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The political issues facing rail
Darren Caplan, Chief Executive
Railway Industry Association
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Agenda
1. RIA / purpose
2. The political context
3. Defining the sector – Oxford Economics report
4. Main issues and asks
5. Discussion
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1. RIA / purpose
• 200+ members
• 60% SMEs
• Range of functions
− Public affairs
− Policy
− Technical & Innovation
− Exports
− Membership & Events
− Business Administration
• Mission: the voice of rail supply / promoting sectoral growth
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RIA MembersAATi Rail Ltd ABB Ltd AECOM AEGIS Engineering Systems Alan Dick Communications Alstom Transport Altran UK Ltd Altro Limited Amaro Signalling Limited Ametek Airtechnology Group Amey Anderton Concrete Products Andromeda Engineering Ltd Angel Trains UK Ltd Ansaldo STS UK Ltd API Capacitors Ltd Arcadia Alive Ltd Arcadis LLP Ark Signalling Consultancy Artemis Intelligent Power Ltd Arthur D Little Ltd Arthur Flury (UK) Ltd Associated Utility Supplies Atkins Babcock BakerHicks Balfour Beatty Rail UK Ltd BMAC Ltd BMT Asset Performance Ltd Bombardier Transportation Bridgeway Consulting Ltd British Steel Camlin Rail Ltd Capita Property & Infrastructure Ltd Carillion Rail Cembre Ltd CH2M CHG Electrical Ltd CMS Cameron McKenna Nabarro Olswang LLP Colas Rail Ltd
Commend UK Ltd Costain Ltd CPC Project Services LLP DEG Signal Ltd DGauge Ltd Dorma+Kaba Dura Composites Ltd DWG Infraco Ltd Eaton Electrical Products Ltd Egis Semaly Ltd Electren UK Ltd Electrification Solutions Ellis Patents Ltd Eltek Emico Limited EnerSys UK Ltd ENOTRAC UK Ltd Ferrabyrne Ltd Findlay Irvine Ltd Firstco Ltd Flexicon Ltd FLI Structures Frankham Consultancy Group Frazer Nash Consultancy Ltd FUCHS Lubricants UK Plc Fugro GeoServices Ltd Furrer+Frey GB Limited (Overhead Contact Lines) Gardiner & Theobald Glenair UK Ltd GrayBar Ltd Gutteridge, Haskins & Davey Harmonic Limited Harsco Rail Heat Trace Ltd Henry Williams Ltd Hilti Great Britain Ltd Hird Rail Development Ltd Hitachi Information Control Systems Europe Hitachi Rail Europe Ltd HOK International Ltd
Howarth & Co Icomera UK Ltd Independent Glass Company INECO UK IPEX Consulting Ltd J Murphy & Sons Ltd Jacobs UK Ltd Jafco Tools Ltd James Fisher Testing T/A Strainstall Ltd Jewers Doors Limited Jobson James Rail Kelly Integrated Transport Services Ltd KeTech Ltd Kier Construction | Infrastructure UK Kilborn Consulting Ltd Kilfrost Limited Knorr Bremse Rail Systems Komplete Group Ltd L.B. Foster Rail Technologies Legion Ltd Lend Lease Consulting Linbrooke Design Services LML Products Ltd Loram UK Ltd LPA Group Plc Mace Group Limited Matisa (UK) Ltd Mechan Ltd Metrail Construction Ltd MGB Engineering Ltd Mott MacDonald Group Movement Strategies MPEC Technology Ltd Network Certification Body Network Rail Consulting Ltd Newton Europe Limited NG Bailey Nichols Group Ltd Nokia
Omnicom Engineering OSL Rail Ltd Ove Arup and Partners Panasonic UK Pandrol Track Systems Park Signalling Limited Parker Hannifin Ltd Parsons Transportation Grp Pauley Interactive Pennant International Group Perpetuum Ltd Petrotechnics Ltd Plasser UK Plowman Craven Poise Group Ltd Porterbrook Leasing Company Ltd Progress Rail Services UK QinetiQ R Bance & Co R S Clare & Co Ltd Rail Products UK Ltd Ramboll UK Ltd Resonate Group Ltd Rhomberg Sersa UK Limited Ricardo Rail Ltd RINA Consulting Rowe Hankins Limited RSK RTS Solutions Limited Saft Ltd Schneider Electric SEA Limited Seetru Limited SELLA CONTROLS Serco Rail Technical Services Siemens plc Siemens Rail Automation Ltd Signal House Group Limited Skanska UK Plc Smiths Connectors SNC Lavalin Rail & Transit
Southco Manufacturing Ltd Specialist Project Integration SPL Powerlines UK Ltd SRS Rail System Ltd Systra Ltd Tangerine Tarmac Trading Ltd TATA Consultancy Services Telent Technology Services Thales UK Time 24 Ltd Tony Gee & Partners Tracsis plc Trapeze Group Rail Ltd Tratos Ltd TRL Trolex Ltd TSP Projects UK Power Networks Services Ultra Electronics PMES Unipart Rail Variable Message Signs Ltd Vertex Systems Engineering Voestalpine SIGNALING Fareham Ltd Voith Turbo Limited Volkerwessels Limited Vossloh Cogifer UK Limited Wabtec Faiveley UK Wentworth House Rail Systems Ltd Westcode (UK) Ltd Westermo Data Communications Ltd WillB Brand Consultants WSP|Parsons Brinckerhoff Xrail Group Limited York EMC Services Zetica Ltd Zonegreen Ltd
