Annual Return 2007 Delivering for you Network Rail helps bring the country together. We own, operate, maintain and invest in Britain’s rail network. Increasingly we are delivering improved standards of safety, reliability and efficiency. This benefits our customers and society at large. Every day. Everywhere. Contents Executive summary 1 Earthwork remediation (M28) 118 Introduction 9 Tunnel remediation (M29) 119 Targets 13 Key performance indicators (KPIs) 16 Section 5 Safety & Environment 122 Accident Frequency Rate 122 Section 1 – Operational performance and Infrastructure wrong side failures 123 stakeholder relationships 18 Level crossing misuse 124 Public performance measure (PPM) 19 Signals passed at danger (SPADs) 125 Summarised network-wide data (delays to major operators) 20 Operating irregularities 127 National data by delay category grouping 25 Criminal damage 128 Results for operating routes by delay category 29 Safety and environment enhancements 129 Asset failure 38 Customer satisfaction – passenger and freight operators 45 Section 6 – Expenditure and Efficiency 131 Supplier Satisfaction 46 Network total expenditure 131 Doing Business with Network Rail 47 Route 1 Kent 134 Joint Performance Process 47 Route 2 Brighton Main Line and Sussex 135 Route Utilisation Strategies (RUSs) 50 Route 3 South West Main Line 136 Route 4 Wessex Routes 137 Section 2 – Network capability 52 Route 5 West Anglia 138 Linespeed capability (C1) 53 Route 6 North London Line and Thameside 139 Gauge capability (C2) 58 Route 7 Great Eastern 140 Route availability value (C3) 60 Route 8 East Coast Main Line 141 Electrified track capability (C4) 61 Route 9 Northeast Routes 142 Management of congested infrastructure 62 Route 10 North Transpennine, North and West Yorks 143 Passenger and freight mileage 64 Route 11 South Transpennine, South and Lincs 144 Million GTMs by freight train operator 65 Route 12 Reading to Penzance 145 Route 13 Great Western Main Line 146 Section 3 - Asset Management 66 Route 14 South and Central Wales and Borders 147 Number of broken rails (M1) 67 Route 15 South Wales Valleys 148 Rail defects (M2) 67 Route 16 Chilterns 149 Track geometry - national standard deviation data (M3) 70 Route 17 West Midlands 150 Track geometry – poor track geometry (M3) 72 Route 18 West Coast Main Line 151 Track geometry – speed band data (M3) 73 Route 19 Midlands Main Line and East Midlands 152 Condition of asset temporary speed restriction sites (M4) 84 Route 20 North West Urban 153 Track geometry – level 2 exceedences (M5) 86 Route 21 Merseyrail 154 Earthwork failures (M6) 87 Route 22 North Wales and Borders 155 Bridge condition (M8) 89 Route 23 North West Rural 156 Signalling failures (M9) 90 Route 24 East of Scotland 157 Signalling asset condition (M10) 92 Route 25 Highlands 158 Alternating current traction power incidents causing train delays(M11) Route 26 Strathclyde and South West Scotland 159 94 Central (Other) 160 Direct current traction power incidents causing train delays (M12) 95 WCRM 162 Electrification condition – AC traction feeder stations and track Maintenance expenditure 164 sectioning points (M13) 96 Efficiency 165 Electrification condition – DC traction substations (M14) 97 Electrification condition – AC traction contact systems (M15) 98 Section 7 – Financing 174 Electrification condition – DC traction contact systems (M16) 99 Debt to RAB ratio 174 Station condition index (M17) 100 RAB adjustment for passenger and freight volume incentives 174 Station facility score (M18) 103 Expenditure variance 175 Light maintenance depot – condition index (M19) 105 Asset Stewardship Incentive Index (ASII) 106 Appendix 1 Station condition 176 Appendix 2 Depot condition 230 Section 4 – Activity Volumes 108 Rail renewed (M20) 108 Sleepers renewed (M21) 109 Ballast renewed (M22) 111 Switches and crossings renewed (M25) 113 Signalling renewed (M24) 114 Bridge renewals and remediation (M23) 116 Culverts renewals and remediation (M26) 116 Retaining walls remediation (M27) 117 Network Rail Annual Return 2007 1 Annual Return Reporting on the year 2006/07 1 August 2007 Executive summary Introduction This is the fifth Annual Return under Network Rail Highlights for the year include the following: stewardship. It reports on our achievements and • Public Performance Measure of 88.1per cent: the developments during 2006/07 and is the primary highest in eight years means by which we demonstrate progress in • Broken rails of 192: lowest ever recorded delivering outputs established in the Access • Temporary Speed Restrictions of 710: continued Charges Review 2003 (ACR 2003). The year reduction and ahead of regulatory target of 1,199 2006/07 is the third year of Control Period 3 (CP3). for CP3 and ahead of 2006/07 target of 815 The targets to date from this Control Period are • Asset Stewardship Incentive Index of 0.72: currently being used to inform the expected outputs