Langley Station and Access Improvements Business Case Slough Borough Council
8 November 2016
Langley Station and Access Improvements Business Case
Notice
This document and its contents have been prepared and are intended solely for Slough Borough Council’s information and use in relation to the Langley Station and Access Improvements Scheme
Atkins Limited assumes no responsibility to any other party in respect of or arising out of or in connection with this document and/or its contents.
This document has 71 pages including the cover but not including appendices.
Document history Job number: 5149496 Document ref: 5149496-DOC-001 Revision Purpose description Originated Checked Reviewed Authorised Date Rev 1.0 Structure DW Rev 1.1 Initial issue to WYG CT/JH TC LW DW 15/09/16 Rev 1.2 Second issue to WYG CT/JH TC LW DW 28/10/16 Rev 1.3 Final issue to WYG TC DW DW DW 08/11/16
Client signoff Client Slough Borough Council
Project Langley Station and Access Improvements
Document title Business Case
Job no. 5149496
Copy no.
Document 5149496-DOC-001 reference
ii Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
Table of contents
Chapter Pages 1. Introduction 1 The Langley Station and Access Improvements scheme 1 Background to the Business Case 1 Purpose of this document 2 Structure of the document 2 2. Scheme description 4 The proposed scheme 4 Complementary measures 6 3. The Strategic Case 8 Area description 8 Strategic external relationships 9 Business strategy 10 Problems identified 14 Drivers for change 14 The impact of not changing 16 Objectives 17 Measures for success 17 Scope 18 Constraints 18 Inter-dependencies 18 Stakeholders 19 Options 20 4. The Economic Case 21 Outline approach to assessing value for money 21 Options appraised 21 Assumptions 22 Appraisal summary table 23 Value for Money statement 23 Assessment of social impacts 37 Value for Money 43 5. The Financial Case 46 Introduction 46 Outline approach 46 Cost estimates 46 Budgets/ Funding cover 48 Accounting implications 48 6. The Commercial Case 49 Outline approach 49 Output based specification 49 Procurement strategy 50 Sourcing options 51 Human Resource issues 53 Payment/ Charging mechanisms and framework 53 Risk allocation and transfer 53 Contract length 55 Contract management 55 7. The Management Case 56 Outline approach 56 iii Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
Evidence of similar projects 56 Programme / Project dependencies 57 Contract management 57 Governance, organisational structure & roles 58 Programme / Project plan 60 Assurance & approval plan 60 Communications & stakeholder management 60 Programme / Project reporting 61 Implementation of work streams 61 Key issues for implementation 62 Risk management strategy 62 Benefits realisation plan 63 Monitoring and evaluation 64 8. Summary and conclusion 69
Appendices 72 Appendix A. Scheme Drawings Appendix B. Landscape and Architecture Report Appendix C. Option Assessment Report Appendix D. Appraisal Specification Report Appendix E. Modelling Report Appendix F. Appraisal Summary Table Appendix G. PERS and VURT report Appendix H. Risk Register Appendix I. Programme Appendix J. Flooding and Groundwater Report Appendix K. Support Letters
Tables Table 1-1 Key objectives of the scheme 1 Table 1-2 BTLB programme management 2 Table 3-1 TVP LEP Strategic Economic Plan priorities 12 Table 3-2 Objectives and desired outcomes 17 Table 3-3 Option concepts 20 Table 4-1 Passenger demand 25 Table 4-2 Peak and off-peak standard fares, by destination 26 Table 4-3 Demand uplift 28 Table 4-4 Security benefits as new fare revenue 28 Table 4-5 Benefit values of changes in rail facilities (pence/journey) 29 Table 4-6 Benefit values of changes in cycling facilities (pence/journey) 29 Table 4-7 Cycle facilities benefits sensitivity tests (values in £ PV) 30 Table 4-8 Facilities benefits output - annual benefits as a result of rail and cycling facilities improvements to the pedestrian environment (values in £ PV) 30 Table 4-9 HEAT cycling benefits sensitivity tests 30 Table 4-10 Optimism bias mitigation 33 Table 4-11 Transport Economic Efficiency (£000s) – Core Scenario 35 Table 4-12 Public Accounts (£000s) – Core Scenario and Alternative Scenario 36 Table 4-13 Analysis of Monetised Costs and Benefits (£000s) 40 Table 4-14 Optimism bias sensitivity tests 41 Table 4-14 Scheme benefits sensitivity tests 42 Table 4-15 Non-monetised impacts of the Core Scenario 44 Table 4-16 Non-monetised impacts of the Alternative Scenario 45 Table 5-1 Breakdown of costs for the highway scheme 46 Table 5-2 Quantified Cost Estimate (millions, outturn) 47 Table 5.3 Funding package (£m, outturn) 48 Table 6-1 Procurement options 52 Table 6-2 Key project risks 55 Table 8-1 Quantified Cost Estimate (millions, outturn) 70 iv Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
Figures Figure 4-1 PERS link assessment 31 Figure 7-1 Langley Station and Access Improvements scheme project governance structure (Highways elements) 59 Figure 7-2 Intervention logic map for the Langley Station and Access Improvements scheme 65
v Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
Executive summary
Langley Station and Access Improvements Scheme Slough Borough Council, Network Rail, Rail for London (Crossrail) and Great Western Railway hold a joint interest in how the borough’s three national rail stations are accessed by those living or working in Slough. With the arrival of Crossrail services scheduled from 2019, with the associated enhanced travel opportunities and improved regional connectivity, the accessibility and quality of facilities at and around the borough’s three stations will become even more crucial. Langley Station will be a gateway for Crossrail within Slough, providing rail access and connectivity between the residential areas in the east of the Borough with both the wider Thames Valley Berkshire sub-region and London. The Langley Station and Access Improvement scheme is expected to support the Thames Valley Berkshire Local Enterprise Partnership (TVBLEP) aims of investing in infrastructure that would help grow employment, enterprise and industrial opportunities in the sub-region and enhance cross-boundary connectivity. The Core Scheme aims to improve pedestrian and cyclist access to Langley Station, provide reconfigured parking arrangements and drop-off facility for the station, and improve the perception of safety and security at and around the station. This includes measures such as new provisions and improvements of pedestrian facilities, introduction of shared use areas for pedestrians and cyclists, improvement of cycling facilities both within and around the station, reconfiguration of station car park including a new drop-off (kiss-and-ride) area in the station forecourt, and improvement in the landscaping around the station as well as the public realm. The scheme will also include elements undertaken by Crossrail/Rail for London under their On-Station Improvement Programme Step Free Access scheme.
Problems and objectives The Langley Station and Access Improvement scheme would provide an opportunity to improve pedestrian and cycling access to and around the station, thereby encouraging increased walking and cycling trips. Improving access and safety at and around Langley Station would improve the attractiveness of Langley Station, and therefore support the TVBLEP aims of investing in infrastructure that would unlock future opportunities to enhance cross-boundary partnerships. The Langley Station and Access Improvement scheme’s public realm enhancements are expected to widen the influence of the Heart of Slough regeneration within Slough town centre, as well as wider infrastructure improvement projects within the town. The improvements to the station facilities, including a lift, wider stairs, minor station refurbishment works, and modified platform furniture will enhance perceptions and safety at this station. The Langley Station and Access Improvements scheme would ensure users with reduced mobility will be able to use the new rail services serving Langley Station. These users are currently unable to access existing services to and from the station, with the current layout necessitating that they travel to Slough or Datchet stations at present. Generally improving connectivity from Langley Station would contribute to improving people’s ability to access employment and education opportunities. Public realm improvements will also support local affordable transport in order to reach these opportunities, especially for pedestrians and cyclists.
vi Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
Objectives Desired outcomes
(1) Improve Facilitate / encourage commuter travel to/from Langley station pedestrian Encourage mode shift for journeys to/from the station towards sustainable access to and active travel Langley Enhance the legibility and visibility of Langley station to residents and station commuters in the wider area Improve safety and journey times for pedestrians using the key Station Road / Waterside Drive junction Maximise benefits accruing from rail operator investment into improving the services and passenger facilities at Langley station Transform the area around the station to a less car-dominated environment (2) Improve Improve cycling infrastructure surrounding and within Langley station access for Increase the number of journeys to/from the station undertaken by bicycle cyclists to Improve the health of rail users via active travel Langley Improve safety for cyclists travelling to and from Langley station station Enhance the connectivity for cyclists with key trip generators in the local area, such as East Berkshire College Support uptake of the Slough Cycle Hire scheme in the borough (3) Provide Provide a better layout for improved access to / from the car park area reconfigured and improved taxi and kiss & ride drop off parking Provide additional parking via Access Road / HEX depot arrangements Provide better access to and from the station for people with disability or and drop off reduced mobility facility for Reduce instances of vehicle conflicts with other station users Langley Station (4) Improve the Create a more welcoming environment perception of Reduce reports of criminal or antisocial activity safety and Improve the overall passenger experience of using Langley station security at and Generate an environment that is more attractive for future, potential around investment and development in the area Langley Station
Strategic fit The scheme objectives have been defined to address directly the problems identified above. They align closely with the business strategies for the scheme promoters, the Local Economic Partnership and for Central Government – most obviously in terms of the Government’s broad goals for transport. In March 2014, the Thames Valley Berkshire LEP submitted their Strategic Economic Plan (SEP). This scheme aligns with the aspirations within the SEP in terms of promoting local growth and access to employment and education opportunities. The highways and public realm improvements, together with improvements to the station facilities and reconfigured car parking will all contribute to making Langley Station a more attractive and user-friendly transport node and ensure that the benefits associated with Crossrail’s scheduled semi-fast rail connectivity can be maximised.
Value for money – what the scheme will deliver Scheme value for money has been assessed based on a WebTAG-compliant framework but adapted to include other methods taken from the TfL Business Case Development Manual. The Core Scenario presented in this scheme includes all the works being funded by TVB LEP, SBC and Network Rail/Rail for London. Network Rail/Rail for London’s step free station improvement element of the Langley Station and Access Improvements scheme has funding already allocated. A truer reflection of the TVB LEP’s funding would be to remove the costs and benefits associated with that element from the Core Scenario calculations. For this reason, an Alternative Scenario which appraises only the TVB LEP funded elements of the Core Scenario is also presented. vii Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
Economic appraisal The potential impacts of the Langley Station and Access Improvements scheme have been assessed in the following ways: Using a LinSig highway junction model to determine the impact of the scheme on the highway network
Rail demand uplifts calculated from Passenger Demand Handbook Forecast (PDFH) have been used to quantify the increase in revenue from rail fares linked to improved station facilities
Car parking revenue uplifts based the utilisation of additional car parking with existing prices factored for inflation
The use of TfL Willingness to Pay and pence per journey benefits (factored to DfT values) to estimate the impact that improving station facilities will have
Health benefits derived from increases in cycling as a result of increased cycle parking.
Environmental and social impact appraisal A desktop appraisal has been undertaken for the scheme following the guidance provided in TAG unit A3. For each of these seven environmental aspects, an appraisal of the scheme has been undertaken to identify whether significantly beneficial or adverse environmental effects are likely to arise. It was found that the impacts are slightly/moderately positive for Townscape, Physical Activity, Accidents, Security, Accessibility, and Severance.
Appraisal scheme costs A robust approach to the estimation of scheme costs has been developed by the scheme designers and is based on benchmarked construction values from recent schemes in Slough in additional to direct costs provided by Network Rail and Rail for London. The total costs, have been converted to 2010 prices and values using the default rates included in TUBA, and discounted to 2010, produce an investment cost of £4.922 million PV for the Core Scenario. The scheme appraisal includes increased rail revenue (post refranchising) as a cost rather than a benefit, and when added to the investment cost equates to a PVC of £2.752 million PV. For the Alternative Scenario an investment cost of £1.265 million PV is required, and once rail revenue is added, becomes a PVC of -£0.905 million PV.
Scheme appraisal The PVB divided by the PVC suggests the Core Scenario has a scheme BCR of 0.31 which would suggest a Very Poor Value for Money. However, by far the main component of the investment cost of the Core Scenario scheme reflects the commitment to provide full step-free access within the station with the Step Free Access element of the station improvement. Whilst this element provides step-free access to the platform from the forecourt, it has not contributed a significant value to the monetised benefits despite accounting for approximately three quarters of the scheme cost. As the funding for the Step Free Access element is already secured, and at no risk to SBC or TVB LEP, it should be argued that the Alternative Scenario provides a more accurate representation of the economic appraisal of the LEP’s investment. For the Alternative Scenario it is not possible to undertake a standard assessment of Value for Money through following the DfT’s Value for Money Assessment: Advice Note for Local Transport Decision Makers guidance, due to the unconventional method of assessing the cost-benefit resulting from the need to include additional revenue within the PVC rather than PVB. Unlike for BCRs, the DfT do not provide an equivalent method of attributing Value for Money thresholds to NPV/k calculations. It is known that with a positive NPV and Impact to the Broad Transport Budget that there is a positive return from investment provided by the scheme. Any consideration made of Value for Money is therefore subjective, however one must be made in order to inform the funding body of the overall impact of the scheme. The analysis suggests that the Langley Station and Access Improvements scheme Alternative Scenario will generate a NPV of £1.219 million PV made up of: £0.182 million PV resulting from decreases in highway journey times viii Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
£0.467 million PV resulting from improvements to station facilities and access and as a result of increases in physical activity
£1.955 million PV resulting from increases to rail fare revenue and £0.319 million PV from car park revenue
-£0.432 million PV resulting from impacts on indirect taxation
This NPV divided by the investment cost of £1.265 million PV will generate a NPV/k of 0.96. This represents a significant positive return on investment for the funding bodies. The general station improvements and wider public realm improvements will encourage more people to choose walk and cycle as their mode of accessing the rail network, but may also encourage more people to use rail as their main mode for journeys. Further social and environmental benefits have been derived from qualitative assessment, and whilst these will not provide a monetised benefit for use in this appraisal, the impacts are taking considered when deriving the Value for Money presented by the scheme. The scheme is judged to have neutral impacts on noise and air quality as a result of the redistribution of traffic around the network, and also to have neutral impacts on landscape. It should be noted that although these are neutral impacts, the scheme would bring a number of slight and strong positive benefits to users of the transport systems including improved accessibility, safety and enhanced levels of journey quality and physical activity. The combination of the positive return on investment and the qualitative non-monetised impacts would suggest that the Alternative Scenario scheme would achieve an overall High/ Very High Value for Money. Sensitivity tests undertaken show that reducing the background growth or the overall level of benefits is still shown to result in positive return on investment for the LEP/ SBC. It is considered that regardless of the reduction in returns, the scheme could still be assessed to result in a High Value for Money. As the funding for this element is already secured from an external source, a robust argument could be made for considering this as the truer reflection of the economic assessment of the LEP’s investment
Delivering the scheme Extensive work has already taken place to ensure that the mechanisms for delivering the scheme are in place, from initial conception right through to construction and maintenance. The project is overseen by a steering group known as the Project Board which includes the Senior Responsible Owner (SRO) who is responsible for the delivery of the project and the Section 151 Officer. The planning of the SBC-sponsored elements of the scheme has run in-line with the BLTB Assurance Framework procedures. The following key milestones for SBC and BLTB/LEP signoff are shown below: Decision by BLTB/Thames Valley Berkshire LEP Board on commitment of funding: mid November 2016;
Contract between BLTB, LEP and scheme delivery body produced and signed: late November 2016;
Detailed design approval (SBC): April 2017;
Construction supplier appointed and contract agreed (SBC): late May 2017;
The sign-off of construction duties by SBC at the completion of the scheme: March 2018.
Financial and commercial considerations The total scheme (including SFA elements) outturn cost, is £6.043 million including inflation and risk but excluding optimism bias. Of this £4.5 million is funded directly by secured contributions from Network Rail/ Rail for London. The remainder of the scheme cost is funded by SBC and TVB LEP and totals £1.542 million based on: £0.171 million of preparation costs
ix Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
£1.163 million for scheme construction, supervision and other works
£0.209 million for risk allowance
The funding package for the scheme is made up of:
£1.5 million of funding from the Berkshire Local Transport Body (via TVB LEP)
£0.043 million of funding from Slough Borough Council’s capital scheme programme
Conclusion This Business Case presents the assessment and appraisal of a Core Scenario that includes improving accessibility to and on Langley Station, plus the full scope of public realm, pedestrian, cycling and station improvements proposed by Slough Borough Council, Network Rail and Rail for London. The appraisal has shown that there will be significant beneficial impacts to: revenue (through increased demand for car parking and rail tickets); large positive benefits to the value of passenger journeys through improved public realm, facilities and security; and non-monetised benefits. However, owing to the significant investment cost for the Step Free Access works (funded by Network Rail/ Rail for London) the BCR for the Core Scenario (0.31) represents a Poor Value for Money. Whilst this element provides step-free access to the platform from the forecourt, it has not contributed a significant value to the monetised benefits despite accounting for approximately three quarters of the scheme cost. As the funding for the Step Free Access element is already secured, and at no risk to SBC or TVB LEP, it should be argued that the Alternative Scenario provides a more accurate representation of the economic appraisal of the LEP’s investment. In that case the scheme would generate a NPV/k of 0.96 (a return of £0.96 on top of every £1 invested). The combination of the positive return on investment and the qualitative non-monetised impacts would suggest that the Alternative Scenario scheme would achieve an overall High/ Very High Value for Money.
x Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
1. Introduction
The Langley Station and Access Improvements scheme 1.1. Slough is one of the six unitary authorities within the Thames Valley Berkshire (TVB) sub- region which forms one of the UK’s most important economic sub-regions for both national and international trade. A number of high-end technology, industrial and service companies are based in the area, with many looking to expand their premises and others looking to move into the sub-region. Slough in particular is a key growth area for business and residents owing to its proximity to Heathrow and London.
1.2. One of the government’s most important major infrastructure investments has been in the development of Crossrail as a semi-fast east-west rail link connecting Central London with Reading, Maidenhead and Slough to the west and with Shenfield and Abbey Wood to the east. Within Slough borough, there will be three Crossrail stations at Burnham, Slough and Langley. Langley Station will be a gateway for Crossrail within Slough, providing rail access and connectivity between the residential areas in the east of the borough with both the wider Thames Valley Berkshire sub-region and London.
1.3. The Langley Station and Access Improvement scheme is expected to support the Thames Valley Berkshire Local Enterprise Partnership (TVBLEP) aims of investing in infrastructure that would help grow employment, enterprise and industrial opportunities in the sub-region and enhance cross-boundary connectivity. In addition to providing an improved eastern point of access for the borough, the highway and public realm improvements around the station will play an important role in defining the reputation and image of Slough. Langley Station, as one of three planned Crossrail stations in Slough, will benefit from the additional and faster rail services. Access improvements at and around the station will help ensure that the connectivity benefits and local growth potential resulting from Crossrail can be fully realised.
Table 1-1 Key objectives of the scheme
Key objectives of the Langley Station and Access Improvements scheme
1 Improve pedestrian access to Langley station
2 Improve access for cyclists to Langley station
3 Provide reconfigured parking arrangements and drop off facility for Langley Station
4 Improve the perception of safety and security at and around Langley Station
Background to the Business Case 1.4. Following the devolution of major transport scheme funding from the Department for Transport, Slough Borough Council (SBC), as part of the Berkshire Local Transport Body (BLTB) along with Bracknell Forest, Reading, West Berkshire, Windsor and Maidenhead and Wokingham Councils and the TVB Local Economic Partnership (LEP), were asked to prepare business cases for proposed schemes which would deliver the transport infrastructure critical for realising growth and developments identified in the Core Strategy.
1.5. In January 2013, the BLTB issued a Founding Document which set out the principles and arrangements for the BLTB to follow when allocating funding amongst the applicants. This was superseded by a revised version in November 2013 and included a five-step process for prioritising the schemes submitted by the BLTB members. This process is outlined in
1.6. Table 1-2.
1 Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
Table 1-2 BTLB programme management
Founding document process
Unapproved or Long List of schemes. We will invite councils, the LEP (and other bodies in limited circumstances) to submit unapproved schemes for consideration. 1 These will either be; refused, referred back for further development or accepted into the Programme.
