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Network Rail
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Network Rail is a British "not for dividend" company limited by guarantee whose principal asset is Network Rail Infrastructure Limited, a company limited by shares. Network Rail owns and operates the fixed infrastructure assets of the British railway system.
ork Rail owns the infrastructure, including the railway tracks, signals, tunnels, bridges, level crossings and most stations, but not the passenger or commercial freight rolling stock.
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Network Rail is a British "not for dividend" company limited by guarantee whose principal asset is Network Rail Infrastructure Limited, a company limited by shares. Network Rail owns and operates the fixed infrastructure assets of the British railway system.
Responsibilities
Network Rail owns the infrastructure, including the railway tracks, signals, tunnels, bridges, level crossings and most stations, but not the passenger or commercial freight rolling stock. Network Rail took over ownership by buying Railtrack plc, which was in "railway administration", from Railtrack Group plc for £500 million. The purchase was completed on 3 October 2002.
The company's headquarters is at Kings Place, 90 York Way, London N1 9AG after moving on 26 August 2008 from 40 Melton Street, Euston, London. The current Chairman is Sir Ian McAllister, also Chairman of the Carbon Trust and formerly Managing Director of Ford Motor Company Limited. Its chief executive is Iain Coucher. Its executive board is small.
On 3 October 2008, Sir Ian announced that he will not stand for reelection to continue as chairman of Network Rail. He has held this position for six years. In making the announcement, Sir Ian noted that as Network Rail moves to a "new phase in its development," it is appropriate that there be a new chairman to lead it there.
Following an initial period in which Network Rail established itself and demonstrated its competence in addressing the principal challenges of improving asset condition, reducing unit costs and tackling delay, the Government’s Rail Review in 2004 said that Network Rail should be given responsibility for whole-industry performance reporting, timetable development, specification of small and medium network enhancements, and the delivery of route-specific utilisation strategies (RUS). Some of these are functions which Network Rail already had; others - such as the obligation to devise route utilisation strategies - were transferred to Network Rail from the Strategic Rail Authority, a non-departmental public body, part of the UK government. (The SRA was subsequently abolished.)
Whilst owning over 2500 railway stations, it only manages 17 of the biggest and busiest railway stations in the UK. The other stations being managed by the various train operating companies (TOC).
Network Rail also secured a 15-year lease on Square One in Manchester, moving and recruiting 800 staff to one of Manchester's largest refurbished office spaces.
Control periods
For financial and other planning purposes, Network Rail works within 5-year "Control Periods", each one beginning on 1 April and ending on 31 March to coincide with the financial reporting year. These periods were inherited from Railtrack, so that the earlier ones are retrospective, and not necessarily of 5 years duration. They are as follows:
- Control Period 1 (CP1): 1996 - 2001
- Control Period 2 (CP2): 2001 - 2004
- Control Period 3 (CP3): 2004 - 2009
- Control Period 4 (CP4): 2009 - 2014
- Control Period 5 (CP5): 2014 - 2019
Private sector status, governance structure and accountability
Britain's Labour government denies that they have nationalised the rail network in order to prevent Railtrack's shareholders claiming the four year average price of Railtrack, about £10 per share, via the European Court of Human Rights. Instead, Railtrack's shareholders have been given only £2.60p. Simon Jenkins, former editor of the Times, wrote in a Times article about the Railtrack High Court case and Gordon Brown's aide, (now Lady) Shriti Vadera.
“Can we engineer the solution through insolvency,” she e-mails Stephen Byers in July, “and therefore avoid compensation under the Human Rights Act.”
There has been considerable controversy over whether Network Rail is a public-sector or a private-sector entity. Although officially a private sector organisation, the fact that its debts are underwritten by the government, and it is funded by the government, has led to it being described as being "nationalisation in all but name". It is also claimed that the government is keen for Network Rail not to be classified as a public sector organisation, as this would mean that the company's enormous debts (over £20 billion) would be counted as public expenditure liabilities.
