04.sum.priorities.qxd 4/1/02 10:40 am Page 25 prioritiesThe short, medium and long term 04.sum.priorities.qxd 4/1/02 10:40 am Page 26 26 Section 4 The priorities – short term The Short term priorities working closely with Government and other administration Skill shortages and structural pressures set stakeholders. limits on what can be achieved in the next of Railtrack A key area, which is being tackled urgently, few years. Nevertheless, improvements can provides an is the creation of a better overall industry and must be delivered. This section planning framework. To ensure the opportunity describes these improvements, which will maximum output from a given level of to secure a provide a stable foundation on which to input, all the costs, benefits and risks of any more robust build the medium term priorities described rail investment ought to be analysed in one in the next section. and single framework. The SRA and Rail financeable The SRA’s focus will be on: Regulator have already taken steps to put industry • developing the new industry structure, this analytical process in place and it will be structure. including the transitional arrangements; developed in greater detail over the coming • delivering benefits already committed, weeks and months. including safety programmes; The SRA is also developing, jointly with • improving performance back to pre- Government, the procurement framework Hatfield levels and beyond; for new enhancement projects. This includes • developing the major upgrade projects looking at all stages of enhancement from needed to deliver the 10 Year Plan targets; prioritisation and initiation through • support for freight; development and implementation to • the refranchising programme; operation and maintenance – the objective • implementation of national programmes being to increase confidence that the of improvements throughout the network: investment will secure the desired passenger an expanded Rail Passenger Partnership and freight benefits in a cost-effective programme, the Incremental Output manner. Statement (IOS) schemes, small scale freight schemes and “Access for All”, a The new framework will introduce new risk- major initiative to improve accessibility; taking project partners through Special • tackling skills shortages and supporting Purpose Vehicles (SPVs). In essence, this innovation; means creating companies to undertake the • reviewing policy options, for example on design, building and finance of fares. enhancement projects. Work on this procurement framework is addressing the The following sections set out the SRA’s problems described in Section 2 “Delivering approach on each of these areas in turn. major infrastructure projects”. Developing the new industry To persuade the capital markets to form a structure positive judgement about the new The administration of Railtrack provides an framework, and to attract investment in opportunity to secure a more robust and long term capacity and growth, the SRA and financeable industry structure. The SRA is Government will provide further clarity and at the heart of this development process, confidence over future work load, work type 04.sum.priorities.qxd 4/1/02 10:40 am Page 27 27 and its timing, building on the project slam doors and improving Opening up priorities identified in this Plan. crashworthiness, and accessibility by enhancements ending the need for wheelchair users to However, the framework is not just a route of the network ride in the Guard’s van; to obtain extra funds. Opening up to third parties • delivery of other new coaches, particularly enhancements of the network to third where there have been delays arising from will provide parties has other objectives that will provide the industry’s acceptance process. All better value for improved value for money: strengthening industry parties have a major role to play money. project management, improving the in ensuring that the acceptance process is allocation of risk and, by introducing managed effectively and that the new competition, bringing greater efficiency trains are, right from the start, at least as (including lower whole life costs), reliable as those that they replace. For innovation and ingenuity in the electrically powered trains this has seldom development of the network. been the case and this remains a An important example of this new approach significant issue going forward, to the delivery of major enhancement particularly for performance (see Section projects is the East London Line extension, 4 “Improving performance”); which is planned to be delivered through a • completion of TPWS, which is designed design, build, finance and maintain to reduce the risk arising from Signals arrangement. The SRA, in collaboration Passed at Danger (SPADs). TPWS is with Tf L, London Underground and the being installed at around 11,000 signals concessionaire, aims to deliver the new throughout the network and legislation infrastructure in 2006. requires completion by the end of 2003; • major infrastructure and rolling stock Delivering investment already investments on the West Coast Main Line