Partnership railway s transformation in numbers Dataset on rail industry finances, performance and investment since 1997-98 December 2017
The economic benefits of rail The railway is vital to the economic health of the country and is a significant industrial sector in its own right: Each year the rail industry and its supply chain contributes up to 10.4bn in GVA Britain s railway provides benefits to the UK economy of up to 31bn a year, including: benefits to customers as well as companies using freight; reduction of congestion on roads; and wider economic impacts through closer links between businesses and communities. Investment from both public and private sectors through the partnership railway will secure almost 85bn of additional economic benefits to the country The railway and its supply chain employ 240,000 people with a further 100,000 job opportunities across the country anticipated by 2027 The industry has a target to create 20,000 new apprenticeships by 2020, 10,000 of whom will be new recruits from more diverse backgrounds Sources: Oxera, 2017, How does rail contribute to the UK economy? Oxera, 2017, Investment in rail: the economic benefits Rail Delivery Group, 2017, In Partnership for Britain s Prosperity 3
Rail s transformation in numbers Highlights from the RDG dataset: Sustained rise in passenger journeys and freight carried Train companies making record contributions to government - industry income covers day-to-day costs and supports investment Taxpayers paying smaller share of rail costs and customers a larger share the result of policy of successive governments Government support to the railway is at its lowest level since 2002-03 and private sector investment at its highest level since being measured Safety, satisfaction, number of services and fleet size have improved significantly Delay incidents down but more congested network means worse impact on customers Government spending funds extra capital expenditure to boost capacity and improve services 4
Partnership railway - finances snapshot
bn Analysis of Revenues and Costs The 10.5bn of revenue generated by the rail industry now more than covers the dayto-day running costs of the railway ( 10.3bn) 16 Industry financials 2015-16 ( bn) 14 12 Day to Day Running Costs 10 Passenger income, 10.0 TOC operating costs, 7.8 8 6 4 Other income, 0.5 Industry Generated Income NR operating and maintenance expenditure, 2.5 2 0 Government funding, 3.7 Income NR capital and financing costs, 3.9 Costs Note: Day-to-day running costs excludes renewals and enhancements costs Source: ORR GB rail industry financial information 2015-16 6
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 billons at 2016-17 prices Government Support to the Rail Industry Train operating companies in 2016-17 paid central government a net total of 0.8bn, whereas in 2002-03 they received 1.4bn from central government in real terms. Total Government support to the industry is at the lowest level since 2002-03. Grant to Network Rail peaked in 2006-07 ( 4.3bn), in 2015-16 this was 4.1bn Government support to the rail industry since 2002-03 (real terms) 8 7 6 5 4 3 2 1 0-1 -2 Net payments to/from TOCs PTE grants (for national rail services) Grant to Network Rail Total Gov't support Other elements of Gov't support Note: This data is presented from 2002-03 due to a change made to the allocation of funding for infrastructure from that year Note: Other elements of Government support comprises central government expenditure on major projects, support to arms length bodies including British Transport Police and Transport Focus, a grant to British Rail to finance its residual activities, and other adhoc rail projects. Source: ORR data portal 7
1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 % operating margins Train Operating Company Operating Margins Operating margins as a proportion of revenue are lower than when franchising began 10% TOC operating margins 8% 6% 4% 2% 3.6%3.5% 3.5% 3.0% 2.6% 4.9% 5.2% 4.1% 4.2% 4.1% 4.2% 3.7% 3.0%3.1%3.0% 2.9%2.9% 2.4%2.3% 0% Note that operating margin (gross of tax) is used as profit margin (net of tax) is not available for the full time series. Source: Rail Industry Monitor, Statutory Accounts and ORR GB rail industry financial information 2015-16 8
