Moving Britain Ahead Designated Lines Seminar Brian Freemantle, Head of Rolling Stock Policy & Contracts. March 16 Designated Lines Seminar 1
Moving Britain Ahead
Designated Lines Seminar Brian Freemantle, Head of Rolling Stock Policy & Contracts.
March 16 Designated Lines Seminar 1
Moving Britain Ahead
Island Line
2
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March 16
Designated Lines Seminar
Moving Britain Ahead
Growth
3 March 16
Designated Lines Seminar
Moving Britain Ahead
Passenger Rolling Stock
4 March 16
Designated Lines Seminar
Moving Britain Ahead
Challenge of Feast & Famine
5 March 16
Designated Lines Seminar
Moving Britain Ahead
Manufacturers
6 March 16
Designated Lines Seminar
Regular Meetings and discussions.
Bombardier Transportation
Siemens
Hitachi
Alstom
CAF
Stadler
WABTEC – Refurbisher.
Knorr Bremse - Refurbisher
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Market Relationships
7 March 16
Designated Lines Seminar
Rolling stock has a much longer operating life (typically 30-35 years), so in almost all cases train operating companies lease trains from private sector leasing companies.
Since privatisation there have been changes of ownership in these companies (referred to as ROSCOs). The owners are now, in general, long term asset owners:
• Angel: AMP Capital 65%, PSP Investments 30%, International Public Partnerships 5%. Angel owns a fleet of around 4,600 passenger vehicles.
• Porterbrook: Alberta Investment Management Corp, Allianz Capital Partners, EDF Invest, and Hastings Funds Management. Porterbrook owns around 4,000 vehicles.
• Eversholt: CK Investments. Eversholt owns approximately 3,500 passenger vehicles.
33%
27%
32%
8%
Ownership of Existing Fleets
Angel
Eversholt
Porterbrook
Other
Moving Britain Ahead
Future Requirements – source Industry Rolling Stock Strategy
8 March 16
Designated Lines Seminar 0
5,000
10,000
15,000
20,000
25,000
2015 2019 2024 2029 2034 2039 2045
G. Very High Speed Electric
F. Long Distance Electric
E. Middle Distance Electric
D. Shorter Distance Electric
C. Long Distance Self-Powered
B. Middle Distance Self-Powered
A. Shorter Distance Self-Powered
13%
23%
16%
48%
Age of Existing Fleets
BR 1970s
BR 1980s
BR 1990s
Post Privatisation
Moving Britain Ahead
Rolling Stock Perspective
9 March 16
Designated Lines Seminar
Moving Britain Ahead
The Governments Market Led Policy: The Why.
10
Market driven approach.
Approaching a market with surplus
rolling stock.
Off Balance Sheet.
Current rates of financing very good.
Competition for new vehicles keen.
Rolling Stock refurbishment all UK
supply chain.
Each competition is different.
March 16
Designated Lines Seminar
Moving Britain Ahead
The reasons for the Government Led Policy
11
Ongoing level of investment in the fleet
(circa £8.5bn).
Market procures relatively rapidly.
Lease costs so Government capital is
freed up.
Long term asset owners plan beyond
end of franchise.
Risk transfer.
Ultimately though the SoS has a legal
duty to keep the railway running.
March 16
Designated Lines Seminar
Moving Britain Ahead
Franchising & Direct Awards
12
GTR delivered 108 Class 387 electrostars and will deliver 150 vehicles to replace the Moorgate vehicles.
Essex Thameside have an obligation to deliver 68 new vehicles.
FGW will deliver AT300 vehicles for West of England.
SWT will deliver 30 x 5 car Class 707 vehicles for capacity.
Northern will deliver 281 new DMU / EMU vehicles.
TPE will deliver new vehicles as part of there Franchise obligations.
March 16
Designated Lines Seminar
Moving Britain Ahead
Diesels / Hybrids
13
Vivarail – Class 230
Electric Trains fitted with Diesel Engines.
Stadler Hybrid.
CAF Diesel.
IEP Bi-Mode.
March 16
Designated Lines Seminar
Moving Britain Ahead
Challenges
14 March 16
Designated Lines Seminar
Waste onto tracks
PRM TSI – 2020 Deadline
Pacers:.
Wi-Fi: the Government has made clear that this should be offered free to passengers and this is now a
requirement of all future franchises.
Moving Britain Ahead
Challenges
15
Electrification and its delivery to enable cascading of vehicles.
HS2 delivery and impact on national network.
ERTMS and roll out as part of the technological railway.
March 16
Designated Lines Seminar
Moving Britain Ahead
Resource Challenge
16 March 16
Designated Lines Seminar
Moving Britain Ahead
Thank you.
17 March 16
Designated Lines Seminar