West Railway PLC

Business Plan 2017-2019

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Contents

Page

Chairman’s Foreword 3

Introduction and Purpose 5

Chapter

1. Setting the Context: Achievements in 2016 8

2. Operations and Strategic Projects 9

3. Commercial and Marketing 11

4. Infrastructure Engineering 13

5. Mechanical Engineering 15

6. Regulation, Safety and Compliance 17

7. Human Resources and Training & Development 19

8. Finance, Business Development and Information Technology 21

9. The Corporate Organisation 24

Appendices

1 Infrastructure Engineering Costed 3 Year Plan

2 Mechanical Engineering 10 year Locomotive Supply Plan

3 Safety Audit Committee and Safety Project Group Work Programmes

4 2017 Revenue Budgets – Summary Version

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Chairman’s Foreword

This is our latest three-year business plan derived from the Corporate Plan approved by the Board in 2014. It has been developed through extensive discussion and engagement across the Board and senior management team and represents the firm objectives for 2017 together with intentions and aspirations for the remaining two years.

Of particular significance in this Plan is the strategic focus being given to infrastructure renewal and investment alongside ambitious plans to develop the Railway at both and . In order to make these plans a reality, the Board has also adopted a radical new approach to raising money for large-scale projects alongside more traditional fundraising activities together with joint fundraising with our partners.

Equally important is the priority being given to continuous improvement in safety management with extensive programmes of work underway across the PLC and with partner railway organisations to ensure that competence, compliance and review are increasingly an integral part of everybody’s business on the WSR.

The PLC Board is also pleased that the long-running saga over the freehold is now at an end. have executed a legal agreement with us ensuring that if the freehold were ever to be sold in the future, it must be offered to the WSR through the Partnership Development Group comprising representatives of the whole railway ‘family’. Only a bid providing a suitable means to hold the freehold and recommended by PDG and endorsed by the independent Office of Rail and Road and the Association would be allowed to proceed, Furthermore, SCC have agreed that we can start to offer licences, leases and memoranda of understanding to our partners up to the remaining term of the lease, which has some 73 years left to run.

With the new Board of Trustees of the Railway Association, we are committed to establish effective working relationships for the benefit of the railway as a whole.

2016 saw the end of an era on the WSR with the retirement of Andy Forster as Chief Mechanical Engineer. We welcome Dave Horton as his successor and look forward to realising the benefits of his work and new thinking within Mechanical Engineering and across the Railway as a whole.

This Business Plan will build on and strengthen good external working relationships with our local authorities and other key agencies. It is very important for the sustainability of the WSR that local authority plans and policies reflect its role in relation to economics, tourism and leisure in Deane and West Somerset. The Taunton Deane District Council review of its Core Strategy and Infrastructure Plan will provide an early opportunity in 2017.

Whilst having many opportunities to continue developing the sustainability of the WSR, we will continue to face many challenges, not least of which is the economic environment we find ourselves in. The financial section of the plan gives more details of how we propose to address these.

Finally, without our customers, paid staff and volunteers, there would be no business and so we continue to recognise their contribution to the as we move 3

SW/Final February 2017 through what will be a challenging, but ultimately we believe, rewarding next three years of the business. The Board of the PLC thanks Steve Williams and all contributors for their inputs, and we will get on with its implementation.

John Irven

December 2016

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Introduction and Purpose

1. The three-year business plan is the second to be derived from the Corporate Plan 2014- 2023. The Corporate Plan set out the strategic vision for the WSR over that period which is:

"To continue to be seen as a leading heritage, preservation and tourist railway, contributing to the economic well-being of West Somerset and providing a high- quality experience for our customers, staff and volunteers. Working with external partners, to grow and deliver the sustainability of the WSR and to ensure that the railway can be operated safely with facilities and infrastructure that are fit for purpose".

This means:

1. Enhancing the quality and attractiveness

of the experience offered. 2. Enhancing the quality and capacity of the railway’s infrastructure. 3. Strengthening the ability to continue to provide a reliable steam hauled passenger operation. 4. Succession planning with the appropriate resources for all roles and responsibilities on the railway. 5. Ensuring the safety, compliance and regulation are adhered to at all times. 6. Improving the way we engage, support and value all who work on the railway. 7. Investing in the care of heritage buildings, vehicles and collections. 8. Working to strengthen the railways finances to secure long-term sustainability.

2. In order to do this and to continue the focus on quality, safety, customer and staff experience these aims must be underpinned by the following corporate goals:

• Ensure that the railway infrastructure is of high-quality consistent with current and future standards of compliance and operation. • Work with partners to strengthen the heritage and educational role of the railway. • Enhance the quality, range and attractiveness of the WSR to its existing and future visitor base.

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• Strengthen the sustainability of the organisation including its financial position over the lifetime of the Plan. • Continue to provide an overarching steam hauled railway operation. • Improve communications and engagement across the railway including, staff, key stakeholder organisations and groups. • Develop the railway workforce and secure greater alignment between the interests and skills of both paid staff and volunteers and the needs of the railway. • Strengthen the capacity and structure of the corporate organisation to deliver the aims and objectives of the Plan. • Maintain our position as a major player in the local economy and seek to find ways of improving commercial performance.

3. The Plan therefore sets out the aims, major activities and work programmes for the West Somerset Railway over the next three years in response to the strategy. The purpose is to give substance and direction to those strategic intentions over a three-year cycle which is updated on an annual basis. 2017 represents the first year in the latest annual planning cycle. For consistency, the Plan is laid out in the same format as the Corporate Plan so that readers can see a direct relationship and correlation to the implementation of the 10 year vision. The Board has agreed that it will revisit the vision, values and strategic objectives of the PLC during 2017 with the new version being available for the 2018 refresh document.

4. The Plan has been reviewed and refreshed since July 2016 alongside the budget and priority setting process undertaken as part of the internal PLC business management activities for the following operational and commercial year. This has ensured that there is a clear link between the operation, maintenance and development of the railway and the means by which this will be achieved. The same process and outline timetable will be adopted in 2017.

5. As with previous Business Plan, the narrative sets out not only the work programme that each department/function will undertake during 2017, but also the plans and proposals for longer term development.

6. The WSR can only be successful if the PLC is able to apply sound business principles and practice to the way in which the railway is run. This Plan again provides clarity as to the organisational, commercial, financial and decision-making processes which the PLC Board is putting in place to underpin and support the management team in the day-to- day operation of the WSR. Crucial to these activities will also be the further development of partnership and commercial arrangements

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with WSR support organisations and other groups. These are clearly articulated in the Plan.

7. The five overarching objectives to the 2017-2019 Plan remain as before:

• Continuous improvement of the tourist, leisure, heritage preservation "offer" designed to enable the WSR to enhance overall passenger numbers, improve commercial performance and increase income levels on a sustainable basis. • As the PLC moves through its restructuring process, to ensure that it has the right balance and mix of staff in both paid and voluntary roles over the next three to five years and has a clear plan for replacing people in business critical functions. • To improve the ability to obtain inward investment over and above current activities such as to be able to afford the cost [which is increasing] of major projects including renewal and development across the railway as set out in the Corporate Plan. • To maintain our focus on continuous safety improvement and to ensure that the PLC has the right culture, activities and programmes in place to do so. • To deliver a sustainable and affordable business model that can ensure the ongoing success and operation of the railway.

