Rail Announcement — House of Commons, 2018-03-27
Topic: Transportation
Christopher Stephen Grayling (Conservative, Centre-right): With your permission, Mr Speaker, I would like to make a statement about the future of the west coast main line, our plans for the integration of track and train on our railways and our plans for the transition to the operation of High Speed 2 as it opens up in 2026 I have already set out for the House our plans to bring the operation of track and train together on a day-to-day operational basis around the country, with the creation of new alliances between Network Rail and the train operators on south eastern and midland main line and the strengthening of the existing alliance arrangements on south western and southern. I have also set out our plans for a new partnership between the public and private sectors to operate the east coast main line Today I want to explain how this approach could start to inform the development of the west coast main line and HS2. I am also today publishing the invitation to tender to be the new west coast partner, which, subject to their delivering on their commitments, will operate the route until 2031 and will work with HS2 Ltd to pave the way for the opening of HS2. The west coast main line is one of the busiest mixed rail routes, if not the busiest, in Europe: it carries commuter traffic to six of our biggest cities and express trains between them; it provides essential intermediate services to places such as Milton Keynes, Coventry, Warrington and Preston; it is an essential link to north Wales, Scotland and Ireland; and it is also one of our busiest freight routes. It is this complex mix of traffic that is a key part of the case for building HS2 so that we have the capacity to meet these growing needs in the future The west coast franchise has been very successful in recent years, with high passenger satisfaction and substantial revenue growth for the taxpayer. I intend the new contract to build on that, up to and including 2026. There is already a close working relationship between Network Rail and the train operator, and I intend that to deepen under the new contract with the new operator. After that, however, the way in which we run the railway will change. After 2026, the express services will start to move off an increasingly congested part of the existing network and on to HS2. Brand-new and more frequent trains will provide additional capacity on faster services, and space will be freed up on the existing routes for improved services to other destinations. That will require a carefully managed transition as initial services provide travel to Birmingham and then, gradually, the HS2 network provides more and more of the inter-city service I want to explain today how the new contract will ensure that that smooth transition takes place, and to set out what we are working towards. I should emphasise that final decisions on the transition and the operational details are years away, but I think it right that, as we publish this new invitation to tender, we start to look towards what that end point could be. For example, HS2 could be an integrated railway operation, in charge of both its infrastructure and its services. That would be akin to what is provided on some Japanese high-speed lines, and would accord with the Government’s strategy of bringing together track and train. It could also be structured as a public-private partnership. There will be other options that we should explore before final decisions are made The exact shape and end state of the organisation does not need to be decided now, but I am very clear about one thing. I want HS2 Ltd to become a strong British organisation, potentially capable of not just building but operating a successful railway here. It should also become a strong international champion for the United Kingdom, as the organisation that runs Manchester Airport has done. Manchester Airports Group is a strong and effective organisation that has expanded in the UK, running first-rate operations here, and is now doing so internationally. It has proved itself to be effective at managing major projects and delivering good customer service. Today’s announcement, however, is not about creating a long-term organisational model for HS2. As we move into the 2020s we will need to prepare for the introduction of services, and through this new arrangement my Department is paving the way for that introduction The winner of the competition will help to design the new HS2 services, develop a new customer offering to take advantage of 21st-century technology and revolutionise the way we travel on high-speed rail, and provide input for my Department and HS2. It will run the existing west coast main line services until HS2 passenger services are introduced. After that it will continue to run successor services on the west coast main line until 2031, albeit to a different set of timetables and priorities, with a refocused service aimed at those intermediate locations. Between now and the start of HS2 services, it will also help to plan the introduction of the express trains to the new line and the move from one line to another, and help to put in place all the customer-facing resources that are necessary for the delivery of an excellent service on day one. If it performs strongly, it will also operate services on behalf of HS2 for a limited period after 2026. During that period, my Department will be closely involved with operations to ensure that the envisaged connectivity benefits of HS2 are realised The contract also includes a number of safeguards such as restrictions on branding, transfer of intellectual property and requirements for collaboration with HS2. That means that, while we will harness the innovative thinking of the private sector, no one bidder will be able to create something that only it could run in the future. The operator will also work with the Department and HS2 to consider the options for the end state, including what would be required for the transition to fully integrated operations undertaken by an eventual combined organisation. That short-term arrangement will be very similar to the modus operandi on Crossrail next year after it formally begins services as the Elizabeth line for Transport for London Throughout this period, the new operator will also deliver a high-quality experience for passengers and continue to drive growth on the existing west coast main line. Passengers will benefit from enhanced compensation for delays of more than 15 minutes, fares and ticketing systems that are simpler to understand, and the introduction of an accessibility panel to advise on all aspects of the way in which the railway is operated. It is important to ensure that all passengers are placed firmly at the heart of all planning decisions. What I am setting in train today for the West Coast Partnership are our plans to keep industry-leading services on the west coast until HS2 enters operation, to ensure that the first HS2 services are delivered with the help of an experienced operator that has been working hard to plan for their introduction, and to use that approach to help to inform decisions on what the final shape of the organisation should be. I believe that that is the best way of ensuring a smooth transition to what will be an exciting new future for our railways, and I commend my statement to the House.