The National Audit Office and the Statistics Commission both agree that Network Rail is a state owned company. The Office for National Statistics has repeatedly clashed with the National Audit Office and the Statistics Commission over whether the successor to Railtrack should be considered a private company - as the ONS believes - or included on the Government's books, as the NAO argues. The NAO says that as the Government is bearing the risk that would normally be borne by equity capital, and as it can appoint, through the SRA, a director who cannot be removed by members, Network Rail is effectively a subsidiary of the Government-controlled SRA. The Statistics Commission, set up by the Government to ensure that statistics are trustworthy, is known to question the basis of the ONS judgment that Government guarantees given to Network Rail are unlikely to be called in.
The UK Office for National Statistics insists that it is correct to have classified Network Rail as in the private sector. Nethertheless some mistakes in referencing the company as a public sector entity are occasionally made; in October 2002 in the House of Lords government minister Lord McIntosh of Haringey, in answering a question, said: “The Question is about the West Coast main line, and it is true that the cost has escalated from a little over £2 billion to £10 billion. That shows incredible lack of control and forethought by Railtrack. We must get a grip of it, and we are getting a grip of it. However, we were able to get a grip of it only after it went into administration and we were able to take the company back again.” In the House of Commons on 24 October 2005, the former Secretary of State for Transport Stephen Byers MP said: "... I make no apology for ... unwinding the Tory privatisation that was Railtrack" And on 1 February 2007, the Leader of the House of Commons (Jack Straw) said: "... rail privatisation ... was one of the most catastrophic reorganisations, which we have had to resolve, and having done that — The hon. Member for Wellingborough (Mr. Bone) may mock, but we brought Network Rail into public ownership ..." On BBC Radio 4's programme 'Any Questions' on 6 June 2008, the Secretary of State for Innovation, Universities and Skills John Denham MP was asked about Network Rail's directors' bonuses; referring to the company, he said: "... it was a very good thing that it was brought back effectively into public ownership after the total shambles that was created by dividing the railway up and privatising it."
The company is accountable to a body of members through its corporate constitution, to its commercial train operator customers through its contracts with them (the contracts are subject to regulatory oversight), and to the public interest through the statutory powers of the Office of Rail Regulation.
Since Network Rail does not have shareholders, its members hold the Board of Directors to account for their management of the business. Members are appointed by an independent panel and serve a three-year term. They have a number of statutory rights and duties which include attending annual general meetings, receiving the Annual Report and Accounts, and approving the appointment or re-appointment of Network Rail’s directors. Members have a duty to act in the best interests of the company without personal bias. They receive no payments other than travel expenses.
Members have clearly defined and limited powers; they do not run the company. Setting the strategic direction and the day-to-day management of Network Rail is the responsibility of the company’s Board of Directors. That direction must be consistent with the regulatory jurisdiction of the Office of Rail Regulation, and with the requirements of its contracts. The Office of Rail Regulation in turn operates within the overall transport policy set by the UK Department for Transport and the Scottish Government, including as to what the Government wants the railway industry to achieve and how much money the Government is prepared to put into the industry. This means that the degree of Government influence and control over the company is higher than it was before these enlargements of the powers and role of the Government were introduced by the Railways Act 2005.
At any one time there are around 100 members in total, drawn from a wide range of industry partners and members of the public. There are two general categories of membership, industry members comprising any organisation holding a licence to operate on the railway or preferred bidder for a railway franchise, and public members who are drawn from the wider stakeholder community.
Network Rail's main customers are the 21 passenger and four freight train operating companies, who provide train services on the infrastructure that the company owns and maintains. Network Rail does not run passenger services directly; ultimately
both Network Rail and the train operating companies have the shared responsibility of delivering train services to the travelling public.
Monitoring Network Rail's performance
The Office of Rail Regulation monitors Network Rail's performance on a continuous basis against targets established by the regulatory authority in the most recent access charges review (2003), against obligations in the company's network licence and against forecasts in its own business plan. If performance is poor,the company will face criticism and possible enforcement action from its commercial customers (undertheir contracts) and from the Office of Rail Regulation (enforcing the company's network licence). It may also be criticised by its members in general meeting.
In the end of year report 2005/06, the ORR reported on train performance that:
"Train Performance: Good progress has been made in improving punctuality.
The Public Performance Measure (PPM) of 86.4% in the year is up from
85.5% (refreshed) at the end of the third quarter (Q3) and up from 83.6% last
year."
