeys in London and the South East have increased by more than rail commuting into Central London • Rail journeys have also increased faster than journeys on the London Underground
Growth in rail journeys versus growth in commuter numbers
Total rail commuters into Central London Total LSE rail journeys
220 Journey growth - Rail versus London Underground
98 200 - 1997-98 to 2016-17 Journey growth 180 London Underground 65.6% 160 London and South East rail 106.0% 140 Index 100= 1997 Source: ORR data portal, LUL Statutory Accounts
120
100
80
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16 2016-17
Source: ORR data portal, LUL Statutory Accounts 18 Rail Freight – Growth in Goods Carried
• Before 1997-98, rail freight was in steady decline (down 59% between 1953 and 1996-97) • It has since stabilised with growth in 13 of the 19 years since then • A sharp fall in coal moved (from 6.5 to 1.4bn tonne kilometres) almost single-handedly drove the decline between 2014-15 and 2016-17 • Domestic intermodal carried has increased by 93% since 1998-99 Freight carried Freight Carried by Commodity 40 Coal Metals Construction Oil and petroleum 35 International Domestic intermodal Other 25.0 30
20.0 25
20 15.0
15 Billiontonne kilometres 10.0
10 Bn Tonne Km
5 5.0
0
0.0
1953 1955 1961 1963 1969 1971 1973 1979 1981 1983 1957 1959 1965 1967 1975 1977 1985
1989-90 1991-92 1997-98 1999-00 2001-02 2007-08 2009-10 2015-16 1987-88 1993-94 1995-96 2003-04 2005-06 2011-12 2013-14
1982-83 1986-87 1987-88 1988-89 1989-90 1994-95 1995-96 1996-97 1997-98 2002-03 2003-04 2004-05 2005-06 2010-11 2011-12 2012-13 2013-14 1983-84 1984-85 1985-86 1990-91 1991-92 1992-93 1993-94 1998-99 1999-00 2000-01 2001-02 2006-07 2007-08 2008-09 2009-10 2014-15 2015-16 2016-17
Source: ORR data portal Source: ORR data portal 19 Freight Growth vs European Peers
• Of comparable European railways, UK freight mode share growth, at 3.0% since 1997- 98, is behind only Italy and Germany (which has a more favorable regulatory environment where lorries are not permitted on roads on Sundays) Rail freight modal share growth
6% 5.3% 4.3% 4%
3.0% 98 - 2.2% 2%
0%
Grwoth since 1997 -2%
-4% -3.3% -3.3% -4.1%
-6% 1998 to 2015 United Kingdom Germany Italy Netherlands Sweden Spain France
Source: Eurostat database
20 Employment in Rail
• The rail industry and its supply chain employ up to 240,000 people • The number of people employed by train companies has increased by 47% since 1997/98 Train Company Employees and UK Workers
Train Company Employees All UK Workers
50% 47% 45%
40%
35%
30%
25% 20% 20%
15%
10%
5%
0% 1997-98 - 2016-17
Source: ORR data portal and ONS 21 Sustainability – CO2 Emissions
• Already a relatively green mode of transport, CO2 emissions generated per kilometre by passenger operators have decreased by 25% since 2005-06.
Traction energy - CO2 emissions per km
g/CO2e per passenger km 65.0
60.0
55.0
50.0
e 2
45.0 g/CO 40.0
35.0
30.0
25.0
2005-06
2006-07
2007-08
2008-09
2009-10
2011-12
2012-13
2013-14
2014-15
2015-16 2016-17
Source: ORR data portal 22 Partnership railway - successful for customers Safety
• Safety has continued to improve. The UK continues to be amongst the safest railways in Europe for customers and workforce.
