Presentation to the Scottish MAS conference

Getting Into Rail …

Robert Hopkin

Rail Alliance

8 September 2016

Agenda• Knowledge – The Industry Challenge

• Knowledge – Trading in the Rail Sector

• TOCs ROSCOs OAPOs FOCs … and the like!

• TRLs and the RSSB’s TVS at the QRTC

• Rail Exhibitions (UK and ROW)

• Rail Supply Group (RSG) and its Rail Mentoring Scheme

• The Railway Collaboration Culture & BS11000

• Questions …..

The Industry Challenge

The Scale

• 1.7+ billion passenger journeys per year

• 110+ million tonnes of freight per year

• 30% improvement in delay minutes over last 5 years (ie less!)

• Freight estimated to increase by 140% over the next 30 years

• Passenger numbers to double in the next 30 years

• The ‘four Cs’ … as handed down by the DfT

The four Cs (2008-38)

• Capacity – to double

• Carbon – to be halved

• Cost – to be halved

• Customer – (from 95% towards 99% satisfaction)

• http://www.raildeliverygroup.com/what-we-do/our-work-programme.html

• http://www.networkrail.co.uk/browse%20documents/planning%20for%20cp5/long%20term%20planning%20framework%20supporting%20documents/technical%20strategy%20advisory%20group%20including%20appendix%20a.pdf

Network Rail’s CP5 Challenge

• 10,000 route miles of track

• 28,451 bridges

• 2,535 stations

• 6,500 level crossings

• 674 tunnels

• 8 routes

• 35,000 people + contingent workforce

• Operating Expenditure: £13.4Bn (support/operations/maintenance)

• Capital Expenditure: £24.9Bn (renewals £12.1Bn/enhancements £12.8Bn)

Knowledge – NR

• NR-operated Stations: 17

London Cannon Street; London Charing Cross; London Euston; London Fenchurch Street; London King's Cross; London Liverpool Street; London Bridge; London Paddington; London St. Pancras (domestic); London Victoria; London Waterloo; Birmingham New Street; Edinburgh Waverley; Glasgow Central (High Level); Leeds; Liverpool Lime Street; and Manchester Piccadilly

Knowledge – NR

• TOC-operated stations … approx 2483 stations!

http://www.networkrail.co.uk/Network_Specifications.aspx

CP5 Route Utilisation Strategy

• Control Period 5 will see the electrification of the Great Western Main Line from London Paddington to Swansea. Intercity Express Programme (IEP) services will be introduced between Swansea, Cardiff and London, using 9-car electric trains and 5-car bi-mode trains.

• Journey times from Swansea and Cardiff to London will be 15 minutes quicker, and IEP will also provide additional capacity for passengers due to increased seating accommodation.

Spending Profiles 1

• Network Rail – 5-year spending periods (called Control Periods)

• Shaw Report - https://www.gov.uk/government/publications/shaw-report-final-report-and-recommendations

• Hendy Report - https://www.networkrail.co.uk/Hendy-review/

• Income from Commercial Property

• Income from Track Access charges from Passenger and Freight operators

• CP5 runs from 1 April 2014 through to 31 March 2019

• CP6 and CP7 already populated with activity (with estimated costings)

Spending Profiles 2

• Freight Operating Companies

• Freight Customer Access Contracts

• Train Operating Companies

• Franchises

• Incentivising Innovation in Franchising (IiF)

• DfT Franchise Schedule https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/478018/nov-2015-rail-franchise-schedule.pdf

Knowledge

• What do you know about the Rail sector

• Railway Group Standards http://www.rssb.co.uk/railway-group-standards

• European Railway Safety Directive (2004/49/EC)

• Technical Specifications for Interoperability (TSI) … eg PRM-compliancy is a hot topic

• “Who does what” (Network Rail Vs Train Operating Companies)

• Major Projects (HS2, Crossrail, Thameslink, IEP, Crossrail2, MML Electrification)

Knowledge

• What do you know about the Rail sector

• Rail Safety & Standards Board (RSSB) website

• Department for Business Innovation and Skills (BIS) website

• Department for Transport (DfT) website

• Trade bodies – Rail Alliance, Rail Industry Association, Rail Freight Group

• International liaison – European Railway Clusters Initiative website

• Rail Technical Strategy (2012) – for more information, visit the link below:

• http://www.rssb.co.uk/Library/Future%20Railway/innovation-in-rail-rail-technical-strategy-2012.pdf

Knowledge

• Crossrail – £15.9Bn (opens 2018)

• High Speed 2 – £35Bn (opens 2026)

• Longer franchises for Train Operating Companies

• Siemens – Thameslink programme £3.35Bn

• Hitachi – Intercity Express Programme £4.45Bn

• Carriage + Station refurbishment

Knowledge – HS2

• Phase 1: Birmingham to London

• 140 miles of track (56.5 miles in tunnels/cuttings)

• Construction starts in 2017

• Completion by 2026

• £21.4Bn (includes contingency of £5.7Bn)

• Target forecast of expenditure £15.6Bn (+10% contingency)

Knowledge – HS2

• Phase 2: Birmingham to Manchester & Leeds

• 211 miles of track (56.5 miles in tunnels/cuttings)

• Hybrid Bill prepared in 2015

• Completion by 2032?