Profit
1.For the first time in Network Rail's history a profit was made this year- allowing money to be reinvested into the network.
2.Train punctuality is at a seven year high.
3.Passenger numbers are at an all time high
Network Rail and National Rail
Network Rail should not be confused with National Rail. National Rail is a brand used to explain and promote a network of passenger railway services.
The two networks are very similar, but not exactly the same. Most Network Rail lines also carry freight traffic, some lines are freight only, and a few lines that carry passenger traffic are not part of the National Rail network (for example High Speed 1, Heathrow Express and the London Underground). Conversely some National Rail services operate over track that is not part of the Network Rail network (for example where they run on London Underground track).
Infrastructure maintenance
In October 2003 Network Rail announced that it would take over all infrastructure maintenance work from private contractors, following concerns about the quality of work carried out by certain private firms, and spiralling costs.
February 2004 saw the opening of an operations centre at Waterloo station in London, operated jointly by Network Rail and the train operating company South West Trains. This was the first full collaboration of its kind since privatisation, and it is regarded as a model for other areas of the network, with a further six integrated Network Rail + TOC Control Centres having opened since then, at Blackfriars, Croydon (Leading Control for First Capital Connect), Swindon, Birmingham, Glasgow and, most recently, Liverpool Street.
Track renewal, the ongoing modernisation of the railway network by replacing track and signalling, continues to be carried out by private engineering firms under contract. The biggest renewals project is the multi-billion-pound upgrade of the London to Glasgow West Coast Main Line that has recently been completed.
Network Rail initially sub-contracted much of the work and the site to private Infrastructure Maintenance Companies such as Carillion and First Engineering. Other sub-contractors are used on site for specialist work or additional labour. These include:
- Sky Blue
- Balfour Beatty
- Laboursite
- BCL
- Atkins (Atkins Rail)
Since 2003 Network Rail has been building up significant in-house engineering skills, including funding of apprenticeship and foundation degree schemes. Network Rail reports significant savings resulting from the initial transfers of work away from contracting companies. Additional contracts were taken back by Network Rail after the serious accident at Potters Bar and other accidents at Rotherham and King's Cross led Jarvis to pull out of the track repair business. Shortly after this, and due to other failures by maintenance companies, Network Rail took control of many more maintenance duties. Telecomms maintenance is set to come full circle in April 2009 with the bringing in house of the staff of Thales Telecom Services Ltd (formerly British Rail Telecommunications (BRT)).
In 2006, Network Rail made public a high-tech plan to combat the effects of slippery rail. This plan involves the use of satellites for tracking trouble areas, water-jetting trains and crews using railhead scrubbers, sand sticks and a substance called Natrusolve, which dissolves leaf mulch.
All workers working on, near or trackside have to undergo a Personal Track Safety assessment (re-assessed every two years) Network Rail workers undergo an assessment every year as part of AITL (Assessment In The Line). The AITL requires each worker to go through questions on a computer based program on all the competencies held.
The safety record of the company has been marred by the Grayrigg derailment, when a Virgin express crashed at Grayrigg in Cumbria on 23 February 2007. The train was derailed by a faulty set of points. Network Rail have admitted responsibility for the accident. The RAIB investigation is ongoing, and criminal charges may be brought.
In September 2007 it was announced that the number of track renewal contractors will be reduced to four from the current six.
These are now
- AmeySECO
- Balfour Beatty
- First Engineering Ltd.
- Jarvis PLC
The GRIP process
For investment projects, as opposed to routine maintenance, Network Rail has developed an eight-stage process designed to minimise and mitigate risks. This is known as the Guide to Railway Investment Projects (GRIP). The stages are as follows:
- output definition;
- pre-feasibility;
- option selection;
- single option selection;
- detailed design;
- construction, test and commission;
- scheme hand back;
- project close out.
Each stage delivers an agreed set of outputs to defined quality criteria.
Fleet details
Network rail operate a large variety of DMUs, locomotives and rolling stock to perform safety checks and maintainence. AS well as the multiple units and locomotives detailed below Network Rail own and operate a large stock of rolling stock for particular testing duties and track maintainence. Network Rail also hire frieght locomotives from EWS and Freightliner among others to operate engineers trains at weekends. DRS provide a number of locomotives to power test trains around the network when Network Rail locomotives are unavailable or busy elsewhere.
