ORR announces decision on proposed Crossrail passenger services

3 March 2008
ORR/08/08

The Office of Rail Regulation (ORR) today announced the decision it proposes to take on an application for track access option for Crossrail passenger services.

The access rights reserve capacity for services to operate on routes between Maidenhead/Heathrow Airport and Abbey Wood/Shenfield. The rights are to use Network Rail’s network, and do not include the proposed new tunnel through central London.

All of the paths requested by the applicants, the Secretary of State for Transport and Network Rail, have been awarded - save for two trains per hour off peak and at weekends. ORR did not believe the business case showed there was clear demand for this many services.  However, this exclusion does not mean that approval could not later be given if a persuasive case could be demonstrated. ORR also proposes access should be awarded for a term of 30 years, from the start of services. This will provide adequate certainty for the significant start-up investments that will be required.

However, recognising the potential impact of Crossrail on other services, ORR proposes the operation of the services should be subject to:

• the applicants being able to satisfy objective capacity and performance tests, demonstrating the  ability to operate services alongside all existing passenger and freight services, with some margin for growth of freight;
• a buy-back mechanism enabling rights to be purchased for alternative use  if a better use of capacity is identified, to help ensure flexibility; and
• a ‘use it or lose it’ provision for individual access rights, to protect against the risk of capacity remaining unused by Crossrail.

The applicants, and interested parties, have until 17 March to make any final representations.

ORR Chief Executive, Bill Emery, said: “We have considered the application, balancing the interests of all rail users affected by the Crossrail proposals. Our decision aims to make best use of the railway network, while providing adequate certainty for investment in larger developments.

“This application had significant implications for other freight and passenger users, and I believe our decision recognises the specific needs and importance of both sectors and the need to ensure fair treatment between all users of the network.”

Notes to editors

1. As well as setting out the proposed decision, ORR’s document invites representations from the applicants and interested stakeholders on any material new information ORR has not taken into account, and/or factual inaccuracies, by midday on 17 March 2008. 
2. ORR aims to make a final decision towards the end of (March 2008, setting out the full reasons, and including all the modifications required to be made to the track access option (TAO).
3. ORR received an agreed application under Section 18 of the Railways Act 1993, from Network Rail and the Department for Transport (on behalf of the Secretary of State) on 23 July 2007, for a 50 year TAO to reserve rights for DfT’s planned Crossrail services. The rights sought were for Network Rail’s network only, and excluded the proposed new central tunnel section.
4. A TAO is an access contract as defined in section 17(6) of the Railways Act 1993, and provides a mechanism by which future access to a railway facility can be secured. ORR’s track option policy is available form its website at http://www.rail-reg.gov.uk/upload/pdf/350.pdf.
5. ORR consulted the parties and rail industry stakeholders through its consideration of the application and at a rail industry hearing on 1 February 2008, held to address detailed issues relating to the demand for Crossrail services, capacity and performance, and the change control mechanism contained in the draft TAO. ORR has also taken into account the Performance and Systems Modelling Report which the applicants produced at our request and published in December 2007.
6. ORR is minded to conclude the approval of a TAO for a term of 30 years, from the start of Crossrail services, with the requested number of access rights in the peak and shoulder peak periods, but with two fewer paths per hour in each direction in the off peak and at weekends. ORR does not consider the applicants have made a clear case for all the rights requested, although the decision does not preclude the parties from applying at a later date when the level of demand is clearer.
7. Directions to enter into the actual TAO will be issued as soon as possible, and hopefully within the next two to three months, but only if ORR is content that all the necessary modifications and outstanding contractual issues have been resolved.

A copy of all relevant documentation relating to the application and our consideration of it, together with this proposed decision, can be found on ORR’s website at www.rail-reg.gov.uk/server/show/nav.205.

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ORR Press Office – 020 7282 2188/2007