Transport secretary Patrick McLoughlin yesterday announced the postponement of the Midland Mainline and Transpennine electrification projects, which form part of a planned package of 5,000 projects from Network Rail worth £38.5bn.
The works fall under Network Rail’s Control Period 5 programme, running from April 2014 to March 2019, which forms a “contract” under which the Office of the Rail Regulator monitors its performance.
It is understood that Network Rail’s estimated costs of delivery have risen across CP5, with the result that its ambitions have had to be scaled back, with the two electrification projects now likely to be pushed into CP6.
The value of the two projects is unclear, although one source suggested that the combined programmes would cost around £2bn.
"Important aspects of Network Rail’s investment programme are costing more and taking longer. The UK supply chain for the complex signalling works needs to be stronger. It has taken longer to obtain planning consents from some local authorities than expected."
Transport secretary Patrick McLoughlin
Announcing the delay in Parliament yesterday, McLoughlin referred to Network Rail’s recent chequered record, including the overruns to works at King’s Cross over Christmas and recent chaotic scenes during the refurbishment of London Bridge station.
McLoughlin said: “Important aspects of Network Rail’s investment programme are costing more and taking longer. Electrification is difficult. The UK supply chain for the complex signalling works needs to be stronger. Construction rates have been slow. It has taken longer to obtain planning consents from some local authorities than expected. But that is no excuse. All of these problems could and should have been foreseen by Network Rail.”
He also announced that Sir Peter Hendy, the current transport commissioner in London, is to replace Network Rail’s current chairman, Richard Parry-Jones, who is standing down.
McLoughlin described Hendy as “someone of huge experience.. who helped keep London moving during the Olympics”.
Hendy has now been asked to “develop proposals by the autumn for how the rail upgrade programme will be carried out”.
Responding to the announcement, CECA chief executive Alasdair Reisner said: “The scale of the challenge to deliver CP5 is immense and the construction industry is aware of the daily difficulties faced by Network Rail in its aim to deliver as efficiently as possible.
“This substantial investment in our rail network comes at a time when our industry is primed to deliver world-class infrastructure.
“The CP5 programme was developed in response to record levels of demand on the network. This is not something that looks set to diminish. As such, it is vital that all of the projects planned for CP5 are delivered as promptly as possible.
“While it may be necessary to shift some works into the next control period, every effort must be made to ensure they are ready for delivery in 2019. A failure to do this will have a crippling impact on capacity for some of the UK’s vital rail lines.
“As an industry, we need to work with Network Rail to help it overcome these challenges, and continue the momentum of investing in UK rail.”
Why is everyone so surprised at the suspension of improvements to the Northern Rail Hub. The clue is in the title. Had it been London there would have been no problem. Around £15 billion for London’s cross rail, no problem. £600 million for Northern Hub, full stop, in spite of it delivering twice the economic return per pound spent than cross rail.