of Rail Excellence

The rail industry is a significant growth area for Wales. Transport for Wales has committed to revitalising the rail network by providing new services and rolling stock (trains and carriages), innovative solutions and a significant programme of station investment. This includes a commitment of an £800m investment from 2023 towards ensuring that 95% of journeys are on new trains, with more than half the rolling stock being assembled in Wales.

The UK Government’s Rail Sector Deal (2018) sets out a new approach that promotes partnership working between the public and private sectors to increase innovation and productivity. Its aim is that the UK should deliver the benefits of new digital technology and become a world leader in rail technology and decarbonisation, boosting exports and skills. The need for a world class test facility to support and accelerate delivery of these strategic aims has been clearly recognised by the UK Government.

How the project evolved

In the process of overseeing the bidding process for the devolved Wales and Borders rail franchise the Welsh Government, through its transport body, Transport for Wales (TfW), held discussions with leading train manufacturers and rail operating companies. From that came the realisation that they all faced the same challenge; namely a lack of testing facility capacity. As new trains and other components are introduced to the UK rail network, they need to be thoroughly tested before they become operational. Currently, UK manufactured trains are frequently transported to European testing facilities at significant cost.

Network Rail currently utilises infrastructure testing facilities in the United States.

In the UK there is the Rail Innovation & Development Centre, owned by Network Rail, at Melton Mowbray in the Midlands, with a linear disused line. However, it is hugely oversubscribed by the likes of Bombardier (train manufacturer). As new trains and other components are introduced to the UK rail network, they need to be thoroughly tested before they become operational. Currently, UK manufactured trains are frequently transported to European testing facilities at significant cost. Network Rail utilises infrastructure testing facilities in the United States.

The biggest facility in Europe is the Velim operation in the Czech Republic, with its high-speed loop. With its long waiting list, the Velim facility charges five figure sums to rent the track for eight hours. However, that is not the only cost as the train operators have to spend tens of thousands of pounds getting their rolling stock there in the first place. Siemens also has its own facility at WegbergWildernrath in Germany.

So, the Welsh Government, with industry experts in an advisory role, have rightly identified a lack of rolling stock and rail infrastructure testing facilities, which the GCRE is well placed to exploit. It also fits neatly into a more strategic approach of investing in infrastructure which helps to attract investment and firms into Wales, rather than the old approach of just offering direct financial support.

Therefore, a UK-based and, in particular, a Wales-based testing facility would reduce industry costs, accelerate decarbonisation and help to facilitate innovation, increase skills and training and create jobs in the UK. Given the demand for test facilities across Europe and beyond it is expected that a Global Centre of Rail Excellence in Wales would also be well placed to attract international business. The anticipated cost will be around £150 million.

Where will this be sited?

The Welsh Government is working in partnership with Neath Port Talbot and Powys Councils to develop proposals for a Global Centre of Rail Excellence on the Nant Helen open cast mine and Onllwyn coal washery site at the head of the Dulais Valley. This site has previously been worked by Celtic Energy whose coaling operations are expected to end later this year. The site would then have to be restored in accordance with statutory obligations determined and consented by Powys County Council.

There is significant common land with commoners’ land interests to be considered within the extent of Celtic Energy’s land holding. These interests will need to be addressed through the project design and mitigation. The site falls into two distinct areas. A primary area associated with the open cast mine, where the coal is extracted, and a secondary area associated with the washery, where

the coal is cleaned and prepared for distribution. The site is predominantly brownfield with a lesser extent of greenfield land. The site’s topography means that the existing mining operation is not readily visible from the nearby settlements of Onllwyn, Seven Sisters, Ystradgynlais, Caehopkin, Abercrave or Coelbren.

The site is very well connected in transport terms. It can be accessed from the A4109 and is well located to link to the A465 Heads of the Valleys Road, a strategic trunk road linking Swansea in the south west to Hereford in the north east of the region. The site also has rail access via a branch/ freight line to the south that links with the South Wales Main Line via Swansea Burrows sidings.

Who is organising this Proposal?

