Memorandum by Metronet (LU 10)
Metronet welcomes the opportunity to make this
submission to the Select Committee. We are committed to openness
in our relationship with all stakeholders including Government,
Parliament, the Mayor, TfL and the Greater London Authority.
The purpose of this memorandum is to provide
written information in advance of Metronet's appearance at the
Committee's oral evidence session on Wednesday 28 November. This
document provides an overview of:
The Metronet consortium
The improvements we will deliver
for the Tube network under the PPP
Our approach towards safety.
Metronet is the consortium, formed
in the summer of 1999, that has been appointed preferred bidder
for Infraco BCVBakerloo, Central and Victoria lines and
for Infraco SSLMetropolitan, District, Circle, Hammersmith
& City and East London lines.
Metronet is made up of equal partners
Bombardier Transportation (formerly Adtranz), SEEBOARD Group plc,
Balfour Beatty plc, and Thames Water Plc and WS Atkins plc.
The consortium has detailed experience
and expertise in project management and planning, railway engineering
and asset management and a wide range of other technical disciplines.
The contracts require Metronet to deliver substantial
improvements to the London Underground network.
In the first four years of the contract we will
deliver vital improvements to the signalling system and replace
the areas of track that are the most critical for improving performance.
The reliability of the signalling system south of Queen's Park
will be improved and delays caused by equipment failures reduced
by 38 per cent. This will continue to improve so that by the end
of the first period of the contract failures are almost halved
(to 49 per cent). We will replace 8.2km of track, including sections
between Elephant & Castle and Lambeth North, and between Warwick
Avenue and Kilburn Park.
Train capacity will be increased by 6 per cent
in the peak by increasing the number of trains available from
32 to 34. This will reduce both passenger waiting times and overcrowding.
The off-peak fleet will have an additional train made available
giving a total of 27.
Our plan is to invest £18 million in signalling
upgrades in the first seven and a half years of the contract.
Work to optimise the existing signalling and control system will
be completed by the end of year four, allowing the peak service
on the line to increase from 27 (at present) to 33 trains an hour,
reducing both crowding and journey times.
In the first three years of the contract we
plan to replace 21 km of track including the critical section
between Liverpool Street and Stratford. Also in the first three
years, train capacity is planned to increase from 76 trains to
79 trains in peak and 54 trains to 67 trains off-peak. This will
mean shorter waiting times on platforms and less crowding on trains.
The Victoria Line will be the first line to
be completely upgraded with the tracks, trains and signals being
replaced with new equipment.
In the first three years of the contract we
plan to replace 9km of track including sections between Warren
Street to Kings Cross and Highbury & Islington and Finsbury
Our plan is to have a completely new set of
trains in operation by 2009a year before we are contractually
required to by London Underground. These will include CCTV in
every carriage and digital information systems.
Stations will be refurbished to include better
CCTV to improve security and more reliable escalators. Work will
also be undertaken to relieve congestion at stations like Brixton
and Green Park.
The new signalling will allow London Underground
to run a more frequent and reliable service. In the first period
of the contract delays caused by equipment failures will be reduced
by 35 per cent.
When the new fleet of trains becomes fully operational
in year nine, the journey time from one end of the line to the
other, between Walthamstow and Brixton, will be reduced by an
average of seven minutes.
Waterloo & City Line
The Waterloo & City Line will be upgraded,
including increased signalling capacity, by the end of year five
of the contract. This combined with an additional train at the
end of year four will increase the number of passengers the system
can carry by 25 per cent. In addition, delays caused by equipment
failures will be reduced by 45 per cent in the first period.
The Circle Line links many of London's mainline
railway stations and provides passengers with alternatives to
crossing the centre of London. Improvements will be made to the
tracks and points in the first period to achieve a smoother and
more reliable service. Since much of the Circle Line is also used
by trains on the Hammersmith and City, District, and Metropolitan
Lines, the benefits of this investment will be felt by a considerable
number of passengers.
Major work will be carried out at King's Cross
St Pancras to significantly enlarge the station with a completely
new ticket hall. This will provide improved access to six Tube
lines as well as to the planned station for the high-speed line
to the Channel Tunnel.
Hammersmith & City Line
The stations at each end of the Hammersmith
& City LineHammersmith and Aldgate Eastare just
two examples of the stations which will benefit from modernisation,
with Aldgate East being completed in the first two years. Benefits
will include better lighting and signage and improved security.