Passenger Share of Rail Income Passenger share of total rail industry income has increased from 57% in 2010-11 to 70% in 2015-16, a slight fall from 2014-15 In 2010-11, passengers contributed 6.6bn compared to 10.0bn in 2015-16. Over the same period the average price paid per journey in real terms reduced from 5.66 to 5.54 75% 70% Passenger income as a share of rail industry income 68% 71% 70% 65% 62% 60% 55% 57% 58% 50% 45% 40% 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 Note: Rail industry income excludes DfT loans to Network Rail Source: ORR GB rail industry financial information 2015-16 and previous releases 9
Partnership railway - delivering a vital and growing public service
1950-51 1955-56 1960-61 1965-66 1970-71 1975-76 1980-81 1985-86 1990-91 1995-96 2000-01 2005-06 2010-11 2015-16 Passenger journeys (millons) Journey Growth Passenger numbers have more than doubled since 1997-98, the first full year of rail franchising Average annual journey growth has been 3.84%, compared to 0.5% in the 18yrs prior Rail journeys per head of population have increased by 82% 2,000.0 1,800.0 1,600.0 1,400.0 1,200.0 1,000.0 800.0 600.0 400.0 200.0 0.0 Passenger journeys since 1950 Passenger Journey Growth Period CAGR 1 65 years to 2016-17 0.79% 1977-78 to 1996-97 0.53% 1997-98 to 2016-17 3.84% 1 Compound Annual Growth Rate Rail journeys per head of population Year Annual journeys per capita 1981-82 13.12 1997-98 14.93 2016-17 27.15 Source: ORR data portal 11
Thousand Passenger Km per Km of track Rail Volume Growth vs European Peers Distance travelled by passengers per km of track has nearly doubled since 1997, outperforming growth seen from many of its European peers 6,000 Thousand Passenger km per km of track by European Peers (1997 vs 2014) Growth in Thousand passenger km per km of track (1997 v 2014) 5,000 UK 94% 4,000 SE FR 57% 73% 3,000 DE 26% 2,000 ES 14% 1,000 0 NL UK IT FR DE ES SE 1997 2014 NL IT 3% 8% 0 0.5 1 Source: Eurostat database 12
% Movement Passenger Journeys vs GDP Growth Since 1997-98, journey growth has been more than double GDP growth 120% 100% Rail journey and GDP growth GDP Growth Journey Growth 105% 80% 60% 56% 40% 44% 20% 14% 0% 1977-78 - 1996-97 1997-98 - 2016-17 Source: ORR data portal and Cebr Economic Forecast 13
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Change in modal share (1997 = 0%) Modal Change Shift to Rail Since 1997, National Rail has increased its modal share of all travel by 3.4%, while domestic air travel has remained broadly flat and road travel has fallen by 4.2% Passenger km by road have increased by 22bn since 1997 to 707bn passenger km with National Rail increasing by 30bn to 65bn 4.0% Change in Transport modal share since 1997 3.0% 2.0% 1.0% 0.0% -1.0% -2.0% -3.0% -4.0% -5.0% Air (Domestic) Road National Rail Source: Department for Transport Statistics and ORR data portal 14
Growth in Rail European Comparisons Growth in UK rail s share of passenger transport has far outstripped other European countries with only Sweden seeing similar growth Spain, France and the Netherlands have all seen around 1 percentage point increase in rail s modal share since 2000 whereas UK rail s share has increased by 3.4 percentage points European passenger transport modal share between 2000 and 2015 Train Bus Car United Kingdom Sweden Spain France Netherlands Germany Italy -3.0-2.0-1.0 0.0 1.0 2.0 3.0 4.0 Percentage point change, 2000 to 2015 Source: Eurostat database 15
Index (2002 = 100) Mode of Transport to Work National Rail as the chosen mode of transport to work has increased by 73% since 2002, compared to a 8% increase in car commuting, a 49% increase in other types of rail and an overall increase of 12% 180 160 Mode of transport to work Car National rail Other rail (underground, light railway systems and trams) Total travelling to work 140 120 100 80 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Source: Department for Transport Statistics and ORR data portal. (N.B. Oldest available data is 2002) 16
Index (2002 = 100) Index (2002 = 100) Trips per person all modes vs rail Whereas trends across all modes for trips per person for all journey purposes have fallen by 13% since 2002, trips per person by rail has climbed by close to 60% Trips Per Person Per Year All Modes (Excluding Short Walks) Trips per person by rail (NTS) 110 Commuting Business Leisure 190 Commuting and business Leisure 105 170 100 95 150 90 130 85 110 80 75 90 70 2002 2004 2006 2008 2010 2012 2014 2016 70 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Source: Department for Transport Statistics, National Travel Survey Source: Department for Transport Statistics, National Travel Survey 17
