the uk rail market - brooks reports · the uk rail market brooks market intelligence reports, part...

The UK Rail Market

Brooks Market Intelligence Reports,

part of Mack Brooks Exhibitions Ltd

www.brooksreports.com

Mack Brooks Exhibitions Ltd © 2009. All rights reserved.

No guarantee can be given as to the correctness and/or completeness of the information

provided in this document. Users are recommended to verify the reliability of the statements

made before making any decisions based on them.

Mack Brooks Exhibitions Ltd © 2009 2

CONTENTS

Introduction

1. Main Line Railway Infrastructure 6

Network Rail

Organisation 6

Asset maintenance 7

Rail supply contracts 8

Five-year track renewals contracts 8 Civils renewals contracts 9

Telecommunications renewals contracts 9

Signalling renewals contracts 10

Control Period 4 (2009-14) (CP4) 10

CP4 delivery 10 CP4 expenditure plans: operating and maintenance expenditure 10

CP4 expenditure plans: renewals 11

CP4 expenditure plans: enhancements 11

Route Utilisation Strategies (RUSs) 13

Other national network developments 14

Electrification 14

High-speed lines 14

Strategic Freight Network (SFN) 15

Heathrow Airtrack 15 Evergreen 3 16

East West Rail 16

Tram-train projects 16

Line re-openings 16

High Speed 1 (Channel Tunnel Rail Link) 18

2. Main Line Train Operating Companies 20

The passenger franchise structure 20

Franchised passenger operators: status as at July 2009 21

Open access passenger operators 24

Franchise-holding groups/train operating parent companies 25

Train operating company/parent company website URLs 26

Rail freight operators 27


3. Rolling Stock Procurement 30

Passenger vehicles 30

Freight vehicles 33

4. Rolling Stock Leasing Companies 34

5. Transport for London (TfL) 35

Organisation 35

London Underground 36

Organisation 36

LUL Nominee BCV Ltd/LUL Nominee SSL Ltd (Metronet Rail) 36 Tube Lines 38

Expenditure plans (LUL) 38

London Overground 39

Organisation 39 East London Line (ELL) Extension 40

Expenditure plans (London Rail including London Overground) 40

Docklands Light Railway 41

Organisation 41 Expenditure Plans (DLR) 41

Crossrail 42

6. Light Rail and Light Metros 44

Blackpool 44

Edinburgh Tram 44

Glasgow Subway 45 London: Cross River Tram 45

London Tramlink 45

Manchester Metrolink 45

Midland Metro (Birmingham/Wolverhampton) 46

Nottingham Express Transit (NET) 46 Sheffield: Stagecoach Supertram 47

Tyne & Wear Metro 47


7. The Railway Supply Industry 48

Rolling stock, rolling stock components and subsystems 48

Vehicle maintenance equipment and services/refurbishment 49

Revenue collection, access control, passenger information systems 50

and station equipment

Track products 50 Track maintenance and renewals equipment and products 51

Track maintenance and renewals services 52

Signalling and communications systems 52

Traction power supply and electrification systems 53

Civil engineering and construction/infrastructure maintenance 53


Introduction

The main line railway system in Great Britain is widely acknowledged to be the fastest growing in Europe. Passenger numbers have increased by nearly 50 per cent to 1.27 billion

since the network was privatised in the 1990s. Further significant growth is expected as the

country’s population increases and rising fuel prices and environmental concerns influence

transport modal choices. Rail freight has also been experiencing a revival, with tonnage

growing 7 per cent in the 10 years to 2006-07. Despite a slight decline in 2007-08 and a further slight fall in tonne-km in 2008-09, an increase of 30 per cent is forecast over the next decade.

However, this healthy rail market brings challenges for the industry – not least in providing

extra capacity in an already crowded system while delivering value both for rail users and

taxpayers. In 2009 the Government announced plans to undertake the first long-distance main line electrification since the late 1980s. Earlier in the year, a state company was set up to

develop proposals for a future high-speed rail network. Other significant investments feature in

Network Rail’s five-year spending plans up to 2014 as the industry responds to forecasts of

continuing increases in rail transport demand. As well as steps to provide extra capacity

through network enhancements such as track and signalling improvements, investments are also being made to increase the size of the rolling stock fleet.

In Scotland and Wales, devolution has given government agencies there the powers to promote

infrastructure and rail service projects that meet the needs of their national populations, a step

that has already delivered benefits, with more major initiatives planned, especially in Scotland. A similar step has been taken in the capital, where Transport for London has created the

London Overground system.

London remains the main focus of urban rail development in Great Britain. In 2008 the £16

billion cross-city Crossrail project received Royal Assent, signalling the start of one of the largest rail construction projects in Europe. Coupled with the £5.5 billion Thameslink scheme

and the ongoing upgrade of the London Underground network, rail development activity in the

capital is set to be intensive over the next decade. Outside London, there are limited moves

towards the provision of additional light rail systems, notably in Edinburgh, where work is

underway on the city’s first line, and Manchester, where the existing network is being significantly extended.

Overall, the rail market in Great Britain offers good long-term business opportunities for

suppliers, with continuing investments in prospect to develop the system and enhance capacity

to meet growing demand for both passenger and freight traffic. In this report, we summarise the principal industry participants and indicate where current investment plans are focused. In

2009 major industry developments continued to occur with some frequency: this report

generally reflects the status as at July 2009.

July 2009


1. Main Line Railway Infrastructure

Network Rail

Network length: 15,795 route-km (9,809 route-miles) Electrification: 3,215 km (1,959 miles) at 25 kV AC 50 Hz overhead; 1,993 km (1,215

miles) at 750 V DC third rail; 19 km (12 miles) at 1.5 kV DC

Stations: 2,520

Website: www.networkrail.com

Organisation

Responsible for track and other fixed assets and for the day-to-day control and regulation of

train running, Network Rail is the dominant force in the UK rail infrastructure market. It was

established following the 2002 collapse of Railtrack, and is a state-owned company limited by

guarantee. It operates commercially but surpluses are re-invested in the business. Its principal

source of income is track access charges paid by passenger and freight operators. In 2009 Network Rail employed around 35,000 people.

Changes implemented by the Government in 2005, most notably the abolition of the Strategic

Rail Authority, have strengthened the role of Network Rail, especially in its overall supervision

of the network and its performance. The Government, via the Department for Transport’s Rail Group (www.dft.gov.uk), sets overall strategic policy for the network and ensures the cost-

effective and timely delivery of major rail projects.

The Railways Act 2005 vested certain devolved powers in the Scottish Executive, providing it

with authority both to promote new projects and to specify and fund passenger-related network and infrastructure enhancements. Implementation of projects is undertaken by Transport

Scotland (www.transportscotland.gov.uk), the Scottish Executive’s national transport agency.

In December 2008 Transport Scotland published its Strategic Transport Projects Review

(STPR), which set out to define the most appropriate strategic investments in Scotland’s

national transport network from 2012. The STPR can be found at:

http://www.transportscotland.gov.uk/projects/strategic-transport-projects-review

The Railways Act 2005 also transferred to the Welsh Assembly Government

(http://wales.gov.uk) most of the functions pertaining to rail transport in Wales that previously rested with the former Strategic Rail Authority and the Westminster Government. Under the

Act the Assembly Government is able to develop and fund infrastructure enhancement schemes

and to fund rail freight improvement schemes, among other functions. In 2009 National

Transport Plan consultation was under way. This will set out the detail of how the Wales Transport Strategy will be delivered over the next five years. This document can be found at:

http://wales.gov.uk/docs/det/consultation/090715nationaltransportplanen.pdf


Network Rail’s stewardship of the national rail network is regulated by the Office of Rail

Regulation (ORR) (www.rail-reg.gov.uk), a non-ministerial government department that ensures the company is meeting its obligations to its train-operating customers and its

stakeholders. The ORR also determines Network Rail’s funding levels and investment and

performance targets during five-year periods known as Control Periods (CPs). The current

Control Period, CP4, commenced in April 2009 and covers the period up to March 2014. The

level of expenditure set by the ORR for CP4 is £28.5 billion. This determination was influenced by the Government’s 2007 White Paper ‘Delivering a Sustainable Railway’,

together with two other key Government documents: High Level Output Specifications

(HLOSs), issued by the Westminster Government for England and Wales and by the Scottish

Government for Scotland, detailing what government wants to buy from the railway; and

Statements of Funds Available (SoFAs), detailing money the industry will receive to deliver these services. Summaries of expenditure under CP4 appear below.

Network Rail’s engineering and maintenance activities are organised as five Asset

Management Territories at six regionally located Asset Management Centres:

• London North Eastern

• London North Western

• Scotland

• South East (Anglia)

• South East (South) • Western

These cover eight groups of routes:

• Anglia • Kent

• London North Eastern

• London North Western

• Scotland

• Sussex • Wessex

• Western

As part of a strategy of improving its organisational effectiveness, Network Rail plans to create a National Control Centre in Milton Keynes, expected to become operational by 2012. This

will oversee investment operations, information management and logistics and will act as the

hub for passenger information.

Asset maintenance

A key activity for Network Rail is the ongoing maintenance of its fixed assets to ensure these

are safe, fit-for-purpose and delivering the performance required by train operators. This falls into three main areas: maintenance, renewals and ‘civils’. Renewals are substantially


concerned with the ongoing replacement of track and other operational assets at the end of their

working lives but also cover other fixed assets. The maintenance and renewals of civils

guarantees the condition of the physical infrastructure on or around which the railway is built.

Network Rail’s predecessor, Railtrack, adopted a policy of outsourcing these functions, placing

large fixed-period contracts covering specific territories with companies mostly created by

privatising the British Rail businesses that had previously undertaken this work. In 2003-04,

maintenance was taken back as an in-house function to improve the quality of maintenance and to reduce costs. More than 15,000 staff transferred from the seven infrastructure maintenance

companies (IMCs) to Network Rail. Consequently, procurement of spares, consumables and

services to support in-house maintenance is a major activity for Network Rail. Network Rail

has its own fleet of more than 2,200 rail vehicles valued at approximately £750 million.

Renewals and civils continue to be outsourced and remain the subject of fixed term territorial

contracts (see below).

Rail supply contracts

The main materials required for track renewals – principally ballast, rail and sleepers – are

purchased centrally by Network Rail. In December 2005 Network Rail signed contracts with

two companies covering the supply of rail:

• Corus was awarded a seven-year contract with three- to five-year extension options,

with orders worth £40-50 million expected in the first year.

• Voestalpine was awarded a five-year contract with three- to five-year extension

options, with orders worth around £12-16 million expected in the first year.

Five-year track renewals contracts

Renewals are undertaken by a small number of specialised contractors. Initially, in 2004, NR

awarded five-year renewals contracts to six suppliers. This strategy was revised in 2007, when the number of contractors was reduced to four, with unfulfilled contracts ‘bought out’ by NR.

For the first time it also brought plain line and switches & crossings renewals together under a

single contractor for each area. Options exist to extend the contracts to 2014.

