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August 30, 2008

Light at the end of the tunnel for railway

Weston Mercury: 30 August 2008

NORTH Somerset Council has purchased a three-mile section of railway track between Portishead and Portbury giving hope to those campaigning for the re-opening of a passenger line from Portishead to Bristol.

The council pledged the purchase of the section of railway from the British Railway Board (Residuary) Ltd (BRB), which was set up to manage British Rail's remaining assets when it was sold off in the 1990s, earlier this year to safeguard its future.

Deputy leader and executive member for strategic planning and transport, Councillor Elfan Ap Rees, said: "The purchase of this three-mile section of track shows that we are serious about looking into options for transport links from Portishead into Bristol."

The line has been closed to passenger since 1964 but pressure from residents has been mounting over the past years to re-open the route, as Portishead continues to expand and no changes are made to the road infrastructure.

If the railway does not re-open, it is believed Portishead will be the largest town in the country without a rail link when the current house building programme is complete.


See also:


Bristol hopeful for speedy government approval

Port Strategy: 30 August 08

Bristol Port Company has submitted a harbour revision order application and environmental statement to the government for its planned 1.5m teu deepsea container terminal.

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Computer image of new terminal at Bristol

The new facility, which would have 1.2 kms of quay with depth alongside of 16 metres to accommodate the largest containerships, would cost between £500m and £600m. It would be built with partners and could be receiving its first vessels towards the end of 2013, said Bristol Port Company chief executive Simon Bird.

Its location is on the site of a former oil terminal outside the locks at Avonmouth.

“We are encouraged to see how the processing of applications like this has been speeding up and we therefore hope that we will be able to secure a public inquiry towards the end of the year,” said Mr Bird. “We feel very positive about the container terminal and we are really confident that the market will support this.”

There are no rail or road issues in connection with the expansion and the port has been working with Natural England and other environmental bodies on a habitat compensation project, he added.

Bristol says it is closer to the population as a whole than any of the other UK deepsea ports, so its new terminal would offer a “green” solution, fitting in with the government’s sustainable transport aspirations.

“We know there is a critical shortage of deepsea container capacity in the UK and notwithstanding short-term credit crunches, the long-term growth of containers coming in from Asia will continue,” said Mr Bird.

“This side of the country is not congested and by getting closer to the market we can achieve fewer lorry miles and therefore fewer emissions."

Write to Eurostar to support cleaners strike for London Living Wage

OCSEurostar Cleaners SPIpicket 250808.jpg
RMT members working on the Eurostar service for cleaning contractor OCS took 24 hours of strike action on Bank Holiday Monday, 25 August. The RMT cleaners also demonstrated outside the Oval cricket ground on Friday 29 August where OCS sponsors the corporate hospitality stand during the England match.

The action was supported 100% by the cleaners, with many joining the union as the strike action approached. The vast majority of engineers working directly for Eurostar at the Temple Mills depot also refused to cross the cleaners’ picket line which left the depot like a ghost town.

The cleaners are demanding an increase from £6.37 per hour to the £7.45 rate set down as the London Living Wage by the London Mayor. They are also demanding shift and weekend rates, sick pay, a pension scheme and improved holidays.

The cleaners recognise that it is Eurostar UK Ltd as well as their own employer that is responsible for their poverty pay and poor conditions. So they also intend to supplement their strike action with a series of protests targeting Eurostar’s hypocrisy in marketing itself as an environmental organisation while enforcing pay misery through sub-contracts.

Eurostar has promoted a highly successful Tread Lightly environmental marketing campaign in partnership with Friends of the Earth, proclaiming its zero carbon emissions train service, in contrast to the airlines. This appeal to middle class guilt of course totally shrouds Eurostar’s rank hypocrisy of stamping all over its contract cleaners through poverty pay, a practice that is identical to most airlines.

Questions also ought to be asked of Friends of the Earth’s role in jumping into bed with such an exploitative organisation.

The union will be announcing more strike action next week and more protest actions. In the meantime, their RMT branch is asking supporters to protest direct to Eurostar through its Write to Richard campaign. People are encouraged to email the Eurostar Chief Executive Richard Brown demanding the London Living Wage for cleaners at: richard.brown@eurostar.co.uk

Model letter to: 'richard.brown@eurostar.co.uk'
Subject: Industrial action by cleaners employed on Eurostar OCS Contract

Dear Mr Brown,

I am extremely disappointed to learn that the cleaners on the Eurostar service are currently paid more than £1 per hour below the London Living Wage. I hope that you agree that in order for Eurostar to maintain its image as a progressive and ethical organisation it must ensure that everybody working on the Eurostar service is at least paid at the hourly rate of the London Living Wage.

The image and reputation of Eurostar is damaged by the double standard of having a Tread Lightly campaign on the environment, while exploiting cleaners through low pay and poor conditions.

I do hope that your company will take the necessary steps to ensure that it looks after the people working on the service as well as those which have been taken in caring for the environment. I urge you to take the necessary measures to eliminate the poverty pay currently endured by the cleaners at Eurostar.

Yours sincerely,

See also:

Solomon's Mindfield: 25 August 2008

Eurostar cleaners strike. "Pay London Living Wage-show us dignity"

I have never been up early enough to catch the sunrise unless I haven't been to sleep from the night before. But 5am yesterday morning I attended my first crack 'o' dawn picket line. Around 30 cleaners from OCS were on strike over pay and conditions.

"Good Pay, Good Cleaning" was the favourite chant of the morning.

At present the cleaners are paid a basic rate of £6.37 per hour. They get NO sick pay, no bank holiday pay not even extra pay for night shifts. They never get a pay rise either, no matter how long they have worked for the company.

OCS is the private cleaning contractor paid £6million to keep the London-Paris 400m long highspeed train clean. With no cleaners available the company will receive massive fines.

Being in the middle of the chants, whistles, banging, dancing and singing was a brilliant experience in itself. The cleaners, who come from all over the world, came together to fight for a single cause-fair pay, fair treatment, dignity and respect.

As we picketed we received news from the other depot in Leyton that the engineers had refused to cross the picket line.

We encountered all the usual arguments from toffy nosed prats who said stuff like 'I really don't care', or 'I don't get holiday pay either', not realising that being paid £100 per hour self-employed or as boss of a company is not the same as being paid £5.52 per hour with no sick pay, bank holiday pay, night shift allowance or even getting a measly annual payrise no matter how long you have worked for the company.

The grandson of the owner of OCS, who is obviously a managers, was twitching with annoyance. He said the cleaners should have accepted the deal they offered them on Friday of £6.50 per hour. No mention of all the other demands.

SOAS Justice for Cleaners campaign and Eurostar cleaners are now arranging a joint meeting to discuss the way forward. And in October SOAS will be hosting a party to bring together cleaners and activists for a night of music, food and dancing. Please contact me for more details.

On a side note, the British Transport Police who were drafted in to make sure we didn't overstep the mark were unusually supportive. One of them was telling me how after only 10 years in the 'service' (!) he hated being on his side of the picket. And cant wait to retire in a years time. He complained about how the police are now target driven so when, for example, he used to be able to let people off for minor offences such as 'pissing up a wall', now they have to have 5 arrests or bookings per day.

August 29, 2008

Network Rail told to trim spending

Financial Times: August 28 2008
By Amanda Vermeulen

The company that owns Britain’s rail infrastructure spends too much for what it delivers and its performance falls short when compared with foreign counterparts, the industry regulator said on Thursday.

Network Rail was still not doing well enough in providing services in a financially efficient way, according to the Office of Rail Regulation. However, the company had improved train punctuality to its best level in 10 years.

The ORR announced its mixed verdict in its latest quarterly update on Network Rail. Bill Emery, ORR chief executive, said he wanted Network Rail to spend 21 per cent – or about £1bn – less by the end of 2013 to deliver the same volume of services as it currently offers, “to start to address the gap in its performance compared to its peers in Europe and elsewhere”.

Network Rail spends about £5bn-£5.5bn each year, and the ORR wants it to cut back to about £4bn. Mr Emery believes that Network Rail could eventually improve by “at least 35 per cent”, which would mean shaving almost £2bn off expenditure. The ORR said it had calculated this by making comparisons with overseas rail companies and British non-rail businesses.

The ORR said punctuality had improved to 90.1 per cent for the three months to June 21 compared with 89.2 per cent in the same period last year. Safety, and the reliability of the infrastructure, had also improved.

However, Network Rail needs to cut engineering-related disruptions to passenger services by 37 per cent within five years to meet ORR targets for engineering stoppages.

Engineering shutdowns on the West Coast main line have caused a number of line closures over the summer, while Network Rail has also missed performance targets on the East Coast main line.

The ORR acknowledged the importance of concerns voiced by Virgin Trains about whether it would be able to launch its high-frequency service on the West Coast main line, which has been plagued by disruptions, ahead of the December deadline.

Network Rail said earlier this year that its original timetable would probably not be met if it stuck to its plan. It responded by devising a new plan, but only eight of the 25 key milestones set out in it have been achieved so far.

Mr Emery said a failure to meet the December deadline could force the ORR to intervene, “representing a substantial failure on the part of Network Rail”.

Network Rail said passengers were enjoying the best train punctuality for well over a decade. “This is a record we are continuing to push to new levels. Reducing disruption caused by improvement work is a central pillar of our plans in the years ahead.”


See also:

Network Rail told to cut disruption by a third

Contract Journal: 29 Aug 2008
By Neil Gerrard

The Office of Rail Regulation has told Network Rail it wants the maintenance company to cut disruption from engineering work by 37% over the next five years.

It has also ordered Network Rail to improve the way it manages engineering work in order to reduced unplanned delays when work overruns, according to the Guardian.

The call follows a series of overruns in engineering work on the West Coast Mainline at the New Year, which saw Network Rail fined £14m.

The most serious of the overruns occurred on overhead line engineering work at Rugby.

Despite this, figures showed that 90.1% of trains ran on time in the period April to June this year - the best for 10 years.

ORR chief executive Bill Emery said: "The latest figures are excellent news for most passengers. However, the regular closure of parts of the network for engineering work causes substantial disruption and inconvenience to many passengers and freight customers.

"Over the next five years NR must continue to carry out a full schedule of maintenance and renewal of the infrastructure, together with a massive programme of enhancements to increase network capacity."

Police seize 350 tonnes of stolen rail track

Reuters: Aug 29, 2008

LONDON - Britain's largest ever haul of stolen metal has been found by detectives at a scrapyard in Staffordshire.

More than 350 tonnes of stolen rail track, other rail equipment, metal beer kegs, cabling and fencing were seized by officers from British Transport Police and Staffordshire Police.

The material is estimated to be worth more than 700,000 pounds.

"With the high price of metals on world commodity markets, metal and cable theft has become a significant problem for the rail industry, utilities and telecommunications providers," said BTP's Detective Sergeant Tony Nugent.

"This has been a major seizure and scrap dealers need to be aware that police forces across the country are co-operating in a crackdown on metal theft."

Officers raided the yard in Cheadle on Wednesday and arrested a 43-year-old local man.

Earlier this month, council leaders said high scrap prices had led to a sharp rise in the theft of manholes and drain covers, fuelling a boom in metal theft estimated to cost Britain millions of pounds a year.

August 28, 2008

Poverty pay just isn’t cricket! – OCS Eurostar cleaners to lobby Brit Oval tomorrow for fair play on pay

RMT: August 28 2008

CLEANERS being paid poverty wages by OCS on its Eurostar contract will be at the Brit Oval tomorrow morning explaining to cricket fans how the company that gives its name to the lavish OCS Stand makes its sponsorship money by shamelessly exploiting its staff.

RMT cleaners working for OCS on Eurostar will be at the Brit Oval leafletting fans arriving for the one-day international from 09:45 on Friday, August 29

RMT cleaners who keep Eurostar’s trains and stations clean are fighting to win the London Living Wage of £7.45 an hour, but OCS – which boasts of its ‘family values’ – pays them more than £1 an hour less than that.

Some 120 RMT members at the company took strike action over August Bank Holiday after returning a 100 per cent vote for industrial action for a living wage.

“Cricket is supposed to be about fair play, and our members are telling OCS and Eurostar that it’s time to stop cheating our members and stump up a living wage,” RMT general secretary Bob Crow said today.

“OCS says its services are about people and boasts about its family values, but the very people whose hard work delivers those services are being paid at rates that it is not possible to live on in and around London.

“It would cost OCS less to pay the London living wage than they pay one of their directors.

“Business is booming for Eurostar, which boasts about its ethical stance and how it treads lightly on the planet, and it could stop OCS trampling all over the workforce that keeps its trains and stations clean with one telephone call.

“We have just won the London living wage for cleaners on the Tube, and now it is time for both these hypocrite companies to stop hiding behind each other’s fat profits and pay up.

“We hope that everyone going to the Oval sees a great day’s cricket – but we would ask cricket fans to spare a moment to tell OCS and Eurostar that their cleaners deserve fair play too,” Bob Crow said.

ends

Notes to editors:

* OCS cleaners are paid £6.37 an hour, with nothing extra for overtime, nights or bank holiday work.
* The London living wage announced by London mayor Boris Johnson in July is £7.45 an hour.
* Eurostar carried 16.8 per cent more passengers in July 2008 than it did in the same month in 2007, and has added an eleventh daily Brussels service.
* The OCS Group made £131.2 million gross profit in the year to March 30 2007, pre-tax profit of £10.2 million and after-tax profit of £6.2 million
* Total directors’ remuneration was £1.3 million, with the highest-paid director receiving £409,000.
* Assuming an OCS workforce of 170 on the Eurostar contract it would cost £1.08 x 40 hrs x 52 weeks x 170 = £381,888 to fund the London living wage on basic pay

OCS Group’s website says:

* “Our services are about people; they are delivered by people for people so we ensure that we provide the right training, equipment and support to enable us to deliver the highest quality, most efficient and the safest solution for your business."
* “We’re keenly aware of the responsibilities we have to you our customers, to the 60,000 people we employ throughout the world and to the wider communities within which we operate.
* “We’re proud that our business remains in private ownership and is still run today by the family that founded it, with family values still forming the foundation of our corporate culture.”
* “The reputation of Eurostar rests on the experience of each individual passenger and OCS is determined to contribute to enhancing this reputation. Eurostar has won the title of ‘World’s Leading Rail Service’ at the World Travel Awards for the last nine years, so OCS views it as crucial to play its part in the provision of a service renowned across the globe for its efficiency.”

August 27, 2008

Romantics love high speed trains but ministers are reluctant to get on board

The Guardian: August 27 2008
Dan Milmo, transport correspondent

The 11.11am service from Paddington to Princes Risborough trundles through Park Royal, an outpost in the industrial sprawl of west London, at 40mph.

