{"id":84289,"date":"2017-09-13T11:31:09","date_gmt":"2017-09-13T11:31:09","guid":{"rendered":"http:\/\/mostafa.openonline.co.uk\/?guid=9d356cfd3c69674c08680e463a338cad"},"modified":"2017-09-13T11:31:09","modified_gmt":"2017-09-13T11:31:09","slug":"speech-rail-renaissance-dealing-with-the-consequences-of-success","status":"publish","type":"post","link":"https:\/\/mostafa.openonline.co.uk\/?p=84289","title":{"rendered":"Speech: Rail renaissance: dealing with the consequences of success"},"content":{"rendered":"
\n

Good morning everyone.<\/p>\n

It\u2019s always a pleasure to be part of a Transport Times conference.<\/p>\n

And today (13 September 2017) is no exception.<\/p>\n

An expert audience.<\/p>\n

Distinguished rail industry speakers.<\/p>\n

And an agenda that tackles some of the big challenges facing the railway today.<\/p>\n

Mind you \u2014 there are always big challenges facing the railway.<\/p>\n

This is an industry that\u2019s been in almost constant flux since the Second World War.<\/p>\n

From nationalisation in 1948.<\/p>\n

And Beeching in the 1960s.<\/p>\n

To the reorganisations under British Rail in the \u201970s and \u201980s.<\/p>\n

And privatisation in the 1990s.<\/p>\n

What\u2019s striking about these landmarks in rail history is that they were all attempts by government to reverse the fortunes of a declining industry.<\/p>\n

Nationalisation under Clement Attlee\u2019s Labour government was an attempt to stabilise the \u2018big four\u2019 rail operators, each of which was effectively bankrupt.<\/p>\n

The Beeching cuts were a radical response to a decade of falling passenger numbers and rising losses.<\/p>\n

And privatisation was intended to halt the further slide of the railway \u2014 which had seen usage fall by almost a third between 1960 and 1995.<\/p>\n

Of all these different reforms, it\u2019s that last one \u2014 privatisation \u2014 that stands out.<\/p>\n

Because it\u2019s the only one that worked.<\/p>\n

It didn\u2019t just stabilise passenger numbers.<\/p>\n

It transformed them.<\/p>\n

And laid a path for future success.<\/p>\n

For a growing, competitive, profitable railway that delivered for the passenger and the taxpayer.<\/p>\n

And that success is something to bear in mind today.<\/p>\n

Because the issues you\u2019re discussing at this conference.<\/p>\n

Like franchising, rail investment, and Network Rail\u2019s future direction.<\/p>\n

Are all consequences of industry success.<\/p>\n

Of a rail renaissance that not even the most enthusiastic supporters of privatisation could have predicted 20 years ago.<\/p>\n

The statistic that\u2019s normally used to illustrate the impact of privatisation is that twice as many journeys are made on the railway today as in the mid-1990s.<\/p>\n

And that\u2019s certainly true.<\/p>\n

But there are other achievements that are no less impressive.<\/p>\n

Rail\u2019s share of the overall transport market has also doubled.<\/p>\n

More trains are running than ever before.<\/p>\n

We\u2019ve now got one of the safest railways in Europe.<\/p>\n

And franchises are delivering.<\/p>\n

Not just for passengers.<\/p>\n

But for taxpayers too.<\/p>\n

As Rail Magazine noted earlier this year, from requiring \u00a31.5 billion of state subsidy in 1998 to 1999, train operators made a net contribution of more than \u00a31 billion to the public purse in 2014 to 2015.<\/p>\n

And they will continue to deliver more for the taxpayer in years to come.<\/p>\n

Now of course not everything\u2019s gone to plan.<\/p>\n

The standard of services on some routes has fallen well below the level expected by passengers.<\/p>\n

But most franchises are working well.<\/p>\n

And they show that we have now have a robust and sustainable foundation for running and financing the rail network.<\/p>\n

So it\u2019s no surprise that other European countries are also ending state rail monopolies and opening up their networks to private operators.<\/p>\n

Big challenges remain.<\/p>\n

But they must be seen within the context of the huge progress we\u2019ve made.<\/p>\n

The question now is, how do we build on this success?<\/p>\n

As with any competitive business, the first by-product of success is growth.<\/p>\n

But to stay successful, you need to keep growing.<\/p>\n

And that means you have to invest.<\/p>\n

Today the rail network is operating on the edge of what it can cope with.<\/p>\n

Many routes are under considerable pressure.<\/p>\n

And yet demand continues to rise.<\/p>\n

You can see that either as a problem, or an opportunity.<\/p>\n

I see it as a massive opportunity.<\/p>\n

The industry is in a unique position.<\/p>\n

Knowing that there\u2019s a growing market out there for its services.<\/p>\n

Few other businesses have that privilege.<\/p>\n

Our job now is not to chase growth.<\/p>\n

It\u2019s to make a growing railway viable.<\/p>\n

We have not been in this position before.<\/p>\n

Frankly, no post war government has.<\/p>\n

So to support continued growth, we\u2019re delivering the biggest modernisation programme for more than a century.<\/p>\n

And right around the country.<\/p>\n

Take the Great North Rail Project.<\/p>\n

Just part of a \u00a313 billion northern transport programme this Parliament.<\/p>\n