Contractor

Territory (Area)

Amey Rail/Colas Rail joint venture

London North Western (West Coast South, West Midlands); Western (Thames Valley, Wales & Marches, West Country)

Babcock Rail London North Western (Lancs & Cumbria, Liverpool,

Manchester); Scotland (East, West)

Balfour Beatty South Eastern (Anglia, Kent, Sussex, Wessex)

Jarvis Rail London North Eastern (East Midlands, Great Northern, North

Eastern)


Civils renewals contracts

As with track renewals contracts, civils renewals contracts are placed by Network Rail on a territorial basis. In 2005 successful bidders were named for new-style shared-risk five-year

‘framework’ contracts. They are:

Contractor

Area Approximate first year

value

Birse Midlands £20 million

Birse North West £25 million

Kier South East (Anglia) £20 million

May Gurney London North Eastern £25 million

McAlpine Western £25 million

Mowlem Scotland £20 million

Nuttall South East (South) £25 million

In February 2006 Network Rail announced the awards of three-year framework contracts for

minor civil works (projects with a value of less than £50,000):

Contractor

Area Approximate first year

value

Amalgamated Construction London North Eastern London North Western

Western

£10 million £6.5 million

£4 million

Construction Marine London North Eastern £1 million

DMQA London North Eastern £2 million

Dyer & Butler South East (South)

Western

£10 million

£2 million

B & M McHugh South East (South) £2 million

J Murphy & Son London North Western £3.5 million

Nuttall Scotland £4.5 million

Telecommunications renewals contracts

In January 2005 Network Rail awarded five-year framework telecommunications renewals

contracts to four companies as follows:

Contractor

Area Estimated first year value

Babcock Rail London, North East and

Scotland

£3 million

Marconi South Eastern £4 million

Siemens Western £2 million

Thales London North West £2 million


Signalling renewals contracts

In October 2006 Network Rail awarded framework contracts for Type ‘A’ major resignalling schemes to four companies as follows:

Contractor

Area Estimated first three years

value

Alstom North Thames £50 million

Atkins South Wales £95 million

Siemens South Thames £48 million

Westinghouse Rail Systems East Midlands £73 million

Westinghouse Rail Systems West Midlands £105 million

Westinghouse Rail Systems Glasgow £42 million

In January and February 2007 Network Rail awarded five-year framework minor signalling

renewals agreements covering contracts of up to £300 million to five companies as follows:

Contractor

Area

Amey West

Babcock Rail North West, Scotland

Carillion Rail South Thames

Jarvis North East

May Gurney North Thames

Control Period 4 (2009-14) (CP4)

CP4 delivery

In March 2009 Network Rail published its Control Period 4 (2009-14) Delivery Plan 2009

covering CP4, the period from April 2009 to March 2014. The Delivery Plan is intended to

replace the annual business plans previously produced by Network Rail.

A more detailed breakdown of the figures summarised below, including per-year expenditure

plans, can be found in the Network Rail document at:

http://www.networkrail.co.uk/browse%20documents/StrategicBusinessPlan/Delivery%20Plan/

2009/CP4%20Delivery%20Plan%202009.pdf

CP4 expenditure plans: operating and maintenance expenditure

During the five-year period covered by CP4, the total operating and maintenance expenditure is set at £11,444 million, summarised as shown below.


CP4 (2009-14): Network Rail operating and maintenance

expenditure (£million, 2009-10 prices)

Controllable opex 4,397

Non-controllable opex 2,253

Maintenance 4,794

TOTAL 11,444

Controllable opex mainly covers operations delivery staff, especially signallers. Non-

controllable opex includes electricity purchased for traction and British Transport Police costs.

CP4 expenditure plans: renewals

Expenditure on renewals during the period covered by CP4 is set at £11,478 million,

summarised as shown below.

CP4 (2009-14): Network Rail renewals expenditure by

asset (£million, 2009-10 prices)

Track 3,425

Signalling 2,167

Civils 1,719

Operational property 1,207

Electrification 614

Telecommunications 963

Plant and machinery 393

IT and other 780

Expenditure deferred from 2008-09

211

TOTAL 11,478

CP4 expenditure plans: enhancements

Expenditure on enhancements during the period covered by CP4 is set at £11,698 million,

summarised as shown below.

CP4 (2009-14): Network Rail enhancements expenditure

(£million, 2009-10 prices)

PR08* (England and Wales) 7,612

PR08* (Scotland) 410

Non-PR08 3,676

TOTAL 11,698


Of the projects funded by the CP4 Periodic Review (shown as PR08* in the table), the largest

by far is Thameslink, with budgeted expenditure of £2,913 million during CP4. Major investment will also be directed at East Coast Main Line improvements (£557 million),

Reading improvements (£514 million) and West Coast Main Line schemes (£495 million).

Non-PR08 projects are those subject to individual contracts or funding, some of which are not

yet committed schemes. Examples include works on the Network Rail system related to

Crossrail, Edinburgh-Glasgow electrification, projects related to the London 2012 Olympics, the Airtrack scheme and Transport Innovation Fund W10 gauge enhancements for larger

containers.

A more detailed document covering Network Rail’s enhancement investment plans during CP4

was published at the end of June 2009 and is available at:

http://www.networkrail.co.uk/documents/5764_Enhancements%20Document%20June%20200

9.pdf

Examples of enhancement projects, some of which extend beyond CP4, include:

• Thameslink – a DfT-specified project, accounting for a budgeted £2.9 billion during

CP4 and £5.5 billion overall. Thameslink is an enhancement scheme intended to

increase both the capacity and extent of the existing Thameslink north-south cross-

London electrified heavy rail network. This will enable trains from Peterborough and King’s Lynn as well as Bedford to cross the capital to an increased range of

destinations in the south that includes Ashford, Dartford, Eastbourne, Littlehampton

and Guildford. The project will raise the number of peak hour services in each direction

from eight to 24 and will allow longer (12-car) trains to be run. Strategic responsibility

for the project now rests with the Department for Transport, with Network Rail responsible for its executive delivery. Government approval of the scheme was given in

2007. The project is to be delivered in two phases, with Phase 1 completed for the

December 2011 timetable change (in time for the London Olympics) and Phase 2 by

December 2015. Work on one of the first major components of the scheme, the £350

million remodelling of Blackfriars station, commenced in 2008 for completion in 2011. • Crossrail – see Section 5.5. Although this has become a Transport for London project,

it involves the use of parts of the existing NR system, for which extensive remodelling

will be needed.

• Reading station capacity enhancement – a DfT-specified scheme developed by

Network Rail in collaboration with Reading Borough Council that entails track remodelling and signalling changes aimed to minimise conflicting moves and increase

platform capacity. It is also expected that Crossrail will eventually be extended to

Reading and the alignment from Maidenhead has been safeguarded by the DfT. Work

will take place from 2009 to 2015, with the project’s cost estimated at £425 million.

• King’s Cross station expansion – a DfT baseline scheme to provide a new western concourse, with most of the work scheduled for completion by 2012, in time for the

London Olympics, and the entire scheme finished by 2013. Network Rail is investing

£400 million in the project, with additional funding from the DfT.

• Birmingham New Street Gateway station improvements – a £600 million redevelopment scheme announced in February 2006, with £135 million budgeted

during CP4.


• East Coast Main Line upgrades – budgeted at £557 million during CP4.

• Access for All and National Stations Improvement Programme – budgeted at £232

million and £99 million respectively during CP4. • Platform lengthening (southern) – budgeted at 350 million during CP4.

• Preparatory work for Intercity Express Programme (IEP) - £275 million during

CP4.

• DfT optional enhancement projects – ORR determination of £681 million during

CP4. • Airdrie-Bathgate Rail Link (www.airdriebathgateraillink.co.uk) – reinstatement of an

abandoned section of track and electrification to create an additional double-track route

between Edinburgh and Glasgow. Undertaken by Network Rail on behalf of Transport

Scotland. The project is costing £300 million, with £202 million budgeted during CP4.

A first phase, provision of double track between Edinburgh and Bathgate, was completed in October 2008; the entire scheme is due to be commissioned by December

2010.

• Glasgow Airport Rail Link (GARL) – a Transport Scotland project

(http://www.transportscotland.gov.uk/projects/garl) covering the upgrading of 9 km of

existing track, altering platform arrangements at Glasgow Central station and construction of 1.9 km of new track to serve Glasgow Airport, where passenger usage

could rise to 24 million annually by 2030. The enabling legislation was initially

promoted by Strathclyde Passenger Transport but in 2008 was taken over by Transport

Scotland. Tendering commenced in 2008; main construction work is due to start in

2009 for completion by 2011. Estimated cost is £210 million, of which £155 million is budgeted in CP4, with Network Rail responsible for project delivery.

• Strategic freight network enhancements – during CP4 £220 million is budgeted

following a government funding package of £330 million announced in 2007 to

improve the capacity of the rail freight network. Much of this investment will be for

W10 gauge enhancement to enable operators to carry 9ft 6in maritime containers, especially from the ports of Felixstowe and Southampton.

• Waverley Railway Project (www.waverleyrailwayproject.co.uk) – now authorised by

the Scottish Parliament and under the control of Transport Scotland are plans to

reinstate 56 km of the former Waverley Route line from Edinburgh to Tweedbank in

the Scottish Borders, costed at £235-295 million. Work is expected to start in 2011 for completion by 2013. The line will be provided with six stations.

Route Utilisation Strategies (RUSs)

Established and maintained by Network Rail, RUSs form long-term strategies for the

development of the network and of its capabilities. Details of the TUS process and copies of

individual RUSs can be found at:

http://www.networkrail.co.uk/browseDirectory.aspx?dir=%5CRUS%20Documents&pageid=2895&root=


Other national network developments

Electrification

In July 2009 the DfT announced its intention to initiate electrification of two routes:

• The Great Western Main Line from London to Swansea, and including the sections

from Reading to Newbury and Didcot to Oxford. This is expected to be completed in eight years at an approximate cost of £1 billion, with some sections commissioned

earlier. In the Thames Valley, this could enable Crossrail services to continue west

beyond Maidenhead to Reading.

• Liverpool-Manchester via Earlestown. This is expected to be completed in four years at

an approximate cost of £100 million. This will enable electric services to be operated between Manchester and its airport to Glasgow and Edinburgh.

A DfT document detailing these plans can be found at:

http://www.dft.gov.uk/pgr/rail/pi/rail-electrification.pdf

The announcement followed the findings of a cross-industry working group that included the

DfT, Network Rail, train operators and the railway supply industry to develop options for a

potentially extensive programme of main line electrification. This resulted in Network Rail’s

Route Utilisation Strategy: Electrification.

Among factors influencing this were uncertainties over future oil prices and supply and the

forthcoming need to replace fleets of diesel-powered trains at the end of their working lives.

Still under review in mid-2009 was possible electrification of the Midland Main Line north of

Bedford to Derby/Nottingham and Sheffield; Manchester-Preston and Liverpool-Preston.

In Scotland, the Strategic Transport Projects Review (STPR), published by Transport Scotland

in 2008 (http://www.transportscotland.gov.uk/projects/strategic-transport-projects-review),

supports the phased electrification of key routes in the country, initially covering:

• Edinburgh-Glasgow via Falkirk High and Cumbernauld-Dunblane/Alloa

• Remaining Central Belt routes

Subsequent possible phases, extending beyond the period covered by the STPR, cover:

• Edinbrugh-Perth/-Dundee, including the Fife Circle

• Dunblane-Aberdeen

• Perth-Inverness

High-speed lines

In early 2009 the DfT announced the formation of High Speed 2, a government-owned

company charged with considering the case for a high-speed railway linking London with the

West Midlands and beyond to Manchester, West Yorkshire, northeast England and Scotland.


The company is to publish plans for a new line between the capital and the West Midlands by

the end of 2009, including route, financing and construction options. Also to be considered will

be interchanges at Heathrow Airport, Crossrail and connections with High Speed 1.

Previously, in June 2008 Network Rail announced that it planned to conduct a strategic review

into the case for building new lines in Great Britain. The review was to study five of Network

Rail’s key routes north and west of London: Chiltern; East Coast; West Coast; Great Western;

and Midland main lines. Its background is that Network Rail anticipates that even after current capacity enhancement programmes are completed, by 2025 many existing routes will become

saturated; the construction of new high-speed lines linking principal cities would free some

long-distance traffic from existing routes to allow an increase in middle- and short-distance

passenger services and freight.

Both main UK political parties in 2008 announced their broad support for high-speed rail.

Earlier, the Greengauge 21 (www.greengauge21.net), a not-for-profit company limited by

guarantee, had also initiated a development programme to study the potential for high-speed

rail in five UK corridors.

Strategic Freight Network (SFN)

In May 2009 the DfT published its Strategic Freight Network: The Longer-Term Vision document. Included in this were elements of the future SFN that might be implemented in CP5

(2014/15-2018/19) and beyond in response to anticipated traffic levels. The document can be

found at:

http://www.dft.gov.uk/pgr/rail/strategyfinance/strategy/freightnetwork/

Heathrow Airtrack

Heathrow Airtrack is a scheme developed by BAA plc to provide a link to London Heathrow Airport from the south and west. It will operate in each direction from Heathrow Terminal 5 to

London Waterloo, Guildford and Reading. In addition, some Heathrow Express services will

be extended through Heathrow Terminal 5 to Staines. In July 2009 an application was made for

an order to proceed with the scheme under the Transport and Works Act. This is expected to be

granted in 2010. A start of works is envisaged in early 2011, with trains running by 2014.

