ORR’s National rail review Q1 2007-08: passenger travel continues to rise as Network Rail increases expenditure
29 August 2007
ORR/23/07
The Office of Rail Regulation (ORR) today publishes its National rail review and Network Rail monitor covering the first quarter of 2007-08.
The main trends for the 1st quarter show yet more growth in passenger usage, improving punctuality, and higher levels of investment in improving the network for passengers.
Challenges remain, such as the performance of Network Rail’s western route, the delivery of modernisation to the West Coast route, and battling with adverse weather conditions.
ORR chief executive Bill Emery said: "There has been a small improvement in overall punctuality, as well as a larger increase in the number of passengers using the network. Network Rail plans to significantly increase expenditure on enhancements, which will be of benefit to both passengers and the freight sector.
"The torrential rain in June caused major disruption to the railway network in some parts of the country. We recognise that these were unprecedented conditions. We are satisfied that as much as possible was done to minimise disruption, including the swift implementation of emergency timetables. We are confident Network Rail and their partners will learn from these events and improve their contingency planning.
"However, performance on Network Rail’s western route continues to disappoint; and we expect to see improvements. The joint performance improvement plan requires action from both the train operator and Network Rail to bring about changes. If we conclude that Network Rail could and should have been doing more than they have been, we will take enforcement action."
National rail review
Q1 (April to June) 2007-08 features a number of key industry issues, including:- Increasing passenger usage - last year passengers travelled 46.5 billion kilometres on railway journeys, representing an increase of 7.6% over 2005-06.
- Growth in freight - total freight moved continued to grow in 2006-07, albeit at a slower rate than in previous years. In 2006-07, 22.11 billion net tonne kilometres were moved, which represents an increase of 1.9% over 2005-06.
- Station redevelopment – Network Rail and train operators face a challenge to assemble a coherent and robust plan that fully utilises the funding made available by the government for the next control period.
- Electricity charges - the increase in electricity costs determines the charge paid by train operators to Network Rail. Train operators and Network Rail have been discussing whether the resulting level of charge reflects Network Rail’s cost of buying electricity (as the charge is intended to do). Network Rail has agreed to tie the charges in with the actual cost of electricity.
National rail review also identifies a number of challenges for the industry, including:
- Adverse weather - the end of this reporting quarter has been characterised by flooding, which seriously impeded some parts of the network. All parts of the industry responded well to the difficulties, but there are lessons that can be learned in terms of contingency planning for the future.
- 7-day railway: Network Rail is leading the development of a strategy to deliver a railway that runs for the whole week minimising disruptions to passengers. Their plan is that within a seven-year timescale, disruption to passengers caused by planned engineering work will be minimised.
Network Rail monitor
From Q1 (1 April to 23 June) 2007 shows:
Great Britain:
- Performance - The Public Performance Measure (PPM) for Q1 was 88.2%, marginally higher than the industry target of 88.1%. This is 1.2% higher than PPM for Q1 2006-07. The year-end PPM target for 2007-08 is 89.5%.
- Network Rail Western Route - Overall performance on this route continues to suffer, and the high level of delays has been attributed to Network Rail.
- Network Rail’s expenditure - Network Rail is significantly increasing its spending on enhancing the quality and capability of the network. This will be of benefit to customers.
- Infrastructure Assets: Network Rail's management of its infrastructure assets continues to show considerable variation in performance. The total number of asset failures in Q1 was virtually identical to Q1 2006-07, but with a small increase in consequential delay of 1.5%.
- Delay minutes: Network Rail delay minutes in Q1 were 5% higher than in Q1 2006-07, however this is in line with the regulatory target of 9.8 million minutes for 2007-08.
Scotland:
- Performance: PPM for Q1 was 89.0%, an improvement of 2.5 percent from Q1 in 2006-07. Network Rail and First ScotRail are planning to deliver 90.0% PPM by March 2008, ahead of England & Wales.
- Expenditure: The year to date expenditure at the end of Q1 was £22 million (18.6%) lower than budget.
- Delay minutes: Network Rail is ahead of both regulatory and business plan targets for 2007-08.
Notes to editors:
- The National rail review is available on our website at http://www.rail-reg.gov.uk/upload/pdf/336.pdf
- The Network Rail monitor is available on our website at http://www.rail-reg.gov.uk/upload/pdf/335.pdf
Press enquiries
ORR Press Office – 020 7282 2188/2007
