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Thursday 12 Jun 2014

Record investment in Scotland's railways as Network Rail publishes its full-year results

Region & Route:

Scotland’s Railway: Scotland

Almost £600m was invested in improving and expanding Scotland’s rail network over the last 12 months, Network Rail revealed today in its full-year results for the 2013/14 financial year.

The record total, which was part of £7bn invested GB-wide, was an increase of 45% on capital expenditure in Scotland over the previous year.

The investment has provided new stations, new platforms, new lifts, new information systems, new concourses, new footbridges and new track to build a bigger, better railway.

Key investment projects during the 2013/14 year included the opening of the new £25m Haymarket station, the completion of the £80m electrification of the Glasgow-Cumbernauld line, the start of main construction works on the £294m Borders Railway and the £5m renewal of Shore Road bridge in Stirling.

Over the same 12-month period, the number of people travelling by rail GB-wide grew by 86m, meaning passenger numbers have now doubled since 1995* with a further 30% growth predicted over the next 10 years.

Mark Carne, chief executive, said: "We are in the middle of a rail renaissance, with record levels of passenger numbers and record levels of investment. This flourishing sector is investing heavily to improve the railway for today and for tomorrow.”

Over the year, 90% of train services GB-wide ran to time, with 91.4% arriving to time within Scotland, both below the targets set by the ORR.

While some of this shortfall was caused by congestion as the railway witnessed growth of 5.7% in passenger journeys during the year, extreme weather and slower improvements in asset reliability also played a part.

Mr Carne continued: “With a million more trains on the network than ten years ago, there are inevitable challenges - we are determined to do more to improve train reliability in the face of these challenges. We will increase the reliability of the network and make it more resilient to climate change. Continued investment in our railway will also be key if we are to grow our economy and deliver a better, improving, expanding rail network for millions of daily users."

Financial highlights:

• Capital expenditure was £6,873m (2012/13: £5,050m) contributing to an increased asset value of £49,833m (£46,411m last year)
• Revenue was £6,333m (£6,197m in 2012/13)
• Profit after tax was £1,256m (up 86%** from £677m) with all profits reinvested
• Operating profit was £2,001m (£2,207m last year)
• Net debt at year end was £32,987m (£30,358m) with a gearing ratio of 65%, comfortably within the regulator’s 75% limit

Patrick Butcher, group finance director, said: “The last year has been one of operational and financial challenges. We have been disappointed with train performance but celebrate continued strong growth, savings made, swiftly repairing the railway following extreme weather and hundreds of projects completed to improve and expand the railway.

”Our determination cannot waver over the coming years as we look to restore train punctuality to record high levels and wisely invest £38bn to improve and expand our railway for passengers and businesses across Britain.”

Safety:

• Britain's railway has one the best passenger safety performances in Europe
• Level crossing risk has been reduced by 31% and 804 level crossings have been closed over the last four years
• A further £100m has been earmarked over the coming years to continue the closure programme and make further safety improvements at crossings

Performance results:

• In 2013/14, 90% of passenger trains GB-wide ran on time, down on 90.9% last year
• Over the last 10 years Network Rail has added over a million more train services a year, increased passenger journeys by half a billion and doubled the number of passengers arriving on time
• Passenger growth is running at double the rate forecast in 2009, with a 5.7% increase to 1,587m during the year