If advocates of a high-speed rail network get their way it will be shunted into the sidings by a 180mph bullet train as this strip of near-redundant track is torn up and becomes the foundation for a route that will run from London to Glasgow in less than three hours.

Whereas airport expansion attracts angry local residents and environmental campaigners, high-speed rail draws romantics and visionaries. Network Rail has launched the biggest ever study into the topic, it is understood to be a personal favourite of Tory leader David Cameron and green groups say it will undermine the case for a third runway at Heathrow airport by reducing domestic air travel.

Jim Steer, a director of high-speed rail group Greengauge 21, said: "The government could get to the position of saying that, looking at the overall economic development position of the country and the picture on energy use, high-speed rail is a sensible thing to do."

According to Steer, the Park Royal Line could be the first link in a London-to-Birmingham route that will eventually stretch all the way up to Scotland. Most of the Birmingham line could be built alongside the M40 and parts of the Chiltern Railways line and could also run along disused track bed on the former Great Central Railway line, which opened in 1899. The noise and environmental impact would be much less than building it on greenfield sites says Steer, and he puts the cost at up to £9bn. Steer admits that the argument for high-speed rail needs to be won before the route planners can get to work.

Now that safety is no longer a front-page issue for the railway industry, capacity has come to the fore as the public focuses on softer concerns such as comfort and affordability. Lack of seating on First Great Western's morning services provoked a fares strike last year. Indeed, the protest was organised by a group whose title - More Trains Less Strain - indicated where some members of the public feel the government should invest more money.

Atkins, the engineering consultancy, puts the capacity argument at the forefront of its case for high-speed rail. Michael Hayes, a rail-planning expert at Atkins, says that 20-year growth forecasts could be exceeded within a decade if the current rate of demand goes unchecked. The government's rail white paper, which laid out spending plans for 2009 to 2014, has been criticised by the Association of Train Operating Companies for underestimating passenger growth.

"If growth continues at its current rate then it could well be that we reach growth forecasts for 20 years' time in 10 instead. In which case, all the capacity improvements planned in the rail white paper are exposed a lot sooner than expected," says Hayes. He adds that long-distance rail travel has grown by a fifth over the past three years, indicating a significant change in rail use that will soon put the system under severe strain. Passenger numbers on the west coast main line are expected to double between 2006 and 2026 and increase by more than two-thirds on the east coast.

According to Hayes, the line will bring financial benefits by generating fare revenues - which presumably go to the operator and whoever owns the line - and will boost the economy by cutting journey times for commuters. Agglomeration is a common buzzword for high-speed rail projects, meaning that a new train link will bring businesses closer together and give them greater pulling power in the jobs market. Hayes says the agglomeration benefits from a high-speed link will be substantial. He argues that a full west and east coast high-speed network, costing £31bn, would bring economic benefits of £63bn and would have a cost-benefit ratio of 2.0, the level needed to sanction public investment in an infrastructure project.

High-speed rail's cheerleaders believe they have a persuasive argument: there is an economic case for a new high-speed rail network starting with London to Birmingham; it would bring environmental benefits by cutting car use; it would solve capacity problems on a busy rail route; and, in the long term, a high-speed network would weaken the case for expanding Heathrow by capturing more of the domestic flight market.

For now, though, it is making no headway with the government. A senior government source, asked about the possibility of a sequel to the high-speed rail link from St Pancras to the Channel tunnel, says: "It's too expensive." Ministers also doubt the estimated economic rewards. The high-speed concept was treated with considerable scepticism in a government-commissioned report into Britain's transport needs by Sir Rod Eddington, the former boss of British Airways.

The report warns "there is very little evidence that high-speed rail links help regional performance" and adds that passenger demand for a north-south link "has not been tested and proven".

It is clear that, under a Labour government, Network Rail's study will have to be very convincing to have a hope of triggering a high-speed rail boom when it is published next year. It is also unlikely that a £30bn rail project will draw investment from the private sector without substantial backing from the Treasury - as shown by the £16bn Crossrail project.

Professor Stephen Glaister, a transport expert at Imperial College, said there was scant evidence of a market for high-speed rail. More than two-thirds of rail journeys originated and ended in London, which indicated that the capacity problem was on short-distance commutes and not long distance lines. In the 15 years it would take to build a high-speed route to Birmingham and beyond billions of pounds could be spent on improving the existing network.

"There is an argument for spending a lot more money on the existing low-speed railway service. There are not enough people making long journeys for high-speed rail to make sense."

The 11.11am slow train to Princes Risborough might be safe for some time.

Backstory

According to Greengauge 21, a high speed link between London and Birmingham could follow tracks laid down by one of the great rail entrepreneurs of the 21st century. Sir Edward Watkin oversaw the construction of the Great Central Railway, which was the last major rail line to be built in London until High Speed 1 - which links the capital to the Channel tunnel and Paris. High Speed 2 could use some of the Great Central infrastructure. Sir Edward planned to build the first Channel tunnel but his dream hit political and financial buffers.

Submission on Jamaica rail resuscitation for Cabinet soon, says Henry

Jamaica Observer: August 27, 2008

Jamaican Transport and Works Minister Mike Henry says that a submission is expected to be made to Cabinet shortly regarding efforts to revive rail services across the island.

Speaking at last week's post-Cabinet media briefing at Jamaica House, Henry said that the submission, jointly undertaken with the Ministry of Finance and the Public Service, has been completed. He told journalists that feedback is being awaited from the finance ministry, to proceed to Cabinet with the document.

Local rail service, which up to 1992 was being provided by the Jamaica Railway Corporation (JRC), has been dormant for the past 16 years. Over the period, unsuccessful attempts have been made at resuscitating the service.

Within recent years, efforts have been made at incorporating the input of overseas interests, primarily from India, which did not materialise, and China, which the Government is currently in discussions with.

Regarding the Chinese interest, Henry said that while he has held discussions with representatives from China, there is a procedure to be followed.

"The procedure... has to be Government to Government. The Ministry of Foreign Affairs must now begin to take up that discussion with the Chinese, with whom I have had my own discussions and arrived at the funding. That relates to the process of the railway's implementation, and as soon as I have the response of the Ministry of Finance, it will be going to Cabinet for them to accept my position, hopefully," Henry explained.

Ontrack opens sleeper factory

NZPA: 27 August 2008

New Zealand state-owned rail network operator Ontrack has opened a factory to make concrete railway sleepers in Christchurch.

In 2003 Tranz Rail was laying 40,000 sleepers a year. Last year the figure rose to 100,000 as after the government bought back the track there was a catch up of deferred maintenance.

In September, Ontrack will also start laying new track for the 1.8km loop siding at Ikamatua, which will use almost 3000 concrete sleepers. This track will service the Pike River coal mine, which has decided to rail coal to Lyttelton, rather than truck it to Greymouth to ship from there.

Ontrack chairman Cam Moore said the railway sleeper factory in Christchurch was a sign of a long term commitment to rejuvenating New Zealand's rail network.

Speaking at an opening ceremony for the factory, Mr Moore said Ontrack was committed to clearing the backlog of maintenance by 2010.

The factory will produce 40,000 concrete sleepers a year and will be operated by New Zealand firm Busck Prestressed Concrete Ltd under a five-year contract. It will supply sleepers to the South Island. Ontrack has an existing facility making sleepers at Hamilton.

The factory was been built by Hawkins Construction Ltd on railway land on Annex Rd in Middleton.

- NZPA

August 26, 2008

Rail users hit by 170% fares rise

Cambridge News: 26/08/2008
laura.morris@cambridge-news.co.uk

A MASSIVE hike in fares has left young rail travellers shocked after train company First Capital Connect changed its policy.
FCC.jpg
Some passengers have seen their annual rail ticket shoot up by 170 per cent.

The news comes after rail firm First Capital Connect (FCC) scrapped a discount it had given to pupils at Cambridge schools.

One student who travels daily from Ely to Cambridge with the rail giant discovered her fare had jumped from £212 last year to £573 this year.

Due to a change in policy by FCC, tickets previously offered, with a 75 per cent discount to pupils at some colleges in the area, are now no longer available.

The new student discount scheme offered by the company reduces a standard season ticket price by just a third. The company claims this scheme is fairer.

The parent of one of the Hills Road Sixth Form pupils affected by the change contacted the News and said: "We've come to renew our daughter's rail ticket today (Tuesday, 26 August) and ended up on the phone for about five hours after discovering the huge increase in price between this year and last year.

"Last year we paid £212 and she could use any service she liked, but this year we have come to renew it and without any warning found the price is now £573.

"She has seven or eight friends who also use the train everyday and they are all finding the same thing - it's very frustrating and is making me furious.

"We already have the various bills in the household going up, and now the cost of this has added even more to that which will worry people. I haven't been made aware of the change and then I suddenly have to find a huge amount of money."

A First Capital Connect Spokesman said: "We launched our new scheme in November.

Before that we had inherited the old scheme from the West Anglian Great Northern and Thameslink franchises.

"They had ad hoc arrangements with schools in the area, some of which received a 75 per cent discount, which was clearly unprecedented.

"Now we have a fairer student connect card which offers a third across all lines.

"We directly communicated with the local schools, colleges and customers and letters have been continually sent out regarding the changes."

August 22, 2008

Harmonisation of Infrastructure Terms & Conditions - Network Rail

TO: RMT NETWORK RAIL MAINTENANCE MEMBERS
Harmonisation update no 5 - RMT Ref: BR4/0254

Dear colleague,
Network Rail has tabled to the Union its latest proposals on harmonisation as the basis for further negotiations. These proposals represent the Company's wish list and have not been agreed or discussed with your Union.

The General Grades Committee received a report today and is of the view that, while the proposals from management could form the basis of future negotiations, there are elements of the document which are unacceptable, such as regional pay rates (retention allowances) and overlapping skills. The General Grades Committee has therefore instructed me to enter into further negotiations to seek improvements that meet with the aspirations of our members and which are in line with your union's policy.

Additionally, the proposals will be discussed at a meeting of your Area Council Reps, which will hopefully take place over the next week.

As I have stated in previous letters, it is clear that the harmonisation process is being used by Network Rail as a means to deliver the 22% cut in the maintenance budget over the next five years which is being dictated to the company by the rail regulator. In short, Network Rail's goal now is to deliver budget cuts and management are using harmonisation to do that. It has been made quite clear to your negotiators that, if management cannot get the changes they want through harmonisation, then they will seek to achieve piecemeal change attacking terms and conditions. So when they say that staff can stay as they are, do not believe them because they are saying the opposite privately.

Yours sincerely

Bob Crow
General Secretary


http://rmt.live.poptech.coop/files/110986/FileName/NRPositionStatementonHarmonisationAugust2008.pdf

New Oxford-London rail link is capital idea

Oxford Mail: 21st August 2008
By Chris Walker

Oxford could get a new train service to London, via Bicester, under a £200m plan drawn up by Chiltern Railways.

Chiltern's scheme, developing an idea it first suggested several years ago, would complement the East-West Rail Consortium's proposals to upgrade the Oxford-Bicester Town line and reopen the route from Bicester to Milton Keynes.

A new quarter-mile-long west to south connection would be built to link Bicester Town station with the Chiltern Line at a junction on the southern outskirts of the town, along with a new station alongside the Water Eaton park-and-ride site on the outskirts of Kidlington.

Chiltern Railways' chairman Adrian Shooter said that if the scheme was approved, it would make Bicester one of the best connected towns in the country, with four direct trains to London every hour - two from Bicester Town and two from Bicester North station, on the route to Banbury and Birmingham.

Two trains an hour would run between Oxford and London Marylebone, via an improved and expanded Bicester Town, in addition to the four trains an hour - two expresses and two stopping services - which First Great Western runs to London Paddington.

Chiltern says the journey to London would take about 65 minutes, compared with 55 minutes on FGW.

Double track and new signals between Oxford and Bicester would allow more than 30 trains a day to run each way, compared with seven at present, with journey times cut from 26 minutes to 14. Some trains would also serve Islip.

The new link would give Oxford direct services to Wembley Stadium station and reinstate a rail connection with High Wycombe for the first time since 1964.

The service could be running in time for the 2012 Olympics in London and would strengthen the case for the Oxford-Milton Keynes line.

Alison Mathias, of Oxford commuter group Ox Rail Action, said: "We're delighted. This would give us more choice and more service and put pressure on First Great Western to up their game. FGW have improved their service in recent weeks, but this would put pressure on them to do even better."

Bicester Chamber of Commerce chairman Ben Jackson said: "This would put us at the top of the pile in terms of connectivity."

Chiltern still needs to get Government approval but is confident work could start within two years, allowing it to meet the 2012 target.

Mr Shooter said: "We have done a lot of work to develop this plan. It will greatly improve connections between London, Oxford and Bicester."

£600m South Central contract puts bus and rail in spotlight

Financial Times: August 21 2008
By Amanda Vermeulen

The hotly contested battle to win the lucrative South Central rail franchise has put the spotlight on Britain’s leading bus and railway groups.

The size of the £600m-a-year contract, including key London commuter routes, the Gatwick Express and a leading role in the £5.5bn Thameslink project, lends weight to the argument that the sector is undervalued by investors.

Challenging revenue targets are attached to all the big rail franchise deals operated by the big five of Arriva, Stagecoach, First Group, Go-Ahead and National Express. But many analysts argue that the rail sector is steaming ahead strongly through the consu­mer slowdown, delivering decent growth and confounding experts who expected rail to suffer a gradual decline af­ter privatisation in the 1990s.

Andrew Fitchie, transport analyst at Collins Stewart, believes that bus and rail op­erators have “one of the best business profiles within the transport sector for the current economic environment”.

In spite of these strong tailwinds, the sector trades on a double-digit discount to sum of the parts valuations – Mr Fitchie reckons about 16 per cent – dragged down by in­ves­tor worries about fuel costs.

Train operating companies
TOC share price.gif

Until now, rising fuel costs have been offset largely through prudent hedging out to 2009, and through fare increases. Longer term hedging is, though, less secure.

Ironically, the rising cost of fuel has been a prime factor behind the growth in rail travel, alongside heavy traffic on British roads, congestion charges and an improving rail infrastructure.

The sector’s defensive qualities are lent weight by the fact that much of people’s spending on rail travel, particularly on commuter routes, is non-discretionary.

Transport analysts at Credit Suisse believe the trend of motorists switching to both rail and bus represents a step-change in growth prospects for the sector.

Keith Ludeman, chief executive at Go-Ahead, agrees, saying growth in railway usage remains “robust”. The views are underpinned by recent surveys done for First Group and Stagecoach, indicating that British commuters are using public transport more frequently.

There are, however, potential obstructions on the track. Given the economic situation, there may come a point when passengers will no longer accept fare price increases. And demand may weaken. Many rail franchises run into London, and a slowing economy will mean job cuts and fewer tickets sold, although many operators say London commuter numbers have continued to grow well.