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RIA’s members represent all parts of
the railway supply industry
60% of our members are SMEs
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RIA MembersAATi Rail Ltd ABB Ltd AECOM AEGIS Engineering Systems Alan Dick Communications Alstom Transport Altran UK Ltd Altro Limited Amaro Signalling Limited Ametek Airtechnology Group Amey Anderton Concrete Products Andromeda Engineering Ltd Angel Trains UK Ltd Ansaldo STS UK Ltd API Capacitors Ltd Arcadia Alive Ltd Arcadis LLP Ark Signalling Consultancy Artemis Intelligent Power Ltd Arthur D Little Ltd Arthur Flury (UK) Ltd Associated Utility Supplies Atkins Babcock BakerHicks Balfour Beatty Rail UK Ltd BMAC Ltd BMT Asset Performance Ltd Bombardier Transportation Bridgeway Consulting Ltd British Steel Camlin Rail Ltd Capita Property & Infrastructure Ltd Carillion Rail Cembre Ltd CH2M CHG Electrical Ltd CMS Cameron McKenna Nabarro Olswang LLP Colas Rail Ltd
Commend UK Ltd Costain Ltd CPC Project Services LLP DEG Signal Ltd DGauge Ltd Dorma+Kaba Dura Composites Ltd DWG Infraco Ltd Eaton Electrical Products Ltd Egis Semaly Ltd Electren UK Ltd Electrification Solutions Ellis Patents Ltd Eltek Emico Limited EnerSys UK Ltd ENOTRAC UK Ltd Ferrabyrne Ltd Findlay Irvine Ltd Firstco Ltd Flexicon Ltd FLI Structures Frankham Consultancy Group Frazer Nash Consultancy Ltd FUCHS Lubricants UK Plc Fugro GeoServices Ltd Furrer+Frey GB Limited (Overhead Contact Lines) Gardiner & Theobald Glenair UK Ltd GrayBar Ltd Gutteridge, Haskins & Davey Harmonic Limited Harsco Rail Heat Trace Ltd Henry Williams Ltd Hilti Great Britain Ltd Hird Rail Development Ltd Hitachi Information Control Systems Europe Hitachi Rail Europe Ltd HOK International Ltd
Howarth & Co Icomera UK Ltd Independent Glass Company INECO UK IPEX Consulting Ltd J Murphy & Sons Ltd Jacobs UK Ltd Jafco Tools Ltd James Fisher Testing T/A Strainstall Ltd Jewers Doors Limited Jobson James Rail Kelly Integrated Transport Services Ltd KeTech Ltd Kier Construction | Infrastructure UK Kilborn Consulting Ltd Kilfrost Limited Knorr Bremse Rail Systems Komplete Group Ltd L.B. Foster Rail Technologies Legion Ltd Lend Lease Consulting Linbrooke Design Services LML Products Ltd Loram UK Ltd LPA Group Plc Mace Group Limited Matisa (UK) Ltd Mechan Ltd Metrail Construction Ltd MGB Engineering Ltd Mott MacDonald Group Movement Strategies MPEC Technology Ltd Network Certification Body Network Rail Consulting Ltd Newton Europe Limited NG Bailey Nichols Group Ltd Nokia
Omnicom Engineering OSL Rail Ltd Ove Arup and Partners Panasonic UK Pandrol Track Systems Park Signalling Limited Parker Hannifin Ltd Parsons Transportation Grp Pauley Interactive Pennant International Group Perpetuum Ltd Petrotechnics Ltd Plasser UK Plowman Craven Poise Group Ltd Porterbrook Leasing Company Ltd Progress Rail Services UK QinetiQ R Bance & Co R S Clare & Co Ltd Rail Products UK Ltd Ramboll UK Ltd Resonate Group Ltd Rhomberg Sersa UK Limited Ricardo Rail Ltd RINA Consulting Rowe Hankins Limited RSK RTS Solutions Limited Saft Ltd Schneider Electric SEA Limited Seetru Limited SELLA CONTROLS Serco Rail Technical Services Siemens plc Siemens Rail Automation Ltd Signal House Group Limited Skanska UK Plc Smiths Connectors SNC Lavalin Rail & Transit
Southco Manufacturing Ltd Specialist Project Integration SPL Powerlines UK Ltd SRS Rail System Ltd Systra Ltd Tangerine Tarmac Trading Ltd TATA Consultancy Services Telent Technology Services Thales UK Time 24 Ltd Tony Gee & Partners Tracsis plc Trapeze Group Rail Ltd Tratos Ltd TRL Trolex Ltd TSP Projects UK Power Networks Services Ultra Electronics PMES Unipart Rail Variable Message Signs Ltd Vertex Systems Engineering Voestalpine SIGNALING Fareham Ltd Voith Turbo Limited Volkerwessels Limited Vossloh Cogifer UK Limited Wabtec Faiveley UK Wentworth House Rail Systems Ltd Westcode (UK) Ltd Westermo Data Communications Ltd WillB Brand Consultants WSP|Parsons Brinckerhoff Xrail Group Limited York EMC Services Zetica Ltd Zonegreen Ltd
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2. The political context
• Brexit
• Proactive industrial strategy
• Minority government
• Devolved / regional political decision-making
• Positive rail settlement for CP6… Crossrail…HS2… Feeling Government has done its bit?