The Planning, Design and Access Statement has been prepared by Ove Arup and Partners Limited (Arup) on behalf of the Welsh Government in support of a cross boundary outline planning application (with all matters reserved), submitted to both Powys County Council (PCC) and Neath Port Talbot County Borough Council (NPTCBC) for the development of a Global Centre of Rail Excellence (GCRE) at the site of Nant Helen Surface Mine, Onllwyn. Coaling operations are coming to an end and final restoration by Celtic Energy was consented in June 2020 under a section 73 application.

In April 2020, Celtic Energy submitted two planning applications to Powys) and to Neath Port Talbot for a complementary earthworks scheme to provide a comprehensive, flexible and adaptable landform across the entire site that could support a wide range of future uses which included the GCRE, establishing the earthworks formation and associated drainage and landscaping for two of the key components of the rail testing facility, namely the high speed and infrastructure test track loops and rail line connections. Both were consented in July 2020.

Environmental Impact Assessment

The site of the proposed development is more than 1 hectare in area and constitutes major development as defined within the Town and Country Planning (Development Management Procedure) (Wales) Order 2012 (as amended). Subsequently, the planning application has been scoped to accord with the requirements associated with major development as prescribed by the regulations. Previous planning applications for development at the site were subject to Environmental Impact Assessment (EIA). Under the Town and Country Planning (Environmental Impact Assessment) (Wales) Regulations 2017, the development has been deemed as requiring EIA, the scope of it having been agreed by both PCC and NPTCBC in a joint Scoping response in November 2019. Given that the application is in outline with all matters reserved, it has been agreed that this document can be a combined Planning, Design and Access Statement which sets the context for the planning application and proposals therein. It considers the context to the site and its surroundings, the design evolution of the proposals and the environmental impacts of the proposed development and assesses the material planning considerations against the policy background in justifying the granting of planning permission. It should be read in conjunction with the Environmental Impact Assessment.

Material Planning Considerations

The nature and scale of the proposed development, in the context of the site’s location and features, creates several material planning considerations which have been broadly considered in a format that mirrors the EIA (construction and operation effects) and include:

• Principle of development and the land use and the prevailing Development Plan policy context • Socio-Economic benefits • Geotechnical (land stability and contamination) • Construction Management (focused primarily on noise mitigation) • Hydrological Impact (sustainable drainage, water quality and flood risk) • Landscape and Visual Impact (national park, common land and rights of way) • Ecological Impact (SSSI, SINC, habitats and protected species) • Heritage Impact (Scheduled Monument)

Objectives, Trends and Benefits

GCRE aims to meet a number of objectives which have been developed to address the issues and needs of the UK rail industry: • Deliver a UK-based modern and comprehensive rail testing facility to provide the capacity and capabilities for rigorous testing of rolling stock, infrastructure and integrated systems from prototype to implementation. • Act as a catalyst for the creation of a rail technology hub in Wales, providing a flexible, open-market platform for leading R&D activity that drives innovation. • Provide opportunities to work with industry to support skills development through highquality employment in fair, secure and sustainable jobs that contribute to reducing regional inequality and promoting regeneration in Wales. • Develop and test rail sector principles, standards and specifications which improve the UK's competitive strengths as a world leader in achieving carbon neutrality, contributing to an overall decrease in carbon emissions across the rail industry.

Beyond the industry objectives, there are other reasons/drivers of change or desirable outcomes that play directly into either the site or the local context, chief among these are: • A transformational impact on the heads of valleys by regenerating the post-coal landscape and creating new socio-economic opportunities. • Interpretation of the historic environment and the transport heritage aspects of the mining context of the site and beyond given the presence of a section the linear tram road scheduled monument on the site.

At present, accessibility is limited and there is no in-situ interpretation and one outcome of this scheme could be an improvement to the experience of using the local footpath network through narrative on the historic transport context associated with mining.

The Case for Change

The UK does not possess anything approaching such a high-quality facility as that planned at GCRE. Both public and private sector organisations frequently use test facilities in Europe and the USA, supporting jobs and building competing expertise in other countries. Moreover, these other facilities are often owned and operated by a single commercial entity, which stifles access to testing and innovation.

