1. Zürich 27 May 2011 EFRTC Policy & Research Committee Market Strategy Report Jeremy Candfield Chairman

2. Spoke in Florence on the continuing delay in completing the report of workstream A on Market Strategies Intended to be the first of seven studies under a joint initiative of EIM/CER/EFRTC following-up Innotrack work: Introduction EFRTC GM, Zürich 27.05.2011

3. Post-Innotrack Workstreams: A reminder ABC Market StrategiesLong Term Funding and Strategic Planning Work programming DEF Project Management and Logistics Contracting Strategies Rules and Regulations G Plant EFRTC GM, Zürich 27.05.2011

4. Pending completion of A the Committee has not met. But: -the report has now reached Final Draft stage -is being circulated by EIM to the WG for final comment and then publication -agreed with EIM will discuss Workstream B – Long Term Funding – and Workstream E – Contracting Strategy – once A is completed -if need be we may take E forward by ourselves Patience is a virtue....(but see later!) Introduction EFRTC GM, Zürich 27.05.2011

5. Participants Some Survey Conclusions Case Studies European Landscape Result The Study EFRTC GM, Zürich 27.05.2011

6. Participants EFRTC GM, Zürich 27.05.2011 IMsContractors Network Rail (UK) - ChairANIAF (Italy) Adif (Spain)Balfour Beatty (UK) Banedanmark (Denmark)BAM Rail (Netherlands) Infrabel (Belgium)Carillion (UK) Jernbaneverket (Norway)COMSA-EMTE (Spain) LDz (Latvia)Heitkamp (Germany) LitRail (Lithuania)Leonhard Weiss (Germany) MAV (Hungary)Railway Industry Association (UK) National Rail Infrastructure Company (Bulgaria) Schreck-Mieves (Germany) PKP PLK (Poland)SOMAFEL (Portugal) ProRail (Netherlands)Spitzke (Germany) REFER (Portugal)TSO (France) RFF (France)VolkerRail (Netherlands) RHK (Finland) SNCF (France) ZSR (Slovakia)

7. insourcing/outsourcing – decision-making criteria value-adding behaviours value-destroying behaviours Some Survey Conclusions EFRTC GM, Zürich 27.05.2011

8. Part 1: decision-making criteria EFRTC GM, Zürich 27.05.2011

9. In Order of Importance: EFRTC GM, Zürich 27.05.2011

10. good safety and environmental culture at all levels clarity and simplicity of technical, legislative and safety standards required to be met in delivering the works collaboration and concise, clear, timely communication work is delivered to the agreed quality first time Survey of Value-Adding Behaviours – Most Important: EFRTC GM, Zürich 27.05.2011

11. Lack of clarity in scope of work to be done, frequent uncontrolled and late changes by client, specifications, standards and capacity Poor site management or pressure to take short cuts Short notice change to track access requirements or availability Poor quality work requiring corrective actions and thus reducing track capacities for operators Survey of Value-Destroying Behaviours EFRTC GM, Zürich 27.05.2011

12. Case studies PRORAIL on process of outsourcing track maintenance in the Netherlands RFF – examples from performance contract which may affect outsourcing in France Network Rail system of performance assessment of contractors offers and works in GB GB (RIA) Value Improvement Programme driving waste out of the supply chain using collaborative behaviours Finland on collaborative process of product life cycle and performance assessment by outsourcing Switzerland - positive experience from collaborative way of working in whole supply chain with client (from long term planning to performing the work) EFRTC GM, Zürich 27.05.2011

13. Estimates were derived, mainly by EFRTC (SG), of annual spend on track maintenance and renewal by each IM Presented as an Appendix with further information Approximate total £20b pa, c40% by contractors – mainly renewals. The European Landscape EFRTC GM, Zürich 27.05.2011

14. A guidebook for both Infrastructure Managers and Contractors to help encourage open dialogue, develop transparency, promote value-adding behaviours, and showcase good practice. Since it was written.... Result EFRTC GM, Zürich 27.05.2011

15. Network Rail website since 25 March 2011: Partnering Framework for Infrastructure Works Post Scriptum EFRTC GM, Zürich 27.05.2011

16. Network Rail website since 25 March 2011: Partnering Framework for Infrastructure Works Post Scriptum EFRTC GM, Zürich 27.05.2011

17. Network Rail website since 25 March 2011: Partnering Framework for Infrastructure Works Post Scriptum EFRTC GM, Zürich 27.05.2011

18. It is still early days It is clear that senior management is committed Numerous other major changes are being made simultaneously in costs, structure, contestability and much else Will they break the Permafrost? To be continued..... Network Rail Partnering Framework EFRTC GM, Zürich 27.05.2011

19. Thank you