System Operator Strategic Business Plan February 2018 System Operator Strategic Business Plan 1. Foreword by Jo Kaye, Managing Director, System Operator I am pleased to set out, in this Strategic Business Plan, our plan and vision We provide a whole-system, long term view, informed and integrated by the for the railway’s System Operator in Control Period 6 (CP6) and beyond. detailed knowledge we have from planning the network and by the industry- wide interfaces we have with every train operating customer, route and Role of the System Operator infrastructure manager. Our services extend beyond Network Rail. Trains already run between Network Rail routes and infrastructure owned by other Why we exist (our role) infrastructure managers, such as High Speed 1 (HS1), Transport for London We plan changes to the GB railway system so that the needs of passengers (TfL), Nexus and Heathrow Airport. and freight customers are balanced to support economic growth. The network needs to be planned as an integrated whole, irrespective of What we want to be (our vision) ownership. This will be particularly important in the next few years, as Our vision is to become the recognised expert trusted by decision makers to Crossrail and High Speed 2 (HS2) become operational, and as other plan the GB railway. infrastructure managers emerge. How we will do this (our strategic intent) We are a distinct but connected part of Network Rail. The separation of our We will support each other to realise our full potential, building confidence role in managing capacity allocation from the routes allows route businesses and being a better System Operator. We will be transparent about how we to work locally in collaborative models, such as Alliances, avoiding conflicts optimise the use of the existing network and identify opportunities to create of interest in the provision of network access. new system capability. Our unique role within the industry as a centre of excellence, our expertise in The railway system drives economic growth. It transports people to and from analysis of the network, station capacity and operational train planning, work, education and social activities and it carries goods to markets, combined with our position within Network Rail and relationship with the rest connecting businesses. Many parts of the network are at or approaching of the rail industry, places the System Operator as a credible source of capacity at certain times of the day. Over the longer term we expect this advice in relation to the GB rail network. demand for rail to continue to grow, so capacity is a valuable commodity. Getting best use of track and station capacity today, and expanding the This position enables us to plan and develop a railway across Great Britain capacity of the system in an affordable and value for money way is a key that is more than the sum of its parts. We do this to ensure the railway challenge for the whole industry. remains a cohesive and seamless network for its users. As the System Operator, capacity is at the heart of everything we do. Our Our role also means we can engage beyond the rail industry and make a activities span the breadth of railway planning in terms of time horizons - significant contribution to broader policy debates on the role of rail in a wider what the railway could look like in 30 years to tomorrow’s timetable - and the transport, land use planning and economic context. full spectrum of system opportunities to deliver more capacity including better timetables, longer and more trains, new technology and, where Control Period 6 will see us evolve our expertise in planning the railway - necessary, new infrastructure. supporting the further development of robust socio-economic analysis and options for future network investment, to underpin improved decision making Network Rail 2 System Operator Strategic Business Plan about the future of the railway and its place in the overall transport system. choices and trade-offs of different solutions and retain a line of sight to the intended benefits from long term planning through to the operational The System Operator must be a source of high quality analysis for the timetable. We recognise that many decisions that affect the outputs of the industry, funders and potential investors, to underpin the decisions that will railway are made by others, especially funders and franchising authorities. be required in developing the network to be fit for the demands the future will The System Operator must provide high quality advice to these decision- place on it. The creation of a distinct System Operator provides an makers and be clear on the consequences of different choices that could be opportunity to offer a completely different quality of analysis to support these made. critical decisions and new capabilities will be required to achieve this. How we do our job We will continue our drive for an improved network timetable; the product of How we work is as important as what we do. the System Operator that most users would recognise, and is one of the key determinants of good operational performance of the railway. Safety is at the heart of everything that we do. As System Operator we make a meaningful contribution to improving whole railway system safety in What we do our work. We recognise that vital contribution to the safety of the railway Our key products and services reflect the breadth of our activities: system by embedding a safety culture across the organisation, and actively thinking about safety throughout the delivery of our processes in each part of Working with the rest of the industry we provide advice to our operating model. governments and funders on the future development of the rail network, and its potential to deliver for its customers and support We are accountable to our customers and stakeholders - to governments economic growth and other key societal outcomes. and other funders, to train operators and to Network Rail routes and other infrastructure managers - for what we do. We are establishing new This advice is supported and underpinned by analysis of the long governance arrangements so that we can demonstrate transparency in our term prospects of the markets rail serves, the development of long decision making and provide confidence to our customers and stakeholders. term strategies and plans to deliver desired outcomes, and the development of business cases to assess the potential costs and Even-handedness and an understanding of the rationale behind our advice benefits to support the case for funding. and decisions are essential so that we are trusted in our role, and customers and funders are able to work confidently with us in the development of future The System Operator enables the delivery of new outputs to the investments and services. railway system through planning of new train services, by providing advice to the franchising process and by specifying the service Openness and transparency are therefore an essential part of our agenda. output requirements of any new infrastructure and broader system We recognise that our decisions and recommendations can be complex to changes required to support output changes. articulate, often balancing the needs of many stakeholders and considering system-wide factors such as effects on punctuality, maintenance, and The System Operator works with Network Rail route teams and train service flexibility. More needs to be done to inform the industry and operators to decide the best allocation of capacity and creates passengers as to why we take the decisions we do and their implications; as operational timetables that meet the needs of train operators. System Operator we will take accountability for the understanding and articulation of these trade-offs. Throughout this operating model, the System Operator must understand the We must also be - and be seen to be – independent of any vested interests Network Rail 3 System Operator Strategic Business Plan that may originate from being within Network Rail and working closely with Transport (DfT) franchising timetable and published milestones for HS2. the Route Businesses; to mitigate this risk our governance framework will encourage transparency and independence. But it is important that we Another key driver of our activity and outputs is the level of enhancement remain connected to the operational railway, and aligned to the success of it, funding for the railway. In preparing our plan we assume such funding will to prevent us becoming a body devoid of the practical and contextual be commensurate with that available in Control Period 5 (CP5) for Scotland understanding that is needed for good decision-making. and the Statement of Funds Available for England & Wales. We also state the anticipated funding for major projects. The plan We have welcomed the opportunity to consult extensively with our And we also assume that we remain as part of Network Rail with all the customers, funders and route businesses as part of the development of this interface efficiencies that brings. plan, to understand how we can support their objectives while planning the network holistically and supporting the economic growth of Great Britain. Our plan is structured as follows: As an organisation, the System Operator has evolved within Network Rail, A description of the role and purpose of the System Operator and being formally established in May 2017. From CP6 we will be separately how we fit within the industry and Network Rail. This includes an regulated by the Office of Rail and Road (ORR) with our own settlement in explanation of how we are responding to devolution of both funders parallel with the arrangements for Route Businesses. During our and operations. consultations on this Strategic Business Plan (SBP), we have heard from Identification of our customers, and the priorities and requirements our customers how keen they are that the importance of our activity is widely that they expressed through the consultation process.