1. Eoin O’Neill Rail infrastructure at the heart of Britain’s growth
Commercial and Development Director
Network Rail

2. About IP
Key messages
- Network Rail is the UK’s largest infrastructure client and depends on its supply chain.
- We are working hard to foster a sustainable and responsible supply chain at all levels – this is vital to the successful, safe and efficient delivery of our work.
- Procurement for our multi-billion-pound CP6 investment programme is underway and provides the supply chain with a real opportunity to secure substantial work-banks and help deliver essential improvements that will help shape the future of the railway.
- We are working hard to be a better organisation to work with for all suppliers, particularly SMEs, and are taking steps to remove barriers and make it simpler to work with us.
- As part of your listening exercise, Rail Industry Association members have all been sent a survey about how Network Rail can improve the way we work them, and we strongly encourage them all to reply.
- Our supply chain includes around 4,000 suppliers of which 2,500 are small to medium enterprises (SMEs).
- The key ways we are improving the way we engage with suppliers are by:
increasing transparency of our procurement pipeline to provide better work bank visibility
building on our commercial relationships
being more consistent in our approach
involving them early on in our complex programmes to drive safety performance, value for money and innovation in the industry.

4. ORR Final Determination
‘Regulator approves £35bn plans to boost Britain’s railway reliability and timetabling’
Guided by four main principles:
Reinforcing the relationship between Network Rail and its customers (TOCs)
Supporting further devolution to routes and the development of the System Operator (SO)
Reflecting the reasons why government provided a significant increase in funding for the railway
Learning lessons from CP5
Key headlines:
£7.7bn available for maintenance of the railway
£16.6bn available for renewals
Renewal work sees a 17% increase from the £14.2bn in CP5
ORR have increased Performance Innovation Fund from £10m (in our draft determination) to £40m
They also confirmed a significant funding and resource boost for Network Rail’s timetabling and planning functions, with the System Operator’s forecast spend almost doubling
In CP6, NR will become much more locally focused with each route having its own budget, delivery plans and scorecards
A £245m research and development fund will be available over the five years to help develop new technology that improves industry’s performance or efficiency

5. ORR Final Determination
CP6 total, £m ( prices) GB
England & Wales
Scotland
Operations
 3,426
 3,186
 239
Support
 2,609
 2,314
 295
Maintenance
7,692
 6,977
 715
Renewals
16,642
 14,581
 2,061
Other
4,328
 3,966
 362
Total
34,696
 31,025
 3,672

6. Renewals and maintenance spend by route
Southern
£6.1bn - South East
£3.8bn - Anglia
£3.5bn - Wessex
Scotland & NE
£3.7bn - Scotland
£8bn - LNE & East Midlands
WW&C
£2bn - Wales
£3.9bn - Western
Central
£8.7bn - LNW
ORR’s CP6 Final Determination did not cover enhancements expenditure as both DfT and Transport Scotland are adopting a separate pipeline approach to agree funding for enhancements during CP6. In their Statements of Funds Available, DfT and Transport Scotland included funding of around £10 billion for delivery of enhancements to the railway in CP6.

7. Lost Time Injury Frequency Rate
CP4 to date
Target CP6: 0.13

8. 100 Day Plan
Andrew Haines
CEO
Andrew Haines is leading a 100-day programme looking at how we work including gathering views from customers, stakeholders and suppliers, to ensure we have the right plan in place for the coming years.
There will also be four workstreams assessing our readiness for CP6:
Operational Capability Review
Led by Dave Ward, formerly Network Rail Route Managing Director
Engineering Capability Review
Led by Andrew McNaughton, formerly Network Rail chief engineer
Devolution Review
Led by Andy Thomas, Route Managing Director Wales
Rail Industry Support
Led by Anit Chandarana, Business Planning and Strategy Director
Outputs will be fed back to the Board in January 2019
IP operating model
The announcement from Andrew does not mention IP specifically and this is because we have already undertaken reviews by EY and KPMG, the outputs of which will be incorporated into the 100 day plan. This does therefore mean that any decisions about how we move forward with the IP operating model will be postponed until January, when Andrew has committed to present the outputs of all of the work-streams to the Board.
In the meantime we are continuing with the work streams identified by the KPMG review, which will enable us to move forward in the New Year following Andrew’s workstream outputs.