ORR’s National rail review Q4 2006-07: performance and efficiency continue to improve

6 June 2007
ORR/12/07

The Office of Rail Regulation (ORR) today publishes its National rail review and Network Rail monitor covering the fourth quarter of 2006-07.

The look back on the last quarter shows an industry in which train operators have built upon improvements in performance, and Network Rail has continued to use its funds more efficiently.

ORR Chief Executive Bill Emery said:

“This quarter saw the tragic derailment at Grayrigg, which resulted in the death of one person. Our investigation into the derailment continues, as do those by British Transport Police and the Rail Accident Investigation Branch.

“Aside from that, this quarter has been one in which the railway has generally improved: train performance continues to head in the right direction; and Network Rail is continuing to improve its efficiency. However, there are some worrying signs; performance improvements this year have been as a result of the train operating companies rather than Network Rail, reducing the delays they cause.  Also the number of asset failures during the year has increased.

“We also publish our annual report, looking back on our first year as the combined safety and economic regulator for railways in Great Britain. A priority for the merged organisation has been to promote joint working across the industry; and I hope the improvements that are continuing to be made in safety and efficiency on the railways are a reflection of this.”

The National rail review – Q4 (January to March 2007) 2006-07 features a number of key industry issues, including:

• Network Rail’s performance – In the four years since it came into existence Network Rail has made enormous advances in tackling the problems it inherited. It has improved both its performance and the condition of it assets, and is starting to reduce its basic costs against a background of increasing traffic levels. However it is finding it increasingly difficult in some areas to sustain the rate of improvement. Weather related delays more than doubled.
• What Passengers are telling us about the railway – Passenger Focus published the results of their spring 2007 survey yesterday. The 2% reduction in satisfaction noted reflects passengers’ continuously rising expectations from the industry. As with many providers of goods and services the industry must accept that it has to keep improving in real terms just to stand still in terms of passenger satisfaction.
• Annual safety report – ORR’s first Railway Safety Statistical Report (for the calendar year 2006) is also published today, as part of our annual report. This shows that, overall, railway safety continues to improve.
  
  Selective findings include:
  
• there were no passenger fatalities in 2006 as in 2005 (sadly, one passenger died in February 2007, see below);
• total casualties from all incidents in 2006 were less than in 2005 (down from 5172 to 4379);
• fatalities at level crossings were down to 10 (from 16 in 2005);
• the numbers of high risk SPADs (signals passed at danger) continues to fall (134 compared to 339 in 2002); and
• a fall in assaults on railway employees for the fifth year running.

Network Rail monitor for Q4 (7 January to 31 March 2007) 2006-07 shows:

Great Britain

• Safety – Sadly, one passenger died and many were injured by the derailment at Grayrigg in February 2007. However the underlying level of train accident risk calculated by the Rail Safety and Standards Board continues to fall, and is now less than half of what it was in 2002. The largest single source of risk is still misuse of level crossings.
• Infrastructure assets – Notable successes for Network Rail in the last year included the lowest number of broken rails for at least 11 years, and the lowest number of temporary speed restrictions for at least six years. But there was an overall increase in asset failures, especially those affecting track and power supplies.
• Expenditure – Network Rail spent £199m (3.5%) less than budget in the year (April 2006 to March 2007). This was essentially due to lower spending on renewal and enhancement projects through a combination of deferred work and improved efficiency.
• Performance – The public performance measure (number of passenger trains ‘on time’) reached 88.1% for the whole year – beating the target by 0.5%, and improving on last years’ figure by 1.7%. We remain concerned with performance on Network Rail’s Western route, particularly that of First Great Western’s services where the full year public performance measure was 83.2%. However, we believe a joint plan by the train operator and Network Rail provides a sound basis for improvement.

Scotland

• Performance – Performance in Scotland was slightly better than in Great Britain as a whole, with the public performance measure for the year reaching 88.8% - 1.5% ahead of target.
• Infrastructure assets – Overall asset performance in Scotland continues to be equal to or better than performance across the network as a whole. The number of incidents of asset failure was 4.1% lower this year than last.
• Expenditure – Network Rail spent £8m less than budget for the year, largely because of deferrals of work on WCRM and other schemes.

The National rail review comments on the issues and trends in the national rail industry in Britain, and incorporates the latest quarterly edition of the Network Rail monitor: with companion scorecards for England and Wales, and for Scotland. The National rail review draws on and includes access to National rail trends, which has become a rolling online data resource, enabling users to have access to the most up-to-date information possible.

Notes for editors

1. 1. The National rail review is available on the ORR website at http://www.rail-reg.gov.uk/upload/pdf/327.pdf
   2. National rail trends is available on the ORR website at http://www.rail-reg.gov.uk/server/show/nav.129
   3. The Network Rail monitor and a commentary is available on the ORR website at http://www.rail-reg.gov.uk/upload/pdf/328.pdf
   4. ORR’s annual report 2006-07 provides a commentary on the previous accounting year (April 2006 to March 2007). It incorporates the new format Railway Safety Statistical Report 2006, which provides information on the safety performance of the railway industry last year (January to December 2006). It covers the key safety risks in five sections: level crossings, trespass and vandalism, rolling stock and infrastructure failures, railway employee health and safety, and collisions and derailments. Available at http://www.rail-reg.gov.uk/upload/pdf/329.pdf and http://www.rail-reg.gov.uk/upload/pdf/rss_report_06.pdf.

Press enquiries

ORR Press Office – 020 7282 2188/2007