ORR finds Network Rail’s planning of Portsmouth signalling scheme was in breach of its licence

6 June 2007
ORR/12/07

The Office of Rail Regulation (ORR) has concluded that weaknesses in the planning and execution of the Portsmouth resignalling scheme by Network Rail caused it to breach  Condition 7 of its network licence.

Work on the project was due to be completed early 2007, but has overrun significantly. Network Rail has still not restored the full capability of the line to Portsmouth, with only five services an hour able to run instead of the normal seven. After reviewing the planning of the scheme and Network Rail’s management of the prime contractor, Siemens Transportation Systems, ORR has concluded that Network Rail failed adequately to evaluate and mitigate the risks associated with the project, and to manage its contractor in line with best practice. In particular, it failed to consider and plan for the possibility of an extended overrun of the commissioning works, and the consequential effect on passengers.  As a result of this the company breached its licence.

ORR Chief Executive, Bill Emery said,

“Network Rail needs to do more to avoid prolonged, unplanned disruption to passengers. At Portsmouth, it failed to take adequate account of the risks involved and the potential effect on train operators and passengers. Network Rail needs to improve its planning and its management of contractors to minimise the risk of resignalling overruns. It must have in place better contingency plans which have been developed in partnership with train operators and which minimise the impact of resignalling overruns if they occur.

We expect Network Rail to ensure that it completes the signalling work at Portsmouth in line with its revised timescale and to apply the lessons it has learnt here to future decisions.”

ORR has asked Network Rail to provide further information on the costs associated with the problems at Portsmouth, and the company may face a financial penalty for the breach of its licence.

Notes for editors

1. Network Rail’s network licence is available on the ORR website at http://www.rail-reg.gov.uk/upload/pdf/netwrk_licence.pdf.  The relevant licence condition is Condition 7 of Network Rail’s network licence which provides a duty for Network Rail to take such steps as are necessary or expedient so as to achieve the purpose of the Condition to the greatest extent reasonably practicable having regard to all relevant circumstances including the ability of Network Rail to finance its licensed activities.
   
   The purpose referred to above is:
   
   “to secure:
   
   (a) the operation and maintenance of the network;
   (b) the renewal and replacement of the network; and
   (c) the improvement, enhancement and development of the network,
   
   in each case in accordance with best practice and in a timely, efficient and economical matter so as to satisfy the reasonable requirements of persons providing services relating to railways and funders in respect of:
   
   (i) the quality and capability of the network; and
   (ii) the facilitation of railway service performance in respect of services for the carriage of passengers and goods by railway operating on the network.”
   
2. ORR’s economic enforcement policy and penalties statement is available on the ORR website at http://www.rail-reg.gov.uk/upload/pdf/287a.pdf

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ORR Press Office – 020 7282 2188/2007