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

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

Size of the UK Rail Industry Employees Total Industry, at least 176,000 Operators (TOCs/FOCs) 60,000 Network Rail 30,000 London Underground 12,000 Supply Industry 70,000 Railway Industry Association

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) Railway Industry Association

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 Railway Industry Association

Railway Industry Association Source - DfT Railway Industry Association

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 Railway Industry Association

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 Railway Industry Association

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. Railway Industry Association

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. Railway Industry Association

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 Railway Industry Association

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 Railway Industry Association

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. Railway Industry Association

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

Growth Railway Industry Association 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 Railway Industry Association

Safety Railway Industry Association 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) Railway Industry Association

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. Railway Industry Association

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

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. Railway Industry Association

RIA Membership Railway Industry Association

RIA Members – March 2006 Railway Industry Association

RIA Members include: Railway Industry Association 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. Railway Industry Association

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   Railway Industry Association

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   Railway Industry Association

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 Railway Industry Association

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. Railway Industry Association

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 Railway Industry Association

UK Manufacturing Capability Rolling Stock and Infrastructure Equipment Complete turnkey systems Individual elements: trains, signalling, communications, depots, ticketing, electrification Sub-systems Components Specialist materials. Railway Industry Association

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

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

Some Examples Mott MacDonald Interfleet Technology Balfour Beatty HSBC Rail Atkins Pandrol KeTech And many more… Railway Industry Association

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@riagb.org.uk   Railway Industry Association

www.riagb.org.uk 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 Railway Industry Association

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

Thank you   Railway Industry Association