A fascinating fight ahead for the East Midlands franchise

It’s easy to overlook the Midland Main Line as it sits between the two great Anglo-Scottish routes. That’s despite its southern terminus being St Pancras. This architectural masterpiece towers over the smaller King’s Cross and the large but unloved Euston.

However, East Midlands Trains doesn’t use Barlow’s splendid trainshed. Its services run into four platforms housed under the station’s northern extension built as part of High Speed 1’s restoration almost a decade ago.

Those four platforms are aided by a further two underground that handle the Midland Main Line’s suburban services as part of Thameslink.

Today’s Midland Main Line runs to Sheffield. Tracks continue on towards Leeds and point further north but for EMT as the route’s intercity operator, there’s little north of Sheffield save for the occasional extension to Leeds (where it has a depot) and a summer service to Scarborough.
Look at the franchise map and it appears as a ’T’ with a crossbar of east-west services from Crewe towards Skegness, Liverpool towards Norwich and Nottingham towards Cleethorpes. The descender heads towards St Pancras while there’s also a Doncaster-Lincoln-Sleaford- Peterborough service.

Next year should see a competition to decide which operator will be running the trains from July 2018. Currently it’s Stagecoach which took over from National Express in 2007 (when the franchise was altered to include some routes previously operated by Central Trains). Its mix of intercity, regional and rural lines will, the Department for Transport surely hopes, attract more than the two bidders seen in recent competitions. Stagecoach rarely likes losing competitions and must be considered a likely bidder. First too, with the traffic mix not unlike its Great Western operation. Arriva has experience in the area as well (it changed the name of one of its subsidiaries to Arriva Rail East Midlands on November 23) and National Express might be tempted to take more interest in Britain than it has recently.

Bidders will be chasing a franchise slightly different from today’s. The new East Midlands franchise will take over from Northern services between Cleethorpes and Barton-on-Humber while the DfT is yet to decide whether to switch Nottingham-Liverpool services to TransPennine Express.
These changes aside, the existing EMT franchise brings in annual revenue of £407m from 470 daily train using a fleet of 94 units, according to the DfT’s prospectus. It has 2,095 employees and delivers 26 million passenger journeys to an overall satisfaction score of 86%.

Since 2011/12, the farebox has grown 5.3% annually while passenger journeys have climbed 2.4% on the same basis. This means that the operator is extracting more from passengers for each journey. These figures come from DfT, EMT’s own accounts record an increase in passenger revenue of 2.0% for 2015/16, compared with 11.0% for the year before, showing a sharp slowdown in growth.

Of the current franchise’s operating costs, DfT says that 39% (£124m) goes on costs such as fuel, rolling stock maintenance, stations and administration; 30% (£97m) on staff, 21% (£66m) on acccess charges and 10% (£31m) on rolling stock leasing charges. EMT’s accounts show that it paid DfT £141m in premium (down from £232m the year before) and received £67m in revenue support (£155m in 2014/15). Net payments to government were £74m in 2015/16 and £77m in 2014/15.
EMT recorded turnover of £392m and an operating profit of £31.9m, equating to an operating margin of 8.1% (2014/15: 2.7%), much higher than the more usual 2-3% for train operators (and accounted for the the fall in premium, with EMT not including revenue support in its turnover figure).

The new operator will be looking to increase revenue. DfT will be looking for higher premium payments and is unlikely to permit such a high profit margin. EMT’s successor will need to cut journey times and increase capacity and travel opportunities between cities. The DfT specifically wants to see the new operator support the government’s plan to make the Midlands region an “engine for growth” and support tourism, with the prospectus mentioning the need to work collaboratively with heritage railways.

Rolling stock will be a challenge. EMT uses HSTs and Class 222 diesel-electric units for intercity services and a mix of second-generation diesel units for regional and local journeys. Before Network Rail’s electrification plans stuttered, there was a chance to switch London-Sheffield journeys to electric trains. Now NR only talks about electric trains as far as Corby, just 30 miles north of Bedford where the wires stop today. Hybrid electro-diesels, such as Hitachi’s Class 800, are a possibility but for the cost, bidders might opt for straight diesel.

EMT has no Pacers to ditch but its Class 153s and 156s date from the 1980s with its Class 158s slightly newer. With Northern ordering modern DMUs and newer types, such as Class 170s, becoming available from other franchise, there might be a chance to cut the average age of EMT’s fleet from 24 years.