Another risk comes from the cost of running franchises. These are awarded by the Department for Transport using a complex formula, which means train operating companies that won in the last franchise round must achieve yearly revenue growth of between 4.5 per cent and 11.5 per cent to break even.

According to Mr Fitchie, Stagecoach, one of the bidders for South Central, is under the most pressure, and will have to deliver close to 12 per cent growth in revenue to break even on its East Midlands franchise.

Go-Ahead, operator of Sou­th­ern (the current name for the South Central franchise), will face a period of uncertainty until the winning bid is announced in 2009. Damian Brewer, an analyst at JPMorgan, says Go-Ahead “must win” South Central otherwise it could struggle to replace the lost earnings. In 2007, Southern generated £518m in revenue for Go-Ahead.

Such returns and the prospects of greater rewards, explain why National Ex­press, Stagecoach and NedRailways are eager for Southern to change hands.

August 21, 2008

Tubelines dispute

The Times: August 21, 2008

The Tubelines dispute was about pay and conditions, nothing more

Sir, The Tubelines dispute was not about Boris Johnson, me or politics (leading article, Aug 20). It was about pay and conditions, nothing more and nothing less. Your leader writer may feel that the offer of worse terms to one group of people doing identical essential work to colleagues on the same network is a “risible” reason for a dispute, but our members did not, and that is why they voted by a margin of three to one to strike.

The deal eventually struck, while not yielding all our members wanted, did bring more than “marginal” improvements. For the lowest-paid among Tubelines’ staff it will mean a minimum pay increase of £1,000 this year and next, and for points technicians an immediate pay rise of £3,000 on top of the 4.99 per cent increase this year and RPI plus 0.85 per cent in 2009. There is also an additional 10 per cent on travel subsidy, raising it from 80 to 90 per cent. There remain issues to be addressed, not least the disparity in pensions provision.

In 2007 Tubelines made pre-tax profits of £79.6 million. And despite preaching pay discipline among our members, in the year up to December 2007 the company’s 15 directors paid themselves a total of £9.9 million, with another £1.2 million set aside for their pension costs.

Those profits and directors’ salaries are generated by the work of our members, who go out seven nights a week every day of the year to keep the system running. So what if some of them, with shift premiums and overtime, earn £50,000?

The Times accuses RMT of an “underlying tone of class warfare”, but in the same breath demands “ruthless confrontation” and the “defeat” of a union for doing what it is supposed to do — standing up for the interests of its members. My union is also accused of trying to “sabotage” a no-strike deal, but the right to strike is a human right, and RMT does not exist to negotiate away its members’ rights.

Bob Crow

General Secretary, RMT


See also:

A union with tunnel vision

The Times: August 20, 2008

London's mayor should prepare for a showdown the RMT

At the last minute, Londoners were spared the misery of another Underground strike. With its usual callous brinkmanship, the RMT union decided to call off its threatened 72-hour walkout, ostensibly because the pay and conditions package offered by Tube Lines, the company managing three Underground lines, was marginally improved. For many commuters and tourists, the reprieve comes after they had already had to cancel meetings, reschedule visits and alter travel plans. Their anger will hardly be assuaged. It is time for London to put an end to these antics once and for all.

With tedious regularity, the RMT finds a new pretext every few months to indulge in brinkmanship. The overtly political nature of most disputes and the underlying note of class warfare have made it obvious to the three million daily Tube users that obstructive and blinkered trade unionism still flourishes under London's streets.

The ostensible “grievance” of RMT members in this latest dispute was risible. They complained that their pay and conditions package, amounting to almost 5 per cent, was not as generous as that offered to those working for Metronet, the company maintaining the other lines that is now in administration. Three facts alone pointed to the absurdity of their complaint. First, the total amount offered is above inflation and will boost salaries, in some cases, to a figure of £50,000. Secondly, there is no obligation on private companies to offer exactly the same terms as others in the same field. And thirdly, Metronet has collapsed, partly because it mismanaged its finances, whereas Tube Lines is solvent and thriving.

What is abundantly clear is that Bob Crow, the class-obsessed former communist leader of the RMT, has been looking for an excuse to pick a fight with Boris Johnson, the Mayor of London. He knows that Mr Johnson was elected partly because Londoners were tired of disruption on the Underground. He knows also that the mayor wants the unions to sign a no-strike deal. Mr Crow is determined to sabotage any such deal - and provoking a confrontation now was a good way to wrongfoot the mayor.

His timing is astute. Mr Johnson has had a rocky start to his mayoralty, and yesterday suffered the embarrassment of going back on his commitment to hand over the chairmanship of Transport for London to Tim Parker, his transport adviser. Mr Johnson played down opposition accusations that his administration was in disarray, arguing that the job has become very political and that voters would expect him to take responsibility for this important function himself.

Mr Crow may, nevertheless, have overreached himself. To shut down three busy lines at the height of the tourist season would have hardened the determination of most Londoners to confront Mr Crow's opportunism. The strike threat still exists: the RMT membership has not yet voted to accept the improved package.

What he does not seem to realise is the rising anger not only of Tube users but also of the Government, the main parties and trade unions, fear that this throwback to the 1960s could discredit them all. Mr Johnson has sounded emollient this time. He should, however, be preparing for a ruthless confrontation with RMT militants that must end with Mr Crow's defeat.

Left brings India to standstill in strike against neo-liberalism

Economic Times: 21 Aug, 2008

NEW DELHI: The day-long Left trade unions’ strike in protest against the Manmohan Singh government’s economic policies paralysed life in the three red bastions on Wednesday, but life was normal elsewhere.

In West Bengal, Kerala and Tripura, the strike brought life to a standstill as there was a total shut-down with the state government virtually sponsoring the strike. Rail and air services were hit with employees of these sectors joining protests against privatisation, soaring inflation, violation of labour laws, outsourcing and contractualisation. On the IT sector, the Left said though there were no unions in the sector, they themselves had decided to shut down.

In Kerala, the strike was almost total with protesters picketing trains in some parts, closure of business establishments, markets and educational institutions in the state. In other states, public sector banks, telecom and postal services have been affected but life was largely unaffected.

However, trade unions, including CPM’s Citu and CPI-affiliated Aituc, which called the strike amid the Supreme Court ruling that declares strikes as illegal, claimed that an “overwhelming and unprecedented” response in all states, barring Jammu and Kashmir. This, they said, should be a “warning bell” for the UPA government. “It is an expression of deep indignation of the masses against the pernicious economic and labour policies of the UPA government which has become more aggressive in the recent period endangering the livelihood of the multitude. Incidentally, this is the 12th general strike against liberalisation, globalisation and privatisation,” the sponsoring committee of the trade unions said.

Trade unions led by DMK joined the anti-government strike in Tamil Nadu while several of members of Congress-backed INTUC and RSS’ BMS participated in the strike. The Left trade unions claimed that there have been instances of police “high-handedness, police using every conceivable repressive measures to break the strike in a number of states. There have been lathicharge in many states.”

CPM polit bureau member and CITU general secretary M K Pandhe said government “should take lessons from the fate of the friends of US President George Bush”. CPI MP and AITUC leader Gurudas Dasgupta said that the fate similar to that of Gen Pervez Musharraf awaits any leader who does not handle people’s issues properly.

Arriva profits 40% higher on bus and train boom

Times Online: August 22, 2008
Angela Jameson

The worsening economy combined with soaring petrol prices is driving people out of their cars and on to public transport, according to Arriva, the bus and train operator, which today reported a 40 per cent increase in pre-tax profit.

London's biggest bus operator, which also operates in 12 European countries, is seeing the benefits of people shifting from cars and aeroplanes to buses and trains, with a 59 per cent increase in revenue in the first six months to June 30.

Arriva, which took over the UK's CrossCountry rail franchise last year, said revenue had risen by £1.4 billion from £902 million last time. Pre-tax profits at the group climbed to £66.3 million, up from £47.3 million in the first half of 2007.

Operating profits in the UK rail arm jumped to £14.8 million from £1.1 million a year earlier, due to the contribution from CrossCountry, which stretches from Aberdeen to Penzance and saw revenues on the service improve 10 per cent year-on-year.

The company's European operations delivered a 50 per cent increase in revenue of £626 million and a 24 per cent rise in operating profit of £34.9 million, boosted by the acquisition of 80 per cent of Hungary-based bus business Interbus Invest.

Sunderland-based Arriva, which runs more than 16,000 buses and trains in the UK and continental Europe, said it was well placed to avoid an economic downturn because of the long-term nature of its rail and bus operating contracts, which underpin its future earnings. It has also taken prudent steps to hedge against rising fuel costs and has a strong balance sheet.

The company said that higher fuel prices and slower macro-economic growth was a challenge to the industry but also presented an opportunity. "We have attractive value-for-money propositions, both for fare-paying passengers looking to switch from more fuel-intensive car and air journeys, and for public authorities as they increasingly acknowledge the proven financial benefits of private-sector service delivery," Arriva said in a statement.

Arriva will pay an interim dividend of 6.15p a share, up 10 per cent on the payout a year ago. The shares rose 4.2 per cent to 743p on the day.

See also:


Boost for Arriva as Britons leave cars at home

Financial Times: August 22 2008
By Amanda Vermeulen

“A man who, beyond the age of 26, finds himself on a bus can count himself as a failure.” This statement, once erroneously attributed to Margaret Thatcher, has occasionally been blamed for doing more damage to the rail and bus industry than any other factor.

But since privatisation in the early 1990s, slow but steady growth has transformed an industry once sneered at into an investor darling that seems resilient to economic decline.

Arriva, one of the UK’s five listed bus and rail operators, is a case in point.

A very strong showing in all three of its businesses – bus, rail and Europe – fuelled a 40.2 per cent surge in pre-tax profits in the half-year to June. Earnings per share rose from 18.1p to 23.8p, and the interim dividend was up 10 per cent to 6.15p.

Andrew Fitchie, a Collins Stewart analyst, said: “The listed bus and train companies have the best business profiles in the transport sector in the current economic climate.”

There is now hard evidence of a modal shift, underpinned by the solid growth in both passenger numbers and fares that have been reported by the five transport groups.

Two recent surveys for Arriva rivals First Group and Stagecoach indicate that, increasingly, British motorists are leaving their cars at home, and travelling on trains and buses.

The YouGov poll carried out in July for First Group revealed 39 per cent of the 2,200 adults questioned thought public transport use would increase in the next five to 10 years, up from 30 per cent since November, when the poll was last taken.

It is not hard to see why. Fuel has become expensive, with petrol and diesel going up 20-30 per cent since the beginning of the year.

Traffic chokes the UK’s main cities and motorways, and congestion charges in London, and soon Manchester, add to a financial burden that is threatening to increase as recession looms. Growing environmental awareness and health concerns play their part too.

Arriva has been one of the beneficiaries, although its business mix is somewhat different to its peer group, being less exposed to UK rail than its rivals. It expanded into Europe in 1997.

At the half-year, Arriva reported a 50 per cent rise in income from its European business, which includes both bus and rail.

With about £1bn of an estimated £200bn a year market in revenue terms, it sees much potential, especially with European legislation driving the liberalisation of the continent’s state-owned transport infrastructure over the next 10 years.

Although Arriva’s business is skewed towards contracted income – fees earned from government authorities to run buses and trains – it still gets 40 per cent of its revenue from bus and rail fares.

The inclusion of income from its Cross Country rail franchise was behind a more than threefold increase in rail revenues in the half.

August 20, 2008

RMT Tube cleaners’ strike suspended after living wage breakthrough

RMT: August 20 2008

A 48-HOUR strike by more than 700 RMT members working for four cleaning subcontractors on London Underground scheduled to begin at 05:30 tomorrow morning has been suspended after a breakthrough in talks that will deliver the London living wage to all Tube cleaners.

After days of intensive talks at conciliation service ACAS, workers on Tubelines contracts will receive an initial 60p an hour increase from September 1, and will receive a further £1.30 hourly increase from April 1 2009.

Workers on Metronet contracts will receive the London living wage, currently £7.45 an hour, from the beginning of September.

“This is a massive breakthrough which will see all Tube cleaners paid the London living wage by next April at the latest.

“We would have liked to have seen £7.45 implemented immediately for all, but on Tubelines contracts we have secured an immediate minimum increase of 60p an hour with the rest following by next April.

“That is a massive improvement on the prospect presented by the mayor of having to wait for contracts to be re-negotiated, which would have left some of our members waiting until 2012

“Tubelines have today also assured us that they will take over the entire responsibility for funding the London living wage on their contracts from 2010, and in our view that should give an ideal opportunity for Tubelines to take its cleaning back in-house.

“As a result of this breakthrough the RMT executive has today agreed to suspend the 48-hour strike scheduled to begin tomorrow.

“There are other issues that remain to be dealt with, as well as internal funding issues arrangements between contractors and clients, but our cleaning members have made a principled stand for a living wage and have conducted themselves in a way that is a credit to the entire trade union movement.

“I am sure that people will recognise that this result has been achieved by taking united action, and that this is a fantastic result for workers we were told would never be organised,” Bob Crow said.

ends

Note to editors: Some 700 RMT cleaners working for cleaning subcontractors ISS, ITS, ICS and GBM have taken strike action twice in their campaign for a living wage: a 48-hour strike between July 1 and 3, and an earlier 24-hour stoppage on June 25 and 26.

Portishead rail link plan is latest in long-running saga

Bristol Evening Post: 20-August-2008

In the new housing development near the old railway station in Portishead there is a length of rail and the words "Bristol & Portishead Pier & Railway Company 1867" carved in some paving.

It is a small reminder of a line that transported passengers between Portishead and Bristol for 100 years.

With the purchase this week by North Somerset Council of a three-mile section of derelict track, the prospect of trains running along the line once again has moved a step closer.

The reopening of a route first envisaged by Brunel in 1839, opened in 1867 and closed to passenger traffic in 1964, would give thousands of commuters from Portishead a realistic alternative to driving to work in Bristol.

Currently, the only other option is taking the bus, which can take more than an hour.

If the branch line is reopened, journeys to the city will take less than 30 minutes.

A survey carried out by two Portishead councillors in December 2007 found that between 7am and 9am, 2,400 cars left Portishead on the Portbury Hundreds and 1,500 via Clapton Lane.

This number of commuters driving to Bristol every morning will only increase, as Portishead's population has more than quadrupled in size since 1960 and continues to grow.

Alan Matthews, chairman of the Portishead Railway Group, said it was a "no-brainer" why the branch line should be re-opened.

"Why is it so important? Ask all the residents of Portishead," said Mr Matthews.

"At the moment, it can take more than 40 minutes to get to the motorway in the rush hour.

"If the line was open, you could get to Bristol in less than that.

"We believe that if the line was re-opened it would be well used.

"This is a no-brainer. It obviously has to be opened.