surpassing regulatory target of 0.9 for the next Control Period beginning in April 2009. • 24per cent efficiency saving over three years of CP3 The Annual Return is a publicly available • £3.3bn investment document, which enables stakeholders to use it as • £1bn profit. an important reference document. This document Further details and explanations of measures are and previous editions of the Annual Return referring included throughout this document. to previous years’ performance are available on the Network Rail website under Regulatory documents. Although our safety performance continues to improve, there was a tragic incident at Grayrigg in In 2006/07 we continued to adapt our processes Cumbria on 23 February due to a derailment on a and reporting to enable separate disaggregated set of points causing a fatality. Network Rail has information for Scotland and England & Wales taken full responsibility for the incident and together with providing a network total. We have continues to put in place various measures for therefore included this in the Annual Return, where safety improvements. The Rail Accident appropriate; there are some measures which only Investigation Branch and British Transport Police have network-wide information and cannot be continue to investigate the derailment. Safety is our disaggregated further. highest priority and rail transport continues to be the safest form of transport in Great Britain. This Annual Return follows the agreed form as approved by the Office of Rail Regulation (ORR) in A summary of the year’s performance against the 2007 and is prepared in accordance with Condition regulatory targets is in Table 1. The regulatory 15 of the network licence. targets were established in the ACR 2003 and provide the output targets which Network Rail are Network Rail during 2006/07 required to deliver for Control Period 3 (CP3). Most This has been another year of improved of these targets are for achievement of an overall performance and we are still on course to meeting target improvement at the end of the five year the regulatory targets for CP3. However, we missed control period but some have immediate aims or some of our internal targets and our rate of milestones for earlier years so this table reports on improvement for some areas has not been as good our progress generally. Later sections of this as in 2005/06. Annual Return will provide more detailed information. Network Rail Annual Return 2007 2 Table 1 Performance against regulatory targets Measure Regulatory target Performance Performance Performance Met Target? 2004/05 2005/06 2006/07 Total Network Rail attributed delay (million minutes) 2004/05: 12.3 2005/06: 11.3 2006/07: 10.6 2007/08: 9.8 2008/09: 9.1 11.4 10.5 10.5 Yes Train delay minutes/100 train kms 2004/05: 2.34 (franchised train operators) 2005/06: 2.12 2.18 1.93 1.92 Yes 2006/07: 1.97 2007/08: 1.80 2008/09: 1.65 Broken rails No more than 300 pa by 2005/06 322 317 192 Yes Track geometry L2 exceedences per track mile to be no more than 0.9 by 2005/06 0.91 0.82 0.72 Yes Temporary speed Annual reduction restrictions in TSRs 942 815 710 Yes Structures & Condition & See detail See detail See detail Yes electrification serviceability to in section 3 in section 3 in section 3 return to Annual Return Annual Return Annual Return 2001/02 levels 2005 2006 2007 Other measures No deterioration See detail in See detail in See detail in Yes from 2003/04 levels section 3 section 3 section 3 Annual Annual Annual Return 2005 Return 2006 Return 2007 Network capability Maintain the See detail in See detail in See detail Broadly capability of the section 5 section 2 in section 2 in line network for Annual Annual Annual broadly existing Return 2005 Return 2006 Return 2007 use at April 2001 levels (subject to network changes authorised under the Network Code). Following the end of 2006/07, on 6 June 2007, the ORR concluded that weakness in the planning and execution of the Portsmouth resignalling scheme by Network Rail caused us to be in breach of Licence Condition 7 of our network licence. We have consulted the affected train operating companies to identify a suitable time to complete the project that will have the least impact on services. The project should be completed by the end of October 2007. Network Rail Annual Return 2007 3 Operational performance and We will continue to improve relationships and stakeholder relationships understand our customers’ businesses and work Train punctuality continued to improve. At the end together to benefit the rail industry. During 2006/07 of 2006/07, PPM was at 88.1 per cent, better than there has been work on a new measure based on the record level of 86.4 per cent at the end of the more detailed information gained from the latest 2005/06. This also beat our target of 87.6 per cent. survey. This is to enable results and action planning to be developed by operator and by Route.