With projects such as HS2, CrossRail2, Northern Powerhouse Rail and the Cardiff Valleys transformation approaching, together with the soon to be time-expired status of the majority of the UK’s signalling infrastructure (in itself an estimated £35 bn renewals programme from 2025), the need for safe and efficient testing to drive performance and cost-efficiency has never been greater.

Operational independence and full open-market access is critical to allow competition and innovation to flourish. GCRE will address a number of specific issues: • Supporting UK train manufacturers and encouraging the establishment of further UK manufacturing facilities and testing capacity. • Supporting the development of a UK digital railway industry by providing high quality and safe testing facilities for digital signalling, train control and asset management technologies. • Delivering high-tonnage endurance testing of railway infrastructure particularly track and structures; such a facility will enable infrastructure to be rapidly tested and verified and would be unique in Europe, potentially attracting customers from around the world – Network Rail has a strong and confirmed interest in this element. • Removing risk from the introduction of new trains and other assets by allowing them to be thoroughly tested prior to deployment. This would avoid the need for new trains being tested on the national network or

rushed into service before all performance risks had been dealt with (note issues with new inter-city trains; certain electrification assets; and projects such as Crossrail). With infrastructure and rolling stock testing in a single location, more robust systems integration testing can be conducted. • Tackling ever-rising costs across the rail sector by allowing new technologies to be effectively tested and commissioned rather than committing them to operations before they are fully developed. • Generating high quality employment and economic opportunities for communities in South West Wales. • Providing further opportunities for sustainable technologies associated with the rail sector (electric, battery, links to sustainable generation), Traction Hydrogen fuel cell battery packs, Discontinuous electrification ,2040 diesel deadline Control European train control system, Automatic train control, Digitisation Data transfer and communication, automated inspection and maintenance, Design Lightweight materials

The rail industry faces substantial challenges and opportunities to exploit new, emerging and existing technology within a rail environment. The GCRE is the vehicle to create a rail technology hub for business and research, creating and strengthening links to potentially include Innovate UK, UKRIN and local universities whose specialisms include: • Research Trends Cardiff University • The Low Carbon Research Institute (LCRI) Centre for Integrated Renewable Energy Generation and Supply (CIREGS) • Electric Vehicle Centre of Excellence (EVCE) • Centre for Automotive Industry Research (CAIR) • The High Value Manufacturing (HVM) Group Swansea University Materials Research Centre (MRC ) • Swansea Materials Research & Testing or SMaRT • Institute of Structural Materials (ISM) University of South Wales • The Energy and Environment Research Institute (EERI) • The Wales Transport Research Centre (WTRC)

A response to Covid-19

At the time of writing, the UK is currently going through a health and economic crisis due to the global Covid-19 pandemic. It is still too early to predict the medium- and long-term economic effects of the global pandemic, however short-term impacts are already being felt. The lockdown has resulted in 18% of businesses reporting temporarily closing or pausing trading and 20% of the workforce being furloughed under the UK Government’s Coronavirus Job Retention Scheme. This is predicted to lead to

an economic recession, with UK GDP declining by 2% in the first quarter of 2020. Unemployment data in the UK currently does not yet fully reflect the impact of the lockdown, but there has been a significant increase in Universal Credit claims, of 40% or 1.2 million applications in a single month, which indicates that unemployment will rise sharply. Stock markets have already seen steep falls in value only comparable to those of 2008, both in the UK and across the globe.

The UK government has announced a series of economic packages to mitigate the impacts to businesses and individuals. There will also be significant costs to the NHS and for the overall pandemic response. The number of rail passenger journeys have steeply declined, with skeleton services in place for key workers and essential journeys, leading to lost revenue.

GCRE is well placed to provide a solution for both of these issues, through its focus on infrastructure (including digital infrastructure), innovation and transport delivery efficiency, and its potential contribution to supporting transport, mobility and the economic benefits which come from connectivity. It can be an immediate and positive response to the inevitable recession in Wales and in the UK, providing a short-term benefit, while developing an asset that will deliver positive outputs and outcomes over the longer-term.

What is planned for the site and what is the timescale?