"There are more and more people living in Portishead who work in Bristol. In fact, I would say that the majority of people living in Portishead work in Bristol, and they just can't get in very easily."

North Somerset Council appointed a team of consultants to assess the potential for the reintroduction of a passenger rail service between Bristol and Portishead.

In their report, published in June, the cost of the scheme was estimated to be between £7.7 million and £14.4m.

This includes building a new road bridge at Quays Avenue in Portishead.

Operating costs were assessed by consultants Halcrow at between £1.7m and £2.4m per year, resulting in a likely subsidy of between £400,000 to £900,000. This would be paid by North Somerset Council.

The difference in prices is due to the various options proposed.

The cheapest of these would see one train an hour calling at Portishead and Temple Meads, with track reinstatement, a new station at Portishead and a signal upgrade.

The most expensive option would see two trains an hour on the line at peak times and one in less busy periods, with trains calling at Pill, Ashton Gate, Bedminster and Parson Street, a passing loop and additional signals.

The cost of tickets was not included in the Halcrow report, but if First Great Western becomes the line operator, as expected, tickets from Portishead to Temple Meads would probably cost about the same as the fare from Bath – £8 for an adult return.

In Wales, the reopening of the Ebbw Valley Railway means passengers can make the journey from Ebbw Vale to Cardiff by train for the first time in more than 40 years.

During its first six months, it carried more than 250,000 passengers.

With 44,000 passengers a month, the trains have not only doubled the forecast of 22,000, but also smashed the 2012 target of 33,000 passengers.

The success of the Ebbw Vale line could bode well for people in Portishead.

Even in 1966, Portishead Town Council was pressing for the line to Bristol to be reopened.

More than 40 years of wanting and waiting may soon be over, but Mr Matthews thinks it could still be another four years – at the earliest – before train travel between Bristol and Portishead is once again possible.

Four shortlisted for South Central franchise

Financial Times: August 20 2008 09:00
By Amanda Vermeulen

The shortlist of bidders for the new South Central rail franchise was announced on Wednesday by the Department for Transport and includes the incumbent, GoVia, National Express; Stagecoach; and NedRailways, which is wholly owned by the Dutch Railways.

Each of the four companies has established subsidiary operating entities to tender for the franchise, which will be awarded in early summer in 2009, and start operating from 20 September the same year.

The successful bidder will be asked to place a £30m performance bond and a £25m season ticket bond with DfT.

The DfT said the value of the franchise to the winner was not yet in the public domain as this was part of the commercial negotiations with the shortlisted bidders.

The contract will expire in July 2015, but the final year of the franchise hinges on the successful bidder achieving acceptable performance levels. DfT may prolong the contract by an additional two years after 2015.

The length of the South Central franchise was deliberately kept short to allow DfT to dovetail it with the Thameslink programme. Franchises typically run for seven to 10 years.

The brevity of this contract is thought to have deterred some of the usual bidders from tendering, including Deutsche Bahn, which earlier this year had been widely expected to add its name to the list of interested parties.

In January Deutsche Bahn bought Chiltern Railways, which runs trains from London Marylebone to Aylesbury, Warwick and Birmingham under a 20-year franchise.

DfT plans to increase capacity on the South Central service by about 10 per cent over and above the additional passenger numbers that will be incorporated into the current Southern franchise.

The Southern franchise routes include trains between London and the south east coast, via London, Surrey, East and West Sussex, and from London to parts of Kent and Hampshire. From June, it incorporated the Gatwick Express.

Last year, GoVia, a joint-venture between Go-Ahead and Keolis of France, carried more than 120 million passengers on its Southern fleet of 300 trains. It also operates the Southeastern and London Midland franchises.

Keith Ludeman, Go-Ahead’s chief executive, told the FT earlier this summer that he was confident Govia had a good chance of retaining the franchise.

The successful bidder in the current franchise round must help DfT with its plans to extend the East London Line and play a role in the £5.5bn Thameslink programme. Both are expected to increase the capacity of rail services into and through London quite significantly, according to DfT.

Other proposals include introducing smartcards; later running services; improved reliability and better environmental performance.

Tom Harris, rail minister, said DfT wanted passengers in the franchise area to enjoy a number of improvements, such as longer trains, safer stations and later running services.

”It’s also vital that the winner facilitates the delivery of major projects that will substantially increase capacity on some of the busiest parts of the rail network.”

August 19, 2008

Tubelines strike suspended as company increases offer

RMT: August 19 2008

A 72-HOUR strike by 1,000 RMT members at Tube infrastructure company Tubelines due to start at noon tomorrow has been suspended by Britain’s biggest rail union after the company today increased its pay-and-conditions offer.

The offer will now be put to RMT members in a referendum, with a recommendation to accept.

In last-ditch talks that began this morning, the company raised its offer on a two-year deal to 4.99 per cent this year (backdated to April 1), and RPI (February 09 figure, but currently 5 per cent) plus 0.85 per cent from April 2009.

The offer includes a minimum £1,000 salary increase for lower paid grades and apprentices, while points technicians will receive an additional increase of £3,000 in their basic salaries in addition to the 4.99 per cent in year one of the deal.

The company also offered to increase travel subsidy from home to place of work from 80 to 90 per cent from April 2009, gave a commitment to pursue with Transport for London the provision of Oyster Cards, and agreed to separate discussions on a range of other issues.

“There has been some hard negotiating going on today, and the RMT executive has agreed that the resulting new package that Tubelines has put on the table should be recommended to our members,” RMT general secretary Bob Crow said today.

“The union has therefore this evening agreed to suspend tomorrow’s strike to allow a referendum on the offer to take place by the beginning of September.

“If the deal is rejected, strike action will be put back on.

“RMT members at Tubelines are to be congratulated for the unity and commitment they have displayed during this dispute, not least in the face of hostile media coverage,” Bob Crow said.

Bechtel Favored for Huge London CrossRail Plan

Business Week: August 18, 2008
by Mark Leftly

Crossrail is inviting five groups to bid to become its partner in a rail link between Heathrow and Essex, with Bechtel said to have the edge.

Doug Oakervee, the executive chairman of Crossrail, will invite five parties to compete for the right to oversee the £16bn west-to-east London rail link this week.

U.S. giants Bechtel and CH2M Hill, as well as Kent-based Laing O'Rourke, are among the shortlisted groups. They will vie for the role of project delivery partner, similar to the job performed by CH2M Hill and Laing O'Rourke as part of the private sector consortium overseeing the construction of the London 2012 Olympic venues.

Crossrail's seven-strong board is expected to finalise the short list at a meeting tomorrow, with letters sent to the successful parties on Tuesday or Wednesday. A winner will be selected by the end of the year, at which point it will have to appoint companies to key contracts that will create the rail link from Heathrow to Essex.

Bechtel is considered the hot favourite for the role. Its bid team is headed by American Cliff Mumm, who oversaw work on the reconstruction of Iraq and the Jubilee Line extension on the London Tube. Bechtel was also heavily involved in guiding Crossrail through the Parliamentary process; the project only received Royal Assent last month, two decades after it was first mooted.

A transport industry source said: "Bechtel ought to get the job. It's a natural for them, given Bechtel's excellent performance on the Jubilee Line."

Laing O'Rourke has emerged as a contender for a role in its own right over the past two years. Its work on the Olympics was deigned to help it move away from being a straight construction firm and last year it hired Tony Douglas, who had overseen the building of Heathrow's Terminal Five.

However, a leading industry expert said that whichever company was selected would end up in conflict with another Crossrail appointment. The board will also hire a project manager to help Crossrail keep in contact with all its major stakeholders, including National Rail and London Underground, throughout the construction programme.

Although the role is subservient to the project delivery partner, the expert said: "Splitting it like this means there will be a nasty interface between the two selected parties. This has the potential to be another Millennium Dome."

The source warned that Boris Johnson, the London Mayor, should be on his guard that the flawed contractual structure behind Metronet, the failed London Underground group, is not reintroduced on the Crossrail project. This contract allowed the umbrella organisation to award maintenance work to its own construction divisions, a move that led to its downfall.

"If I were Conservative Party Central Office, I would be on Boris like a rash to make sure Transport for London helps run Crossrail properly."

Next month, headhunters will start approaching candidates to head up a revamped Crossrail. Rob Holden, the man who led the construction of the high-speed Channel Tunnel extension, is in line for the chief executive's role. However, he is known to favour the chairmanship, for which he would compete with Mr Oakervee.

Rising rail demand pulls Deutsche Bahn ahead

Financial Times: August 19 2008 03:00
By Gerrit Wiesmann in Frankfurt

Record petrol prices appear to have spurred hundreds of thousands of Germans to ditch their cars for the train, a trend that has buoyed state railway Deutsche Bahn ahead of this autumn's flotation of its train operations.

Hartmut Mehdorn, chief executive of the Bahn and newly carved-out subsidiary Deutsche Bahn Mobility and Logistics, said the group carried 941m passengers in the first half of the year, 30m more than in the same period last year.

The record figure - which equates to an average of 165,000 more train journeys a day - came as car drivers and airline operators struggled with oil-related annual price rises of 80 per cent. In comparison, Deutsche Bahn's electricity costs rose only half.

The company said the distance travelled by Germans in their cars in the first six months of the year had fallen 1.5 per cent, while the distance travelled with DBML and its rivals had risen 1.4 per cent.

With business at Europe's largest rail-freight operation also showing few signs of fallout from the global economic slowdown, the Bahn said DBML's full-year results should improve on last year, when it made €1bn in net profit on €31bn in sales.

Mr Mehdorn refused to say when a planned 24.9 per cent of DBML would be sold - advisers have considered late October or early November. But he said a recent tour of potential investors had shown that appetite was still good.

Internal growth and acquisitions - such as the purchase of UK freight operator EWS - boosted first-half sales 6.8 per cent to €16.2bn ($23.8bn). Net profit grew 5.4 per cent to €915m.

In spite of first encounters with economic ripples in the wake of financial market woes, Mr Mehdorn said "freight traffic continues to perform very well". Were it not for bottlenecks at European ports, DBML "could transport even more" cargo, he said.

But Mr Mehdorn cautioned that DBML would not escape all adverse effects. He said freight growth had slowed, last year's electricity bill of €2bn was likely to rise and engine drivers had achieved big wage rises after a strike.


See also:


Deutsche Bahn Gears Up for Share Listing With Higher Earnings

Deutsche Welle: 18.08.2008

DB logo.jpg
Deutsche Bahn announced across-the-board increases in its net value

Germany's state-owned railway company Deutsche Bahn prepared the ground for its stock market debut later this year by unveiling solid increases in earnings and revenue, and record passenger traffic for 2008.

Announcing the latest results, DB chief Hartmut Mehdorn confirmed on Monday, Aug. 18, that 24.9 percent of its newly formed subsidiary DB Mobility Logistics, which is now home to DB's passenger and logistics operations, would be listed on the stock market in the coming months.

Analysts have said the planned partial privatization of Europe's biggest rail group should generate about 6 billion euros ($8.8 billion), with DB having launched a drive for international investors to buy into the share listing.

DB said the group's earnings before interest, tax and special items rose 6.8 percent to 1.4 billion euros during the first half of the year with net profit increasing by 5.4 percent to 915 million euros.

"Never before have so many people in Germany traveled on DB trains in the first half (of the year), and never before were more goods transported by rail," said Mehdorn.

The rail company said revenue jumped by 8.2 percent to 16.6 billion euros in the six months to the end of June compared to the same period last year.

Passenger traffic increased by 3 percent to a record 941 million, which corresponds on average to about 5.2 million people travelling on DB's trains each day.

DB's higher figures may in some part also be attributed to its increasing of commuter and main-line fares by 2.9 percent last September.

The volume of DB's goods traffic rose 26.3 percent to 197 million tons.

Under the group's sell-off plan, the state would have a 75.1-percent stake of DB's passenger and freight operations. However, the partial privatization means that Berlin would retain 100 percent control of the rail company's railway stations as well as its 34,000 kilometers (21,748 miles) of track network and its energy supplier operations.

The Bahn also announced Monday it would be increasing fares in December. Increases in fuel and personnel costs forced the company to raise ticket prices, Mehdorn said. The rail company said it would specify the exact amount of the increase in September. Fares were last increased by an average of 2.9 percent in December 2007.

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Deutsche Bahn to raise ticket prices by up to 3.2 percent in December

Thomson Financial News: 08.18.08

FRANKFURT - German rail operator Deutsche Bahn plans to raise ticket prices on passenger trains by up to 3.2 percent in December to bolster profitability amidst rising energy costs, Financial Times Deutschland reported, not citing its sources.

The paper said in a pre-release of an article to be published Tuesday the price hike will lead to some 120 million euros additional revenues in 2009.

Chief executive Hartmut Mehdorn at a press conference earlier Monday said Deutsche Bahn plans to raise prices in December, declining to provide details.

The company last raised prices by 2.9 percent on average in December 2007.

Financial Times Deutschland also said Deutsche Bahn is set to acquire a leading logistics company in Romania for close to 100 million euros, citing financial sources.

A 24.9 percent stake in Deutsche Bahn's DB Mobility Logistics unit is slated for privatisation in an Initial Public Offering (IPO) expected for October or November that could yield up to 5 billion euros.

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Deutsche Bahn H1 EBIT rises 6.8 percent to 1.4 billion euros confirms FY targets

Thomson Financial News: 08.18.08

FRANKFURT- Deutsche Bahn AG. said first-half earnings before interest and tax (EBIT) before one-offs rose 6.8 percent year-on-year to 1.4 billion euros and said it is confirming its full-year targets.

Chief executive Hartmut Mehdorn at a press conference said the German railways and logistics company still targets full-year sales to grow by 5 percent, but said the company starts to feel slower economic growth. It sees full-year EBIT matching last year's level of 2.895 billion euros.

Sales in the first-half of the year ended June 30 rose 8.2 percent to 16.6 billion euros.

A 24.9 percent stake in Deutsche Bahn's DB Mobility Logistics unit is slated for privatisation in an Initial Public Offering (IPO) expected for October or November that could yield up to 5 billion euros.

First-half sales in the unit that comprises Deutsche Bahn's passenger trains, rail cargo and logistics operations were 16.2 billion euros, while EBIT before one-offs was 1.1 billion euros.

See also:


Deutsche Bahn says DB Mobility's 1st day of trading Oct 27

Thomson Financial News: 08.19.08

FRANKFURT (Thomson Financial) - Deutsche Bahn AG. has set October 27 as the first day of trading in its DB Mobility Logistics unit, Capital reported in a prerelease of an article to be published Thursday, citing banking sources.

A spokesman for the German state-owned rail operator and logistics company declined to comment the report, reiterating the company plans to list the unit in autumn.

Financial Times Deutschland earlier reported Deutsche Bahn has moved the first day of trading to late October from previously November 5.