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Chapter 1: Setting the Context: Achievements in 2016

8. 2016 was a busy year for the PLC and the railway as a whole. Some of the significant achievements in relation to the Business Plan objectives were:

• Agreed arrangements with Somerset County Council and Partnership Development Group for the future management of the sale of the freehold of the Railway should it ever be considered for sale. • Re-established working arrangements and relationships with West Somerset Railway Association following their AGM and the election of a new set of Trustees. • Secured the appointment of a new Head of Mechanical Engineering in David Horton. • Made significant progress with the completion of Williton Loop which will be finished in 2017. • Re-established the Williton Project Board with the work moving forward under the working brand name “ at Williton” to develop proposals for both the station and the strategic engineering centre. • Secured support for the options and formal consultation on the Southern Gateway proposals at Bishops Lydeard to be undertaken in early 2017. • Reached agreement with West Somerset Railway Association on the transfer of operational management and marketing of the Quantock Belle dining set from 2017 onwards. • Enhancing our commercial reputation through being nominated as one of three Heritage railways which will host Flying Scotsman in 2017. • Initiating a new and more vigorous approach to safety management, the details of which are set out in the relevant Chapter in the Plan. • Agreeing a new approach to investment for major projects which will be taken forward in 2017 and beyond. • Putting infrastructure investment on the same footing as locomotive restoration in relation to identifying dedicated funds for maintenance, renewal and enhancement, • A full year implementation of the new portfolio model for Board Directors with a review in December 2016 to enable the Board to take forward its responsibilities during the period of this Plan. • Work on organisational development of the Service Departments including a review of the Operations Department which will be implemented during 2017.

9. In the last Plan, the objective was to re-establish passenger numbers at around 200,000 per annum. Projected figures for the end of 2016 suggest that the WSR will have carried around 186,000 passengers during the year. We will be revisiting the indicative targets for passenger numbers during 2017 to identify revised targets. As in the last Plan, the PLC will continue to critically examine the activities and events that optimize both the benefits of running a preserved railway with the opportunities for improved business delivery. This will include a move away from historical informal arrangements with railway partner organisations to more formal commercial relationships which reflect the realities and costs of the diverse range of activities that occur on the WSR. The PLC has, through the 8

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leadership of Chris Bolt as Finance Director, become more cost-effective in its stewardship and use of resources together with being more responsive to the changing nature of markets and the different and expectations of customers.

Chapter 2: Operations and Strategic Projects

10. The 2017 timetable substantially retains the core operating period from 2016.There are however a number of significant changes to special event activities and the operation of the Quantock Belle dining train. The PLC has now had confirmation that Flying Scotsman will come to the railway twice in 2017, once on a charter in May and then again for a week’s visit in September. The latter will particularly stretching Operating staff and resources (as well as other departments). The contract for operating Thomas the Tank Engine was not renewed and consequently there will be no event in 2017. However there is a truly exciting programme of events on the railway this year as set out in the Commercial and Marketing Chapter below.

11. There will be a renewed focus on running train services as specified by the commercial department. It is recognised by both Operations and Commercial Services that there needs to be improved coordination between all the Departments across the PLC in relation to the design and content of the season timetable and its relationship to commercial activities, infrastructure requirements and locomotive and rolling stock availability. Further work has been undertaken to strengthen the arrangements to improve commercial performance for the 2017 operating season. This will continue to be overseen by Operational Executive Committee and the Commercial and Marketing Committee.

12. The Department expects to continue to run Operations largely staffed by volunteers supplemented by core number of paid and experienced personnel. The Review of the Operating Department will be completed during 2017 and, subject to staff consultation, final approval and financial affordability of any resource proposals will be implemented from Spring 2017 onwards. The Operating Department Review has also identified the need to strengthen the training regime within Operations. The aim is to make the WSR Operating Department one of choice which is fulfilling and desirable for railway volunteers looking for this particular type of work

13. As part of the Review, Operating Department accommodation at will be reviewed over the period of the plan and options identified for alternative improved solutions which will be subject to business case proposals before 2019.

14. Operations will look to implement a formal apprenticeship scheme subject to recruitment and resources. This will be linked to the wider approach to apprenticeships summarised in the Chapter on Human Resources below.

15. A new rulebook was issued in March 2016. This will be regularly reviewed and updated as required over the period of the Business Plan. A new Rules Panel has been established to oversee this process. 9

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16. In conjunction with Commercial Services and station staff, work will be undertaken during 2017 on defining the role of station staff and where they will sit in relation to the emerging revised structures for the company. (See also Governance and the Corporate Organisation below).

17. Following the publication of the West Somerset Railway Association Development Plan and its endorsement by Association Members at their October 2016 AGM, the PLC is engaged in discussions with regard to the future management of the Bishops Lydeard station site (to revert to overall PLC management) including separation of operational control from retail and catering activities. The aim is for arrangements to be concluded in 2017 and implemented before the start of the operating season.

18. Further work took place in autumn 2016 to advance the feasibility study for the the pilot project to run regular trains between Taunton and Bishops Lydeard. The focus in 2017 will be on final timetabling, rolling stock availability and resource/affordability plan. Subject to the availability internal PLC capacity and availability/funding for external expertise in a number of key project areas and GWR agreement, a decision on final proposals for the pilot will be made by the Working Group (GWR, NR, SCC and TDBC with the PLC) during 2017. The feasibility study will then be presented to the PLC Board.

19. Southern Gateway Project Board will continue preparation of strategic proposals for the development of the Bishops Lydeard site. This is a 5 to 10 year programme of work which is dependent on capacity, external funding and continued commitment of all partner organisations involved in the programme. A consolidated planning brief, project schedule and outline phase 1 master plan has been completed together with a prospectus for future customers and potential investors. Formal consultation is being undertaken between January 2017 and April 2017 with the outcome and final recommendations on the preferred option and content being put to the PLC Board and other partners for approval. 2017 will also see further work on Phase 1 including completion and occupation of the Brunel House replacement, drafting of planning consents covering detailed plans for operational sidings, further locomotive facilities, further master plan development and the preparation of initial bids for external resources from a number of funding bodies. This will include the initiation of a formal fundraising appeal.

20. A key initial enabling project is the proposal to enhance the current Gauge Museum with a bid for funding to the Heritage Lottery Fund. This work is being led by the West Somerset Steam Railway Trust. The bid will be submitted in early 2017 and will also provide the Project Board and the PLC with experience of how to shape future funding proposals both for Southern Gateway and other major projects.

21. At the end of 2016, a similar process was established for the development of Williton as a strategic engineering centre and its preservation and enhancement as a Brunel country passing station. It is intended that a consolidated planning brief, project management arrangements together with consultation on emerging proposals will all be progressed

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such that they are finalised in 2017 for further phased development from 2018 onwards. This may include a Heritage Lottery Fund bid for alternative use for the .

22. As part of the move of the Commercial Services team to the new “hub” building adjacent to Minehead Station, consideration will be given to the opportunities for improving the way in which the main station building is used. This will be undertaken in conjunction with the Friends of Minehead Station and, subject to agreement, a business case will be developed with proposals for consideration across the PLC and railway partners.

23. As part of the implementation of the Volunteer Development Strategy, the Southern Gateway Project Board will also begin to consider the options for the provision of volunteer accommodation at the southern end of the railway.

Chapter 3: Commercial and Marketing

24. Commercial Services will play an increasingly important role across the PLC during the lifetime of this Business Plan as the Company continues to underpin its heritage and tourism work with robust business principles around growth and financial sustainability.