The project entails construction of 4 km of new railway to connect the sub-surface station at

Terminal 5 to the existing Windsor line near Staines. Estimated approximate cost is £700

million. More details can be found at:

http://www.heathrowairport.com/portal/page/Heathrow^General^Our+business+and+communi

ty^Heathrow+Airtrack/100046e4daa55110VgnVCM10000036821c0a____/448c6a4c7f1b0010

VgnVCM200000357e120a____/


Evergreen 3

Evergreen 3 is an initiative by Chiltern Railways to undertake works that will enable it to

introduce a London Marylebone-Oxford service via Bicester. This will entail construction of a

short north-to-west chord from the existing Marylebone-High Wycombe-Aynho Junction line

at Bicester to the Bicester Town-Oxford line, which would be extensively upgraded and partly

re-doubled. The Bicester Town-Oxford line also forms part of the proposed East West Rail scheme between Oxford and Milton Keynes and beyond. Chiltern Railways plans to submit an

application for an order to proceed with the scheme under the Transport and Works Act in

autumn 2009. Evergreen 3 will not be dependent on public funding. Details of the proposal

can be found at:

http://www.chiltern-evergreen3.co.uk

East West Rail

East West Rail is a major proposal to establish a strategic railway connecting East Anglia with

central, southern and western England. It is promoted by the East West Rail Consortium, a

group of local authorities and businesses with an interest in improving access to and from East

Anglia and the Milton Keynes/south Midlands growth area. Its route is divided into three

sections: Eastern (Ipswich/Norwich-Cambridge); Central (Cambridge-Bedford); and Western (Bedford-Oxford/Swindon). For much of the route existing rail infrastructure will be used,

although most sections will require some upgrading. Where the railway has been mothballed or

abandoned, new infrastructure will be required. Part of the Western section is planned to be

upgraded under Chiltern Railways’ Evergreen 3 project (see above).

In 2009 the project team was continuing to gather support for the proposal. More details can be

found at: http://www.eastwestrail.org.uk

Tram-train projects

In a bid to reduce the cost of operating services on local lines, The DfT in 2008 initiated

implementation of a ‘tram-train’ trial project on the 59 km (37 mile) Penistone Line between

Huddersfield and Sheffield. Due to start in 2010, the trial will involve the use of five

lightweight tram-train vehicles to be procured by the line’s operator, Northern Rail. A second phase of the project could see the vehicles tested on the Sheffield Supertram system to validate

the potential for true tram-train operations in which direct running is achieved between main

line and city urban rail systems.

Line re-openings

In June 2009, the Association of Train Operating Companies (ATOC) published its Connecting

Communities report which proposed the re-opening of up to 14 closed lines and the creation of stations at 40 locations no longer served by rail. Over the following nine months ATOC was to


carry out further analysis with train operators, Network Rail and local authorities to validate

the work so far undertaken, and to confirm those routes that would justify safeguarding.

Safeguarding would then be taken forward by Network Rail in conjunction with local authorities and involvement of the DfT, through the Route Utilisation Strategy process.

Justified schemes might be implemented from 2014 onwards (CP5 and beyond). More

information can be found at: www.atoc-comms.org


High Speed 1 (Channel Tunnel Rail Link)

Network length: 113 route-km (70 route-miles) Electrification: 113 km (70 miles) at 25 kV AC 50Hz overhead;

Websites: www.lcrhq.co.uk; www.highspeed1.com

Organisation

Opened throughout in November 2007, High Speed 1, formerly the Channel Tunnel Rail Link

(CTRL), was built and is owned and operated by London & Continental Railways (LCR), the

Government’s partner in the public-private partnership that took the project through to

completion. LCR also owns Eurostar (UK) Ltd, the UK’s share of the tri-national Eurostar

high-speed train operation. LCR consortium members are: Arup; Bechtel; Halcrow; EDF Energy; National Express Group; French National Railways (SNCF); Systra; and UBS.

Construction of the CTRL was subcontracted to LCR subsidiaries: Union Railways (South)

was responsible for the Section 1, from the Channel Tunnel to a temporary connection with the

national network at Fawkham Junction near Swanley, which opened in 2003; Union Railways (North) undertook construction of the more heavily engineered section from Southfleet to

Central London, which opened in November 2007.

The opening of the new railway throughout in November 2007 saw St Pancras International

become the London terminal for Eurostar services to/from Brussels and Paris in place of Waterloo International. It also saw commissioning of a major new intermediate station at

Ebbsfleet, in north Kent, and will eventually see one at Stratford, east London. Coinciding with

this has been a reduced role for Ashford International for Eurostar services. Completion of the

line throughout also saw Eurostar fleet maintenance activities in the UK transferred from a

depot at North Pole in West London to a new facility at Stratford.

In June 2009 ‘preview’ domestic high-speed services operated by Southeastern commenced

over High Speed 1 as a preview to implementation of a full commuter timetable in December

2009. These initial services run from Ashford International and Ebbsfleet. From December

2009 trains will originate at various points in Kent and will join High Speed 1 at Ashford International and Ebbsfleet. A fleet of 29 Hitachi-built Class 395 six-car EMUs will be used,

operating from a purpose-built maintenance facility at Ashford.

In June 2009 the Department for Transport announced that the government had taken formal

control of LCR and its financial subsidiaries, exercising the controls it has had over the company since it took its special shareholding in 1999. This was a first step towards the sale of

an operating concession for the company in a move aimed at enhancing service levels for users

and at maximising benefits for taxpayers. Parliamentary powers to restructure LCR were

obtained in 2008 and in May 2009 the European Commission approved government plans to

provide state financial aid to assist restructuring. It is expected that parts of LCR will be sold separately, principally as three components: High Speed 1; Eurostar UK; and the company’s

property assets.


The liberalisation of international passenger rail services linking EU countries which takes

effect in 2010 could see other operators using High Speed 1, including possible new market

entrants. In 2008 Air France was reported to be studying an entry into the market in collaboration with transport and utilities company Veolia, citing London as one destination it

might serve. The use of the line for express air cargo services has been mooted and in 2009

plans were moving ahead to introduce freight traffic over the line from 2010, enabling

continental gauge vehicles to reach London.

Maintenance and operation of High Speed 1 is subcontracted to Network Rail (CTRL) Ltd.


2. Main Line Train Operating Companies

The passenger franchise structure

Background

In July 2009 there were 19 franchised passenger train operating companies active in Great

Britain. These represent most of the passenger operations of the former British Rail. Franchise

contracts are of varying length and most are awarded by the DfT, responsibility for this

function having passed to the ministry on disbandment in 2005 of the Strategic Rail Authority. Exceptions to this are:

• Arriva Trains Wales – this franchise is specified and monitored jointly by the DfT and

the Welsh Assembly Government.

• First ScotRail – the Scottish Executive is responsible for letting and monitoring the ScotRail franchise and for grants to support domestic services in Scotland.

• London Overground Rail Operations – in 2007 responsibility for parts of the

national network previously operated as part of the former Silverlink franchise was

transferred to Transport for London (Section 4).

• Merseyrail – in 2003 responsibility for the franchise contract to run electrified suburban services in the Merseyside area passed from the SRA to the Merseyside

Passenger Transport Executive.

The structure of the ‘franchise map’ now differs substantially from that put in place when BR

privatisation was initiated in 1996 and reflects further significant changes implemented progressively up to late 2007 in a DfT initiative to reduce the number of franchises and

eliminate operating conflicts at certain London terminals. Some franchises attract subsidies

which support unremunerative services, mostly in the regional sector, while others which

generate surpluses make premium payments to the DfT. The levels of these

subsidies/premiums form a key element of the bidding that takes place for franchise contracts.

Franchise contract awards also usually incorporate investment commitments by the successful

bidder, Network Rail, the Government or other agencies. Selected examples of investment

plans linked to some recent contracts include:

• East Midlands Trains: rolling stock refurbishment; depot investments at Derby;

increased car parking provision; new stations at Corby and East Midlands Parkway.

• London Midland: new diesel and electric rolling stock; investments of £11.5 million in

stations; increased car parking provision.

• Southern: capacity enhancements; rolling stock refurbishment; station refurbishment and improvements; increased car parking provision.

Some franchises covering major metropolitan areas other than London include services

specified and receiving additional financial support from passenger transport executives (PTEs).


Most passenger franchises are run by private sector transport operators with extensive bus

interests, although there are exceptions (see Section 2.1.1), and as the market has matured,

there has been increased participation by foreign companies, usually in joint-venture partnerships with UK-based firms.

Since the commencement of privatisation in 1996-97, passenger rail usage has risen

continuously. In 2008-09 the number of passenger journeys totalled 1.27 billion, an increase of

3.4 per cent on the figure for 2007-08. This indicates a slowing of growth compared to the previous year when there was an increase of 6.9 per cent. In 2008-09 passenger-km also rose

by 3.4 per cent to 50.7 billion, compared to growth of 6 per cent the previous year. The British

network remains the fastest growing railway in Europe. DfT forecasts suggest that passenger-

km could rise to 60 billion by 2018.

Passenger rail usage, alternate years 2000-01 to 2008-09: franchised operators

2000-01 2002-03 2004-05 2006-07 2008-09

Passenger

journeys

(million)

957 976 1,045 1,164 1,270

Passenger-

km (billion)

38.2 39.7 41.8 46.5 50.7

Source: Office of Rail Regulation

Economic regulation of the railway system in Great Britain is undertaken by the Office of Rail

Regulation (ORR), established in July 2004 under the Railways and Transport Safety Act 2003. It is an independent statutory body led by a Board appointed by the Secretary of State for

Transport.

In the passenger rail transport sector it is responsible for licensing operators of railway assets,

setting the terms for access by operators to the network and other railway facilities, and enforcing competition law in the rail sector.

In April 2006, the ORR became the health and safety regulator for the rail industry when

responsibility was transferred from the Health and Safety Executive (HSE).

Franchised passenger operators: status as at July 2009

See tables on following pages.


Open access passenger operators

Scheduled operators

Railway privatisation legislation provides for new passenger operators to enter the market,

albeit subject to strict ‘moderation of competition’ rules that protect franchised operators. As a

result a small number of companies have commenced services that mainly cover routes and

destinations less well served by the franchise structure. In mid-2009 operators providing scheduled open access (i.e. non-franchised) passenger services were:

• First Hull Trains (www.hulltrains.co.uk) operates services without subsidy between

Hull and London Kings Cross via the East Coast Main Line. The company is majority-

owned FirstGroup plc with Renaissance Trains as a partner.

• Grand Central Railway Company Ltd (www.grandcentralrail.co.uk) commenced its

services between Sunderland and London Kings Cross via the East Coast Main Line in

early 2008. ORR approval has been obtained by sister company Grand Union to

introduce a Bradford-London service, expected to be launched in December 2009. Grand Central is owned by private equity interests, which acquired it from Fraser Eagle

Group in 2007.

• Heathrow Express (www.heathrowexpress.com) – wholly owned by BAA plc, the

operator of London Heathrow Airport, Heathrow Express provides high-frequency electrified services from London Paddington for airport passengers and workers.

Operations also include the Heathrow Connect stopping service, introduced in 2005.

BAA also owns the short section of line from the Great Western Main Line at Hayes to

Heathrow’s central terminal area.

• Wrexham, Shropshire and Marylebone Railway Co

(www.wrexhamandshropshire.co.uk) operates scheduled locomotive-hauled services

linking Wrexham, Shrewsbury and Wolverhampton with London Marylebone via the

Chiltern route. The company was created by Renaissance Trains, with Laing Rail (now

owned by Deutsche Bahn, operator of the Chiltern Railways franchise) as a partner.

