The Railway Industry Association RIA

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Railway Industry Association
British Railway Industry - Competences for
Romanian Railways Zilele Feroviare 2006
Tim Gray International Business Development
Director
October 2006
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Contents

• Overview of UK Railways
• Impact of reform
• Relevance to Romanian Railways
• Key Strengths of UK Industry
• Railway Industry Association

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Size of The UK Rail Industry

• 34,000 kms of track
• 2,500 stations
• c11,000 passenger vehicles
• Over 1 billion passenger journeys made in
  2004/05 covering some 42.4 billion passenger kms
  
• 20.7bn tonne-kms of freight moved in 2004/05
• 65 of all passenger journeys begin or end in
  London

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Size of the UK Rail Industry Employees
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Traction, Speeds

• About 30 of network electrified,
• Commuter lines south of London and in Liverpool
  750V DC third rail
• Main lines to north-east and north-west and other
  commuter lines 25kV AC overhead
• Remainder operated by diesel
• Principal main lines maximum operating speeds of
  125mph (200 kph) including diesel
• Most other routes 70 -100 mph (110 160 kph)
• Channel Tunnel Rail Link 186 mph (300 kph)

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Rail Industry Structure
.

• Government sets strategy for the railways and
  contracts with Network Rail (via independent
  economic regulator) and TOCs to deliver
• Network Rail has responsibility for operating the
  network and accountable for performance
• Train operating companies (TOCs) provide
  passenger services
• Office of Rail Regulation ensure NR does not
  abuse its monopoly power, and responsible for
  safety

Source - DfT
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Source - DfT
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London

• Transport for London (TfL)
• Strategic direction
• Contracts extra works
• London Underground Limited
• Operates services and stations
• Tube Lines and Metronet (PPP Contractors)
• 30 year concessions to maintain and renew
• Infrastructure
• Rolling Stock
• TfL concessions

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Department for Transport, Office of Rail
Regulation

• Completely separate public-sector organisations
• Department for Transport sets strategy
• Office of Rail Regulation is an independent body
  with responsibility for economic and safety
  regulation

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Network Rail

• The infrastructure manager
• owns and operates the track, signalling,
  electrification and telecommunications networks
• manages the timetable
• most of its work is carried out by suppliers,
  except infrastructure maintenance.

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Network Rail - 2

• NR is a private-sector company but now has no
  shareholders
• any profits are reinvested in infrastructure
  work
• receives revenues from train operators (access
  charges) and direct grant from Government.

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Passenger Train Operating Companies

• Passenger services are provided by individual
  train operating companies (TOCs) under franchise
  from the Government typically 7 years
• TOCs are contracted to provide a fixed service
  pattern in return for a fixed subsidy (or
  premium)
• TOCs retain fare revenues, an incentive to
• grow market
• keep costs down
• prevent fare evasion

Source - ORR
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Freight Operating Companies

• Some five FOCs
• Not franchises and not subsidised operate as
  purely market organisations
• Access charges normally related to extra cost of
  freight trains only basic costs paid by
  passenger TOCs

Source - ORR
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Relationship between NR and Government

• Government does not own or control NR
• Government specifies the level of service it
  wants NR to provide
• ORR decides the cost of the specified service
  level and sets TOCs access charges accordingly
• Government compensates TOCs for changes in access
  charges
• Government is the ultimate guarantor of NRs
  debts.

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UK Metro/Light Rail

• London Underground
• Docklands
• Heavy Metro
• Manchester Metrolink
• Tyne Wear Metro
• Sheffield
• Birmingham
• Nottingham
• Others in planning

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Growth

• Over the last 10 years
• Passenger kilometres up by 40
• Passenger journeys up by 38.1
• Freight demand up by 60
• around 5,000 new passenger vehicles
• Record infrastructure investment nearly doubled
  in five years
• renewals and enhancements 2004/05 c.3.4bn
• LUL and UK Metros Experiencing Similar Growth

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Safety
Significant accidents per million train/km
Predicted (based pre-privatisation trends)
Source Prof Andrew Evans, Imperial College
London Rail Safety Rail Privatisation in
Britain 2004
Actual (post privatisation)
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Current Strategic Issues

• Handling the great increase in demand on a
  capacity-constrained railway
• And further improving reliability and punctuality
• While simultaneously carrying out major
  infrastructure renewal works
• and
• Controlling costs
• Optimising the engineering interfaces
• Further improving the way in which companies work
  together.