UK train accidents with passenger or workforce on-board fatalities All network Injuries and Fatalities Per Billion Passenger Miles since 1965-66 (2014)
Train accidents with passenger and workforce fatalities 10 year moving average 6
9
8 5
7 4 6
5 3 4
3
2 Fataltrainaccidents 2
1 1 0
Injuries and fatalitiesper billion passenger miles -
IT
NL
FR
SE ES
2015-16
2013-14
2011-12
2009-10
2007-08
2005-06
2003-04
2001-02
1999-00
1997-98
1995-96
1993-94
1991-92
1989-90
1987-88
1985-86
1983-84
1981-82
1979-80
1977-78
1975-76
1973-74
1971-72
1969-70
1967-68
1965-66
UK DE
Source: ORR data portal Source: Eurostat Note: Includes all recorded injuries and fatalities on the rail network including workforce and those at level crossings
24 Average Journey Price vs Average Earnings
• Average earnings (+1.7%) have grown faster in real terms than the average price paid per journey (-5.6%) since 1999-2000 • The average price paid per journey in real terms was £5.46 in 2016-17 • In contrast, the average price paid per journey on a Season ticket has fallen in real terms by 15.1% since 1999-2000 and has been relatively flat since 2003-04
Average price per journey vs average earnings in real terms
Average earnings 120 Average price paid per journey Average price paid per journey (season tickets) 115
110
105
100
95 Index (1999/00 100) =
90
85
80
1999-00 2000-01 2003-04 2004-05 2007-08 2008-09 2011-12 2012-13 2015-16 2016-17 2001-02 2002-03 2005-06 2006-07 2009-10 2010-11 2013-14 2014-15
Source: ORR data portal and Cebr Economic forecast Note 1999-00 is the first available year for Average Earnings within the Cebr Economic Forecast 25 Average Price Per Passenger Mile
• The average price paid per passenger mile has increased by 1.8% in real terms since 2010-11 • Prices paid for Anytime fares have increased over this period (by 2.9%), compared to -0.1%, 6.0% and 1.0% increases for Seasons, Off-Peak and Advance respectively as operators price tickets to encourage people to travel on cheaper Advance fares
Price paid per mile, 2016-17 prices
Anytime Off-Peak Advance Seasons Total
110
108
106
104
102
100
Index: 2010/11 100 = 98
96
94
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
Source: ORR data porta. Product level information only available from 2010-11 26 Average Journey Price vs Utility Prices
• Since 1998 average rail journey price (per km) has increased in real terms by 4.9%, whereas water prices increased by 14.9%, electricity prices are up 39.1% and gas prices up 84.6%
Source: ONS RPI component data, ORR data portal 27 Journeys and Revenue by Ticket Type
• Nearly half of all passenger revenue now comes from cheaper time restricted tickets (Off-Peak, Super Off-Peak and Advance), up from 39% ten years ago, whilst the proportion of journeys on discounted tickets has also increased.
Journeys on anytime travel and restricted times Revenue from anytime travel and restricted times
Anytime tickets Time restricted tickets Anytime tickets Time restricted tickets 100% 100%
90% 90% 31% 33% 80% 80% 39% 46% 70% 70%
60% 60%
50% 50%
40% 40% 69% 67% 30% 30% 61%
54% % % of total passenger revenue % % of total passenger journeys 20% 20%
10% 10%
0% 0% 2007-08 2016-17 2007-08 2016-17
Source: LENNON data Source: LENNON data
28 Customer Satisfaction
• Since surveys began in 1999 customer satisfaction has increased from 76% to 83% • The number of customers rating their journey as “satisfied” or “good” is now 1,437 million, up from 708m in 1999, an increase of 103%
Customers' Overall Satisfaction
% satisfied or good' % neither nor' % dissatisfied or poor'
6 6 6 6 6 5 6 6 1010 9 11 11 11 10 10 8 8 7 9 7 7 7 8 7 7 7 7 8 7 8 8 13 16 13 13 11 11 10 11 10 10 11 10 12 12 12 12 13 10 11 10 11 11 12 12 10 11 11 Annual-equivalent journeys in millions rated as 14 14 17 14 14 13 14 14 15 15 16 16 15 "Good" or "Satisfied" 1999-2000 2016-17 Difference
% Journeys (m) 708 1,437 730
Source: ORR data portal and National Rail Passenger Survey 85 80 80 81 81 80 83 81 83 83 84 84 84 83 82 83 82 81 80 83 80 8183 76 76 74 76 77 79
73 69 72 72 73 73 73
A02
S 17
A 16
S 16
A 15
S 15
A 14
S 14
A 13
S 13
A 12
S 12
A 11
S 11
A 10
S 10
A 09
S 09
A 08
S 08
A 07
S 07
A 06
S 06
A 05
S 05
A 04
S 04
A 03
S 03
S 02
A 01
S 01
A 00
S 00 A 99
Note: A – Autumn, S - Spring Source: Network Rail Passenger Survey (started in Autumn 1999) 29 Customer Satisfaction
• Whilst overall satisfaction has increased from 76% to 83%, satisfaction with value for money has increased from 41% to 47% and those satisfied with service punctuality has increased by 3 percentage points.