Also providing scheduled non-franchised services is:

• Eurostar UK (www.eurostar.com) – a subsidiary of London & Continental Railways

Ltd, the company formed to build, finance and operate the Channel Tunnel Rail Link (CTRL), now known as High Speed 1. It operates high-speed services between London

and Brussels/Paris. Eurostar UK has a shareholding of 32.5 per cent in the Eurostar

Group, with the remaining stakes held by the national railway companies of Belgium

and France. In 2008 Eurostar services carried 9.1 million passengers, an increase of 10.3 per cent on the 2007 figure of 8.26 million. Traffic continued to benefit from

completion throughout of High Speed 1 and the commissioning of St Pancras


International station in November 2007. Passenger numbers in the first quarter of 2009

were 1.92 million, down 11.5 per cent on 2.17 million the previous year. The decline

was mainly attributed to the economic environment and to service disruption caused by a lorry shuttle fire in the Channel Tunnel, which reopened fully in February 2009.

Non-scheduled operators

Several operators hold licences to run charter and excursion traffic over the Network Rail

system. They include:

• DB Schenker Rail (UK) Ltd (www.rail.dbschenker.co.uk) – formerly English Welsh

& Scottish Railway (EWS), the UK’s principal freight operator uses its nationwide operating licence to provide traction, traincrew and in some instances rolling stock for

excursion and charter operations, as well as for operators of scheduled services.

• Direct Rail Services (www.directrailservices.com) – a wholly owned subsidiary of the

Nuclear Decommissioning Authority and primarily a freight operator, DRS also

provides traction, rolling stock and traincrew for passenger charter services. • Orient Express Hotels Ltd (www.orient-express.com) – the company operates regular

excursion and occasional charter services using three luxury trains: The Northern Belle;

The Orient Express; and The Royal Scotsman. Traction is provided by other operators.

• Riviera Trains (www.riviera-trains.co.uk) – provides locomotives and coaching stock

for use by charter and scheduled train operating companies. • West Coast Railway Co (www.wcrc.co.uk) – operates the seasonal steam-hauled

services. It is also a major provider of traction and rolling stock, traincrew and

operational services for other operators.

• Vintage Trains (www.vintagetrains.co.uk) – operates occasional excursion and charter

services.

Franchise-holding groups/train operating parent companies

Groups holding franchises or parent companies of non-franchised operators in Great Britain in July 2009 were:

• Arriva plc

Arriva Trains Wales; CrossCountry; also active in rail operations in mainland Europe.

• BAA plc

Heathrow Express; Heathrow Connect

• Deutsche Bahn

Chiltern Railways; Wrexham, Shropshire and Marlylebone Railway (non-franchised); joint-venture partner with MTR Corporation to operate London Overground Rail

Operations (see Section 5.3).

• FirstGroup plc


First Capital Connect; First Great Western; First ScotRail; First TransPennine Express

(joint-venture between FirstGroup and French transport group Keolis; First Hull Trains

(non-franchised); First GBRf (freight operator).

• GoVia (joint-venture between Go-Ahead Group plc and French transport group Keolis)

London Midland; Southeastern; Southern.

• London & Continental Railways Ltd Eurostar UK.

• MTR Corporation

Joint-venture partner with DB Regio to operate London Overground Rail Operations

(see Section 5.3).

• National Express Group plc

c2c; National Express East Anglia; National Express East Coast (until late 2009, when

control passes to a government owned company pending re-franchising).

• Serco-NedRailways (joint-venture between Serco Group plc and Netherlands

Railways)

Merseyrail; Northern Rail. On its own account Serco also has a contract to operate

Docklands Light Railway in London, as well as overseas activities.

• Stagecoach plc

East Midlands Trains; South West Trains; joint-venture partner with Virgin Rail Group

to operate Virgin West Coast. Also operates Manchester’s Metrolink and Sheffield

Supertram light rail systems.

• Virgin Rail Group

Joint-venture partner with Stagecoach plc to operate Virgin West Coast.

Passenger train operating company/parent company website URLs

Arriva plc www.arriva.co.uk

Arriva Trains Wales www.arrivatrainswales.co.uk

c2c www.c2c-online.co.uk

Chiltern Railways www.chilternrailways.co.uk CrossCountry www.crosscountrytrains.co.uk

Deutsche Bahn www.db.de

Direct Rail Services www.directrailservices.com

East Midlands Trains www.eastmidlandstrains.co.uk

Eurostar (UK) Ltd www.eurostar.com FirstGroup plc www.firstgroup.com

First Capital Connect www.firstcapitalconnect.co.uk

First Great Western www.firstgreatwestern.co.uk

First Hull Trains www.hulltrains.co.uk First ScotRail www.firstscotrail.co.uk

First TransPennine Express www.tpexpress.co.uk


Gatwick Express www.gatwickexpress.com

The Go-Ahead Group plc www.go-ahead.com

Grand Central Railway Company www.grandcentralrail.co.uk Heathrow Express www.heathrowexpress.com; www.heathrowconnect.com

Island Line www.island-line.co.uk

London & Continental Railways www.ctrl.co.uk

London Midland www.londonmidland.com

Merseyrail www.merseyrail.org MTR Corporation www.mtr.com.hk

National Express East Anglia www.nationalexpresseastanglia.com

National Express East Coast www.nationalexpresseastcoast.com

National Express Group plc www.nationalexpressgroup.com

NedRailways www.nedrailways.com Northern Rail www.northernrail.org

Orient Express Hotels Ltd www.orient-express.com

Serco www.serco.com

Southeastern Trains www.setrains.co.uk

Southern www.southernrailway.com South West Trains www.southwesttrains.co.uk

Stagecoach Group plc www.stagecoachgroup.com

Stansted Express www.stanstedexpress.com

Virgin Rail Group Ltd www.virgintrains.co.uk

Virgin West Coast www.virgintrains.co.uk West Coast Railway Co www.westcoastrailway.co.uk

Wrexham, Shropshire & www.wrexhamandshropshire.co.uk

Marylebone Railway

Rail freight operators

Healthy competition now exists in the UK rail freight market. Major traffic flows include coal,

mostly for power generation, raw materials for metals manufacture together with

finished/semi-finished metals products and construction materials. Intermodal traffic is of

growing significance, with further increases in prospect as a result of planned/proposed port expansion schemes such as additional facilities at Felixstowe and the Shell Haven development

on the Thames. Network Rail also generates substantial volumes of traffic associated with

track renewals and maintenance.

In 2008-09 domestic rail freight volumes remained relatively stable, with tonnage lifted up by 1 per cent and tonne-km 2.6 per cent down on 2007-08 followed a period of healthy growth

and heralded what may prove to be a temporary reversal of an otherwise upward trend. While

the tonnage lifted was around 7 per cent up on what it stood at when the industry was

privatised in 1996-97, in terms of tonne-km traffic has grown by nearly 40 per cent. This has to

a large degree been attributable to longer hauls of coal from imported rather than domestic sources. In 2008-09 coal accounted for roughly 45 per cent of tonnage lifted and 38 per cent of

tonne-km, with four operators active in the market.


In 2007 Network Rail predicted rail freight traffic growth of 30 per cent over the following 10

years, equivalent to 240 additional services per day. However, in 2008-09 the total number of

rail freight movements (including infrastructure trains) declined further to 316,684 from 455,561 in 2005-06. The relatively stable level of tonne-km handled by the industry over a

five-year period also confirms a trend towards the operation of longer, heavier trains.

Domestic rail freight volumes in Great Britain, 2004-05 to 2008-09 (excluding rail infrastructure traffic)

2004-05 2005-06 2006-07 2007-08 2008-09

Freight

lifted

(million

tonnes)

101.1 107.6 108.4 102.4 103.4

Freight

moved

(billion tonne-km)

20.35 21.7 22.11 21.18 20.63

Source: Office of Rail Regulation

Operators active in July 2009 were:

• Advenza Freight (www.advenza.com) – a subsidiary of Cotswold Rail Engineering.

Having initially handled mainly spot movements of rolling stock, Advenza commenced

handling trainloads of scrap metal on a semi-regular basis in 2008. • Colas Rail (www.colasrail.co.uk) – the UK subsidiary of the French-based Colas

Group, itself part of the giant Bouygues organisation, Colas Rail operates a flow of

timber for paper manufacturing from northwest England to North Wales and in 2008-09

was handling the UK leg of cross-Channel steel and intermodal flows on behalf of the

international division of French National Railways.. • DB Schenker Rail (UK) Ltd (formerly English Welsh and Scottish Railway (EWS)

(www.rail.dbschenkerco.uk) – the largest operator in the market with a share of around

60 per cent, originally formed from the ex-BR Trainload, Railfreight Distribution and

Rail Express Systems (parcels/mail) businesses. Activities include the operation of

large numbers of infrastructure trains for Network Rail. The company also handles conventional freight traffic through the Channel Tunnel and in 2006 launched

operations in France under the Euro Cargo Rail (www.eurocargorail.com) to spearhead

rail freight opportunities in Europe created by EU open access legislation. In 2007 the

company was acquired by DB Schenker, the freight arm of the German national railway

company. It adopted its current name in January 2009. • Direct Rail Services (DRS) (www.directrailservices.com) – owned by the Nuclear

Decommissioning Authority, DRS was initially established to transport nuclear fuel for

re-processing. It has subsequently diversified into running trains serving intermodal and

general logistics markets, establishing a high profile operating Anglo-Scottish services for the Tesco supermarket chain.


• Fastline Freight (www.fastline-group.com) – a subsidiary of Jarvis, Fastline entered

the rail freight market in 2006, operating services conveying maritime containers.

While these ceased in 2009 in response to reduced demand caused by the economic downturn, the company holds contracts for power station coal haulage which

commenced in 2008.

• First GBRf (www.firstgbrf.com) – a subsidiary of FirstGroup, the company handles

intermodal and bulk traffic, including movements of power station coal and gypsum. It

also fulfils Royal Mail contracts that have resulted in a modest return to rail of postal traffic. In addition, it carries infrastructure materials traffic for Network Rail and for the

modernisation of the London Underground network.

• Freightliner (www.freightliner.co.uk) – developed from the former BR’s container

haulage business, the company has expanded its intermodal operations from/to major

ports and has also diversified into movement of bulk commodities such as aggregates, cement, coal and petroleum products. It is also a major provider of infrastructure-

related rail haulage services to Network Rail. A Polish subsidiary commenced

operations in 2007, followed in 2009 by the launch of operations in Australia. In 2008

ownership of Freightliner passed from private equity, venture capitalist and

management/staff interests to a Bahrain-based investment firm, Arcapita. • Mendip Rail – established by quarrying companies Foster Yeoman and Hanson,

Mendip Rail owns wagons and locomotives (which are operated by DB Schenker) to

move aggregates from Somerset quarries to terminals in southern England. In 2006

Foster Yeoman was acquired by Aggregate Industries, part of the Swiss-based Holcim

Group; Hanson is part of the Heidelberg Cement Group.

Possible new entrants to the domestic rail freight market

Companies that might enter the market at a future date include:

• Eurotunnel (www.eurotunnel.com) – the company that owns the Channel Tunnel and

operates road vehicle shuttles through it has created a subsidiary, Europorte 2, to

eventually operate rail freight services from points in France to and through the tunnel.

Its intentions for moving any such traffic beyond Folkestone have not been publicised but it has secured suitable traction.

• Fret SNCF (www.fret.sncf.com) – the freight business of the French national operator

holds a nationwide licence to operate services in Great Britain, expected to be an

extension of trains running into the country via the Channel Tunnel. However, in 2009

Colas Rail was handling UK traffic for the company.


3. Rolling Stock Procurement

Passenger vehicles

Passenger traffic growth has led to a buoyant market for train builders serving the British market. Opportunities have been boosted by developments in London, especially the

modernisation of the Underground network and the creation of London Overground. The

capital is set to generate additional major rolling stock orders as a result of the Government’s

2007 go-ahead for the Crossrail and Thameslink projects. Replacement of life-expired intercity

trains is also creating opportunities for train builders via the DfT’s Super Express (formerly IEP) initiative.

In 2008 the Government softened its previously muted response to rail industry calls for more

main line electrification and studies were being undertaken to assess the benefits and feasibility

of applying this to selected key routes, possibly as part of a long-term rolling programme. Any implementation of a programme of electrification would imply an increased future need for

EMUs as replacement for life-expired diesel-powered vehicles.

