NR’s £47bn plan
Network Rail plans to spend £47.1bn on operations and maintenance, renewals and enhancements in 2019-24.
A BIG increase in funding to reduce delays is planned by Network Rail in Control Period 6 (CP6), the five-year spending period that starts on April 1 2019.
The infrastructure company submitted its Strategic Business Plan (SBP) to the Office of Rail and Road (ORR) on February 9, and published it on February 13. It plans to spend a total of £47.1 billion over the five-year period, made up of £18.5bn on operations and maintenance, £18.5bn on renewals, and £10.1bn on enhancements. The latter should be explained in more detail by Secretary of State for Transport Chris Grayling in March, according to NR.
Further funding of enhancements will be done separately on a case-by-case basis, rather than as part of the CP6 settlement. The period will also signal the start of the Digital Railway, the company says.
“CP6 is about a significant increase in operations and maintenance,” NR Chief Executive Mark Carne told a press briefing on February 12. “There is a 25% increase in the running of the railway. I would say this, but this is the best plan we’ve ever had.”
Comparing the current Control Period (CP5, 2014-19) with plans for CP6 (2019-24), Carne said: “Renewals are needed, and 202122 will be the biggest year for that in CP6. There’s a drop-off in CP5 in 2015-16, 2016-17 and 2017-18, and that went with the Hendy Review to pay for enhancements. We don’t want a strain on the supply chain, so it will be a gradual increase over three years.”
He said that long-term renewals projections are huge in CP7 (2024-29) and CP8 (2029-34), and that the prize now is to make CP8 cheaper “as that is huge on signalling”.
Shadow Transport Secretary Andy McDonald criticised the plans, claiming a decline in upgrade investment.
“The Government’s plan for investment in our railway shows an embarrassing lack of ambition,” he said.
“Despite the clear economic and environmental benefits of electrification, Chris Grayling’s cuts on the TransPennine, Great Western and Midland Main Line routes will still go ahead. There’s no reason why we can’t invest to upgrade the rail network at the same time as maintaining and renewing it.”
Gary Cooper, Director of Planning, Engineering and Operations at the Rail Delivery Group, said: “Through this exciting five-year plan, delivered in partnership, Network Rail will continue to play a central role in creating the better railway customers, communities and the economy need and want.”
Peter Loosley, Policy Director at the Railway Industry Association, said: “The rail supply sector will be particularly interested to see how Network Rail’s SBP will ensure a smoother spread of renewals volumes and expenditure over CP6, to provide the opportunity for suppliers to deliver more efficiently and give them the confidence to invest in new processes, people and plant.
“What we collectively must avoid is a repeat of the ‘boom and bust’ cycle of renewals expenditure which has plagued both CP5 and its predecessors.”
Campaign for Better Transport welcomed the plans, but Chief Executive Stephen Joseph warned: “The high-level promises in this plan must be translated into real improvements on the ground. This plan concentrates on making the most of the existing railway, but we also need to see enhancements - more electrification and upgrades, and new and reopened lines and stations.”
On February 12, Carne explained:
“CP6 is different to CP5. CP5 was designed around big projects - huge, mega-projects.”
In its SBP, NR said £2.6bn has been held back in a Group Portfolio Fund, to offset risks that could materialise during CP6. Some of this has already been allocated to Routes.
The NR SBP highlighted potential schemes in Scotland, for HS2 integration to the existing network, and for development of programmes such as Northern Powerhouse Rail and Crossrail 2.
Carne said: “People may not like Network Rail, but they do say at least there is a plan. SoFA [Statement of Funds Available] is a strong vindication of Government support.”