Annual Return 2008 Delivering for you Network Rail helps bring the country together. We own, operate and maintain Britain’s rail network, increasingly delivering improved standards of safety, reliability and efficiency. Our investment programme to enhance and modernise the network is the most ambitious it has ever been. Delivering a 21st century railway for our customers and society at large. Every day. Everywhere. Contents Executive summary 1 Switches and crossings renewed (M25) 117 Introduction 9 Signalling renewed (M24) 119 Targets 13 Bridge renewals and remediation (M23) 122 Key Performance Indicators (KPIs) 16 Culverts renewals and remediation (M26) 123 Retaining walls remediation (M27) 124 Section 1 – Operational performance and stakeholder Earthwork remediation (M28) 125 relationships 18 Tunnel remediation (M29) 126 Public Performance Measure (PPM) 19 Composite activity volumes measure 127 Summarised network-wide data (delays to major operators) 20 National data by delay category grouping 25 Section 5 – Safety and environment 129 Results for operating routes by delay category 31 Workforce safety 129 Asset failure 40 System Safety Infrastructure wrong side failures 131 Customer satisfaction – passenger and freight operators 46 Level crossing misuse 132 Supplier satisfaction 47 Signals Passed At Danger (SPADs) 133 Doing business with Network Rail 48 Operating irregularities 135 Joint Performance Process 48 Criminal damage 136 Route Utilisation Strategies (RUSs) 52 Environment 138 Regulatory enforcement 53 Safety and environment enhancements 139 Section 2 – Network capability, traffic and possessions 55 Section 6 – Expenditure and efficiency 141 Linespeed capability (C1) 56 Network total expenditure 141 Gauge capability (C2) 62 Route 1 Kent 144 Route availability value (C3) 64 Route 2 Brighton Main Line and Sussex 145 Electrified track capability (C4) 66 Route 3 South West Main Line 146 Passenger and freight mileage 67 Route 4 Wessex Routes 147 Million GTMs by freight train operator 68 Route 5 West Anglia 148 Late Disruptive Possessions 69 Route 6 North London Line and Thameside 149 Route 7 Great Eastern 150 Section 3 – Asset management 71 Route 8 East Coast Main Line 151 Number of broken rails (M1) 72 Route 9 Northeast Routes 152 Rail defects (M2) 73 Route 10 North Transpennine, North and West Yorks 153 Track geometry – national standard deviation data (M3) 75 Route 11 South Transpennine, South and Lincs 154 Track geometry – poor track geometry (M3) 77 Route 12 Reading to Penzance 155 Track geometry – speed band data (M3) 78 Route 13 Great Western Main Line 156 Condition of asset temporary speed restriction sites (M4) 89 Route 14 South and Central Wales and Borders 157 Track geometry – level 2 exceedences (M5) 92 Route 15 South Wales Valleys 158 Earthwork failures (M6) 94 Route 16 Chilterns 159 Bridge condition (M8) 95 Route 17 West Midlands 160 Signalling failures (M9) 98 Route 18 West Coast Main Line 161 Signalling asset condition (M10) 99 Route 19 Midlands Main Line and East Midlands 162 Alternating current traction power incidents causing train Route 20 North West Urban 163 delays (M11) 101 Route 21 Merseyrail 164 Direct current traction power incidents causing train Route 22 North Wales and Borders 165 delays (M12) 102 Route 23 North West Rural 166 Electrification condition – AC traction feeder stations and Route 24 East of Scotland 167 track sectioning points (M13) 103 Route 25 Highlands 168 Electrification condition – DC traction substations (M14) 104 Route 26 Strathclyde and South West Scotland 169 Electrification condition – AC traction contact systems (M15) 105 WCRM 170 Electrification condition – DC traction contact systems (M16) 106 Central (Other) 171 Station stewardship measure (M17) 107 Maintenance expenditure 173 Light maintenance depot – condition index (M19) 109 Efficiency 174 Asset Stewardship Incentive Index (ASII) 110 Section 7 – Financing 185 Section 4 – Activity volumes 111 Debt to RAB ratio 185 Rail renewed (M20) 112 RAB adjustment for passenger and freight volume incentives 185 Sleepers renewed (M21) 113 Expenditure variance 186 Ballast renewed (M22) 115 Appendix 1 Station stewardship measure 187 Appendix 2 Depot condition 209 1 Annual Return Reporting on the year 2007/08 Executive summary Introduction This is the sixth Annual Return under Network Rail Network Rail during 2007/08 stewardship. It reports on our achievements, This has been another year of significantly developments and challenges during 2007/08 and improved performance for Network Rail with most of is the primary means by which we demonstrate our internal targets met. With four of the five years progress in delivering outputs established in the of CP3 completed, we are on course for meeting Access Charges Review 2003 (ACR 2003). The our regulatory targets and outputs for CP3. year 2007/08 is the fourth year of Control Period 3 Furthermore, we have continued to invest in the (CP3). The outputs to date from CP3 are currently network whilst making efficiencies wherever being used to inform the expected outputs