Journey Growth in London & South East Journey growth is not just due to increased demand from commuters - since 1997-98 total rail journeys in London and the South East have increased by more than rail commuting into Central London Rail journeys have also increased faster than journeys on the London Underground Growth in rail journeys versus growth in commuter numbers Total rail commuters into Central London Total LSE rail journeys Index 100= 1997-98 220 200 180 160 140 120 Source: ORR data portal, LUL Statutory Accounts 100 80 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 Journey growth - Rail versus London Underground 1997-98 to 2016-17 Journey growth London Underground 65.6% London and South East rail 106.0% Source: ORR data portal, LUL Statutory Accounts 18
1953 1955 1957 1959 1961 1963 1965 1967 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987-88 1989-90 1991-92 1993-94 1995-96 1997-98 1999-00 2001-02 2003-04 2005-06 2007-08 2009-10 2011-12 2013-14 2015-16 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 Billion tonne kilometres Bn Tonne Km Rail Freight Growth in Goods Carried Before 1997-98, rail freight was in steady decline (down 59% between 1953 and 1996-97) It has since stabilised with growth in 13 of the 19 years since then A sharp fall in coal moved (from 6.5 to 1.4bn tonne kilometres) almost single-handedly drove the decline between 2014-15 and 2016-17 Domestic intermodal carried has increased by 93% since 1998-99 40 35 30 Freight carried 25.0 Freight Carried by Commodity Coal Metals Construction Oil and petroleum International Domestic intermodal Other 25 20.0 20 15 10 5 15.0 10.0 5.0 0 0.0 Source: ORR data portal Source: ORR data portal 19
Grwoth since 1997-98 Freight Growth vs European Peers Of comparable European railways, UK freight mode share growth, at 3.0% since 1997-98, is behind only Italy and Germany (which has a more favorable regulatory environment where lorries are not permitted on roads on Sundays) Rail freight modal share growth 6% 4% 2% 3.0% 5.3% 4.3% 2.2% 0% -2% -4% -3.3% -3.3% -4.1% -6% 1998 to 2015 United Kingdom Germany Italy Netherlands Sweden Spain France Source: Eurostat database 20
Employment in Rail The rail industry and its supply chain employ up to 240,000 people The number of people employed by train companies has increased by 47% since 1997/98 Train Company Employees and UK Workers Train Company Employees All UK Workers 50% 45% 47% 40% 35% 30% 25% 20% 20% 15% 10% 5% 0% 1997-98 - 2016-17 Source: ORR data portal and ONS 21
Sustainability CO 2 Emissions Already a relatively green mode of transport, CO 2 emissions generated per kilometre by passenger operators have decreased by 25% since 2005-06. Traction energy - CO 2 emissions per km 65.0 g/co2e per passenger km 60.0 55.0 g/co2e 50.0 45.0 40.0 35.0 30.0 25.0 2005-06 2006-07 2007-08 2008-09 2009-10 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 Source: ORR data portal 22
Partnership railway - successful for customers
1965-66 1967-68 1969-70 1971-72 1973-74 1975-76 1977-78 1979-80 1981-82 1983-84 1985-86 1987-88 1989-90 1991-92 1993-94 1995-96 1997-98 1999-00 2001-02 2003-04 2005-06 2007-08 2009-10 2011-12 2013-14 2015-16 DE SE IT ES FR NL UK Fatal train accidents Injuries and fatalities per billion passenger miles Safety Safety has continued to improve. The UK continues to be amongst the safest railways in Europe for customers and workforce. UK train accidents with passenger or workforce on-board fatalities since 1965-66 Train accidents with passenger and workforce fatalities 10 year moving average 6 All network Injuries and Fatalities Per Billion Passenger Miles (2014) 9 8 7 6 5 4 3 2 1 0 5 4 3 2 1 - Source: ORR data portal Source: Eurostat Note: Includes all recorded injuries and fatalities on the rail network including workforce and those at level crossings 24
1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 Index (1999/00 = 100) Average Journey Price vs Average Earnings Average earnings (+1.7%) have grown faster in real terms than the average price paid per journey (-5.6%) since 1999-2000 The average price paid per journey in real terms was 5.46 in 2016-17 In contrast, the average price paid per journey on a Season ticket has fallen in real terms by 15.1% since 1999-2000 and has been relatively flat since 2003-04 Average price per journey vs average earnings in real terms 120 115 110 Average earnings Average price paid per journey Average price paid per journey (season tickets) 105 100 95 90 85 80 Source: ORR data portal and Cebr Economic forecast Note 1999-00 is the first available year for Average Earnings within the Cebr Economic Forecast 25