2007 business plan
In April 2007, Network Rail published its Business Plan complete with route maps showing the entire network divided into 26 Strategic "Routes", which in most cases might be more accurately described as geographical areas. They are as follows:
- Route 1 - Kent
- Route 2 - Brighton Main Line and Sussex
- Route 3 - South West Main Line
- Route 4 - Wessex Routes
- Route 5 - West Anglia
- Route 6 - North London Line and Thameside
- Route 7 - Great Eastern
- Route 8 - East Coast Main Line
- Route 9 - North East Routes
- Route 10 - North Trans-Pennine, North and West Yorkshire
- Route 11 - South Trans-Pennine, South Yorkshire and Lincolnshire
- Route 12 - Reading to Penzance
- Route 13 - Great Western Main Line
- Route 14 - South and Central Wales and Borders
- Route 15 - South Wales Valleys
- Route 16 - Chilterns
- Route 17 - West Midlands
- Route 18 - West Coast Main Line
- Route 19 - Midland Main Line and East Midlands
- Route 20 - North West Urban
- Route 21 - Merseyrail
- Route 22 - North Wales and Borders
- Route 23 - North West Rural
- Route 24 - East of Scotland
- Route 25 - Highlands
- Route 26 - Strathclyde and South West Scotland
Railway stations
Network Rail owns more than 2500 railway stations on the national rail network. Management and operation of most of them is carried out by the principal train operating company serving that station, but Network Rail manages and operates 18 of the largest and busiest stations directly. The Network Rail-managed stations are:
Directors
Executive directors
| Title | Person | Details |
|---|
| Chief Executive | Iain Coucher | On 12 December 2006, John Armitt announced that he would retire as Chief Executive of Network Rail at the end of July 2007. Iain Coucher was the previous deputy chief executive. | | Group Infrastructure Director | Peter Henderson | | | Group Finance Director | Ron Henderson | |
Peter Henderson and Ron Henderson are not related.
Other directors
| Title | Person | Details |
|---|
| Group Company Secretary | Hazel Walker | | | Group Director, Government and Corporate Affairs | Victoria Pender | | | Director, Planning and Regulation | Paul Plummer | | | Director, Safety & Compliance | Julian Lindfield | | |
Training and development
Network Rail has several training and development sites around Britain. These include sites in Newcastle and Larbert which provide refresher courses, and train staff in new equipment. Advanced Apprentice Scheme trainees are trained at HMS Sultan in Gosport, using Royal Navy facilities although due to recent bad behaviour this may be getting cancelled. Network Rail bought a residential centre from Cable and Wireless in the Westwood Business Centre near Coventry for leadership development. The company and other industry partners such as Grant Rail and Balfour Beatty, also operate a Foundation Degree in conjunction with Sheffield Hallam University.
In 2008, Network rail will pilot its first qualification in "track engineering". It has been given permission to develop courses equivalent to GCSE and A-levels.
Telecoms assets
This section briefly describes the assets that comprise Network Rail’s telecom systems and networks.
The fixed bearer network is at the core of railway communications and thus is vital to the
operation of the railway. It provides essential circuits for signalling and electrification control systems, train radio systems, lineside communications, level crossing CCTV, customer
information systems as well as more general IT and business telephony needs.
The fixed bearer network infrastructure comprises of transmission systems and telephone
exchanges linked by a fibre optic and copper cable network that is located mainly within
trackside troughing routes.
Network Rail has several analogue radio networks that support mobile communication applications for drivers and lineside workers. These radio networks comprise base stations, antenna systems and control equipment.
The National Radio Network (NRN) was developed specifically for the operational railway; it provides radio coverage for 98% of the rail network through500 base stations and 21 radio exchanges. The NRN offers full access to the British Rail Telecommunications telephone network; public service telephone network (PSTN) dialling, including international, is also available. It can provide 'dedicated' open channels on talk-through mode for incident management and an override priority facility to ensure that all emergency calls are immediately connected to the railway's Train Control Offices (TCO) and Electrical Control Rooms (ECR).The NRN and ORN are based on analogue radio technology and provide a high level of coverage throughout the railway network for mobile communication at the trackside. The ORN offers facilities for driver emergency communication with the local train control office.