25. At the end of 2016, the PLC began the development of a specification for the new website which had been approved by the Board. Following appointment of the new website provider, implementation has moved forward with the new website going live in February 2017.(see also Information Technology below). This will give a major boost to the scope and range of the PLC commercial and marketing activities which when combined with a major push on use of social media, is intended to widen the “reach” of the WSR in terms of both existing and potential new markets.

26. Aligned with this will be the start of work on a new Marketing Strategy. This was held over from the previous Business Plan due to capacity constraints. It is intended to start work during 2017 with completion by 2018. A similar timescale will be adopted for the new Commercial Strategy. Both of these activities will be led by the Head of Commercial Services and overseen by the Commercial and Marketing Committee.

27. Technical problems with telephones and IT meant that the intended 2016 move of the Commercial Services team to the new Hub building adjacent to Minehead station was delayed. Subject to these difficulties being resolved, the move will take place in early 2017 and provide a much-needed improved and separate environment within which to operate. This will free up the existing accommodation in the main station building. This may require business case development if significant changes are envisaged. In accordance with an agreement reached with the Friends of Minehead Station (FoMS), a project he will be established in autumn 2017 to examine the options for achieving this and any other potential heritage and operational improvements. Depending on the outcome of the project, a business case will then be developed for consideration by the Board. FoMS have in principle identified a capital contribution to this work.

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28. Following any changes agreed in 2016 for the 2017 operating season, as part of the commercial services strategy there will be a formal review of ticket pricing policy with the outputs applied from 2018 onwards.

29. The review of buffet car utilisation and a business case for a fourth buffet car is now no longer required

30. In order to provide the evidence base for driving commercial priorities and strategic intentions, the PLC would like to undertake formal customer surveys and look to make this an annual activity from 2017 onwards. This will be subject to staff capacity and financial resources to fund the work.

31. The PLC will, following agreement with the West Somerset Railway Association, assume responsibility for operating the Quantock Belle dining car train from January 2017. These arrangements will be reviewed during the year with a view to coming to a longer term commercial agreement from 2018 onwards. The PLC has also been offered a Pullman dining car finished to a high specification which, subject to option appraisal and business case approval, could be available to the WSR by autumn 2017 at the latest. Both the Quantock Belle and potentially the Pullman dining car (Lydia) will form part of the branding and customer offer review work being undertaken by the Commercial team and the Quantock Belle train management.

32. Following work undertaken within the PLC in 2016, strategy and budget responsibility for Special Events has passed to the Head of Commercial Services. The role of Special Events Planning Team will in future be an operational one focusing development of detailed plans for designated events. 2017 will also see a review of the range of Galas and special events currently hosted on the railway to ensure that these remain relevant to customers, enthusiasts and staff and that they reflect the business, heritage and commercial objectives of the Company .

33 . The work to review storage and environmental health requirements in relation to catering services will now take place in 2017.

34. There will be new storage capacity provided for Catering Services immediately behind the Shop and Cafe buildings at Bishops Lydeard station (alongside similar facilities for the Association). This will be implemented as part of the Brunel House 2 arrangements and be operational by March 2017.

35. 2017 will be a special year for the West Somerset Railway with Flying Scotsman visiting in May 2017 on a charter over a two-day period. In addition, there will be a longer visit in September 2017 over a week’s period potentially involving a second large locomotive. In light of the experience of other railways in hosting this iconic locomotive, the PLC will be at full stretch in terms of ensuring that both preparation for and 12

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management of the visit goes as smoothly as possible. The Company will be looking to work with its railway partners, local authorities and other agencies to maximise the enjoyment for enthusiasts, general public and staff alike for this major special event.

36. The new Head of Mechanical Engineering has signalled his interest and support for the introduction of formal Shed Tours at Minehead. Commercial Services will be discussing this with him and his staff with a view to initiating such tours during 2017 subject to due

diligence including appropriate safety and other considerations.

Chapter 4: Infrastructure Engineering

37. The importance of ensuring that the PLC has a safe and sustainable infrastructure has never been more important than in the current operating environment for heritage and preserved railways. The PLC will continue to give greater priority over the lifetime of the business plan to establishing these arrangements through the development of a longer term Integrated Infrastructure Strategy. This will ensure that all aspects of infrastructure, estate and facilities for which the organisation is responsible have clear proposals for planned preventative work and renewal, capacity enhancement, replacement/upgrading on a systematic basis consistent with agreed priorities, risk assessment and available funding. This is carrying forward work began in 2016 and be led by the Head of Infrastructure supported by the PLC Board Director Infrastructure working across the organisation and with other support groups across the railway.

38. In order to translate policy intentions into affirmative action, the PLC Board, as part of its business planning and budget preparations for 2017, has formally approved the establishment of an Infrastructure Fund and resource mechanism on a similar basis to Locomotive Restoration. It is intended that any surplus income derived from the visits of Flying Scotsman to the WSR in 2017 will be a first contribution to that Infrastructure Fund. Furthermore, the Board has (see Finance Chapter below for details) approved a new Investment Policy which is intended to be the vehicle for raising external finance for the WSR including significant infrastructure projects. Application of this new policy will start in 2017.

39. As was stated in the previous Business Plan, the WSR has previously had an annual intention to renew/replace around a quarter of a mile of track. This still needs to be increased. Point work replacement will continue to be, because of cost, undertaken on a specific project basis only. The West Somerset Railway is a mixture of bullhead and flat bottomed rail. The Company has in more recent times installed more new flat bottomed rail on the main running line with bullhead rail being retained for station areas. The other alternative is continuously welded rail [CWR]. The cost of CWR has become progressively more affordable and cost-effective if one takes into account the fact that maintenance costs are up to 50% less than the bullhead rail equivalent

40. The level of track relaying is currently insufficient to keep the infrastructure serviceable. 1 mile re-ballasting and re-sleepering per year and rail replacement of between 1/4 and 1/2 13

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mile continue to be the targets for the Company over this Business Plan period, in order to maintain a 23.5 year renewal interval span. In addition, the wider infrastructure renewal programme will reflect the fact that sleepers are widely accepted to have a 20 year life span, fish plates 2 to 5 years, ballast 20 years [if well drained] and rail between 25 and 50 years.

41. The 3 Year Costed Infrastructure Programme [CIP] introduced in the previous Business plan has been updated and is attached as Appendix 1. The replacement of Brunel House and associated infrastructure developments on the Station Farm site at Bishops Lydeard will be completed by early 2017 and all office, infrastructure works and storage facilities and activities transferred.

42. The Minehead Relay Project is the single affordable major infrastructure renewal scheme for 2017. This will take place between January and March 2017 and is being managed through a formal project management and planning process. Discussions continue with Somerset County Council with regard to the replacement, funding and programming of the equipment and supporting infrastructure at Seaward Way.

43. In anticipation of additional investment resources being made available through the Infrastructure Fund, arising from the three-year costed programme of the following priorities for funding: - Minehead Engine Shed roof renewal - Cottiford/Woolston drainage improvements - Doniford Halt curve and drainage relay completion - slope stabilisation - Heathfield relay completion - Castle Hill/Doniford stream erosion works - Number one steel bridge - bank stabilisation - Equipment replacement/enhancement (Ford transit one ton pickup, GreenMec Chipper, Hedge trimmer attachment for RRV).