Programme Entry Stage. Acceptance into the Programme signifies only that we will give a scheme further detailed consideration. The scheme proposer will develop a full Transport Business Case in line with current DfT guidance and this will be 2 subject to independent assessment and public scrutiny before a scheme can be considered for Approval. In addition, in order to demonstrate value for money, all schemes will be developed in accordance with current WebTAG guidance published by DfT, and this assessment will also be independently scrutinised.
(optional) In appropriate circumstances, a scheme may be given Conditional 3 Approval (e.g. conditional on securing a financial contribution from S.106 or similar source).
Where a scheme can demonstrate high value for money and receive a positive assessment, and have this validated by the independent appraisal, it may become 4 an Approved scheme. In other cases it may be deleted from the Programme, or referred back for further development, but retain its place in the Programme.
Approved schemes will be subject to formal agreement about roles, responsibilities, 5 reporting and auditing between the BLTB and the Local Transport Authority promoting the scheme.
1.7. In March 2014, the TVP LEP published their Strategic Economic Plan (SEP) which defined schemes and measures which would help deliver the TVB sub-region’s aspiration growth in employment, housing and skills. The SEP document outlines the case for the necessary investment to infrastructure, enterprise and employment that is required for the Thames Valley Berkshire region’s economy to continue its growth and maintain its position as the UK’s most productive sub-region. In particular the SEP makes direct reference to Crossrail as forming a key part of TVB’s strategic transport network.
1.8. In response to the SEP, SBC have chosen to bring the Langley Station and Access Improvement scheme for addition to the programme.
Purpose of this document 1.9. This document is intended as the proportionate Business Case submission for Step 2 of the BLTB Founding Document process for the Langley Station and Access Improvement scheme. The document provides details of the progress made on developing the scheme and how it will be managed through to implementation.
1.10. The aim of this document is to present a proportionate five-case model Business Case for the Langley Station and Access Improvement scheme to the BLTB which is reviewing the applications for funding.
Structure of the document 1.11. This report is structured in accordance with the Department for Transport’s guidance on Transport Business Case, which was updated in January 2013. Following this Introduction, the remainder of the document is structured as follows:
Chapter 2 provides a description of the scheme design 2 Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
Chapter 3 states the Strategic Case
Chapter 4 presents the Economic Case including the Value for Money Statement
Chapter 5 outlines the Financial Case
Chapter 6 details the Commercial Case
Chapter 7 provides the Management Case
Chapter 8 summarises and concludes the business case
3 Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
2. Scheme description
The proposed scheme 2.1. SBC, Network Rail, Rail for London (Crossrail) and Great Western Railway hold a joint interest in how the borough’s three national rail stations are accessed by those living or working in Slough. With the arrival of Crossrail services scheduled from 2019, with the associated enhanced travel opportunities and improved regional connectivity, the accessibility and quality of facilities at and around the Borough’s three stations will become even more crucial.
2.2. Collaboration between the interested parties has been on-going for some time, and has resulted in the combined Langley Station and Access Improvements Scheme. The scheme is intended to improve station facilities at Langley and enhance access to the station from the surrounding eastern part of the Borough and the neighbouring areas of south-eastern South Buckinghamshire.
2.3. Some work has recently been undertaken as part of Network Rail’s electrification programme to prepare the line for Crossrail services. However, this scheme focuses on improving access to and from Langley Station and the user experience within and around the station itself.
2.4. Should the application for funding be successful, SBC propose to undertake the detailed design and implementation of the following elements to improve multi-modal access to the station, as shown on Drawings 5150449-ATK-HGN-ZZ-DR-D-1001 / 1002 / 1003-P5 in Appendix A:
Improved pedestrian facilities to and from the station, both from the north and the south approaches:
Provision of a new zebra / tiger crossing facility on Station Road adjacent to Alderbury Road; and
Provision of improved non-signalised pedestrian facilities at the Waterside Drive / Station Road junction to the north of the railway bridge. There will not be provision of any pedestrian stages at this junction, including at the station access road, however wider pedestrian refuges with tactile paving will be provided in order to improve on the current provision of pedestrian facilities.
Improvement of landscape in the vicinity of the station and particularly on Alderbury Road (full Landscape Report available in Appendix B)
Vegetation enhancement
Creation of a pocket park
General public realm enhancements
Improvement of cycling facilities on-street in the vicinity of the station, including:
Provision of a zebra / tiger crossing on Station Road adjacent to Alderbury Road;
Introduction of shared use areas on Station Road and the junction with Alderbury Road; and
Introduction of Advance Stop Lines (ASLs) at the Waterside Drive / Station Road junction.
Improved cycle parking facilities within and around the station:
4 Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
Introduction of 22 new cycle racks (44 spaces) adjacent to the southern entrance to the station – this is an increase of 22 compared to current arrangements;
Introduction of 24 new cycle racks (48 spaces) within and adjacent to the station car park in various locations, this offers an increase of 18 spaces compared to the current 30 spaces available;
A new Cycle Hub will be implemented in the station car park area, offering secure, membership-only (swipe card access) cycle parking for approximately 20 bikes for a small membership fee (following the example from the Cycle Hub at Slough station; and
Introduction of a Cycle Hire Slough docking station within the station car park area, offering public bike hire linking with Slough’s existing scheme of nine docking stations across the town (including three in the Langley area).
Improved linkages with bus stops for pedestrians, including improved information provision to assist onward journeys by bus;
Provision of a Real-Time Passenger Information (RTPI) screen in the station for onward bus travel information;
Improvements to the station car park, including:
A new entrance, further up the Access Road;
Better use of space within the car park including improved configuration of spaces;
Introduction of a dedicated taxi area;
Introduction of a dedicated drop-off area (kiss & ride), not available at present;
Introduction of four Electric Vehicle (EV) charging bays, not available at present;
Improved legibility and wayfinding, particularly for pedestrians;
Improved, widened and reconfigured access path for pedestrians and cyclists between the Waterside Drive / Station Road junction and the station;
Changes to the vegetation and landscaping to ensure good pedestrian and driver visibility of the station and access paths; and
Improved access to the station from the south for pedestrians, including a widened pedestrian / cycle path and improved low-level vegetation.
2.5. Lastly, the scheme will include the following elements being under taken by Crossrail / Rail for London (RfL) under their On-Station Improvement Programme (ONSIP) Step-Free Access (SFA) scheme.
A new passenger lift from the ground floor to the platform (for all platforms);
Wider staircase to meet standards;
Minor station refurbishment works including repainting of the station building and upgrade of the ticket office;
Modified platform passenger furniture.
2.6. The SFA element of the scheme is being entirely funded by RfL following the award of a grant from the DfT to improve accessibility for all potential uses of the rail network. The investment provided by SBC in and around Langley Station has provided Network Rail/Rail for London 5 Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
with the impetus to implement the SFA measures, recognising that it will enhance the benefits of the other aspects of the Langley Station and Access Improvements scheme, and vice versa.
2.7. As the RfL contribution to the scheme is secured, there is an argument that whilst it is a fundamental aspect of the scheme, its cost should not be considered when assessing economic performance and the overall Value for Money. This argument is explored as a sensitivity test, expanded upon in Section 4.
2.8. Network Rail are also carrying out complementary works at the station as part of the Western Rail Link to Heathrow (WRLtH) scheme. The WRLtH scheme will link Heathrow Airport with Slough (and the wider west region) by rail. Works will be carried out at Langley station however Langley itself will not have WRLtH services stopping here. Works are proposed to amend the configuration of the rail tracks in order to accommodate the WRLtH through- service. This will involve some reconfiguration of platforms and tracks but will not affect the station or surrounding area itself.
Complementary measures 2.9. As proof of the commitment of SBC to make Slough a better, more economically active and sustainable town; the Langley Station and Access Improvements scheme is just part of a wide ranging set of schemes which have already been delivered, are under construction or are planned in the borough. All of these schemes have the aim of improving accessibility in Slough through providing a safe and reliable sustainable transport network whilst reducing congestion, and enabling economic growth through development and reducing costs of travel for businesses, workers and residents.
2.10. In 2015, a scheme was implemented to reconfigure the pedestrian and traffic facilities at the Harrow Market area, at the junction of Station Road / Langley Road / High Street Langley, a short distance from this scheme area. This improved the pedestrian crossing facilities, and introduced traffic calming and 20mph zone features. Between 2012 and 2015 complementary behavioural change projects have been taking place as part of the Department for Transport’s Local Sustainable Transport Fund (LSTF) project, alongside various capital improvements within the town. This has involved an intensive schools project to support and encourage staff, pupils and parents to travel using sustainable modes; as well as a workplace project focusing on large employers in the town, including intensive work with East Berkshire College on both the workplace travel support project, and the Bike It project (Sustrans) where staff and students are supported via various means to travel to college by bike. As part of the LSTF the college has benefitted from two match-funded grants from the council, for secure staff bike lockers and a bike repair stand / pump, additionally they have improved the security of their main bike shed with CCTV, gating and swipe card access.
2.11. Furthermore, the college has introduced discounted bus and rail fares for its students travelling to college. The college has its own Travel Plan which showed that in the last Travel Plan surveys (2014), 7% of staff and 20% of full time students travelled to the site by train (an increase from the 2012 level of 1.8% of staff, and a consistent result of 20% for students in 2012), and 2% of staff and 31% of students by bus. The college is working with the council to increase these figures in line with their Travel Plan targets and continue to support staff and students travelling by public transport, walking and cycling.
2.12. Funding has been secured from the BLTB to implement three major projects:
Slough Mass Rapid Transport (SMaRT) scheme, involving Highway infrastructure measures aimed at delivering journey time and reliability performance improvements of bus services along the A4 while also improving efficiency of operation of the highway network for general traffic as a whole. Phase 1 of the route runs from Slough Trading Estate to Slough station, Phase 2 from Slough station to Heathrow Airport (along the A4 through Langley). This will help foster rapid transport links between Langley and Heathrow Airport, a key destination and employment hub;
The A355 Copthorne roundabout improvement scheme, which will remove a major bottleneck on Slough’s highway network thus improving the flow of traffic between
6 Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
Slough’s residential and employment generators and the M4. The scheme will help reduce congestion on the A355 through increased highway capacity but will also reduce congestion on the A4 which is currently affected by blocking back from the junction; and
The A332 Windsor Road improvement which will increase capacity and reduce congestion on a key link between Slough and Windsor, whilst also improving public realm and extending the reach of the Heart of Slough improvements in central Slough.
Managing the impact of construction 2.13. Construction of the highway elements of the Langley Station and Access Improvements scheme is programmed to start in August 2017 and completed by March 2018. Crossrail / RfL are currently working to a construction start date of January 2018 for the SFA scheme – to be finished by August 2019; and for the minor station and platform works will be undertaken from January to August 2019. Network Rail are currently working to construction dates of mid-2019 to December 2019 for the WRLtH works.
2.14. As part of the tendering process for delivery it will be requested that a Construction Management Plan be developed to protect the interests of local residents, businesses and the general public in the immediate vicinity of the construction works. The code will seek to minimise impacts, such as noise, vibration and traffic, during the period of construction, and this will need to be signed off by SBC as part of the procurement process.
7 Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
3. The Strategic Case
Area description 3.1. Slough borough is characterised as a dense urban environment bounded by green belt, situated in the east of Berkshire and in the Thames Valley Berkshire sub-region. There are three rail stations in the borough, namely Slough, Langley and Burnham.
3.2. Langley Station is located to the east of Slough in Langley which consists of residential, retail, commercial and industrial land use. The immediate area to the north of the station comprises of a light industrial park, and to the south is Langley Business Park (a site earmarked for future re- development, though pre-application planning application has been submitted no plans have been formalised / approved for this site at present. The site was previously subject to an unsuccessful planning application for predominantly retail use). East Berkshire College’s Langley College is approximately 0.2 miles to the south west of the station. Langley is connected to the strategic highway to the south via the M4 motorway and the A4 London Road.
3.3. Langley Station is currently served by Great Western Mainline trains, with a typical frequency of three trains per hour and a typical AM peak journey time of approximately 31-35 minutes to London Paddington. This is compared to services at Slough Station, which typically sees a higher level of service (approximately six trains per hour to London) with a journey time of approximately 20 minutes to London Paddington. Langley also serves Reading with four main services in the AM peak, and Oxford with approximately two trains per hour in the AM peak.
3.4. The highway network in this area is most heavily trafficked along the adjacent B470 Station Road / Langley Park Road and there appears to be a high proportion of heavy goods traffic accessing the adjacent businesses. This is an important consideration when improving accesses to Langley station for pedestrians and cyclists, including children and students accessing the local nurseries, schools and college near the station respectively.
3.5. The junction adjacent to Langley Station (B470 with Waterside Drive and station access road) is poorly configured for pedestrian and cycle access to and from the station, local businesses and onward destinations. General access arrangements to and from the station are poor, in particular for those with mobility impairments. It is important to the success of Crossrail and future developments in the area that the access to and from Langley is fit-for-purpose to both allow the necessary access whilst also stimulating growth.
Socio-economic characteristics of the study area 3.6. The 2011 census indicates that Langley St Mary’s ward has a population of 8,079. Various socio- economic problems have been identified in the ward, including:
15.2% of households show 'overcrowding' compared to just 8.5% across England and Wales;
The ward's average household size is 2.6 people per household - compared to 2.8 in Slough which is the second highest across England and Wales;
Almost 15% of households in the ward do not own a car and of those that do, single car ownership is the most common with 43% of owners owning a single vehicle;
Of ward residents aged 16 to 74, 76.4% (4,620 people) are economically active; 23.6% are economically inactive (compared to 26.6% in Slough and 30.3% across England and Wales respectively); whilst 1.5% of the workforce is unemployed;
Around 15% of the ward residents aged 16 and over hold no qualifications. 13.5% hold Level 1 qualifications, with lower than average possession of higher levels compared to England. almost 10% of residents hold 'Other qualifications', reflecting the high level of non-UK immigrants; and
7.3% of the ward residents are aged 0-4 years old and around 25% between 30 – 44 years old. 8 Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
Strategic external relationships 3.7. Heathrow Airport, Crossrail and the Slough Trading Estate are all significant external developments that have brought and/or will bring change in Slough, which to varying degrees, will impact or be impacted by patronage at Langley station. In addition local developments - such as the Langley Business Centre site redevelopment - will also bring about growth in this area in Slough and are also in part reliant on connectivity provided by Langley.
Heathrow Airport - Slough 3.8. London Heathrow Airport is one of the largest international airports in the world. In 2014, 73.4 million passengers and 1.5 million metric tonnes of cargo passed through the airport. Following the opening of Terminal 5 (less than seven miles from Slough town centre) in 2008, annual passenger numbers have grown from 66.9 million and are expected to continue to grow - eventually reaching 90-95 million.
3.9. Heathrow has two major impacts on the economy of Slough. Primarily this is seen through the airport generating significant employment directly, in the form of on-site workers, and secondly through indirect supply chain linkages. Slough’s close proximity to the airport makes it a prime location for multinational industry.
3.10. In 2010, a survey was conducted to investigate Heathrow’s labour market and found that Slough provided over 4,000 direct on-site employees. Additional economic analysis estimated that a further 1,500 off-site indirect jobs associated with the airport were taken by the residents of Slough.
3.11. As a key employment and business hub for the Slough economy, public transport connections with Heathrow are of key importance to improve connectivity. By offering an appealing alternative to the private car it is possible that mode shift to rail could occur. With Crossrail and WRLtH both offering improved journey times from Slough to Heathrow compared to current rail services, it is possible that more people will travel by rail and that patronage at Langley could increase. It is important that the station is able to cater for any increase in demand as a result of Crossrail or WRLtH.
Crossrail 3.12. In the National Infrastructure Plan 2014, Crossrail remains on the top 40 list (at no. 12) under the following three criteria:
Strategic importance (SI): project delivers a significant contribution towards an objective
Capital value (CV): project of significant capital value
Regional priority (RP): project of high strategic importance or capital value in a region in order to focus its resources on the delivery of those investments that either make the most significant contribution towards specific objective(s)
3.13. These elements of the government’s vision and the status of Crossrail in this national context are directly relevant to the scheme options for enhancing the accessibility of all Slough stations, including Langley Station, and resolving local congestion and access problems.
3.14. In the case of the highway network and public realm around Langley Station, it is vitally important that local infrastructure is put in place to enable the full benefits of Crossrail to be realised at a local and regional economic level.
Langley Business Centre and Waterside Drive Business Park 3.15. Langley Business Centre is located to the south of Langley Station. It is a mixed-use development with office and industrial accommodation. It is home to local, regional and national companies, including high-technology companies. Given its location, it is an attractive location for businesses and it is likely that this will be compounded in the future with current connectivity to London and Reading set to improve with the start of Crossrail services. The site was previously subject to a planning application submission for predominantly retail use, which was refused by SBC’s planning committee. Following this, the site has been subject to a recent pre-application
9 Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
planning application, which sought to redevelop the site to mixed use including residential and retail. The redevelopment of this site to mixed use (predominantly residential) presents an opportunity for not only an increase in future users for the improved station, but also an excellent opportunity to provide improved linkages through the development between Langley station and the nearby Harrow Market regional shopping and residential area. As it currently stands, whilst a pre-application planning application has been submitted and in principle agreed, there have not yet been any formal full planning application submissions for this site.
3.16. Waterside Drive Business Park is adjacent to Langley Station. It is home to office and industrial accommodation for a range of uses ranging from childcare to large vehicle recovery services. As such it is frequented by a range of users and vehicles. The adjacent junction must be able to safely accommodate both rail users and users of the business park.
3.17. It is important that Langley station develops such that it can accommodate any growth in either of the business locations as well as any future redevelopments and growth in housing provision.
Slough Trading Estate 3.18. The Slough Trading Estate (STE), owned by SEGRO, is the largest industrial estate under single ownership in Europe. It is home to over 400 businesses, which provide over 17,000 jobs – around a quarter of all jobs in Slough. The estate is and will continue to be a major employment centre in Slough.
3.19. While travel between Langley and Burnham (serving the western section of the STE) is relatively limited and is currently car-dominated, it is likely that business investment across Slough will be a catalyst for growth in general and therefore these wider developments should be considered a benefit to the wider borough including key employment areas such as the STE. Furthermore, investment by Slough Borough Council in the Slough Mass Rapid Transit (SMaRT) scheme (with businesses located along the A4 Bath Road section of the STE using the service for their staff) will improve linkages between Slough Trading Estate and Slough station, thereby increasing the potential for travel from other stations to Slough station, such as Langley.
Heathrow Express Depot (HEX Depot) 3.20. As part of the High Speed 2 (HS2) development it has been proposed that the Heathrow Express rail depot is relocated from its’ current location at Old Oak Common to Langley. This will enable HS2 works to be accommodated on the current depot site.
3.21. Although the details are subject to change, it is expected that the new depot will sit adjacent to Langley Station to the north.
3.22. The Langley Station and Access Improvement scheme would provide an opportunity to improve access to and around the station, thereby encouraging more walking, cycling and use of rail. Through improving access and safety at and around Langley Station the attractiveness of Langley would improve and would likely encourage increased patronage. This supports the TVB LEP aims of investing in infrastructure that would unlock future opportunities to enhance cross- boundary connectivity. Importantly, development at Langley should enable - rather than hinder - growth by ensuring that the infrastructure is fit for the future.
3.23. Although the relocation is not expected to generate any significant job growth as most of the staff will relocate from the current site, it is important that the infrastructure adjacent to Langley facilitates the safe and efficient movement of people through the area, while accommodating the growth of the HEX Depot. It is possible that the HEX Depot will have a minor impact on footfall in the area accompanied by an increase in LGVs and HGVs accessing the depot (in the region of approximately 75 HGV movements per day).
Business strategy
National transport priorities 3.24. The Government has long-term objectives aimed at improving the economy, environment and society. These are the three tenets against which major transport infrastructure projects are assessed, and will continue to be assessed in future.