The RETB system is based on similar technology as the NRN and ORN but provides data
communication for signalling token exchange as well as voice communication.
Secure communication between drivers and signallers is provided by the Cab Secure Radio (CSR) systems located in various parts of the country. This application of analogue radio technology is deigned to offer complete radio coverage at the trackside within the limits of its deployment.
Fixed communication at the trackside is provided by lineside communication systems. These
systems are primarily provided for signallers’ communication with drivers and the public
through telephones located on signal posts and at level crossings. Signal Post Telephones (SPTs) and other lineside phones are linked to telephone concentrators at the signal box. Special self-monitoring systems (PETS) are also provided for high-risk level crossings.
CCTV systems are provided on platforms where driver only operation train services are
operated and at some stations with sub-surface platforms. These self-contained systems
comprise of cameras, monitors, cabling and control equipment.
Voice recorders are also classed as telecoms assets.
Asset information
This section gives a brief insight into the origin of Network Rail’s telecom assets and why they are in the condition they are today.
In the late 1960s the National Telecoms Plan (NTP) was launched which brought about a
centrally managed (BRHQ) project to install a nationwide co-axial cable based 4 MHz system of
transmission bearer services for voice and on-line real time data networks. This was
completed in 1972.
The fixed network as we know it today was installed piecemeal as part of BR’s electrification
and signalling projects between 1972 and 1993. Fault reporting is localised and system failure
is generally only uncovered as a consequence of customer complaint. The fixed telecommunications network consists of a wide variety of mostly old technology, some of
which is obsolete.
As a result of the privatisation process, a significant proportion of the fixed telecommunications network is now provided through lease agreements with Global Crossing and it is maintained by the former BRT (now Thales Group).
Much of the network is now life expired and its renewal is the responsibility of Network Rail.
The earliest CSR system was installed in Strathclyde in 1984 and other systems exist in East Anglia, Southern, GW and Midlands Zones and on Merseyrail. Typical lives for such systems are given as 10 or 15 years and thus the Strathclyde system can already be considered to be life expired. Other early systems are approaching life expiration and with some parts now
obsolete there is a significant risk and maintenance liability present. This can manifest itself in operational difficulties and high operation costs.
The NRN dates back to the 1980s, although base stations have been added as recently as
1999. Studies show the system is life expired, but life could be extended until 2008. The
obsolescence of critical parts and the lack of further mobiles mean that costly reverse
engineering is now required to keep the system going.
SPT concentrators exist in all but the smallest of signal boxes. A variety of technologies are in existence and obsolescence and system support issues drive renewal. Modern system life is
estimated at 10-15 years although some systems over 25 years old are still in operation.
FTN and GSM-R
GSM-R radio systems are being introduced across Europe under EU legislation for interoperability. In the UK, Network Rail have established a stakeholders board with cross industry representation to drive the UK implementation of GSM-R to replace the National Radio Network (NRN) and Cab Secure Radio (CSR) systems currently in use.
Rail Safety and Standards Board (RSSB) are revising the current train to shore radio standard GO/RT3410, and renumbering it as GE/RT8080, and developing a new standard GE/RT8081 that contains requirements that are specific to GSM-R. The Railway Group Standards are being developed to support the European Functional Requirements Specification (FRS), and should be read in conjunction with this document.
There have been two rounds of consultation on these documents, and a final round of consultation is planned for the summer of 2003, with the intention of publishing the standards in December 2003.
The Network Rail National Project for the introduction of GSM-R plans for the radio service to be live nation-wide by 2007, with the current radio systems switched off at the end of 2009.
The Fixed Telecomm Network is the backbone for the GSM-R and is built on Alcatel PDH and SDH rings.
A fully-functional GSM-R system trial started on the North Clyde Line in Scotland in 2007. For some years before these trials commenced however, GSM-R has been in use for voice-only purposes (known as the 'Interim Voice Radio System' (IVRS) ) in some locations where axle counters are used for train detection, for example parts of the West Coast Main Line (WCML) between Crewe and Wembley. Britain’s GSM-R network should be fully operational by 2013 at a cost of £1.2 billion. This cost though does not include the WCML.