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 Index: 2010/11 = 100 Average Price Per Passenger Mile The average price paid per passenger mile has increased by 1.8% in real terms since 2010-11 Prices paid for Anytime fares have increased over this period (by 2.9%), compared to -0.1%, 6.0% and 1.0% increases for Seasons, Off-Peak and Advance respectively as operators price tickets to encourage people to travel on cheaper Advance fares 110 108 106 104 102 100 98 96 Price paid per mile, 2016-17 prices Anytime Off-Peak Advance Seasons Total 94 Source: ORR data porta. Product level information only available from 2010-11 26
Average Journey Price vs Utility Prices Since 1998 average rail journey price (per km) has increased in real terms by 4.9%, whereas water prices increased by 14.9%, electricity prices are up 39.1% and gas prices up 84.6% Source: ONS RPI component data, ORR data portal 27
% of total passenger journeys % of total passenger revenue Journeys and Revenue by Ticket Type Nearly half of all passenger revenue now comes from cheaper time restricted tickets (Off-Peak, Super Off-Peak and Advance), up from 39% ten years ago, whilst the proportion of journeys on discounted tickets has also increased. Journeys on anytime travel and restricted times Revenue from anytime travel and restricted times 100% Anytime tickets Time restricted tickets 100% Anytime tickets Time restricted tickets 90% 80% 70% 31% 33% 90% 80% 70% 39% 46% 60% 60% 50% 50% 40% 30% 20% 69% 67% 40% 30% 20% 61% 54% 10% 10% 0% 2007-08 2016-17 0% 2007-08 2016-17 Source: LENNON data Source: LENNON data 28
A 99 S 00 A 00 S 01 A 01 S 02 A02 S 03 A 03 S 04 A 04 S 05 A 05 S 06 A 06 S 07 A 07 S 08 A 08 S 09 A 09 S 10 A 10 S 11 A 11 S 12 A 12 S 13 A 13 S 14 A 14 S 15 A 15 S 16 A 16 S 17 % Customer Satisfaction Since surveys began in 1999 customer satisfaction has increased from 76% to 83% The number of customers rating their journey as satisfied or good is now 1,437 million, up from 708m in 1999, an increase of 103% Customers' Overall Satisfaction % satisfied or good' % neither nor' % dissatisfied or poor' 1010 13 16 13 13 9 11 11 11 10 10 8 8 7 9 7 7 7 8 6 6 6 6 6 7 5 7 6 7 7 8 7 8 8 6 14 14 14 15 14 15 17 15 16 16 14 14 12 12 12 13 12 13 10 11 11 11 10 11 10 10 10 11 11 11 12 12 10 11 11 10 76 76 73 69 72 72 73 74 73 73 76 77 80 80 81 79 81 80 83 81 83 83 84 84 84 83 85 82 83 82 81 80 83 80 81 83 Annual-equivalent journeys in millions rated as "Good" or "Satisfied" 1999-2000 2016-17 Difference Journeys (m) 708 1,437 730 Source: ORR data portal and National Rail Passenger Survey Note: A Autumn, S - Spring Source: Network Rail Passenger Survey (started in Autumn 1999) 29
% % Customer Satisfaction Whilst overall satisfaction has increased from 76% to 83%, satisfaction with value for money has increased from 41% to 47% and those satisfied with service punctuality has increased by 3 percentage points. Customers' satisfaction with value for money % satisfied or good' % neither nor' % dissatisfied or poor' Customers' satisfaction with punctuality/reliability % satisfied or good' % neither nor' % dissatisfied or poor' 35 32 15 14 11 8 24 21 74 77 41 47 A 99 S 17 A 99 S 17 Note: A Autumn, S - Spring Source: Network Rail Passenger Survey (started in Autumn 1999) 30
% Customer Satisfaction vs European Peers 2013 Customers in the UK score rail services higher on a number of measures than do those in France, Germany, Spain and the Netherlands Overall, rail customers in the UK were more satisfied than those of any other major European railway 100 Customers' Satisfaction vs European Peers on Key Metrics UK France Germany Spain Netherlands 90 80 70 60 50 40 73 57 48 71 56 77 67 64 61 73 70 43 40 55 53 79 72 52 70 76 30 20 10 0 Punctuality / reliability Train frequency Information provision - during the journey Cleanliness and good maintenance of stations Source: EU Commission, 2013 (N.B. most recent survey) 31
Partnership railway - successful for taxpayers
