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Friday 6 Jun 2008

TRAIN PUNCTUALITY REACHES ALL TIME HIGH IN A YEAR OF IMPROVEMENT ON BRITAIN'S RAILWAYS

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National

Record levels of train punctuality coupled with record levels of investment and further cost cutting are the hallmarks of the past 12 months as Network Rail today published its preliminary results for the year to 31 March 2008.

Train punctuality is at its highest ever, with 89.9% of trains arriving on time in the year 2007/8, and by the end of April 2008 this figure had exceeded 90% for the first time since records began*.

Unveiling the results, chairman Ian McAllister said: "Overall, the last year has been a good one for Network Rail and the industry as a whole, with passengers seeing a better service.

"Train performance is at an all time high, a £4bn investment programme has been delivered, delays caused by the infrastructure have been cut and costs have also been reduced.

"No form of transport is safer than rail and record levels of investment are being pumped into the network, with a doubling of spending on schemes designed to build a bigger, better railway to help meet the growing demands of passengers and freight users.

"In addition, lessons have been learnt following the engineering overruns at New Year. Changes have been made to make the planning and execution of such big improvement schemes more robust.

"Alongside maintaining high levels of safety and train punctuality, Network Rail has continued to make savings, with the costs of running the railway seeing a further £178m reduction, in real terms, this year."

Performance results

• Train punctuality is at its highest level since records began with an average of 89.9% of trains arriving on-time over the period. This compares to 78.6% when Network Rail became infrastructure operator in October 2002
• The significant 90% mark was reached at the end of April 2008 when train punctuality for the previous 12 months reached 90.02%
• Network Rail attributed delays were reduced by one million minutes over the last year. A 10% reduction to 9.5m down from 10.5m - the lowest level for a decade

Financial highlights

• A profit (after tax) of £1.2bn, up from £1bn compared to 2006/7, all of which is reinvested in the railway
• Turnover was £5.96bn, an increase of £165m against the previous year
• Operating profit increased to £2.4bn, up from £2.3bn
• Operating costs (before depreciation) are down by £178m in real terms
• Net debt stands at £19.7bn, up from last year’s £18.4bn

With no shareholders, Network Rail's unique structure enables it to re-invest all of its profits back into the railway. The size of these profits are taken into account and regulated by the Office of Rail Regulation when deciding upon the funding the company needs to carry out its activities.

Group finance director Ron Henderson said: "In financial terms, this year has seen stable profits, with consistent revenues, and costs continuing on a downward trend. Strong budgetary control, together with our improved understanding of the costs bases and drivers, put us in good shape for the challenges ahead in the next control period."

Mr McAllister concluded: "Today's railway is a thriving and successful one. This success has been achieved through close working relationships with our customers - the train operators. They have our commitment to focus on improving the railway for both passengers and freight users.

"At the core of Network Rail's achievements over the past year are its people. In all my years in industry, I have never met a more dedicated and committed workforce."