Introduction to Abellio, plans for ScotRail

and Transfer of Undertakings Consultation

February 2015

Introduction to Abellio

Brief overview of Abellio Group

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3Who are Abellio?

• Subsidiary of Nederlandse Spoorwegan (NS)

• 100% share holder position by the State

• Minister of Finance acts as shareholder

• Abellio Transport Holdings Ltd

• Formed in 2001 as NedRailways

• UK based - aimed at acquiring and

operating transport concessions

• Changed name to Abellio in 2009 after

purchase of Abellio Deutschland

Our way of working – the Abellio Way

• To our clients and stakeholders we:

− are easy to work with

− work in partnership

− think long term

− deliver value for money

− share best practice

• To our people we:

− are approachable, open and honest

− work collaboratively and collectively

− recognise commitment and service excellence

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Abellio Group – portfolio overview 5

Abellio Scandinavia

Abellio The Netherlands

Abellio Germany

Abellio UK

20,000 employees

1.7m passengers every day

2,786 train vehicles

1,487 buses

236 trams

Abellio ScotRail

Overview of franchise bid plans

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Scotland and The Netherlands: a partnership of equals

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• Scotland and The Netherlands share a long and rich heritage of business

and cultural exchange - our plans for ScotRail build on that

• Business programme of international best practice exchange - operating

level up to inter-Government level - Ministerial support for a biennial (every

2 years) rail summit between our countries

• Our plans flow from the strategic aims of Scotland’s National Performance

Framework and are aimed at exceeding the objectives that Transport

Scotland and the Scottish Government have set for ScotRail

Our Vision for ScotRail 8

Our aims and the franchise brand

• Our aims are to provide:

−A reliable, safe, clean and punctual rail service

−Highest levels of customer service and care

−Transparency on how we are doing in terms of performance and quality

− Information and advice when things go wrong

−Simple solutions for ticket purchasing

• Our ScotRail brand personality is:

− Innately Scottish

−Empathetic, inclusive

−Genuine, proud, trusted

−Dynamic, on the case

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The heart of our bid

• New trains for Scotland

−70 new electric trains for the Edinburgh – Glasgow Improvement Programme

• Significant efficiencies through a Deep Alliance with Network Rail

−One railway; combining a nationally funded infrastructure and service provider

• Transformation of the inter-city network

−Fully refurbished, Wi-Fi enabled fleet of HSTs to connect the seven cities by

December 2018

−Significant enhancements at Aberdeen, Inverness and Perth stations

• Faster inter-city services

−Headline journey times of less than three hours between Glasgow and

Inverness and an improvement in the overall inter-city journey time metric

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The heart of our bid continued

• A vibrant, growing railway with improved connectivity and accessibility

− 72% growth in the off-peak metric

• Sharing our Dutch expertise to deliver multi-modal integration and smart ticketing

− Train tickets on Bramble within six months

• Industry-leading sustainability plan

− A 37% reduction in CO2 per passenger km

− 15% reduction in non-traction energy

• Sustainable development enterprise unit

− Working with Scottish planners

− Leveraging funds to exploit growth opportunities

• Community rail development programme

• Reinvestment of profit to employees

− Employees able to earn ‘Gainshare’ bonus based on company performance

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New products

• A range of new, best value fares:

− Full range of dynamically yield-managed Advance fares

− New First Class Advance fare

− New Super Off-peak day return

− Transforming “Flexipass” to a truly flexible “Flex Carnet” smart

• Launch of “Club 50”

• Increased business travel

− A new B2B booking tool

− Introduction of “Saltire for Business” account-based card based

upon the successful frequent travellers product at NS

• Introduce a new tourist experience for Scotland’s scenic railways,

with our partners VisitScotland, Visit Britain and National Parks

− Specially-refurbished 158s

− Additional services to Oban and Kyle during peak summer season

− Better on board catering, Tourist Ambassador, at-seat audio

− Collaboration with West Coast Railways on the Jacobite

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Bid plans

• Rapid uptake of Smart products to reduce the direct cost of sales and free up

staff from behind ticket office windows to deliver customer service

• Improved revenue protection - assessment of ticketless travel then measures to

reduce it

• Our partnership approach will extend to an Alliance with Network Rail:

−Joint senior management team to optimise performance of Scotland’s railways

−Joint tasks developed in collaboration with Network Rail

− Introduce a Partnership Centre of Excellence to deliver partnership training to

our integrated teams and Alliance teams certified to BS11000. Facility will be

available to the wider industry

• Create a “Strategic Rail Delivery Group” for Scotland to engage all operators and

stakeholders. Key members: TS, RTPs, VisitScotland, Passenger Focus

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Bid plans

• An innovative live crowding app

− Customer information about which trains are busy and which are not, and

also seat availability

− Live information on EGIP and HLOS routes from Dec 18

− Our Dutch experience has shown that this app leads to customer

behaviour change and perceptions

• Committed to journey time improvements for our customers in each year

− Significant journey time savings through fully refurbished fleet of HST

power cars and MK3 coaches between the seven cities by Dec 2018

− Glasgow/Inverness -12min improvement/3 hours or less both directions

− Edinburgh/Inverness - 10 min improvement

− Edinburgh/Aberdeen in 2hr15min

− Glasgow/Aberdeen in 2hr25min

− Glasgow/Inverness in 2hr55min (16 mins faster than today’s best time)

− Overall improvement inter-city journey time metric of 3hr41min (3m25s)

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Bid plans

• Connectivity - plans build on Dutch Railways approach which has halved the

number of passengers using cars to get to/from stations

−More than 3,500 new cycle spaces at stations over the first three years

−Three fully-staffed Dutch-style Cyclepoints (Glasgow Central, Edinburgh

Waverley and Stirling) and Cycleparks+ at a further five stations

−Launch a ‘Bike&Go’ cycle hire network from 25 stations

−Greater off-peak capacity on trains: at least 6 cycle spaces per three car unit,

bookable via customer app

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Bid plans

• New Borders Railway - ensure that this prestigious project is delivered smoothly:

−Establish a project partnership approach with key parties (BAM, NR)

−Full project plan for launch weekend including special timetable and a significant

marketing budget to ensure it is launched properly

−New traincrew depot at Tweedbank

• Minimising the impact of changes on our customers by:

−Working with NR to ensure diversionary routes are available

−25 additional dedicated customer service staff

− Investment in additional platform/waiting facilities at Springburn station

−New senior role of “Peak Manager” at Glasgow Queen Street to manage

disruption during the Queen Street works

• Smooth introduction of new rolling stock to operate on electrified EGIP (June 2017

ready for Dec 2017) and HLOS routes (Dec 2018), on time and to budget

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Bid plans

• HSTs with high quality on-board service, buffet and at-seat catering

• Significant station upgrades at Inverness and Stirling

• “Station2Station” business lounges based on Dutch model

• Improvements across the whole fleet

• Dutch design principles for network-wide stations improvements

• Waiting shelters at 42 stations

• 11 new “to-Go” kiosks and 21 new “Ticket Plus” outlets - combined retail and ticket

purchase

• Moving to a right time railway - punctuality to the minute

• Inspire training, 3,500 smart devices and enhanced connectivity, CIS at every station

• New website and ‘journey companion’ app

• Customer relations - continue to be delivered from Fort William, with team

strengthened for delay repay and enhanced social media

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Bid plans

• Improve the confidence of disabled persons and those with reduced mobility:

− Enhanced engagement via a new Stakeholder Equality Group

− 70% step-free journeys by the end of the franchise

− Customer information desks in prominent locations at all key city stations, improved

way-finding

− Upgrades to 126 TVMs

− Providing Blue Badge parking at all station car parks, increasing spaces by 400%

− A Passenger Assist smartphone app for our staff, reducing notice period from 4 hours

to one hour

− Trialling a passenger ‘assist-Mi’ app in pursuit of removing notice periods completely

− Training customer facing employees to deal with the diverse needs of passengers

− Active promotion of diversity and equality in our own organisation

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Bid plans

• Supporting Ministers’ sustainability targets for Scotland:

−Set up a Sustainable Development Enterprise Unit to support economic

growth

−Support for SMEs through tender opportunities

−Recruit at least 10 apprenticeships per year for 18 month period include Gold

Duke of Edinburgh training

−2 graduate schemes; Abellio Group scheme and participate in the NR scheme

−Reduced fares for job seekers

−Back to work training for Veterans and offenders

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Transfer of Undertakings

TUPE Measures Consultation

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TUPE – Measures confirmation• Employees of FSR and assigned to the franchise are expected to transfer to Abellio ScotRail with

continuity of employment and on existing terms and conditions of employment on 1 April 2015

• We will continue existing trade union recognition and staff representation arrangements and work

closely with trade unions/staff representatives to jointly shape the future for the new franchise

• Certain elements of that are of particular importance on the transfer:

− We will use the existing payroll system and provider currently operated by FSR, so there will be

no immediate alteration as to how employees are paid. The payment of salaries and benefits

will not be affected by the transfer and will ensure there is no disruption to payroll transactions

