4 Adopting a strategic approach to
station improvements
10. Funding constraints had curtailed the SRA's plans
to invest in station improvements. There were also limited resources
to tackle growing capacity pressures at several larger stations.
Consideration of the value for money of improvements was important
alongside passengers' expectations of a minimum level of facilities
and services at every station. There is, however, no overarching
strategy or single organisation leading on the modernisation of
Britain's stations. The number of witnesses highlighted the fragmented
nature of the rail industry, the diffusion of roles and responsibilities
and the absence of strategic leadership to guide the industry.
The Department was developing a strategy for stations, which would
help it construct a high level statement of the outputs it was
looking to the industry to deliver during the period covered by
the Office of Rail Regulation's review of Network Rail's funding
needs for 2009 to 2014.[14]
11. Network Rail acknowledged that third parties
interested in station improvement projects, such as local authorities
and property developers, sometimes found Network Rail a difficult
and bureaucratic organisation with which to deal. Network Rail
had work underway to make it easier for other organisations to
deliver station improvement projects, by streamlining and clarifying
processes, establishing a risk fund for the industry and by Network
Rail being willing to assume more of the risks (Figure 4).
The Office of Rail Regulation had set out a way forward in a recently
published policy document and also expected a Stations Code to
be introduced in April 2006, to provide opportunities for real
competition between Network Rail undertaking the improvement work
and third parties doing it themselves.[15]
Figure 4: Barriers to investment in
stations and the action being taken to tackle them
| Barriers
| Action being taken
|
| Network Rail's procedures are seen as unduly complicated and inflexible, adding to project costs, long lead times between project design and delivery, and jeopardising funding packages available for limited periods of time.
| Network Rail has consulted the industry on ways of simplifying procedures and in October 2005 the ORR published a high level policy framework for investment in rail infrastructure, including stations.
|
| Network Rail seeks to avoid taking on risks associated with improvement projects for which it is not funded. But, the cost for other organisations insuring against the risks associated with improvement projects is high, discouraging investment.
| Network Rail has proposed setting up an Industry Risk Fund to compensate project promoters and funders for risks associated with operational emergencies, safety critical events and changes in legislation and for capping liability for small schemes.
|
| Network Rail is seen as displaying insufficient interest in developing franchised stations as it has no corporate targets or funding in this area.
| Network Rail has been discussing with the Department and the ORR setting up an annual fund of up to £50 million for small scale enhancement projects costing up to £5 million, which might include station improvements.
|
Source: National Audit Office
12. A key consideration in any business case for
a station improvement project was the impact that the project
was expected to have on passenger numbers and therefore revenue.
This made it difficult to prove a business case for improvements
at smaller stations. It was also difficult to place a value on
improved passenger comfort and an improved station environment.
Network Rail had identified opportunities for up to £4 billion
to be invested in office, housing and retail developments at and
around stations over the next 10 years, some of which would improve
the fabric of the stations themselves. It would like to see stations
better connected to their local towns and communities to maximise
the chances of successful development and regeneration at and
around stations. Where business cases took account of broader
economic regeneration benefits, rather than more narrow passenger-based
benefits, Network Rail's proposed approach would involve attracting
private property and retail developers into deals to improve stations
packaged together as clusters along particular routes. Development
gains would therefore be spread more widely across stations of
any size on the network, allowing the industry to cater better
for passengers' needs. An industry working group set up by the
SRA had been considering other options for encouraging more investment
in stations, such as extending Network Rail's role to cover all
repair, renewals and maintenance of stations as well as the more
radical option of setting up station companies.[16]
14 Qq 1, 52, 157 Back
15
Qq 11-12, 42 Back
16
Qq 73, 77-78, 96, 149-152, 212-213 Back
|
