Memorandum 75
Submission from the Department for Transport
SUMMARY
The Department for Transport is the Government's
lead Department for Galileo—the EC project for a civil Global
Navigation Satellite Systems (GNSS). Decisions fall to the Transport
Council because GNSS has potential uses in all transport modes,
including road pricing and congestion charging, and is therefore
funded from a Transport budget. It also has potential for other
applications, including precision timing. GNSS is one of the tools
capable of helping to deliver improvements to the UK transport
system, for example in reducing congestion, improving safety and
reducing the impact of transport on the environment, as well as
supporting the UK economy.
INTRODUCTION
1. The Department for Transport's (DfT)
interest in space revolves around the use of Global Navigation
Satellite Systems (GNSS) to help deliver improvements to the UK
transport system. GNSS based applications have potential benefits
across all modes of transport, and are expected to be useful in
delivering Departmental objectives, for example in reducing congestion,
improving safety and reducing the impact of transport on the environment,
as well as supporting the UK economy.
2. The Department has the UK Government
lead on the development of the EC's global satellite navigation
programme,[3]
which will deliver to users worldwide a more robust, precise and
continuous service than is currently available.
THE GALILEO
PROGRAMME
3. The European Commission and the European
Space Agency (ESA) are partners in developing Galileo. ESA manages
the technical development of the project on behalf of the EC.
The deployment and operational phase will be an EC funded PPP,
owned and managed on behalf of the Community by the GNSS Supervisory
Authority (GSA).
4. Galileo will provide a highly accurate,
guaranteed, global positioning service, under civil control. It
has been developed as a civil programme and will be capable of
providing a more accurate and reliable service than the two current
GNSS systems: the US GPS (Global Positioning Satellite) and the
Russian GLONASS—both originally developed for military purposes.
Galileo will be independent of but complementary to GPS and GLONASS,
while providing full interoperability with existing and future
satellite-based navigation systems to deliver a worldwide service.
5. Galileo is expected to offer five services:
the open service (which, like GPS will be free to users); a commercial
service (with service guarantees); a safety of life service (for
safety critical services); a search and rescue service; and an
encrypted Public Regulated Service (PRS) for secure governmental
applications. It will therefore enable a greater range of applications
in transport and other sectors including guidance, signalling
and timing services, interactive search and rescue, and added
value facilities linked to mobile telephones.
6. The first, UK built, test satellite was
launched in December 2005. A second test satellite is planned
for 2007, with the launch of the total constellation of 30 satellites
and construction of the ground stations by 2010. The commercial
operation would then effectively commence.
7. The deployment and operational phase
will be taken forward as a PPP (public-private-partnership), which
will have exclusive rights to use the infrastructure for 20 years.
In return, the organisation will bear at least two-thirds of the
infrastructure construction costs. The task of managing the development
phase and selection of the concessionaire is the responsibility
of the Galileo Joint Undertaking (GJU)—set up by the Commission
and ESA. It is currently engaged in negotiations with a consortium
of eight European companies. The consortium's overall structure
and governance has not yet been settled, but it has been decided
to locate the operations company in London. If the negotiations
are successful, and the European Parliament and Council approve
the proposed financial regulation, the GSA is expected to sign
an agreement with the consortium in 2007.
Galileo Programme Expenditure
8. Galileo programme costs are shared equally
between the EC and ESA. The EC share comes from its transport
trans-European Networks (TEN-T) and Research and Development Framework
Programme budgets. ESA obtains its funds from contributions from
its Member States; the largest contributors are the UK, Italy,
Germany and France (roughly equal at around 17%). Under the ESA's
"fair return" rules industries of member states receive
contracts on a pro-rata basis proportional to the level of national
subscription to individual projects. UK contributions are paid
through BNSC, which represents the UK in ESA.
9. After additional work requested by the
Transport Council the total cost of the definition phase increased
from €80 million to €133 million. The UK contributed
the equivalent of €15.3 million to this phase—(approximately
£10.4 million-£4.1 million and £6.3 million from
DfT and DTI respectively).
