EARL/S2/06/9/1

THE (EARL) BILL

FURTHER WRITTEN EVIDENCE

MEMORANDUM BY THE MINISTER FOR TRANSPORT AND TRANSPORT SCOTLAND

Introduction

This memorandum is in response to the Rail Link Bill Committee’s Preliminary Stage Report of 15th September 2006 which requested the following further written evidence:

• confirmation that the Minister for Transport and Transport Scotland will ensure that the fares policy for Edinburgh Airport Rail Link (EARL) will be designed to enhance social inclusion opportunities [paragraph 64];

• an update from Transport Scotland on the programme of delivery for rolling stock including the decision on electrification of the central Scotland rail network [paragraph 82];

• confirmation from Transport Scotland of whether EARL has continued to pass its quarterly reviews and whether the overall programme for delivering the numerous rail infrastructure projects remained on target to meet all their respective operating deadlines [paragraph 133];

• details from the Minister for Transport and Transport Scotland of the level of funding to be sought from each source including confirmation of the Transport Scotland committed level of funding [paragraph 270];

Fares Policy

1. The current fares structure is set out in the Franchise Agreement with First ScotRail, which was let by the Strategic Rail Authority and agreed with the Scottish Ministers. As a consequence of the Railways Act 2005, Scottish Ministers now hold direct responsibility for fares policy.

2. Improving quality, accessibility and affordability is a key theme in our National Transport Strategy and associated rail policy document, Scotland’s Railways. Scotland’s Railways states that

“We wish the fares structure to be easily understood by passengers, to encourage people to travel by rail and to be competitive, where possible, with other modes. We are currently reviewing fares policy and will seek to develop a new policy which encourages modal shift to rail.” (Scotland’s Railways, paragraph 7.14)

3. In taking this forward Scottish Ministers, through Transport Scotland, will develop a new policy in the course of 2007. The policy will take account

1 EARL/S2/06/9/1 of issues such as affordability and the enhancement of social inclusion and accessibility. Fares for EARL services will be part of this overall policy.

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Update on Delivery Programme for Rolling Stock

4. This update on the programme of delivery for rolling stock for the Edinburgh Airport Rail Link (EARL) and the decision on electrification of the central Scotland rail network includes commentary on:

• Rolling Stock and Journey Times

• Train Build Programme

• Internal Layout

• Timetable and depots

• Current status of electrification of central Scotland rail network

Rolling Stock and Journey Times

5. Transport Scotland informed the Committee in June 2006 that it was in discussion with train manufacturers regarding a fleet of rolling stock for the Scottish network and a range of projects, including EARL. It is Transport Scotland’s intention to procure new trains for the ScotRail Express network, i.e. Edinburgh to Glasgow and Edinburgh & Glasgow to both Aberdeen & Inverness, which will have a higher performance than the existing fleet.

6. The following services, based on the promoter’s future timetable, will call at the new Edinburgh Airport station:

• Two trains per hour in each direction between Glasgow Queen Street and Edinburgh Waverley via Falkirk High • One train per hour in each direction between Edinburgh Waverley and Aberdeen • Two trains per hour in each direction between Edinburgh Waverley and Dunblane via Stirling • One train per hour in each direction between Edinburgh Waverley and Inverness via Perth • Two trains per hour in each direction between Edinburgh Waverley and Fife Circle

All other trains will continue to use the existing routes.

7. We are confident that the new rolling stock can better the journey times contained within the EARL business case on all of the Express routes, including the introduction of the additional stop at the airport terminal. Our objective remains to identify enhancements on overall network performance and timetable to deliver improvements on all services, including the routes through the airport from Fife and Dunblane.

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8. During our discussions with train manufacturers, they confirmed that they have undertaken performance modelling of their products on the main Edinburgh to Glasgow route via the airport and Falkirk High using industry standard modelling techniques. Results from their simulation exercises have given Transport Scotland confidence that the journey times for this particular route can be achieved. Further discussions with manufacturers will take place to validate initial estimates.

Train Build Programme

9. Transport Scotland acknowledge the Committee’s expressed disappointment that the decision making process on the procurement of rolling stock for the ScotRail Express network, including services utilising the infrastructure created by the EARL project, was still “some way off”.

10. The rolling stock procurement process will commence in early 2007 and the procurement plan will be complete by the end of 2007, by which time the exact rolling stock fleet to be procured will have been determined. The specific tender process will start in early 2008 and be carried out with the co- operation of the current operator, First ScotRail. It is anticipated that this tender process will take approximately 6 months, resulting in the decision of award of contract being made in the autumn of 2008. At that time, a programme of train build will commence.