committed and CrossCountry routes are in progress. There are major ongoing investment There will be significant journey time commitments that will be delivered in the reductions on the West Coast, and short term, producing benefits across the frequencies on CrossCountry services will country. They include: be doubled, benefiting major regional • some 1,700 new coaches to be delivered centres such as Birmingham, Liverpool, by 2004, to replace 30 year old Mark 1 Derby, Bristol and Plymouth. The SRA is slam-door stock and cater for growth. The committed to improving these routes, even coaches will be introduced on the South though difficulties have been experienced to Central, Connex South Eastern and South date with rising costs. The SRA is involved West Trains franchises. At the same time, in a strategic review of the outputs of the improvements to the third rail power West Coast project, which is likely to lead supply and depot provision, and some to some scaling back from the full upgrade changes to platform lengths and clearances originally agreed in 1997; will be made. Replacement of the old • completion of the Channel Tunnel Rail trains will improve safety by eliminating Link, relieving overcrowding on parts of 04.sum.priorities.qxd 4/1/02 10:40 am Page 28 28 Section 4 The priorities – short term continued The SRA will Kent’s congested rail network and the SRA and other parties (which might establish a bringing Paris and Brussels 30 minutes include Railtrack, TOCs, freight operators new Rail closer to London; and rolling stock leasing companies). The Performance • commitment to opening new passenger Fund can be used to provide increased lines and stations, through RPP projects incentives for TOCs for whom there is no Fund to help such as Edinburgh Crossrail and the Vale immediate prospect of a new franchise improve of Glamorgan Line. agreement. Over time the Fund is likely to performance be deployed to secure small scale in the short Improving performance enhancements to the network to provide term. Section 2 “The need for better performance” added resilience at the same time as major highlighted the problem of poor performance. renewal projects, particularly signalling The SRA is working with Railtrack and train schemes, are implemented. operators to get performance back to its • extending the SRA’s benchmarking and previous 1999 peak and then improve it capability reviews: the SRA already beyond that. Actions include: monitors TOCs through franchise • review of incentive and compensation contracts, but it proposes, in conjunction regimes: the incentive regimes have been with ATOC, to extend the SRA’s criticised for encouraging a benchmarking and capability review confrontational approach between processes into specific new areas such as industry parties and creating perverse rolling stock reliability and traincrew incentives. The SRA and the Association management. This will help identify of Train Operating Companies agree that examples of good practice that can be incentives provide an important spread to other TOCs. It will also provide contribution to performance ‘early warning’ of emerging problems, so management, but that the regimes must that corrective action can be taken. be reviewed and, where appropriate, • easing the introduction of new rolling better arrangements must be put in place. stock: the SRA has already become In addition, as franchises are replaced, or increasingly involved in working with earlier if the opportunity arises, the SRA TOCs, manufacturers and Railtrack on the intends to introduce increased incentives effective management of the introduction to encourage improved performance. of new trains. This will probably be the • establishing a new Rail Performance greatest single challenge to the industry’s Fund: there is a risk that some current operational performance over the next three initiatives to improve performance may years, particularly in the South East of stall while Railtrack is in administration. England, as a result of Mark 1 replacement. The SRA will establish a new Rail The SRA believes that the introduction of Performance Fund to help improve new fleets will be much smoother in the performance in the short term, and future if the case can be made for the address that risk. One use of the Fund construction of a national test track (see will be to provide co-funding of Section 4 “Tackling skills shortages and appropriate performance initiatives between supporting innovation”). 04.sum.priorities.qxd 4/1/02 10:40 am Page 29 29 • reviewing Passenger Service Scotland) will contribute to capital The SRA will Requirements (PSRs): PSRs set out the projects; continue to minimum services operators must provide. • mechanisms will be developed to provide promote the They are being reviewed to establish funding for rail freight interchanges where development whether changes could deliver a more the market is unable to take all the risk. robust timetable and extra capacity. The In addition, the SRA will work with of innovative SRA is seeking to identify priorities for planning authorities to enable freight early action.