10 Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
3.25. In its National Infrastructure Plan 2011, the Government presented its vision for the UK transport system:
Transport infrastructure can play a vital role in driving economic growth by improving the links that help to move goods and people around and by supporting the balanced, dynamic and low-carbon economy that is essential for future prosperity; and
Local transport systems must enable suburban areas to grow. The transport network must support good value and rapid movement of goods around the country. The transport system must be efficient but also resilient and responsive to infrequent and unexpected pressures.
3.26. In support of its objectives, the government publishes annual updates to its National Infrastructure Plan, through which the government reports on progress toward meeting its objectives and refreshes its top 40 list of priority infrastructure investments for the future. Two infrastructure projects of direct relevance to the Langley Station and Access Improvements scheme are Crossrail and Access for All.
Crossrail 3.27. In the National Infrastructure Plan 2014, Crossrail remains on the top 40 list (at no. 12) under the following three criteria:
Strategic importance (SI): project delivers a significant contribution towards an objective
Capital value (CV): project of significant capital value
Regional priority (RP): project of high strategic importance or capital value in a region in order to focus its resources on the delivery of those investments that make the most significant contribution towards specific objective(s)
3.28. These elements of the government’s vision and the status of Crossrail in this national context are directly relevant to the scheme options for enhancing the accessibility of Langley Station and resolving local congestion problems.
3.29. In the case of the highway network and public realm around Langley Station, it is vitally important that local infrastructure is put in place to enable the full benefits of Crossrail to be realised at a local and regional economic level.
Step Free Access (SFA) scheme 3.30. New infrastructure investment announced in the National Infrastructure Plan 2014 includes increase in funding for the Access for All scheme to improve platform access for 20 stations across the UK.
3.31. Funding has already been allocated to Langley station for step-free access upgrades through the provision of a new footbridge. Alongside the footbridge, the scheme will include costs required to refresh the appearance of the station and other minor aesthetics.
3.32. The allocation of this funding to Langley through Network Rail/Rail for London signals the importance of accessibility in general, but also the importance of Langley Station to the local residential and employment communities.
3.33. It is important to note that the funding for these works has been allocated based on Network Rail/Rail for London’s own Business Case and approvals process. The cost of the scheme (£4.5 million) provided by Network Rail/Rail for London includes all management, overheads, risk and inflation. Any increase on costs over and above that stated in this report will be met by Network Rail/Rail for London at no risk to the TVB LEP or SBC.
Regional transport priorities 3.34. In March 2014, the Thames Valley Berkshire LEP submitted their Strategic Economic Plan (SEP). The SEP document outlines the case for the necessary investment to infrastructure, enterprise and employment that is required for the Thames Valley Berkshire region’s economy to continue its successful upward trajectory.
11 Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
3.35. Within the six year period covered by the SEP (2015/16 to 2020/21) several considerable developments are planned, including Crossrail.
3.36. Within six packages for infrastructure investment which have been identified within the SEP, Crossrail is directly referenced in Package 6 – ‘Enhancing the Strategic Transport Network’. The SEP recognises one of Crossrail’s impacts will be to “enhance semi-fast inter urban rail connectivity within Thames Valley Berkshire”1.
3.37. Langley Station, as one of three planned Crossrail stations in Slough, will benefit from future additional and faster rail services. Access improvements at and around the station will help ensure that the connectivity benefits and local growth potential resulting from Crossrail can be fully realised.
3.38. Along with enabling the area surrounding Langley to realise the full benefits brought by Crossrail, this scheme will complement other infrastructure packages and potentially contribute to delivering greater cumulative benefits in terms of the SEP’s six priorities (as shown in Table 3-1). In particular, the scheme will improve access to the local business around Slough, Most relevant to this scheme are the local businesses and key employers such as Heathrow Airport.
3.39. Improvements at Langley Station would complement planned rail upgrades and enable the area to fully realise the potential of planned investment. Table 3-1 summarises how the Langley Station and Access Improvements scheme will enable the delivery the SEP’s programmes and packages.
Table 3-1 TVP LEP Strategic Economic Plan priorities
Strategic Priority Langley Station and Access Improvements Scheme contribution Unlocking housing Unlikely to unlock major housing development, on the basis that development specifically identified priority sites for housing are in Newbury and Bracknell, some distance from Langley Station. Enhancing urban The scheme has potential to improve the public realm, pedestrian connectivity and cycling environment around Langley station, promoting a site less dominated by private cars and a shift to active modes and public transport. As such, connectivity for public transport users and active modes will be enhanced. The scheme is not expected to significantly impact connectivity for other road users. Encouraging vibrant town Through realising the full potential of Langley Station (for example centres through maximising the potential demand from Crossrail by making the station a more attractive and accessible area), there is greater potential for a greater number of people to visit businesses and shops in the local area. Foundations for future Improving accessibility at and around Langley Station would growth complement other committed and planned transport schemes, enabling the area around Langley Station to realise the full potential of future growth generated by related increased demand. Enhancing the strategic Improvements at and around Langley Station would complement transport network major infrastructure investments including Crossrail and WRLtH, while also being consistent with aims to encourage mode shift and concurrent highway network improvements to enhance traffic capacity on main routes.
Positioning Thames Improvements are likely to have little or no direct effect on objectives Valley Berkshire for a for high speed data, 5G mobile, fibre networks and greater shifts digital future toward high tech industry. Any related inward investment as a result of Crossrail and access improvements at Langley, could drive the
1 http://thamesvalleyberkshire.co.uk/Portals/0/FileStore/StrategicEconomicPlan/TVB%20SEP%20-%20Implementation%20Plan.pdf; Accessed October 2015. 12 Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
Strategic Priority Langley Station and Access Improvements Scheme contribution digital future by making high-technology businesses at Langley Business Centre and Waterside Drive Business Park to be better connected.
Local transport priorities
Slough Local Development Framework 3.40. There are clear linkages between the Langley Station and Access Improvements scheme options and several of the policies within Slough’s Local Development Framework (Core Strategy 2006- 2026):
Core Policy 5 (Employment) governs the location of employment development within Slough. Langley Station improvements will better enable Langley Business Centre and, the warehousing and distribution networks in the area to have better access to the strategic road and rail network. Improved access will also benefit any future development of residential property in the area;
Core Policy 6 (Retail, Leisure and Community Facilities) governs retail, leisure and community developments. While the focus is on Slough town centre, community facilities and local services and centres must be retained. Improvements at Langley Station will ensure that access to the district shopping area in Langley will be enhanced. Station development would also support any future retail development in Langley Business Park;
Core Policy 7 (Transport) seeks to widen travel choices and make travel by sustainable modes more attractive than by private car, and improve road safety & air quality. The policy includes specific provision for these access improvements at Langley railway station and the works will improve accessibility and enable the future growth of Langley station into a local transport hub. The improvements will also support access to London and potential future rail links to Heathrow;
Core Policy 10 (Infrastructure) states that development will only be allowed where there is sufficient existing, planned or committed (transport) infrastructure. Improving the attractiveness and ease of accessing Langley Station will support wider plans to realise development in the local area, including Crossrail;
Core Policy 11 (Social cohesiveness) aims to ensure that all new facilities should be easily accessible to all, including physical accessibility and meeting the needs of people with impaired or reduced mobility. Improvements at Langley will align with these aims; and
Core Policy 12 (Community safety) aims to create safe and attractive environments and designing out crime. Improvements at Langley will improve the safety of the area through promoting speed-reduction and increasing levels of active travel. Though improvements to natural surveillance, the scheme could improve personal security by ‘designing out’ crime.
Slough Local Transport Plan 3 3.41. Slough’s Local Transport Plan 3 contains the following objectives which the options being considered will help to deliver:
To make sustainable transport options accessible to all
To enhance social inclusion and regeneration of deprived areas
To protect and improve personal health
To minimise the noise generated by the transport network, and its impacts
To achieve better links between neighbourhoods and access to the natural environment
To improve the journey experience of transport users across Slough’s transport networks 13 Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
To reduce the number of traffic accidents involving death or injury
To minimise the opportunity for crime, anti-social behaviour and terrorism and maximise personal safety on the transport network
To mitigate the effects of travel and the transport system on the natural environment, heritage and landscape
To ensure that the transport system helps Slough sustain its economic competitiveness and retain its position as an economic hub of the South East.
Problems identified 3.42. The ‘key issues’ for Slough, as identified by the Slough LDF (2006 to 2026) are:
Overcrowding and congestion
The need to improve the image and environment of Slough
Socio-economic characteristics
Shortage of affordable housing and family housing
Skills mismatch
Pockets of deprivation
The need to plan for diversity
Drivers for change 3.43. There are a number of key drivers for change that dictate a need to plan for future trends and developments:
An increased and more diverse population;
Continued employment growth and an imbalance of jobs and labour supply;
Future economic growth could further social and economic inequality with those on higher incomes demanding more living space;
The need for more affordable housing;
If unconstrained, traffic in Slough could increase by 20% between 2005 and 2025;
The town centre could ‘slip down the ranking of regional shopping centres’ unless there are significant improvements to attractiveness; and
External developments, including but not limited to, expansion at Heathrow Airport and the development of Crossrail.
3.44. Within this context of future growth and development, there is a particular need to provide the conditions required to realise the full benefits. It is, therefore, prudent to plan for future potential overcrowding and congestion, enhance the conditions required to ensure the viability of the town centre and key areas, to improve the image of slough and plan for future socio-distributional issues.
Overcrowding and congestion 3.45. Slough’s LTP 3 identified a number of challenges for Slough. Key areas of concern are as follows:
14 Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
Residents rely heavily on cars for their daily travel, even for short journeys, and this adds to traffic congestion and emissions of carbon and reduces the viability of bus services.
Rates of walking and cycling are also relatively low in Slough, especially considering the geographical compactness and urban density of the borough where active travel might be more practical than in areas where towns and neighbourhoods are farther apart.
Congestion in the town can have a detrimental impact on industrial and employment sites.
The Langley Station and Access Improvement scheme would provide an opportunity to improve access to and around the station. Through provision of speed reduction measures and improved pedestrian and cycle infrastructure there is greater potential for users to make journeys by active travel modes with the potential for mode-shift that could reduce the reliance on the private car and related congestion.
Improving access and safety at and around Langley Station would improve the attractiveness of Langley Station, and therefore support the TVBLEP aims of investing in infrastructure that would unlock future opportunities to enhance cross-boundary connectivity.
Viability and vitality of the town centre and key areas 3.46. Although the area around Langley Station is away from Slough town centre, the station will continue to act as a key access point to local businesses at the Langley Business Centre and Waterside Drive Business Park and future development at the Heathrow Express depot. Access to local shopping facilities in Langley will also be improved.
The Langley Station and Access Improvement scheme would improve the station’s function as a point of access between the residential and employment areas in Slough, the wider TVB sub-region, London and Heathrow. Maximising accessibility at Langley Station will support and encourage future development and investment in Slough.
The need to improve the image and environment of Slough 3.47. Public concerns regarding the existing image of Slough are as follows:
Previous consultation2 demonstrated that in general, a poor perception of ‘transport’ in Slough prevails; for all modes. In particular, the LTP3 recognises that facilities for interchanging between buses and rail often do not meet modern standards3. In order to encourage greater uptake of both active and public transport, the conditions at key interchange areas, such as Langley, need to be improved in order to enable efficient interchange between modes and to better enable people to travel between the station and onward destinations, such as local businesses;
Slough ranks poorly in comparative studies for natural environment quality, with a recent study4 ranking the Borough at 350 out of 354. The Borough suffers from congestion, noise and poor air quality which are worsened by the proximity of Heathrow Airport and motorways;
Crime levels are high in the Borough and there is a poor perception of personal security within the public realm. Thames Valley Police reports that the crime rate in Slough over the year to June 2015 (77 reported crimes per 1,000 population) is well above the force average (53 reported crimes per 1,000 population); and
In particular, transport-related crimes are a concern for many residents. These concerns range from worry about items being stolen from cars, cars being stolen or being physically attacked,
2 LTP 2 (2006 to 2011) http://www.slough.gov.uk/documents/LTP2-ch1-8.pdf 3 LTP 3 (2011 to 2026) www.slough.gov.uk/downloads/third -LTP-Core-Strategy.pdf 4 Slough LDF (2006 to 2026) http://www.slough.gov.uk/documents/Adopted_Core_Strategy_16-12-08.pdf 15 Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
insulted or pestered while in a public place. Indeed there have been 57 reported crimes at Langley Station and car park over the three year period from February 2013 to Jan 2016, providing evidence that residents’ worries are not just perceived but reflect real problems.
Socio-distributional issues in Slough 3.48. Slough has a higher than average unemployment rate and there is a requirement to provide a reliable level of accessibility to enable these Slough residents to access employment opportunities.
3.49. Some 14% of residents have a long term disability that can hinder their access to services, including transport. Making transport more accessible for all residents can include measures such as removing obstacles on the pavements, ensuring paved surfaces are well maintained, providing pedestrian crossing facilities and improving information and signage.
The impact of not changing 3.50. Without the introduction of proposed measures, the existing poor facilities at and around Langley Station will remain, leading to a continuation of poor accessibility for all users, traffic dominance and poor perceptions of safety (both road safety and personal safety). Furthermore, the poor quality of existing facilities and accessibility is likely to dampen the future rail demand and associated economic growth benefits that Crossrail is expected to bring.
3.51. Not improving Langley Station would also be a negative signal to investors and industry, discouraging new development and limiting the potential for private sector investment in the area.
3.52. With additional traffic movements related to the HEX depot, along with any future traffic demand driven by Crossrail or wider developments, there will be increased traffic dominance in the area.
3.53. Specific outcomes of a Do Nothing case includes:
The constraints of the existing transport conditions would act as an inhibitor to growth with private sector investment attracted to other areas with better accessibility;
Poor accessibility around the station is likely to encourage people traveling by rail to choose other routes where facilities, access and safety perceptions are better, for example opting to travel further to Slough Station, in order to avoid using Langley Station; and
A reduced growth in travel demand from the above would reduce the impacts predicted from committed infrastructure improvements, namely Crossrail.
The Langley Station and Access Improvement scheme’s public realm enhancements are expected to enhance the accessibility and nature of the area ensuring that the station can realise the full potential of planned development, such as Crossrail. The improvements to the station facilities, including lifts, wider stairs, improved security and improved layout of the forecourt will enhance perceptions and safety at this station, which will become a key gateway to Slough. Improving pedestrian and cycle facilities and reducing traffic speeds will support local and regional objectives of encouraging sustainable travel - especially for short local journeys - and of reducing carbon emissions.
16 Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
Objectives 3.54. The scheme objectives have been defined to address directly the problems discussed earlier in this chapter. They align closely with the established policies and plans of the scheme promoters, the Local Enterprise Partnership and Central Government, most obviously in terms of the Government’s broad goals for transport.
3.55. The desired outcomes from each objective have been considered and are shown in Table 3-2.
Table 3-2 Objectives and desired outcomes
Objectives Desired Outcomes (1) Improve Facilitate / encourage commuter travel to/from Langley station pedestrian Encourage mode shift for journeys to/from the station towards sustainable and access to active travel Langley station Enhance the legibility and visibility of Langley station to residents and commuters in the wider area Improve safety and journey times for pedestrians using the key Station Road / Waterside Drive junction Maximise benefits accruing from rail operator investment into improving the services and passenger facilities at Langley station Transform the area around the station to a less car-dominated environment (2) Improve Improve cycling infrastructure surrounding and within Langley station access for Increase the number of journeys to/from the station undertaken by bicycle cyclists to Langley station Improve the health of rail users via active travel Improve safety for cyclists travelling to and from Langley station Enhance the connectivity for cyclists with key trip generators in the local area, such as East Berkshire College Support uptake of the Cycle Hire Slough scheme in the borough (3) Provide Provide a better layout for improved access to / from the car park area and reconfigured improved taxi and kiss & ride drop off parking Provide additional parking via Access Road / HEX depot arrangements and drop off Provide better access to and from the station for people with disability or facility for reduced mobility Langley Station Reduce instances of vehicle conflicts with other station users (4) Improve the Create a more welcoming environment perception of Reduce reports of criminal or antisocial activity safety and security at and Improve the overall passenger experience of using Langley station around Langley Generate an environment that is more attractive for future, potential investment Station and development in the area
3.56. The highways and public realm improvements, together with improvements to the station facilities and new car parking will all contribute to making Langley Station a more attractive and user- friendly transport node and ensure that the benefits associated with Crossrail’s scheduled semi- fast rail connectivity can be maximised.
Measures for success 3.57. Successful delivery against the scheme objectives will be monitored as part of the post- construction scheme evaluation, details of which are discussed in Chapter 7 (the Management Case) of this report.
3.58. A programme of monitoring will be put in place prior to construction, then again at one-year and five-year milestone post-construction. It is envisaged that monitoring will include ‘before and after’ conditions in relation to: 17 Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
The utilisation of additional cycle parking stands – future usage will be assessed against those assumed in the physical activity assessment in section 4.75;
The number of passengers accessing the station – this will be measured and compared against forecast background growth to determine whether the accessibility improvements have been as beneficial as anticipated;
Car park utilisation – this will be measured to determine whether the assumption there is existing supressed demand is correct; and
Levels of reported crime at Langley Station and its car park - this will be monitored. Whilst some studies show that a reduction in crime of up to 23% can be achieved at public transport facilities through the introduction of additional security, others suggest there may only be a marginal change. Because of the combined benefits of extended CCTV coverage, secure bicycle parking, increased visibility and permanent staff a conservative estimate of a 10% reduction in crime at Langley Station could be anticipated.
3.59. Objectives relating to economic growth through investment in business and housing will be difficult to measure in the short-term, and cannot be directly attributable to this scheme in particular. However, longer term evaluation will seek to monitor economic, employment and housing growth.
Scope 3.60. A detailed scheme description outlining the scope of the scheme is provided in Chapter 2.
Constraints 3.61. A number of potential constraints exist for the scheme and these have been dealt with, or have planned mitigation throughout scheme development:
The construction and operation of the HEX depot - planned to be from 2017 to 2019 – and associated construction HGV movements, may mean that the full benefits of the Langley Station and Access Improvements scheme are not realised until after this period. SBC will work closely with HS2 Ltd to ensure that a Construction Management Plan will be produced to mitigate for the potential disruption caused by the works. The time period for the HEX Depot also aligns with the timescales for the completion of the Crossrail SFA and Network Rail WRLtH works for station and accessibility improvements.
The initial landscaping assessment has identified the need to strategically remove a number of trees on the southern and northern sides of the station access. Where feasible these trees will be relocated to other suitable locations.
The project team have taken every effort to ensure that there are no technical, technological or buildability issues with the scheme design. The design team has recent experience of successfully designing schemes of similar scope in Slough, for example Burnham Station Access and Improvements scheme, which is currently under construction.
Inter-dependencies
Interdependencies in project delivery and risk 3.62. A comprehensive list of risks has been prepared as part of the management case (Chapter 7). The delivery of the Langley Station and Access Improvements scheme is dependent on these risks either not arising or being sufficiently mitigated so that the scheme delivery remains unaffected.
3.63. For the purposes of this section of the Business Case, therefore, it is sufficient to summarise the key areas of risk / dependency, with more detailed supporting information presented in Section 4.
3.64. The key inter-dependencies can be summarised as:
18 Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
Strategic issues: for example, changes in Government transport policy, or change of political will at the local level
Contractual issues: Delay in agreement of contract variation, or in gaining formal ‘sign-off’ from BLTB may delay scheme delivery
Appraisal: changes in appraisal guidance may delay scheme delivery
Costs: changes in the costs of raw materials may affect the outturn costs of the scheme, although this should be adequately covered within the allowance for risk and optimism bias
Consultation: there is the potential for delays to delivery as a result of issues raised during consultation
Design
Construction
3.65. The development of a detailed risk log, and the time already devoted to mitigating some of these risks (e.g. through detailed modelling, appraisal and design work, early stakeholder and public consultation, and environmental assessment), means that the risk to scheme delivery is relatively low. The project team will, however, continue to monitor these risks / inter-dependencies throughout the scheme’s development to ensure the smooth delivery against the programme.
