RAIL DELIVERY GROUP SEES SIGNIFICANT OPPORTUNITIES TO REDUCE RAIL INDUSTRY COSTS (Network Rail) 22nd November 2011

Rail Delivery Group

Britain’s Rail Delivery Group, comprising the Chief Executives of the rail owning groups, freight operators and Network Rail today briefed politicians, regulators, funders, stakeholders, Trade Unions and the wider rail industry on progress with the priorities being pursued by the Group.
At an Industry Forum attended by eighty senior industry stakeholders the Secretary of State for Transport, the Right Honourable Justine Greening MP, said: "The truth is straightforward and undeniable: the rail industry will only be able to compete for future investment if its long-term cost issues are addressed. I’m pleased to say that the Delivery Group is demonstrating the industry’s willingness to take on board the challenge."
The Chairman of the Rail Delivery Group, Tim O’Toole, said: "The industry has much to be proud of, serving the enormous growth in passengers and freight while improving safety and performance - but more must be done. Six months ago, the leadership of Network Rail and the major train and freight operating companies came together as the Rail Delivery Group. To serve our passengers and freight shippers even more effectively the Rail Delivery Group must unlock greater efficiencies through collective action and reformed commercial relationships”.
Tim O’Toole continued: “We have made early progress in uncovering the way those challenges can be met. The Forum is the start of a process to inform and seek the views of other key members of the industry about our efforts."
The Industry Forum heard members of the Rail Delivery Group describe progress with each of the Group’s priorities, which cover

• Asset, programme and supply-chain management
• Commercial and contractual arrangements
• Technology, Innovation and Working Practices
• Train Utilisation
• Establishing a Rail Systems Agency
• Industry planning

Tim O’Toole concluded: “The Rail Delivery Group will provide the leadership to deliver value for money from these priority areas, which will provide the springboard for further cross-industry efficiencies in 2012”

Notes:

1. The Rail Delivery Group brings together the owners of Britain's Train Operating Companies, Freight Operating Companies and Network Rail to provide leadership to Britain's rail industry.
   • The Group was set up in May 2011 in response to the call by the Rail Value for Money Study, chaired by Sir Roy McNulty, for the rail industry to demonstrate leadership
   • The Rail Delivery Group is focusing on the recommendations contained in the Rail Value for Money Study for reducing the costs and improving the efficiency of Britain's railways. It is concentrating on industry-wide issues in the context of the need for improved services to rail users and value for money for taxpayers.
2. The initial priorities being pursued by the Rail Delivery Group are
   • Improving the asset, programme and supply-chain management of the rail industry through closer co-operation between Network Rail, operators and suppliers;
   • Introducing flexible commercial and contractual agreements within the industry, between industry and Government and between the industry and its suppliers;
   • Embracing technology and innovation in the working environment to enhance the contribution made by one of the industry’s key assets, its workforce;
   • Identifying ways to improve the utilisation of the train fleet by reviewing demand management, service specification and operating practices;
   • Achieving a quicker implementation of major technical projects by removing blockages and resolving commercial issues through the introduction of a Rail Systems Agency; and
   • Improving the industry’s planning by guiding the production of the Initial Industry Plan and the Strategic Business Plan.

3. The Terms of Reference of the Rail Delivery Group include
   • RDG will focus on industry-wide issues in the context of the need for improved service to rail users and value for money to the taxpayer. RDG will not duplicate or over-ride the primary accountability for delivery in the UK rail industry (which remains with the passenger and freight train operators and Network Rail) or the need for much stronger collaboration between these companies at a local level.
   • RDG will co-ordinate the objectives for key cross-industry groups including National Task Force (NTF), Planning Oversight Group (POG) and Technical Strategy Leadership Group (TSLG).
   • RDG will conduct a review of the recommendations made by Sir Roy McNulty in relation to the potential establishment of a [Rail] Systems Agency and a National Safety Task Force, including transition arrangements and potential changes to RSSB.
   • RDG will conduct a review of all other cross-industry groups to improve their efficiency and effectiveness.
   • A key initial priority for RDG [was] to review with an intent to sponsor cross-industry work by Planning Oversight Group in preparation for the Initial Industry Plan (IIP) which [was] published in September 2011 including the scope for improvements in Value for Money and overall industry costs.

4. Membership of the Rail Delivery Group
   • RDG members are the representatives from the owning groups of the passenger and freight train operators and Network Rail.
   • The Chairman is Tim O’Toole, Chief Executive of First Group
   • The vice Chairman is Sir David Higgins, Chief Executive of Network Rail
   • The Secretary is Graham Smith

Membership
Abellio	Anton Valk Dominic Booth (alternate)
Arriva	David Martin Bob Holland (alternate)
DB Schenker	Alain Thauvette Nigel Jones (alternate)
Directly Operated Railways	Elaine Holt
First Group	Tim O’Toole Vernon Barker (alternate)
Freightliner	Peter Maybury Lindsay Durham (alternate)
Go-Ahead	David Brown Charles Horton (alternate)
National Express	Dean Finch Andrew Chivers (alternate)
Network Rail	Sir David Higgins Paul Plummer
Stagecoach	Martin Griffiths Sir Brian Souter (alternate)
Virgin	Tony Collins Patrick McCall (alternate)

Secretary

Graham Smith

ATOC	Michael Roberts