44. All of these schemes will be dependent on development and approval to business cases and the availability of resources to carry out the work. The ability to sustain, improve and develop infrastructure on the railway has become increasingly crucial and of a higher priority as the overall condition of the number of key locations and facilities along the WSR has now started to deteriorate to an unacceptable level. In order for long term planning, priority setting and positioning of resources to take place, it will be essential that, the 10 year Infrastructure Strategy is completed and signed off by the Board during 2017.

45. Another important part of the Departments work over the Business Plan period will be continued management of the major departmental risks in relation infrastructure including general wear on and defects due to track age, heavy use and poor formation, soil slippage drainage and erosion to cuttings and embankments and bridge and culvert degradation due to age, corrosion and masonry joint voids. 14

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46. In order to be able to deliver these programs and activities, development of formal arrangements for improved training and work supervision for professional practice within Infrastructure Engineering will be given greater focus and priority. In order to support this and other work, 2017 will see the introduction of new technical and administrative support arrangements within Infrastructure Engineering.

47. Infrastructure Engineering will also be undertaking an inspection programme undertaken in 2017 followed by the development of a building repair and refurbishment programme during 2018. A similar process will be followed in relation to a comprehensive bridge assessment programme to provide definitive permitted wheel loadings to be completed during 2017.

48. In order to prepare for future major projects, the Department will establish a more rigorous works priority assessment process in order to provide improved technical backup to business case development and project management arrangements for approved schemes.

49. Commissioning and occupation of Brunel House replacement facilities will be complete by March 2017. This will be the southern location for Infrastructure Engineering offices and main base for Signal and Telegraph and RAMS. will continue to be the main Infrastructure Engineering base for the PLC.

50. In relation to Signal and Telegraph [S and T] the annual programme of renewal and repair will continue as part of the integrated CIP. Some of the challenges facing Signalling over the next five to 10 years as set out in the previous Business Plan remain [on which progress is already being made] and they involve:

• Managing risk in relation to not renewing equipment as quickly as it is wearing out, • The need for adequate funding to enable engineers to carry out the necessary level of spot renewals. • The need for a more robust system to respond rapidly to failures. • Striking the right balance between authorising and funding enhancements and the ability to maintain them. • Ensuring that statutory planning bodies recognise the risks and requirements associated with the need to upgrade and maintain infrastructure immediately adjacent to the railway and the need to consult WSR PLC on a regular basis.

Chapter 5: Mechanical Engineering

51. For the PLC, the principal locomotive engineering and rolling stock facilities together with a carriage maintenance shed are at Minehead, supplemented by the locomotive servicing compound at Bishops Lydeard. Minehead will continue in its present role for the foreseeable future.

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52. However, as indicated in the previous Business Plan, the current concentration of the main locomotive and carriage maintenance facilities at the northern end of the line is a major constraint on operational flexibility, productivity and effectiveness. Work was therefore undertaken in 2015/16 to install an ash shelter and provide a roof together with other supporting facilities at Bishops Lydeard. This is the first phase of work to upgrade over the next few years, subject to resources, to a full locomotive running shed in order not just to cater for the WSR fleet, but also for visiting locomotives that require light maintenance regimes and inspections prior to returning to their original destination. This will be undertaken as part of the overall Southern Gateway development programme.

53. The railway currently also lacks dedicated facilities for locomotive/carriage painting. With the restarting of the Williton Strategic Project (Brunel at Williton), provision of such facilities on the Williton site will be part of the consolidated planning brief.

54. With the appointment of the new Head of Mechanical Engineering, a review of the locomotive and rolling stock position and strategic requirements was initiated in late 2016 It is intended that final proposals on strategic locomotive and rolling stock requirements will be finalised in early 2017 for presentation to the Board alongside a costed implementation plan. Current working assumptions envisage the need for seven available operational locomotives at any one time giving 85% availability. A copy of the outline locomotive supply plan up to 2025 is provided as Appendix 2. Locomotive details are anonymized for commercial in confidence considerations.

55. Over the lifetime of the Plan there will be a business case developed for the provision of improved staff accommodation in the locomotive compound at Bishops Lydeard.

56. Building on the requirement for a paint shop and other mechanical engineering elements of the PLC approved planning brief the new Head of Mechanical Engineering will contribute to the development of detailed proposals for PLC use of facilities and infrastructure at Williton. This will be part of a wider set of commercial discussions with other organisations who use Williton site, principally the West Somerset Railway Association, West Somerset Steam Railway Trust and Diesel and Electric Preservation Group in relation to the operational utilisation of space and facilities on the site. This will be followed by the development of formal leases and licenses with the PLC.

57. The new Head of Mechanical Engineering, will as a priority, looked to develop the future organisational structure for Mechanical Engineering as part of the Organisational Development Phase 2 work being undertaken across the company (See Governance and the Corporate Organisation) . Arising from the General Administration review in 2016, Mechanical Engineering will also benefit the appointment of an Administrative Assistant in 2017 who will be responsible for supporting the Department including project coordination, general administration and business system development .

58. The Mechanical Engineering Strategy for the PLC will be prepared during with a first draft ready for consideration in early 2018. 16

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59. The PLC recognises the need to improve the external condition of its carriage fleet and also internally of the windows. A new cleaning contract is being negotiated for 2017 and the Head of Mechanical Engineering will be preparing proposals for a new carriage painting programme contract and funding arrangements for consideration by the Board during 2017.

60. There will also be formal discussions with the West Somerset Railway Steam Trust in relation to the use of their heritage rolling stock under commercial contract as carriages become available for operational use.

61. Mechanical Engineering will coordinate and oversee the work on the restoration of 4110 which will be a volunteer led project. Fundraising for the project will be undertaken in conjunction with the West Somerset Railway Association locomotive restoration programme for 4561 and 7821.Discussions are in the process of being finalised on process, engineering arrangements and fundraising alignment for the three locomotives.

62. Carried forward from the previous Plan, work will continue to improve the PLC purchasing policy especially for safety critical components.

63. Work on the DMU has begun at Williton with a programme of light maintenance and other repairs. This is due to be completed in March 2017.

64. An important activity that was deferred from the previous Plan but will be reactivated from 2017 onwards is the review of the rolling stock asset register. This will determine future requirements and prioritisation for renovation/restoration of WSR coaching and wagon stock beyond the current locomotives only programme. The aim is to reach agreement with all external owners on the future of stored stock on the railway followed by a programme of proactive restoration or disposal.

Chapter 6: Regulation, Safety and Compliance

65. The PLC has a responsibility to ensure that all regulatory, safety and compliance requirements are dealt with in an efficient, sensible and effective manner. This includes the standards to which the PLC must to adhere in relation to maintaining the railway in a safe and acceptable way and in accordance with legal requirements.

66. In pursuit of this objective and as part of implementation of the new Board structure, the PLC has appointed a new Director for Safety and Audit who chairs the Safety Audit Committee of the Board. In order to strengthen its commitment to review and delivery of operational safety requirements, the Board has also established a Safety Project Group under the Chairmanship of the Director Governance. Both Committees have detailed work programmes which they will be continuing to implement over the lifetime of the Business Plan. The immediate programmes for 2017 are included as Appendix 3.