Stakeholders 3.66. The stakeholders being consulted as part of the scheme development are summarised below:
Network Rail
Crossrail (Rail for London)
Great Western Railway
First Berkshire Bus Group
South Bucks District Council
Heathrow Express depot (HS2 Ltd)
TVB LEP
Langley Neighbourhood Forum
Langley St Mary’s Neighbourhood Action group (NAG)
Local schools and nurseries
Local businesses e.g. those on Waterside Drive
Local developers e.g. the Langley Business Park site
Local residents
SBC Planning Policy and Development Management teams
Local user groups e.g. cyclists, walking and disability groups and the Local Access Forum
19 Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
Options
Development of the preferred scheme option 3.67. At the outset of the scheme design a number of options were considered. A brief description of each option concept is presented in Table 3-3.
Table 3-3 Option concepts
Concept Option Description DM Do minimum – retain current As existing, with background growth as a result of arrangements and rely on background increased patronage through Crossrail. growth DS1 Langley station facilities improvement – Rail for London deliver step-free access via a new step-free access (SFA) footbridge DS2 Langley station facilities improvement – As DS1 plus improved linkages to station for pedestrians pedestrian and cycle access and cyclists, including upgrading of Station Road / improvements Waterside Drive junction, public realm improvements around the station, and improved facilities within the station for pedestrians and cyclists. The existing parking area will be reconfigured and additional parking considered on Waterside Drive or the Access Road. DS3 Langley station facilities improvement – As DS2 plus installation of RTPI display (showing onward access improvements plus onward travel travel information in the station vicinity) within the ticket information upgrades office and implementation of a coherent wayfinding system in the immediate station environment. DS4 Langley station facilities improvement – As DS3 but with reconfigured car park and additional car additional car parking provision parking provision via Access Road and HEX depot
3.68. Appendix C contains the Option Assessment Report (OAR) which assesses the various strategic options.
20 Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
4. The Economic Case
Outline approach to assessing value for money 4.1. The proposed methodology for assessing scheme value for money has set out in the Appraisal Specification Report (Appendix D). This methodology, is formed within a WebTAG-compliant framework, but adapted to include other methods taken from the TfL Business Case Development Manual (BCDM). The methodology includes:
Transport modelling – LinSig junction modelling software has been used to assess the impact of the scheme on the highway network.
Benefits appraisal
Highways benefits appraised using WebTAG compliant values for journey purpose, vehicle class split and Values of Time within a bespoke spreadsheet model;
Calculation of benefits arising from the user experience of improved station, public realm and cycling facilities; and
Demand-led increases in rail revenue based on the Passenger Demand Forecasting Handbook.
Derivation of scheme costs:
Scheme costs for the SBC/LEP-funded elements produced by Atkins as a Bill of Quantities based on the scheme designs and using benchmarked values for construction
Spreadsheet analysis of scheme costs, in accordance with WebTAG
Scheme outturn costs for Network Rail/ Rail for London-funded element provided as £4.5m
Scheme assessment and supporting analysis:
Assessment of monetised and non-monetised impacts in terms of the economy, environment, social and public accounts
Supporting analysis to demonstrate impacts in terms of distribution and equity, affordability and financial sustainability, and practicality and public acceptability
Collation of the Appraisal Summary Table (AST), Transport Economic Efficiency (TEE) Table and tables for supporting analysis
4.2. Further details on all aspects of the Value for Money assessment are provided in the sections below.
Options appraised 4.3. The evolution of the Langley Station and Access Improvements scheme was presented in detail as part of the Strategic Case (see the sections on ‘drivers for change’ and ‘options’). The option included in this Business Case is the result of identifying a solution that will deliver substantial benefits at the same time as being affordable.
4.4. The scenarios included in this Business Case, therefore, are:
The Do Minimum, which represents the current arrangements with forecast background growth
21 Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
The Core Scenario, which appraises the impact of the DS3 scenario, as specified in paragraph 3.67)
4.5. As detailed in paragraph 3.33, Network Rail/Rail for London’s step free station improvement element of the Langley Station and Access Improvements scheme has funding already allocated. A truer reflection of the TVB LEP’s funding would be to remove the costs and benefits associated with that element from the Core Scenario calculations. Therefore a further scenario will be presented:
Alternative Scenario, which appraises only the TVB LEP funded elements of the Core Scenario. This will be presented alongside the Core Scenario throughout the TEE, PA, TEE tables
Assumptions
Traffic modelling 4.6. Due to the nature and scale of this scheme, a fully WebTAG compliant model has not been required.
4.7. Forecasts for two years, 2018 and 2028 have been carried out. Transport demand growth has been calculated using TEMPRO 7 (to account for population and employment changes) and general traffic growth forecasts from NTM AF15 (to account for changing costs of travel, changing values of time, or changes in trip lengths). There are currently no development plans in the pipeline within the scheme area which may result in numbers of trips exceeding the capacity of the proposed layout, therefore the use of TEMPRO background growth data is deemed sufficient here.
4.8. The modelling was carried out for AM, inter peak and PM hours.
4.9. The Do Minimum scenario represents the existing highway and station infrastructure, with forecast growth (of road and rail trips included).
4.10. The Do Something Core Scenario considers the impact of signalling improvements at the junction of Station Road/ Waterside Drive/ Station Access Road. These increasing intergreen timings to meet acceptable standards and refreshing all signal equipment at the site.
4.11. Appendix E contains a Modelling and Economics Report detailing the methodology undertaken for the highways elements of the scheme.
Economic appraisal 4.12. Economic benefits of the scheme have been quantified in two stages using spreadsheet modelling. The first of these measures the impact on highway users. The second stage captures and monetises benefits to non-highway users. Both stages of assessment have used the same assumptions regarding appraisal period, values of time, discounting and presentation of outputs in discounted 2010 market prices.
4.13. For the highway benefits, outputs from the LINSIG were provided. These detailed demand and delays in seconds per pcu and total pcu/hrs for each arm and were provided for both modelled years (2018 and 2028) and for three peak hours: AM, inter peak and PM in each year. Benefits were calculated on the assumption being that they are evenly accrued for 253 working days a year. Using this methodology, benefits were calculated for highway users, disaggregated by user type, with separate values for business and non-business users.
4.14. Benefits for non-highway users included assessment of improvements to station facilities and access and urban realm improvements. This element of the assessment also captured revenue impacts resulting from increased demand generated by rail passengers through these improvements.
4.15. Benefits reported include time savings, changes in indirect taxation, station facility improvements, health benefits, urban realm improvements and revenue uplift on the station and car parking.
22 Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
These benefits were all monetised to give a Present Value of Benefit (PVB) as well as contributing to the Present Value of Cost (PVC) through revenue generation which will offset elements of the costs.
Appraisal summary table 4.16. The quantitative and qualitative assessments of impacts outlined in the above sections have been recorded in the Appraisal Summary Table (AST) provided in Appendix F.
Value for Money statement
Scheme appraisal
Assessment of environmental impacts 4.17. For each of the seven environmental aspects, an appraisal of the scheme has been undertaken to identify whether significant beneficial or adverse environmental effects are likely to arise. Where it is considered that there is a reasonable likelihood that significant environmental effects could arise further assessment would be recommended. Environmental aspects that are unlikely to be affected either beneficially or adversely would not be considered further.
4.18. The environmental impacts for the Core Scenario and Alternative Scenario are considered to be identical.
Noise 4.19. The noise aspect considers the effects of the highway changes on the noise levels and, where appropriate, any consequential annoyance within the vicinity of the scheme.
4.20. The scheme is not expected to significantly affect traffic flow in the vicinity of the station, therefore noise levels are not likely to be impacted. As traffic volume and speed is already low, any noise level reductions as a result of speed restrictions are considered to be negligible. Therefore, the noise aspect has been scoped out of further assessment.
4.21. Traffic noise impacts on the local road network as a result of the scheme are considered neutral.
Local air quality 4.22. In many urban areas, including Langley and the wider Slough area, one of the main sources of air pollution is road traffic. Emissions from motor vehicle exhausts contain a number of pollutants including oxides of nitrogen, carbon monoxide, hydrocarbons and particulate matter.
4.23. The scheme is not anticipated to influence significantly the volume of traffic flow, therefore it is not likely to impact local air quality. Although increasing Langley Station patronage and improving NMU access to the station may encourage modal shift to more sustainable travel, the impact on local air quality will probably be negligible. .
4.24. The anticipated impact on air quality is therefore considered to be neutral.
Landscape 4.25. Landscape in WebTAG is defined as a result of the physical and cultural characteristics of the land itself. As the Langley Station and Access Improvements scheme is entirely located within an urban townscape, all landscape issues are considered in the Townscape aspect. The landscape aspect has been scoped out of further assessment.
4.26. The overall impact on landscape has therefore been appraised as neutral.
Townscape 4.27. The definition of townscape is outlined within the WebTAG guidance as the physical and social characteristics of the built and non-built urban environment.
4.28. The improvement of security through better visibility of access paths will necessitate strategic clearance of existing trees and vegetation adjacent to Station Road. The detrimental effect of the
23 Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
clearance will be balanced by new planting, which will include semi-native low planting, ornamental planting, and trees.
4.29. The creation of a new pocket park at the junction of Station Road/ Alderbury Road is likely to enhance human interaction, contribute to the character of the townscape, and improve visual amenity.
4.30. The overall impact on townscape is therefore considered to be slightly positive.
Historic environment 4.31. Five Grade II listed buildings5 are located approximately 500 meters to the south of Langley Station. These buildings are unlikely to be affected by the scheme, as they will be no inter- visibility between them and the proposed interventions. It is also unlikely that any surviving archaeological remains from previous features would be disturbed as these are likely to have been removed previously.
4.32. The potential for affecting the historic environment is therefore low and the historic environment has therefore been scoped out for further assessment.
4.33. In accordance with PPG15, Local Authorities may draw up a list of buildings of local importance. These do not carry the same protection as those with statutory listing, however, a Council may wish to progress works with care and additional requirements. Langley Station is one such locally listed building. No reconstruction work to the existing building frontage will take place, simply a repainting of the building.
4.34. The overall impact on historic environment has therefore been appraised as neutral.
Biodiversity / Ecology 4.35. The biodiversity aspect considers the effects of the Langley Station and Access Improvements scheme on biodiversity and earth heritage (geological) features.
4.36. The scheme will necessitate the clearance of a number of trees and vegetation on Station Road, but its impacts will be mitigated by new planting. In terms of ecological features within the site, there are none that would be affected by the scheme.
4.37. Overall it is expected that the impact on biodiversity will be neutral.
Water environment 4.38. The water environment aspect considers the effects of the Langley Station and Access Improvements scheme on surface and ground water quality, and flood risk.
4.39. The Grand Union Canal Slough Arm runs approximately 200 meters north of Langley Station. The majority of the scheme, including Langley Station, is located in an area which is not designated by the Environment Agency as at risk from flooding. However, there are some areas north of the station that is designated as Flood Zones 2 or 3. This means that each year, Flood Zone 2 and 3 have a 0.1%-1% and 1% or greater chance of happening flooding each year respectively. The scheme lies within an Environment Agency Groundwater source protection zone 3, and has been designated as Major Aquifer High in Groundwater Vulnerability Zone. Appendix J shows plans from the Environment Agency of the areas at risk of flooding, groundwater protection zones and groundwater Vulnerability Zones.
4.40. The scheme is unlikely to increase flood risk or significantly affect water features. The overall impact on the water environment has therefore been appraised as neutral.
Assessment of economic impacts 4.41. The economic impacts of the scheme have been assessed, considering transport users, operators, indirect taxation, costs to SBC and funding required from the LTB.
4.42. User benefits assessed include journey time savings, station facility and access improvements, health benefits and urban realm improvements.
5 Which comprise of: the Harrow Public House, Langley Hall, and three walls adjoining Langley Hall. 24 Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
4.43. Non-user benefits include revenue generation for both the SBC-operated car parking (on-street) and on rail services themselves. The existing rail franchise agreement with Great Western Rail ceases in 2019, after which Langley Station will be solely used by Crossrail services operated by MTR as part of the Transport for London Network. As in the Business Case for Crossrail, revenue (from 2019 onwards) is therefore included in the Present Value Costs. In the single year of operation prior to refranchising the revenue has been treated as a private operator benefit.
4.44. The scheme is composed of elements of variation to the highway network, which would normally be assessed over a 60 year period, but is primarily focussed on improvements to the station and surrounding area with station facility and urban realm improvements. These are more usually assessed over a shorter period as asset lives are in some cases more limited and longer term forecasts become more uncertain. The appraisal period for both benefits and costs of the scheme has therefore been set at 15 years for all elements.
4.45. As mentioned in paragraph 4.4 and 4.5, the economic impacts for the Core Scenario and the Alternative Scenario (Core scenario minus the SFA elements) will be presented side by side wherever they differ.
Highway User Impacts 4.46. The impacts of the scheme on journey times for highway users for car users have been assessed using a spreadsheet model assessment based upon the delay outputs of the LinSig model of the Station Road / Waterside Drive junction. The LinSig model does not include any new pedestrian stages at this junction, including at the station access road.
4.47. The assessment has been performed over AM, IP and PM peak.
4.48. The results of this assessment indicate that the highway benefits delivered by the scheme, in terms of journey time savings, is of £0.184 million. The transport economic efficiency table (TEE Table) with further details can be found in the sections below.
Station User Impacts 4.49. A series of assessments have been undertaken to quantify the benefits to station users and transport operators of the various improvements which will be implemented by the scheme. All of these benefits have been calculated on the basis of 2015 demand levels and the calculation of benefits are described in more detail in the following sections.
4.50. Rail passenger demand has been based on station surveys undertaken for Slough Station Travel Planning, which included Langley Station. These surveys captured 24-hour weekday passenger flows (entries) at the station. Treatment of this base data is summarised as follows:
Annualisation factor, 253, was considered reasonable as an approximation of annual baseline demand including the possibility that seasonal or daily variations in typical weekday demand would likely be more than offset by weekend demand
Commuter to Business/Leisure trip split of 75%:25%
For security benefits purposes only, only trips made between 5pm and 8am have been considered
4.51. As noted previously, demand growth due to Crossrail has not been included in this assessment. Passenger demand data and segmentation into user types are summarised in Table 4-1.
Table 4-1 Passenger demand
Element Passenger numbers Daily entries (2015) 2,156 Entries while dark 990 Entries while dark - Annualised 250,470 Commuters 187,853 Business/Leisure 62,618
25 Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
4.52. From 2015 demand levels, a 4.5%p.a. exogenous demand growth6 is applied to arrive at the scheme opening year 2018 levels; with constant 4.5%p.a. growth continuing over the 15 year appraisal period, in line with recorded levels of trip growth.
4.53. Fare values applying to commuter and business/leisure users are based on peak and off-peak standard fares to main destinations from Langley Station, weighted by Census 2011 journey to work origin-destination proportions. These are summarised in Table 4-2.
Table 4-2 Peak and off-peak standard fares, by destination
Destination JTW % Peak price Off-peak London 54.5% £15.10 £8.80
Windsor and 6.1% £7.50 £3.70 Maidenhead Slough 5.5% £5.00 £3.20
Reading 4.2% £18.10 £10.00
Ealing 4.0% £10.00 £5.60
Hillingdon 3.9% £6.90 £4.10
Wycombe 1.6% £11.30 £6.20
Hounslow 1.3% £8.10 £4.80
South Bucks 1.3% £8.50 £3.70
Runnymede 0.6% £15.60 £9.10
West Berkshire 0.5% £18.30 £13.00
Spelthorne 0.5% £10.80 £6.60
Wokingham 0.5% £21.60 £13.00 Oxford 0.3% £23.30 £15.90
4.54. Potential impacts of Crossrail on demand growth at Langley Station have indicated demand growth around 30%, which would affect the numbers of users benefiting from this scheme. However, it has not been possible to verify the demand growth forecasts from the Crossrail analysis and so these trips have been excluded from the assessment to avoid a possible distortion to benefits.
Station facilities improvements 4.55. In addition to measuring transport economic efficiency of major projects, it is essential to consider a proposed scheme’s potential impacts on the social and environmental well-being of the scheme’s users and the local area. The broad principles and approaches to quantifying these impacts are similar to the concepts of measuring the values of changes in journey quality, ambience, pedestrian and urban realm improvements,
6 Exogenous demand growth derived from the Estimates of Station Usage Time Series (1997-98 to 2014-15) published by the Office of Rail and Road (December 2015): www.orr.gov.uk/statistics/published- stats/station-usage-estimates 26 Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
4.56. Benefits arising from improved station facilities broadly fall into one of two strands:
Benefits arising from station facilities that improve levels of ‘security’, using factors given in the Passenger Demand Forecasting Handbook (PDFH7) – a rail-industry standard guidance document held by the Association of Train Operating Companies
Benefits attributed to the values that existing and new transport users may place on better amenities and facilities, using TfL’s Business Case Development Manual (BCDM) – a rigorous framework for estimating a comprehensive range of impacts and benefits to ensure consistency of appraisal
4.57. The relevant station facilities upgrades on which this part of the appraisal is based are improvements to:
CCTV
Accessibility and visibility
Cycle parking facilities
Platform seating and shelters
Step free access at street level throughout the station)
Generally improved station appearance
4.58. Benefits have been evaluated over the appraisal period and, where relevant, these benefits have been applied only to portions of the existing users (e.g. those travelling during hours of darkness, or those requiring step free access). Further descriptions of each of the two strands are given in the following sections.
Station facilities – Security 4.59. The PDFH incorporates over 20 years of research on effects of a full range of factors such as service quality and station environment on changes in rail demand. User benefits from upgraded station security are factored as demand uplifts (a reflection of suppressed demand, for example among people who would travel, but choose not to because of security concerns). Passenger demand is then monetised through changes in rail fare revenue.
4.60. In the case of the Langley Station and Access Improvements scheme, we have considered only the effects that changes in security at the station might have on underlying passenger demand during the evening and overnight hours – the time periods when it was considered passengers might be most sensitive to personal safety concerns when deciding on their travel options.
4.61. Baseline rail passenger demand has been calculated by annualising passenger entry data, collected over a 24-hour period. For this appraisal the assumed evening and overnight hours are 5pm-8am. Percentage growth rates for forecasting changes in demand are given in PDFH Appendix B and the quantitative appraisal of the scheme impacts is summarised in Table 4-3 and Table 4-4.
7 http://www.atoc.org/about-atoc/commercial-activities/passenger-demand-forecasting-council/ 27 Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
Table 4-3 Demand uplift
Commuter Business/ Description of passenger leisure Benefit Description of current conditions anticipated future demand passenger category conditions (%) demand (%) The scheme The station buildings and access routes provides: are not visible from Station Road. This is -CCTV improvements; partly due to overgrown landscaping -Secure cycle parking; Security / around the forecourt and insufficient -Safer access road; +3% +5.1% CCTV lighting. -Visibility from Station Road is improved; Cycle parking not completely covered by -Passenger drop off CCTV. area and taxi bays, Partial CCTV coverage. providing natural surveillance.
4.62. These uplifts in demand would suggest that approximately 15 additional people will use the station in the Do Something scenario in the peak hour. Even if, by a conservative estimate, all of these people transferred to rail from private car travel the impact on the road network performance would be insignificant.
Table 4-4 Security benefits as new fare revenue
Total Annual Benefit (£) First Total (£) 15 year appraisal period Year of Scheme Security benefits as new £95,000 £1,955,000 fare revenue Benefits have been rounded to the nearest £500; opening year 2018, in 2010 prices, discounted to 2010
4.63. These security derived benefits for the Core Scenario and Alternative Scenario are considered identical.
Station facilities – Amenities 4.64. Valuations of station and cycling facilities benefits are based on TfL’s BCDM, which attributes monetary values to facilities of varying levels of quality and provision. TfL’s BCDM is based on extensive market research and an ongoing continuing programme of extensive mystery shopper surveys of transport users to determine ‘willingness to pay’ values for a full range of features and facilities forming transport infrastructure across all modes.
