LIVERPOOL CITY REGION COMBINED AUTHORITY To: The Chair and Members of the Transport Committee Meeting: 13 June 2017 Authority/Authorities Affected: Liverpool City Region EXEMPT/CONFIDENTIAL ITEM: No REPORT OF MERSEYTRAVEL RESPONSE TO WALES & BORDERS RAIL FRANCHISE CONSULTATION “DESIGN OF WALES AND BORDERS RAIL SERVICE INCLUDING METRO” 1. PURPOSE OF REPORT 1.1 This report informs Members about the content of Merseytravel‟s response to the Wales & Borders rail franchise consultation undertaken by Transport for Wales. The deadline for responses was 23 May 2017. 1.2 Due to the lack of a scheduled Merseytravel Committee, (and now, Transport Committee) reporting window, it was not possible to secure political approval for this response within the timescales imposed by Transport for Wales (TfW). As such, a Director-level response was agreed and the response was submitted to Transport for Wales. The Chair of the former Merseytravel Committee was engaged in this process. 2. RECOMMENDATIONS It is recommended that Members note the content of the response set out in the appendix to this report, which was submitted to TfW on the 24 May 2017. 3. BACKGROUND 3.1 Members will be aware that the Wales and Borders rail franchise is in the process of being re-specified and tendered, and will take effect from Oct 2018. The existing franchise includes several services operating within the LCR, including those on the Borderlands line to Bidston from Wrexham and Shotton, and services to Runcorn East, Earlestown and Newton-le-Willows to and from Manchester Piccadilly. 3.2 The opportunities presented by the re-specification of the franchise from the point of view of enhanced connectivity from growth zones and travel-to-work catchments in North Wales and West Cheshire are very significant, hence the development of this formal response to the consultation. 3.3 Transport for Wales is undertaking the consultation and procurement process on behalf of the Welsh Government and the Department for Transport. In this consultation document,1 Transport for Wales sought views on the high level direction for the new Wales and Borders Rail Service including the South Wales Metro. 3.4 This report alerts members to Merseytravel‟s response. The response built upon previous responses and evidence approved by the former Merseytravel Committee to the Welsh Government in regard to the Wales & Borders franchise and the issues raised will be familiar to Members. 3.5 Key issues raised in the response include:- (a) The need for new and enhanced rolling stock to help Wales & Borders franchise to keep pace with growing demand and customer expectations. (b) Borderlands Line – the need to enhance service to two trains per hour. Enhancement of the Borderlands Line and its services should be recognised as a high priority in terms of its economic importance in linking two Enterprise Zones (Deeside and Mersey Waters) and in supporting access to education, leisure and retailing. It links university and college sites in Wrexham, Shotton, Wirral and Liverpool, and will serve an increasingly important social and economic role for HMP Berwyn in Wrexham. (c) There is also a need for improved connecting bus services for employment opportunities at Deeside Enterprise Zone from Hawarden Bridge and Shotton Stations, which are essential to unlock a significant labour market including from Cheshire, Liverpool City Region, Warrington, North Wales and beyond, acting as a catalyst for increasing inward investment. (d) Halton Curve – the need for new services from Liverpool to extend to Chester and beyond should be built into the specification, to maximise opportunity created by this scheme for people across Wales. The Halton Curve has economic importance in improving access to Liverpool John Lennon Airport and linking three mutually supportive Enterprise Zones (Sci- Tech Daresbury, Cheshire Science Corridor and Mersey Waters), and in supporting access to education, leisure and retailing. It will improve rail access to Liverpool South Parkway (for Liverpool John Lennon Airport) for passengers from North and Mid Wales depending on the services that are specified in the Wales & Borders franchise. (e) Identification of a potential option to transfer the stations serving the Borderlands (Bidston to Wrexham) line to LCR control at some later time, possibly during the life of the Wales and Borders Franchise, in line with the LCR‟s Devolution Deal. 1 https://consultations.gov.wales/sites/default/files/consultation_doc_files/170228-tw-consultation-document- en.pdf 4. RESOURCE IMPLICATIONS The reinstatement of the Halton Curve is a Local Growth Fund funded scheme but has revenue implications for Merseytravel and the Combined Authority. This is because the business case for reinstatement was predicated on a local revenue funding contribution for an initial Chester to Liverpool service as a “costed option” within the existing franchise specification. This consultation response and associated engagement with Transport for Wales and with bidders seeks to make the case for enhanced service levels to be built into the base franchise specification. This should offset the need for direct subsidy by the Liverpool City Region. 