Media centre

Tuesday 4 Apr 2006

NETWORK RAIL LAUNCHES 2006 BUSINESS PLAN:

Region & Route:

| Wales & Western: Wales & Borders

| Wales & Western

• HEAVY INVESTMENT IN WALES’ RAILWAY • NEW MONEY TO GROW THE RAILWAY With passenger numbers growing steadily and heavy investment coming in, there was good news for Wales today as Network Rail unveiled its Business Plan 2006. Robbie Burns, Network Rail’s Western Route Director, said: “We are setting out our ambitious agenda for the railway in Wales - we’re showing that real improvements have been achieved this year and we’re setting out plans that will deliver even more.  “Our £400 million investment into the resignalling of South Wales over the next decade, along with our commitment to working closely with the Welsh Assembly Government and the train operators, will help us deliver a railway to the people of Wales that they will be proud of.” Highlights of the 2006 Business Plan:

• £400m additional investment to grow the railway
  • £200m government-funded Network Rail Discretionary Fund, plus;

o        £200m of Network Rail’s own money that it is investing in growing the network ·         36% increase on  renewals investment over next three years compared to last three - £7.2 billion vs £5.4 billion

• £75 million allocated for renewals in Wales & Borders
• Ambitious plans to create better stations for passengers, including plans for Paddington & Newport

·         Over the last three years some £355 million has been taken out of operating and maintaining the network

• By end of the control period (2008/9) we will have reduced the cost of operating and maintaining the network by over £600 million

• 22% reduction in unit costs of renewals will have been delivered by March 2007
• Passenger numbers carried in the south Wales Valleys have grown by 62% between 1998 – 2004
• Continued high levels of investment in providing greater capacity and reduced journey times via a large number of schemes across Wales
• Ten year strategy to strengthen the coastal sea defences at various locations along the Welsh coastline

      Overall, the Business Plan announces that Network Rail is investing an extra £400 million in the railway over the next three years to fund enhancements.  £200 million is coming from Government in the form of the Network Rail Discretionary Fund and £200 million is new money from Network Rail generated as a result of it beating its targets.  This money can be reinvested in the rail network rather than given to shareholders due to Network Rail’s status as a company limited by guarantee. The new cash pot will fund or part-fund enhancements that will deliver improvements for passengers and freight, helping to deal with the continuing growth in rail. For example, in Wales, a large number of speed restrictions will be removed from parts of the railway line by 2009, thus improving overall reliability for the passenger. Robbie Burns said: “In the last three years we have focussed on getting all the basics right: creating the right structure; improving performance; controlling and reducing costs; developing our people; developing relationships; and being safe in everything we do. “We are now looking forward, and make no mistake – our plans are ambitious for a better performing and more efficient rail network in Wales, meeting the aspirations of our customers and growing the railway.”