PlaceEXPO: City Region Investment Strategies: High Speed 2

Place Expo City Region Investment Strategies Prepare for HS2Duncan Sutherland Non-Executive Board Director, HS2 17 June 2014

• Outline of the project

• What HS2 Brings

• HS2 Ready .......City Investment

What we will cover

What is HS2 Ltd?

• Non Departmental Public Body • Established in 2009 as an advisory body,

morphed into a delivery body

Project Budget Summary

• £42.6bn design and construction budget (July 2013 spending review)

• £ 21.4bn Phase One – London to Birmingham • £ 21.2bn Phase Two –

Birmingham to Manchester and Leeds • Approx £4.1bn property acquisition cost

(£2.7bn Phase One/£1.4bn Phase Two) • £14.4bn contingency

• The ‘Y Network’ • Built in two phases • 330 miles of track • 9 HS2 stations • Classic compatible trains

• Subject to “Higgins Report”

The Line of Route

• Preferred route announced in January 2012

• Subsequently 14 major design refinements made

• Hybrid Bill deposited at the end of 2013

• 2016/2017 Construction starts • 2026 HS2 (Phase One) opens to

passengers

Phase One: London – West Midlands

London Euston – central London • London terminus station. • Interchange with other rail services and London Underground. • Existing station to be extended to accommodate 11 new HS2

platforms.

Old Oak Common – west London • New station built on existing railway land • Interchange with Crossrail and Great Western Main Line • 6 underground platforms

Birmingham Interchange - Solihull • New station built with connection, by people mover system, to Birmingham International station, Airport and NEC

• Interchange to Birmingham International Rail Station, National Birmingham Curzon Street • New station built incorporating the existing Grade 1 Curzon

Street Station building • Pedestrian link with Birmingham Moor Street Station

Phase One HS2 Stations

Curzon Street Station • 7 high speed platforms • Terminus station for

Central Birmingham • Catalyst for wider

regeneration of Digbeth and Eastside

Curzon Street Station

Aerial view of Curzon Street Station

Birmingham Interchange - Solihull• Bounded by A454, A45

and M42 • Connected to

Birmingham Airport, NEC and Birmingham International Railway Station via a people mover.

• Journey time to London Euston 38 minutes

Phase Two: Birmingham-Manchester / Birmingham-Leeds

• Initial proposed route announced in January 2013

• Public consultation closed January 2014

• Decision on route expected late 2014

• Safeguarding consultation late 2014

• 2033 Phase Two open

Phase Two HS2 Stations

Manchester Airport • To be built in conjunction with Manchester Airport. • Provides not only access to the airport, but also easy access to

HS2 from South Manchester & wider Cheshire area.Manchester Piccadilly • New HS2 station build alongside existing station.

• Connections to regional rail services. • Access to Metrolink & local/regional buses.

East Midlands Hub • New station between Nottingham and Derby at Toton. • Connections to many East Midlands cities.

Sheffield Meadowhall • New station between Meadowhall Shopping Centre & M1. • Connections to Sheffield and many cities in South Yorkshire.

Leeds New Lane • New station with a bridge linking to Leeds New Street station. • Connections to other regional cities.

Additional HS2 destinations served by classic compatible services: Stafford, Crewe (important interchange station), Runcorn, Liverpool, Warrington, Wigan, Preston, Carlisle, Glasgow, Edinburgh, York, Newcastle

Why the UK is investing in HS2

• Maximising

connectivity benefits • Maximising

opportunities to business from better connectivity

• The freight industry • Tourism

The Need - Connectivity

The Need - Connectivity

Destination Current Journey Time

HS2 Journey Time

Journey time reduced by

Birmingham Curzon St 1:24 0:49 35 mins

EAST

East Midlands Hub n/a 0:51Sheffield Meadowhall n/a 1:09

Leeds New Lane 2:12 1:22 50 minsYork 1:53 1:23 30 minsNewcastle 2:52 2:18 34 mins

WEST

Crewe 1:30 0:58 32 minsManchester Piccadilly 2:08 1:08 1 hr

Liverpool 2:08 1:36 32 minsEdinburgh 4:23 3:38 45 minsGlasgow 4:08 3:38 30 mins

HS2 will link 8 of the UK’s 10 largest cities, serving 1 in 5 of the UK population Key journey times to/from London once Phase Two opens

The Need - Connectivity

Journey Current Journey Time

HS2 Journey Time

Journey time reduced by

Birmingham/Newcastle upon Tyne 3.14 2.07 1.07

Birmingham /Leeds 1.58 57mins 1.01Birmingham/Sheffield 1.11 48mins 23mins

Birmingham/Nottingham 1.13 36 37minsBirmingham/Manchester 1.28 41mins 47minsNottingham/Newcastle upon Tyne 2.59 2.03 56mins Nottingham/Leeds 2.03 46mins 1.17

Nottingham/York 1.55 53mins 1.02Sheffield/Newcastle upon Tyne 2.13 1.37 36minsSheffield/York 53mins 33mins 20minsSheffield /Leeds 41mins 27mins 14mins

