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

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

3. 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

4. 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

5. 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 mph (110 – 160 kph)
Channel Tunnel Rail Link 186 mph (300 kph)
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6. 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
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7. Railway Industry Association
Source - DfT
Railway Industry Association

8. 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
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9. 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

10. 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.
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11. 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.
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12. 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

13. 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

14. 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

15. UK Metro/Light Rail London Underground Docklands Heavy Metro
Manchester Metrolink
Tyne & Wear Metro
Sheffield
Birmingham
Nottingham
Others in planning
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16. 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
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17. 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

18. 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

19. 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

20. 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.
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21. RIA Membership
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22. RIA Members – March 2006
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23. 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

24. 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
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25. 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

26. 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

27. 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

28. 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

29. 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

30. Infrastructure Engineering
Design
Construction
Project Management
Installation of track and equipment
Upgrading and renewal
Systems and Products
Civil, Track, Signalling & Electrification
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31. Consultancy Infrastructure and rolling stock engineering Design
Systems Integration
Independent Verification & Validation
Risk & Safety
Economics, planning and commercial
Procurement Support
Project Management.
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32. Some Examples Mott MacDonald Interfleet Technology Balfour Beatty
HSBC Rail
Atkins
Pandrol
KeTech
And many more…
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33. 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 requests to:
Railway Industry Association

34. 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:
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35. Contact details 22 Headfort Place London SW1X 7RY
Railway Industry Association
22 Headfort Place
London SW1X 7RY
Telephone: +44 (0)
Facsimile; +44 (0)
Website:
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36. Thank you
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