• £21.4Bn (includes contingency of £5.7Bn)

• Rolling Stock: £7.5Bn (includes contingency of £1.7Bn)

Knowledge – ROSCOs

• Angel Trains - https://www.angeltrains.co.uk/

• Eversholt Rail Group - https://www.eversholtrail.co.uk/

• Porterbrook Leasing Company - https://www.porterbrook.co.uk/

• Macquarie European Rail - http://www.macquarie.com/uk/corporate/asset-finance/rail

• QW Rail Leasing Ltd (Class 378 EMU fleet - LO) – no website as yet

Knowledge – TOCs

• 19 franchised passenger TOCs

• 1.5 billion passenger journeys (2012-13)

• 58.3 billion passenger-km (2012-13)

• Represented by the Association of Train Operating Companies (ATOC)

• Recent trend of increasing franchise lengths

• Franchises of 10-15 years becoming the norm … and can be extended

Knowledge – Freight

• AAE

• Beacon Rail Leasing

• GE Capital Solutions – Rail Services

• Nacco (UK) Ltd

• STVA (UK) Ltd

• VTG Rail UK

Knowledge – OAPOs/FOCs

• Open Access Passenger Operators

• First Hull Trains, Heathrow Express

• Grand Central Railway Company, Eurostar International

• Freight Operating Companies (FOCs)

• 113.1 million tonnes lifted (2012-13)

• Colas Rail, DB Schenker Rail, Direct Rail Services

• Devon & Cornwall, Freightliner, GB Railfreight, Mendip Rail

• Represented by the Rail Freight Group (RFG)

Question …

What does the Railway Industry need from its supply chain?

Answer …

Value!

Better Answer …

• Innovative, ingenious solutions to existing problems and future challenges

• Sustainability credentials – from both technical and environmental perspectives

• Rail sector is a ‘show me’ industry – are the days numbered for the glossy brochure?

• Whole Life Cost Models are at last being entertained by the OEMs & top tiers

• Directors of Supplier Sourcing becoming popular appointments

• Practical approach to sharing the burden of risk becoming more popular – eg Alliancing

• Rail Delivery Group (in the post-McNulty world) is starting to make its presence felt ...

Profile

• What does the Rail Sector know about you?

• FutureRailway Test Voucher Scheme

• Rail Industry Supplier Qualification Scheme (RISQS)

• Rail Industry Supplier Approval Scheme (RISAS)

• CompeteFor used by London Olympics 2012, Crossrail and HS2

• Exhibitions (Railtex, Infrarail, Innotrans, Trako, EurasiaRail, AusRail et al)

• Media (mainstream, specialist, social … the good, the bad and the ugly!)

Rail Industry Supplier Qualification Scheme

http://www.risqs.org/

Rail Industry Supplier Qualification Scheme

http://www.achilles.co.uk/communities/102-risqs

Rail Industry Supplier Approval Scheme

http://www.risas-online.org/

CompeteFor

http://www.competefor.com/

CompeteFor

http://www.competefor.com/

Testing Trialling & Demonstration

• Technology Readiness Levels (TRLs)

• Future Railway Test Voucher Scheme (FRTVS)

• Quinton Rail Technology Centre (QRTC)

• Other Secondary and Tertiary Testing Providers

http://www.rssb.co.uk/future-railway-programme/supporting-innovation-in-rail/inter-organisation/testing-and-trialling

TechnologyReadiness Levels

(TRLs)

Description

1 Basic principles observed and reported

2 Technology concept and/or application formulated

3 Analytical and experimental critical function and/or characteristic proof of concept

4 Technology basic validation in a laboratory environment

Technology Readiness Levels 1 - 4

TechnologyReadiness Levels

(TRLs)

Description

5 Technology basic validation in a relevant environment

6 Technology model or prototype demonstration in a relevant environment

7 Technology prototype demonstration in a simulated operational environment

8 Actual technology completed and qualified through test and demonstration

9 Actual technology qualified through successful mission operations

Technology Readiness Levels 5 - 9

Interaction with the Knowledge Base

• Rail Research UK Association – www.rruka.org.uk

• Motor Industry Research Association – www.mira.co.uk/our-services/rail

• Transport Research Laboratory – www.trl.co.uk/markets/rail

• Millbrook Proving Ground – www.millbrook.co.uk/Sectors/Rail

• Innovate UK – www.gov.uk/government/organisations/innovate-uk

• Transport Knowledge Transfer Network (KTN) – www.transportktn.org

What is QRTC?