The report said shares in the unit that comprises the company's passenger handling, rail cargo and logistics operations will be offered from October 13 through October 24.

Deutsche Bahn plans to sell a 24.9 percent stake in the unit through the Initial Public Offering (IPO), which it expects to yield around 5 billion euros.

August 18, 2008

Eurostar cleaners set to strike

BBC News: 17 August 2008

Workers who clean Eurostar have voted to strike on Bank Holiday Monday in a dispute over pay.
eurosatar train.jpg
The pay dispute has been raging for a number of years

More than 120 members of the Rail Maritime and Transport (RMT) union will walk out for 24 hours on 25 August.

The union wants a higher basic wage than the £6.37 an hour the staff, who work for contractor OCS, receive.

OCS was unavailable to comment. A Eurostar spokeswoman said services would be as normal and contingency plans would be in place if necessary.

Eurostar is expected to ferry about 140,000 passengers between London, Paris and Brussels during the Bank Holiday weekend.

Bitter dispute

The union and OCS management have clashed for some time over cleaners' wages.

Union officials said cleaners were not paid extra for working bank holidays.

In addition, RMT General Secretary Bob Crow argued there was no pension, sick pay and only the "bare minimum legal holiday entitlement".

He called the situation a "disgrace".

A strike was threatened in the run up to Christmas 2006 but was called off amid further negotiations.

Then, union officials had been demanding pay of at least £7.20.

This is a level that is regarded by the Greater London Authority as the minimum rate that a worker can live on to provide a decent standard of living for themselves and their family in the capital.

August 13, 2008

Call to arms for double-track

Wilts & Glos Standard: 12th August 2008
By Andy Woolfoot

COMMUTERS are being called upon to join the fight for better rail services in Gloucestershire.

Rail users travelling to work tomorrow at Kemble Station will be given leaflets and asked to sign petitions supporting Gloucestershire County Council’s campaign to add an extra track to the existing single line railway between Kemble and Swindon.

GCC says the extra track will help trains run on time, provide better business links and boost the local economy and switch more freight from road to rail improving congestion and the environment.

In June the Government’s Office of the Rail Regulator refused to provide funding for Network Rail’s proposals to double the railtrack, effectively putting the scheme on the backburner for several years.

County council bosses hope that this campaign can bring enough pressure on the ORR to bring the scheme back on track.

Cllr Julie Girling, GCC Cabinet member for the environment, said, "We have been lobbying constantly on this issue for many years and yet no-one outside the county seems to be listening to us.

"Without the extra track there is a real danger that the growth in new housing will far outstrip new jobs leading to a slowdown in the local economy, more people commuting out of the area and the inevitable knock-on effect of more congestion and carbon emissions."

In an Adjournment Debate on June 30, Transport Minister Tom Harris confirmed his awareness of the underlying issues and invited the rail industry to re-submit its business case to the ORR.

He also offered the assistance of his officials at the DfT for the re-submission of the case.

To register your support for the campaign visit www.gloucestershire.gov.uk/railpetition or fill in the coupon below and send it to Freepost RRYJ-GCLA-TLHR, Gloucestershire County Council, Environment Directorate, Shire Hall, Gloucestershire, GL1 2TH.

August 12, 2008

Rail maintenance workers’ strike action suspended as Network Rail agrees to fresh talks

RMT: August 12 2008

FOUR DAYS of strike action by some 12,000 Network Rail maintenance workers scheduled to begin on Friday have been suspended by Britain’s biggest rail union after Network Rail agreed to further talks tomorrow.

A face-to-face meeting between RMT general secretary Bob Crow and Network Rail chief executive Iain Coucher on the long-running dispute over harmonisation of terms and conditions is also to be scheduled as soon as possible.

The union, which has already mounted two weekend strikes, was due to escalate its action after a breakthrough made in earlier talks was vetoed by Network Rail at director level.

“We have been seeking meaningful talks with Network Rail and a face-to-face meeting with Iain Coucher in order to get negotiations back on track,” Bob Crow said today.

“Network Rail has now responded positively, and to allow fresh talks to take place the RMT executive has today suspended the four-day strike scheduled to begin on Friday.

“The ball is now firmly in Network Rail’s court and we now expect the company to demonstrate that it is prepared to negotiate with us properly and in good faith.

“Our members have already shown quite clearly where they stand with two weekends of rock-solid strike action, and Network Rail should be under no illusion that they remain determined to win a harmonisation package that delivers fairness and justice,” Bob Crow said.

Waterman calls for Skills Academy

Railway People: August 12th 2008

Rail entrepreneur Pete Waterman is leading calls for the establishment of an employer-led National Railway Skills Academy.

‘We need a thorough-going national railway apprenticeship scheme,’ says Pete. ‘Too many schemes are light weight, paper-based and impracticable. We need people who understand everything about railways from ballast and embankments to overhead catenary and computing. And we need it now.’

Surge in demand

Waterman’s call comes as infrastructure companies square up to the surge in demand this summer for more railway engineers and technicians. With work on Crossrail expected to start early next year and projects on Thameslink and the London Underground forging ahead, Britain’s acute skills shortage could seriously hamper the UK’s fast expanding rail industry.

Ambitious rail projects overseas from Dubai to Dublin soak up the international rail skills base causing further headaches for rail chiefs.

Gordon Brown meeting

‘A high-profile national railway skills apprenticeship scheme run by and for railway employers that gets young people building a worthwhile career anywhere in the railway industry has to be good for all of us,’ says Pete.

Recently Waterman met Gordon Brown and put his idea to the prime minister, urging government backing for the scheme. ‘It‘s no good pumping money into quangos and agencies, I told him. We need a national nuts and bolts scheme run by us, the employers, for the good of the whole industry.’

Waterman speaks from experience. The one time locomotive fireman is also chairman of the London and North Western Railway Company based in Crewe. LNWR maintains Class 86 and Class 90 locomotives for Freightliner and Voyagers for Bombardier Transportation. With more business piling up LNWR needs skilled engineers to cope with demand.

‘The staff just aren’t there,’ says Pete. ‘That’s why we want to create the National Railway Skills Academy. This will provide detailed and thorough railway apprenticeships at three levels of entry: First for school leavers aged sixteen who have just completed GCSEs. Secondly for graduates fresh from university looking for a career with plenty of different opportunities. Thirdly for non-academic folk looking to develop a solid rewarding career in one of Britain’s most vibrant industries. The NRSA will have schools in Derby, York, Crewe and London.’

We need a national scheme

The NRSA will complement existing schemes; LNWR itself runs apprenticeships at Crewe. ‘Companies like Network Rail and Tube Lines have excellent apprenticeship schemes but we need a national scheme that attracts people to the industry generally.’

‘Working in railways is hard, I know from experience. There’s lots to learn, miles to travel and you’re working all sorts of hours. You won’t pick it all up on a two week familiarisation course. A good apprenticeship deepens and expands the body of knowledge acquired.’

Stable, secure, well paid and worthwhile

‘A career in railways offers endless variety, all sorts of different challenges and yet it is stable, secure, well paid and worthwhile. Who wants to be a nine-to-fiver anyway? The railway is a growing industry which is itself working hard to keep valued staff and develop people potential.’

The National Railway Skills Academy marks a turning point in the development of new railway staff, equipping the industry for the changes and expansion that lies ahead. ‘Together we can build something durable and concrete rather than just papering over the cracks in the plaster,’ says Pete who will be talking more about the National Railway Skills Academy when he introduces the RailStaff Awards 2008 at the International Convention Centre in Birmingham on 1st November.

Ebbw Vale rail link is a victim of own success

Western Mail: Aug 11 2008
by Rhodri Clark,

INVESTMENT in a flagship Welsh railway scheme was skimped after the number of people using the trains was “woefully underestimated”, an AM claimed yesterday.

Last week the reopened Ebbw Vale railway passed its first six months of operation, with figures showing it has carried more than a quarter of a million passengers.

With 44,000 passengers a month, the trains have not only doubled the forecast of 22,000, but have even smashed the 2012 target of 33,000 passengers.

But while the success of the £30m Welsh Assembly Government-funded scheme has delighted officials, there is concern that the scheme missed out on further investment because of the inaccurate forecast.

During the construction phase, a decision was made to provide just three miles of double track instead of nine. That rules out any additional services over the line – including a link to Newport, an omission that has been strongly criticised – without major expenditure.

Providing nine miles of double track in the original project would have been relatively cheap, because the entire railway was a construction site. Now the work would take place on a live railway, with expensive additional safety measures required.

Blaenau Gwent AM Trish Law is now seeking urgent talks with transport minister Ieuan Wyn Jones to see if remaining elements of the rail scheme, which could help ease “gross overcrowding” on the line, can be speeded up.

“Clearly there has been an under-investment in the development and restoration of the rail link between Cardiff and Ebbw Vale,” she said.

“While we need, for example, a greater length of double track, the cost is going to be significantly more than it would have been had these matters been addressed during track construction.

“Set against the need for more investment in the line that already exists is the need to invest in the missing links – the Newport spur and the extension of the line to both Ebbw Vale town and Abertillery.

“It is evident that passenger forecasts have been woefully underestimated. I get many complaints of standing-room only and grossly overcrowded trains.

“I shall be writing to Arriva to see if there is adequate rolling stock and to see what can be done to alleviate the problems.

“Having said that, I am delighted that the demand for passenger services between Ebbw Vale and Cardiff is so great.”

Blaenau Gwent council, which implemented the project to reopen the line for the first time in more than 40 years, said the train’s popularity reflected increased activity in the local economy.

A spokesman said: “The number of passengers using the Ebbw Valley railway is currently twice that forecast in 2002. This is very good news.”

Arriva Trains Wales commercial director Mike Bagshaw said: “There is no doubt of the popularity of this service, which has exceeded all expectations.

“Saturdays and the holiday periods are the most popular times to travel on the line and we have put on extra carriages at these times to cope with demand. Performance has also been high, with more than 96% of trains arriving within five minutes of the published time.”

The passenger numbers could easily have been higher. The service was meant to start in December, bringing crowds of Christmas shoppers on board, but was delayed until February 6.

Two of the six new stations, Crosskeys and Llanhilleth, opened months later. Easter was exceptionally early and cold, and the spring and summer weather have not been the best for days out.

The credit crunch may also have held back the number of commuters using the train, by stopping many Cardiff workers buying houses near the new stations.

A WAG spokesman said: “The new link shows our commitment to a strong role for railways in a greener 21st-century Wales. It will also act as a catalyst for economic regeneration.

“Network Rail is currently carrying out a feasibility study on behalf of the WAG to look at options for running a service between Ebbw Vale and Newport.”

Protest at rail ticket office cuts

Press Association: 11 August 2008

Thousands of rail passengers have objected to plans by a leading train company to cut the opening hours of some of its ticket offices.

Consumer group Passenger Focus said it feared the proposals by South West Trains (SWT) to reduce opening times at 114 stations would lead to passengers paying more for off-peak tickets.

SWT has said it planned to install more and better ticket machines, but Passenger Focus said there was still a need for station staff.


See also:

Unions welcome Passenger Focus objection to SWT ticket-office cuts

RMT: August 11 2008

Government urged to block ‘unpopular and unjustifiable’ attack on services

BRITAIN’S TWO biggest rail unions have given a warm welcome to the objection to plans by South West Trains to slash ticket-office opening times at 114 stations lodged today with the government by rail users’ watchdog Passenger Focus.

RMT and TSSA joined forces over the last few weeks in a campaign to urge passengers to protest to Passenger Focus over plans that would leave dozens of stations without ticket offices all weekend, and dozens more without cover in the evenings and early mornings.

Passenger Focus has the power to challenge the planned cuts and today urged the government to instruct SWT to shelve them, and it revealed today that it had received thousands of objections from passengers (link to press release below).

The two unions have today also asked the Department of Transport to ensure that the company respects the wishes of its passengers, and are urging objectors to do the same.

“This is a good day for passengers and rail workers alike, and Passenger Focus is to be congratulated for putting the case against cuts that are as unjustifiable as they are unpopular,” RMT general secretary Bob Crow said today.

“At a time when passenger numbers are growing and footfall through stations is at record levels we need to see more staff on stations, not fewer, and we have written to the DfT urging it to uphold the objection lodged by Passenger Focus,” Bob Crow said.

“The support for this campaign from all over SWT’s franchise area has been overwhelming, but it won’t be over until we know these plans have been abandoned,” TSSA general secretary Gerry Doherty said.

“It is important that objectors now to write to the DfT asking the government to respect passengers’ wishes and tell SWT that its ticket-office cuts are not on,” Gerry Doherty said.

ends

The Passsenger Focus press release can be found at:

http://www.passengerfocus.org.uk/news-and-publications/press-release.asp?dsid=1841

The Full Passenger Focus objection can be found at:

http://www.passengerfocus.org.uk/news-and-publications/document-search/document.asp?dsid=1839

Early Day Motion 1969

South West Trains ticket offices

Tabled by Alan Whitehead and signed by 23 others before the summer recess:

"That this House notes with extreme concern plans by South West Trains to close ticket offices and cut ticket office opening hours at 114 stations; believes that such cuts cannot be justified when these stations have seen a combined increase in passengers of nearly 27 per cent. in the last year; is further concerned that the cuts will dramatically increase the number of stations that will lose their ticket offices entirely during weekends and will leave stations unstaffed at weekends and in the evening making railway stations and passengers who use them feel less secure; believes that replacing staff with ticket machines will also reduce the quality and range of services available to passengers; and calls on South West Trains immediately to withdraw its plans."

HLOS train delivery blueprint updated by government

Transport Briefing: 04/08/08

Delivery of the 1,300 new carriages as part of the government's High Level Output Specification (HLOS) for Britain's rail network is to be split into three phases.

The move, revealed in an update to the Department for Transport's High Level Output Specification (HLOS), is designed to facilitate a complex plan to cascade existing carriages within and between train operating franchises which will be unleashed by the arrival of new rolling stock.

Train operators expected to gain new rolling stock under phase one include National Express East Anglia, TransPennine Express and First Capital Connect.

The three phases cover vehicles that will be delivered through variations in the terms of existing franchises. In addition, 'other' vehicles will be procured separately. These include trains for the Thameslink Programme, vehicles for the new yet-to-be-awarded South Central franchise, and the 106 Pendolino carriages recently ordered for the West Coast Main Line and due to enter service by 2012.

According to the DfT the plans are not fixed and the progress of rail infrastructure projects or supply chain constraints among train manufacturers or rolling stock leasing companies could lead to adjustments in the phasing.

Previously the DfT has agreed orders for 317 new carriages (Southern 92, London Midland 217 and Chiltern 8) which are due to be delivered between 2009 and 2011.