for possible and accommodating increased use of Control Period 4 (CP4) beginning in April 2009. the network. The Annual Return is a publicly available document, Highlights for the year include the following: which enables stakeholders to use it as an • Public Performance Measure (PPM) of 89.9 per important reference. This document and previous cent: the highest level of train punctuality for editions of the Annual Return referring to previous nine years years’ performance are available on the Network • train delay minutes attributed to Network Rail Rail website under ‘Regulatory Documents’. down by 1 million minutes from 2006/07: to 9.5 million minutes The Annual Return includes the following • broken rails of 181: lowest ever recorded information: • Asset Stewardship Incentive Index of 0.634: • the operational performance and stakeholder continuing our improvement from last year relationships section, which includes information • £4bn investment overall: up from £3.3bn. on regulatory enforcement • the network capability section, which includes We have generally had a good year, meeting most new information on timetabling and late disruptive of our internal and regulatory targets. However, possessions there have been some targets missed such as our • the asset quality and condition section, which internal Financial Efficiency Index and we are includes some updated definitions for measures behind the renewals efficiency target for the control • the activity volumes section, which includes the period. We also face a significant challenge composite activity volumes table now introduced regarding the cost of completing the West Coast for internal management purposes Route Modernisation project. • the safety & environment section, which includes more information on our safety KPIs as well as In June 2007, Network Rail was fined £2.4m our environmental initiatives resulting from ORR finding us in breach of • the finance and efficiency section, which includes Condition 7 of the network licence following delays an update on unit costs as well as the Business to the completion of the Portsmouth resignalling Plan reconciliation scheme. More recently in February 2008 ORR • the financing section, which includes more details proposed a fine of £14m as a result of the on our financial KPIs. engineering overruns at Rugby, London Liverpool Street and Shields Junction (near Glasgow) which For most measures we have provided caused disruption to passenger and freight disaggregated information for Scotland and customers. This fine was confirmed in May 2008 England & Wales together with the network total following ORR finding us in breach of Condition 7. where appropriate, although there are some There have been lessons learnt from both these measures which only have network-wide issues and remedial action taken as well as information and cannot be disaggregated further. changes in working practices. More details of these breaches are found under the section ‘Regulatory This Annual Return follows the agreed form as Enforcement’, at the end of Section 1 ‘Operational approved by the Office of Rail Regulation (ORR) in performance and stakeholder relationships’. 2008 and is prepared in accordance with Condition 15 of the network licence. Network Rail Annual Return 2008 2 Table 1 Performance against regulatory targets Measure Regulatory target Performance Performance Performance Performance Met target 2004/5 2005/6 2006/7 2007/08 in 2007/08? Total Network Rail attributed delay (million minutes) 2004/05: 12.3 11.4 10.5 10.5 9.5 Yes 2005/06: 11.3 2006/07: 10.6 2007/08: 9.8 2008/09: 9.1 Train delay minutes/100 train kms (franchised passenger operators) 2004/05: 2.34 2.18 1.93 1.92 1.75 Yes 2005/06: 2.12 2006/07: 1.97 2007/08: 1.80 2008/09: 1.65 Broken rails No more than 322 317 192 181 Yes 300 pa by 2005/06 Track geometry L2 exceedences 0.91 0.82 0.72 0.58 Yes per track mile to be no more than 0.9 by 2005/06 Temporary speed Annual reduction 942 815 710 628 Yes restrictions in TSRs from 2003/04 Structures & Condition & See detail See detail See detail See detail Yes electrification serviceability to in section 3 in section 3 in section 3 in section 3 return to Annual Return Annual Return Annual Return Annual Return 2001/02 levels 2005 2006 2007 2008 Other measures No deterioration See detail in See detail in See detail in See detail in Yes from 2003/04 levels section 3 section 3 section 3 section 3 Annual Annual Annual Annual Return 2005 Return 2006 Return 2007 Return 2008 Network capability Maintain the See detail in See detail in See detail See detail Yes capability of the section 5 section 2 in section 2 in section 2 broadly network for Annual Annual Annual Annual broadly existing Return 2005 Return 2006 Return 2007 Return 2008 use at April 2001 levels (subject to network changes authorised under the Network Code). A summary of the year’s performance against the regulatory targets is in Table 1. The regulatory targets were established in ACR 2003 and provide the output targets which Network Rail is required to deliver for CP3.