10. The total cost of the development programme
is now estimated to be €1.5 billion, an increase of €400
million over the original €1.1 billion estimate. ESA and
the EC will each provide an additional €200 million to plug
the shortfall. The UK's contribution to ESA was originally set
at €95.7 million (approximately £65 million-£20
million and £45 million from DfT and DTI respectively), but
in August 2006 the Government agreed to a further €31 million
(£21.2 million) to maintain the UK's share of the programme
against the other major contributors. EU funding will not be agreed
until the detailed breakdown EU budget for 2007-13 is decided
during 2006.
11. The Government, through BNSC, is investing
a total of £96.6 million into the programme (including £24.1
million from DfT).
UK Government's Objective
12. The UK's priority objectives are to
maintain Galileo as a civil system under civil control and to
achieve a robust and affordable PPP. Value for money in the PPP
concession through open procurement and fair competition is the
best means of delivering a successful PPP from which all member
states and their industries will have the opportunity to benefit
economically.
13. The UK Government has some concerns
that the estimated costs of the programme have increased and we
have been working to increase transparency and ensure more clarity
of the emerging contingent risks. Complete details of the full
costs of the PPP are unlikely to emerge until the core elements
of the concession contract are agreed later this year.
14. A Transport Council Resolution of December
2004 made the start of the Galileo deployment and operational
phases conditional on the Commission providing a reasoned analysis
of the results of the negotiations, the risk allocation and the
final costs. We will hold the Commission to that commitment so
that member states will have a basis for judging the acceptability
of the emerging deal and its impact on the costs and risks to
the public sector.
UK Bid for the Galileo Supervisory Authority (GSA)
15. The EC GNSS Agency that will be responsible
for regulating and overseeing the overall Galileo programme once
the GJU has negotiated the contract with the concessionaire is
the GSA. The Welsh Assembly Government is leading the UK bid for
it to be located in Cardiff. The Netherlands, France, Italy, Spain,
the Czech Republic, Slovenia, Malta, Belgium and Greece have also
made bids—and others may also bid. The Finnish Presidency
is hopeful of facilitating a decision on location by December
2006, but this may be difficult to achieve, given other priorities
in the Galileo programme and that some Member States are likely
to want more time for lobbying on behalf of their comparatively
late bids.
16. The Government is pressing for the decision
on location of the GSA to be based on the merits of the respective
bids and the technical and practical requirements of the Authority,
and criteria have been brought forward by the Presidency.
EUROPEAN GEOSTATIONARY
NAVIGATION OVERLAY
SYSTEM
17. The European Geostationary Navigation
Overlay System (EGNOS)—Europe's first venture into satellite
navigation—will improve the integrity of existing satellite
navigation systems, by augmenting GPS and GLONASS signals, making
them suitable for safety critical applications such as the navigation
of aircraft and ships. EGNOS will allow users in Europe to determine
their position to within five metres (about 20 metres is possible
with GPS). EGNOS is operating well, although some problems remain,
and is expected to be certified for safety-critical applications
in March 2008. In 2004 DfT agreed to £5.4 million (in 2007-08)
to support certification of EGNOS—for aviation use. However,
additional funding is required to keep the system fully operational
while the certification process is implemented. ESA has asked
member states to revise the ARTES 9 Declaration,[4]
which funded EGNOS. On 21 September ESA formally opened this for
subscription, seeking agreement by 16 November. It hopes for €55
million to cover costs until March 2008, when transfer to the
PPP concessionaire should take place following successful certification.
18. ESA proposes a UK contribution of €6
million. DfT understands the need to maintain EGNOS until certification
and that the investment should lead to efficient deployment of
navigation aids. Ministers will consider the basis for an additional
UK contribution.
Benefits to UK
19. The UK is well placed to benefit from
the downstream applications which will be the much the largest
proportion of the operational benefits of Galileo. The Commission
has estimated the potential market for GNSS products and services
(Galileo and GPS combined) could reach €400 billion[5]
in the next decade, of which UK industry can expect to capture
perhaps as much as €24 billion[6].
APPLICATIONS
Road User Charging
20. DfT is investigating the scope for charging
for the use of roads, as a mechanism for managing congestion.