What is QRTC?

• Quinton Rail Technology Centre; home to:

• Viva Rail (D78 Project refurbishment and re-roleing to 3-car DMU sets)

• Chrysalis Rail LLP train refurbishment (currently working on FGW DMU fleet)

• Motorail UK Ltd (prototype engineering, maintenance & off main-line storage of rolling stock)

• Total Tank Solutions (collaboration with Motorail and LCM to deliver tanker fleet management)

• ABC Consortium (training, testing, trialling and demonstration)

• FutureRailway partner for FRTVS

• Birmingham Centre for Rail Research and Education partner for ongoing trials – eg COMORAIL Programme for Remote Condition Monitoring)

QRTC Facilities

• 3.9Km loop – with or without DMU (Class 117) or shunter

• Sidings, trackside locations – various (120 acres)

• 25kV OHLE (2 x 200m)

• WCML-standard continuously welded plain track (300m +)

• Workshops

• Lifting equipment (JCB Loadall, Rail Crane 7.5 tonne, Heavy and Light Forks)

• Storage Facilities (short term - long term)

Where is QRTC?

• QRTC

• Station Road

• Long Marston

• Stratford on Avon

• Warwickshire

• CV37 8RP

• 01789 720 026

Future Railway Programme

http://www.rssb.co.uk/future-railway-programme

RSSB Test Voucher Scheme

• The RSSB has extended the current Testing Voucher Scheme (TVS) to enable innovators to access a broader range of facilities than those currently provided.

• The extended scheme will run through to the end of CP5 (31 March 2019) and will offer approximately 30 opportunities per year to test and trial goods, products and services. Companies who meet the eligibility criteria will be able to claim a subsidy of up to £3000 per product tested/trialled.

• It is envisaged that most of the testing requirement will be across the TRL 4-7 space – however, those looking for commercialization opportunities across the TRL 8-9 space may also be considered with some financial commitment from the end user.

• Testing and Trialling Good Practice guide

http://www.rssb.co.uk/future-railway-programme/supporting-innovation-in-rail/inter-organisation/testing-and-trialling/testing-and-trialling-facilities

Participation – Rail Exhibitions

Participation – Light After Dark1 Feb 17

Participation – Railtex9-11 May 17

http://www.railtex.co.uk/

Welcome to RAIL201721/22 Jun 2017

Participation – Rail Live21-22 Jun 17

Welcome to Rail Live – CV37 8RP

• Event takes place 21/22 June 2017

• Event takes place at Quinton Rail Technology Centre – CV37 8RP

• Home to the Rail Alliance

• 6 miles south west of Stratford-on-Avon

• 20-25 minutes from M40 J15

• Build up 16-20 June and tear-down on 24-25 June

• £750 per 5m x 5m outdoor plot (grassed or hard standing) or £5o0 for an indoor plot (3m x 3m deep with power and wifi) – you need to bring your own equipment, gazebos, chairs etc

Participation – Innotrans 20-23 Sep

http://www.innotrans.de/en/

Participation – Trako 2017

http://trako15.exposupport.pl/en-us/?p=63D+pEld15c=

Events, PR & Case Studies

Rail Supply Group

Rail Supply Group

• Launched by BIS and DfT on 21 Jan 2015 – www.railsupplygroup.org

• ‘Fast track for Growth’ Vision Statement – www.railsupplygroup.org/fast-track-for-growth/

• Railway Industry Strategy ‘Fast Track to the Future’ launched 2 Feb 2016

• http://www.railsupplygroup.org/wp-content/uploads/2016/01/RSG-Brochure-Jan-2016.pdf

• Five Pillars:

http://orr.gov.uk/publications/reports/rail-value-for-money-study

Rain Mentoring Schemes

Rail Supply Group (RSG)

• Influential membership including SoS BIS and DfT

• Rail Alliance & RIA to form Secretariat

• £500K pledged from DfT for SME Rail Mentoring Programme

• £350K already in the pipeline for BIS SME Rail Sector Mentoring Challenge

• Inaugural meeting of the RSG held on 18 June 2014

• 5 major workstreams…

RSG

RSG Mentoring Scheme

RSG Mentoring Scheme

http://www.railmentor.com

Mentoring

• Mentoring programmes provided through the auspices of BIS and DfT

• Assistance with product placement and specialist knowledge

• Development of Business Development Managers as sector professionals

• Creation of virtual supply chain groupings

• Niche (sub-sector) events

• Breakfast Meetings with the good and the great

• How the railway works … for you!

