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Railhub Archive
2011-11-14 NET-001
Network Rail


Network Rail devolution marks next stage of industry reform

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Network Rail

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Network Rail

Network Rail devolution marks next stage of industry reform

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14 Nov 2011 09:00
source Network Rail
type Press release

summary The announcement of the completion of the devolution of all Network Rail routes

The day-to-day running of Britain’s railway infrastructure has been devolved to ten strategic routes as part of Network Rail’s plans to cut the cost of running Britain’s railway and work more effectively with passenger and freight operators.
Each route will have its own management team to operate, maintain and renew the infrastructure. They will be separate business units within Network Rail and will have their own accounts, allowing greater benchmarking of financial performance and efficiency between the routes, as best practice is shared across the business.

David Higgins, Network Rail chief executive said: "Network Rail is committed to building not just a bigger and better railway but a better value railway too. Devolution marks a significant change, both in terms of the way we organise ourselves as a company and the service we offer our customers. Empowering

route teams means quicker and more responsive decision-making and will help us meet our central goal of putting the customer first."

Tim O’Toole, chairman of the Rail Delivery Group, said: "Network Rail’s move to push decision making to a local level and work more collaboratively with train operators is a crucial step in delivering a better value railway for farepayers and taxpayers alike. However, further industry reform particularly to provide greater flexibility and closer aligned incentives between Network Rail and train operating companies will be required to deliver a more efficient and responsive railway that meets the needs of passengers."

Each route managing director is now fully accountable for the route businesses under their control as part of a new network operations function, which includes all maintenance, operations, customer services and local asset management. Route teams will have the power to target investment more efficiently and where it is most needed, with priorities determined in collaboration with train operators as well as third parties such as local authorities.

Robin Gisby, Network Rail managing director, network operations, said: "Devolution is now possible because of the gains we have made in recent years – improved punctuality, the most passengers carried for seven decades, record levels of passenger satisfaction and a safe railway, too. But we can and must do more. By devolving power away from the centre, each route will be able to find its own way of working with its customers. There will be no one-size-fits-all. What is certain is that we will work together to deliver the best possible railway for local passengers and businesses."

Notes to Editors:
Devolution is a central part of Network Rail’s plans to deliver continued efficiency savings, with a target to cut the cost of running Britain’s railway by more than £5bn between 2009 and 2014. The changes are also in line with the recommendations of the McNulty value for money study, published in May, which said savings of up to £1bn a year could be made by continued closer working between Network Rail and the train companies. Already, the Wessex and Scotland routes, which moved to a devolved structure in June, have identified millions of pounds in efficiency savings.

The devolved structure will see the ten route managing directors and their teams (see below) supported by a slimmer, more strategic central organisation. A new national centre in Milton Keynes, which opens in summer 2012, will provide state-of-the-art facilities for more than 3,000 people, bringing together asset management, logistics, operational planning, information management and other national functions from all over Britain to support the route teams and their customers. This will enable the routes to continue to benefit from Network Rail’s economies of scale and maintain clear national standards to support safety and performance.

Main office
Route managing director

Fiona Taylor

Mark Ruddy

Richard O’Brien

Dave Ward

Patrick Hallgate

Mark Langman

London North West
Jo Kaye

East Midlands
Martin Frobisher

London North East
Phil Verster

David Simpson

For more information please contact :
Media Relations (National)
t: 020 3356 8700
e: mediarelations@networkrail.co.uk

About Network Rail
Network Rail is the not for dividend owner and operator of Britain's railway infrastructure, which includes the tracks, signals, tunnels, bridges, viaducts, level crossings and stations - the largest of which we also manage We aim to provide a safe, reliable and efficient rail infrastructure for freight and passenger trains to use Our website: www.networkrail.co.uk

Railhub Archive ::: 2011-11-14 NET-001


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