‘Work fast’ warning from rail firm boss

Jun 7 2008 by William Green, The Journal

VITAL upgrades to the congested East Coast train route linking the region with London and Scotland must be "done soon", a rail boss has warned.

David Franks, managing director of rail operator National Express East Coast, has welcomed plans to improve overhead power lines, a key cause of delays, and address capacity problems.

But he stressed the work must be delivered soon to benefit passengers after regulators signalled infrastructure firm Network Rail could go ahead but should spend less on schemes up to March 2014.

The Office of Rail Regulation (ORR) this week published draft proposals requiring Network Rail to improve efficiency and train punctuality within a financial framework more than £3bn less than the £26.5bn requested.

The requirement means Network Rail has been given draft approval to spend £30m rather than £35m upgrading overhead power lines on the East Coast route.

And £233m instead of £248m could be spent on a diversionary route between Peterborough and Doncaster, allowing freight trains to move off the intercity line for faster passenger trains. A scheme around Hertford has been rejected. But £175m will be spent upgrading King’s Cross station in London, and £260m set aside to prepare the East Coast and Great Western Main Lines for a new intercity trains with testing due to begin in 2012 before services start in 2016.

Last night, Network Rail insisted it needs to be allowed to spend more money to end "stop start" investment, warning it does not yet know what the impact will be of lower spending.

A spokesman added it would be pressing the case to spend more money – made up of Government subsidy and charges to train firms – ahead of a final ORR decision in October.

He added that the firm’s after-tax profit of £1.2bn last year was taken in account in calculating how much it could spend.

Mr Franks welcomed the announcement, adding: "Network Rail’s efficiency targets look challenging. They will need to do things differently to deliver the step-change in improvements required.

"In addition to the inclusion of a number of much-needed schemes to boost capacity on the busy East Coast Main Line, we understand that £30m is to be spent on improved maintenance of the overhead power lines, one of the biggest causes of delays to our services.

"This is a positive step in the right direction, but the work needs to be done soon to deliver early benefits for passengers."

Bill Emery, ORR chief executive, said Network Rail could make "significantly greater efficiency improvements" which were challenging but achievable.

The Department for Transport welcomed the ORR’s findings, adding it and Network Rail should work together to protect the interests of passengers and freight users.