HS2 will link 8 of the UK’s 10 largest cities, serving 1 in 5 of the UK population Key journey times between Midlands/North once Phase Two opens

• 64% of businesses expect HS2 to have a positive impact on UK private sector growth

• 71% of the general public think that HS2 will positively benefit Midlands

• 66% think that HS2 will positively benefit the North

Populus, Jan 2013 CBI/KMPG Infrastructure Survey 2012

The Need - Growth

The Need - Growth

Economic Growth ▪ HS2 will be an engine for growth that will generate jobs, rebalance the

economy and secure the country’s future prosperity

Jobs & employment ▪ Phase One is expected to support around 40,000 jobs (9,000

construction jobs, 1,500 permanent jobs and 30,000 jobs in station redevelopment areas)

Regional Development ▪ Birmingham Curzon St will be at the centre of a massive regeneration

scheme planned for the east of city ▪ Old Oak Common station will transform derelict industrial land into

homes, offices and commercial space

The Need - Regeneration

• Unlocking development potential

• Creating opportunities

• Aligning resources & policies

• Attracting investment & funding

• HS1 has seen regeneration at Ebbsfleet, Stratford and Kings Cross worth £10bn, plus wider economic benefits of £3.8bn

• Lille has developed a major commercial centre around its new station

• Crossrail could help create additional residential and commercial value of up to £5.5bn between 2012 and 2021

• HS2 Ltd is working with Core Cities, London Boroughs and other stakeholders to maximise the regeneration opportunities

The Need - Regeneration

Station investment in major cities can have significant impact

21

Station investment Direct land redevelopment

Public realm enhancements

Improved image and confidence in area

Developer interest

New higher value developments Increased land value

Additional jobs, GVA, rateable value

The value of station investment, Steer Davies Gleave, November 2011

The extent to which economic benefits are realised depends on a range of wider factors

Investing in a new station is necessary, but not sufficient… Wider economic impact will depend upon: • Urban realm • Integration with wider transport networks • Passenger experience • Commercial opportunities

Case Study - St Pancras• Cost £800 million • Annual footfall over 40 million • 23% of people using St Pancras are not

travellers but there to eat, drink, shop & meet

• Average dwell time of 27 minutes – more than other UK stations

• 90,000 sq ft of retail space (55 units) with average spend ~ £12

• Important contribution to regeneration of Kings Cross environ and a significant element of the additional impact of regeneration of HS1 ~ £10 billion

• Accompanied by restoration and opening of 5* Marriot Renaissance hotel

• Popular film & TV location!

Lille Europe• Lille-Europe and Lille Flandres

next door to each other in the city centre.

• Both stations well-integrated into existing surface transport infrastructure by buses and tramways

• Stations linked by EuraLille which has grown into the third biggest business centre in France over the last decade.

• New urban district of around 70 hectares of offices, apartments, hotels and a shopping mall.

Gare de Creusot TGV• On the TGV Sud, outside the city,

in the town of Écuisses • Accessible by car & local public

transport links for nearby regional cities

• Served by very few TGVs and produces little business

• Opened in 1981, expected to regenerate old industrial area by creating a local centre of activity, but lack of existing business activity appears to have deterred start-ups

HSR stations can be catalyst for wider benefits, but can’t create them out of nothing

• Does not happen without co-ordination and drive • Integrated national and local proposals are required

• Public control of land is important

• Proactive planning policy/ incentives

• Accessibility to local public transport/ road networks

• Focussed investment in local infrastructure

HS2 Plus – Sir David Higgins Report

• Cost estimates for constructing Phase One confirmed as realistic • Maximise redevelopment of Euston station by generating private

sector investment that can reduce the overall burden on the taxpayer.

• Accelerate Phase Two to span a further 43 miles to a new

transport hub at Crewe 6 years earlier than planned.

HS2 Plus – Sir David Higgins Report cont.

• Following the Higgins Report, the Government has decided that the HS1-HS2 link will be removed from the hybrid Bill and withdrawn from safeguarding (Government has commisioned a study in to options to improve connections to the continent)

• HS2 to form part of regeneration of economies and communities

across the North

• Reject thoughts on cut backs on planned mitigation measures

HS2 Growth Task Force Report• Created in 2013 to advise the Government on how to maximise

the return from the investment in HS2 • A ‘business as usual’ approach will not be enough • Getting our cities ready

o Local authorities should lead on the development of HS2 Growth Strategies and set up local bodies to deliver these strategies with Government support

• Getting our transport network ready o Government, HS2 Ltd and local partners must act to examine how HS2 can be

integrated into existing local and regional transport networks • Getting our people ready

o Government to make railway engineering and advanced construction skills a national priority.

• Getting our businesses ready o HS2 Ltd to set new standards for industry engagement and collaborative working

through forthcoming procurement strategy o Businesses to seize the opportunities available, supported by local authorities and

Local Enterprise Partnerships • The Government response

o An initial statement from DfT Secretary of State welcomed the report and vowed to consider the recommendations

o An expanded response will be produced at a later stage possibly as part of the Second Reading of the hybrid Bill at the end of April

HS2 Growth Task Force Report

Further information, and route plans:

www.hs2.org.uk