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Notes to editors

NOTES TO EDITORS:

• Sir Roy's study recognises Network Rail's programme of change saying: "Over the last year, the study has observed significant changes in the orientation of Network Rail….. Network Rail is now clearly committed to change, to a new focus on its customers' needs, and to greater levels of safety, transparency and accountability."

• The study also recognises the importance of devolution - Network Rail's move to push power and decision making away from the centre - and also recognises the need to retain a national infrastructure manager, saying: "The study supports strongly the already announced proposals by Network Rail to move towards a more devolved and decentralised structure for its operations.. ….the study recognises that there may be economies of scale in maintaining some central infrastructure management functions….these should remain with a central Network Rail structure which would facilitate seamless operation of the network, ensure best use of network capacity and provide system-wide co-ordination and assurance."

• Network Rail has already embarked on a significant programme of change, including:
  • Devolving power and decision making from the centre to ten geographic routes better able to respond speedily to the needs of customers and passengers
    • Two routes have already received devolved power - Scotland and Wessex
    • Three more routes will go-live in the autumn, with the rest to follow by spring 2012
• Network Rail is introducing an new way of working with its suppliers, bringing suppliers on-board much earlier in a project's life so that the company can better harness the expertise and experience of these world-wide companies to deliver schemes more efficiently
• Network Rail has started negotiations with some train operators about setting up commercial alliancing agreements where capacity enhancing schemes can be unlocked and management co-ordinated to reduce costs and share benefits
• Network Rail is looking to introduce external benchmarking and competition into some of its activities to enable it to move out of areas that others can do better its or enhance those areas that already demonstrate world class delivery
• In CP3 (2005-2009) Network Rail cut the cost of running the rail network by some £6bn and is targeting a further £5.2bn of efficiencies in CP4 (2009-2014) and is making very good progress