Regulator will reform management arrangements at stations

23 June 2004
ORR/23/04

The Regulator has today published his final policy conclusions on the Stations Code. The Code will sweep away the existing cumbersome matrix of station access contracts to provide simpler, streamlined and more efficient management arrangements at stations.
 
Introducing the Stations Code, Tom Winsor said:

“Much of my time as Regulator has been devoted to improving the contracts that underpin the rail industry and the Stations Code will be a further example of contract documents in simpler to understand language and of where the rights and responsibilities of the parties are set out more clearly.”

“By strengthening and clarifying the rights and responsibilities of station access parties and recognising the community of interest at stations, my proposals will incentivise compliance with contractual obligations; take away potential areas of dispute through clear responsibilities for maintenance, repair and renewal; provide fast and effective remedies for when things do go wrong; and provide for better planning and implementation of work at stations. This will benefit all key stakeholders at stations, including passengers.”

“Industry parties will enter into the new Code arrangements when they consider it is commercially appropriate to do so. I believe there are real benefits to be obtained from the Stations Code arrangements for the industry as a whole.”

Notes for editors

  1. The Regulator’s final policy conclusions on the Stations Code are published today.  Final drafting of the Stations Code will follow by the end of August 2004.
  2. The Regulator’s proposals follow his earlier consultations on the stations access regime as follows:
    • Regulator proposes more effective contractual regime for station access, published in June 2000;
    • Station access regime: Maintenance and repair, liability and enforcement published in September 2001;
    • Regulator proposes simplification of legal documentation for stations published in August 2002; and
    • Stations code – draft conclusions published in January 2004.
  3. The Stations Code – final policy conclusions is also available from the ORR Librarian, Sue MacSwan, 1 Waterhouse Square, 138-142 Holborn, London EC1N 2TQ, tel: 020 7282 2001, fax: 020 7282 2045, e-mail: rail.library@orr.gsi.gov.uk.
  4. Network Rail owns the vast majority of the 2500 stations in Great Britain. It leases all but a few to train operators, who manage and maintain them, and, in turn, grant access for other train operators’ services. Under the current regime, for virtually every station, there is a separate lease and a suite of access documents.
  5. The station access contracts developed and entered into during the privatisation of the rail industry in Great Britain established the relationship between Network Rail and train operators at stations, including the rights and obligations of each of the parties. Although the contracts were serviceable, they failed the test of being good contracts in many respects, often hindering good management and development rather than supporting it.
  6. The current contractual regime for stations is built up from individual bilateral contracts, each incorporating by reference the station access conditions. These are the rules that govern the way stations are run. Network Rail, who own most stations, lease them to train operators to run (apart from Managed stations, which Network Rail run themselves). The lead operator at the station offers access to any other operator who requires it to run their services. These operators enter into access contracts with the lead operator (to give them rights to stop their trains) and into collateral agreements with Network Rail, so that they have a direct line of enforcement to Network Rail if the lead operator at the station fails to take enforcement action itself.
  7. The Regulator’s proposals, which have broad support from across the industry, will replace the access agreements, collateral agreements and the station access conditions with two stations codes, one covering access to every station in England and Wales, and one covering access to all stations in Scotland. The Regulator also hopes to replace the individual station leases with new global leases, one covering all the stations leased by Network Rail to an operator.
  8. In addition to these structural improvements the Stations Code also delivers a package of improvements to the current provisions and processes, many developed through consultation and collaboration with interested parties. These include:
    • clearer and more sensible split of responsibilities for maintenance, repair and renewal of station assets;
    • stronger incentives to keep things in good working order, and better remedies when things go wrong;
    • new requirements to introduce and maintain forward-looking plans for renewal and enhancement works; and
    • a simpler process for dealing with changes to stations.

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