NR might only talk of Corby but the East Midlands Council retain wider ambition. The councils talk of wires to Sheffield and Corby. They want London-Nottingham in under 90 minutes (it’s 100 minutes today) and London-Leicester in under 60 (it’s 62 today). They add a ‘Regional Express Network’ into the mix in DfT’s prospectus, based around hubs at Derby, Leicester, Lincoln and Nottingham and talk about links to Birmingham, Cambridge, Leeds, Liverpool and Manchester.

A new franchise provides a chance to emerge from the shadows of the East and West Coast Main Lines. We’ll know what’s planned in March 2018 when DfT expects to announce the winner.

This article first appeared in RAIL 815, published December 7 2016.

Great Western fallout: repercussions further down the line

It started in the 1960s within the US defence industry. It’s just reaching Network Rail now, five decades later.

What is it? Earned value management, usually abbreviated to EVM. It’s a technique used in project management that combines measures of spending and delivery to assess progress. It does more than measure time and money, recognising that neither gives an accurate picture of a project.

Say you’re building a house. You’re halfway through the project in time terms and you’ve spent have the budget. All sounds well. But you’ve yet to build the foundations. All is not well.

Of the Great Western Route Modernisation, the National Audit Office says in its recent report: “Management information has not been of the standard we have seen on other major programmes. The information that the programme board has received about costs and schedule for the infrastructure programme has not been based on an earned value management approach, in line with best practice for managing major programmes. It has not fully informed the board about progress with delivery and has made it difficult to monitor risks.”

The NAO uses moderate language but its report is more powerful for that. The overall message is damning for Network Rail. It’s Great Western project should be a case study in project management textbooks as an example of how not to embark on complex projects. It doesn’t help that the Department for Transport kept changing its mind and that it was equally inept at managing the overall programme that also included procuring the trains to use NR’s new overhead lines and the franchise that would operate those trains.

The projects that formed the programme started in 2007 when DfT decided to procure new high-speed diesel trains. Then it changed its mind to announce electrification in 2009. It took DfT to December 2012 before it issued an early outline of Great Western and Welsh electrification works (the government and minister had changed in the interim, inevitably leading to reviews). Just a month later, in January 2013, Network Rail confirmed in its strategic business plan for 2014-2019 (Control Period 5) that it expected to be able to complete the work the DfT wanted. It took another 18 months to agree what that work was in detail and over two years for DfT to produce a business case for it.

It wasn’t until January 2016 that the DfT appointed a ‘senior responsible officer’ (SRO) to oversee the programme. (Back in 2012, a review into the DfT’s failed West Coast franchise competition criticised the department for not having a clear, single SRO with overall responsibility.) Bear in mind that DfT had wanted electric trains running this year and you can see how late it had left the situation before taking any form of control.

Meanwhile, NR was struggling too. A combination of staff shortages in critical areas such as signalling design and testing and other projects running late was putting pressure on its GW plans. Electrification demands upgraded signalling, which is immunised against the effects of overhead lines. It needs to be in place before the wires. So when NR’s Swindon-Bristol Parkway signalling project slipped into 2107 it was obvious NR would miss the date for electric trains to be running.

Bristol’s resignalling has also slipped. It should have been done by 2015 to allow electric trains to run from 2016. It’s now not expected to be finished until 2019. The NAO’s report could only say that the completion date for electrification into Bristol Temple Meads was “to be determined; expected by March 2024”.

Rail Minister Paul Maynard pre-empted the NAO when he announced the day before it published its report that he had suspended electrification into Temple Meads (and to Oxford, Henley and Windsor). He used the word ‘defer’ but his statement is notable for not even hinting at a revised date. I suspect that Temple Meads will not see electric trains for many years, if at all. Instead, the hybrid electro-diesel trains serving it will run on diesel power for their final few miles into Temple Meads.

The combination of DfT’s inept management and NR’s shoddy delivery has likely put paid to further electrification projects. Maynard’s statement came on November 8. The evening before he had spoken in a House of Commons debate about Midland Main Line electrification. He talked about wires to Corby and Kettering to be used by 12-car commuter trains to and from London.

Pushed to commit to electrifying to Sheffield in stages by 2023, the minister simply said: “I will merely repeat what I have just said, which is that we are committed to the development of the ongoing electrification programme.”

