Rail North Leaders meeting with Secretary of State for Transport Rail North – DfT Partnership 24 January 2014 1
Agenda • 10.00 Meeting starts • Long Term Rail Strategy • Discussion • 10.30 Secretary of State arrives • Rail North - DfT Partnership Principles • Discussion • Electrification Task Force • 11.30 Secretary of State leaves • Discussion (if required) • 12.00 Lunch
Developing a Long Term Rail Strategy for the North of England James Lewis , Chair WYITA and representing the Leader of Leeds City Council Ben Still , Interim Director General, South Yorkshire Passenger Transport Executive; on behalf of Cllr Julie Dore , Leader of Sheffield City Council
Long Term Rail Strategy • Provides a long term perspective on how rail services can be developed to support economic growth • Takes a twenty year view on the future of the North’s passenger and freight railway • Leaders Meeting on 4 July 2013 agreed to hold a public consultation on the draft Strategy • Consultation July-October 2013 produced 111 responses including from all Local Transport Authorities in the North either individually or in groups
Dimensions of rail in the North • 15 million population, 25% of UK GVA • 534 stations in the North, 21% of the UK total • 10 franchised and 2 open access operators • Approximately 173 million passengers per year in 2011/12 • 66% growth in patronage from 2002 to 2012 • Freight flows to and from the North are more than the rest of the Country combined
Objectives of the Strategy Overarching objective to strengthen economic growth in the North Cost Connectivity Capacity Coherence effectiveness • • • • Targeted On train to A more Lower running improvements tackle coherent and costs for freight to journey overcrowding user friendly and passenger • times On track to network services • • • Improved meet Defined A more frequencies additional categories of efficient • Faster end to demand for train services network • end journeys passenger and Simpler fares freight
What the Strategy would provide The key theme is a connected network • Clear information before the trip • A single walk-up fare system across the north, integrated with other modes (not removing the opportunity for advance purchase and other discounts) • Fast and frequent links between the North’s core cities • Connected journeys to main centres and London, with certainty • Attractive trains • Convenient journey times, including for leisure and airport trips • An efficient network for moving freight to market
Areas for further consideration Overall, respondents are supportive of the approach of the Strategy Consultation has revealed six specific areas for further consideration: • Route re-openings/reinstatements and new stations • Low use stations • Named centres • Freight • High Speed Rail 2 • Implementation
Next Steps • Endorsement of the six specific areas for revision to the Strategy • Seek approval of a final Strategy in the first quarter of 2014 • At the same time, publish a full consultation report and the responses received • Strategy is very important in helping to influence future rail planning processes and underpinning the partnership with the Department for Transport
Recommendations 1. Note the progress that has been made on developing a Long Term Rail Strategy for the North of England; 2. Endorse the six specific areas that have emerged from the consultation process as the issues to be addressed in arriving at a final Strategy; and, 3. Request officers to consider these issues and present a final Strategy for endorsement by a future Leaders Meeting in Spring 2014.
Discussion
Rail North – DfT Partnership Principles
Rail North – DfT Partnership Principles The Rt Hon Patrick McLoughlin MP Secretary of State for Transport
Rail North – DfT Partnership Principles Sir Richard Leese
Our rail objectives • Decision-making for railways in the North should be devolved to the North • Our economies are ever more inter-dependent – railways play a key role • Focus should be on places in the North, their prosperity and passengers • Transport and rail must serve those places that are prospering, and those in need of regeneration • North of England authorities are best placed to understand how the substantial public funds invested in rail can drive better economic outcomes across the North
Recent progress • Rail North proposition was submitted to DfT at the end of September • All Transport Authorities in the North supported that proposition. • In November it was agreed with the Secretary of State that account needed to be taken of the scale and pace of the proposals – and a partnership should be constructed around franchise design and management • Key shared objectives include: • Growing the railway to maximise the benefits of infrastructure investment and linking this to railway efficiencies; • Having a platform for determining investment priorities within the Partnership; • Risk and reward sharing between members of the Partnership; and, • A partnership structure that allows the balance of risk to change over time
Rail North franchise output objectives • Service development in line with the economic objectives of capital investment and other initiatives. • A baseline set of services must be broadly equivalent to today’s • The capital programmes necessitate an enhancement in services from 2016 onwards if their economic objectives are to be met • Additional capacity to support growth • Multi-modal smart ticketing • Increasing quality through replacement of life-expired trains and refurbishment of older carriages • Station improvements focussing on passenger security, retail/information and car/cycle parking.
The Rail North – DfT Partnership Principles • The Partnership Principles include arrangements to ensure the franchises will be jointly designed and managed • The document is divided into three sections • The objectives and principles of devolution • Franchise design and procurement • Franchise management
Key points in officer discussions 1. Actively Rail North involvement in franchise design and procurement 2. Early discussion on franchise objectives and financial scope 3. Establishment of a senior Joint Officials Group including the Director General Rail at DfT 4. Collective resourcing of working groups and embedded staff in DfT 5. Periodic engagement between Rail North Leaders and the Secretary of State – including on any specific issues as they arise 6. The need to provide for growth (a) on day-one, and (b) during term of franchise, noting that affordability will be a key objective for both DfT and Rail North 7. Establishing constitutional arrangements in principle for the Joint Venture and Rail North by the summer
Franchise design and procurement • DfT will be responsible for the design and procurement projects and the letting of franchise contracts. The North of England will be fully involved in this period. • Reviews will take place around critical set of milestones • DfT Business Case approvals • Completion of OJEU, PQQ, prospectus and public consultation documents/plan (late Spring/early Summer) • Development of draft and final invitations to tender and further steps leading to franchise awards (latter half of 2014 onwards)
Decision-making • During franchise design phase • We will develop and formalise decision-making structures comprising of a formal Leaders’ Committee and an SPV (Rail North Ltd). • With DfT we will develop in-principle proposals for a single integrated partnership structure by May 2014.
Franchise management – after Feb 2016 • Integrated partnership structure will assume direct responsibility for managing the franchises. • Risks and responsibilities to be shared between North and DfT. Balance of risk may change over term of franchise. • An executive team should have substantial delegated responsibility • Team overseen by a Board comprising officers from authorities (representing Rail North) and DfT – could have independent chair • Accountability would be achieved by Rail North directors reporting back to a Rail North Leaders Committee • Periodic reviews between Minister and Leaders established
Recommendations 1. Note the significant progress that has been made in developing the principles around the partnership with DfT in respect to the franchising of Northern and TransPennine Express rail services. 2. Agree the Partnership Agreement as set out in this summary and in the supporting papers as a basis for further engagement. This Agreement creates a working arrangement within which we can deliver a framework for rail services which meet the requirements of Rail North subject to affordability constraints. 3. Agree that a small sub-group of Leaders should be formed to progress the devolution work until more formal structures are established, and to make suggestions as to how that group might be constructed. 4. Agree that officials should fully participate in the working arrangements outlined in the Partnership Agreement, and agree a collective approach with the DfT to resourcing these arrangements.
Discussion
Electrification Task Force David Brown DG, Merseytravel
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