11. The train build programme will take 2 years, and this timescale is fully compatible with the scheduled date for commencement of service. The build programme includes the following:

Activity Start Finish Vehicle Design Period September 2008 October 2009 Build of 1st units January 2009 July 2009 Testing phase of 1st units August 2009 September 2009 Build programme for remaining units October 2009 October 2011 Testing phase of remaining units February 2010 October 2011 U K Safety Case testing on the track July 2010 October 2011 Phased delivery programme March 2011 December 2011 Vehicle & route training programme March 2011 December 2011 for all crew Initial delivery of trains March 2011 September 2011 Train delivery programme complete December 2011 Services Commence December 2011

12. Transport Scotland has been advised by the rolling stock supply industry that it has adequate production capacity to meet our needs and that of other potential orders.

13. The decision to commence the specific tender process in 2008 allows Transport Scotland to have further dialogue with the train supply industry on the most appropriate specification of rolling stock.

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14. Recent dialogue with manufacturers has also focussed on both the internal layout and potential capacity of the vehicle, as well as ensuring that they meet all mandatory legislative requirements, e.g. compliance to Rail Vehicle Accessibility Regulations (RVAR).

Internal Layout

15. Transport Scotland recognises that the internal layout should provide for the aspirations and requirements of the travelling public, including passengers with disabilities, whether they are travelling on business, commuting, with cycles or for holidays. Discussions with manufacturers have taken account of issues raised by the Committee concerning internal layout, with specific mention made of luggage space and ease of movement.

16. Transport Scotland is nonetheless aware that the various classes of rolling stock which will use the EARL infrastructure, including Edinburgh Airport, may not be able to satisfy the different needs of all of the passengers. Accordingly, there will require to be an element of compromise in internal layout to ensure that the most suitable layout is put in place. Transport Scotland will continue to look at this issue and further dialogue with the manufactures will focus in more detail on the internal layout.

Timetable and depots

17. The rolling stock procurement plan is linked to the number of services which will be carried out by those trains on a daily basis. There is, inevitably, a dependency of the procurement plan on the development of the working timetable to ensure the smooth operation of not only EARL services, but the network as a whole.

18. An operational network wide timetable is being developed, which includes new services introduced by the opening of the Edinburgh Airport station. This will determine the exact volume of vehicles to be procured for all express routes. This work is progressing well and will be completed in advance of the start of the procurement process.

19. Existing maintenance and servicing provisions are being reviewed to determine whether or not they are adequate to support the planned fleet increase. This review is at an early stage and will be developed in the next few months to focus on the exact nature of future depot requirements for the network as a whole.

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Current status of electrification of central Scotland rail network

20. In June 2006, Transport Scotland commissioned Network Rail to undertake a Guide to Railway Investment Projects (GRIP) stage 1 study to advise on the issues associated with the electrification of the Edinburgh to Glasgow route, via Falkirk High. This work is informing the development of the rolling stock procurement plan being prepared by Transport Scotland for the Scottish rail network.

21. The remit given to Network Rail by Transport Scotland was the first stage in the potential electrification project lifecycle. The GRIP stage 1 study applies to all rail enhancement and remedial work.

22. A draft of the study was delivered to Transport Scotland for consideration in September 2006 and considered four different route groupings:

• The core route between Newbridge Junction and Glasgow Queen Street, via Falkirk High • The diversionary route between via Haymarket North Tunnel and Gardens • The diversionary route via Falkirk Grahamston • The diversionary route between Greenhill Lower junction and Cowlairs via Cumbernauld

23. The initial GRIP 1 study from Network Rail concluded that it was possible to electrify the core Edinburgh to Glasgow route via Falkirk High and the identified diversionary routes. However, there are significant challenges to resolve around the existing tunnels on the core route, as well as the programming of the works.

24. The recently published policy document Scotland’s Railways recognises that electrification of Edinburgh to Glasgow could also provide additional benefits, including:

• Minimising emissions and reducing fossil fuel reliance; and

• Improving journey times.

25. Transport Scotland are in discussions with Network Rail to proceed to stage 2 of the GRIP process, referred to as the pre-feasibility phase. Amongst other things, a GRIP 2 study will identify the constraints on the rail network which may prevent delivery of electrification of the route(s), and will define the incremental capability that could be delivered by electrification.

26. Transport Scotland will continue to work together with Network Rail to progress thinking on the costs, benefits and feasibility of electrification of a range of routes. Transport Scotland anticipates being in a much better position to evaluate the options by the middle of 2007.

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Update on EARL’s Quarterly Reviews and Overall Programme of Major Rail Projects

27. As part of Transport Scotland’s project governance procedures, the Rail Delivery Directorate reviews each major rail project on a 4 weekly cycle throughout the year. Promoters report on progress each period and this information is analysed and discussed within Transport Scotland and with the promoter.