Customers' satisfaction with value for Customers' satisfaction with money punctuality/reliability
% satisfied or good' % neither nor' % dissatisfied or poor' % satisfied or good' % neither nor' % dissatisfied or poor'
15 14 35 32
11 8
% % 21 24
74 77
47 41
A 99 S 17 A 99 S 17
Note: A – Autumn, S - Spring Source: Network Rail Passenger Survey (started in Autumn 1999) 30 Customer Satisfaction vs European Peers 2013
• Customers in the UK score rail services higher on a number of measures than do those in France, Germany, Spain and the Netherlands • Overall, rail customers in the UK were more satisfied than those of any other major European railway
Customers' Satisfaction vs European Peers on Key Metrics
UK France Germany Spain Netherlands
100 90 79 77 76 80 73 73 71 70 72 70 67 70 64 61 60 57 56 55 53 52 48
% 50 43 40 40 30 20 10 0 Punctuality / reliability Train frequency Information provision - Cleanliness and good during the journey maintenance of stations
Source: EU Commission, 2013 (N.B. most recent survey) 31 Partnership railway - successful for taxpayers Running Costs vs Industry Generated Revenues
• In 1997-98, the railway ran at a £2bn a year loss in terms of its day-to-day costs, in 2015-16 it more than covered those costs
Running Costs vs Industry Generated Revenue
Industry-generated revenue Day-to-day industry running costs 12
10.5 10.3 10
8 7.3
£bn 6 5.3
4
2
0 1997-98 2015-16
Note: Day-to-day running costs excludes renewals and enhancements costs Source: ORR “GB rail industry financial information 2015-16” 33 TOC Payments Vs Government Funding
• Net payments from Train Operating Companies to government increased to £843 million in real terms, while government funding as a share of total rail industry income remained at 26% in 2015-16 TOC payments to Government Vs Government funding
TOC payments to Government (2016-17 prices) Government funding share of rail industry income 900 50% 834 843 800 45%
700 40% 34% 32% 32% 35% 600 29% 30% 26% 26% 500 454 25% 400 20% 300 15%
200 147 10%
100 59
37 5%
Government funding share of railincome TOC TOC payments to Government (£ millions) 0 0% 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
Note: As per ORR' s GB rail industry financial information 2015-16, government loans to NR are not included 34 Source: ORR data portal and ORR “GB rail industry financial information 2015-16” (plus previous releases) Passenger Train Unit Costs
• Since 2010-11, passenger train company costs per passenger mile have declined by 8.8% in real terms
TOC costs per passenger mile 27p 26p 26p 25p 25p 25p 25p 24p 23p 23p 23p 22p 21p 20p 19p
Cost Cost per passenger mile 18p 17p 16p
15p
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
Note: TOC costs cover staff costs, rolling stock costs and other costs (payments to Government are excluded) Source: ORR data portal 35 Infrastructure Costs per Train Mile
• Network Rail operating costs have fallen by 46% since 2003-04 • This reduction is primarily due to the introduction of new technology, innovation and in- sourcing some key activities NR operating costs per train mile, 2014-15 prices 12 £10.90 £10.19 10 £9.02 £8.55 £8.08 £7.73 £7.67 8 £6.91 £6.17 £6.06 £6.09 £5.87 Cost Cost (£) 6
4
2
0
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14 2014-15
Source: Network Rail 36 Freight Company Efficiency
• Freight efficiency has improved as longer and heavier freight trains are now in operation. The number of trains has fallen by 44% since 2002-03 but tonnes per freight train have increased by 63%
Productivity of freight services
450
400
350
300
250
200
150 Tonnes Tonnes per freight train
100