Bombardier remains the only UK-based main line rail passenger vehicle builder. Orders

secured by Alstom and Siemens are fulfilled by plants in Continental Europe. In mid-2009 Hitachi was close to completing deliveries from Japan of its first UK order in the form of 29 6-

car high-speed EMUs for domestic services on High Speed 1.

Rolling stock for UK operators on order or under delivery as at July 2009

Operator

Class

Type

No of

units

No of

cars

Builder

Delivery

Blackpool Tramway – Trams 16 – Bombardier 2011-12

Chiltern Railways 172 2-car DMU 4 8 Bombardier 2010

DfT/Virgin West

Coast

390 11-car high-

speed tilting train

4 units

+ 62 cars for

existing

trains

106

(1)

Alstom 2011

Docklands Light

Railway

– Automated

metro

– 55 Bombardier 2008-10

Edinburgh tram – Light rail

vehicle

27 – CAF 2011

First ScotRail 380 3-car/4-car EMUs

22/16 130 Siemens 2010

(Intercity network) Super Express

(formerly

IEP)

EMU-Bimode

– 300-400

Agility Trains

(Hitachi)

(2)

2013-2015

London Midland 172 2-car/3-car

DMUs

12/15 69 Bombardier 2010


London Midland 350 4-car EMU 37 148 Siemens 2008-09

London Overground 172 2-car DMU 8 16 Bombardier 2009

London Overground 378 4-car EMU 57 216 Bombardier 2008-11

LUL

Circle/Hammersmith & City

– 7-car metro 40 280 Bombardier 2012-13

LUL District – 7-car metro 78 546 Bombardier 2013-15

LUL Metropolitan – 8-car metro 72 576 Bombardier 2009-13

LUL Victoria – 8-car metro 47 376 Bombardier 2009-11

Manchester Metrolink

– Light rail vehicle

40 – Bombardier 2009

National Express

East Anglia

– 4-car EMU 30 120 Bombardier 2011

Southeastern 395 6-car EMU 29 174 Hitachi 2009

Southern (3) 377/5 4-car EMU 23 92 Bombardier 2009

Notes

(1) Includes option on 42 additional intermediate cars

(2) Preferred bidder

(3) For use by First Capital Connect until new Thameslink stock is available

Future rolling stock orders

To meet the requirements of expected increases in traffic during CP4 and beyond, and in some instances to replace vehicles that will become life-expired, the DfT developed a Rolling Stock

Plan to enable English train operating companies and Network Rail to meet the targets set in

the HLOS. This foresaw the future procurement of up to 1,300 DMU and EMU cars. This

figure excluded some vehicles already under delivery or on order, such as the Class 395 EMUs

for Southeastern, extra Class 390 Pendolino vehicles and Class 172 DMUs and Class 350 EMUs for London Midland. It also excludes three future major rolling stock programmes:

• Super Express Programme (formerly IEP) – in February 2009 the Agility Trains

consortium formed by Hitachi, John Laing Projects & Developments and Barclays

Private Equity was named preferred bidder by the DfT for its Super Express, formerly known as Intercity Express Programme (IEP). Intended to modernise the intercity

coaching stock fleet, eventual contracts could cover the manufacture of up to 1,400

cars, as well as 20-year service provision. The Super Express design brief calls for

electric, diesel and bi-mode versions of the train. First examples are expected to enter

service on the East Coast Main Line in 2013. The Express Rail Alliance comprising Bombardier, Siemens, Babcock & Brown and Angel Trains was the unsuccessful

bidder.

• Thameslink – anticipated requirement for up to 1,300 EMU cars, with deliveries

starting in 2012. Tendering for these was in progress in mid-2009.

• Crossrail – anticipated requirement for around 700 EMU cars, with first units in service by 2017.


However, the announcement by the DfT in July 2009 that the Great Western Main Line from

London to Swansea, including the Reading-Newbury and Didcot-Oxford lines, and the

Liverpool-Manchester line via Newton-le-Willows are to be electrified will, along with other factors, contribute to changes rolling stock procurement plans. One possible outcome is the

‘cascading’ and refurbishment of some older EMUs to replace second-generation DMUs on the

newly electrified lines. Consequently, the DfT intends to publish a new rolling stock strategy in

autumn 2009.

Also excluded from the 1,300 cars that the DfT expected to see introduced are vehicles to be

procured by TfL, such as the replacement Bakerloo Line fleet, likely to be delivered by 2020,

and those obtained by Transport Scotland or the Welsh Assembly, as well as any other urban

operators.

In 2008 a tender invitation to supply five tram-train vehicles was issued by Northern Rail. In a

project supported by £9 million of DfT funding, they are to be trialled on the 59 km (37 mile)

Sheffield-Barnsley-Huddersfield route from 2010 to assess the potential value of using rolling

stock of this type on lightly used rural and regional lines. No contract for these vehicles had

been placed by mid-2009.

Future rolling stock orders for UK operators that had reached the tendering stage as at July

2009 are detailed in the following table.

Application

Type

No of

units

No of cars

Delivery

DfT Thameslink 4-car EMU 275? 900-1,300? From 2011

Northern

Rail

Tram-train

trial

– 5 – 2010

TfL LUL

Piccadilly

6-car metro 92 552 2014?

Rolling stock refurbishment also continues to generate useful business for suppliers as vehicles

fall due for mid-life modernisation or adaptation to meet current passenger expectations and

new technical standards. Current or recent projects include a £9 million programme to upgrade

East Midlands Trains’ fleet of 11 HST trainsets and the ‘refreshing’ of previously stored Class 442 EMUs for Southern/Gatwick Express services. A future major refurbishment scheme will

cover Class 319 EMUs displaced from Thameslink routes by new stock. After modernisation,

these will be deployed on regional/suburban services on the Liverpool-Manchester route and

the Great Western Main Line on completion of the electrification schemes announced by the

DfT in July 2009.

In a small number of instances there has also been a return to locomotive haulage of passenger

services by some operators, using refurbished previously withdrawn coaching stock. As well as

start-up operator Wrexham, Shropshire and Marylebone Railway Co, Arriva Trains Wales, First Great Western and First ScotRail have adopted this course to supplement multiple-unit

stock capacity on selected routes.


Freight vehicles Most freight locomotives recently acquired by UK operators have been supplied by Electro-

Motive Diesel (EMD), which acquired General Motors’ Electro-Motive Division in 2005. The

model favoured has been the 2,240 kW JT42CWR (Class 66), manufactured at EMD’s

London, Ontario, plant in Canada. In 2008 further examples of this type were delivered to

Fastline Freight, Freightliner and First GBRf. DB Schenker has a fleet of 250 Class 66s, some 60 of which have been sent to mainland Europe for work with the company’s Euro Cargo Rail

subsidiary, supplemented by new-build machines supplied directly from Canada. A significant

departure from this purchasing trend occurred in 2007 when Freightliner ordered 30 new-

design AC-motored Genesis PH37ACmi 2,750 kW locomotives from GE Transportation. Due

to be delivered in 2009, these will be the first GE diesel locomotives to operate in the UK.

DB Schenker also owns a large strategic reserve of diesel locomotives, some recently sidelined

by the overall decline in traffic resulting from economic conditions. Some of the company’s

older locomotives have found use in France and Spain on high-speed line construction projects.

Both DB Schenker and Freightliner operate modest fleets of electric locomotives inherited

from British Rail, including the former’s Class 92 machines, which haul conventional freight

services through the Channel Tunnel as well as on electrified parts of the national network. A

small number of these are also owned by Eurotunnel subsidiary Europorte 2. First GBRf

operates a small fleet of dual-mode electro-diesel locomotives mainly used for infrastructure work on the third rail network of the former Southern Region.

Recent wagon orders, mostly for container flats, coal hoppers and vehicles for infrastructure

work, have been largely fulfilled by builders in Eastern Europe. However, in 2009 First GBRf

took delivery of the first of 89 coal hoppers manufactured in the UK by WH Davis. Smaller batches of wagons have also been ordered or supplied for aggregates, bitumen, cement and

petroleum products.


4. Rolling Stock Leasing

Most passenger vehicles and some freight locomotives and vehicles operating on the British main line network are owned by one of three rolling stock leasing companies (ROSCOs). The

ROSCOs were created when BR privatisation was effected in the late 1990s to take ownership

of a passenger fleet, most of which had a longer life-expectancy than the franchise periods

awarded to the train operating companies.

The ROSCOs have been the key stimulus in establishing the British main line rolling stock

fleet as one of the most modern in Europe, achieving levels of investment that would have been

impossible under state ownership of the network. As well as funding the procurement of new

passenger vehicles, some ROSCOs have diversified into the rail freight market; they also

finance vehicle refurbishment and technical upgrades on behalf of TOCs.

Now owned by major banking and investment groups, the three leading ROSCOs are:

• Angel Trains (www.angeltrains.com) – in June 2008 the owners of Angel Trains,

Royal Bank of Scotland Group plc, announced the sale of the company to a consortium led by Babcock & Brown European Infrastructure Fund. Angel Trains’ investments

include Class 444 and 450 Desiro UK EMUs for South West Trains, Class 390

Pendolino trainsets for Virgin West Coast and Class 66 and 67 freight locomotives for

EWS. Subsidiaries have been established in mainland Europe to finance rolling stock

procurement for private sector passenger and open access freight operators.

• HSBC Rail (UK) – a member of the HSBC Group. The company’s investments

include Class 375 Electrostar EMUs for Southeastern Trains, Class 395 ‘Javelin’ EMUs

for domestic services on High Speed 1 and Class 66 freight locomotives for Freightliner

and First GB Railfreight.

• Porterbrook Leasing Company (www.porterbrook.com) – a subsidiary of Abbey

National Treasury Service plc. Porterbrook investments include Class 377 Electrostar

EMUs for Southern, Class 350 Desiro EMUs for London Midland and coal hoppers for

Freightliner. The company withdrew from non-UK rolling stock leasing, this activity taken over by CBRail. In late 2008 it was announced that Porterbrook was to be

acquired from Abbey National by a consortium of investors including Antin

Infrastructure Partners (the BNP Paribas sponsored infrastructure fund), Deutsche Bank

and Lloyds TSB. Completion was expected before the end of 2008.

Anticipating possible problems in securing external funding for new DMU stock in the light of

the prevailing global economic environment, the DfT in 2009 moved to establish a

government-owned company, Diesel Trains Ltd, to procure 202 DMU cars, estimated to cost

£300 million. These vehicles are notionally intended for First Great Western, First Trans-

Penning Express and Northern Rail. This initiative predated the DfT’s July 2009 announcement regarding electrification of the Great Western Main Line and Liverpool-

Manchester.


5. Transport For London (TfL)

Organisation

An agency controlled by the Mayor of London and the Greater London Authority, TfL owns London’s key transport undertakings via its subsidiary, Transport Trading Ltd, a holding

company for operations that include London Underground and London Rail. London Rail was

established in 2003 to focus on wider investment in the capital’s rail systems and to provide a

more integrated approach to rail development in London. Its area of responsibilities includes

Docklands Light Railway, the East London Line extension and North London Railway (former ‘Silverlink Metro’) services previously operated by National Express Group and taken over

from the DfT in November 2007. These last two operations are being integrated under the

name London Overground.

London Rail is also working in partnership with other operators to invest in improvements across parts of National Rail network in London, notably in security measures.

Following the October 2007 Government announcement in its Comprehensive Spending

Review that Crossrail was to go ahead and its receipt of Royal Assent in July 2008, TfL also

assumed responsibility for this project.

As a result of London’s success in winning the bid to stage the 2012 Olympic Games, some of

the planned investments in the capital’s rail transport system are being wholly or partially

funded by the Olympic Delivery Authority (ODA) or the London 2012 Organisating

Committee for the Olympic Games and Paralympic Games (LOCOG).