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3. Defining the sector – Oxford Economics report
• Size of sector
– Rail industry comprises 240,000 jobs / £10.4bn GVA
oAviation: 921,000 jobs / £52bn GVA
oAutomotive: 700,000 jobs / £45bn GVA
– RIA / members commissioned newresearch, via Oxford Economics
– OE found previous figures excluded:wider rail network, incl metro services(London Underground), N Ireland,exports, station-related cateringand retail, capital investmentand induced GVA/jobs
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3. Defining the sector – Oxford Economics report
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3. Defining the sector – Oxford Economics report
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• OE report launched 27 Feb− Transport Select Committee Chair, Lilian Greenwood MP (Lab)
− All Party Parliamentary Rail Group Chair, Martin Vickers MP (Cons)
• The ask: promote figures to policy makers and influencers
3. Defining the sector – Oxford Economics report
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Five key issues facing the rail supply sector…
• Funding
• Brexit
• Industrial Strategy
• Maintaining support for major projects
• Decarbonisation / electrification
4. Main issues and asks
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• Funding
− CP5 shortfall - £500m asked for… £200m reallocated to NR renewals work
− Longer-term problems of the funding system…
4. Main issues and asks
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• Funding
− CP5 shortfall - £500m asked for… £200m reallocated to NR renewals work
− Longer-term problems of the funding system…
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• Funding
− ‘Boom and bust’ rail funding has a significant impact:
o Increases costs of infrastructure work by up to 30% (higher costs for passengers, freight and taxpayers)
oMeans Redeployment of teams, short time working, graduate and apprentice recruitment freezes and redundancies when rail needs to be recruiting/ retraining for the future;
oReduces confidence to invest in developing new skills/products;
oReduces confidence in work banks: RIA members reporting that delays and deferrals of work coming to market have eroded supplier confidence.
o Jeopardises survival of SMEs
4. Main issues and asks
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• Funding
− Simple ask…
o Support five-year Control Periods but
o… need to work to reduce ‘boom and bust’ – Govt (DfT/HMT), NR, ORR, supply sector, stakeholders
oPlease help us with this ask!
4. Main issues and asks
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• Brexit – challenges…
− Standards
− Skills/labour
− Frictionless trade
• Brexit – opportunities…
− Trade deals
− Exports drive
• The ask: Govt (DIT) to include rail more prominently in post-Brexit trade discussions
4. Main issues and asks
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• Industrial strategy – Rail Sector Deal
− Govt Brexit strategy: support key industries
− AI, Life Sciences, Automotive, Construction deals
• RIA key supporters of RSG activity to secure a rail deal
• Three pillars
− Accelerating the Delivery of the Digital Railway
− Significantly enhancing the customer experience
− Delivering a sustainable UK rail sector
• Key ask: Govt to provide medium and long term support
4. Main issues and asks
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4. Main issues and asks… support for majorprojects
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4. Main issues and asks
• The ask: Govt to continually promote major projects… and give more advance visibility of enhancements schemes so rail supply sector can plan
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• Delivering decarbonisation
− Govt challenging the industry to remove diesel-only trains by 2040
− Sees bi-modes / tri-modes / hydrogen trains as the answer
− RIA believes electrification remains the optimal technical solution for an intensively used railway
o Environmental benefits
o More economic over time (more passengers and less wear on the network)
o Passenger and community benefits: improved journey times, reduce passenger delays, quieter
– RIA’s Electrification Cost Challenge to reduce cost
– Decarbonisation Taskforce
• The ask: Government to keep an open mind on electrification, if it wants decarbonisation delivered
4. Main issues and asks
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Summary1. RIA / purpose
2. Political context – Brexit / Industrial strategy / minority govt / devolved & regional decision-making / complacency on rail?
3. Defining the sector – Oxford Economics report, need to promote significantly larger figures
4. Main issues and asks
• Funding – smooth out ‘boom and bust’ medium term
• Brexit – rail to be part of trade deal discussions
• Industrial Strategy, Rail Sector Deal – Govt to provide medium/long-term support for the sector
• Maintaining support for major projects – increased enhancements visibility, keep promoting major schemes
• Decarbonisation – keep open mind on electrification
Discussion
The political issues facing rail
Darren Caplan, Chief Executive
Railway Industry Association
