WHERE THE MONEY COMES FROM
Network Rail’s Strategic Business Plan (SBP) explains that Control Period 6 spending will be funded through Government grants, access charges and sources such as property income.
Enhancements funding for England and Wales will be agreed with the Department for Transport and managed via the Joint Portfolio Board. A similar ‘pipeline’ process is expected for Scotland.
NR plans an improvement in station retail facilities, to enable it to continue to grow its property income. It is targeting a 10% return on investment.
At February 12’s press briefing, NR Chief Executive Mark Carne also spoke about third-party funding: “East West will have 100,000-150,000 houses that will benefit from rail. There are lots of instances where developers knock on my door. It is amazing how much money is out there for the railway.”
The SBP stated: “We must deliver efficiently to drive down costs. In this plan, across our overall operations, maintenance and renewals, we will achieve a further 10% improvement in real terms efficiency.” This will be offset by a 2% cost pressure, it warned.
NR claimed that operating and maintenance costs per passenger kilometre has been reduced by around 40% through CP4 and CP5, and that NR aims to reduce it by a further 9% in CP6. It forecasts overall efficiency savings in operating costs of £830 million.
The SBP states that NR is “open for business”, and that it wants to make it easier for others to fund projects. It highlighted potential projects as:
■ Schemes up to £50m such as Haughley Junction doubling and University station.
■ Schemes between £50m and £100m such as Trowse Swing bridge, West Yorkshire Combined Authority new stations, and train detection signalling improvement between London Paddington and Airport Junction.
■ Schemes over £100m including Leeds station, Cumbrian coast upgrade, Victoria station redevelopment and Oxford station master plan.
NR said none of the above projects was currently funded, and require third-party funding.