50
0
2004-05 2005-06 2008-09 2009-10 2010-11 2012-13 2013-14 2014-15 2016-17 2002-03 2003-04 2006-07 2007-08 2011-12 2015-16
Source: ORR data portal 37 Partnership railway – connecting communities More Services
• Investment means train companies are running 28% more services since 1997-98 • Frequency of services on many key long distance routes has doubled
1997-98 2016-17 % change Number of planned 5.69 7.30 28% services per year (m) Source: Network Rail
Trains per day Off-peak hourly frequency
Year 1994 2016 % Change 1994 2016 % Change Manchester to London 17 47 176% 1 3 200% Leeds to Edinburgh 2 15 650% 0 1 n/a London to Norwich 19 36 89% 1 2 100% Leeds to London (1) 17 32 88% 1 2 100% London to Sheffield 15 31 107% 1 2 100% Bristol to London (2) 23 33 43% 1 2 100% Glasgow Queen Street to Edinburgh (3) 37 62 68% 2 4 100% Leeds to Huddersfield to Manchester (4) 48 81 69% 3 5 67% Cardiff to London 22 30 36% 1 2 100%
Source: Network Rail (1) Virgin East Coast only; excludes East Midlands Trains (2) Bristol Temple Meads only ; excludes Bristol Parkway (3) Express services via Falkirk only; excludes other routes (4) Includes services to Manchester Victoria 39 Intensity of Network Usage
• 1.4 million more trains arrived as planned in 2016-17 compared to 1997-98, nearly 3,800 extra trains per day • Until 2011-12 extra services were accommodated on the railway with increasing punctuality
Planned Train Services and Train Services Arriving On-Time 8.0 Total Planned Trains Services Number of train services arriving as planned
7.5
Hatfield (Oct 2000) 7.0
6.5
6.0
5.5 Milliontrain services 5.0
4.5
4.0
1997/98
1998/99
1999/00
2000/01
2001/02
2002/03
2003/04
2004/05
2005/06
2006/07
2007/08
2008/09
2009/10
2010/11
2011/12
2012/13
2013/14
2014/15
2015/16 2016/17
Source: Network Rail and ORR data portal 40 Punctuality of Passenger Services
• In 2016-17, 88.7% of train services (equivalent to 1.5bn customers) arrived as planned. This equates to 776 million more punctual journeys than in 1997-98 • Punctuality on long distance and regional & Scottish services is static or improving slightly compared to 2012-13 but in London & South East, where the railway is most congested, it is declining
Public Performance Measure by Operating Sector
Long Distance London & South East Regional & Scot All Franchised Operators
95%
90%
85%
80%
75%
70%
65% Moving Annual Average (MAA) %
60%
1998-99 2000-01 2001-02 2003-04 2005-06 2006-07 2008-09 2010-11 2012-13 2013-14 2015-16 1997-98 1999-00 2002-03 2004-05 2007-08 2009-10 2011-12 2014-15 2016-17
Source: ORR data portal Note: “as planned” relates to the PPM measure defined as arriving at the final destination within five minutes of the planned timetable for London and South East, 41 Regional and Scotland operators, or within ten minutes for Long Distance operators). Number of Incidents and Delay Minutes
• Individual incidents of delay fell by 3% between 2013-14 and 2016-17 • However, the impact of each delay has grown as the railway is more congested
Number of Incidents and Delay Minutes per Incident
Incidents Delay Minutes per Incident 36.0 180
35.0 150 Delays mins per incident per mins Delays
34.0 120
33.0 90
32.0 60
31.0 30 Number of delay incidents (thousands)
30.0 0
2015-16 2016-17 2013-14 2014-15
Source: Network Rail 42 Freight Delays
• Delay minutes suffered by freight companies have reduced by 41.0% since 2004-05. Similarly, delay caused by freight companies has reduced by 43.3% • The rail freight industry has undertaken many performance initiatives in recent years. Fewer and longer freight trains have also resulted in fewer delays to other services.
