John Provan Head of Regulatory Policy Rail Strategy.

John Provan

Head of Regulatory Policy

Rail Strategy

Rail : the success story

• 10.3 tonnes of freight moved annually in Scotland.

• 25% increase in passengers since 2004.• Continued growth

– Freight in the UK expected to increase by 2% each year to 2030, a growth of 63 million tonnes.

– Passengers: Glasgow by 38%, Edinburgh to double

Supporting economic growth

• Rail does what it does best: moving goods and people

- Quickly

- Efficiently

- Comfortably

- Safely

Our Record of Investment

Continuing to Invest

Rail 2014

• Primarily passenger services post 2014• Public consultation – November to

February• Designed to stimulate debate: over

1200 responses• Currently analysing views.• Anticipate Ministerial statement – both

freight and passenger - in the Spring.

Key messages

• Still to reach conclusions on many issues. However:

- passengers and freight users at the heart

- achieve greater integration

- improve value for money and quality of service

- build a platform for the rail industry in Scotland to reach its full potential

Priorities for rail freight

• Ensure sufficient capacity to accommodate growth and encourage modal shift

• Support continuation of the recent growth in intermodal traffic to benefit Scotland’s economy through:– Mode shift grants– Infrastructure enhancements

Scotland’s Periodic Review

• Build on the success of PR08

• Learn lessons from the Nelson report

• Get the right outcome for Scotland

PR13 - Progress so far

• Development stage: consultation

• Formal stage: Advice to Ministers

- Notice to submit HLOS (31 July)

- Notice of track access charges review

- Range of NR revenue requirements

Key messages so far

• Passengers and freight users in Scotland at the heart of the review

• Support aspirations for rail in Scotland• Support greater alignment and closer working • Simplicity and ease of understanding: sweep

away the complex.• Value for money for taxpayers and users.• Strong evidence base built in partnership

PR13 – how does this affect freight

• Initial Industry Plan: some recommendations for freight investment

• ORR keen on early certainty on freight charges

• Consultation on freight caps in April – conclusions expected in July

• Freight performance/disruption: understand that industry is developing proposals.

Key next steps

• Consultation on freight charges – April 2012• NR funding framework – April 2012• HLOS/SoFA – July 2012• Consultation on NR’s outputs – August 2012• Consultation on Schedule 4&8 – November

2012• NR SBP – January 2013• Final ORR Determination – October 2013

HLOS and SoFA

• Currently in early development stage

• Analysing outcomes of Rail 2014 consultation

• Analysing Rail IIP

• Extensive engagement with the industry

Key considerations

• Performance including resilience• Capacity including investments• Funds including Strategic Freight Fund• Journey times• Environment• Alignment • Customers/users• Separate section on freight• Future network developments • Affordability – constraints on public finances

Thank you for listening