Office of Rail Regulation publishes proposals to simplify legal documents for rail depots

17 November 2004
ORR/45/04


The Office of Rail Regulation has today published a consultation document setting out proposals for simplifying and streamlining the contractual arrangements at light maintenance depots.

Network Rail owns the majority of light maintenance depots in Great Britain.  It leases them to train operators and others, who manage and maintain them, and, in turn, grant access for and provide maintenance services to other train operators.

Under the current regime, for each depot, there is a separate lease and a suite of access documents. The consultation document looks at options for simplifying and improving these arrangements.

Chris Bolt, Chairman of the Office of Rail Regulation said:

“Providing light maintenance services is largely an invisible activity to the travelling public, but it has highly tangible outputs in terms of trains running on time, safely and with the full complement of clean, comfortable vehicles and facilities.”

“We want to establish an appropriate framework of incentives to drive improvements in the performance of maintenance services.  We will be working with Network Rail, train operators and others to make the necessary improvements to this regime.”


Notes for editors

  1. There are nearly 100 passenger light maintenance depots in Great Britain, most of which are owned by Network Rail but leased to train operators. This arrangement was established at the time of privatisation, recognising the fact that train operators require close control of their train maintenance operations. There are also some 60 maintenance depots serving freight operators.
  2. The current contractual regime for depots is built up from individual bilateral contracts, each incorporating by reference the Depot Access Conditions. The Depot Access Conditions set out the rules which govern the way in which the depot is run. Network Rail, the freeholder, generally leases the depot to a train operator, who runs the depot and (as "depot facility owner") grants access to other train operators (the "beneficiaries").
  3. Each beneficiary has a collateral agreement with Network Rail so that, if Network Rail fails to fulfil its obligations to the depot facility owner, the beneficiary has a right to take action against Network Rail as well as the depot facility owner.
  4. ORR is considering the option of replacing the current access agreements, collateral agreements and the Depot Access Conditions with a new Depots Code, containing standard terms and applying to all depots.
  5. ORR is also considering a package of other improvements to the provisions and processes currently set out in the Depot Access Conditions, including:
    • improvements to the depot performance regimes;
    • a simplified process for dealing with changes to a depot;
    • clearer responsibilities for maintenance and repair of depot assets;
    • stronger incentives to keep depot assets in good order, and better remedies for when things go wrong; and
    • greater transparency of depot access charges and the introduction of a depots “long term charge” in place of the current lease rent arrangements.
  6. Copies of The Depots Code – Consultation Document are available from the ORR website at http://www.rail-reg.gov.uk/upload/pdf/215.pdf and are 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.

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