5. RISKS AND MITIGATION Should the enhancements sought through the refranchising process not materialise, then there may be a risk that revenue pressures are exerted on the Authority‟s transport budget to provide an enhanced level of service. There is also a risk that the potential of the Borderlands line and the new Halton Curve link are not fully realised and that the modal shift potential is not realised. This brings with it risks associated with worsening congestion, air quality and social exclusion. 6. EQUALITY AND DIVERSITY IMPLICATIONS No direct implications. 7. COMMUNICATION ISSUES There are direct links to wider communications and lobbying programmes around cross-border connectivity and specific schemes and priorities such as the reinstatement of the Halton Curve, the enhancement of the Wrexham-Bidston line and the replacement of the Merseyrail rolling stock. 8. CONCLUSION This report requests that Members note the content of Merseytravel‟s response to the TfW Wales & Borders rail franchise consultation that ensures that our aspirations are considered, including Borderlands Line and Halton Curve, for example. FRANK ROGERS Director General, Merseytravel Contact Officer(s): Alex Naughton Transport Policy Officer 0151 330 1319 Appendices: Appendix One – Submitted Response Appendix 1 Response to Transport for Wales’ Consultation on “Design of Wales and Borders Rail Service Including Metro” 1. Context: 1.1 Merseytravel on behalf of the Liverpool City Region (LCR) greatly welcomes this important opportunity to respond to the Transport for Wales„s consultation in regard to the Wales and Borders rail franchise. 1.2 Merseytravel is the Liverpool City Region Mayoral Combined Authority‟s (LCRCA‟s) lead advisory body and executive body on transport issues. It also advises the LCR‟s Local Enterprise Partnership (LEP) on transport matters. 1.3 The LCRCA is a statutory body covering the local authority districts of Halton, Knowsley, Liverpool, St Helens, Sefton and Wirral with a collective population of 1.5 million but a much bigger economic hinterland extending into NE Wales, Cheshire etc. The LCRCA is responsible for strategic transport planning across the city region, together with other strategic policy areas such as economic development, housing and planning, and employment and skills. It is now a Mayoral Combined Authority headed by the new elected Liverpool City Region Mayor. 1.4 Operationally, Merseytravel has responsibility for managing the devolved Merseyrail concession, developing public transport infrastructure, such as new bus and rail stations, operating the tolled Mersey Tunnels and procuring non-commercial bus services. It is also responsible for administering concessionary, pre-paid and „smart‟ ticketing and providing travel information. 1.5 Merseyrail Electrics is an urban network of vital importance to the transport infrastructure of the Liverpool City Region, operating on the Wirral and Northern lines. It is one of the most punctual and reliable railway networks in the UK, with consistently high scores for customer satisfaction. It runs almost 800 trains per day, carrying more than 100,000 passengers on an average weekday. There are 66 stations on the network, four of which are underground in the city centre, giving easy access to work, study, shopping and leisure. 1.6 This network may be useful inspiration for the proposed South Wales Metro and Valley Lines network around Cardiff. The South Wales Metro should have a distinct brand within the Wales & Borders franchise identifying a guarantee of high quality, new or refurbished rolling stock. Rolling stock similar to that being procured for the Merseyrail network would be an option – see below. 1.7 In terms of longer distance routes, the TransPennine Express franchise has set the benchmark for quality on Regional InterCity services. The franchise operator has made significant investment in new rolling stock to enhance its services. This should be the standard for the longer distance Wales & Borders services, again with a distinct brand identifying a guarantee of high quality, new or refurbished rolling stock. 1.8 Our response focuses upon services operating in the north and mid Wales areas and cross border services. It reflects our close working with adjoining local authorities and alliances such as the North Wales and Mersey Dee Rail Task Force, the North Wales Economic Ambition Board and local rail users‟ associations. Our responses are consistent in terms of our cross-border aims and aspirations. 1.9 The Wales and Borders franchise provides a number of strategic links for the region, serving a broad cross section of markets and making a valuable contribution to the Liverpool City Region in terms of supporting growth and regeneration. 1.10 As a key partner in Transport for the North (TfN), Merseytravel and the Liverpool City Region are working with authorities across the North of England to improve transport connectivity and ultimately, to rebalance the country‟s economy.