railway industry association tim gray international business development director british railway...

Railway Industry Association

Railway Industry AssociationRailway Industry Association

Tim GrayInternational Business Development Director

British Railway Industry - Competencesfor Romanian Railways

Zilele Feroviare 2006

October 2006


Contents• Overview of UK Railways

• Impact of reform

• Relevance to Romanian Railways

• Key Strengths of UK Industry

• Railway Industry Association


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


Size of the UK Rail IndustryEmployees

Total Industry, at least 176,000

Operators (TOCs/FOCs) 60,000

Network Rail 30,000

London Underground 12,000

Supply Industry 70,000


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)


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

• 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


Source - DfT


LondonTransport 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


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


Network RailThe 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.


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.


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


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


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 NR’s debts.


UK Metro/Light Rail• London Underground• Docklands• Heavy Metro• Manchester Metrolink• Tyne & Wear Metro• Sheffield• Birmingham• Nottingham• Others in planning


GrowthOver 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


Safety

Significant accidents per million train/km

Source:

Prof Andrew Evans, Imperial College London “Rail Safety & Rail Privatisation in Britain” 2004

Predicted (based pre-privatisation trends)

Actual (post privatisation)


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.


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


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.


RIA Membership

0

20

40

60

80

100

120

140

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004


RIA Members – March 2006ABB Ltd Advantage Technical Consulting AEA Technology Rail Air International (UK) Limited Airscrew Ltd Alan Dick UK Ltd Alcatel Telecom Ltd Alcatel TSD UK ALSTOM Transport AMEC SPIE Rail (UK) Ltd Amey Angel Trains Ltd Ansaldo Signal UK Ltd Arthur D Little Ltd Arup Atkins Rail Ltd Atlas Rail Components Balfour Beatty Rail Infrastructure Services Ltd Balfour Beatty Rail Plant Ltd Balfour Beatty Rail Projects Ltd Balfour Beatty Rail Technologies Ltd Balfour Beatty Rail Track Systems Ltd Bingham Rail BMAC Ltd Bombardier Transportation (RCS) UK Ltd Bombardier Transportation UK Ltd Brecknell, Willis & Co Ltd Brush Traction Carillion Transport CB Frost & Co Ltd Cdsrail Cembre Ltd Collis Engineering Ltd Cooper and Turner Copon E.Wood Ltd

Coronet Rail Limited Correl Rail Ltd Corus Cogifer Switches & Crossings Corus Rail Products Corus Railway Infrastructure Services Cosalt : Ballyclare Ltd Craig & Derricott Limited CSE International Ltd Cubic Transportation Systems Ltd DARA Electronics Design & Projects Int Ltd Det Norske Veritas Devonport Royal Dockyard Limited (DML) Dewhurst plc Edgar Allen Ltd Eland Cables EMEG Electrical Ltd Engineering Support Group Ltd Enotrac UK Ltd ERA Technology FaberMaunsell Faiveley Transport Birkenhead Findlay Irvine Ltd First Engineering Ltd Franklin and Andrews Gardiner & Theobald GE Transportation Systems Ltd Glenair UK Ltd GrantRail Ltd Graybar Ltd Halcrow Group Limited Harsco Track Technologies Hawthorns Project Management Ltd Hima-Sella Ltd HSBC Rail (UK) Ltd

Huber+Suhner UK Ltd Hyder Consulting Limited IAD Rail Systems Independent Glass Company Ltd Interfleet Technology Ltd Invensys Rail Systems Jacobs Ltd Jafco Tools Ltd Jarvis Rail Kaba (UK) Ltd Kellogg, Brown & Root Ltd KeTech Ltd Knorr-Bremse Rail Systems (UK) Ltd Laser Rail Lloyd's Register Rail Ltd LPA Group Plc Mechan Ltd Mott MacDonald Group Mowlem Railways MTR Training Ltd National Railway Supplies Ltd Neway Training Solutions Ltd Nichols Group Ltd Pandrol Ltd Park Signalling Limited Parker Hannifin plc Parsons Brinckerhoff Ltd Parsons Transport Group Pennant International Group plc Plasser Machinery, Parts & Services Ltd PMProfessional Learning Portec Rail Products (UK) Ltd Porterbrook Leasing Company Ltd Powertron Converters Ltd Praxis HIS

QinetiQ R Bance & Co Rail Door Solutions Ltd Rail Tech Group Ltd Rail Training International Ltd Railway Approvals Ltd Railway Finance Ltd Railway Projects Ltd Rowe Hankins Components Ltd Sabre Rail Services Ltd Saft Ltd Schofield Lothian ScrewFast Foundations Ltd Seco-Rail Sersa (UK) Ltd Siemens Transportation Systems Signal House Ltd SPX Rail Systems Systems Engineering & Assessment Ltd Telent Communications Ltd Thales Telecom Services Thorntask Ltd Touchstone Renard Translec Ltd Transmitton Ltd Tritech Rail Ltd Tyco Electronics UK Ltd Ultra Electronics PMES Ltd Vossloh Information Technologies York Ltd W H Davis Ltd Westcode (UK) Ltd Westinghouse Rail Systems Westmead Associates Whiteley Electronics Ltd York EMC Services Ltd


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.


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


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


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


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.


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


UK Manufacturing CapabilityRolling Stock and Infrastructure Equipment• Complete turnkey systems• Individual elements: trains, signalling,

communications, depots, ticketing, electrification• Sub-systems• Components• Specialist materials.


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


Consultancy

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


Some Examples

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


Assistance to Overseas RailwaysRIA 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: [email protected]


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


Contact details


22 Headfort Place

London SW1X 7RY

Telephone: +44 (0) 20 7201 0777

Facsimile; +44 (0) 20 7235 5777

E-mail: [email protected]

Website: http://www.riagb.org.uk


Thank you

railway industry association tim gray international business development director british railway...

Documents

london slide

rail main lines

kph slide

safety regulation slide

network rail30

network electrified

safety source dft slide

passenger kms