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Relevance to Romanian Situation

• Reformed very early learnt lessons for others
• Infrastructure Operations Split
• Open Market/Competition
• Infrastructure Renewals Enhancements
• Private Investment in infrastructure rolling
  stock
• Public Private Partnerships
• Full role in EU standardisation
• Understanding the assets
• Coping with growth, controlling costs,
  maintaining standards
• Long Term engagement with industry

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• Railway Industry Association - RIA
• Trade association for the UK railway supply
  industry
• Acknowledged voice of that industry
• Which is the largest railway employer
• More than 135 member companies, 12 staff
• Members supplying national rail, LU, light rail,
  exports
• 50 membership growth in the last eight years
• Includes great bulk of sector by turnover
• Funded entirely by its members.

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RIA Membership
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RIA Members March 2006
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RIA Members include

• UK Elements of Major Systems Integrators
• Passenger train manufacturers/maintainers
• All major signalling and most major telecoms
  firms
• All Track Renewal Contractors
• Rolling stock leasing companies (ROSCOs)
• Major suppliers and other contractors
• Component manufacturers
• Consultants and specialist service providers.

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UK Privatisation

• Many of our members activities were formerly
  carried out by British Rail
• During privatisation, infrastructure and rolling
  stock support activities were sold or contracted
  out
• Passenger operations were franchised on a highly
  competitive basis freight operators sold
• Most expertise now held in the private sector
  much of that in the supply industry
• The process began around 10 years ago and has
  gradually evolved

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Impact of the Reformed Railway on the Supply
Industry

• A much more formal approach to the control of
  safety and quality
• Strong pressure to
• Maximise capacity available
• Maximise reliability
• Minimise life-cycle costs, taking account of
  disruption
• UK supply market is highly competitive, and open
  internationally

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Impact of the Reformed Railway on the Supply
Industry - 2

• All lead to
• strong pressure to innovate for greater capacity,
  reliability and cost-effectiveness
• willingness to look to other industries
• emphasis on technology and expertise to
  understand, monitor, control and optimise the
  engineering interfaces within the railway
• concentration more on Value for Money than
  initial price

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Impact of the Reformed Railway on the Supply
Industry - 3

• So companies that succeed in the UK are highly
  experienced in
• cost-effective operation
• providing strong support to their customers
• Identifying and providing best-value solutions,
  for both existing assets and new projects
• because they have to be.

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Specific Industry Competences

• Technology and Expertise
• Asset Management Measurement
• Planning, Design and Project Management
• Safety and Risk
• Financing and Leasing
• Turnkey contracting
• Systems specialists
• High technology products

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UK Manufacturing Capability

• Rolling Stock and Infrastructure Equipment
• Complete turnkey systems
• Individual elements trains, signalling,
  communications, depots, ticketing,
  electrification
• Sub-systems
• Components
• Specialist materials.

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Infrastructure Engineering

• Design
• Construction
• Project Management
• Installation of track and equipment
• Upgrading and renewal
• Systems and Products
• Civil, Track, Signalling Electrification

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Consultancy

• Infrastructure and rolling stock engineering
• Design
• Systems Integration
• Independent Verification Validation
• Risk Safety
• Economics, planning and commercial
• Procurement Support
• Project Management.

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Some Examples

• Mott MacDonald
• Interfleet Technology
• Balfour Beatty
• HSBC Rail
• Atkins
• Pandrol
• KeTech
• And many more

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Assistance to Overseas Railways
RIA receives frequent enquiries from railway
administrations and official bodies seeking
supply of products, services or solutions. RIA
circulates enquiries and information to all
Members every week We can provide details of
appropriate companies or circulate requests to
all Members within short timescales Send e-mail
requests to ria_at_riagb.org.uk
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Further Information

• RIA Members Products and Services
• Internet, RIA website includes search engine to
  source products and services from the UK
• www.riagb.org.uk

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Contact details
Railway Industry Association 22 Headfort
Place London SW1X 7RY Telephone 44 (0) 20
7201 0777 Facsimile 44 (0) 20 7235
5777 E-mail ria_at_riagb.org.uk Website
http//www.riagb.org.uk
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Thank you