Although not the primary objective, managing demand is also expected
to have knock-on environmental benefits. Different charging regimes
have been suggested, but all depend on the ability to identify
the time and location of road users/vehicles. A number of technologies
could be used to achieve this. However, it is recognised there
are many potential benefits to using a GNSS-based system.
21. Significant technical issues need to
be overcome before a comprehensive GNSS based road charging scheme
could be implemented. These include: the need to secure the necessary
level of integrity and coverage, particularly in urban areas;
and the development of on-board units suitable for deployment
and use, at an acceptable cost, applicably to all road vehicles
in Great Britain.
22. The Department will sponsor a significant
research programme addressing these and many other questions related
to the effective delivery of time, distance and place charging.
Funding of around £10 million has been allocated for these
demonstrations, which will probably include the overall process
of charging using satellite systems and how users of such systems
can be have assurance and trust in the systems' outputs.
Intelligent Transport Systems
23. As described in "Intelligent
Transport Systems (ITS)—The policy framework for the roads
sector"—Nov 2005,[7]
the Department has many roles in making best use of ITS to give
road users higher quality transport systems and services. These
include being a major procurer of ITS technologies and services,
including through direct management of the strategic road network,
demonstrations and trials; facilitating and encouraging the take-up
of proven ITS technologies; and promoting innovation by researching
the potential of new ITS technologies.
24. ITS, already an important part of our
delivery plans for future transport, will help road users travel
more safely, on less congested roads, and on better public transport
services with improved information services, and bring many economic,
environmental and social benefits.
25. GNSS is recognised as an important technical
solution for a number of applications, however it is just one
of a number available, and therefore its suitability needs to
be considered on a case by case basis.
Shipping and Ports
26. As part of DfT's shipping strategy[8]
it will facilitate the use of electronic aids to navigation, complementing
traditional aids where necessary, building on the General Lighthouse
Authorities' vision statement for 2020. Increasing reliance on
GPS has already led to major changes in the provision and operation
of navigation aids. Further new navigation systems are now coming
on stream, such as Automatic Identification of Ships (AIS), and,
by around 2010, Galileo based satellite navigation systems.
Rail
27. The additional integrity information
and accuracy of the Galileo Safety of Life service could provide
a complementary source of positioning information for the new
European Rail Traffic Management System/European Train Control
System (ERTMS/ETCS) cab-based signalling standards for high-speed
trains. Satellite navigation systems are also being used to support
Selective Door Operation systems, where the train length is greater
than the station platform, and support on-train passenger information
systems. They have the potential to support energy metering and
vehicle positioning monitoring as part of fleet management.
Aviation
28. As described in the Department's White
Paper, The Future of Air Transport,[9]
there are few areas in which the UK is free to make policy in
isolation from other countries. Most new aviation legislation
now originates from the European Union. In addition, global standards
for aviation, including satellite navigation, are set by the International
Civil Aviation Organisation (ICAO).
29. ICAO envisages a gradual transition
from the current ground-based infrastructure to the increased
use of GNSS. The use of GPS is already well established in the
field of aviation navigation. Refining and improving satellite
navigation through EGNOS and Galileo will provide additional benefits
to aircraft in all phases of flight.
INTERACTION WITH
OTHER GOVERNMENT
DEPARTMENTS
30. The Department coordinates the UK position
through a Galileo Coordination Group which brings together representatives
of all interested Whitehall Departments. While DfT has policy
lead for Galileo it collaborates closely with other Government
Departments to ensure the complementary objectives fit together,
eg DTI's aim of enhancing the competitiveness of UK industry with
DFT need for applications capable of improving the UK transport
system. DfT is an active partner in the British National Space
Centre.
RESEARCH
31. The EC is planning to spend €350
million over seven years on Galileo related research, under its
7th Framework Programme of Research (FP7)[10],
[11];
covering:
— Exploiting Galileo's full potential.
— Providing the tools and creating
the environment.
— Adapting receivers to the requirements
and upgrading core technologies.
— Allowing infrastructure evolution.
32. DfT will fully participate in the Programme
Committee overseeing this element of the Framework Programme.