In November 2006 the Mayor of London and TfL published the T2025 report. As well as

providing TfL’s vision for the future for rail on London up to 2025, the document was intended

to inform the Government’s High Level Output Specification (HLOS) and Statement of Funds

Available (SOFA) published in summer 2007. Excluding Crossrail, the Rail 2025 component of T2025 calls for investments of £500 million annually for 20 years. The document is

accessible at:

www.tfl.gov.uk/assets/downloads/businessandpartners/rail-strategy-autumn-2006.pdf

Following a change of administration that resulted from a mayoral election in 2008, TfL in

November of that year published a Business Plan covering the period 2009/10-2017/18. This

confirmed some cuts to previously announced programmes, although key projects such as

modernisation of the Underground network and Crossrail remained intact. The Business Plan is

accessible at:

http://www.tfl.gov.uk/assets/downloads/corporate/tfl-business-plan-09-10-to-17-18.pdf


London Underground

Network length: 409 route-km (253 route-miles) Electrification: entire network, at 650 V DC third and fourth rail

Website: www.tfl.gov.uk

Organisation

An agency controlled by the Mayor of London and the Greater London Authority, TfL

assumed control of London Underground Ltd (LUL) in 2003. The LUL network is one of the

world’s largest metro systems, comprising 12 lines and 269 stations. Some 44 per cent of the

network – 171 route-km (106 route-miles) – is in tunnel. There are two types of line: Tube

(deep-level); and Underground (sub-surface level).

Services are operated with a fleet of nearly 4,000 rail cars, maintained at 18 major depots. Of

these, 2,805 are of the Tube type and 1,178 for Underground lines.

In 2006-07 passenger journeys exceeded 1 billion for the first time and rose again in 2007-08 to 1.073 billion.

LUL network passenger usage

2003-04 2004-05 2005-06 2006-07 2007-08

Passenger

journeys

(million)

948 976 971 1,014 1,073

The system suffered from underinvestment for many years and Public Private Partnership

(PPP) plans have been implemented covering the long-term modernisation and upgrading of

the entire network, embracing both infrastructure and rolling stock. PPP contracts covering maintenance and upgrading the system were placed in 2003 with two consortiums, the former

Metronet and Tube Lines, with each responsible for specific groups of lines. Train operations

remained the responsibility of LUL.

LUL Nominee BCV Ltd and LUL Nominee SSL Ltd (formerly Metronet Rail)

• The former Metronet consortium, which comprised Atkins, Balfour Beatty, Bombardier

Transportation, EDF Energy and RWE Thames Water, each with a 20 per cent

shareholding, went into administration in July 2007 and in May 2008 was transferred to

TfL control (see below).

In April 2003, via two subsidiaries, Metronet Rail BCV Ltd and Metronet Rail SSL Ltd,

Metronet had commenced 30-year PPP contracts to upgrade, replace and maintain LUL’s

physical infrastructure and its trains on the following nine lines:


• Bakerloo (Tube)

• Central (Tube)

• Circle (Underground) • District (Underground)

• East London (Underground)

• Hammersmith & City (Underground)

• Metropolitan (Underground)

• Victoria (Tube) • Waterloo & City (Tube)

The contract was valued at £17 billion over its 30-year term. Included in an initial 7.5 year

phase were:

• provision of 205 km (127.5 miles) of new track

• renewal of 166 points and crossings

• introduction of upgraded signalling systems

• refurbishment of 150 stations

• introduction of new trains on the Victoria and Metropolitan lines • refurbishment of District Line trains.

In its first 15 years Metronet had undertaken to upgrade all civils assets, including:

• 806 bridges • more than 2,000 structures

• 125 km (77.5 miles) of tunnels

• 66 km (103 miles) of cuttings and embankments

• 125 km (77.5 miles) of track drainage.

In the same period further new rolling stock was to be introduced, including:

• Bakerloo Line (42 seven-car trains)

• Circle, District, Hammersmith & City and Metropolitan (190 trains of various

formations).

The businesses of Metronet Rail BCV Ltd and Metronet Rail SSL Ltd (including the PPP

contracts) were acquired by LUL Nominee BCV Ltd and LUL Nominee SSL Ltd, both wholly

owned subsidiaries of TfL, on 27 May 2008. LUL Nominee BCV Ltd and LUL Nominee SSL

Ltd trade as Metronet Rail BCV and Metronet SSL and together as Metronet Rail.

This arrangement is in place while a long-term structure for the organisation is developed by a

joint DfT and TfL steering group. Meanwhile, Metronet Rail BCV and Metronet Rail SSL

continue to deliver their obligations under the PPP service contracts to London Underground,

but some changes were made to the timing of work and some aspects of the contracts were to be re-tendered.

As a result of these changes, in 2009 tendering was in progress for a major contract valued at

around £650 million covering the resignalling of LUL’s sub-surface (Circle, District, Hammersmith & City and Metropolitan) lines, with an award expected at the end of the year.


Tube Lines (www.tubelines.com)

Tube Lines consortium members are:

• Amey (two-thirds shareholding, business support services specialist)

• Bechtel (one-third shareholding, engineering, project management, build and operate

specialist)

Amey is a subsidiary of Grupo Ferrovial, which agreed to acquire the stake in Tube Lines held

by Jarvis plc in December 2004 in a bid by the latter company to avoid financial collapse. As a

result, through that acquisition and it ownership of Amey, Grupo Ferrovial holds a controlling

interest of 66 per cent in the consortium.

In April 2003 the company commenced a 30-year PPP contract to upgrade, replace and

maintain LUL’s physical infrastructure and its trains on the following three lines, all of which

are of the deep-level Tube type:

• Jubilee

• Northern

• Piccadilly

The PPP JNP is often used to define the business.

The contract is valued at £4.4 billion over its 30-year term, £2.5 billion of this in capital

programmes over the first 7.5 years. Included in this initial phase were:

• renewal/upgrading of 200 km (124 miles) of track • resignalling the Jubilee (2009) and Northern (2011) lines

• increasing Jubilee Line train lengths ahead of procuring a new fleet of more than 500

cars for the Piccadilly Line by 2014.

• New signalling for the Piccadilly Line (2014)

The contract also covers maintenance of 100 of the 129 stations served by the three lines and

refurbishment of many of them.

Expenditure plans (LUL)

Revised expenditure forecasts published by TfL in 2008 in its Business Plan for 2009/10-

2017/18 covering the LUL network, including spending by Metronet, anticipated infrastructure

and rolling stock capital investments of £12,832 million over the nine-year period.


LUL/Metronet capital expenditure 2009/10-2017/18 (TfL Business Plan 2009/10-

2017/18)

Expenditure (£million)

LUL 4,737

Metronet 8,095

TOTAL 12,832

London Overground

Network length: 87 route-km (54 route-miles)

Electrification: 750 V DC third rail (Gospel Oak-Barking diesel-operated)

Stations: 36 Website: http://overgroundmicrosite.tfl.gov.uk/

Organisation

Created in 2007, London Overground marked an important stage in the development of TfL by

bringing heavy rail operations under its direct control. The London Overground network will eventually comprise two previously unconnected systems. A key outcome of this will be to

create an orbital suburban railway around London under the control of one agency.

• The one-time British Rail and former Silverlink Metro lines that were operated over

Network Rail tracks by National Express Group as part of its wider Silverlink franchise on the following routes: Richmond-Stratford; Clapham Junction-Willesden Junction;

Euston-Watford Junction; and Gospel Oak-Barking. Network Rail retains ownership of

the sections of track used by these services.

• The East London Line of the London Underground network, upgraded, with services

initially extended over Network Rail lines to serve Crystal Palace and West Croydon and later from Surrey Quays on this section to Clapham Junction.

In 2007, a seven-year contract to operate the system from November of that year was awarded

to a joint-venture of MTR Corporation, operator of Hong Kong’s metro system, and Laing

Rail, which held the Chiltern Railways franchise. In 2008 Laing Rail was acquired by Deutsche Bahn (German Rail). The contract includes an option for a two-year extension. The

company established by the joint-venture to manage the concession is London Overground

Rail Operations Ltd (LOROL) (www.lorol.co.uk).

To equip the London Overground network, TfL has in total ordered 57 Class 378 ‘Electrostar’ four-car EMUs from Bombardier. Under construction at the company’s Derby site, these

comprise a mix of dual-voltage and DC-only units. Deliveries of pre-series trains began in

2008, with services using these vehicles due to commence in 2009. TfL is also undertaking an


extensive modernisation and upgrade of the former Silverlink-operated routes to increase

capacity and improve passenger facilities.

For management purposes London Overground is grouped with Docklands Light Railway as

part of London Rail. London Rail also funds modernisation projects such as security and

revenue collection systems for parts of the national rail system that provide elements of

London’s transport network.

London Overground passenger usage

2008-09

Passenger

journeys

(million)

33.1

East London Line (ELL) Extension

The East London Line (ELL) Extension is a £1 billion TfL project that develops and extends

existing LUL sub-surface (Underground) and Network Rail lines in east London. Phase 1 will provide a cross-city link between Dalston in the north and New Cross, Crystal Palace and West

Croydon in the south. In the north, services will be subsequently extended west from Dalston

Junction to Highbury & Islington.

Phase 2 includes connections with and development of existing lines southwest from Phase 1 at Surrey Quays to Clapham Junction, effectively completing an orbital route around the capital.

Included in this phase is the transfer of some stations operated by DfT-franchised companies to

TfL and the possible construction of a new station. A Government go-ahead for this phase was

given in February 2009. The estimated cost of Phase 2 is £75 million.

Phase 1 comprises 3 km (1.8 miles) of new track, 7 km (4.3 miles) of converted and 14 km (8.5

miles) of existing track. Following enabling works, initial contracts were let in 2006. Services

between Dalston Junction and West Croydon are due to commence in June 2010; the Dalston

Junction-Highbury & Islington section is due to be commissioned in February 2011, ahead of

the following year’s London Olympics. Rolling stock deliveries began in 2008 (see Section 3.1). The project is a component of TfL’s Olympics transport strategy.

Phase 2 is due for completion in 2012, also ahead of the Olympics.

In 2009 TfL awarded Carillion Rail a seven-year £80 million maintenance contract for the East London Line.

Expenditure plans (London Overgroumd)

In its 2009/10-2017/18 Business Plan published in November 2008, TfL forecasts continuing

investments of £484 million in infrastructure and rolling stock for the London Overground

network in the three years leading to completion of the project.


London Overground capital expenditure 2009/10-2011/12 (TfL Business Plan 2009/10-2017/18)


TOTAL 484

Docklands Light Railway

Network length: 31 route-km (19 route-miles) Electrification: entire network, at 750 V DC third rail

Stations: 38

Website: www.tfl.gov.uk/dlr

Organisation

Originally opened in 1987 and now a subsidiary of TfL, the Docklands Light Railway (DLR) is

a fully automated light metro system serving a 38-station network with a fleet of 94 vehicles.

Passenger numbers have grown rapidly, continuously running ahead of expectations to exceed 66 million in 2007-08. For management purposes it is grouped with London Overground as

London Rail.

DLR network passenger usage

2003-04 2004-05 2005-06 2006-07 2007-08

Passenger

journeys (million)

48.5 50.1 53.9 61.3 66.6

Ownership of its assets, including infrastructure, remain with DLR Ltd but services are

operated under a franchise contract by Serco Docklands Ltd, a subsidiary of Serco Group plc. The company was awarded a new seven-year franchise commencing in April 2006 and valued

at £400 million.

Expenditure plans (DLR)

DLR has responded well to the continuing development of London’s Docklands, since its

opening more than doubling both its route length and the number of stations served. Further

investments are planned by TfL to enlarge the network and raise capacity. These include lengthening trains from two cars to three by reforming the existing 94-car fleet, together with

associated station and line upgrades to accommodate these, and the procurement of additional


vehicles, including new trains to provide capacity during the 2012 Olympic Games.

Bombardier was awarded a contract to supply 55 more cars, delivery of which commenced in

2008.