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67. It has not proved possible to appoint a new permanent PLC Safety Officer during the period of the previous Business Plan. Renewed attempts will be made in 2017 alongside the development of proposals for and appointment to the role of PLC Fire Officer

68. The external review of the Safety Management System was undertaken in 2016 against the background of a number of safety incidents on the railway. This then generated a second external review by Richard Lemon. The second Lemon Report was accepted by the Board and implementation of the Report in relation staff competency and its assessment across all safety critical functions in each Department is underway. Management of this work is through the Safety Project Group with oversight and assurance from the Safety Audit Committee.

69. 2017 will see the introduction of annual safety tours, safety checks, spot checks (unannounced) and self-audits. This regularisation of existing part work into a measurable system that will be a cornerstone of the ongoing assessment of managers will be supervised by the Safety Audit Committee on behalf of the Board . This will include engagement of PLC Board Directors in such activities.

70. Work is underway on the continued preparation, consultation and development of a West Somerset Railway Safety Handbook. This is due for completion by the end of 2017 with implementation in 2018.

71. There will be an ongoing review of the SMS system in 2017. The Company will use this to determine the need for any updating and refresher training for staff arising from identified in-house shortfalls and/or subsequent changes in legal or regulatory requirements. This process will be biennial with the review completed by December in each of the subsequent Business Plan years.

72. Following Business Case approval, the PLC will update in-house practice around implementation of the Safety Obligations for Working at Heights including ladder inspections and working on top of locomotives. Initial work will be completed by September 2017 and then subject to regular review.

73. With the finalisation and introduction of the updated Rulebook, training and review arrangements to ensure that all safety critical staff are operating correctly will be established. This will be an annual programme,

74. Safety Audit Committee will further develop its safety risk register and there will be read across and consolidation with the corporate risk register.

75. A particular focus in 2017 will be ensuring the safe management of the planned visits of Flying Scotsman to the Railway. Specific attention, based on the experience of other railways, will be given to the need for crowd control and management of trespass on the Railway. Full assistance will be given to the Visit Project Manager in all aspects of Safety 18

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as part of the special Project Team established to plan, prepare and run the event programmes.

76. During 2017, the PLC will be reviewing its Lineside Passes policy and will be implementing new responsibilities in respect of the visits of Flying Scotsman.

77. As part of the preparation for the biennial Audit in 2018 Safety Audit Committee will be starting to look at the use of all portable and none portable machines and tools across the Railway together with the and the competency of all staff that use portable and fixed power tools and machines.

Chapter 7: Human Resources and Training & Development

78. The WSR is a people organisation and its workforce is a key asset without which Railway would not function. There are around 50 paid staff who are supported by up to 1100 regular volunteers [including the Company Board of Directors]. Paid staff are generally to be found in the management team, engineering and office support /commercial functions. Volunteers are engaged in every aspect of the work of the railway. The PLC is committed to ensuring that all staff at every level of the organisation can get the best out of their time spent on the railway and that we make the best use of their skills and contributions.

79. As with many other preserved railways, the original enthusiasts and volunteers who had steam experience that helped create the WSR in the 1970s are reducing in number. The current economic climate may impact on the ability of people to give their time either free of charge or at the time or place that the WSR would like.

80. The costs of volunteering are increasing particularly in respect of travel and/or accommodation. This is something that the PLC needs increasingly to consider. West Somerset has a low pay threshold compared to other areas in the West Country and more widely. The ability to attract and retain good quality paid staff with the necessary skills and expertise is therefore a continuous challenge. Workforce capacity i.e. has the WSR got enough staff, is becoming an issue with the demands of maintaining and running the railway to the frequency and intensity required.

81. Succession planning and the ability to attract younger paid staff and volunteers to the railway will become increasingly important. The WSR has to consider the incentives and drivers necessary to attract the right kind of new people. Historically, the railway has largely encouraged people to work in the areas that individuals wish to specify. Experience demonstrates that the WSR perhaps has to be more directive/incentivising in terms of deploying workforce resources to where the demand is greatest. There are three initiatives underway to address this significant challenge:

• Review of the Operations Department and implementation of new roles, posts and structure.

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SW/Final February 2017

• An overarching review of the rest of the Railway Departments within the PLC called Organisational Development 2. This follows the Board realignment in 2015 and, subject to consultation and final Board approval, will be implemented in full progressively during 2017 and beyond. Elements of this wider work are already being dealt with including the administrative support to Departments. • Following Board approval, the implementation of the Volunteer Development Strategy.

82. The Training and Development function joined the HR Department in 2015. Unfortunately, it has proved difficult to acquire a Training Officer with the right background skills and programme management abilities. Efforts will be intensified in 2017 to appoint the right person to lead this important area of PLC activity. They will have a key role in relation to rolling out the initiatives summarised in the previous paragraph. This will be accompanied by the recruitment of a Volunteer Development Manager, one of the key recommendations from the Volunteer Development Strategy.

83. Further work will be undertaken to try to secure a substantive Board Director appointment for the Human Resources portfolio. This will be accompanied by a business case for the appointment of a salaried Head of Human Resources to provide additional capacity and leadership for the HR team. Subject to Board approval, recruitment to this post will be programmed for early 2018.

84. A formal review of the PLC pay structure will be undertaken during 2017 following completion of Organisational Development 2 restructuring across the company. This will be accompanied by a companywide staffing plan will be produced with agreed succession planning arrangements with Heads of Service and the General Manager.

85. Coordinated through the newly established Human Resources Committee, work will continue on the development, agreement and implementation of HR policies and procedures. HR Committee has also developed a business case to strengthen the functionality, usefulness and application of the Simply Personnel system with, subject Board approval, changes being made from early 2017 onwards. This will strengthen the ability of managers to manage their Departments and provide more up-to-date information on staffing and deployment.

86. The Human Resources Committee will continue its programme of work and will act as the key coordinating and oversight body for much of the HR work contained within the Business Plan.

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SW/Final February 2017

Chapter 8: Finance, Business Development and Information Technology

Finance and Business Development

87. In order to be able to run a successful heritage and preservation railway like the WSR, the PLC needs to have in place robust finance and business development arrangements supported by appropriate and working technology systems to be able to provide a sustainable basis on which to manage the railway over the medium term.

88. Given the way that income is generated from a mix of enthusiast, leisure and tourism sources, the PLC has to make some assumptions around growth in order to be able to plan effectively for the future. Internal consideration of what this might look like has concluded that it is reasonable to plan on the basis of longer-term growth in income underpinned by a number of assumptions:

• Growth in passenger numbers derived from continued choice of the WSR as a leisure activity and driven by an improving national economy. • Changes to the pricing policy and ticketing arrangements as outlined in the Section on Commercial Services. • Extended marketing and development of retail opportunities in line with the proposed integrated strategy. • Sustained management of costs, both fixed and variable, to reduce unnecessary wastage and non-core requirements. • Careful scrutiny and decision-making around development projects [see below]. • Review and commercialisation of leases, licenses and subcontracting arrangements [see below].

89. Budgets for 2017 were approved by the Board in November 2016. The revenue budget is provided in summary form in Appendix 4. Given the number of one-off costs in 2017, and 21

SW/Final February 2017

taking account of cash reserves, the Board agreed that the small budgeted deficit was acceptable as an exception to the general aim of at least breaking even. However, as a consequence, no new capital projects have been approved for 2017. The only projects with authority to proceed are therefore completion of 2016 projects (such as the Williton Loop and Brunel House 2), the Minehead Relay which started on 3 January and ongoing locomotive overhauls. In line with standard PLC practice, financial accounts will be approved by the Board and Audit and Risk Committee in accordance with the agreed annual timetable for circulation to shareholders covering 2017, 2018 and 2019.