A key objective will be securing greater Member States' involvement
in specifying the research. DfT believes that the resources should
be devoted to ensuring the success of Galileo, particularly in
developing applications users need and want, and which will therefore
provide revenues for the PPP. This is a higher priority than technology
driven research to improve the system.
IMPACT OF
DFT SPACE
ACTIVITY
33. The Select Committee has identified
the following issues as being of particular concern.
Impact of Current Levels of Investment on UK International
Competitiveness
34. The primary aim of DfT funded activity,
related to the use of space, is to deliver transport objectives.
Nevertheless, DfT supports the Government policy of improving
the competitiveness of a healthy UK based industrial base, delivered
by BNSC and DTI.
Benefits of Participating in the ESA and Other
International Programmes
35. The Government continues to work to
maintain the priority UK objectives of: achieving a robust and
viable PPP; maintaining Galileo as a civil programme under civil
control; influencing the development and financial control of
the project to ensure a transparent process which delivers a value
for money deal for the Community; and ensuring that UK industry,
already at the forefront of the development of Galileo, remains
well positioned to exploit it in the long-term. Maintaining our
position as a major player within the programme and as a member
state of the EC and ESA, we are able to influence the development
of the project to ensure that the development of Galileo and the
necessary expenditure within the EC and ESA are subject to appropriate
scrutiny and challenged when required.
36. Participation in the research Framework
Programmes gives DfT influence over the research funded by the
EC supporting the development of Galileo and applications. DfT
is seeking stronger oversight in FP7 through the GSA. Tranches
of FP6 money were transferred to the GJU where decisions were
largely taken internally.
The Commercial Benefits from Innovation and Technology
Transfer
37. A Location and Timing Knowledge Transfer
Network (KTN) is managed by the National Physical Laboratories,
building on the successful Pinpoint-Faraday Partnership, the government-backed
forum for GNSS innovation. Location and timing technologies span
many areas which touch people's lives and it is the KTN's responsibility
to put the UK at the forefront of this growing industry. Their
aim is to overcome barriers by combining academic excellence,
industrial expertise and government support to drive development
for the UK in this emerging market. Their role is to:
— Provide a network that has access
to the entire industry and provide a forum for identifying people
with ideas and those that can apply them to the real world.
— Help turn ideas into realistic business
propositions.
— Provide access to individuals who
can explain complex technological issues to the layman.
— Provide newsletters and advice about
funding.
38. The KTN, with 700 members, drawn from
industry, academia, end users and government, is growing at a
rate of 50% per year. The Galileo team in DfT keeps in close touch
with the KTN.
Delivery of Public Benefits
39. DfT's key objective is to secure public
benefit from the development of applications, based on satellite
positioning and navigation systems, aimed at realising a more
efficient, safer and environmentally friend UK transport system.
Support for Space-Related Research and the UK
Skills Base
40. DfT supports significant research aimed
at investigating the use of GNSS as the basis of possible Road
Pricing systems and other ITS applications. Much of this work
will carried out by UK organisations.
November 2006
See http://www.dft.gov.uk/stellent//groups/dft_roads/documents/page/dft_roads_610509.pdf
See http://www.dft.gov.uk/stellent/groups/dft_about/documents/divisionhomepage/031259.hesp
See http://www.dft.gov.uk/stellent/groups/dft_aviation/documents/divisionhomepage/029650.hesp
3 Department for Transport Annual Report 2006 (Cm
6817). Back
4
ARTES 9, "Initial Global Navigation Satellite System",
ESA/JCB(93)66, 17 November 1993. Back
5
Commission Jacques Barrot's speech on 12 September 2006. Back
6
ESYS report for BNSC "Galileo Awareness and Justification
Study", June 2005. Back
7
DfT, Crown Copyright, November 2005, Product code PPU3617/ES. Back
8
The Future of Transport-White Paper published on 20 July
2004. Back
9
The Future of Air Transport-White Paper, published on
16 December 2003. Back
10
Chief Scientific Adviser's Evidence and Research Strategy: June
2006. Back
11
See http://cordis.europa.eu/fp7/ Back
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