Delay minutes - Freight Operators 120.0 Index - Delay Minutes Caused Index - Delay Minutes Suffered
100.0
80.0
60.0
40.0 Delay mins (04/05 100) =
20.0
0.0
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
Source: Network Rail 43 Partnership railway – investing to improve Rolling Stock – Passenger Services
• Compared to 1996-97 there are 2,500 more carriages on the railway, a 25% increase • Britain’s train fleet is increasing faster than at any time in recent decades. Rail companies have committed to running 5,700 new carriages by 2021 and in 2016 1,850 new carriages were ordered. Around half of these new vehicles will be built in Britain Change in total fleet size 1996-97 2015-16 Growth Total vehicles in passenger use 10,400 12,968 25%
Orders placed for mainline passenger rolling stock (i.e. excludes LUL/light rail) 2,000
1,800
1,600
1,400
1,200
1,000
800
600 Orders Orders Placed 400
200
0
1993 1994 1995 1996 1997 1998 1999 2005 2006 2007 2008 2009 2010 2011 1988 1989 1990 1991 1992 2000 2001 2002 2003 2004 2012 2013 2014 2015 2016
Source: ORR data portal 45 Private Investment in Rail
• Private investment in rail has increased 63.5% since 2007-08 driven by the increased investment in rolling stock, up by over 90% to £767m in 2016-17
Private investment in the rail industry
Track and Signalling Rolling Stock Stations Other Investment 1,000 925
648 801 800
566 600 503 455 460 470 423 377 400
200
0 Privateinvestment (£ Millions)
-200
2011-12 2012-13 2013-14 2014-15 2007-08 2008-09 2009-10 2010-11 2015-16 2016-17
Note: In 2014-15 there were a large number of rail yards sold to Network Rail which is included in the 'Stations' category. Source: ORR data portal 46 Infrastructure Expenditure
• The cost of running the railway has fallen by 20% since 2003-04 • This has supported a 255% increase in investment by governments on enhancements over the same period
Network Rail operating and maintenance expenditure (2016-17 Network Rail renewal and enhancement expenditure (2016-17 8 prices) prices) 8 Operating expenditure Maintenance expenditure Renewal expenditure Enhancement expenditure* 7 7
6 6
5 5
£bn £bn 4 4
3 3
2 2
1 1
0 0
2006-07 2007-08 2008-09 2009-10 2010-11 2014-15 2015-16 2016-17 2003-04 2004-05 2005-06 2011-12 2012-13 2013-14
2003-04 2004-05 2007-08 2008-09 2009-10 2011-12 2012-13 2013-14 2016-17 2005-06 2006-07 2010-11 2014-15 2015-16
Source: Network Rail Regulatory Accounts Note: * Network Rail funded enhancements only Source: Network Rail Regulatory Accounts
47 Infrastructure investment by European Union Members
• Britain is investing over €1bn more than France and over €3bn more than Germany on its infrastructure, despite both countries having over 13,000km more of track
Total infrastructure expenditure in EU Member States
Maintenance Renewal Enhancements 10.0
9.0
8.0
7.0
6.0
5.0
Bn Bn Euros 4.0
3.0
2.0
1.0
0.0 UK FR DE IT ES PL SE AT NL NO BE HU CZ DK FI LT RO LV SK LU SI HR PT BG
Source: Eurostat 2014
48 Methodology
• All data is the most recent data available at the time of compiling • Where possible, data is from 1997-98 as this was the first full financial year after all franchises had been let • Earliest data available from the most reliable data sources presented whenever data from 1997-98 is not available • RPI has been used where figures are adjusted for inflation and set at 2016-17 prices Example Slide Headline