We will refurbish the District Line rolling
stock in the first four years, installing CCTV in every carriage
to improve security and improving levels of lighting and cleanliness.
We will also improve tracks and signalling to give better reliability
and reduce journey times. These improvements are planned to be
completed within the first seven and a half years of the contract.
This will also be the timeframe for extensive station improvements.
As an example, step free access will be provided at East Putney
Station and there will be a thorough modernisation of Earls Court.
There will be a 5 per cent capacity increase
in the first period of the contract, enabling more customers to
use the line, leading to a reduction in journey times.
East London Line
The East London Line will be maintained to provide
a reliable and effective service.
Metronet, and its shareholders are totally committed
to the safety of the travelling public who use the Underground
and to the workforce who operate and maintain the system.
Under the PPP London Underground holds the statutory
safety case for the operation of London Underground and this will
not change. This safety case is supervised by Her Majesty's Railway
Inspectorate (HMRI). Each Infraco will have its own safety case
which demonstrates compliance with all safety legislation and
the LUL safety case. Any change that might have a safety implication
is subject to review by London Underground and HMRI both of who
have a right to veto. We take our safety responsibilities very
seriously, and this was part of the assessment process undertaken
by London Underground.
Metronet has already formed a top-level Board
Safety Committee, led by an independent chairman with membership
from Metronet and safety and line management of all our shareholders,
which has met monthly for over twelve months. We also plan to
carry out safety leadership training and assessment for our top
managers. Future management bonus schemes will have a safety trigger
to be achieved before any payment. We believe that safety is the
responsibility of every individual within Metronet and will ensure
a safety culture throughout our organisation.
Under the PPP, Metronet will be fully accountable
to the public sector. Our contracts will be with London Underground,
which will be under the control of Transport for London which
in turn will be accountable to the Mayor. Our performance will
be closely monitored by TfL and the amount that we are
paid will be dependent upon us meeting the obligations in the
contract. Metronet will be penalised if they do not meet the targets
set by London Underground. We will only receive bonuses if the
targets, which are based on improvements to the current performance,
are bettered. If we fail to deliver the improvements demanded
then we will have to pay substantial financial penalties.
Metronet's joint venture partners have substantial
knowledge and experience of operating, maintaining and extending
extensive asset bases. In addition to their substantial knowledge
of asset management, Seeboard and Thames Water Utilities have
experience of operating within a tightly regulated performance
regime. Balfour Beatty Rail Ltd has experience of maintaining
and renewing Railtrack's assets (track, signalling and electrification
systems) and currently maintains in excess of 25 per cent of the
UK's rail network in a highly regulated, safety-critical environment.
Seeboard has invested in the MIMS asset-based
management system to enable it improve its performance. Balfour
Beatty Rail Ltd is currently investing £8.5 million in developing
a version of this system tailored for railways, known as AM 2000,
covering permanent way, signalling, electrical and other infrastructures.
Combining key Metronet resources with experienced
personnel from within the existing Infraco would provide London
Underground with firm assurance of the effectiveness and robust
nature of our asset management regime. We will immediately introduce
programmes to share and disseminate our asset management skills
throughout Infraco. This will enable Infraco employees to establish
and maintain best practice, to understand better the cost implications
of their actions and to monitor and track the whole life cost
We know that without the experience and dedication
of our staff we will not be able to deliver the world class Underground
we all want to see.
Since being selected as preferred bidder for
Infraco SSL and Infraco BCV Metronet has made communication with
our prospective workforce and their representatives a key priority.
Altogether there are 2300 employees with Infraco BCV and 2400
with Infraco SSL. Our senior managers have personally met with
two-thirds of the employees from Infraco BCV in their workplace
and are in the process of doing the same for Infraco SSL. All
employees have received a letter giving assurances that after
transfer they will continue to be paid as normal, their pension
arrangements are safe and they will still have their travel concessions.
We continue to have a constructive dialogue with the trades unions.
Metronet has the skills, the knowledge and the
ability along with sound financial backing to help turn London
Underground into a system fit for the 21st century.
The PPP is all about partnership and we are
therefore confident that we can maintain a close working relationship
with Mr Kiley, his team and the Mayor to ensure that, together,
we can give the travelling public the world class Underground
our Capital deserves. The important thing now is delivery. It
is very much our wish to be able to get on and start this at the