4.65. Noting that TfL’s BCDM values are based on London-weighted values of time and presented as factor values, all rail and cycle facilities values considered for this appraisal have been reduced so that they are now weighted to DfT’s values of business and non-business time. TfL prepares business cases in factor costs, rather than the market price unit of account more usually used in DfT business cases. Uprating of the values from BCDM by a factor of 1.19 reflects general taxation in order to arrive at ‘market price’ values – consistent with the rest of the economic appraisal.
4.66. Following BCDM guidance and values, the following elements of the Langley Station and Access Improvements scheme are considered to have an impact on transport users and the general public. Table 4-5 and Table 4-6 show the station and cycling facilities we have considered for this scheme; they describe the anticipated changes in quality or provision and the calculated net benefits, given in pence per journey.
28 Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
Table 4-5 Benefit values of changes in rail facilities (pence/journey)8
Change in value Description of Benefit Description of current (pence/journey), factored to anticipated future category conditions DfT values, in 2014 market conditions prices No step free access in Step free access 6.79 station throughout station Rail CCTV in the station CCTV in the station, improvements monitored some of the monitored all of the 0.24 time and recorded time and recorded Visual Outside of station in Outside of station in 5.04 amenity poor state of repair good state of repair
Table 4-6 Benefit values of changes in cycling facilities (pence/journey)9
Change in value Benefit Description of current Description of anticipated (pence/journey), factored to category conditions future conditions DfT values, in 2014 market prices Cycle racks located in Cycle racks located in busy quiet location with few location with many people 3.50 people passing passing Cycle parking area in Cycle parking area in excellent Cycle reasonable condition condition (in good repair, clean 4.48 Parking (patches of dirt and and litter free) and near to some litter) cycle servicing shop No surveillance Dedicated surveillance cameras or other cameras covering the cycle 5.25 security parking
4.67. To calculate rail facilities benefits, we have applied the ‘rule of half’ approximation using the baseline rail passenger numbers and the forecast demand uplift. In other words, current rail passengers who use Langley Station will benefit fully from the station facilities upgrades. New passengers drawn to Langley Station in future will gain some benefit from using the upgraded facilities, but not to the same degree. Hence we approximate the benefit by the ‘rule of half’, applied to new passengers only.
4.68. Demand for calculating baseline and future cycling benefits have been derived using assumptions on the usage of existing and new cycle parking facilities. Site observations suggest that existing cycle stands are well used. Therefore, each of the 30 existing cycle parking spaces is assumed to provide benefit to one person per day, while demand for the new spaces is based on forecast rail passenger demand growth.
4.69. An annualisation factor of 253 working days per year was initially applied in this case; however acknowledging that factors such as annual leave and weather could reduce individual demand day to day, further sensitivity tests of benefit values in the first year and 15-year appraisal period have been based on reduced annualisation factors of 220 days and 200 days. Comparison of benefits values from these annualisation factors are presented Table 4-7 and suggest that the differences are relatively small in context of the wider business case. For assurance, the final AST has been based on the 220 days’ calculation for cycling facilities improvements.
4.70. The facilities benefits, including both station and cycle facilities, based on TfL’s BCDM methodology are summarised in Table 4-8.
8 Source: TfL BCDM Table E-27. 9 Source: TfL BCDM Table E-29. 29 Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
Table 4-7 Cycle facilities benefits sensitivity tests (values in £ PV)
Annualisation factor First year benefit (£)1 Total benefit (£) 15 year appraisal period1 253 days £845 £15,429
220 days £735 £13,417
200 days £668 £12,197
1. Benefits opening year 2018, 2010 prices, discounted to 2010.
Table 4-8 Facilities benefits output - annual benefits as a result of rail and cycling facilities improvements to the pedestrian environment (values in £ PV)
Core Scenario Alternative Scenario Total (£) Total (£) 15 year appraisal 15 year appraisal period1 period1 Station facilities Station facilities improved by £550,11 improvements SFA scheme only Cycling facilities £13,417 £13,417 improvements 1. Benefits in opening year 2018, 2010 prices, discounted to 2010. 2. Annualisation factor=220 days.
World Health Organisation (WHO) HEAT assessment 4.71. The WHO’s Health Economic Assessment Tool (HEAT) is an online tool for estimating the economic values of health benefits of cycling. The tool estimates benefits based on an estimate of reduced mortality using the UK value of statistical life. This is essentially an estimate of the value of long term health benefits of enabling and encouraging cycling, which has been applied as a physical activity benefits under social impacts.
4.72. Many of the HEAT model parameters are embedded in the tool, but the assumptions and variables specific to this scheme are summarised below.
4.73. In estimating the health benefits that new facilities could bring, the assessment only takes account of new users, therefore this assessment has been based on the total number of new cycle stands proposed and their average forecast usage levels within the 15-year appraisal period. Therefore the health benefits are calculated for an average of 19 cyclists who would be ‘new’ to cycling.
4.74. Acknowledging the proximity of nearby rail stations in this location, the average cycling distance is estimated at 2km per journey. With the assumption of two journeys per person per day (i.e. to/from the station), the average cycling distance per person per day is considered to be 4km.
4.75. Based on these assumptions, sensitivity outputs in relation to annualisation factors following the methodology applied for cycling facilities benefits are summarised in Table 4-9, for information. For assurance, the final AST has been based on the 220 days’ calculation. In 2010 prices and discounted to 2010, the HEAT assessment presents a benefit of £0.11million PV.
Table 4-9 HEAT cycling benefits sensitivity tests
First year benefit (£)1 Total benefit (£) 15 year appraisal Annualisation factor period1 253 days £13,000 £191,000
220 days £11,000 £166,000
200 days £10,000 £151,000
1. 2016 benefits values as calculated on the HEAT tool (unadjusted, and for information only)
30 Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
4.76. The HEAT benefits for the Core Scenario and Alternative Scenario are considered identical.
Public realm benefits 4.77. A primary aim of this scheme was to improve the quality of public realm at and around the entrance to Langley Station. Neither WebTAG nor PDFH provide measures capable of capturing and monetising improvements of this type. Therefore TfL’s Valuing Urban Realm Toolkit (VURT) has been used as an alternative source of valuation.
4.78. In order to assess the potential quantum of benefit that may be generated as a result of public realm improvements, the Pedestrian Environment Review System (PERS) developed by the Transport Research Laboratory (TRL) was used to assess the potential levels of improvements and these were quantified using the Valuing the Urban Real Toolkit (VURT), developed by Transport for London (TfL) in order to assess the monetary benefit over the assessment period.
4.79. It has been recognised in this analysis that the values of benefits given in TfL’s Business Case Development Manual (BCDM) are in line with the higher values of time for London transport users compared to the values given in WebTAG. A downward adjustment in benefits has therefore been made to bring them into line with DfT’s nationwide average used in WebTAG.
4.80. PERS provides a framework for assessing pedestrian provision in an urban environment. A PERS review may be defined as ‘a systematic process designed to assess the quality of the pedestrian environment within a framework that promotes objectivity’. PERS has been used to evaluate provision for pedestrians in the study area based on on-site conditions observed in May 2016 and it has also been used to assess the potential improvements to pedestrian provision based on the proposals for upgrades adjacent to Langley Station. The level of improvement can be quantified using the VURT. Appendix G contains a technical note detailing the full PERS audit, its methodology, assumptions and results.
4.81. The assessments were conducted for existing conditions on site and for proposed scenario conditions based on drawing 5150449-ATK-HGN-ZZ-DR-D-1002-P5. The links assessed are shown in Figure 4-1 and the same links were assessed in both existing and proposed conditions.
Figure 4-1 PERS link assessment
4.82. The VURT converts any change in PERS score from existing to proposed conditions into a monetary value based on robust, research derived Willingness to Pay values. The monetary calculation assesses the cumulative benefits to all pedestrians and thus counts of current
31 Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
pedestrian activity, along with assumptions in the growth in pedestrian activity, are used to undertake the assessment. It takes the form of an Excel-based spreadsheet. The Technical Note in Appendix G contains the assumptions used in the calculation of benefits from the VURT.
4.83. The total annual benefit predicted as a result of improvements to the pedestrian environment and based on the stated assumptions would be £307,560 (in 2009 factor prices) over the Core Scenario scheme element’s 15 year lifetime. Links 2 and 3 are where the most significant footfall and pedestrian improvements are likely to be.
4.84. Benefits for this appraisal have been uprated to the opening year, 2018, including market price adjustment, rebasing to 2010 prices and discounted to 2010 resulting in a benefit of £348,539 PV.
4.85. The public realm benefits for the Core Scenario and Alternative Scenario are considered identical.
Car parking revenue 4.86. The scheme does not accommodate any changes in station car park capacity. However, informal parking on the station access road will be prohibited under the proposed scheme, and this will unlock potential for the on-street pay-and-display bays on Waterside Drive to be used instead. These bays are currently underused and will likely generate more revenue in future through better access to this area and better signage and information on hours of use.
4.87. In order to quantify future revenue from the increased usage of Waterside Drive road parking, the calculation has been based on the following assumptions and method:
Occupancy / usage of Waterside Drive: based on site observations, the current parking bays are underused (30% occupancy)
However, as a result of increased rail passenger demand and parking restriction on Access Road, it is assumed that Waterside Drive parking spaces will be fully used. Daily revenue per space is based on a car park daily charge of £4.58 excluding VAT
DfT's market price uplift of 119%, leads to revenue of £5.45 per space per day (in 2016 market prices)
Annualisation factor: 253 - typical assumption of number of working days per year
4.88. The public realm benefits for the Core Scenario and Alternative Scenario are considered identical.
Investment and maintenance costs 4.89. The costs of implementation of each phase of the scheme have been assessed.
4.90. The Core Scenario costs are inclusive:
Station facility upgrades (provided directly by Network Rail inclusive of management, construction, risk and inflation)
Adjustments to traffic signals, signing and car park layout and access
Landscape and NMU access improvements
Statutory undertakers costs
Preparation and supervision
Ongoing operating and maintenance
4.91. In addition, an allowance has been made for risk (discussed below), and an uplift of 25% for optimism bias. Table 4-10 details how the level of optimism bias has been calculated by mitigating against contributory factors. 32 Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
Table 4-10 Optimism bias mitigation
Remaining Capital Mitigation Contributory factor Mitigation Optimism Expenditure Factor Bias
Late Contractor No contractor involvment Involvement in Design 3% 0% to date 3%
Dispute and Claims Contract risk dealt will be dealt with at tender stage
Procurement Occurred 21% 0% 21%
No land contamination, nor signicant obstacles to Environmental impact 22% 75% be overcome 6%
Significant work undertaken to evaluate the site. Standard engineering scheme. Expereince in delivering such
Project Specific Design Complexity 18% 60% infrastructure. 7%
Output specification Inadequacy of the Business clearly defined. Facilities Case 10% 70% fully costed and itemised 3% ific Topo surveys and stats enquiries undertaken in advance of scheme
Client spec Poor Project Intelligence 7% 50% design. 4%
No planning permision required. Stakeholders are aware and broadly accepting. Public Public relations 9% 25% consultation will be held. 7%
Detailed ground investigations have not been undertaken. Preliminary survey of environmental databases
Environment Site Characteristics 3% 20% suggest no issues. 2%
Funding already allocated to LTB.
External influences Economic 7% 50% 4%
Total 100% 56%
Upper Bound of Optimism Bias 44% 25%
QRA 4.92. A risk register has been compiled following discussions with the client and the design team and containing all risks of potential overspend and delay which have been identified for the SBC (LEP funded) parts of the scheme and is contained in Appendix H. In line with WebTAG Unit A1.2 guidance on smaller schemes, the implications and likelihood of each risk have been described and a mitigation plan (with actions) formulated. A minimum, most likely and maximum cost have
33 Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
been allocated. The central value (most likely) multiplied by the residual probability (after mitigation) for each risk has been summed and a total risk.
4.93. The risk value used for the economic appraisal is £167k.
Risk for the Network Rail/ Rail for London funded aspects of the scheme have been given directly within the total scheme cost. Any cost overrun for those aspects will be managed by Network Rail and Rail for London, with no expectancy for TVB LEP or SBC to provide further funding.
Accidents 4.94. Due to the scale and nature of the scheme, a full accident appraisal has not been carried out.
4.95. The lowering of the speed limit (to 20mph in the area around the station), the proposed footway and cycleway improvements and the increased number of formal pedestrian crossings, is likely to result in an improved level of safety for vulnerable road users.
4.96. Overall it is expected that the impact of the scheme on safety will be slightly positive.
4.97. The impact on accidents for the Core Scenario and Alternative Scenario are considered identical.
Transport Economic Efficiency (TEE) 4.98. Economic impacts from the proposed scheme are measured in terms of monetised benefits and costs, based on changes in travel times, user charges and fares/revenues. The benefits to users and transport providers are presented in the Transport Economic Efficiency (TEE) table. The TEE table for the Langley Station Access Improvement scheme Core Scenario are shown in Table 4- 11 (all presented in units of £000s at 2010 market prices and values).
4.99. The TEE remains identical for the Alternative Scenario.
4.100. The whole 15 years of anticipated increase in revenue is included in in the TEE table in the ‘revenue’ line under the Private Sector Provider Impacts. However, only the first year of revenue (that which is taken pre-refranchising) is retained by the operator. For the remaining 14 years post-refranchising, the value of revenue is reprovided to Central Government and is shown in the TEE table in the ‘grant/subsidy’ line.
34 Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
Table 4-11 Transport Economic Efficiency (£000s) – Core Scenario
Consumer - Commuting user benefits All Modes Road Rail Travel Time 43 43 - Vehicle operating costs - - - User charges - - - During Construction & Maintenance - - - NET CONSUMER - COMMUTING BENEFITS 43 (1a) 43 -
Consumer - Other user benefits All Modes Road Rail Travel Time 91 91 - Vehicle operating costs - - - User charges - - - During Construction & Maintenance - - - NET CONSUMER - OTHER BENEFITS 91 (1b) 91 -
Business All Modes Road Personal Road Freight Rail Personal Rail Freight Travel Time 50 3 46 - - Vehicle operating costs - - - - - User charges - - - - - During Construction & Maintenance - - - - - Subtotal 50 (2) 3 46 - -
Private Sector Provider Impacts All Modes Road Rail Revenue 1,955 - 1,955 Operating costs - - - Investment costs - - - Grant/subsidy -1,860 - -1,860 Subtotal 95 (3) - 95
Other business Impacts Developer contributions - (4) - - 144 (5) = (2) +
NET BUSINESS IMPACT (3) + (4)
TOTAL Present Value of Transport Economic (6) = (1a)+ 279 Efficiency Benefits (TEE) (1b) + (5)
35 Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
Public accounts (PA) 4.101. Table 4-12 presents the Public Accounts for the Langley Station and Access Improvements scheme.
4.102. In the PA table the issue of rail revenue generated by increased rail demand has been dealt with by treating it as a cost. In this instance, revenue made out of ticket sales will be returned to the central government in the form of grant/subsidy payments. The net impact for central government (and for the Broad Transport Budget) is therefore in effect a positive gain.
Table 4-12 Public Accounts (£000s) – Core Scenario and Alternative Scenario
Core Scenario Alternative Scenario Local Government ALL ALL Road Rail Road Rail Funding MODES MODES Revenue -319 -319 - -319 -319 - Operating Costs 8 8 - 8 8 - Investment Costs 1,265 1,265 - 1,265 1,265 - Developer ------Contributions Grant/Subsidy ------Payments NET IMPACT 955 955 - 955 955 -
Central Government Funding: Transport Revenue ------Operating costs ------Investment costs 3,657 - 3,657 - - - Developer ------
Contributions Grant/Subsidy -1,860 - -1,860 -1,860 -1,860 -
Payments NET IMPACT 1,797 - - -1,860 - -
Central Government Funding: Non- Transport
Indirect Tax 432 - 432 432 432 - Revenues
TOTALS Broad Transport 2,752 - - -905 - -
Budget Wider Public 432 - - 432 - -
Finances
36 Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
Assessment of social impacts
User benefits 4.103. The User Benefits assessment examines the number of residents within the assessment area that are likely to experience a user benefit or disbenefit as a result of the scheme. It is also important to understand the value of benefit and disbenefit the population in each income quintile are likely to experience as a result of the scheme. Aggregating this data across the income quintiles identifies whether the value of benefits and disbenefits are proportionately distributed across the five income quintiles.
4.104. There are overall net benefits as a result of the scheme and these are evenly distributed across all social classes. Overall, a small disparity in income is observed in the vicinity of Langley Station. Some areas to the west and east of the station are ranked amongst the top quintile, indicating that they are within the top 20% of least deprived areas nationally. There is however, also a pocket of residents who are in the bottom quintile of income nationally to the south of Langley Station. Further details on the impacts of the scheme on the different social groups are found below.
4.105. Overall, it was found that the Langley Station and Access Improvements scheme had a slight beneficial impact.
4.106. The impact on accidents for the Core Scenario and Alternative Scenario are considered identical.
Physical Activity 4.107. Currently there are three cycle parking areas providing 30 cycle parking spaces in total, all of which are located in the station forecourt on the north side of the railway. The quality of cycle parking is good, however 10 of the parking spaces do not provide covered shelter.
4.108. The Langley Station Travel Plan, based on the site visit undertaken as part of the project, suggests that the cycle parking spaces are well, but not over used. The provided cycle stands allow for secure parking, however CCTV surveillance is not directed at the cycle parking. The scheme includes additional new parking spaces, which better accommodate the future demand.
4.109. Cycle Hire and Hub Slough, a public bike hire scheme with nine docking stations across Slough, has two docking stations in the vicinity of Langley station; one is located at Harrow Market and one at Trelawney Avenue (each of them having 11 docking points). As part of the scheme, it is proposed to create a new Cycle Hub in the Station forecourt for approximately 20 bikes, which is likely to increase the usage of the scheme due to increased convenience.
4.110. In line with the town’s growth and regeneration plans and the commencing of Crossrail services in the future, an increase in sustainable mode share is expected.
4.111. Whilst a qualitative impact on physical activity could be adjudged to be positive beneficial, it is not recorded in the AST as monetised impacts have been included resulting from the HEAT assessment (see section 4.71).
4.112. The impact on physical activity for the Core Scenario and Alternative Scenario are considered identical.
Journey quality 4.113. Journey quality is a measure of the real and perceived physical and social environment experienced while travelling. The factors that are considered within journey quality are an important influence on people when choosing a mode and method of travel.
4.114. Journey quality impacts cover a wide range of indicators and can be sub-divided into three categories:
Traveller care – based on the general transport environment and facilities;
37 Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
Traveller views – the visual amenity provided by the site and impact on the surrounding visual environment; and
Traveller stress – drawing on the perception of safety, security and confusion over onward travel or route choice.
4.115. Several indicators of journey quality have been covered elsewhere in this assessment and it is important to ensure these are not double-counted:
A monetised benefit has been calculated for pedestrians enjoying improved public realm, station facility upgrades, including increased security and improved station access.
Cycle users having increased parking capacity with greater security is included within the Economic Appraisal section earlier in this Chapter; and
Qualitative assessments of impact on traveller safety and security are considered below in paragraphs 4.117 to 4.122.
Whilst a qualitative impact on journey quality could be adjudged to be positive beneficial, it is not recorded in the AST as monetised impacts have been included resulting from the VURT and HEAT assessment (see paragraphs 4.71 to 4.76).
4.116. The impact on journey quality for the Core Scenario and Alternative Scenario are considered identical.
Security 4.117. Langley Station currently suffers from the perception that it is insecure for users. The high rate of recorded criminal acts (57 incidents in the three years to January 2016) on the station, forecourt and car parks shows that security is less than ideal.
4.118. Perceived high levels of bicycle theft are seen to be a result of insufficient secure cycle parking and are not tempered by CCTV or visibility from the station buildings.