Yet the 2023 date was the one contained in NR Chairman Sir Peter Hendy’s letter in September 2015 to the transport secretary that led to DfT’s decision to ‘unpause’ the MML project. Hendy said no more than “this electrification can proceed”. He provided no evidence in his letter to justify this assertion. Over a year later, there’s still no evidence that NR can deliver MML, plenty in the NAO’s report to suggest it can’t and little in Maynard’s speech to suggest it will have to.

Doubtless NR is learning lessons. There are plenty in the NAO’s report. NR invested in a factory train to speed the erection of masts. It bought the train before it realised it would need deeper mast foundations. This meant the train had to be modified. It expected the train to deliver 18 pile foundation per shift. It now plans on eight.

Designers were working to decide mast types and locations before they had details of what types of mast they could use, which led to revised work. Design work started in June 2013 but the catalogue of parts was not fully available until May 2015.

The NAO found that NR had no controlling mind on the project, no integrated programme, no independent challenge teams and no consolidated view of the track access it would need to complete its work.

Take a trip along the Great Western Main Line and you’ll see plenty of wiring and masts between Airport Junction and Didcot. Indeed, NR has finally completed the section here needed to allow Hitachi to test its IEP trains (it should have delivered this test section by September 2015).

West of Didcot the situation is very different. There are pockets of masts and foundations. Any idea you might have that the factory train would start at A and work steadily towards B leaving a trail of masts in its wake would be mistaken. NR appears to have dug a few foundations here and a few there with no apparent rhyme or reason.

It’s been a grim few weeks for NR. Parliament’s Transport Select Committee tore into its Digital Railway plans, the Scottish government called for devolved control amid delayed and over-budget projects, a UK minster suspended parts of its headline electrification project and then the NAO clinically dismembered the way it had been managing this project.

NR has a hugely complex task in operating, maintaining, renewing and enhancing Britain’s rail network. It’s always in the public eye and has owners adept at changing their minds. It needs a top team with an intense focus on delivery. In this context, Chief Executive Mark Carne’s fixation with the Digital Railway is a distraction. Had he concentrated on delivering CP5’s very demanding programme, rather than chasing his chimera, his time might not be littered with broken promises.

Hendy and Carne have recently been talking about the need to attract private investment into the railways because both recognise that government will not keep pouring money in. With a record like Great Western Route Modernisation, they face an uphill battle.

This article first appeared in RAIL 814, published November 23 2016.

MPs sceptical about Network Rail’s digital railway plans

The message to Network Rail was clear: “Over ambitious claims for improvements in capacity must be met with scepticism, and Network Rail should be very cautious about how it uses the 40% claim.”

So say MPs in the latest report of the House of Commons Transport Select Committee. The claim comes from Network Rail’s Digital Railway publicity and is based on its study of the South West Main Line from Waterloo. It reckons that a combination of ERTMS Level 3 signalling and automatic train operation (ATO) could permit 34 trains an hour between Waterloo and Woking, up from 28 today.

ERTMS (often also known as ETCS) Level 3 signalling is not available. It is not developed to the stage where it could be installed any time soon. While NR Chief Executive Mark Carne told MPs that NR did not claim the 40% was universal, the company’s Digital Railway publicity does not contain this caveat. It talks about unlocking “up to 40% more capacity from the existing urban network” by delivering ETCS, traffic management and ATO.

The publicity claims that ETCS comes with cost benefits because it removes “track circuits which fail often and are expensive to maintain”. It’s true that with Level 3 there are no track circuits (or other detection systems fixed to the track such as axle counters). But Level 3 does not exist.

Network Rail has produced publicity brochures to convince the railway and government to buy a product that cannot be bought. ERTMS Level 3 might well be developed to a stage where it can be installed at some point in the future but no-one appears to know when.

In the meantime, Level 2 is at a stage where it can be installed. It provides in-cab signalling, removing the need for lineside ‘lights on sticks’. It uses fixed-blocks with only one train allowed in a block of line at any one time. This is a principle established by the Victorians. To have more capacity you need more blocks, shorter blocks. This needs more track circuits. In conventional signalling it would need more signals too but this need is removed with in-cab signalling.