90. The first section of Finance Manual has now been completed and the provisions approved by the Board during 2016 are being established across the Company. The full document will be presented to the Audit and Risk Committee followed by the Board with the intention of full implementation from mid 2017 onwards.

91. The new budget setting, business case and capital expenditure planning process, aligned with the Business Plan refresh programme will be continued in 2017.

92. Careful management of the company cash position and the reduction in decisions and activities which represent poor value for money will be a recurring theme throughout the lifespan of the Business Plan.

93. In line with Board decisions in 2016, a separate Infrastructure Fund has been established within the budgetary framework for the PLC. Proposals for future funding of infrastructure investment to form part of 2018 budget approvals and for future years have been developed by the Finance Director and Planning Director. Subject to Board approval, these will be pursued as a high priority from 2018 onwards.

94. There will be a review of utility contracts and insurance arrangements with an eye on the opening of the water retail market in April 2017. The review will be activated during 2017 with proposals for change being completed in time for 2018 if not before.

95. A new Head of Finance is to be recruited by early 2017, with other changes in staffing of the Finance team to follow as part of Organisational Development 2 proposals.

96. Led by the Planning Director, the PLC will continue refinement of the business planning processes to ensure that they remain relevant to the commercial, financial, heritage and leisure objectives of the organisation

97. With the conclusion of negotiations with Somerset County Council on the railway freehold and leasehold arrangements, the PLC will intensify its work to complete the Commercial Negotiation Programme with railway partner organisations, groups and individuals through 2017 and into 2018 and to secure implementation of agreed revised leases, licenses and high-value contracts .

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Inward Investment

98. In addition to previously agreed Board policy on securing inward investment for major projects and programmes, an overarching New Investment Policy was approved by the Board in November 2016. This represents a significant departure from the historical approach to fundraising by the PLC and reflects the methodology adopted by other railways with significant success in relation to major projects. Key aspects of the new approach will include:

• Targeted share offers with new shares being raised for specific projects. • Borrowing money on the markets either from banks or other financial institutions. • Taking advantage of new techniques in social media such as crowdfunding. • Taking out mortgages for specific schemes/properties. • Use of legacies and encourage future legacies for specific purposes. • Offering revenue share proposals to local businesses. • Seeking support from high net worth individuals. • Exploring major sponsorship deals with significant commercial organisations. • Exploring commercial business deals for future developments with targeted companies.

99. Railway partner organisations have agreed to the establishment of a fundraising coordinating function within Partnership Development Group. This will begin its work in early 2017. The PLC will also support significant fundraising initiatives by the West Somerset Steam Railway Trust (Gauge Museum, Bishops Lydeard), 4561 (West Somerset Railway Association) and Washford Development (Somerset and Dorset Railway Trust) over the lifetime of the Plan. Other proposals will emerge during 2017, most notably in connection with Southern Gateway and Brunel at Williton major development programmes.

Information Technology

100. Work will continue in 2017 to assess any residual work required to fully implement new systems (Simply Personnel, Office 365 et cetera). This will include proposals for establishing remote access for managers to core systems and programmes using 23

SW/Final February 2017

handheld devices and further staff training, to inform the business case for additional expenditure if required

101. Following an initial funding and procurement exercise during 2016, a business case will be prepared in 2017 for further replacement and updating of PLC hardware on a rolling basis from 2018 onwards (or earlier if resources permit).

102. The PLC will complete implementation of the IT requirements for Brunel House 2 as part of the agreed project and timetable for early 2017.

103. The Company will review the three-year service level agreement with IDN in 2017 and make recommendations for future requirements and provider.

104. In order to embed Information Technology across the organisation, the Finance Director as interim lead for IT will, in conjunction with the General Manager and Heads of Service, continue the identification of IT champions within each of the main departments to support the continued use and development of IT as a key business enabling function across the PLC.

105. The PLC will review the existing telephone system across the company and in conjunction with railway family organisations during early 2017 with proposals for change being finalised and presented for consideration and implementation from 2017 onwards subject to approval and resources.

106. The work started in 2016 to replace the company website (see Commercial Services will be accompanied by reorganisation of website use by departments. This work will be led by the Marketing Manager and Finance Director in conjunction with the Director Governance.

107. As part of its overall approach to risk management, the PLC will review the requirements of cyber risk management in 2017 and present proposals to the Audit and Risk Committee for adoption and implementation.

108. Work will be undertaken in early 2017 to identify the role and functions for a Senior Responsible Officer for Information Governance including Data Protection during 2017 with proposals being prepared for consideration and approval in time for the 2018 business planning and budget setting round

Chapter 9: The Corporate Organisation

Partnerships and External Relationships

109. The work undertaken over the lifetime of the previous Business Plan is now bearing fruit with significant progress having been made in both establishing and strengthening new and existing partnerships and external relationships. Principally these have included:

24

SW/Final February 2017

• Partnership Development Group with full participation from railway partners and our three local authorities. • Joint initiatives including Southern Gateway and Brunel at Williton Project Boards plans and proposals. • Membership of Visit Somerset, Minehead Economic Plan and other local tourism and heritage activities. • Membership of the Somerset and Dorset Metro Group. • Taunton to Bishops Lydeard Working Group including GWR and NR. • Topic specific task and finish working groups with West Somerset Railway Association. • Staff Stakeholder meetings held three times a year.

110. The Heritage Committee was also established in 2015 under the Partnership Development Group but now needs new leadership and refocus to oversee the development of heritage and preservation work across the railway.

111. The PLC has been invited to contribute to the Taunton Deane Borough Council Core Strategy and Infrastructure Development Plan refresh work during 2017. This is key supporting planning activity particularly in relation to Southern Gateway and any future Taunton to Bishops Lydeard pilot service proposals.

PR and Communications

112. The PLC continues to have the aim of enhancing and sustaining internal communications with shareholders, staff and volunteers and to establish the PLC story as the first point of reference. This involves developing a new approach to external public relations with the aim of ensuring that the PLC is able to project and communicate the work of the railway more effectively and to broaden the coverage and understanding of the WSR in the wider media system and amongst the public at large. The Company recognises that despite some progress, it has more work to do in this important element of PLC business.

113. Accordingly, in 2017 and beyond, the PLC will:

• Refresh its Board level lead and responsibilities on PR and Communications as part of a review of progress on Board portfolio implementation. • Continue to make the Briefing from the Board a regular feature of post Board actions with publication on the new staff website and in Online. • Make more effective use of the new staff website functionality with particular reference to a wider range of options for social media. • Continue with the programme of successful Stakeholder meetings for staff and support organisations.

25

SW/Final February 2017

• Be far more proactive in terms of press releases and briefings on key issues both with staff and external partners and opinion formers.

114. A significant piece of work for early 2017 will be formal consultation on the Southern Gateway proposals between January and April including both internal staff meetings and presentations to railway partners, local authorities and other groups. The results will be presented to the Southern Gateway Project Board in April/May and to the PLC Board in May/June for consideration and approval. This will be accompanied by regular briefings press releases as the work to take forward Southern Gateway progresses. A similar approach will be adopted for Brunel at Williton once proposals are ready and have been signed off by the relevant organisations.