Running Costs vs Industry Generated Revenues In 1997-98, the railway ran at a 2bn a year loss in terms of its day-to-day costs, in 2015-16 it more than covered those costs Running Costs vs Industry Generated Revenue 12 Industry-generated revenue Day-to-day industry running costs 10 10.5 10.3 8 7.3 bn 6 5.3 4 2 0 1997-98 2015-16 Note: Day-to-day running costs excludes renewals and enhancements costs Source: ORR GB rail industry financial information 2015-16 33
TOC payments to Government ( millions) Government funding share of rail income TOC Payments Vs Government Funding Net payments from Train Operating Companies to government increased to 843 million in real terms, while government funding as a share of total rail industry income remained at 26% in 2015-16 TOC payments to Government Vs Government funding 900 800 TOC payments to Government (2016-17 prices) Government funding share of rail industry income 834 843 50% 45% 700 600 500 400 300 34% 32% 32% 454 29% 26% 26% 40% 35% 30% 25% 20% 15% 200 147 10% 100 0 59 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 37 5% 0% Note: As per ORR' s GB rail industry financial information 2015-16, government loans to NR are not included Source: ORR data portal and ORR GB rail industry financial information 2015-16 (plus previous releases) 34
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 Cost per passenger mile Passenger Train Unit Costs Since 2010-11, passenger train company costs per passenger mile have declined by 8.8% in real terms TOC costs per passenger mile 27p 26p 25p 26p 25p 25p 25p 24p 23p 23p 23p 22p 21p 20p 19p 18p 17p 16p 15p Note: TOC costs cover staff costs, rolling stock costs and other costs (payments to Government are excluded) Source: ORR data portal 35
Infrastructure Costs per Train Mile Network Rail operating costs have fallen by 46% since 2003-04 This reduction is primarily due to the introduction of new technology, innovation and insourcing some key activities Cost ( ) 12 10 8 6 10.90 10.19 NR operating costs per train mile, 2014-15 prices 9.02 8.55 8.08 7.73 7.67 6.91 6.06 6.09 6.17 5.87 4 2 0 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 Source: Network Rail 36
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 Tonnes per freight train Freight Company Efficiency Freight efficiency has improved as longer and heavier freight trains are now in operation. The number of trains has fallen by 44% since 2002-03 but tonnes per freight train have increased by 63% 450 400 Productivity of freight services 350 300 250 200 150 100 50 0 Source: ORR data portal 37
Partnership railway connecting communities
More Services Investment means train companies are running 28% more services since 1997-98 Frequency of services on many key long distance routes has doubled Number of planned services per year (m) Source: Network Rail 1997-98 2016-17 % change 5.69 7.30 28% Trains per day Off-peak hourly frequency Year 1994 2016 % Change 1994 2016 % Change Manchester to London 17 47 176% 1 3 200% Leeds to Edinburgh 2 15 650% 0 1 n/a London to Norwich 19 36 89% 1 2 100% Leeds to London (1) 17 32 88% 1 2 100% London to Sheffield 15 31 107% 1 2 100% Bristol to London (2) 23 33 43% 1 2 100% Glasgow Queen Street to Edinburgh (3) 37 62 68% 2 4 100% Leeds to Huddersfield to Manchester (4) 48 81 69% 3 5 67% Cardiff to London 22 30 36% 1 2 100% Source: Network Rail (1) Virgin East Coast only; excludes East Midlands Trains (2) Bristol Temple Meads only ; excludes Bristol Parkway (3) Express services via Falkirk only; excludes other routes (4) Includes services to Manchester Victoria 39
Intensity of Network Usage 1.4 million more trains arrived as planned in 2016-17 compared to 1997-98, nearly 3,800 extra trains per day Until 2011-12 extra services were accommodated on the railway with increasing punctuality 8.0 Planned Train Services and Train Services Arriving On-Time Total Planned Trains Services Number of train services arriving as planned 7.5 7.0 Hatfield (Oct 2000) 6.5 6.0 5.5 5.0 4.5 4.0 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 Million train services Source: Network Rail and ORR data portal 40