High Level Output Specification (HLOS) Plan Update July 2008

Phase TOC/Scheme Additional Vehicles Routes
1 National Express East Anglia 188 London to Stansted, Cambridge, Ipswich, Norwich and Essex suburbs
1 TransPennine Express 42 Newcastle and Middlesbrough to Liverpool via Leeds and Manchester; Manchester to Cleethorpes via Sheffield; Blackpool to Manchester
1 First Capital Connect 1 61 London to Cambridge and Herts
1 London Midland 1 16 London to Milton Keynes and Northampton
2 First Great Western 52 Bristol area; London to Thames Valley
2 c2c 40 London to south Essex
2 South West Trains 105 London to SW suburbs, Windsor, Reading, Surrey & Hants
2 London Midland 2 51 Birmingham area
3 Northern Rail 182 Manchester , Leeds, Sheffield, Liverpool & Newcastle local services
3 First Capital Connect 2 24 London to N London and Herts suburbs
3 London Midland 3 26 Birmingham area
3 Arriva Cross Country 6 Birmingham to Leicester
3 East Midlands Trains 3 East midlands
Other First Capital Connect KO1 44 Brighton to London to Bedford
Other First Capital Connect KO2 126 Sussex & Kent to London to Beds & Cambs
Other South Central 106 London to South London, Surrey and Sussex coast
Other Southeastern 110 London to SE London & north Kent
Other Chiltern Railways 12 London to Bucks & Birmingham
Other Virgin West Coast 106 London to Birmingham, Manch, Liverpool & Glasgow

TOTAL 1300

August 9, 2008

Give Derby £1.4 billion train-building contracts

Derby Evening Telegraph: 09-August-2008

A FORMER Transport Minister has called on the Government to give a £1.4bn train-building contract to Bombardier.

spellar.jpg

John Spellar (pictured), who was Minister for Transport from 2001 to 2003, said the Government must live up to Gordon Brown's slogan – British jobs for British workers – by awarding the contract for new Thameslink trains to the Litchurch Lane-based firm.

The Labour MP has warned that industry in Derby and across the Midlands would be hit if the order went to one of the other bidders – all of whom are based outside the UK.

And Bombardier chairman Colin Walton said that if the company secured the contract, it could mean hundreds of new jobs for the company and its supply chain, as well as a huge cash boost for the region.

The company, which has been building trains for more than 150 years, has a team of 100 employees preparing the ground for the bid, which will be submitted next year.

The other companies invited to tender for the contract – to build 1,100 carriages for the line between Bedford and Brighton – are French firm Alstom Transport, Siemens of Germany and the Japanese-owned Hitachi Europe group.

Mr Spellar said: "This huge order doesn't just mean jobs in Derby but right across the Midlands through the supply chain.

"The Department for Transport needs to take seriously the Prime Minister's slogan – British jobs for British workers.

"If a company wants to sell trains to the German railways, the rolling stock has to be built in Germany, and if a firm wants to sell trains to the French railways, the trains have to be built in France.

"We should be looking after British industry in the same way."

It was at last September, at the Labour Party's annual conference, that Prime Minister Gordon Brown promised that the Government would strive to create "British jobs for British workers".

But yesterday, Mr Brown's office said it could not comment on anything to do with the Thameslink contract while the tendering process was under way.

Bombardier chairman Mr Walton said he thought British companies bidding for contracts in Britain were not in such a strong position as, for example, German companies bidding for contracts in Germany.

"European regulations are interpreted and enforced differently in different countries," he said.

"Mr Brown is the Prime Minister and if he says the way forward is British jobs for British workers, then we welcome that, though we haven't seen much evidence of it yet."

Mr Walton has no doubts about what the benefits to the region would be if the contract was won.

Economic studies carried out by the company suggest that for every £1 put into Bombardier, £2 would be put into the regional economy.

"In Bombardier and its supply chain, I would be surprised if it did not mean hundreds of new jobs."

Failure to secure the Thameslink contract, Mr Walton said, would not affect job security at the firm but it could mean job losses in the supply chain.

Tony Forster is managing director of Litchurch Lane, Derby, engineering firm Tecforce, which has received a lot of business from Bombardier. "A large contract like this for Bombardier would mean security for a lot of smaller firms into the next decade," he said.

Bombardier is also hoping to win two other big contracts.

The first is to provide 2,000 carriages as part of the Inter-City Express Programme and the other is to build 600 carriages for the London Underground's Piccadilly Line.

August 8, 2008

Network Rail heads may lose bonus

BBC News: 8 August 2008

Network Rail chiefs could see their bonuses cut after a report commissioned by rail regulators suggested a raft of sweeping changes.

The report suggests amending the firm's bonus scheme and making it easier for board members to be dismissed.

Customers and politicians have criticised the fact that executives got their bonuses despite engineering work overrunning, and causing problems.

Last month, Network Rail decided to set up an enquiry into how it has been run.

Network Rail runs the UK's rail infrastructure, and instead of shareholders is controlled by "members" who are drawn from the rail industry and general public.

The board of directors are held to account by the members.

Concern

Earlier this year, Network Rail announced that its top three executives would receive bonuses running into hundreds of thousands of pounds, despite public anger over cancelled and delayed journeys during the new year.

Two executives received bonuses of more than £200,000, while chief executive Iain Coucher pocketed more than £305,000.

Furthermore, as part of a separate three-year incentive plan, two of the executives got an additional £153,000, while Mr Coucher received £205,000.


It is high time we ended the fat controller bonuses at Network Rail where the bosses reap huge rewards regardless of performance failures
Gerry Doherty, leader of the TSSA rail union

Network Rail has already been fined £14m by ORR for the various overruns, one of which was at Rugby and caused chaos on the West Coast Main Line.

The report into Network Rail was carried out by KPMG at the request of the Office of Rail Regulation (ORR).

In its report KPMG said that Network Rail's members had raised concern that executive remuneration did not follow an agreed process.

Among its conclusions, KPMG suggested forcing the board to write a public letter to explain cases where the firm had underperformed.

However, KPMG said that while most members were motivated by "sound intentions", others felt some members could be "influenced" by Network Rail's management board.

'Fat controller'

ORR chief executive Bill Emery said that he welcomed the report and it would help ORR to decide whether to make changes to Network Rail's licence condition on corporate governance.

Network Rail said it would "welcome any positive proposal that supports Network Rail's board - accountable to its members - to continue with its objectives of exercising best practice in corporate governance."

The company added:

"Network Rail has achieved much since it took over from the failed former licence holder, Railtrack. Our not-for-dividend model has delivered year-on-year improvements for passengers and freight operators...Network Rail has cut the costs of operating and maintaining the railway."

Bob Crow, general secretary of the Rail Maritime and Transport union, said the bonuses received by Network Rail bosses had been "grossly unfair" and said it would be "nothing short of obscene" if they received even bigger payouts while some staff were currently fighting to save their jobs in the face of budget cuts.

Gerry Doherty, leader of the TSSA rail union, also attacked the executive bonuses.

"It is high time we ended the fat controller bonuses at Network Rail where the bosses reap huge rewards regardless of performance failures," said Mr Doherty.

"There should be no reward for failure - only for improved passenger service," he added.

Harmonisation of Infrastructure Terms & Conditions - Network Rail

RMT Circular No: IR191/08

Dear Colleague,
As a result of the appalling attitude of Network Rail's Senior Management it has been decided by the General Grades Committee, after consultation with Area Council Representatives, to call further industrial action.

We met Network Rail on 22nd July in an effort to reach a deal that could lead to the suspension of the previous strike action. After four hours of intense discussions, it was felt that progress had been made on a number of issues, particularly on pay protection. This would have meant that those currently on more than the proposed new pay structure would have their wages protected and then enjoy rises in line with annual pay awards.

However, around two hours after the meeting broke up the agreement which was reached was vetoed by Network Rail headquarters. This was an absolutely outrageous state of affairs as we had received previous assurances that the management representatives attending the negotiations would have the authority to take the final decisions. I therefore wrote to Network Rail Chief Executive Iain Coucher asking for a meeting in order to establish just who from management is in charge of the harmonisation process. I am still awaiting a response to this request.

It is clear that there are individuals at Network Rail who have an alternative agenda from those we have been talking to over the table. This agenda is driven by the desire to make budget cuts, which in turn means a threat to safety standards and job cuts. Such cuts, which are also being made as a result of the cut in the budget from the Rail Regulator are also being used to protect management bonuses, because budget cuts will mean huge bonuses. This is a totally unacceptable state of affairs and makes a mockery of the negotiations that we entered into in good faith.

The General Grades Committee felt they had no option but to put on further industrial action and members have been instructed

• Not to book on for duties for shifts which commence between 00.01 hours on Friday 15th August 2008 and 23.59 hours on Monday 18th August 2008.

• Not to carry out on-call work between 00.01 hours on Friday 15th August 2008 and 23.59 hours on Monday 18th August 2008

• Not to book on for any overtime shifts that commence between 00.01 hours on Friday 15th August 2008 and 23.59 hours on Monday 18th August 2008

As always, we remain available for talks in order to avoid industrial action. In fact, up until midday on the day before the last weekend of strike action your union's national officers sought talks to stop the action. However, despite the company's public protestations, they offered nothing. Additionally, as I write, the company has not scheduled any further talks at all on harmonisation.

It was quite clear that a timetable to achieve a meaningful harmonisation package was agreed. Network Rail committed that they would at least be able to demonstrate significant progress by 31st July 2008.This is another agreement which they broke. Not only that but, as I state above, when progress is being made in negotiations it is being overturned by Network Rail headquarters. What is the point of having meetings with Network Rail managers who cannot take decisions?

The harmonisation process is being treated with contempt by Network Rail management. That is why the talks need the direct intervention of Iain Coucher and for him to get a grip of the situation.

I am sure the industrial action will be fully supported by members called upon to take action and that Branches, Regional Councils and members generally will show support and assistance where ever possible.

Yours sincerely

Bob Crow
General Secretary


See also

Below is the text of a letter sent on July 24 to Network Rail Chief Executive Iain Coucher

Dear Mr Coucher

HARMONISATION OF INFRASTRUCTURE TERMS & CONDITIONS – NETWORK RAIL

As you will be well aware, my union has been in discussions with your company through a joint working party on harmonisation of infrastructure employees’ terms and conditions for over two years now.

These discussions entered a new phase recently and a deadline on coming up with a set of proposals which would have been acceptable to both parties was set for July 31st. These discussions, which have included your company’s Maintenance Director Steve Featherstone, have seen a lot of work being done by both parties. However, there has been a major concern that not enough issues have been ticked off and that, by 31st July, they just would not have been resolved as items were “subject to further negotiation.”

My negotiating team reported these matters to our representatives who expressed concerns that yet another delay to the timetable was about to occur even though the timetable was set exactly in order to avoid this. It was for this reason – i.e. no progress being made and no progress expected by 31st July – that my union reluctantly called further industrial action.

However, I can state quite clearly that my union remains committed to the harmonisation process and to further negotiations and that is why my representatives entered into further negotiations on 22nd July 2008. After four hours of exhaustive talks with your team, my representatives came away believing that a clear agreement had been reached on a number of areas which could have allowed my union to suspend this weekend’s industrial action and moved us toward a final and satisfactory outcome on harmonisation.

I was utterly dismayed and angered however that, two hours after leaving the meeting, I found out that what had been agreed was vetoed by your Maintenance Director’s superiors. It begs the question as to why your company agreed to further talks in the first place and why you would appoint people to carry out the negotiations if they cannot take the decisions. My union had received an assurance from your Human Resources Director and Maintenance Director earlier this year that whoever was involved in negotiations with my union on harmonisation would have the authority to take the decisions.

I urge you to intervene directly in this dispute and urge you to do this immediately. If what we agreed with your Maintenance Director on Tuesday afternoon was endorsed by your company, then this could result in my union calling off this weekend’s industrial action.

As a further point, my union needs an absolute undertaking that, in future, you are prepared to support your management team who are present in the negotiation room with my union as I am sure they are as disappointed as I am at the lack of support they have been given by your company until now.

I look forward to hearing from you on what concrete steps you are taking on resolving this dispute as soon as possible.

Yours sincerely

Bob Crow
General Secretary

August 7, 2008

The fight for a living wage

New Statesman: 07 August 2008
Interview with Clara Osagiede
by Rowenna Davies
Clara Osagiede.jpg
The cleaner who convinced London's Tory mayor of the justice of her cause

Clara Osagiede bursts into the room flapping a piece of paper, her dark eyes flashing. "We're basically being paid the same as we were 16 years ago!" she says, brandishing the yellowing payslip. "The situation is outrageous."

Two mobile phones continuously interrupt her. This is not surprising, given that she is trying to live two lives. By day, she volunteers for the national transport union RMT, making speeches, attending conferences and giving interviews. From 9pm to 5am, she works as a cleaner for London Underground.

"I work five nights a week but I still have to share a two- bedroom flat with five others and sleep on the floor. We're so scared of the bailiff coming in and taking away what little we have that we can't even open the door."

Despite working the night shift, Clara is paid £6.10 an hour. According to the payslip handed to her by an old colleague, this is barely a 7 per cent increase on what cleaners were paid in 1992, despite the huge rise in the cost of living. It is well below the estimated living wage of £7.45 an hour the mayor's office estimates London workers need to be above the poverty line.

Working on the minimum wage doesn't just mean receiving a low salary. As Clara explains: "I have 24 days' holiday a year. I have no benefits and no pension. There are no sick days - even if you have to take time off because you're assaulted on the job. The deal is: if you don't show, you don't get paid."

As a trade union activist, Clara spends her free time visiting city stations and depots, collecting workers' stories. "Conditions are terrible," she says. "Cleaners are forced to clean up vomit and rubbish without decent protection. When one cleaner refused to work without the proper equipment, she was asked to leave."

Clara, and hundreds of cleaners like her, are beginning to make their concerns public. Last April, 397 out of 400 RMT cleaners voted to take strike action, demanding the living wage and an improvement in conditions. Since then there have been two strikes - one on 26 June for 24 hours and one from 1 July for 48 hours. Since the action began, says Clara, she has hardly slept.

Making an impact

Clara was born and educated in Nigeria. She studied architecture at university and was a prominent student activist. Now, she is using her skills on behalf of the Underground's cleaners and is getting results. Following the second strike, the Mayor of London, Boris Johnson, announced that all cleaners employed by Metronet would be paid the living wage.

The "living wage" concept originated in the United States and was introduced here about ten years ago; the idea has been gaining currency in British politics since. In 2004, the campaigning group London Citizens managed to get the London Olympic Committee to commit to paying the living wage to all those working on the 2012 Games. Now, the movement is gaining ground in Scotland, led by a coalition of anti-poverty groups. In Oxford, university students are supporting their college cleaners in the fight for a pay increase above the statutory minimum, which will run at £5.73 an hour from October.

