Brian Freemantle, Head of Rolling Stock Policy & Contracts · Rolling stock has a much longer...

Moving Britain Ahead

Designated Lines Seminar Brian Freemantle, Head of Rolling Stock Policy & Contracts.

March 16 Designated Lines Seminar 1


Island Line

2

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March 16

Designated Lines Seminar


Growth

3 March 16



Passenger Rolling Stock

4 March 16



Challenge of Feast & Famine

5 March 16



Manufacturers

6 March 16


Regular Meetings and discussions.

Bombardier Transportation

Siemens

Hitachi

Alstom

CAF

Stadler

WABTEC – Refurbisher.

Knorr Bremse - Refurbisher


Market Relationships

7 March 16


Rolling stock has a much longer operating life (typically 30-35 years), so in almost all cases train operating companies lease trains from private sector leasing companies.

Since privatisation there have been changes of ownership in these companies (referred to as ROSCOs). The owners are now, in general, long term asset owners:

• Angel: AMP Capital 65%, PSP Investments 30%, International Public Partnerships 5%. Angel owns a fleet of around 4,600 passenger vehicles.

• Porterbrook: Alberta Investment Management Corp, Allianz Capital Partners, EDF Invest, and Hastings Funds Management. Porterbrook owns around 4,000 vehicles.

• Eversholt: CK Investments. Eversholt owns approximately 3,500 passenger vehicles.

33%

27%

32%

8%

Ownership of Existing Fleets

Angel

Eversholt

Porterbrook

Other


Future Requirements – source Industry Rolling Stock Strategy

8 March 16

Designated Lines Seminar 0

5,000

10,000

15,000

20,000

25,000

2015 2019 2024 2029 2034 2039 2045

G. Very High Speed Electric

F. Long Distance Electric

E. Middle Distance Electric

D. Shorter Distance Electric

C. Long Distance Self-Powered

B. Middle Distance Self-Powered

A. Shorter Distance Self-Powered

13%

23%

16%

48%

Age of Existing Fleets

BR 1970s

BR 1980s

BR 1990s

Post Privatisation


Rolling Stock Perspective

9 March 16



The Governments Market Led Policy: The Why.

10

Market driven approach.

Approaching a market with surplus

rolling stock.

Off Balance Sheet.

Current rates of financing very good.

Competition for new vehicles keen.

Rolling Stock refurbishment all UK

supply chain.

Each competition is different.

March 16



The reasons for the Government Led Policy

11

Ongoing level of investment in the fleet

(circa £8.5bn).

Market procures relatively rapidly.

Lease costs so Government capital is

freed up.

Long term asset owners plan beyond

end of franchise.

Risk transfer.

Ultimately though the SoS has a legal

duty to keep the railway running.

March 16



Franchising & Direct Awards

12

GTR delivered 108 Class 387 electrostars and will deliver 150 vehicles to replace the Moorgate vehicles.

Essex Thameside have an obligation to deliver 68 new vehicles.

FGW will deliver AT300 vehicles for West of England.

SWT will deliver 30 x 5 car Class 707 vehicles for capacity.

Northern will deliver 281 new DMU / EMU vehicles.

TPE will deliver new vehicles as part of there Franchise obligations.

March 16



Diesels / Hybrids

13

Vivarail – Class 230

Electric Trains fitted with Diesel Engines.

Stadler Hybrid.

CAF Diesel.

IEP Bi-Mode.

March 16



Challenges

14 March 16


Waste onto tracks

PRM TSI – 2020 Deadline

Pacers:.

Wi-Fi: the Government has made clear that this should be offered free to passengers and this is now a

requirement of all future franchises.


Challenges

15

Electrification and its delivery to enable cascading of vehicles.

HS2 delivery and impact on national network.

ERTMS and roll out as part of the technological railway.

March 16



Resource Challenge

16 March 16



Thank you.

17 March 16


Brian Freemantle, Head of Rolling Stock Policy & Contracts · Rolling stock has a much longer...

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