Planned and recent extensions are:

• A 2.5 km (1.5 mile) extension under the Thames to Woolwich Arsenal, costing around

£180 million and completed by Woolwich Arsenal Rail Enterprises Ltd, a PFI partnership of Royal Bank of Scotland and Land Securities Trillium, in late 2008, with

services commencing in January 2009

• A 6.5 km (4 mile) extension from Canning Town to Stratford International station,

taking over part of the former heavy rail North London Line, costing £238 million to construct, with completion scheduled for 2009

• In addition, TfL had implemented moves to obtain approval under the Transport &

Works Act to extend the DLR system eastwards from Gallions Reach to Dagenham

Dock, with six new stations. However, for funding reasons this extension was excluded from TfL’s Business Plan for 2009/10-2017/18 published in November 2008.

In its Business Plan for 2009/10-2017/18 published in November 2008 TfL forecasted capital

expenditure on DLR infrastructure and rolling stock for the nine-year period of £324 million.

DLR capital expenditure 2009/10-2017/18 (TfL Business Plan 2009/10-2017/18)


TOTAL 324

Crossrail

Network length: 118.5 route-km (74 route-miles) (includes existing Network Rail and BAA

lines) Electrification: entire network, at 25 kV AC 50 Hz overhead

Stations: 8 new

Website: www.crossrail.co.uk

The Government confirmed that the Crossrail project was to go ahead in October 2007 when

presenting its Comprehensive Spending Review. Crossrail is a £16 billion scheme to provide an electrified heavy rail east-west cross-London urban railway linking Maidenhead with

Shenfield, north of the Thames, and Abbey Wood, south of the river. Much of the route will be

in 21 km of twin-bore tunnels, including a core central section from Paddington to beyond

Whitechapel, from where one branch will pass under the Thames to Woolwich and another will


join the existing railway near Stratford. The scheme will also serve Heathrow Airport via the

existing rail link from Hayes & Harlington. There will be eight new stations at (west to east):

Paddington; Bond Street; Tottenham Court Road; Farringdon; Liverpol Street; Whitechapel; Canary Wharf/Isle of Dogs; and Woolwich.

The route west of Maidenhead to Reading has been safeguarded by the DfT for possible future

extension of Crossrail, a step more likely following the announcement in July 2009 of plans to

electrify the Great Western Main Line. TfL has also considered safeguarding the route from Abbey Wood to Ebbsfleet, site of the intermediate station on High Speed 1 opened in 2007.

Initially developed Cross London Rail Links Ltd, a company owned jointly by the DfT and

TfL, CLRL became a subsidiary of TfL following the Hybrid Bill for Crossrail receiving Royal

Assent in July 2008 and is now known as Crossrail Ltd (CRL).

The forecast cos t of Crossrail of up to £16 billion will be met by Government, business and

farepayers. Government will contribute over £5 billion by means of a grant from the DfT

during construction. Additional contributions to the project will come from airports operator

BAA (£230 million), the City of London (£350 million) and the Canary Wharf Group (£150 million), the last mentioned being towards the estimated £500 million cost of construction of

Canary Wharf station.

In March 2009 Transcend, a joint venture between Aecom, CH2M Hill and Nichols Group,

was named Crossrail Programme Partner and in April 2009 Bechtel Ltd was awarded a £400 million contract to act as Project Delivery Partner. Construction work was formally launched

by the Mayor of London, Boris Johnson, in May 2009. The award of detailed design contracts

and enabling works framework agreements was in progress in 2009. This will enable main

construction to start in 2010, with first trains running in 2017.

A second as yet unfunded phase of Crossrail could see construction of a northeast-southwest

line with a core section linking Victoria with King’s Cross.


6. Light Rail and Light Metros

After an early series of light rail system approvals that saw networks opening in several towns and cities, including Croydon, Manchester, Sheffield and Birmingham/Wolverhampton, later

bids to adopt this form of public transport have faced increased difficulties. Cost issues, many

of them attributed to Government requirements that place much of the project risk with the

private sector, have stalled some new-start schemes and delayed the go-ahead on extensions to

existing systems. In 2005 there were further setbacks for proponents of light rail when schemes in Leeds, Liverpool and South Hampshire were rejected by the Secretary of State for Transport.

In 2008 London’s Cross River Tram project was also the victim of a funding review by TfL.

In 2009 systems in operation, under construction or at advanced stages of planning were as

follows:

Blackpool

Existing network: 18 km (11.2 km), electrified 550 V DC

Operated by: Blackpool Transport Services Ltd; infrastructure owned by Blackpool Borough Council

Website: www.blackpooltransport.com

In June 2009 a £101.7 million upgrade of the system was announced, funded by contributions

of £68.3 million from the DfT and £33.4 million from Blackpool Borough Council and Lancashire County Council. Due to be completed by April 2012, work will include renewing 8

km of track, rebuilding stops to achieve DDA compliance, junction priority signalling,

construction of a new tram depot and procurement of 16 trams. For the last-mentioned,

Bombardier was named preferred bidder.

Edinburgh Tram

To be operated by: Transdev

Website: www.edinburghtrams.com

Planned network: construction is in progress of the first phase of what was intended as an

eventual two-line 24 km (15 mile) network. First trams had been expected to be running in July

2011 but construction delays were likely to defer this. Phase 1a comprises 18 km/11 miles

from Newhaven (Leith) to Edinburgh Airport. Phase 1b had been planned to run from Granton, in the north of the city, to join Phase 1a near Haymarket; in 2009 this portion of the scheme

was shelved in reaction to the downturn in the property market. A further proposed future short

section, Phase 2, would link Newhaven and Granton and a proposed Phase 3 would extend

Phase 1a west to Newbridge. The scheme is taken forward by tie Ltd, a wholly owned

subsidiary of the City of Edinburgh Council.

Originally costed at £444 million at 2003 prices (including rolling stock), Phase 1a was priced

at £592 million in 2008, with £547 million provided by the Scottish Executive and the

remainder by City of Edinburgh Council. Phase 1b was costed at £98 million in 2008.


A contract valued at around £300 million to design, build and maintain Phase 1a of the network

was awarded in 2007 to the BSC consortium comprising Bilfinger Berger, Siemens and vehicle

builder CAF. In the same year CAF was selected to supply 27 40-metre low-floor trams for the system. The first of these is due to arrive in spring 2010.

Glasgow Subway (light metro)

Existing network: 10.4 km (6.5 miles), one circular line, electrified 600 V DC third rail

Operated by: Strathclyde Partnership for Transport

Website: www.spt.co.uk

Development plans: In 2008 investments of £8 million were announced, covering communications systems, rolling stock upgrades and other improvements. This was followed

in 2009 by SPT approval of a £20 million modernisation programme for the system, with a

particular focus on stations.

London: Cross River Tram

Websites: www.tfl.gov.uk; www.crossriverpartnership.org

Planned network: abandoned in TfL’s nine-year Business Plan published in 2008, this £1.3 billion project foresaw a 16.5 km (10 mile) Camden Town/King’s Cross-Brixton/Peckham line.

However, there were signals from TfL in 2009 that a future attempt to implement the project

could still be made.

London Tramlink

Existing network: 28 km (17.5 miles), three lines

Operated by: Transport for London

Website: www.tfl.gov.uk

Initially operated by Tramtrack Croydon Ltd under a Private Finance Initiative concession and

until 2008 known as Croydon Tramlink, the London Tramlink system was returned to direct

operation by TfL in that year. The system carries 24.5 million passengers annually using a fleet

of 24 Bombardier-built vehicles.

Development plans: TfL has developed plans to expand the network greatly, with three

possible routes totalling 27 km (17 miles) identified. Options include: Sutton-Wimbledon;

Sutton-Tooting; Streatham-Purley; Crystal Palace-Harrington Road. Public consultation has

taken place on the last of these, but in its 10-year Business Plan published in 2008 TfL stated that there was no funding for implementation, at best putting the £170 million scheme on hold.

Manchester Metrolink

Existing network: 40 km (25 miles), two lines


Operated by: Stagecoach on behalf of Greater Manchester Passenger Transport Executive

(GMPTE)

Website: www.metrolink.co.uk

The two-line system carries around 20 million passengers annually, using a fleet of 32 trams.

Development plans: Government approval was granted in 2008 for the final £244 million of a

£520 million funding package agreed in principle in 2004 to help finance extensions to the network. These comprise routes for which powers have been held for some time: a 22 km (14

mile) extension from Queen’s Road to Oldham and Rochdale, due to be completed in stages up

to 2012; a 6.4 km (4 mile) line from Piccadilly to Droylsden, also due to be completed in 2012;

a 2.9 km (2 mile) line from Trafford Bar to St Werburgh’s Road via Chorlton, due to be

completed in 2011; and a 400 m spur off the existing Eccles line to ‘mediacity:uk’ (Salford Quays), due to be completed in mid-2010. GMPTE selected the M-Pact Thales consortium

(Thales UK, Laing O'Rourke and VolkerRail) to undertake a £538 million contact to design,

build and maintain the extensions. 40 additional LRVs were ordered from Bombardier,

deliveries of which began in 2009.

Midland Metro (Birmingham/Wolverhampton)

Existing network: 20 km (13 miles), one line

Operated by: Travel Metro, part of the UK Bus Division of National Express Group, on behalf of Centro

Website: www.travelmetro.co.uk

The system carries more than 5 million passengers annually, using a fleet of 16 trams.

In July 2009 the Government agreed to contribute £25 million of the £55 million cost of

extending the network from Birmingham Snow Hill station to Birmingham New Street station

and £53 million towards the estimated £70 million cost of the Wolverhampton Loop Extension

plus the procurement of 25 additional trams, all subject to business case approval. All

programmes are expected to be implemented by 2014.

Centro also plans a rapid transit system linking Midland Metro at Wednesbury with

Stourbridge via Merry Hill and Brierley Hill. Public consultation on this was in progress

inmid-2009.

Nottingham Express Transit (NET)

Existing network: 14 km (9 miles), one line

Operated by: Arrow Consortium (includes Nottingham City Transport, Transdev) Website: www.thetram.net

Development plans: a Transport and Works Act Order and Government approval has been

given for two extensions to the network known as NET Phase Two: a 7.6 km (5 mile) line from the city centre to Clifton via Wilford; and a 9.8 km (6 mile) line to Chilwell via Queen’s

Medical Centre and Beeston. Final Government approval is expected in 2009, when bids for a


PFI contract valued at an estimated £471 million for the project would be invited, leading to an

award in 2011 and completion of the new lines in 2014. However, some doubts regarding

funding resulted in mid-2009 following a change in political control of Nottinghamshire County Council, with the incoming Conservative-led administration threatening to reverse an

earlier decision contribute to the scheme’s cost.

Sheffield: Stagecoach Supertram

Existing network: 30.5 km (19 miles), three lines

Operated by: Stagecoach on behalf of South Yorkshire PTE

Website: www.supertram.net

Development plans: no immediate plans

Tyne & Wear Metro (light metro)

Existing network: 77.5 km (46 miles), including 18.5 km (11.5 miles) owned/operated by

Network Rail

Operated by: Nexus

Website: www.nexus.org.uk/wps/wcm/connect/Nexus/Metro

Development plans: in 2009 Tyne & Wear Passenger Transport Authority and its executive

arm, Nexus, continued with Phase 1 of its £50 million Metro Reinvigoration Plan, covering

infrastructure improvements and upgrading of fare collection systems. The more extensive

Phase 2, for which £300 million of Government funding was secured in 2008, covers

additional infrastructure work such as station upgrades, new communications technology, modernisation of the electrification system and refurbishment of the 90-car rolling stock fleet.

A projected Phase 3, expected to begin in 2019, is expected to see investments of a further

£300 million in new signalling and rolling stock. The network carries around 40 million

passengers annually.

In 2008 tendering began for a seven-year operating concession from April 2010 for the system,

which is currently operated directly by Nexus.


7. The Railway Supply Industry

The needs of the rail market range from highly specialised industry-specific services, products and systems to the requirements of any major national organisation with extensive fixed and

mobile assets. Many UK-based companies are members of the Railway Industry Association

(www.riagb.org.uk), which represents the industry by giving it a voice in policy making and by

providing support for export promotion.

Also representing suppliers to the UK rail market is the Rail Alliance (www.railalliance.co.uk),

a networking organisation spanning all aspects of the railway sector and its supporting

industries.