Corporate Governance

115. Following a number of retirements and resignations in 2016, the PLC Board has undertaken a short term review of progress with the portfolio based hybrid model for Directors and will implement the outcome in early 2017. The principles underpinning the role and requirements of the Board both corporately and individually remain as set out in the previous Plan namely :

• Delivery of the principles of good governance as set out in the Nolan/Cadbury proposals. • Board Members are chosen for their skills and personal/ organisational fit with the PLC. • Remuneration of Non-Executive Directors for expenses incurred on the PLC business • All Board members must have a specific portfolio with a role profile for which they are individually accountable alongside their corporate responsibilities. • The Memorandum and Articles of Association must be complied with (or altered as required) in whatever structure is preferred. • The Board is responsible for business and financial policy, strategic direction, regulation and corporate governance. • The Executive focus must be on overall business performance, operational delivery, financial management, commercial and marketing, engineering and infrastructure and workforce requirements

116. With the retirement of the previous Head of Mechanical Engineering in October 2016, the opportunity has been taken to confirm a previous Board decision that the management team and staff of the PLC will be represented on the Board as a participating member by the General Manager only. This does not preclude Heads of Service or indeed any other member of staff from attending the Board for topic specific issues and by invitation.

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SW/Final February 2017

117. Following work in 2016, the Organisational Development Group 2, established to review management arrangements across the PLC, will complete its work in 2017 and make recommendations for implementation. The Operations review project has been at the forefront of this process and itself will be completed and implemented by early 2018. There will be full consultation with staff on any proposals that impact on current working arrangements and individual roles within the Company.

118. Because of the work associated with the freehold/leasehold and the WSRA, the PLC took the decision to defer the start of a comprehensive review of the its memorandum and Articles. This work will now be completed in early 2017 in time for the 2017 PLC AGM.

Heritage and Preservation

119. The PLC will continue to support the work of the Heritage Committee and will identify a new lead Director/Manager to represent the Company in this important area of work. The Committee will need to appoint a new Chairman. The initial focus of the Heritage Committee in 2016 was:

• The Built Railway • Maintaining and Preserving Traditional railway Working Practices • The Approach to Making Essential Alterations • Locomotives and Rolling Stock • Museums and Historical Artefacts

and it is anticipated that this will continue for the time being.

120. The Heritage components of Southern Gateway and Brunel at Williton will be important considerations for the Committee and its advice and guidance to each of the projects will need careful consideration as part of the arrangements for implementation.

121. The proposals from the Heritage Committee will progressively be built in to PLC business management processes and decisions as they emerge.

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SW/Final February 2017

Appendix 1 Infrastructure Engineering Costed 3 Year Plan

_Infrastructure Project List - 2017

Project Cap/Rev Estimate / Leader Budget Committed Request Milepost/ Station Details of Fault or Work Request Notes Code (£k) Date Code WINTER/SPRING 2017 WN WILLITON LOOP PROJECT - STAGE 5 FINAL [S&T]No further mechanical locking alteration. New electrical locking brought in. CAPEX 26,000 Outermost home signals in place. Track circuits in place. Section signals in place. Signal 20 moved out. Full new scheme tested and commissioned. 2,6, 24, 17, 18 AND ALL TCs operational / new SB illuminated ROUTINE MD MD relay. January & February Planned for Jan 2017? To be carried out with Highways support with crossing renewal? CAPEX 182,000 ANNUAL NOT including realignment and headshunt - straight relay on what's there. Include re- RELAY 1/4 railing Track 1/4 Mile (Corp Plan) 25y LX Leigh Wood Crossing Light Renewal Purchase 2016 / Install 2017 [S&T] In-line with other renewals given age over 25 years CAPEX 4,000 Renewal and to bring up to latest standards + PC to ORR commitment by Apr 2015 already passed. Depends on WN progress CH CH Drainage - South of Station Install drainage troughing along south drainage top of cutting down side and improve Contract 73010 6,000 drains down to Lydeard Bridge. Nornvis almost complete. ROUTINE Various Pointing/weeding under bridges [2] Doniford Bridge Contract 74130 20,000 ANNUAL Felling Trees (Forge Cott) Eastcombe Crowcombe LM Canopy corroding on truss at east end MD Plan for the closed Jan/Feb season - 2017? FOMS Funding? AF to supply labour? 74130 10,000 MD station. ALL Ultrasonic Testing Carry out testing of the whole line. Quotations recieved. 73010 10,000 Various RRV cherry picker for larger trees (DEC) - various locations (3 weeks - Lengthsmen+contractor) (Est. £6k) - December? 73011 6,000 Flailing Whole Line PWAY - in house 73011 2,000 Fishplate Oiling Contracted - new system installed 73010 15,000 28/11/2014 0 177.40 Stream Erosion at Castle Hill - EA support. NOT FUNDED 2016 River is undermining the track bed and now on the railway side of CAPEX 75,000 the border fence. Advised by EA to sort issue. Meeting Aug 2016

SUMMER 2017 WD Washford Crossing Closure Requested by GM. Level crossing report has advised the public crossing at WD to be 74176 2,000 closed. Advice in project file. 4 Various Review Rail Wear Report & Structural Review rail wear throughout - CT tasked ? 73010 5,000 Clearance re-measure 27/07/16 170.00 Combe Florey Drainage (UNFINISHED) Summer POSTPONED - Staff Sick - [PH&BO job end August?] Track formation improved. Earth 73010 3,000 2016 moved. Waiting for running season before attempting further drainage works - currently drainage system holding. Planned MARCH 2017 MD Machine Shop Roof Renewal [POSTPONED 2015]. AF request - for renewal over spot repairs. TO INCLUDE Good FOMS? 24,000 Shed Guttering Repairs - June. Awaiting IE Surveyor review. / 74130 25/02/2014 1 MD New toilet for signal box? PROJECT BUSINESS CASE AND BRIEF REQUIRED FROM OPS - NO BUDGET For OPS 6,000 signalmen to replace portaloo Project 28/11/2014 0 DD Doniford Sea Cliff Erosion Protection? NOT BUDGET APPROVED [ON HOLD - SCC OWNED LAND NOT LEASED TO WSR] CAPEX 300,000 RD to look into the cost of rock armour at the base of cliff for 75m - advice by EA John Buttivant suggestions. 28/11/2014 0 SR Stogumber Slope Stability NOT BUDGET APPROVED [NOT FUNDED since 2015 ] Following ground investigation CAPEX 400,000 - something needs to be done. ESP are drawing up design options. Stablisation is needed to prevent further slips and loss of platform area. (3 weeks - contractor) 03/08/16 RRVS RRV Trailer Disc Brake Upgrade Upgrade required by 2020 for disc braking on our RRV trailers. Not only a ORR CAPEX 15,000 requirement but also a real boost to safe operation of these trailers.