− Continue existing pension arrangements and Abellio ScotRail will become the designated

employer of the Defined Benefit section of the RPS operated for the ScotRail franchise - current

pension arrangements will continue

− Existing ATOC Rail Staff Travel facility concessions for both "safeguarded" employees (i.e. those

employees whose continuous employment in the rail industry commenced prior to 1 April 1996)

and non-safeguarded employees. In addition, employees, partners and dependants will retain

the use of ScotRail Smartcards after 1st April 2015

− Existing and future employees will, in a reciprocal arrangement made with Serco, be able to use

these to get free travel on Sleeper Services (subject to restrictions already in place)

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TUPE Measures - new executive structure 22

Managing Director

Engineering Director

Fleet maintenance

Train cleaning

Depot facilities

Fleet commercial contracts

Fleet performance

Fleet safety & standards

Commercial Director

Revenue development

Revenue protection

Marketing & sales

Estates management

Facilities management & building services

Customer Experience Director

Stations management

Customer service standards

Customer engagement

Stakeholder liaison

On-train catering

Client & Communications

Director

Corporate communications

Franchise contract management

Operations Director

Control

Resource planning

Traincrew & on-train management

Passenger information

Timetable development

Performance

Sustainability & Safety Assurance

Director

Occupational safety

Operational safety

Economic development

Sustainability

Security & crime prevention

Business Transformation

Director

Business change & projects

Human resources

Employee relations

Learning & development

Centre of Excellence

Finance Director

Financial planning

Financial accounting

Information Services

Contracts & procurement

Payroll

Audit & internal control

TUPE Measures - Reporting line changes 23

Engineering

Director

Director of

Facilities &

Building Services

Finance

Director

Human Resources

Director

Director of

Customer

Services

Commercial

Director

Operations &

Safety Director

Managing

Director

Director

Engineering

Director

Operations

Director

Sustainability &

Safety Assurance

Director

Finance

Director

Customer

Experience

Director

Commercial

Director

Client &

Communications

Director

Director of

Business

Planning

Head of Service Planning

Business

Transformation

Director

Franchise Compliance Manager

Head of Operational Safety

Head of Occupational Safety

Finance

Director

Head of Communications

Head of Human Resources

Safety Business Change & Project Manager

Head of Facilities & Building Services

Current senior structure New senior structure Re-charted/retitled/new roles

senior structure

Key

Head of

Marketing

Existing roles and teams

TUPE Measures summary

• Alliance with Network Rail – expected changes to organisation structure

• Organisation changes to meet new franchise commitments

• Intention to consult and manage these changes in parallel by December 2015

• Accommodation change planned – retaining Atrium Court Ground and First Floors

only, with additional accommodation at 151-155 St Vincent Street

• Requirement for new electric trains for EGIP

• Provision of services on contract for Caledonian Sleeper Services

− Engineering services at Inverness

− Bed-making and cleaning at Inverness and Fort William

− National Reservation Service and rostering support from Glasgow

− Traincrew hire

• Uniform – re-issue in Autumn 2015, Transport Scotland branding

− new badges, ties/scarves, tabards issued at start

• Smartphone roll-out by end of year

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Future changes – to be consulted

• Working with Network Rail under the deep Alliance to deliver industry benefits

• Restructuring some management teams areas to align with bid commitments

and the new senior team structure (eg new team for developing community rail

partnerships, sustainability agenda) – incorporating any Alliance developments

• Transfer of Dunbar station

• Changes to retailing – move to Smartcards – and customer requirements

• ‘Gain-share’ initiative for staff

• Electric trains for Edinburgh to Glasgow programme – December 2017

• Refurbished HST’s for Intercity routes – December 2018

• 20% increase in vehicle numbers to meet future demand

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TUPE – lead up to the transfer

• Current communications

−Employee website with information on transfer

−Email address and telephone helpline

−Rolling Q & A document

−Launch day newsletter

• Employee roadshows from 23 February to 6 March – 8 locations

−4/5 representatives from Abellio team chance to meet us before franchise start

−Find out more about franchise plans, uniform boards

−Opportunity for questions and rumours to be busted

−Feed into broader and longer term communications

• Uniform design

−Feedback and input

• Preparation for April pay review

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Safety management

• Application for Safety Certificate to Office of Rail Regulator 18 November 2014

• Safety Licence and authorisations

−Application for both a Mainline Safety Certificate (Part A and Part B) and a

Mainline Safety Authorisation under the Railways and Other Guided Transport

Systems (Safety) Regulations 2006

−Authorisation for a mainline infrastructure manager

• Consultation documents issued to all stakeholders for comment/feedback

• Existing Safety Management System (SMS) procedures retained to manage

risks associated with the transfer

• Review subject to the normal SMS review procedure during the first year

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Final Questions

Thank you

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