4.119. Furthermore, incidents of antisocial behaviour, assault and theft from persons indicate that the station and the forecourt are unsafe.
4.120. Security will be improved by improving the provisions of CCTV, and by improving inter-visibility in the station’s access paths through clearing some of the existing vegetation along Station Road.
4.121. The overall impact on security has therefore been appraised as a moderate positive benefit.
4.122. The impact on security for the Core Scenario and Alternative Scenario are considered identical.
Accessibility 4.123. Langley station has good accessibility by foot and bicycle, with main areas of population to the south of Langley station within reasonable distance. The road network near the Station is in good quality and not congested for long periods, but demand at the station car park (on most days the station is close to, or at capacity by 10am) suggest that the number of spaces are inadequate.
4.124. There is no step-free access to platforms 2 and 3 at present and the footway gradient on the north-west entrance to the car park does not comply.
4.125. As a result of the scheme, accessibility will be improved for most users. Pedestrian and cyclist accessibility will be improved with footway and cycleway improvements, traffic calming and improved public realm throughout the area. Access for disabled users, those with buggies or carrying luggage will be improved by the provision of step-free access to platforms 2 and 3 of the station.
4.126. The overall impact on accessibility has therefore been appraised as a moderate positive benefit for the Core Scenario.
38 Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
4.127. For the Alternative Scenario, removing the step-free access provided by the SFA elements, the impact on accessibility is appraised as a slight positive benefit.
Severance 4.128. There are small pockets of no car households in the proximity to the routes that are improved by the scheme, and so some of these groups may experience reduced severance. There are also pockets of concentration of older and under 16s people, as well as of people with disabilities who are likely to benefit from the station access improvements. The presence of black and ethnic minorities (BMEs) are within the top quintile nationally to the south of Langley Station, representing a very diverse population.
4.129. No significant traffic volume change is expected as a result of the scheme. The scheme will improve non-motorized-users movement conditions, by providing new crossings, drop kerb accesses, step-free access to platforms, footway improvements, shared use cycleways and new cycle parking spaces, and through traffic calming measures in the vicinity of the station (20mph zone, speed cushions).
4.130. Improved walking and cycling conditions in the vicinity of the station will impact beneficially vulnerable groups’ (older people, under 16s, no car households, people with disabilities, and ethnic minorities) ability to access attractors. The traffic calming measures will also decrease severance in the area.
4.131. The overall assessment on severance has therefore been considered to be moderate positive.
4.132. For the Alternative Scenario, removing the step-free access provided by the SFA elements, the impact on severance is appraised as a slight positive benefit.
Analysis of Monetised Costs and Benefits (AMCB) 4.133. Table 4-13 presents the AMCB table for the Langley Station Access and Improvements scheme Core Scenario and Alternative Scenario. This sums up all of the monetised benefits and costs of the scheme.
4.134. Due to the way that post-refranchising revenue has been treated as a positive cost rather than a benefit, Present Value Cost (PVC) is presented as a negative cost.
4.135. The implication of this is that the standard methodology of generating a BCR by dividing Present Value Benefits (PVB) by PVC is not possible and does not present a true reflection of the scheme’s cost-benefit.
4.136. The Core Scenario shows a BCR of 0.31 which is classed as providing Very Poor Value for Money. However, by far the main component of the investment cost of the Core Scenario scheme reflects the commitment to provide full step-free access within the station with the Step Free Access element of the station improvement. Whilst this element provides step-free access to the platform from the forecourt, it has not contributed a significant value to the monetised benefits despite accounting for approximately three quarters of the scheme cost. Crossrail’s own business case assessment of the step free access for all programme10 calculated a BCR of 0.36 (based on a previously anticipated cost of £3.5 million) for the scheme at Langley. Despite that poor economic performance, the scheme was allocated funds to progress and implement.
4.137. As the funding for the Step Free Access element is already secured, and at no risk to SBC or TVB LEP, it should be argued that the Alternative Scenario provides a more accurate representation of the economic appraisal of the LEP’s investment.
4.138. Despite a positive Net Present Value (NPV) being generated (increased revenue plus positive benefits are higher than traditional investment costs), the BCR is –0.35 and is therefore presenting the false case that there is a negative return on investment.
4.139. In line with WebTAG Unit 1.1, and advice form the LEP’s independent assessors a different method of calculating the cost-benefit has been undertaken. In this instance, a calculation of the scheme’s NPV divided by the scheme’s capital cost has been used to generate the NPV/k
10 http://content.tfl.gov.uk/accessibility-summary-report.pdf 39 Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
assessment. This is deemed a better assessment for schemes that require initial capital expenditure but generate significant revenues that accrue to the ‘Broad Transport Budget’.
4.140. The NPV/k calculation suggests that there is a benefit of £0.96 per £1 of capital expenditure. The scheme can therefore be said to have a positive return on investment.
Table 4-13 Analysis of Monetised Costs and Benefits (£000s)
Costs and Benefits Core Scenario £000s Alternative Scenario £000s
Noise - -
Local Air Quality - -
Greenhouse Gases - -
Journey Quality* 912 362
Physical Activity 105 105
Accidents - - Economic Efficiency: Consumer Users 43 43 (Commuting) Economic Efficiency: Consumer Users 91 91 (Other) Economic Efficiency: Business Users and 144 144 Providers Wider Public Finances (Indirect Taxation -432 -432 Revenues)
Present Value of Benefits (see notes) (PVB) 864 314
Broad Transport Budget 2,752 -905
Present Value of Costs (see notes) (PVC) 2,752 -905
OVERALL IMPACTS
Net Present Value (NPV= PVB-PVC) -1,887 1,219
Benefit to Cost Ratio (BCR = PVB/PVC) 0.31 -0.35
NPV/k (=NPV/Discounted capital cost) -0.38 0.96
* Journey quality benefits include benefits from public realm improvements, cycling facilities improvements, and -for the core scenario only- station facilities improvements.
Sensitivity and risk profile 4.141. In order to assess how differing variables of cost will affect the scheme’s NPV (and therefore BCR or NPV/k), high and low tests of the level of optimism bias (currently estimated as 25%) have been applied. Table 4-14 present how these sensitivities in optimism bias affect the scheme’s economic performance.
40 Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
Table 4-14 Optimism bias sensitivity tests
PVB PVC NPV BCR NPV/k Description (£000s) (£000s (£000s) Core Scenario (25% OB) 864 2,752 -1,887 0.31 - 1 Core Scenario (with 15% OB) 864 2,650 -1,786 0.33 - 2 Core Scenario (with 44% OB) 864 2,944 -2,080 0.29 -
Alternative Scenario (25% OB) 314 -905 1,219 - 0.96 3 Alternative Scenario (with 15% OB) 314 -1006 1,320 - 1.04 4 Alternative Scenario (with 44% OB) 314 -713 1,027 - 0.81
4.142. With a higher level of optimism bias (44%) the BCR for the Core Scenario decrease by 32%. The NPV/k for the Alternative Scenario is still shown to achieve a positive benefit.
Benefits sensitivity testing 4.143. A number of assumptions have been used in the preparation of this economic forecast. To demonstrate the level of robustness of the Economic Case to variations in these assumptions and indicate to which the scheme performance is most sensitive, a range of tests have been carried out in which individual assumptions have been varied from the Core Scenario and Alternative Scenario. Table 4-15 sets out the key economic indicators generated by each of these sensitivity tests.
Low Growth scenario 4.144. The Core Scenario and Alternative Scenario have been assessed on the assumption that the current rate of exogenous growth of 4.5% will continue during the appraisal period. This test gives an indication of what the effect will be on scheme benefits if this growth rate is not maintained. The assumption used is that the growth is significantly reduced to only 2% p.a. This is not intended to be representative of an expected scenario, but only to give an indicator of what impacts may be over a range of growth scenarios.
Benefit reduction scenario 4.145. The analysis contained within this Business Case represent the expected benefits which could be achieved by the scheme with the assumptions presumed. In order to evaluate the potential return on investment were the estimated benefits fail to materialise as expected, a sensitivity test has been tested which assumes that all benefits generated by the scheme reduce by 20% on calculated values.
Season tickets estimation inclusion scenario 4.146. The analysis undertaken within this Business Case for estimating rail fare revenue impacts has been based on standard ticket fares for peak and off peak periods. This was necessary due to there being insufficient robust evidence regarding the type of ticket used at Langley Station. However, a sensitivity test has been carried out taking into account splits from the LENNON/MOIRA model derived Office of Roads and Rail data.
4.147. The key economic indicators generated for sensitivity tests are set out in Table 4-15.
41 Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
Table 4-15 Scheme benefits sensitivity tests
PVB PVC NPV BCR NPV/k Description (£000s) (£000s (£000s) Core Scenario 864 2,752 -1,887 0.31 - 1 Core Scenario (with low growth in 740 3,187 -2,447 0.23 - rail demand increase) 2 Core Scenario (with 20% decrease 691 3,187 -2,496 0.22 - in all benefits) 3 Core Scenario (with season tickets 913 3,079 -2,166 0.30 estimation inclusion)
Alternative Scenario 314 -905 1,219 - 0.96 4 Alternative Scenario (with low 312 -470 781 - 0.61 growth in rail demand increase) 5 Alternative Scenario (with 20% 251 -469 1,274 - 0.57 decrease in all benefits) 6 Alternative Scenario (with season 363 -577 1,274 - 0.74 ticket estimation inclusion)
4.148. For the Core Scenario the BCR is shown to further diminish in both sensitivity tests. Reducing the background rail demand growth to 2% p.a. growth reduces the BCR by 22%. If all benefits of the scheme were reduced (by 20% as in test 2) then the BCR would fall by 32%.
4.149. A reduction in return is also shown for the Alternative Scenario (the LEP/SBC funded elements) when the tests are run. The Low Growth scenario would result in 30% of the NPV/k being lost, which reducing all benefits by 20% reduces the NPV/k by 38%. However in both instances the scheme would still be seen to achieve a positive return on investment.
Assessment of wider strategic impacts 4.150. The Langley Station Access and Improvements Scheme will not lead directly to the creation of long-term employment or new residential development on the site or in the area. However, by improving sustainable modes to and from Langley Station, it can be said that it will play a role in fulfilling the ambitions of the Local Plan in terms of local employment and housing growth and development.
4.151. Several sites in the area near the scheme are earmarked for future redevelopment in line with the site allocations plan, including the SSA23 site – Langley Business Centre – this site has been subject to a recent pre-application planning application, which sought to redevelop the site to mixed use including residential and retail (predominantly residential), which was welcomed in principle by SBC’s planning team. The site was previously subject to a full planning application proposal for a predominantly retail site, which was refused by SBC’s planning team. At this point in time, no full application proposal has been resubmitted for this site;
4.152. With Langley Station being the closest point of access from this site to the rail network, the Langley Station Access and Improvements scheme will play an essential part in realising the redevelopment of this key area to the south of the station.
42 Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
Value for Money
Core scenario 4.153. The analysis contained within this chapter suggests that the Langley Station and Access Improvements scheme will generate a NPV of -£1.887 million PV made up of:
£0.184 million PV resulting from decreases in highway journey times
£1.017 million PV resulting from improvements to station facilities and access and as a result of increases in physical activity
£1.955 million PV resulting from increases to rail fare revenue and £0.319 million PV from car park revenue
-£0.432 million PV resulting from impacts on indirect taxation
PVC of £2.752 million PV
4.154. Given that impacts on noise and local air quality are expected to be neutral no monetised benefits has been produced at this stage.
4.155. The PVB divided by the PVC suggests a scheme BCR of 0.31 which would suggest a Very Poor Value for Money. However, by far the main component of the investment cost of the Core Scenario scheme reflects the commitment to provide full step-free access within the station with the Step Free Access element of the station improvement. Whilst this element provides step-free access to the platform from the forecourt, it has not contributed a significant value to the monetised benefits despite accounting for approximately three quarters of the scheme cost.
4.156. Further social and environmental benefits have been derived from qualitative assessment, and whilst these will not provide a monetised benefit for use in this appraisal, the impacts are taking considered when deriving the Value for Money presented by the scheme. Table 4-17 summarises the scale of non-monetised impacts that the Core Scenario will have.
4.157. The scheme is judged to have neutral impacts on noise and air quality as a result of the redistribution of traffic around the network, and also to have neutral impacts on landscape. It should be noted that although these are neutral impacts, the scheme would bring a number of slight and strong positive benefits to users of the transport systems including improved accessibility, safety and enhanced levels of journey quality and physical activity.
4.158. Regardless of the positive impacts on several non-monetised components, the poor economic return would suggest the Core Scenario scheme still has an overall Poor Value for Money.
4.159. As the funding for the Step Free Access element is already secured, and at no risk to SBC or TVB LEP, it should be argued that the Alternative Scenario provides a more accurate representation of the economic appraisal of the LEP’s investment. The Value for Money of the Alternative Scenario is therefore detailed below.
43 Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
Table 4-16 Non-monetised impacts of the Core Scenario
Scheme impact Indicator Core Scenario Noise Neutral Local air quality Neutral Landscape Neutral Townscape Slight positive Historic environment Neutral Biodiversity Neutral Water environment Neutral Accidents Slight positive Security Moderate positive Accessibility Moderate positive Severance Moderate positive
Alternative scenario 4.160. For the Alternative Scenario it is not possible to undertake a standard assessment of Value for Money through following the DfT’s Value for Money Assessment: Advice Note for Local Transport Decision Makers guidance, due to the unconventional method of assessing the cost-benefit resulting from the need to include additional revenue within the PVC rather than PVB. Unlike for BCRs, the DfT do not provide an equivalent method of attributing Value for Money thresholds to NPV/k calculations. It is known that with a positive NPV and Impact to the Broad Transport Budget that there is a positive return from investment provided by the scheme. Any consideration made of Value for Money is therefore subjective, however one must be made in order to inform the funding body of the overall impact of the scheme.
4.161. The analysis contained within this chapter suggests that the Langley Station and Access Improvements scheme will generate a NPV of £1.487 million PV made up of:
£0.452 million PV resulting from decreases in highway journey times
£0.467 million PV resulting from improvements to station facilities and access and as a result of increases in physical activity
£1.955 million PV resulting from increases to rail fare revenue and £0.319 million PV from car park revenue
-£0.432 million PV resulting from impacts on indirect taxation
4.162. Given that impacts on noise and local air quality are expected to be neutral no monetised benefits has been produced at this stage.
4.163. This NPV divided by the investment cost of £1.219 million PV will generate a NPV/k of 0.96. This represents a positive return on investment for the funding bodies.
4.164. The general station improvements and wider public realm improvements will encourage more people to choose walk and cycle as their mode of accessing the rail network, but may also encourage more people to use rail as their main mode for journeys.
4.165. Further social and environmental benefits have been derived from qualitative assessment, and whilst these will not provide a monetised benefit for use in this appraisal, the impacts are taking considered when deriving the Value for Money presented by the scheme. Table 4-17 summarises the scale of non-monetised impacts that the Alternative Scenario will have.
44 Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
4.166. The scheme is judged to have neutral impacts on noise and air quality as a result of the redistribution of traffic around the network, and also to have neutral impacts on landscape. It should be noted that although these are neutral impacts, the scheme would bring a number of slight and strong positive benefits to users of the transport systems including improved accessibility, safety and enhanced levels of journey quality and physical activity.
4.167. The combination of the positive return on investment and the qualitative non-monetised impacts would suggest that the Alternative Scenario scheme would achieve an overall High/ Very High Value for Money.
Table 4-17 Non-monetised impacts of the Alternative Scenario
Scheme impact Indicator Alternative Scenario Noise Neutral Local air quality Neutral Landscape Neutral Townscape Slight positive Historic environment Neutral Biodiversity Neutral Water environment Neutral Accidents Slight positive Security Moderate positive Accessibility Slight positive Severance Slight positive
Sensitivity test Value for Money 4.168. Reducing the background growth or the overall level of benefits – as indicated in the sensitivity test 3 and in Table 4-15, is still shown to result in positive return on investment for the LEP/ SBC.
4.169. It is considered that regardless of the reduction in returns, the scheme could still be assessed to result in a High Value for Money. As the funding for this element is already secured from an external source, a robust argument could be made for considering this as the truer reflection of the economic assessment of the LEP’s investment.
45 Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
5. The Financial Case
Introduction 5.1. This chapter presents The Financial Case for the Langley Station and Access Improvements scheme. It concentrates on the affordability of the proposal, its funding arrangements and technical accounting issues. The total outturn costs and expenditure profile are presented, along with an assessment of the impact of the proposed deal on the Department’s budgets and accounts.
Outline approach 5.2. Indicative costs for the on-station elements of the scheme have been provided by Network Rail and Rail for London, based on combined design, construction and risk assumptions. Any variation in the cost of these elements will be reflected in the total funding provided by those two parties and will not result in any requirement to request more funding from the TVB LEP.
5.3. The cost estimates for this Business Case therefore concentrate on the works being funded and overseen by TVB LEP/ SBC.
5.4. The cost of implementing the scheme and incremental costs of maintaining and operating it have been estimated in accordance with TAG unit 1.2: Scheme Costs. The costs have been subject to value engineering and critical assessment both internally and externally.
Cost estimates
Derivation of base costs 5.5. Detailed cost estimates for the total scheme, including the preparation costs, the design, supervision and construction of the road, and associated complementary and environmental mitigation costs have been prepared using the benchmark costs.
5.6. Table 5-1 provides a summarised breakdown of the un-inflated base cost estimate, which excludes allowances for inflation, risk and optimism bias, for the latest scheme design.
Table 5-1 Breakdown of costs for the highway scheme
Cost item Cost (millions, Q3 2016 prices) Preparation and management costs 0.137 Construction costs 0.771 Supervision costs 0.050 Statutory undertaker’s diversions 0.100 Total Base Cost (excluding inflation, risk and 1.058 optimism bias)
Inflation assumptions 5.7. Investment, operating and maintenance costs have all been forecast at current prices and inflated up to the point of expenditure.
5.8. For the purposes of appraisal only real inflation (i.e. the rate of inflation of costs above the rate of background inflation) has been considered, for the financial case the full rate of inflation has been included in cost forecasts to present outturn costs.
5.9. Latest forecasts suggest that construction related costs will rise in average by 2.7% p.a. in absolute terms in line with current TPI forecast. Preparatory and supervision costs will rise in average by 2.0% p.a. in line with RPI forecasts.
46 Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
5.10. Beyond the implementation period, capital maintenance costs have been assumed to grow in line with TPI while operating costs grow in line with RPI.
Allowance for risk 5.11. As detailed in paragraph 4.92 a risk register specifically for the Langley Station and Access Improvements scheme has been prepared and used to obtain a Quantified Risk Assessment (QRA).
5.12. Whilst optimism bias is not usually included in Financial Appraisal for Business Cases, this scheme has not yet entered the detailed design stage. Furthermore, unlike the business cases for Slough’s recent LEP funded schemes, the Langley Station and Access Improvements scheme is not being undertaken within the Slough Major Schemes procurement route. Rather, procurement for construction will be an open tender process and therefore there is much less certainty about the scheme construction costs. Therefore a 25% Optimism Bias (detailed in paragraph 4.91) has been included.
5.13. Risk for the privately funded aspects of the scheme have been given directly in the total cost by Network Rail/Rail for London. Any cost overrun for those aspects will be managed by Network Rail and Rail for London, with no expectancy for TVB LEP or SBC to provide further funding.
Quantified cost estimate 5.14. Table 5-2 sets out the quantified cost estimate, (outturn cost) which includes risk and inflation and shows the years in which the costs are incurred.
Table 5-2 Quantified Cost Estimate (millions, outturn)
Year cost are incurred Total Cost element (millions) 2016/17 2017/18 Preparation and management 0.085 0.086 0.171 Construction 1.100 1.100 Supervision 0.063 0.063 Risk 0.042 0.167 0.209 Total 0.127 1.416 1.543
Details of eligible preparatory costs 5.15. The preparation costs include the work required to complete the Business Case, statutory process, the monitoring and evaluation, the funding approval process and procurement of the scheme. Sunk costs have not been included within the scheme outturn costs.