"The biggest obstacle to change is division among the cleaners," said Clara, who explains that a large proportion of the people she works with are women of African origin without indefinite leave to remain in the UK. These groups have much to gain from collective action, but it is perilous. Their immigrant status makes them vulnerable.

"They are worried about victimisation; employers have succeeded in putting the fear factor into them," she says.

In a competitive global labour market, companies can afford to be hard on trade union members. "I've just had this faxed to me," says Clara, waving "another" notice for a disciplinary hearing. "I have to go to one every other day. Because of my activist nature, my bosses don't like me."

Regardless of obstacles, the cleaners will continue to fight for the living wage across the London Transport network. The mayor's proposed pay increases do not cover cleaners working on the Jubilee, Northern and Piccadilly Lines, where the employer is a different company, Tube Lines. The union has unanswered concerns about unhygienic working conditions, third-party sackings and poor employment benefits.

But the campaign is having an impact, which can be seen in Barclays decision to pay the London living wage to its support staff across London, setting a precedent for the private sector.

Transnet members are leaving

TAZ.de: 29.07.08
BY RICHARD ROTHER

BERLIN -- First the boss went, then 1,000 members resigned from rail union Transnet after their Chairman Hansen moved to the Board of Deutsche Bahn.
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"Transnet is facing the rubble of the Hansen system", say critics. Photo: AP

The surprise change by former chairman of the Transnet rail union, Norbert Hansen, to the post of Human Resources Director of Deutsche Bahn AG leads to mass resignations from the union.

Approximately 1,000 members have so far left because of the sideways shift by Hansen, Transnet spokesman Oliver Kaufhold announced on Tuesday. Although his organisation has been fighting for years with loss of members - "but that many in one fell swoop" - so many members of the union wanting to resign has never occurred before. Transnet currently has some 240,000 members and is the largest rail union in Germany.

Kaufhold acknowledged that possibly the loss of members has been caused because of resentment over the debate on partial privatisation of the railway. Transnet welcomed the controversial plans for rail privatisation - in contrast to the train drivers' union. With its alignment to the privatisation plans of railway boss Hartmut Mehdorn Transnet wanted to prevent a dismantling of the DB group because the union feared other variants of privatisation. Transnet now hopes that not all union members, who denounced it will actually abandon their union. "We are fighting for every member," said Kaufhold.

Kaufhold can not yet foresee the practical consequences of the wave of resignations. Transnet is preparing to hold a great union debate in late November in Berlin. Kaufhold is more concerned about the specific problems of employees in the workplace, such as overheated engine cabs or rest rooms.

For Hans-Gerd Öfinger from the rank and file organisation "Rail from below" the exit wave is a serious signal. "Transnet is facing the rubble of the Hansen system," said Öfinger. "The members feel cheated." However, Öfinger advises members to refrain from leaving Transnet. A bad trade union is still better than none at all. Even a transfer to another union solves no problems. Now it is rather important that the commitment and discontent within Transnet makes a start for a different policy, says Öfinger. "We need a shift away from privatisation and from the course of collaboration with the management."

See also:


Transnet members run away - Krauss in cross fire

Sueddeutsche Zeitung: 29.07.2008
By Tobias Dorfer

The Transnet rank and file are angry at their ex-boss Hansen and the tame response of the new leadership. Now, some 1000 members have announced their resignation. The union is trying desperately to keep them.

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In the cross-fire enlarge the base: Transnet boss Lothar Krauss - Photo: Reuters

Attack is the best defense, which Lothar Krauss has quickly understood. No discussions are to be raised, any grumbling has been nipped in the bud in Krauss' election to become Transnet chief Norbert Hansen's successor.

Previously, Hansen spoke to Bild-Zeitungnewspaper, and - even before his appointment to Rail Personnel Executive Committee - made it clear to the nearly 230,000 Deutsche Bahn railworkers what they could expect soon: rationalization, restructuring, more work. At the same time he suggested a new job title of chief of staff for the driver who could be given the responsibility for "cleaning up small stations."

Meanwhile, no one needs to worry about Krauss' cycle, when the question comes to his predecessor: "There were a few remarks at the wrong time, it would have been better not to have said," said a noticeably moderate Krauss to the Hamburger Abendblatt newspaper.

Deep-seated rage

The criticism of Hansen was well-known, said a Transnet spokesman.

At the rank and file level, however, the anger at Hansen and his departure still runs deep. It is huge in the local union administrations - and the anger is directed against the current leadership: "We have missed a clear distancing from Norbert's behaviour by the remaining executive board members," said the Transnet members of the local administration of Hansen's native city Husum.

Many furious trade unionists want the former chief excluded from Transnet and the attempt failed. In the last week Berlin rigorously rejected five corresponding applications from local administrations. But the problems are not off the table. "There is a fairly large crisis in Transnet," says Hans-Gerd Öfinger, spokesman for the Transnet-based initiative "rail from below".

Why some 1000 members Transnet want to leave - and how the leadership of the union hopes they will stay.

Apparently, this crisis is already so great that some 1000 members, according to a Transnet spokesman - already planning their exit. While 1000 members leaving out of a total of 250,000 is not much - the public impact is immense.

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Former Transnet boss Hansen: "A few remarks at the wrong time." - Photo: Reuters

The resignations are not yet over, because according to the rules membership is measured every three months to the end of next quarter. Who will resign at the end of September, his resignation request to submit the end of June.

How many such letters the matter has already generated the union will not say. "Currently no figures are available," said the spokesman.

In any case, dissatisfied members may stay. Through personal discussions, it is hoped that Transnet, could convince people to think again. "If you talk to people, often they see things differently," said the spokesman - and adds: "We are fighting for each member."

No carte blanche for the Transnet leadership

Transnet will also have struggles with its critics says Öfinger. "Leaving is not a solution," says the union rebel. The leavers should not think that the competing unions GDBA or GDL would be better.

The new Transnet leadership does not have carte blanche says Öfinger - and calls for a change of strategy: "The collaboration with railway management must be stopped."

Even Lothar Krauss has understood the wrath of the rank and file. Indeed, in November, the entire union executive council is up for re-election. According to Öfinger there could then be "substantial discussions". Because the new leadership, says the Transnet-man, is distrusted by the rank and file: "There is a degree of scepticism."

August 2, 2008

Staffing Levels - S&T Staff, Network Rail Maintenance

RMT Circular No: IR/182/08: July 31, 2008

Dear colleague,
Further to my previous circular (Ref: IR/147/08) dated 29th May 2008 on the above matter, I received a number of responses which highlighted that the issue of management attempting to have only two-person teams is of widespread concern.

I am once again asking branches, if they have not already done so, to provide me with examples where management are making a habit of rostering two-person teams to carry out S&T duties.

I would also once again remind members that the requirements for three-person teams is part of an agreement and is contained in their terms and conditions and should be respected at all times. I would also add that agreements must be respected by both sides and that any attempts to change from three to two-person teams must be resisted. Therefore, as I said in my last circular, members can and should refuse to work on safety grounds where their working environment is, in their opinion, unsafe. If any members feel that this is the case, then they should adopt and apply the Worksafe Procedures.

I would be grateful if you could raise this matter at your next branch meeting and provide me with any information which could assist your union in future negotiations.


Yours sincerely

Bob Crow
General Secretary

Unions threaten rail strike over 'privatisation' row

Shields Gazette: 01 August 2008

THE Tyne and Wear Metro system could grind to a halt if Nexus doesn't agree to a string of union demands, it was warned today.
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Warning ... Stan Herschel.

Stan Herschel, regional organiser of the National Union of Rail, Maritime and Transport Work (RMT) has promised strike action if his demands are not met.

It follows an official announcement by Government minister Rosie Winterton that £300m will be invested into the Metro system.

However, this is dependent on 'market testing', which Mr Herschel claims is privatisation.

He said: "This will be a hell of a campaign – a battle royale on the industrial front.

"If our campaign to scrap this privatisation of the Metro system fails, then we'll be presenting a list of assurances required.

"If they are not met, then it is very likely that we will take industrial action in defence of our members' pay and conditions."

The conditions include no compulsory redundancies, the creation of a collective bargaining group for staff, employees, including new entrants, remain in current pension schemes, all staff travel facilities remain and staff number levels are guaranteed.

However, a Nexus spokesman said: "This is not privatisation, Nexus will continue to own all of the Metro, set fares and timetables, and make sure passengers have the best possible travelling environment.

"We've kept the RMT and our staff fully informed and we will continue to work with them on any issues they might have."

Mr Herschel added: "The Metro system is a successful public operation, and it should stay that way."

See also:


New government funding should keep Tyne and Wear Metro public not enforce the privatisation of the service, says RMT

RMT: July 31 2008

The £300 million funding package for Tyne & Wear Metro announced by the Department of Transport today should not be based on “the procurement of an operating franchise” but to maintain this important service in the public sector, Britain biggest rail union RMT said.

RMT general secretary Bob Crow said that the funding to upgrade the Tyne and Wear Metro network was a 'poison chalice' as the proviso was that the service is handed over to a private sector which would only sweat the assets.

"We have seen this process on the rail network when Railtrack squeezed money out of the industry and on London Underground when the Metronet consortium walked away after making millions.

"Rail workers have more than enough experience to know that privatisation and fragmentation undermines safety and service, threatens jobs and pensions and drains huge sums of public money into private pockets," he said.

Bob Crow said that the government was clearly looking after its big business friends and RMT would look after its friends, transport workers and the passengers that rely on Tyne & Wear Metro services.

"We will not hesitate to take industrial action to defend safety, jobs, pensions and the decent public service that Tyne and Wear Metro passengers have enjoyed since 1980," he said.

The campaign to stop the privatisation of Tyne And Wear Metro has received support from dozens of MPs who have already signed a commons motion 1862 (details below) tabled by Newcastle Central MP Jim Cousins.

ends


Notes to editors:
Early Day Motion 1862 - Tyne and Wear Metro
Tabled by Jim Cousins (Newcastle Central) and signed (as at July 16) by Bill Etherington, David Anderson, Ronnie Campbell, Frank Cook, John McDonnell, Ann Cryer, Jeremy Corbyn, Janet Anderson, Robert N Wareing, Lynne Jones, Martin Caton, John Cummings, Janet Dean, Hywel Francis, David Hamilton, Kelvin Hopkins, Jim Devine, Alan Simpson, Alan Meale, Michael Clapham, Paul Flynn, Rudi Vis and Brian Jenkins.

"That this House notes the Tyne and Wear Metro is a successful integrated publicly-owned and publicly accountable railway achieving record levels of punctuality and passenger numbers and welcomes the vital role that the Metro plays in delivering high quality passenger services to the North East; further notes that the Metro's infrastructure and operations require significant investment and welcomes the Government's commitment to provide funds; is deeply concerned however that this funding may be dependent on fragmenting the Metro and privatising the Metro's operations and some of the Metro's infrastructure; notes that this is against the original proposal from Metro management who made the case that in order to provide best value there should be a vertically integrated railway within the whole of the Metro; believes that the best interests of passengers will be served by the Metro remaining as a unified railway in the public sector where every penny of funds invested is spent on improving passenger services; and fully supports the in-house bids that would keep the Tyne and Wear Metro in the public sector."

* For latest list of signatories visit: http://edmi.parliament.uk/EDMi/EDMDetails.aspx?EDMID=36172&SESSION=891

Team formed to spearhead Kenya-Uganda railway upgrade project

Business Daily Africa: 1 August 2008
Written by Zeddy Sambu

NAIROBI -- Implementation of a regional plan to upgrade East Africa’s railway network has began with the formation of a committee to spearhead the project.
Kenya-Train-Overloading.jpg
Upgrade of the regional rail network has moved a step higher with the formation of a team to spearhead the project.

The project, which is to be financed through a Sh200 billion debt, is to establish a new railway network with a modern gauge to speed up transport in the region. Currently, it takes up to 20 days to move cargo between Mombasa and Bujumbura. With the new line, this journey will only take 28 hours.

Solomon Ouna, a consultant engineer at Kenya Railways Corporation says after the completion of the rail, wagons will be able to carry 100 tonnes of goods compared to the current 40 tonnes.

If implemented, the project will also cut the travel time between Nairobi and Mombasa to less than three hours from the seven hours taken by road users. The shift will also mean less cargo haulage over roads as transporters would prefer trains over trucks.

“Nearly 80 per cent of the world uses standard gauge with greater carrying capacity and cheaper operating costs,” said Manu Chandaria, an industrialist and chairman of the 13-member Consultative Group which comprises other representatives from key industries.

Experts argue that the current fleet costs about $4.5 a tonne a kilometre of transport by rail compared to an average of $1.6 a tonne a kilometre in the US and Europe.

Success of the $3 billion standard, broad and electrified track that is to run through the capitals of the five East African community member states is hinged on the backing of all the regional governments.

The Development Master Plan 2050, aims to change the current metre gauge railway system into a standard gauge rail network.

A rail gauge is the distance between the inner sides of the two parallel metal bars that make up a railway track.

Eighty per cent of the world’s railways use a gauge of 1,435 mm, which is the standard or international gauge.

This kind of rail network is designed for speedier passenger transport of between 120km an hour and 160km an hour. Goods or freight engines move on the standard line at between 100km an hour to 120km an hour.

Nearly 90 per cent of goods are transported by road, with a paltry six per cent transported by railway. Of the 16 million tonnes of goods handled each year at the port of Mombasa, rail-bound cargo accounts for 10 million tonnes.

But in its current state, the privatised rail carries only a maximum of 1.6 million tonnes. Reduced train speeds of between 20-25 kph due to weak track has seen more cargo diverted to the roads.

Phase one of the project will entail construction of the main truck to the regional capitals with the subsequent phases running between Nairobi-Ethiopia border while phase three will connect Lamu to Juba in southern Sudan.

Kenya Railway Corporation, the agency that will represent Kenya in the regional team, yesterday, unveiled a plan which showed the project will also own its first electric tracks and trains.

A complete regional network will require Uganda to construct 1,190km of rail, Rwanda 100km, Ethiopia 620km and 490km in southern Sudan. The railways corporation will on behalf of the Kenya government construct 3,180 km of the rail network at a cost of Sh98 billion ($1.5 billion) over 16 years. This translates to Sh6.6 billion a year.

This latest plan comes two years after Kenya and Uganda put their railway services in the hands of Rift Valley Railways (RVR), which is facing financial difficulties.

Financing options
The Master Plan 2050 recommends a regional railways standard gauge network to serve Kenya Uganda, Tanzania, southern Sudan, Rwanda, Burundi, Democratic Republic of Congo, Ethiopia and Somalia.

Financing options for the project include infrastructure bonds, joint ventures, loans, build-operate-transfer (BOT) and a government-funded Open Access System.

In April, the EAC summit approved the construction of the standard gauge regional railways network to serve the region.