1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 Moving Annual Average (MAA) % Punctuality of Passenger Services In 2016-17, 88.7% of train services (equivalent to 1.5bn customers) arrived as planned. This equates to 776 million more punctual journeys than in 1997-98 Punctuality on long distance and regional & Scottish services is static or improving slightly compared to 2012-13 but in London & South East, where the railway is most congested, it is declining Public Performance Measure by Operating Sector Long Distance Regional & Scot London & South East All Franchised Operators 95% 90% 85% 80% 75% 70% 65% 60% Source: ORR data portal Note: as planned relates to the PPM measure defined as arriving at the final destination within five minutes of the planned timetable for London and South East, Regional and Scotland operators, or within ten minutes for Long Distance operators). 41
2013-14 2014-15 2015-16 2016-17 Number of delay incidents (thousands) Number of Incidents and Delay Minutes Individual incidents of delay fell by 3% between 2013-14 and 2016-17 However, the impact of each delay has grown as the railway is more congested Number of Incidents and Delay Minutes per Incident 36.0 Incidents Delay Minutes per Incident 180 35.0 34.0 33.0 32.0 31.0 150 120 90 60 30 Delays mins per incident 30.0 0 Source: Network Rail 42
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 Delay mins (04/05 = 100) Freight Delays Delay minutes suffered by freight companies have reduced by 41.0% since 2004-05. Similarly, delay caused by freight companies has reduced by 43.3% The rail freight industry has undertaken many performance initiatives in recent years. Fewer and longer freight trains have also resulted in fewer delays to other services. 120.0 Delay minutes - Freight Operators Index - Delay Minutes Caused Index - Delay Minutes Suffered 100.0 80.0 60.0 40.0 20.0 0.0 Source: Network Rail 43
Partnership railway investing to improve
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Orders Placed Rolling Stock Passenger Services Compared to 1996-97 there are 2,500 more carriages on the railway, a 25% increase Britain s train fleet is increasing faster than at any time in recent decades. Rail companies have committed to running 5,700 new carriages by 2021 and in 2016 1,850 new carriages were ordered. Around half of these new vehicles will be built in Britain Change in total fleet size 1996-97 2015-16 Growth Total vehicles in passenger use 10,400 12,968 25% 2,000 Orders placed for mainline passenger rolling stock (i.e. excludes LUL/light rail) 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 Source: ORR data portal 45
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 Private investment ( Millions) Private Investment in Rail Private investment in rail has increased 63.5% since 2007-08 driven by the increased investment in rolling stock, up by over 90% to 767m in 2016-17 Private investment in the rail industry 1,000 Track and Signalling Rolling Stock Stations Other Investment 925 800 648 801 600 400 566 455 460 377 503 470 423 200 0-200 Note: In 2014-15 there were a large number of rail yards sold to Network Rail which is included in the 'Stations' category. Source: ORR data portal 46
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 bn bn Infrastructure Expenditure The cost of running the railway has fallen by 20% since 2003-04 This has supported a 255% increase in investment by governments on enhancements over the same period 8 7 Network Rail operating and maintenance expenditure (2016-17 prices) Operating expenditure Maintenance expenditure 8 7 Network Rail renewal and enhancement expenditure (2016-17 prices) Renewal expenditure Enhancement expenditure* 6 6 5 4 3 2 1 5 4 3 2 1 0 0 Source: Network Rail Regulatory Accounts Note: * Network Rail funded enhancements only Source: Network Rail Regulatory Accounts 47
Bn Euros Infrastructure investment by European Union Members Britain is investing over 1bn more than France and over 3bn more than Germany on its infrastructure, despite both countries having over 13,000km more of track Total infrastructure expenditure in EU Member States 10.0 Maintenance Renewal Enhancements 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 UK FR DE IT ES PL SE AT NL NO BE HU CZ DK FI LT RO LV SK LU SI HR PT BG Source: Eurostat 2014 48
Methodology All data is the most recent data available at the time of compiling Where possible, data is from 1997-98 as this was the first full financial year after all franchises had been let Earliest data available from the most reliable data sources presented whenever data from 1997-98 is not available RPI has been used where figures are adjusted for inflation and set at 2016-17 prices
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