Ongoing revenue liability 5.16. Operation and maintenance liabilities of the highways elements will fall to the local authority. These costs have not been included in the cost estimate as they will be become part of the maintenance and operations costs for the principal road network authority.
Section 151 officer sign off 5.17. In support of the Business Case submission SBC’s Section 151 officer, will sign off the estimated costs of the scheme.
47 Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
Budgets/ Funding cover
Funding package 5.18. The funding package proposed for financing the Langley Station and Access Improvements scheme is made up of £1.5 million which will be contributed by the LEP, £0.043 million of SBC funding and £4.5 million of Network Rail and Rail for London funding.
Phasing of the total funding package 5.19. Table 5.3 shows the total cost estimate and the funding sources by year broken down by funding organisation.
Table 5.3 Funding package (£m, outturn)
Year cost are incurred Total Organisation (£millions) 2016/17 2017/18 BLTB 0.084 1.416 1.498 SBC 0.043 0.045 Total 0.127 1.416 1.543
Accounting implications 5.20. The Langley Station Access & Improvements scheme is expected to have the following implications on the public accounts:
Devolved funding is requested to fund £1.5 million of the scheme implementation costs with the majority of expenditure occurring over the 2018/18 financial year
A total local contribution of £0.043 million is required for the implementation of the scheme, the majority of which is preparatory and management for scheme development. Furthermore £4.5 million will be provided as contributions from Network Rail and Rail for London
48 Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
6. The Commercial Case
Outline approach 6.1. With the scheme split into two main components, station projects and complementary highway changes, the procurement strategies for completion of the package vary. It is understood that all changes to station buildings and facilities (existing or proposed) will be undertaken by Network Rail and Rail for London. Procurement for both parties will follow their existing strategies, and as these elements are almost entirely funded by the external investment rather than through the LEP funding, will not be discussed in this document.
6.2. SBC will manage the procurement for the sections of the scheme for which they will lead design and build, namely those elements described in paragraphs 2.4 and 2.5 of this document.
6.3. The DfT’s guidance document, ‘The Transport Business Case: Commercial Case’, outlines the areas that should be covered as part of the Transport Business Case documentation. The necessary elements to achieve compliance are:
Output based specification;
Procurement strategy;
Sourcing options;
Payment mechanisms;
Pricing framework and charging mechanisms;
Risk allocation and transfer;
Contract length; and
Contract management.
6.4. The Commercial Case has been developed following the outline approach below:
Set the procurement objectives, outcomes and constraints;
Identify potential procurement / purchasing options;
Assess the procurement options in terms of pros and cons, as a rationale for selecting the preferred sourcing option;
Confirm the preferred payment mechanism and pricing framework; and
Assess how different types of risk might be apportioned / shared, with risks allocated to the party best placed to manage them.
Output based specification 6.5. The Commercial Case is based on strategic outcomes and outputs, against which alternative procurement options are assessed.
6.6. The outcomes which the preferred procurement strategy must deliver are to:
Achieve cost certainty, or certainty that the scheme can be delivered within the available funding constraints;
49 Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
Minimise further preparation costs with respect to scheme design by ensuring best value, and appropriate quality;
Obtain contractor experience and input to the construction programme to ensure the implementation programme is robust and achievable; and
Obtain contractor input to risk management and appraisals, including mitigation measures, to capitalise at an early stage on opportunities to reduce construction risk and improve out-turn certainty thereby reducing risks to a level that is ‘As Low As Reasonably Practicable’.
6.7. The outputs which the preferred procurement strategy must deliver are to:
Deliver highway improvement scheme including upgrades to key Waterside Drive / Station Road junction and public realm improvements;
Works to improve pedestrian facilities and crossing points on the highway, both from the north and south approaches to the station;
Works to improve cycling facilities in the vicinity of the station;
Works to improve cycle parking facilities within and around the station;
Introduction of a Cycle Hire Slough docking station within the station car park area, offering public bike hire linking with Slough’s existing scheme of nine docking stations across the town (including three in the Langley area
Improved linkages with bus stops for pedestrians, including improved information provision;
Provision of a Real-Time Passenger Information (RTPI) screen in the station for onward bus travel information; and
Improvements to the station car park, including a new taxi area, new drop-off area (‘kiss & ride’) and the provision of Electric Vehicle (EV) charging points.
Procurement strategy 6.8. The procurement process will be run in strict accordance with the legislative framework set out within the SBC Council Procurement Strategy (2012). In addition the process will be governed by the Council's own constitutional Contract Procedure Rules (2012) and will be subject to the Council's Procurement Gateway Process.
6.9. Under the Procurement Gateway Process the strategy will be subject to review by the Council's Procurement Manager, senior Legal officer and senior officers from across the Council who are highly experienced in strategic procurement and contract management. Express approval must be gained from the Procurement Gateway Board in two stages, firstly to enable the tender documentation to be released and secondly to enable the procurement to move to the award procedure stage following review of the award recommendation.
Procurement options 6.10. The following procurement routes have been considered:
Traditional, procurement, construction, separate maintenance;
Design and Build (D&B) construction, separate maintenance;
Early Contractor Involvement (ECI), separate maintenance; and
Private Finance Initiative (PFI) Funding, Design Build Operate and Maintain (DBOM).
6.11. For the first three options described above, the additional work involved in the maintenance and operation of the infrastructure will be undertaken by SBC. 50 Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
6.12. Table 6-1 summarises the options, presenting the pros and cons of each procurement route. The following considerations need to be made in relation to the procurement of the scheme:
The primary consideration is the supplier’s ability to effectively carry out the works and early engagement of the supplier in order to ensure the inclusion of skills and knowledge at the earliest stage;
There is a time constraint on the project – there is a requirement for all funding to be spent on the project by March 2018;
Consideration for traffic management arrangements during construction – an important element of scheme community relations and short-term environmental impacts;
Consideration of other schemes being constructed at a similar time period and how to coordinate / mitigate;
Supplier environmental credentials;
Evaluation of social and environmental considerations in procurement process, for example use of sustainable materials, disposal of waste materials, use of local sub- contractors and human resources, etc; and
Economic considerations in terms of value for money of suppliers.
Preferred route 6.13. The Council’s preferred route is to for a Traditional procurement route via a dedicated tender exercise. The reasoning behind this is that the council’s current contract with Balfour Beatty for major projects in the borough (Slough Mass Rapid Transit (SMaRT), A355 Copthorne Roundabout and A332 Windsor Road projects) has been maximised in terms of projects & costs, and cannot be extended further. A new tendering exercise will be undertaken in order to establish the best value and quality supplier to construct the scheme. The design element of the work will be carried out by Slough Borough Council using existing resources.
Sourcing options 6.14. SBC will utilise procurement procedures to source three quotes from suppliers and will follow a tendering process to establish the best value and quality supplier in line with the requirements which will be clearly set out by SBC as part of the tendering process.
6.15. It is proposed that the tendering for a construction supplier can be carried out upon receipt of the outcome of the submission of this bid to the LEP (late November 2016) and will take approximately four months. This will enable SBC to commence construction works from August 2017 when the funding is available.
51 Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496
Langley Station and Access Improvements Business Case
Table 6-1 Procurement options
Procurement Description Risk Transfer Pros Cons Type Traditional Client completes a full detailed design Risk resulting from Allows for competitive tender and better Majority of risk is carried by the followed by tendering for a Contractor, design is carried by opportunity for scrutiny of supplier value client who is passed the design to construct. The the Client. for money on scheme Generally poorer record in terms of form of Contract is usually the ICE or Comparable in programme terms with cost certainty similar D&B High client control over specification and quality Design & Client submits for tender the design Risk from detailed Allows for competitive tender Requires well-developed works Build developed during the statutory processes design is carried by Comparable in programme terms with information to ensure client control and passes it to the Contractor to tender the Contractor. The traditional over specification and quality the detailed design and construction. client develops a Target cost contract allows for high detailed knowledge degree of cost certainty and potential of risk, enabling a cost savings more informed negotiation of risk Design solutions are likely to be transfer at tender directed towards specific Contractor stage. methods aiding buildability and potential for value engineering Early Contractor appointed prior to preliminary All design risk Allows for early supplier engagement Although rates would be market Contractor design stage. carried by the on a partnering basis Contractor is tested, the target cost for the main Involvement Contractor. Risk better placed to manage risk, having construction works negotiated rather register developed been involved from an early stage in than competitively tendered. in partnership with the design process Requires some certainty of scheme supplier. Allows for the incorporation of the funding prior to the commencement Opportunity to supplier skills and knowledge within the of preliminary design and statutory share risk to most early stages of design processes. appropriate party. ECI benefits projects with complex engineering challenges PFI DBOM A Concession contract is awarded and All risk is carried by Total cost of the scheme is effectively Increased time of procurement service fee paid for delivery of operational the PFI Operator spread over the whole project lifecycle process will lead to significantly later and maintenance services Long term interest in maintenance start date of construction and helps ensure quality driven approach to therefore potential for increased cost design and construction. to completion.
Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496 52
Langley Station and Access Improvements Business Case
Human Resource issues 6.16. For a project of this size there need to be considerations for the resource required for all stages of the project, from the preparatory design works to the infrastructure works. The ability for the contractor to resource the project effectively will be scrutinised at procurement stage via the procurement specifications set out in the tender documentation.
Payment/ Charging mechanisms and framework 6.17. The contract will be based on the NEC 3 contract model, which allows for delay damages, specifically relating to over–running of works.
6.18. Payments to the contractor will be made in arrears to the value of 60% of the project subject to an independent clerk of works (appointed by the Council) agreeing with the submission made by the contractor.
6.19. Payments made to the contractor will be subject to a further cross checking against the programme to ensure that the absolute minimum over run occurs, if any and if a penalty is due to be applied work with the contractor to rectify/remedy this.
6.20. The final 40% will be paid in stages upon receiving invoices for completed elements of the work.
Risk allocation and transfer 6.21. SBC Project Management Team, designers, planners and external consultants together formed a risk register detailing risks associated with:
Strategic/Political/Policy
Economic/ Financial/Management
Statutory process/ legal/ land acquisition
Design/technical/preparatory works
Stakeholder Management/Consultation
Procurement;
Construction; and operation.
Risk management plan 6.22. A Risk Management Plan will be developed throughout the life of the project. Following confirmation of scheme funding, ownership of the risks will be allocated to those parties best able to manage them.
6.23. The Risk Management Plan will set out the full risk management process and responsibilities for undertaking risk management to deliver the scheme. Implementation of a structured, forward looking and continuous risk and opportunity management process is intended to increase the certainty of cost-effective scheme delivery and operational success.
6.24. Further risk identification will be carried out in numerous ways such as:
Workshops;
Reviews;
Meetings; and
Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496 53
Langley Station and Access Improvements Business Case
Day to day operation.
6.25. When a risk is identified, the data will be added to the Risk Register.
Risk management organisation 6.26. The risk management organisation for this scheme consists of four key parties: the Project Board, the Project Manager, the Risk Manager and the Risk Owner.
6.27. The Project Board has overall responsibility for ensuring sufficient resources are available to manage risks across the scheme. Risks shall be allocated and managed in a cost effective manner by the most appropriate party to do this and at the appropriate level. The Board shall be primarily concerned with managing strategic level risks relating to interfaces between the scheme and the wider project environment.
6.28. The Project Manager has overall responsibility for ensuring that the risk management process is implemented and managed in accordance with strategies.
6.29. The Risk Manager shall ensure that risks are actively managed in a consistent and appropriate manner across all work streams in accordance with this Plan. All severe risks shall be reported by the Risk Manager to the Project Board through the Project Manager. In addition, all risks which relate to the overall direction, organisation and control of the scheme, e.g. loss of key project staff, shall be reported to the Project Board.
6.30. The Risk Manager shall:
ensure that an appropriate procedural framework is adopted;
report to the Project Manager in review and management of project performance;
agree the required level of risk management support to be provided for risk identification, analysis, review and reporting;
facilitate risk workshops/meetings as appropriate supported by a risk co-ordinator if required; and
be the custodian of the risk register and the contained data.
6.31. The Risk Owner shall be responsible for the day to day management of the risk(s) that they own. The selection and appointment (by the Project Manager) of a risk owner will be on a “best person for the task” approach and, once appointed, the risk owner will monitor and update the risk register informing the risk manager of changes.
Key project risks 6.32. Table 6-2 identifies the key project risks throughout the planning and implementation of the scheme. A full risk register can be found in Appendix H.
Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496 54
Langley Station and Access Improvements Business Case
Table 6-2 Key project risks
Risk Mitigation Cost Risks & Mitigation The tender prices received from the contractors The current cost estimate is based on a Bill of exceed the available budget to construct the Quantities with appropriate allowances for scheme. optimism bias and risk. Review BoQ throughout design development process Statutory Undertaker diversions cost Continual liaison with SU's. Consider underestimated employment of specialist consultant to value engineer planned diversions at preliminary design stage. Delivery Risks & Mitigation Unknown services struck during construction Adequate planning, liaison and undertaking of works incurring delays to programme works in advance of main programme. Agreement of any utilities work before start of construction. GPR survey will be undertaken to establish location of statutory undertakers' equipment and unmarked services. Digging of trial holes and CAT scans for any advance works. Permit to dig process for main works. Poor existing asset condition requiring Establish existing asset condition through increased remedial works as part of the surveys and due diligence. Early discussions scheme e.g. drainage, lighting, pavement. with SBC over contribution towards additional costs of asset repair/replacement. Retaining structures may be required for the A basic car park design has been designed in extension of the car park north towards Station MX at the Preliminary Design Stage to check Approach, due to level difference between the levels of the extended car park. These initial back end of the car park and Station Approach. investigations concluded that retaining . structures will not be required and that a maximum slope 1:3 gradient earthworks will be sufficient. This should be further investigated at Detailed Design and a full MX model completed for all vertical aspects of the design.
Contract length 6.33. The contract for the supplier will run from April 2017 to March 2018.
Contract management 6.34. The contract will follow a traditional NEC 3 format, ensuring that the contractual / commercial arrangement will be well defined. This form of contract is well understood throughout the supply chain and relies on a pre-defined risk register to allocate and manage anticipated risk. During contract negotiations, risk will be allocated to the party best able to manage it the most cost effective way.
Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496 55
Langley Station and Access Improvements Business Case
7. The Management Case
Outline approach 7.1. The DfT’s guidance document, ‘The Transport Business Case: Management Case’, outlines the areas that should be covered as part of the Transport Business Case documentation. The necessary elements to achieve compliance are:
Evidence of similar projects
Programme/ project dependencies
Governance, organisational structure & roles
Programme / Project plan
Assurance & approvals plan
Communications & stakeholder management
Programme / Project reporting
Implementation of work streams
Contract management
Risk management strategy
Benefits realisation plan
Contingency
Options
Monitoring and evaluation
7.2. The management approach has been developed following the outline set out below:
Set the appropriate governance structure to ensure outcomes and objectives are met
Identify and plan for the key approval milestones ensuring information is provided in good time so as to not delay the programme
Assess how the delivery process will be managed to achieve the optimum financial and impact performance
Evidence of similar projects
Heart of Slough Infrastructure Improvements scheme 7.3. The management structure and practices outlined in this section are the same as those which delivered the £12.5 million ‘Heart of Slough’ scheme which was completed in spring 2012.
7.4. The Heart of Slough town centre scheme delivered a complete overhaul of road space, traffic management and public realm within Slough Town Centre, providing a base for the large scale regeneration of office and residential development. The implementation was led by Slough
Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496 56
Langley Station and Access Improvements Business Case
Borough Council and part funded by the Homes and Communities Agency (HCA) and consisted of:
A new four-way junction controlled by traffic lights to improve the traffic flow. The Brunel roundabout has been removed and new improved road level pedestrian crossings have been installed
Closure of the subways under the Brunel roundabout
New wide pavements catering for pedestrians and cyclists around the junctions
A new tree lined boulevard along the north and south sides of the A4 Bath Road from High Street West to Brunel Way
Footways on High Street West were repaved and widened in places
New street furniture and street lighting installed throughout the scheme
The train station forecourt has been improved including new paving making it a more pedestrian friendly environment, with the relocation of the taxi pick up point plus the introduction of a new passenger drop-off area
Other current projects 7.5. The management and structure outlined in this section are the same as those currently being used for the following projects which are under construction:
Burnham Station and Access Improvements, including a new traffic scheme around the station, the addition of a new 42-space car park, and the provision of taxi, drop-off and electric vehicle facilities
A355 Copthorne roundabout improvement scheme, which will remove a major bottleneck on Slough’s highway network thus improving the flow of traffic between Slough’s residential and employment generators and the M4
Programme / Project dependencies 7.6. The scheme programme is dependent on the following:
Timely agreement of contract variation
Political backing and funding from each of the identified funding streams
Successful liaison with the local communities ensuring they are included in regular updates throughout the scheme’s development
Contract management 7.7. The contract follows a traditional NEC 3 format, ensuring that the contractual / commercial arrangement will be well defined. This form of contract is well understood throughout the supply chain and relies on a pre-defined risk register to allocate and manage anticipated risk. During contract negotiations, risk will be allocated to the party best able to manage it the most cost effective way.
Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496 57
Langley Station and Access Improvements Business Case
Governance, organisational structure & roles 7.8. SBC will operate the design & construction (of the highways elements) and monitoring stages of the scheme utilising a governance structure as shown in the organogram in Figure 7-1.
7.9. At the head of the structure is the Scheme Sponsor and Lead Commissioners with ultimate authority over the implementation of transport schemes with the assistance of the project board. The leadership team will be responsible for ensuring the scheme follows the identified programme and will maintain the operation of the project delivery team.
7.10. The highways scheme will be delivered by SBC. The Senior Responsible Officer for the project delivery is Masum Choudhury – Transport Strategy Manager. The Project Manager for the project is Rudo Beremauro, Engineer.
7.11. The Access for All element will be delivered by Crossrail / Rail for London as the scheme sponsor with Emily Ball as the Senior Responsible Officer.
7.12. Network Rail will deliver the platform works in relation to the WRLtH scheme as the scheme sponsor, with John Adkins as the Senior Responsible Officer.
Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496 58
Langley Station and Access Improvements Business Case
Figure 7-1 Langley Station and Access Improvements scheme project governance structure (Highways elements)
Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496 59
Langley Station and Access Improvements Business Case
Programme / Project plan 7.13. Since the last submission of the LEP application SBC has progressed with the planning and management required in order to be in a position to complete the scheme (when funding is received) by March 2018.
7.14. A Gantt chart programme detailing the process to completion has been adopted and maintained and is contained in Appendix I.
7.15. The work to date (including design and landscaping proposals) has been undertaken at SBC’s own risk. Without funding from the LEP, the scheme cannot be completed and the prospects of enabling increased transport required to deliver jobs in this key area will be hampered.
Assurance & approval plan 7.16. SBC will follow its Gateway Process as a mechanism for assessing projects at critical stages in their lifecycle prior to commencing the next stage. The use of the Gateway process enables:
Realistic and achievable targets to ensure successful delivery
Deployment of relevant skills and competencies to a project
Compliance with best practice
Key stakeholder input and understanding
Project feedback through lessons learnt
A visible audit trail
7.17. The planning of the SBC sponsored elements of the scheme has run in-line with the BLTB Assurance Framework procedures. The following key milestones for SBC and BLTB/LEP signoff are shown below:
Decision by BLTB/Thames Valley Berkshire LEP Board on commitment of funding: mid November 2016
Contract between BLTB, LEP and scheme delivery body produced and signed: late November 2016
Detailed design approval (SBC): April 2017
Construction supplier appointed and contract agreed (SBC): late May 2017
The sign-off of construction duties by SBC at the completion of the scheme: March 2018
7.18. These milestones have been built into the project programme and will be monitored by the SBC Project Manager and reported to the Project Board.