August 1, 2008

The rail debate: Birmingham New Street and its future

The Birmingham Post: Jul 30 2008
BNS.jpg
Britain’s railways are suddenly poised on the verge of an exciting new era of development. Terry Grimley looks at the national issues and the way they could impact on the West Midlands.

With support growing for a new national network of high-speed lines and even Transport Secretary Ruth Kelly apparently converted to the cause of electrification, things are looking up for Britain’s railways.
New Street Station

True, they have yet to shrug off the effects of a mad Tory privatisation which means that they now cost the taxpayer three times as much in subsidy as they did when they were in public ownership. Indeed the UK can claim to have set the world standard in how not to privatise a railway – or, as someone neatly summed it up, how to get the least railway for the most money.

Privatisation has left elements of fragmentation across the national network, but in other respects a railway renaissance seems quite suddenly upon us. Last year more passengers were carried on Britain’s railways than in any year since 1946 – even though the network is only half the size it then was.

Despite the highest fares in Europe, growth in passenger demand is outstripping the most optimistic forecasts. From a historic low of 630 million passenger journeys in 1983, they have climbed back to 1.2 billion and are expected to top 1.5 billion in the next decade.

This year’s leap in oil prices, perhaps marking a historic shift away from an era of cheap fuel, has added what may be a decisive impetus to the already gathering momentum behind an environmental agenda.

Only last year the Government’s White Paper on the future of the railways over the next 30 years, roundly derided by rail commentators for its lack of ambition, was at best non-committal about the prospects for further electrification: “It is not clear at the moment what problem electrification is trying to solve,” said Ruth Kelly when pressed on the subject by the late Gwynneth Dunwoody, the formidable former chair of the all-party Parliamentary Transport Select Committee.

But last month Ms Kelly said that she could “see great potential for a rolling programme of electrification”, and she even wrote a forward to a supplement on electrification in the current edition of Modern Railways magazine.

The major benefit to the West Midlands from a national programme of electrification could be the cross-country route from the north-east to south-west via New Street. But that would be many years in the future, with the Great Western (Paddington-Bristol/Cardiff) and Midland Main Line (Bedford-Nottingham/Sheffield) expected to be at the front of the queue.

In the shorter term, it has been suggested that a new generation of wiring teams could cut their teeth on smaller “infill” projects. Examples in the West Midlands could include the Walsall-Rugeley gap and Barnt Green-Bromsgrove, to extend Cross-City services.

At the same time, new high-speed lines are suddenly on everyone’s agenda. The impetus comes from the success of the Channel Tunnel Rail Link, now renamed HS1. Opened last November at a cost of £5.8 billion, it was a welcome demonstration that Britain can deliver major infrastructure projects on time and budget, though naturally such triumphs are noticed less than disasters like Heathrow’s Terminal 5.

The name HS1 implies that it will be followed by at least HS2, and while Network Rail has commissioned a study of five potential corridors, the general consensus is that the obvious first route is London-Birmingham, probably carrying on to Manchester and Glasgow.

The proposal put forward last year by Greengauge 21, a not-for-profit organisation campaigning for rail development, would give Birmingham two bites at high-speed, with a new line built alongside the Chiltern Line splitting near the M42, one line running directly into Moor Street and the other serving Birmingham International before linking into the West Coast Main Line to reach Manchester.

As well as shrinking the travelling time between Birmingham city centre and St Pancras to as little as 45 minutes (with a similarly rapid link to Heathrow), a high-speed network has the potential to supplant many domestic flights in Britain, with significant savings in carbon emissions. As important as its speed benefits would be, its potential to free-up capacity on existing lines for further development of local and regional services.

While Birmingham’s location makes it an early candidate to benefit from high-speed development, the major rail project coming up in the city is the £600 million redevelopment of New Street Station.

The so-called Gateway Project, on which work is due to start next year, will bring three major benefits, increasing passenger circulation space and improving the aesthetic quality of the station (a decision is expected soon on a star-studded architectural competition to redesign the exterior and roof), while also improving pedestrian circulation and environmental quality around the perimeter of the station.

What it will not do, however, is provide any additional track or platforms. Critics fear that the narrow approaches, with just four tracks in each direction, will doom the redevelopment to almost immediate redundancy. The scheme was dismissed as “cosmetic” by the Parliamentary Transport Select Committee last week, although some observers may wonder why the committee has taken so long to enter a debate about a station which stands right at the centre of the national rail network – its criticisms could equally well have been made three years ago.

Network Rail, on the other hand, insists that there is enough capacity to cope for the next 25 years. With the alternative proposal of a Grand Central Station at Curzon Street now lost (the site has been disposed of), the only remaining option for increasing capacity at New Street would be to put the Cross-City line underground, taking four trains an hour in each direction out of the platforms. Walsall services could also use this tunnel.

Though expensive, this is feasible and if this was a German city it would probably have been done in the 1970s. A strip of land alongside the viaduct approaching through Eastside has been reserved in case it is needed for this.

If the high-speed network does go ahead, it could be that this would take some inter-city services out of New Street. The fastest way for it to access the city centre would be along the Snow Hill line, where until the 1960s there used to be four tracks all the way from Moor Street to Lapworth.

Moor Street has been proposed as the city’s high-speed terminal, but the terminal platforms there, currently disused, are also earmarked by Centro for its proposed Moseley/Kings Heath and Tamworth services. With a new high-rise business district growing up alongside Snow Hill surely that would be the more logical place from which to start and end high-speed services, if space can be found alongside Chiltern’s Marylebone trains and regional services on the Stratford/Solihull to Stourbridge lines.

Rail freight is also expected to see strong growth over the next 20 years, and in the West Midlands this is expected to see the reopening of the South Staffordshire freight line from Walsall to Stourbridge Junction, which has been closed since 1993. Parts of this are earmarked for the currently stalled Midland metro line between Wednesbury and Brierley Hill, and this is being looked at again to see whether trams and freight trains could share tracks, as is now commonplace in Germany. Another possible application for “tram-trains” could be on the under used Coventry-Nuneaton line, with the possibility of street-running in Coventry city centre.

Compete more with domestic airlines, rail industry told

The Guardian: August 1 2008
Dan Milmo

The chief executive of National Express has urged the rail industry to target domestic airlines after warning that train operators needed to promote themselves better.

Richard Bowker, whose company owns the London to Edinburgh east-coast franchise, said his peers should advertise that many train journeys are cheaper and more pleasant than their airline equivalent.

"I really do struggle to see why we make it so easy for people to fly domestically. When you have got such a low-carbon alternative in rail, it's something that should be positively promoted."

Bowker spoke as National Express reported a 4% increase in first-half revenues to £1.37bn, with profit before tax excluding impairment charges and other one-off items rising 14% to £90m. The company revealed a dip in passenger numbers on its Stansted Express service, which transports customers to Britain's third-largest airport. A reduction in flights operated by easyJet and Ryanair, which have been angered by increased landing fees at Stansted, was the main cause of the drop, Bowker added. Both airlines are cutting back further at Stansted this winter, drawing suggestions from some analysts that the low-budget sector may have expanded too quickly.

"We want to have our cake and eat it," said Bowker. "We want to get more inbound and outbound flight rotations at Stansted, but we would like to get to the position where all trips between London and Edinburgh are done by train." He added that National Express had teamed up with hotel chain Travelodge to launch a "Save Our Seaside" campaign to encourage families to holiday in Britain rather than fly abroad. "I subscribe to the view that you will see people taking more UK holidays."

An easyJet spokesperson said Bowker's comments were "bizarre and misguided". EasyJet and Virgin Trains fought over a Virgin advertising campaign last year that attacked the environmental performance of airlines, in a dispute that ended with the Advertising Standards Authority throwing out the no-frills carrier's complaint.

"There are an awful lot of smoky old diesel trains out there. The lowest carbon alternative is Eurostar and you have to recognise that it is mostly powered by nuclear-generated electricity," said the easyJet spokesperson.

The Go-Ahead boss driving public transport

The Guardian: August 1 2008
Dan Milmo

Keith Ludeman was once considered too outspoken, but the frank talker now runs Britain's busiest train company
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Keith Ludeman, Group Chief Executive of the Go-Ahead group, on a train at the Gatwick Express platform of Victoria Station in London. Photograph: Lynda Nylind

Chief executives tend to trample each other underfoot in the race to flaunt their green credentials. You would expect Keith Ludeman, boss of one of Britain's largest public transport groups, to be at the front of the stampede. Instead he's at the back, polishing the bonnet of his Porsche 996 Turbo.

"I adore cars. I'm a petrol head. The only time I will give up driving my sports car is when I am too bloody old to get into it."

The chief executive of Go-Ahead Group doesn't do greenwash. He lets his company's record as one of Britain's biggest train and bus operators speak for itself. Ludeman is the latest in a long line of straight-talking transport executives, with the bone-compacting handshake and assured demeanour of someone who has risen through the ranks since his first job as a bus conductor 37 years ago. His personal approach to public transport is pragmatic - "I drive to the station every day and I get the train to work" - and he admits that owning a Porsche and a Range Rover puts his private carbon account in debit, even if he's doing better in corporate terms.

There will be fewer petrol heads among the next generation if Go-Ahead continues to increase public transport use. The group carries 900,000 rail passengers a day - more than any other operator - on its Southern, Southeastern and London Midland franchises and its buses ferry 530 million people a year around cities including Newcastle, Oxford and London.

Not that Ludeman hides his gas guzzlers behind a successful public transport business. "My carbon footprint is not particularly good. I need to plant a forest immediately," he says, before pointing to where a strip of lights in his east Croydon office was removed recently. It's a start.

Much of Go-Ahead's recent success is rooted in cars, or rather the increased cost of using them. Revenues at Go-Ahead's bus operations outside London are expected to grow by about 8% this year and passenger journeys at its train franchises rose by between 6% and 8% in the first half of 2008. Longstanding factors underpin these trends, including general economic growth and more reliable train and bus services, but Ludeman believes the rising price of petrol is reinforcing a change in how people get from A to B across Britain.

"The perceived cost of motoring has gone up, so people are questioning how often they use their cars." Quoting government statistics showing that car traffic fell 2% in the first quarter of 2008, he adds: "Something is different. People are using trains more because of motoring costs and other factors such as congestion. Maybe we have gone through that tipping point."

Exacting

Porsche ownership aside, his dedication to the public transport cause is zealous, to the point that Ludeman has a reputation for not suffering fools gladly. "I can imagine that he would be a pretty exacting guy to work for," says a City figure who deals with Ludeman regularly. Asked if there is any truth to those observations, Go-Ahead's chief executive, amiable throughout, lets the impression linger. "That's probably still true. I am more tolerant than I used to be. There is a limit, though, when you rely on other people and you have to do your job through them."

Like many of his executive peers, Ludeman's transport career began on the buses and has moved from the publicly owned sphere to the private. Raised in the south London suburb of Bromley where he went to school with David Bowie - "I remember a tall kid with a blond crewcut" - he graduated from Newcastle University in 1971 and joined Tynemouth & District buses as a conductor, followed by a master's degree in transport engineering and planning. An eight-year stint as a transport official at Greater Manchester's local transport authority was followed by three years working on Hong Kong's transport system. Then he became managing director of the Burnley & Pendle bus company, where he underwent the rite of passage of negotiating with trade unions.

"It's not until the trade unions punch you in the eyes and say no that you turn into an older and wiser manager. Those that never have to experience the word no are poorer for it." Not that anyone would recommend punching Ludeman, who is an imposing presence at a well-built 6ft 2in.

He switched to the private sector by leading a buyout of London General Transport's bus division in 1994 and made £2m two years later from its sale to Go-Ahead, where he ran the London bus division for three more years before being appointed head of Go-Ahead's rail group in 1999.

It was around this point that Ludeman began to attract headlines for his frank commentary on the transport industry. It was reported that his criticism of the now defunct Strategic Rail Authority, which ran the franchise system, contributed to Go-Ahead not being shortlisted for the Thames Trains franchise in 2005. Ludeman rejects that view and Go-Ahead was not harmed in the long term - the group won the Southern franchise soon after the Thames Trains decision and secured the London Midland contract last year. And it has not affected his career - he was appointed Go-Ahead chief executive in 2006 after the death of Chris Moyes, one of Go-Ahead's founders.

Value for money

Ludeman still tackles issues head on. Asked about the extension to a scheme that allows pensioners free bus travel across Britain that has riled bus owners, he says: "It was a wholly political decision. It was from No 10 and the Department for Transport was told to get on with it. I am sticking my neck out but I don't really care."

Rail fares are another touchy subject for rail bosses. They are dictated by government policy but the franchise owners bear the brunt of passenger disapproval when prices go up.

Asked if he is surprised that around a third of his passengers believe Go-Ahead's rail franchises do not provide value for money, he replies: "I am not surprised. Inevitably, on value for money, you are always going to get poor results. If that rate of fare increase continues it is going to feel more and more expensive, particularly when people might be feeling the pinch."

The final part of the interview proves that inflation-busting fare increases are not putting off passengers. A testament to the success of the Southern franchise and an unexpected insight into Ludeman's negotiation techniques, it is conducted eyeball to eyeball on a packed Brighton-to-London service. It is standing room only. In the past these trains would have ferried thin air between the rush-hour peaks, but booming demand is squeezing leisure passengers and commuters on to off-peak services. Wedged in between customers, Ludeman talks of an "emotional attachment" to a franchise that is up for grabs again next year.

"I'm giving myself enough rope, but I would like to retain this franchise. If I can do that I feel it will be job done."

So talk turns to the future. Ludeman admits that he "doesn't see a lot of people coming through" into senior management, perhaps because the graduates who entered the business in the 1970s are well entrenched at the top. "When I started my career people talked down buses. I had a rather strange job, to a lot of people." Amid higher oil prices, worsening gridlock and greener politics, perhaps it is time for someone else to follow his footsteps on to the bottom rungs of the industry ladder with the hope of one day running a £740m transport business like Go-Ahead.

"There is a huge challenge in the bus industry to replace my generation that joined in the 1970s. Early in my career we managed decline as car ownership increased and the use of buses fell away. Now we are on the cusp of an opportunity to start building again, and we need new young managers to help with the process."

The CV

Age 58, born London

Education Bromley Technical High School for Boys, Newcastle University - BA geography, Salford University - MSc transport engineering and planning

Career
1971-72 Bus conductor, Tynemouth & District
1974-82 Greater Manchester Transport
1982-85 Senior transport officer, Hong Kong government
1985-86 Senior consultant, MVA
1986-88 Managing director, Burnley & Pendle Transport
1988-96 Managing director, London General Transport
1996-99 Managing director, Go-Ahead London bus division
1999-2000 Managing director, Thameslink Rail and Thames Trains
2000-06 Chief executive, rail, Go-Ahead
2006- Group chief executive

Family Married with two adult daughters

Interests Sailing, scuba diving, swimming, fast cars, visiting his daughters in the US and Australia