Already, links between Manchester and Liverpool are much improved.<\/p>\n

New services to Glasgow have been launched.<\/p>\n

But there\u2019s a lot more to come.<\/p>\n

A comprehensive upgrade that from 2020, will deliver faster and more comfortable journeys for millions of passengers \u2014 from Bradford to Blackburn and Stockport to Sheffield.<\/p>\n

Franchises are investing to transform services.<\/p>\n

For example, Northern and TransPennine Express<\/a> will bring more than 500 new carriages into operation, with room for 40,000 extra passengers and more than 2,000 extra services a week.<\/p>\n

Within 3 years, all trains on these routes will be brand new or completely refurbished.<\/p>\n

And finally, those wretched Pacers will be gone.<\/p>\n

Something only the most hardened trainspotter could regret.<\/p>\n

We are also investing in the biggest upgrade of the Midland Main Line since it was completed in 1870.<\/p>\n

That will mean more seats and faster journeys during the peak.<\/p>\n

The next operator will deliver modern, fast and efficient intercity and commuter trains, including a brand new set of bi-mode intercity trains from 2022<\/a>.<\/p>\n

This will improve journeys sooner, without the need for wires and masts on the whole route, with further investment to ensure Sheffield is ready for HS2.<\/p>\n

On the Great Western Line, new Intercity Express trains will provide 40% more seats in the morning peak once the full fleet is in service.<\/p>\n

The first will enter service from this autumn.<\/p>\n

And when electrification to Cardiff is complete, journey times between Swansea and London will be about 15 minutes shorter.<\/p>\n

Next year, Crossrail opens.<\/p>\n

Thameslink will be complete.<\/p>\n

HS2 construction gets going in earnest.<\/p>\n

We\u2019ll carry on improving services all around the country, from the Lake District to East Anglia.<\/p>\n

And because we can never return to the \u2018stop-start-and-stop-again\u2019 planning of the past, it\u2019s vital we carry forward the next generation of rail projects.<\/p>\n

So work will continue on developing Northern Powerhouse Rail and Crossrail 2.<\/p>\n

Over the next few years, we\u2019ll see the benefits of a more mature franchising model.<\/p>\n

And record investment in the infrastructure.<\/p>\n

Really making a difference to passengers\u2019 daily journeys.<\/p>\n

But I also want to see radical improvements to the way the railway is run.<\/p>\n

I\u2019ve been clear that there was a flaw in the privatisation process.<\/p>\n

The separation of track and train into different businesses was a mistake.<\/p>\n

It pushed up the cost of running the railway.<\/p>\n

Both for taxpayers and passengers.<\/p>\n

And it slowed down decision making about how to tackle the looming capacity crisis.<\/p>\n

Greater fragmentation meant the industry lacked clarity and accountability.<\/p>\n

And projects were continually hampered by complex contractual disagreements.<\/p>\n

Yes, we\u2019ve seen some improvements recently.<\/p>\n

Closer, joined-up working on the Southern network.<\/p>\n

The alliance structures built in to franchises like South Western and Great Western.<\/p>\n

Better performance on the West Coast Main Line, partly because of greater co-operation.<\/p>\n

And the launch of East West Rail to restart services between Oxford and Cambridge.<\/p>\n

But this is only the start.<\/p>\n

We need a lot more integration throughout the industry.<\/p>\n

Network Rail, rolling stock companies, and train operators \u2014 working as one team.<\/p>\n

Making infrastructure and performance improvements as part of a relentless drive to boost customer service.<\/p>\n

So I will continue incentivising the industry to form joint track and train teams as new franchises are appointed.<\/p>\n

Not as isolated examples.<\/p>\n

But across the railway.<\/p>\n

I expect the South Eastern and East Midlands franchises to have aligned management, and integrated operational teams between train and infrastructure.<\/p>\n

This is a strategy that will not only underpin franchising.<\/p>\n

But also Network Rail\u2019s devolution plan.<\/p>\n

Putting more power and accountability into its route businesses.<\/p>\n

Allowing them to form more effective partnerships with local train operators.<\/p>\n

A joint board now supervises performance on the western route, and a new one for east coast was announced recently.<\/p>\n

Supervisory boards for all routes should follow by next spring.<\/p>\n

This will mean services are run predominantly by local teams of people whose whole focus is the smooth running of the timetable.<\/p>\n

Whether it\u2019s planning essential repairs.<\/p>\n

Responding to problems on the line.<\/p>\n

Or communicating with passengers.<\/p>\n

They don\u2019t have to work for the same company or organisation.<\/p>\n

But they do have to work as one team, jointly responsible for achieving shared objectives.<\/p>\n

For me, this goes to the heart of the debate on the structure of the industry.<\/p>\n

It\u2019s not about ideology.<\/p>\n

It\u2019s about common sense.<\/p>\n

If the success of the railway since privatisation can be measured in the number of people using the network, increased investment, greater efficiency and improved safety.<\/p>\n

Then success in the future will come from reorganising the way services are run.<\/p>\n

Simpler, more accountable structures.<\/p>\n

Joined up management.<\/p>\n

Using all the skills and experience we have in spades across this great industry \u2014 to do one thing.<\/p>\n

Focus on the passenger \u2014 and leave a true legacy of success for the next generation.<\/p>\n

Thank you.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Secretary of State for Transport Chris Grayling discusses challenges facing a growing railway at the Transport Times UK Rail Summit.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"_links":{"self":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/84289"}],"collection":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=84289"}],"version-history":[{"count":0,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/84289\/revisions"}],"wp:attachment":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=84289"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=84289"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=84289"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}