Communications & stakeholder management 7.19. The key objectives of the scheme’s stakeholder management are to:
Keep stakeholders aware of the schemes progression and give an opportunity for feedback to help gain scheme approval
Give an opportunity for stakeholders to provide views and recommendations for improvements so that the scheme meets stakeholder requirements as far as is practical
Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496 60
Langley Station and Access Improvements Business Case
Meet statutory requirements
Increase public and stakeholder awareness of the scheme
Provide consistent, clear and regular information to those affected by the scheme, including the nature of any scheme-related impacts and when and how it will affect people or groups both during delivery and once operational
Address perceptions of the scheme where these are inconsistent with the scheme objectives and forecast outcomes
Stakeholder management 7.20. SBC will ensure adherence to the programme via monthly meetings with the Contractors and Designers to ensure that the project is on target.
Public consultation 7.21. SBC will follow their Community Engagement Policy when consulting the public. The scheme will be publicised in the public domain for public consultation in advance of construction and direct engagement with statutory consultees will occur during the Detailed Design Stage of the project and further during the public consultation stage.
7.22. The Design team along with the project team will undertake these consultation activities in partnership with Slough Borough Council’s communication team.
Programme / Project reporting 7.23. Responsibility for accurate, timely and appropriate communications within the project team rests with the SBC Project Manager to ensure that the Project Board is kept up-to-date with programme developments.
7.24. The Project Manager identified is responsible for ensuring the Project Board is provided with sufficient information and that the Project Board clearly understands that information in order to provide necessary guidance on programme decisions. The Project Manager is responsible for leading both Delivery Team and reporting to the SRO to ensure that all parties are up-to-date with relevant information.
7.25. The SRO is responsible for keeping the Lead Members aware of the development of the scheme towards meeting the project objectives.
7.26. It is the responsibility of the Project Director to ensure that the Project Board has sufficient information and is involved in all decisions that affect performance of the project, achievement of the project objectives or deviation from agreed and delegated responsibilities.
7.27. Project team meetings are held on a monthly basis, with the outcomes escalated to the Project Board.
Implementation of work streams 7.28. The package of work comprises of ten key elements, all of which will assist towards the overall implementation of the scheme and its objectives. The key work streams required for implementing the project are as follows:
Approval of business case
Outline design (currently being prepared in-house)
Detailed design (will be prepared in-house with support from Atkins)
Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496 61
Langley Station and Access Improvements Business Case
Procurement exercise (led in-house by project team, supported by in-house procurement team)
Early site works (through appointed contractor for scheme)
Utility works (led by in-house team, carried out by appointed contractor)
Construction of complementary schemes (led by Network Rail / Rail for London, closely working with project team)
Construction of main scheme (through appointed contractor for scheme)
Site supervision (led in-house)
Monitoring and evaluation (led in-house)
Key issues for implementation 7.29. Table 6-2 identifies the key project risks throughout the planning and implementation of the scheme and are summarised below:
The capital costs of the scheme increase as a result of factors uncovered at preparatory surveys and design stages
Statutory Undertaker diversions cost underestimated
Unknown services struck during construction works incurring delays to programme
Delays during construction, including statutory undertaker diversions, access restrictions due to environmental constraints
7.30. Monitoring during implementation will be undertaken by the SBC PM/SRO and will ensure that mitigation measures identified in the risk register will be undertaken and adhered to.
7.31. The monitoring of activity during the construction will be embodied in a Construction Management Plan (CMP) to be prepared and operated by the scheme promoter as the planning authority and adhered to by the contractor. Similarly, a Site Waste Management Plan would be prepared to address requirements for waste handling and disposal which would be adhered to during the construction phase.
7.32. Local authority environmental health officers' stipulations in respect of air, noise, operating hours and waste would also be incorporated into the contractor’s monitoring procedures and plans as part of a construction code of practice.
Risk management strategy 7.33. The management of risk has been covered in detail in Chapters 5 and 6 of this report. A summary of the key risks is listed below (these are covered in detail - both in terms of the risk and the mitigation - in Table 6.2 and paragraphs 6.21 to 6.32):
Cost risks The capital costs of the scheme increase as a result of factors uncovered at preparatory surveys and design stages
Statutory Undertaker diversions cost underestimated
Delivery risks Unknown services struck during construction works incurring delays to programme
Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496 62
Langley Station and Access Improvements Business Case
Delays during construction, including statutory undertaker diversions, access restrictions due to environmental constraints
Retaining structures may be required for the extension of the car park north towards Station Approach, due to level difference between the back end of the car park and Station Approach.
Benefits realisation plan 7.34. Tracking of the scheme benefits will be a key element in understanding the success of a specific intervention. The realisation of benefits is intrinsically linked to the Monitoring and Evaluation plan (discussed in the following section).
Scheme objectives, outcomes and impacts 7.35. The intervention Logic Map (seen in Figure 7-2) are as follows: (1) the efficiency of the scheme management and delivery process leads to (2) whether outcomes have been achieved, which in turn provides (3) the ability to demonstrate accountability for the initial investments. Evaluation objectives have been set to show a clear flow reflecting the process, impact and economic elements of the evaluation.
7.36. The PM and SROs will be the owners, responsible for tracking the benefits being realised and for reporting any exceptions to the project board. This will allow early identification of any particular areas where benefits are not being realised as expected. The Project Board will then appoint someone with sufficient expertise to oversee remedial actions to try to bring benefits back in line with expectations.
Benefit monitoring 7.37. The monitoring of the benefits realised against each objective is controlled within the Monitoring and Evaluation plan. This sets out the necessary data and information requirements to track the performance of objectives.
Contingency 7.38. Delivery against the programme will be measured in terms of its effectiveness, delivery against planned timescales, and actual expenditure versus planned expenditure. Responsibility for this lies with the Project Manager throughout the project, and any changes will be reported to the Project Board.
7.39. Throughout the project the risk register will be maintained and updated as necessary, with mitigation and contingency measures used as appropriate – as decided and approved ultimately by the Project Board.
Options 7.40. The management approach that has been proposed for the Langley Station & Access Improvements scheme is proportionate to the overall scheme cost, its deliverability and the relatively low level of risk. The key points to note are:
A Project Board has been established, comprising senior Council representatives, to oversee scheme delivery. An SRO and Project Manager have been appointed, with the Project Manager reporting to the Project Board
The Risk Register is being reviewed and updated on a regular basis, with risk owners appointed as appropriate to the type of risk and the stage of scheme delivery at which the risk could be realised
Stakeholders are being consulted with and informed of project progress
Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496 63
Langley Station and Access Improvements Business Case
The Benefits Realisation, Monitoring and Evaluation Plan will ensure that data collection and reporting is focused tightly on the objectives and success indicators that have been set out in the Strategic Case
7.41. Overall, the Langley Station & Access Improvements scheme is considered by SBC Council to be a deliverable scheme, which will ensure that Langley Station continues to see substantial growth in patronage, particularly in line with upcoming new services via Crossrail.
Monitoring and evaluation 7.42. Due to the size of the funding commitment sought by SBC, there is no requirement for the Business Case to follow the full Department for Transport’s latest ‘Monitoring and Evaluation Framework for Local Authority Major Schemes’. However, it is critical that the authorities that make up the BLTB understand how schemes perform in order to ensure lessons can be learned. For this reason a proportionate but complete Monitoring & Evaluation Plan has been developed for this scheme. This covers standard monitoring of measures common to all schemes covering inputs, outputs, outcomes and impacts.
7.43. A key element of the Monitoring and Evaluation plan is to map the intervention logic. This involves systematically linking key components of an intervention in order to understand the causal pathway.
7.44. Figure 7-2 sets out the intervention logic map for the scheme and shows the linkages between the key components of the intervention with the scheme objectives. The map shows the process by which the scheme outputs will deliver the primary objectives for intervention (shown as dark green boxes), and describes an outline evaluation approach for monitoring the extent to which these are achieved as part of a pre and post-opening monitoring report.
7.45. The map also shows wider and longer term impacts, which depend on the delivery of the primary objectives.
Evaluation objectives 7.46. The evaluation objectives are as follows: (1) the efficiency of the scheme management and delivery process leads to (2) whether outcomes have been achieved, which in turn provides (3) the ability to demonstrate accountability for the initial investments. Evaluation objectives have been set to show a clear flow reflecting the process, impact and economic elements of the evaluation.
Process evaluation: Efficiency of scheme delivery 7.47. The resources and finances used in delivering the scheme should be understood in order to gain an understanding of existing planning techniques and to provide lessons learned for use in future best practice.
Impact evaluation: Delivery of projected outcomes 7.48. The planning and processes used in defining an intervention from the outset, and their continual evolution throughout design, construction and implementation play a key factor in predicting outcomes. Understanding of how the predicted outcomes match those which are delivered by scheme is essential in providing lessons learned for future proposals.
Economic evaluation: Accountability for investment 7.49. The outcomes of the scheme will enable SBC to establish a revised assessment of the benefits of the scheme. Whether anticipated or not, do the benefits justify the investment made at the outset? How can the VfM forecasts be considered in the planning of future schemes?
Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496 64
Langley Station and Access Improvements Business Case
Figure 7-2 Intervention logic map for the Langley Station and Access Improvements scheme
Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496 65
Langley Station and Access Improvements Business Case
Three-stage approach for Monitoring and Evaluation 7.50. It is important to establish how different scheme-specific objectives are realised over different timescales.
7.51. Some objectives will be realised immediately or shortly after the scheme opens; such short and medium term scheme effects are referred to as outcomes. Other objectives such as supporting economic regeneration are less direct and tangible effects of the scheme and are expected to take effect over a longer period; these longer term effects are called impacts. Impacts can be more difficult to attribute directly to the scheme.
7.52. For this reason the Scheme Monitoring and Evaluation Plan will be undertaken in three distinct stages:
Stage 1 - Pre-Construction Study;
Stage 2 – One Year Post Opening Process Evaluation, Q2 2019
Stage 3 - Five Year Post Opening Impact Evaluation Study, Q2 2023
Process evaluation 7.53. The Process Evaluation will be undertaken as the construction nears completion through to the Stage 2 One Year Post Opening Process Evaluation.
7.54. The aim of the process evaluation is to identify factors influencing the extent to which objectives have been achieved, identify and investigate unintended outcomes, and identify lessons learned.
7.55. The process evaluation will extend beyond a desk-based study and will involve interviews with key project officers and a process review workshop with key parties (e.g. SBC, BLTB) and stakeholders. This will include assessment of:
Programme management, success factors and key obstacles to delivering the scheme. Provide details of project plan assessment, delivery at key milestones, etc. This will help identify good practice in this area, which can be shared in the future;
A review of evidence collated through SBC’s project management and governance procedures;
Consultation with key stakeholders to garner a range of views of the operation and success of the scheme;
The evolution of the risk register and the effectiveness of the risk management strategy e.g. safety during construction, delays to transport users, impacts on local business during construction;
If and how the context and rationale behind the scheme has changed; and
All costs involved in the management, construction and delivery of the scheme compared to the forecast costs including an assessment of risk and optimism bias in pricing.
7.56. The process evaluation will make use of the extensive audit trail provided by the use of the PRINCE 2 project management environment. We expect the following reports to be produced as part of this system:
Highlight Report
Exception Report
End Stage/Next Stage Report
Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496 66
Langley Station and Access Improvements Business Case
Project Closedown
Lessons Learned Log
7.57. These reports will be used to assist in the evaluation of the process from start to finish. As part of the project closedown process a workshop will be held with key members of the client and contractor teams to capture the items that went well and did not go well and if there are additional lessons that need to be learned. This will include a review of the impact of stakeholder engagement based upon the feedback that was received during the project, and also perceptions of the construction phase obtained via the residents’ attitudes surveys.
Impact evaluation 7.58. The evaluation of impacts will be undertaken using a standard knowledge-based theory of change approach, and designed so that the unique contribution of the Langley Station and Access Improvements scheme can be established, and so that the approaches and methods are commensurate with the scheme’s scale. This approach has been adopted as it will allow:
The evaluation of specific interventions
The ability to derive causal based effects of the interventions
An opportunity for continual forecasting of impacts
7.59. Stage 1 (Pre-construction) involves the collation of baseline information which can be used in the evaluation of impacts in the later stages.
7.60. Collating electronic copies of all reports, documents, data and models relating to the scheme appraisal that will be required to establish baseline conditions and forecast impacts in terms of accidents, traffic volumes and journey times.
7.61. In Stages 2 and 3 the impact evaluation will be updated with the following:
Commission ATC surveys to assess the change in traffic flows on roads within the area impacted by the scheme
Commission entry/exit surveys at the station to assess the change in demand (including among people with disabilities)
Commission cycle and car parking surveys to asses change in demand
Compare Stage 1 baseline data to future data to determine scheme impacts
Compare recorded incidents of crime at the station
Economic evaluation 7.62. After completion of the Stage 3 monitoring and impact evaluation, an economic evaluation will be undertaken to assess the accountability of the investment into the scheme through answering the following questions:
How do the realised benefits, and therefore, VfM correspond with those estimates derived from the scheme appraisal?
Have any unexpected benefits occurred or have other predicted benefits not materialised?
Are on-going benefits expected to change?
7.63. The actual outturn costs and movement data will be used to generate a new BCR. This will be supplemented with an assessment of the wider economic benefits generated by the scheme to
Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496 67
Langley Station and Access Improvements Business Case
understand the Value for Money provided. This will be compared back to that generated within the original Business Case.
Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496 68
Langley Station and Access Improvements Business Case
8. Summary and conclusion
8.1. To provide a robust business case for the improvements in and around Langley Station, a strategic case, economic case, financial case, and commercial & management case have been outlined in this document.
The Strategic Case 8.2. The strategic case sets out the context of Langley station in the east of Slough in Langley which is an area that consists of residential, retail, commercial and industrial land uses. The key areas surrounding the site are an area to the north of the station, which comprises of a light industrial park, and to the south is Langley Business Park (a site earmarked for future re-development), and East Berkshire College’s Langley College site is approximately 0.2 miles to the south west of the station. Moreover Heathrow Airport, Crossrail and the Network Rail Western Rail Link to Heathrow projects are all significant external developments that will impact or be impacted by patronage at Langley station.
8.3. In addition local developments - such as the Langley Business Centre site redevelopment - will also bring about growth in this area of Slough and are also in part reliant on connectivity provided by Langley. Thus improvements at Langley Station would complement planned rail upgrades and enable the area to fully realise the potential of planned investment.
8.4. This will be specifically supporting the following TVP LEP priorities:
Enhancing urban connectivity, encouraging vibrant town centres
Setting foundations for future growth
Enhancing the strategic transport network
8.5. The scheme will not only support local transport policies, but will also aim to improve the image and environment of Slough. Thus objectives and desired outcomes for the scheme have been outlined to address the issues and align with the established policies and plans were developed.
8.6. The objectives of the scheme are as follows:
Improve pedestrian access to Langley Station
Improve access for cyclists to Langley Station
Providing reconfigured parking arrangements and drop off facility for Langley Station
Improving the perception of safety and security at and around Langley Station
The Economic Case 8.7. The economic case assesses the scheme’s value for money using the methodology set out within the Appraisal Specification Report. This entails transport modelling, benefits appraisal, derivation of scheme cost, scheme assessment & supporting analysis, as well as the collation of summary tables for supporting analysis. The options appraised were a Core Scenario encompassing the full scope of works including the Step Free Access element funded by Network Rail/ Rail for London and an Alternative Scenario encompassing only those elements to be funded by TVB LEP/ SBC.
8.8. The PVB divided by the PVC suggests the Core Scenario has a scheme BCR of 0.41 which would suggest a Very Poor Value for Money. However, by far the main component of the investment cost of the Core Scenario scheme reflects the commitment to provide full step-free access within the station with the Step Free Access element of the station improvement. Whilst this element provides step-free access to the platform from the forecourt, it has not contributed a
Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496 69
Langley Station and Access Improvements Business Case
significant value to the monetised benefits despite accounting for approximately three quarters of the scheme cost.
8.9. As the funding for the Step Free Access element is already secured, and at no risk to SBC or TVB LEP, it should be argued that the Alternative Scenario provides a more accurate representation of the economic appraisal of the LEP’s investment.
8.10. The Alternative Scenario’s NPV of £1.219 million PV divided by the investment cost of £1.265 million PV will generate a NPV/k of 0.96. This represents a significant positive return on investment for the funding bodies.
8.11. The general station improvements and wider public realm improvements will encourage more people to choose walk and cycle as their mode of accessing the rail network, but may also encourage more people to use rail as their main mode for journeys.
8.12. Further social and environmental benefits have been derived from qualitative assessment, and whilst these will not provide a monetised benefit for use in this appraisal, the impacts are taking considered when deriving the Value for Money presented by the scheme.
8.13. The scheme is judged to have neutral impacts on noise and air quality as a result of the redistribution of traffic around the network, and also to have neutral impacts on landscape. It should be noted that although these are neutral impacts, the scheme would bring a number of slight and strong positive benefits to users of the transport systems including improved accessibility, safety and enhanced levels of journey quality and physical activity.
8.14. The combination of the positive return on investment and the qualitative non-monetised impacts would suggest that the Alternative Scenario scheme would achieve an overall High/ Very High Value for Money.
The Financial Case 8.15. The financial case concentrates on the affordability of the proposal, its funding arrangements and technical accounting issues.
8.16. Indicative costs for the on-station elements of the scheme have been provided by Network Rail and Rail for London, based on combined design, construction and risk assumptions. Any variation in the cost of these elements will be reflected in the total funding provided by those two parties and will not result in any requirement to request more funding from the TVB LEP.
8.17. The cost estimates for this Business Case therefore concentrate on the works being funded and overseen by TVB LEP/ SBC.
8.18. The quantified cost estimate in Table 8-1, (outturn cost) includes risk and inflation and shows the years in which the costs are incurred.
Table 8-1 Quantified Cost Estimate (millions, outturn)
Year cost are incurred Total Cost element (millions) 2016/17 2017/18 Preparation and management 0.085 0.086 0.171 Construction 1.100 1.100 Supervision 0.063 0.063 Risk 0.042 0.167 0.209 Total 0.127 1.416 1.543
Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496 70
Langley Station and Access Improvements Business Case
8.19. The funding package proposed for financing the Langley Station and Access Improvements scheme is made up of £1.5 million which will be contributed by the LEP and £0.043 million of SBC funding. £4.5 million is secured by Network Rail/ Rail for London for funding the Step Free Access elements of the scheme.
The Commercial Case 8.20. The commercial case has been developed by setting the procurement objectives, identifying potential procurement/purchasing options, assessing the procurement options in terms of pros and cons, confirming the preferred payment mechanism and pricing framework, and assessing how different types of risk might be apportioned/shared.
8.21. The council’s preferred route is for a Traditional procurement route via a dedicated tender exercise which will allow for a competitive tender, which will is comparable in programme terms with the Design & Build option, and will allow for high client control over specification and quality. SBC will utilise procurement procedures to source three quotes from suppliers and will follow a tendering process to establish the best value and quality supplier in line with the requirements which will be clearly set out by SBC as part of the tendering process.
8.22. A Risk Management Plan will be developed throughout the life of the project. Following confirmation of scheme funding, ownership of the risks will be allocated to those parties best responsible to manage them.
The Management Case 8.23. Finally the management case outlines the areas that should be covered as part of the Transport Business Case documentation. Similar projects, such as heart of Slough infrastructure improvements scheme and the Burnham Station and Access Improvements scheme, are referenced.
8.24. The dependencies are listed, such as timely agreement of contract variation, political backing and funding, as well as successful liaison with the local communities. As part of this case, governance, organisational structure and roles were determined. A programme/project plan and assurance & approval plan have also been outlined, as well as a monitoring and evaluation plan.
Atkins Business Case | Version 1.3 | 8 November 2016 | 5149496 71
Appendices
Laura Wells Atkins Limited Euston Tower 286 Euston Road London NW1 3AT
[email protected] 07812 319248
© Atkins Ltd except where stated otherwise.
The Atkins logo, ‘Carbon Critical Design’ and the strapline ‘Plan Design Enable’ are trademarks of Atkins Ltd.