The back of NR’s brochure contains an infographic that explains the benefits that Digital Railway will bring to the lines from Waterloo – “Up to 11 extra trains per hour” – but it’s worth reading the Wessex Route Study from which these claims are drawn. Here, NR says: “In terms of ETCS and modern signalling operation no specific work has been carried out as part of this Route Study.” That casts doubt on the thoroughness of NR’s claims.

NR’s brochures and claims have not convinced the Transport Committee: “Rather than claims of up to 40% we expect to see a more sophisticated assessment of the likely capacity gains that look at different investment scenarios and their associated costs, benefits and risks. It is important that the Department for Transport and Network Rail make a realistic assessment of how much extra capacity each system within the Digital Railway programme can deliver to meet growing demand.”

The MPs recommend: “Projections based on ETCS Level 3 should only be considered valid when the Level 3 specification is ready for deployment, and Network Rail should avoid using such projections, or the promise of a ‘moving block’ signalling system, in its publicity until such technology is ready to be deployed.”

They are right because the railway has been here before. Railtrack planned its West Coast Route Modernisation in the late-1990s on the basis of moving block Level 3 signalling that would give a 140mph railway. It sold this claim to government and the newly privatised West Coast operator, Virgin Trains, procured 140mph trains. Railtrack’s plan collapsed. It was forced to revert to conventional signalling and trains today run at only 125mph. The theory of Level 3 signalling could be explained as convincingly in the 1990s as it can today. But it didn’t exist then and it still doesn’t exist today.

Network Rail’s had a few collapsed plans along its Digital Railway road. It published an ETCS roll-out plan that assigned dates to different lines then ditched it because Chief Executive Mark Carne wanted it all done by 2029. This proved impossible and NR changed the date to 50 years hence. NR was left without a coherent plan. Earlier this year, it announced that the lines from Norwich to Great Yarmouth and Lowestoft would have ETCS in use by December 2018. A few months later, NR ditched this plan.

NR issued a European procurement notice for a train management system in 2009 and cancelled this project in 2015. It promised an outline business case for Digital Railway by September but now says it will be the end of the year.

Yet there is more to digital railways than signalling. Much of it surrounds the collection, analysis and use of data. Go to Euston station and you’ll see the departures board displays icons that show how many seats are reserved in each Virgin Trains coach. The next stage would be for counting equipment on each coach to feed information to allow similar information to be displayed at each station along a train’s route. It could be displayed on passengers’ smartphones.

The same could be done for commuter trains with counting equipment providing live information about loading levels. A passenger would know where to stand on the platform to board the coach with the most space.

If staff in control offices know which trains are busy and which are not, they can make decisions in the best interests of more passengers. In recovering from an incident, controllers would know which busy trains should not be terminated short of their destination and which quiet ones perhaps could be.

GPS data can monitor train performance in real-time which can be fed into the timetabling process so that planners have a better idea of how long in practice it takes for a train to pass from A to B. They can see more easily where a dwell time of 30 seconds is sufficient at one station but not at another. The result should be more accurate timetables that can be consistently delivered.

In many ways, this is the real digital railway. It’s not one that NR’s publicity talks about. It’s one that the passenger operators pursue for the benefit of their customers. It’s the one the railway should concentrate on. Not least because NR is running out of money.

This article first appeared in RAIL 813, published November 9 2016.

Still time to revise plans and resolve the Euston dilemma

Euston. What to do about Euston? Recent years have seen various proposals to rebuild the station for High Speed 2. The latest came a little over a year ago when HS2 revealed that it had ditched its ‘big bang’ approach to rebuilding its planned southern terminus in favour of a phased approach that would add £250 million to its bill. At the same time, Network Rail said it was “at a very early stage of looking at options for potential redevelopment of the current station at Euston”. Since then, there’s been silence from the national network owner.

Meanwhile, Camden Council has continued to argue for a joined-up approach that accounts for HS2 and ordinary services and doesn’t wreak havoc on local streets and residents. HS2 reckons the cost of rebuilding Euston will be £2.25 billion. Construction will take place in two phases, the first over 2017-2026 and the second over 2027-2033. That’s 16 years. HS2 estimate that construction could generate 367,000 lorry loads of materials with daily lorry movements reaching peaks of 700 in 2022.

Using rail could cut the total number of trips by 60,000 and bring that peak down by 130 lorries a day. However, HS2 admits that it’s not possible to guarantee the rail paths to and from the station that it would need.