The WCML transmission equipment is Marconi and is maintained by Telent.
IP / Ethernet Network
In addition to SDH transmission, an IP / Ethernet network is soon to be constructed in the Central Scotland area initially to support Long Line Public Address systems in Strathclyde and Remote Condition Monitoring on the express Edinburgh to Glasgow route. This network (core and access) runs over spare FTN optical fibres at Gigabit speeds and is housed in FTN buildings where it shares rack space and power. Ethernet Extenders using G.SHDSL are proposed for reaching lineside assets over telecoms copper cables. The initial deployment between Glasgow and Edinburgh is expected to be completed in July 2009. The network will have significant spare capacity and will be able to support the introduction of additional IP or IPv6 services as required for railway operational purposes.
Roll out
Basically the Network Rail GSM-R system is being rolled out nationally alongside the Fixed Telecom Network (FTN). This will replace the existing CSR, NRN and legacy telecoms system (formally BRT/Racal/Thales/Global Crossing).
This consists of 2500 GSM-R base sites and 11,000miles of fibre optic and copper cable linking together a DWDM SDH digital backbone network, consisting of core nodes, access nodes, switches, etc.
The GSM-R BTS equipment is Nortel, including the MSCs, BSCs, HLR, VLR. The sub-system equipment is .
The FTN equipment is Alcatel DWDM with SAFT UPS power systems.
The masts are produced by Francis & Lewis, with antennas by Kathrein. The Relocatable Equipment Building (REBs) are made by and fitted out by Alan Dick UK Ltd in Scunthorpe (installed with Alcatel access node & Nortel BTS).
The system is being rolled out four ways:
- Enabling works - construction of GSM-R base sites, tower build and rigging, collection, delivery and installation of the REB and powering up.
- REC supply - separate contract to get mains power to the site by whatever means.
- FTN works - survey, clearance and renewal of the line-side concrete S&T troughing, installation of joint bays, loop bays, break-out boxes, UTXs, track equipment housings (TEH), cable laying (copper, fibre, aluminium screen cable), jointing & splicing, testing.
- Installation of Main switches, NOC, TEC, etc.
To date the trial GSM-R system has been rolled out in the Strathclyde area (19 base sites covering 50 km), with the TEC/NOC/Switch at Stoke on Trent. Main switch/HLR/VLR at Didcot, with a fallback at Peterborough. There have been several contracts and schemes awarded to roll out all over the country (Kent, Yorkshire, Birmingham, Walsall, M4 corridor, South Wales, Strathclyde, Dumfries & Galloway).
As part of the Modular approach being adopted by Network Rail and in conjunction with the new 15m mast policy, a new hinged mast has been developed by street lighting specialist
Network Rail is currently fitting out a test train at Derby it has purchased for RSV testing of the GSM-R network. The train is formed from ex Gatwick Express stock.
Safety recommendations
GSM-R addresses the relevant recommendations from several accident inquiries:
GSM-R will be the bearer for the ERTMS signalling being introduced in the next few years.
Track safety
Many track safety initiatives have been introduced in the time Network Rail has been responsible for this area. The latest, announced in December 2008, known as "All Orange", states that all track personnel must not only wear orange hi-vis waistcoats or jackets, but must also wear orange hi-vis trousers at all times when working on or near the track.
This new safety ruling will come into force on 1 January 2009 for maintenance and property workers and on 1 April 2009 for infrastructure and investment sites.
External links
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- Guardian article from 20 July 2001 explaining the European Human Rights Nationalisation Law: .
- Sunday Times article from 17 July 2005 by Simon Jenkins about the Railtrack High Court case, which explains that the Government wanted to work its way around the nationalisation law: .
- The Office for National Statistics in row with the National Audit Office over Network Rail's status.
- Telegraph article from 18 November 2002 about Network Rail having a BBB credit rating, as opposed to Railtrack's AAA one: .
- Telegraph article from 2 November 2002 about a row between the Office for National Statistics and Lord Oakeshott over Network Rail's status: .
- Telegraph article from 1 November 2002 about a row between the Office for National Statistics and the Statistics Commission over Network Rail's status: .
- Web site about Railway Telecomms: .
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