report front sheet - West Yorkshire Combined Authority

REPORT FRONT SHEET
AGENDA ITEM: 9
Combined Authority: 12 March 2015
Report Title: Rail North and Transport for the North
Report Summary
This report provides an update on the re-franchising of Northern and TransPennine services through
Rail North working with the Department for Transport. It also provides an update on the proposed
Northern transport strategy being developed through the Transport for the North Partnership.
Possible Questions
1. Does WYCA agree that the franchise specifications for Northern and TransPennine represent a
step change from the current position and illustrate the benefits of devolution?
2. Are there any priorities for improvement not included in the base franchise specifications that
WYCA would like to highlight to bidders?
3. Is WYCA content to host the proposed Rail North Partnership in Wellington House?
4. What are the WYCA priorities for the future Transport for the North work programme?
Originator: David Hoggarth
Director Development
ITEM 9
Report to:
Combined Authority
Date:
12 March 2015
Subject:
Rail North and Transport for the North
1.
Purpose
1.1.
To provide the WYCA with an update on Transport for the North and Rail North.
2.
Information
Transport for the North
2.1.
Transport for the North is producing an initial transport strategy for the North in
March 2015 with the aim of having a commitment included in the Budget on 18
March.
2.2.
Transport for the North is a partnership between Northern city regions/ Combined
Authorities and the Department for Transport working closely with Highways
England (formerly the Highways Agency) and Network Rail. The remit of the initial
transport strategy is to build on the ‘High Speed 3’ proposal for East-West
connectivity set out in the One North work, but also to reflect the needs of other
modes including the strategic road network, freight, travel within the city regions
and integrated transport services (customer service/smart ticketing).
2.3.
The initial strategy is being developed through a series of workstreams. Leeds City
Region and WYCA have an officer representative on each workstream and are
leading two of these (City Region Connectivity and Integrated Transport Services).
WYCA representatives have sought to highlight the importance of improving
connectivity beyond the HS2/3 hubs in Leeds and York to ensure that the whole city
region benefits from the proposed investment. Governance of the work is through a
Partnership Board. WYCA is represented on the Partnership Board by Cllr Keith
Wakefield and Roger Marsh.
2.4.
The output from the workstreams has been used to inform a high level strategy
document. A first draft was considered by the Partnership Board at their second
meeting on 26 February. The Board asked for further development of the draft and a
revised version was in production at the time of writing this report. Following the
Partnership Board meeting, a briefing session was held with the district Portfolio
Holders and Chair of the Transport Committee.
2.5.
A further verbal update will be provided at the meeting.
Rail North
2.6.
The Invitations to Tender for the Northern and TransPennine franchises were issued
on 27 February 2015. Through the partnership working with the Department for
Transport, Rail North has positively influenced the specifications for the two
franchises to deliver many of the enhancements sought.
2.7.
A detailed briefing note was provided to all WYCA members (further copies are
available from Legal and Democratic Services). The main headlines of the
specification are:
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Removal of all the ‘pacer’ railbus trains;
ordering at least 120 new-build carriages;
modernising every train operating on the Northern franchise;
enhanced services on a number of routes (including the Calder Valley, Pontefract
and Harrogate Lines);
more capacity to cater for growth and reduce crowding;
providing more services for commuters, during off-peak times and on Sundays;
investing at least £30 million to improve stations across the Northern franchise;
creating a Customer and Communities Improvement Fund (CCIF) to invest
around £13.8 million to deliver benefits for passengers; and
introducing free wi-fi on all Northern trains by 2020 at the latest.
2.8.
The specification in the Invitation to Tender represents the minimum that bidders
need to provide. Bidders will be encouraged to go above and beyond the minimum
specification as part of the competitive bidding process. WYCA will be using RailPlan
7 (the agreed rail strategy) to set out to bidders areas where further enhancements
are desirable.
2.9.
Rail North Leaders met on 3 February and received an update on the work in
progress to develop a formal partnership agreement between Rail North Ltd and the
Department for Transport. The process of managing the train operating companies’
delivery of both franchises will transfer from DfT into a new partnership
management team based in the north of England. This team will also coordinate
investment and service development across both franchises. Leaders have agreed
that this management team would be hosted in Leeds by WYCA.
2.10. It is planned that WYCA will host the management team in Wellington House in a
similar way that WYCA currently hosts the pteg Support Unit. The administrative
costs of hosting the management team will be shared by all partners. Budgets and
funding are currently under development, but the costs of the management team
will be funded through DfT and the Rail Grant currently paid to PTEs/Combined
Authorities. A further report on the financial arrangements for Rail North and the
partnership will be brought to a future meeting of the WYCA once the Partnership
Agreement has been finalised.
3.
Financial Implications
3.1.
The financial arrangements associated with the establishment of Rail North are
currently being finalised. The principle set out in the draft Partnership Agreement is
that the cost of establishing the new management team will be shared between Rail
North and the DfT. The Rail North costs will be shared between the PTEs Combined
Authorities and funded through the existing Rail Grant (paid by DfT). WYCA will need
to make savings in the activities currently funded through the Rail Grant in order to
re-direct a proportion to the partnership. This is in line with the principles of
establishing Rail North where more activities will be undertaken at the pan-northern
level rather than locally.
4.
Legal Implications
4.1.
None as a result of this report
5.
Staffing Implications
5.1.
The partnership approach and new franchise specification will change the roles of
WYCA staff currently engaged in rail franchise activities. In particular work related to
the rail service quality regime currently undertaken by WYCA staff will transfer to the
future train operator. Discussions have commenced with relevant staff.
5.2.
As host authority for the partnership arrangement, WYCA will act as employer for
those posts employed within the management team which are not filled by
secondees from DfT or another Rail North authority. The staffing arrangements are
currently being developed and will be reported to the Authority along with the
financial implications.
6.
Consultees
6.1.
The Acting Director, Transport was consulted in the preparation of this report.
7.
Recommendations
7.1.
The current position on Transport for the North is noted.
7.2.
That the progress on rail franchising is noted.
7.3.
That WYCA acts as host for the proposed Rail North/ DfT Management Team as set
out in paragraph 2.10.
8.
Background Documents
8.1.
None.