There’s no easy way to shift the volume of materials that HS2 expects to generate. They don’t just come from rebuilding the station but also from the major work HS2 plans to Euston’s approaches. That work is every bit as massive as the deep, walled cutting built back when picks and shovels were the tools of choice for a railway construction company.

Today that cutting is lined with some rather elegant houses through Park Village. Tomorrow those houses will be facing a construction site that will doubtless fascinate a civil engineer but may do less for a local resident.

HS2 is ambitious. It plans to bring its tunnel from Old Oak Common as close as possible to Euston. That means portals at the top of Camden Bank, just a mile from the station. This differs from the way SNCF built its high-speed lines into Paris. Catch a Eurostar into Gare du Nord and you’ll clattter onto classic tracks in the suburbs for the final run to your terminus. SNCF took the easier and cheaper option. HS2 is determined to deliver the best that money can possibly buy.

There is an alternative. Its promoters claim that their Euston Express will be quicker to build (taking only nine years), cheaper (saving £1.8bn from HS2’s estimate of £5.6bn for the work all the way to Old Oak Common) and provide a new station for HS2 and ordinary passengers.

The House of Lords committee examining the bill to grant permission to build HS2 heard more details on October 11. In essence, Euston Express would create a station no wider than today’s with 11 platforms for HS2 and 12 for West Coast Main Line. The platforms would be made long enough by extending them southwards towards Euston Road, taking the space used today by office blocks, including the ‘Black Tower’ – the old Railtrack House.

Shifting the platforms southwards saves a few minutes for passengers walking from their HS2 train to London Underground’s station. According to Euston Express, this saving more than counters the loss of time caused by running on classic lines from Queen’s Park.

The new station would have a deck above the platforms for passengers and underpasses beneath them to give access to London Underground and Crossrail 2 (should that be built). The tunnel from Old Oak Common would emerge a little west of Queen’s Park station (making it around one-third of the length of HS2’s proposed tunnel).

From there three pairs of lines would serve Euston: one pair for HS2, one for WCML fast and one for WCML slow and Overground. Euston Express proposes building flying junctions between its revised fast and slow lines but it claims that they will be nothing as compared with HS2’s Park Village diveunder that descends 25 metres underground.

Euston Express will need to rebore the single-track tunnels used today by London Overground’s DC services to make them suitable to AC electrification so they can carry outer-suburban and freight traffic. Its plans will need to acquire some land to create space for flying junctions (for example the builder’s yard that sits between the DC and slow lines west of Queen’s Park) but with Euston station no wider than it is today, there should not be the need to turf residents from their homes.

The Euston Express plans would force another change on HS2. They would restrict trains to be ‘classic-compatible’ throughout. With Euston approached on ordinary lines for roughly the final four miles, HS2 could not run trains build to the bigger European gauge. HS2 always planned to run classic-compatible trains for its services that extended beyond the confines of its dedicated network, those running on towards Scotland from the Manchester or Leeds branches of the eventual Y network.

HS2 originally planned to procure 16 trains to European gauge and 45 to classic UK gauge. Having also changed the route through South Yorkshire to run through Sheffield Midland station (creating a loop from the main route), HS2 will need to use classic-compatible sets on any services that call at Sheffield so perhaps it’s time to ditch the 16 wide trains and just buy a single fleet sized to fit Britain (as Eurostar’s fleet does). Perhaps it already has, for Euston Express told the House of Lords that the HS2 described the role of its rolling stock procurement officer in a job ad as “a single procurement of a single fleet of classic compatible trains with a capital value of around £2bn”.

That’s not to say that HS2 should not build its network to European gauge. Current regulations insist that it is. There’s also sense in doing so. If HS2 makes provision at Old Oak Common for a tunnelled link to HS1, Britain could see through trains to the the Continent from Birmingham, Manchester and Leeds, calling at Old Oak Common and Stratford for connections into Central London. These would not serve Euston but even today there are TGVs in France that go round Paris rather than into it.

HS2 has shown itself capable of changing its plans. It shifted position on Sheffield and South Yorkshire, it’s changed its mind about Crewe. With Network Rail seemingly no nearer reaching a conclusion for classic services, perhaps it’s time for HS2 to think again. Banish the blight over Camden. Cut the chaos at Euston.

This article first appeared in RAIL 812, published on October 26 2016.