28. A panel of senior staff from Transport Scotland also review each major rail enhancement project every quarter. The review considers project performance over the previous quarter and discusses key issues for each project, tracks movement towards major milestones and follows up on specific action points identified at previous panel review meetings.

29. The Quarterly Panel Review is not a pass or fail review. The process is used to track progress and discuss key issues essential to the success of the projects. Subjects covered in detail with the EARL project promoter include progress on project time schedule, scope, costs, risks and opportunities.

30. All major rail enhancement projects are also subject to Scottish Executive Gateway Review, which examines projects at critical stages in their lifecycle to provide assurance that they can progress successfully.

Programme of Major Projects

31. The overall programme of major rail projects remains on course as outlined in the Ministers for Transport’s statement to Parliament in March 2006.

32. Information on each individual project is below.

Airdrie to Bathgate

33. This project proposes re-opening the Airdrie to Bathgate passenger rail link after 50 years of closure. The project also involves upgrading the existing Bathgate to Edinburgh and Airdrie to Drumgelloch line. Once completed, the line will be double-tracked and electrified throughout.

34. The estimated cost for the project is between £300 million and £375 million in outturn prices and is to be completed in 2010.

Edinburgh

35. Edinburgh's trams are a strategic investment in tackling congestion and promoting modal shift in Edinburgh. The proposed network will provide direct links from the city centre to key economic growth areas in the west of Edinburgh and .

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36. Transport Scotland is committed to funding £375 million plus inflation, a contribution of between £450 million and £500 million in outturn prices towards the capital cost of the tramline from Ocean Terminal to Edinburgh airport.

37. The project is to be completed in early 2011.

Glasgow Airport Rail Link

38. The Glasgow Airport Rail Link will connect Glasgow Airport with Glasgow Central Station via Paisley Gilmour Street Station. The Private Bill has recently been passed by Parliament.

39. The project is to be completed by the end of 2010 with a cost in the range of £170 million to £210 million in outturn prices.

Scottish

40. The Scottish Borders Railway project will reinstate a railway between Edinburgh and the Central Borders, at Tweedbank via Midlothian

41. The Scottish Executive is committed to providing £115m in 2002 prices, which translates to approximately £155 million in outturn prices. The project is to be completed in 2011.

Stirling-Alloa-Kincardine

42. The project will re-open approximately 13 miles of existing, disused and abandoned railway lines providing a passenger service to Alloa and a better freight route to Longannet Power station in Kincardine.

43. Work began on site in October 2005 and will be completed by summer 2007. The project will cost within the range of £65 million to £70 million, the range is due to mine workings and land valuation. Transport Scotland has committed £60 million to £65 million to fund the project.

Waverley Station Upgrade

44. The project will provide two extra platforms at Waverley Station which, combined with track re-laying and re-modelling, will accommodate four more train paths per hour through the west end of the station. The project will also deliver better access for passengers from Princes Street with escalators and lifts up Waverley Steps.

45. Work began on site in January 2006 and is to be completed by December 2007 within a cost of £150 million.

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Funding of EARL and Transport Scotland’s Contribution

46. Transport Scotland will be the primary funder of the EARL scheme. As outlined in the Promoter’s Estimate of Expenses and Funding Statement other funding contributions are expected from other sources, including the potential for developer contributions in future.

47. The promoter has already successfully managed to secure TENS European Community funding of 2 million euros towards the development of the project. It is anticipated that further applications for contributions to delivery costs will be made.

48. The Promoter and Edinburgh Airport Limited (EAL) have signed an agreement in relation to the EARL project which will provide a number of benefits to the EARL project:

• EAL will deliver and pay for the pedestrian link structure and associated transport interchange between the proposed airport railway station and the existing airport terminal building and maintain this once the rail link is operational. The cost of this structure is estimated at £3 million.

• If amendments proposed to the Bill by the promoter are accepted, for a nominal payment Tie will be able to enter into a 250 year leasing arrangement for the land owned by EAL which is required by the project. This means that the compulsory purchase of airport land and the associated compensation would not be required.

• The agreement has secured EAL’s continued and direct involvement in the project. EAL’s involvement will significantly reduce financial risk to the Promoter. While this cannot be quantified specifically this is a major long term benefit to the EARL project. Discussions continue with BAA, and its new owner Ferrovial, about the extent of their involvement in the delivery phase of EARL.

• EAL have already incurred significant costs in adjusting the design of their new South East Pier to accommodate the EARL alignment. This has had the benefit of reducing construction costs for EARL.

49. The final value of the EAL contribution will be identified through the completion of the detailed design work currently in progress.

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