Systems, products and services specific to the rail market include:

• Rolling stock, rolling stock components and subsystems

• Vehicle maintenance, equipment and services/refurbishment

• Revenue collection, access control and passenger information systems

• Track products such as rail, switches and crossings, sleepers, fixing systems and ballast • Track maintenance and renewals equipment, products and services

• Signalling and communications systems

• Traction power supply and electrification systems

The following non-exhaustive lists detail some of the major suppliers in each sector serving or targeting the UK market.

Rolling stock, rolling stock components and subsystems

ABB www.abb.com/uk

Alstom Transport www.transport.alstom.com

Ansaldobreda www.ansaldobreda.it

AVE Rail Products www.averail.co.uk

Bombardier Transportation www.transportation.bombardier.com Brecknell Willis www.brecknell-willis.co.uk

Brush Barclay www.brushtraction.com

Brush Traction www.brushtraction.com

CAF www.caf.net

Caterpillar www.progressrail.com CSR Ziyang www.zyloco.com

Cummins www.everytime.cummins.com

WH Davis www.whdavis.co.uk

Dellner www.dellner.com

EAO www.eao.com Electro-Motive Diesel www.emdiesels.com

Faiveley Transport www.faiveley.com

Freudenberg Schwab www.freudenberg-schwab.de

GE Transportation Systems www.getransportation.com

GMT Rubber-Metal-Technic www.gmt.gb.com


Grammer www.grammer.com

Hitachi Europe www.hitachi-rail.com

Hübner www.hubner-germany.com Kiel www.kiel-sitze.de

Knorr-Bremse Rail Systems www.knorr-bremse.co.uk

LPA Group www.lpa-group.com

Lucchini UK www.lucchinisidermeccanica.com

MAN B&W Diesel www.manbw.com MTU Friedrichshafen www.mtu-online.com

Norgren www.norgren.com

Oleo International www.oleo.co.uk

Parker domnick hunter www.domnickhunter.com/railways

Parry People Movers www.parrypeoplemovers.com Rowe Hankins Components www.rowehankins.com

Semvac www.semvac.dk

Siemens Transportation Systems www.siemens.com/transportation

Tram Power www.trampower.co.uk

Trelleborg Industrial AVS www.trelleborg.com/industrialavs Vapor Stone UK www.wabtec.com

Voith Turbo www.voithturbo.com

Vossloh Kiepe www.vossloh-kiepe.com

Wabtec Rail www.wabtecrail.co.uk

Vehicle maintenance equipment and services/refurbishment


Axiom Rail www.axiomrail.com BBM Officine Meccaniche www.bbm.it

Bingham Rail www.hbinghamgroup.com

Bombardier Transportation www.transportation.bombardier.com

Brush Traction www.brushtraction.com

Cotswold Rail Engineering www.cotswoldrail.co.uk WH Davis www.whdavis.co.uk

Delta Rail www.deltarail.com

Devonport Royal Dockyard www.devonport.co.uk

DML Group www.dmlgroup.co.uk

Harmill Systems www.harmill.co.uk Hegenscheidt-MFD www.hegenscheidt-mfd.de

Houghton International www.houghton-international.com

Hunslet Engine Co www.hunsletengine.com

Knights Rail Services www.rail-services.net

LH Group Services Ltd www.lh-group.co.uk Lloyds Somers Railway Engineering www.somershandling.com

Marcroft Engineering www.marcroft.co.uk

Mechan Ltd www.mechan.co.uk

Pullman Group www.pullmans.net Railpart (UK) www.railpart.co.uk

RMS Locotec www.rmslocotec.com


Sabre Rail Services www.sabre-rail.co.uk

Semmco www.semmco.com

Smith Bros & Webb www.vehicle-washing-systems.co.uk Transys Projects www.transysprojects.ltd.uk

Unipart Rail www.unipartrail.com

Wabtec Rail www.wabtecrail.co.uk

Windhoff Bahn- und Anlagentechnik www.windhoff.de

Revenue collection, access control, passenger information systems and station equipment

AEG MIS www.aegmis.de

Almex www.hoeft-wessel.de Ascom UK www.ascom.co.uk

Atos Origin www.atosorigin.co.uk

Conrac www.conrac.de

Cubic Transportation Systems www.cubic.com/cts

Data Display UK www.datadisplayuk.com Densitron Ferrograph www.densitron.com/ferrograph

Dilax Systems UK www.dilax.com

Ferrograph www.ferrograph.com

Harp Visual Communications www.passengerinformation.com

Hima-Sella www.hima-sella.co.uk Infotec www.infotec.co.uk

Interalia www.interalia.com

Jasmin Simtec www.jasmin.plc.uk

Macemain + Amstad www.macemainamstad.com

Magnadata International www.magnadata.co.uk Melford Electronics www.melford-elec.co.uk

Petards Joyce-Loebl www.petards.com

Rail Waiting Structures www.shelters.co.uk

Scheidt & Bachmann UK www.scheidt-bachmann.com

Shere www.shere.com Voice Perfect www.voiceperfect.co.uk

Vultron International www.vultron.co.uk

Track products

Anderton Concrete Products www.andertonconcrete.co.uk

Balfour Beatty www.bbrail.com

Cemex Rail Products www.cemex.co.uk

Cooper & Turner www.cooperandturner.co.uk Coronet Rail www.coronetrail.co.uk

Corus Cogifer www.coruscogifer.com

Corus Rail www.muchmorethanrail.com

Edgar Allen www.edgar-allen.co.uk Edilon Sedra www.edilonsedra.com

Enzesfeld-Caro Metallwerke www.austroroll.at


Gerb Vibration Control Systems www.gerb.com

Getzner Werkstoffe www.getzner.at

GMT Manufacturing www.gmt.co.uk Graybar www.graybar.co.uk

HallRail www.hallrail.co.uk

Henry Williams www.hwilliams.co.uk

Holdfast Level Crossings www.railcrossings.co.uk

IAD Rail Systems www.iadrailsystems.com Lafarge Aggregates www.lafarge.co.uk

Lucchini www.lucchini.it

Pandrol www.pandrol.com

Polysafe Level Crossings www.polysafe.co.uk

RAIL.ONE www.railone.com RS Clare www.rsclare.com

Schwihag www.schwihag.com

Semperit www.semperit.at

SPX Rail Systems www.spxfluidpower.com

Stanton Bonna Concrete www.stanton-bonna.co.uk Tarmac Precast Concrete www.tarmacprecast.com

Thyssenkrupp GFT Gleistechnik www.tkgftgleistechnik.de

Tracksure www.tracksure.co.uk

Ultra Dynamics www.ultradynamics.co.uk

VAE www.voestalpine.com/vae Voestalpine Schienen www.voestalpine.com/schienen

Vossloh Fastening Systems www.vossloh-fastening-systems.com

Track maintenance and renewals equipment and products

A-Plant Rail www.aplant.com

Airtec International www.airtecinternational.com

AMPL www.ampl.co.uk

Aspin Group www.aspingroup.com Ballast Tools UK www.btukltd.com

R Bance & Co www.bance.com

Cembre www.cembre.com

Cowans Sheldon www.cowanssheldon.co.uk

Eurailscout GB www.eurailscout.com Gamble Rail www.gamblegroup.co.uk

Gatwick Plant www.gatwickgroup.com

Geismar www.geismar.com

Harsco Track Technologies www.harscotrack.co.uk

Hydrex Equipment www.hydrex.co.uk Jafco Tools www.jafcotools.com

Kirow www.kirow.de

LH Group Services www.lh-group.co.uk

Loram www.loram.com Matisa www.matisa.ch

Maxim Power Tools www.maxim-power.co.uk


National Railway Supplies www.natrail.com

Plasser & Theurer www.plasser.co.uk

Rosenqvist Rail www.rosenqvistrail.se Rotamag Track Equipment www.rotamag.co.uk

Safetrack www.safetrack.se

Speno International www.speno.ch

SRS Rail Systems www.srsrailuk.co.uk

Unipart Rail www.unipartrail.com Vortok International www.vortok.co.uk

Windhoff Bahn- und Anlagentechnik www.windhoff.de

Zöllner UK www.zollner-uk.co.uk

Track maintenance and renewals services

Amey Rail www.amey.co.uk

Babcock Rail www.babcock.co.uk/opco/engineer

Balfour Beatty www.bbrail.com Carillion Rail www.carillionrail.com

Colas Rail www.colasrail.co.uk


Jarvis Rail www.jarvisplc.com

Lundy Projects www.lundy-projects.co.uk Mowlem Railways www.mowlem.com

Trackwork www.trackwork.co.uk

VolkerRail www.volkerrail.co.uk

Signalling and communications systems

Alcatel Transport Automation Solutions www.alcatel.com/tas


Amec Spie Rail www.amec.com/rail Ansaldo STS UK www.ansaldo-sts.co.uk

Atkins Rail www.atkinsglobal/com/rail

Babcock Rail www.babcock.co.uk/opco/engineer


Bombardier Transportation www.transportation.bombardier.com Collis Engineering/Signal House www.collis.co.uk


Dorman www.dorman.co.uk

Edmund Nuttall www.edmund-nuttall.co.uk

Eurocom www.eurocomltd.co.uk Frequentis UK www.frequentis.com

GAI-Tronics www.gai-tronics.co.uk

GE Transportation Systems www.getransportation.com

Global Crossing www.globalcrossing.com Henry Williams Electrical www.hwilliams.co.uk/hwe

Howells Railway Products www.howells-railway.co.uk



Kelvatek www.kelvatek.com

Lionverge Holdings www.lionverge.co.uk Marconi www.marconi.co.uk

National Railway Supplies www.natrail.com

Optilan Communication Systems www.optilan.com

Siemens AG Transportation Systems www.siemens.com/transportation

Signalling Solutions www.signallingsolutions.com Telent www.telent.com

Thales www.thalesgroup.com

Transmitton – A Siemens Business www.siemens.co.uk/transportation

Vialis NMA Railway Signalling www.vialis.nl

VolkerRail www.volkerrail.co.uk Westinghouse Rail Systems www.westinghouserail.co.uk

Traction power supply and electrification systems

ABB www.abb.com/uk


Amey Infrastructure Services www.amey.co.uk

Arthur Flury www.aflury.ch

Atkins Rail www.atkinsglobal/com/rail Babcock Rail www.babcock.co.uk/opco/engineer


Brecknell Willis www.brecknell-willis.co.uk

Carillion Rail www.carillionrail.com

Ensto Sekko www.ensto.com FKI Switchgear www.fki-et.com


Siemens AG Transportation Systems www.siemens.com/transportation

Unipart Rail www.unipartrail.com

VolkerRail www.volkerrail.co.uk

Civil engineering and construction/infrastructure maintenance

The UK railway market is also served by many leading companies in the fields of civil engineering and construction and infrastructure maintenance. There are also significant

participants in consultancy, des ign and project management. Many of these have subsidiaries,

divisions or departments dedicated to rail.

Alfred McAlpine www.alfredmcalpineplc.com Arup www.arup.com/rail

Atkins Rail www.atkinsglobal/com/rail

Bailey Rail www.baileyrail.co.uk

Balfour Beatty www.bbrail.com Bechtel www.bechtel.com

Birse Rail www.birserail.co.uk


Carillion Rail www.carillionrail.com

Colas Rail www.colasrail.co.uk

Costain www.costain.com Dean & Dyball Rail Ltd www.deandyball.co.uk

Dyer & Butler www.dyerandbutler.co.uk

Grupo Ferrovial www.ferrovial.es

Hochtief (UK) Construction www.hochtief.co.uk

HS Rail www.hsholdings.com Kier Rail www.kier.co.uk

Laing O’Rourke www.laingorourke.com

May Gurney Rail Services www.maygurney.co.uk

Mouchel www.mouchel.com

Mowlem Railways www.mowlem.com J Murphy www.murphygroup.co.uk

Nuttall Finchpalm www.edmund-nuttall.co.uk

Osborne Rail www.osborne.co.uk

Skanska Construction Group www..skanska.co.uk

Story Rail www.storyrail.co.uk Taylor Woodrow www.taylorwoodrow.com