AUTUMN 2017 28/11/2014 0Drainage Cottiford/Woolston Drainage POSTPONED [P-WAY] - drainage maintenance to resolve blockage and upgrade flow 73010 20,000 in case of flooding. Contract? / M Brewer? ROUTINE Bridges BRIDGE MAINTENANCE Pointing/weeding Continue routine for 20 bridges over 10 years to catch-up on maintenance 74130 6,000 ANNUAL under bridges [3] (set up routine) 04/08/2014 1Drainage Washford Cutting Drainage / Re-railing POSTPONED - no funding. Now just drainage work based on Earthwork Strategy. 73010 12,000 SUSTRANS considering work at two locations. Possible work with Sustrans? ROUTINE Bridges BRIDGE PAINTING Steel Bridge NO BUDGET POSTPONED from 2014 (3 weeks) - WATERSMEET BRIDGE CAPEX 120,000 Painting/Maintenance [1] - Watersmeet? RESTORATION AND PAINTING INCLUDE CULVERT FILL 168-60???? Shelf relay replaced with ‘Plug In’ Relays [S&T] To resolve on-going issues with old relays used in damp conditions. And to start CAPEX CH using a large stock of modern relays which will improve reliability 12,000 ROUTINE Re-Railing Track 1/4 Mile (Corp Plan) NO BUDGET Contract relay from Liddymore back towards WN - FB TO REACH CAPEX 80,000 ANNUAL CORPORATE PLAN TARGET RELAY 1/3

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SW/Final February 2017

_Infrastructure Project List - 2018

Project Cap/Rev Estimate / Request Milepost/ Leader Budget Committed Station Details of Fault or Work Request Notes Code (£k) Date Code WINTER/SPRING 2018 ROUTINE Various Pointing/weeding over bridges [2] (set up Continue routine for 20 bridges over 10 years to catch-up on maintenance 74130 6,000 ANNUAL routine) 27/11/2014 2 MD MD Seaward Way Crossing Renew - Amey? Follow up with SCC - JJ and PH to come up with spec. SCC have provisionally SCC 800,000 committed subject to business plan 2017 Funded ROUTINE Re-Railing Track 1/4 Mile (Corp Plan) Contractor WD/WT section to FB - Routine replacement of rail over 1/4 mile = 44 CAPEX 80,000 ANNUAL lengths - undertaken in-house. Second half of closed period. Half of the Corp Plan RELAY 1/3 target. ROUTINE CH CH RELAY Part 2 POSTPONED - (3 weeks - P-WAY) - plain line track renewal of down platform and point CAPEX 65,000 ANNUAL work. In-house PW with material cost only. Accounts for a quater of the Corp Plan RELAY 1/4 target.

SUMMER 2018 BL BL Farm Development Installation of sidings on new operational land. Requires S&T reconfiguration and PW CAPEX 200,000 materials. Part of Southern Gateway?

AUTUMN 2018 ROUTINE CH RELAY Part 3 Up loop relay - P-WAY gang - continued from Winter works if necessary CAPEX 45,000 ANNUAL RELAY ROUTINE DD Doniford Curve Relay & Drainage [PART 2] POSTPONED [CONTRACTED)] To finish the work started in Jan 2015 and continue CAPEX 80,000 ANNUAL around the curve towards WT for another 300m. RELAY 1/4 ROUTINE TBC Steel Bridge Painting/Maintenance [2] (3 weeks) - additional to routine bridge budget. One every two years (10 bridges = 20 CAPEX 140,000 year cycle) to catch up on maintenance then one every 3/4 years. Cost for steel work renovation only - not track renewal / closures etc which may add more.

_Infrastructure Project List - 2019

Project Cap/Rev Estimate / Request Milepost/ Leader Budget Committed Station Details of Fault or Work Request Notes Code (£) Date Code WINTER/SPRING 2019 ROUTINE BA BA Relay - Both platforms + points Jan - Mar OPS - request single line running Dec? CAPEX 65,000 ANNUAL gala? RELAY ROUTINE MD - DR relay Re-Railing Track 1/4 Mile (Corp WT / WD section FB relay - CONTRACTOR CAPEX 110,000 ANNUAL Plan) RELAY

SUMMER 2019 BL Farm Developments? Installation of sidings on new operational land. Requires S&T reconfiguration and PW CAPEX 200,000 materials. Part of Southern Gateway? BL BL relay works - Drainage - NOW PART OF POSTPONED - lack of staff [PWAY] structure to pool water before washing out into 73010 2,000 STATION FARM DEV field - need to discuss with RD. Minor enhancement to drainage required based on environs. Plant reed bed? Part of BL farm dev...

AUTUMN 2019 ROUTINE DR Station relay / drainage CAPEX 65,000 ANNUAL RELAY TBC Steel Bridge Painting/Maintenance [2] (3 weeks) - additional to routine bridge budget. One every two years (10 bridges = 20 CAPEX 140,000 year cycle) to catch up on maintenance then one every 3 years. Cost for steel work renovation only - not track renewal / closures etc which may add more.

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SW/Final February 2017

Appendix 2 Mechanical Engineering 10 year Locomotive Supply Plan l l l l l l l l l l llllllllllll wwwwwwwwwwwwwwwwww ct ct to agreement Subject to boilerextension 2222333333333333333333 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 wwwwwwwwwwwwwwwwwwwwwwww ss ss ss ss ss ss ss mmmmmmmmmmmmmmmm In serviceIn (agreement in place) Aspirational subje - 000000011001100110011001100110011 ation subject to funds llllllllllllllllllllllllllllllllllll llllllllllllllllllllllllllll mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm Bottom end OH Overhaul/ outoftraffic 66777777777777777777777777777777777777777777 O/H atO/HTyseley Subjecttofunds Staticexhibit in STEAM until November 2020, restor Subjecttofunds Subjecttofunds l 22222222333333333333333333222222333333333344 m 44443333222222222222222222222222111111111100 tbctbc mmmmmmmm m m m m m m Year 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 WSR wwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww WSR w+m+l Owner WSRA Quarter Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 KHL Ltd KHL J Hosking m m m m m m m m m m m m m m m m S&D Trust S&D l l l l l l l l l l l l l l l l l l l l l l l l l l 88 Key 4110 4561 WSRA 9351 6960 4936 44422 44422 Ltd l l l l 53809 53809 m m m m l l l l Class 3- Class 4+ 7828Odney-Manor WSR w w w w w w w w w w w w w w w w w w Total frontline engines Total 7821- DitcheatManor Long-term hire engine 1 tbc Medium-term hire engine 1 Medium-term hire engine 2 WSR-owned (frontline engine) w 0 0 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 Medium-term hire (frontline engine) Long-term hire 20+ years(small engine) s 0 0 0 0 0 0 0 0 0 0 0 Long-termhire20+ years (frontline engine)

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SW/Final February 2017

Appendix 3 Safety Audit Committee and Safety Project Group Work Programmes (

2 1 1 3 64 1 0 1 Complete

9 % 8 7 ) 6 plan

5 4 3 (beyond

2 1 2017 Complete Actual

E Plan Actual % WSR plc INCONFIDENC 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 6 43 : 2016/7 35 36 37

Highlight

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e W 31 32 33 34 E Competency T E L P 0% 0% 0% 0% 0% 0% 0% 0% M 60% 33% 10% 55% 33% 60% 90% 90% 100% 100% 100% O C N O I T A R U D T R A T S N O I T 6 081 0 02 02 03 0 42 0 0 2 A 10 0 0 R U D T R A 3235 1633 438 32 536 0 640 3 33 242 36 2 0 35 2 40 647 40 0 943 3 4248 2 35 151 2 46 6 4350 42 1 62 4242 142 1 0 1 41 41 0 1 1 T PLAN PLAN ACTUAL ACTUAL PERCENT S o h W SPG MasterPlan Update AY

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49 PW 16 PW 17 Introduce 18 25 26 27 28 Plan 29 Project 30 Plan 31 Plan 32 33 34 34A 35 Ensure 36 Issue 37 Revise Issue updates8 redin

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SW/Final February 2017

32 Pho tographs courtesy of Julia Amies Green Photography

SW/Final February 2017