RSG Best Practice Workshops

RSG Best Practice WorkshopsA programme of half-day seminar workshops to communicate the key methods of modern

supply chain philosophy. The speakers will share their expertise and engage debate, the outcome of which being recorded and fed back for further action

Looking at the key questions around the challenges or barriers encountered in the supply chain

What the supply chain needs to enable them to overcome those barriers and make a change

www.rsgbestpractice.org

What the Rail Alliance does do:

• A Rail Sector Business to Business (B2B) Organisation providing:

• Networking Events (nationally)

• Seminars and Conferences

• Delivering Mentoring Schemes on behalf of BIS and DfT

• Media & Exhibition Support (including hosting outdoor rail technology shows)

• Testing, Trialling & Demonstration for SMEs and Large Enterprises

• Manufacturing Advisory Service (MAS) Delivery Partner

• … anything its members want it to be – we’re driven by them!

What the Rail Alliance does not do:

• Act as a Trade Association

• Lobbying

• Politics

• Dinner Dances, Golfing Days, Corporate Tub Thumping

• What others do …

Trade Bodies – Advice

• Rail Supply Group (RSG) SME Strand incudes inter alia:

• RSG Mentoring Programme

• RSG ‘Open Doors’ Programme

• enquiries@railmentor.com to sign up for the RSG Mentoring Programme

• Rail Alliance – B2B Networking organisation for the Rail Supply Chain & more …

• Railway Industry Association – the trade association for the Rail Sector – www.riagb.org.uk

• Derby & Derbyshire Rail Forum – www.derbyrailforum.org

• Rail Freight Group – looks after the Freight Operating Companies (FOCs) – www.rfg.org.uk

Competitions

TOC-16

http://www.rssb.co.uk/future-railway-programme/funding-opportunities

TOC-16

• £4M programme (probably about 4-6 projects)

• Increasing Collaboration between TOPCs and the Supply Chain

• To innovate, increase and/or improve:

• performance or service

• reliability and safety

• rail capacity

• journey/dwell time reduction

• value – in terms of benefit to the customer

Collaboration

Collaboration

• ‘Graveyards are full of indispensable people’ … Charles de Gaulle

• ‘I've never been asked to do a collaboration. I guess I just don't give off that come-and-get-me vibe. I wouldn't be adverse to doing one with Coldplay or U2 - anyone who sells 50 million albums’ … Noel Gallagher

• ‘Politeness is the poison of Collaboration’ … Edwin Land

• ‘Alone we can do so little, together we can do so much’ … Helen Keller

• ‘It is the long history of humankind (and animal kind, too); those who learned to collaborate and improvise most effectively have prevailed’ ... not Charles Darwin

Collaboration

Meet Kevin Tozer

• Head of Collaborative Working, Network Rail

Meet David Hawkins

• Operations Director, Institute of Collaborative Working

Collaboration – BS 11000

• World’s first national standard for Collaborative Business Relationships

• Set to become an ISO standard (ISO 11000) in October 2016 (ish!)

• ISO 11000 will adopt standardized Annex SL as for other Management Systems ISO Standards

• BS11000 Leadership and Auditing courses provided by the University of Warwick (£1200+VAT)

• Introduction to BS11000 courses are provided by BSI (£625+VAT)

• Rail Alliance provides BS11000 Awareness Training courses at its Long Marston base(£250+VAT)

• Standard is overseen by the Institution for Collaborative Working

• See www.instituteforcollaborativeworking.com

• Network Rail (Infrastructure Projects) has been accredited to the standard (along with 50+ other Tier 1)

Collaboration – Tier 1 Companies

Hands across the water …

• The Rail Alliance is a Founder Member of the European Rail Clusters Initiative ERCI (www.eurailclusters.com) – a ‘super’ cluster of 10 railway business clusters from 8 European countries including: Austria, France, Germany, Italy, Poland, Spain and United Kingdom.

• Objectives:

• To increase European competitiveness of the railway sector through innovation

• To share experiences and efforts to avoid redundancies and promote efficiency

• To build European projects and bring business opportunities to our members

Any Questions?

• Thank you for your patience and forbearance, we look forward to meeting with you again at one of our networking events

• Have a safe journey home …• Robert Hopkin• Executive Director• Rail Alliance• robert.hopkin@railalliance.co.uk• 01789 720 026• 07772 641 835• www.railalliance.co.uk