The site is one of scale and variety, with its backdrop of the National Park to the north, encircled by roads and variously sized settlements. It is a site of mixed character due to the variety of habitat and functions (including common land) that is has supported over time, from the activity and buildings associated with the Washery, then out into the wider historically opencasted and subsequently restored areas, to the currently worked. It is a mosaic of areas of different topography and appearance that create a complex and changing character to the site as you move across and around it.

The existing site is varied in character with the built form of the Washery, overhead power lines, punctuating a landscape of grazing land and wetland, criss-crossed with access routes and bordered to the south by the existing rail freight line.

The site is a landscape that exhibits both restored, former open casted areas (the locally named ‘wedding cake’ overburden mound’) and the currently actively worked void. The currently active site is bordered by single and groups of dwellings that line the access roads on its periphery.

The Proposal

On the land associated with the Nant Helen open cast site, the scheme principally features: • a single (with room for a second subject to future market demand) electrified ‘rolling stock test track’ (6.9 km) for performance

testing of electric, diesel and hydrogen powered trains up to a line speed of 110 mph. • a single ‘high tonnage infrastructure test track’ (4.5 km) for testing of infrastructure including track systems, civil structures, ancillary lineside equipment, signalling, power and telecommunications up to a line speed of 40mph. • a dual platform station environment (typical of the UK rail network) for the testing of train – platform interfaces. The platforms will have sufficient length to serve 230m trains and will likely take the form of modular, pre-cast concrete units constructed off-site. • The test track will have a vehicular access track around its entirety as a means of access for maintenance staff and will be contained within a 2.1m palisade fence line along both corridor boundaries, or appropriate acoustic mitigation where required. • An overhead 25kv AC traction power system with scope for additional DC 3rd/4th rail system at a later stage. The OLE system will likely take the form of a series of cantilevered structures at 40m intervals around the test tracks. • The test track will connect to the existing branch line and washery area via a bidirectional delta junction. It is anticipated most rolling stock would access the facility via the Neath & Brecon Branch Line and

Swansea Burrows beyond, although some trains may be transported to site via road.

Core facilities on land associated with the

Onllwyn Washery land include: • Research, development, education and training/conference centre including laboratory space for the collation and assessment of testing results as well as laydown areas for equipment being tested. • An operations & control centre/office • 4 road testing/maintenance facility for trains undergoing testing at the facility, with capacity for 2no. 400m trains and 2no. 230m trains simultaneously with provision of a headshunt road at rear of the facility for increased operational flexibility. • Warm and cold storage sidings – a set of storage roads for the medium-long term storage of fleets. Storage capacity for up to 400 vehicles with connection to electricity supply units located incrementally along the sidings • Carriage wash building and Controlled

Emission Toilet (CET) spine facility • 25kv OLE infrastructure • Staff block with mess and overnight stay facilities (for 10 staff) • Related infrastructure to include access routes, drainage, lighting, electrical substations (5no.), mobile and land based

‘hyper connected’ communications, CCTV, perimeter/security fencing (including

Additional Facilities

The list below provides further context on the components of some of the main facilities that subject to demand/requirements could include: • A 4-road maintenance shed could provide: • Facility for changing wheelsets/underframe components • A single pitted road to allow underframe inspections • Jacking equipment on all remaining shed roads • CET provisions for all rolling stock - diesel, water and compressed air supplies • Multiple LV power supplies – 100V, 240V etc. • Multiple 23m raised access gantries to provide full roof access • 5-10 tonne crane on at least one road • Vehicle weighing facilities, software testing facilities, fire testing and emissions testing all within static testing area. • Rolling stock decommissioning siding to be accessible by a static crane, together with a 1 car shed for covered cleaning. • Wheelset storage – both covered and uncovered lay-down areas and lockable stillages • Associated laboratory for vehicle weighing facilities, software testing facilities, fire and emissions testing all within static testing area. • Hydrogen Refuelling facility. • Research & Development facility to include driver training facility. • Network Rail compliant platform structure, with potential for full station environment.

This train, rail infrastructure and technology testing facility, will provide unique capability in the UK and Europe, to support innovation in the UK and international rail industry, including the testing of cutting-edge, green technologies. In order to deliver the first phase of the project, the Welsh Government has confirmed a £50 million capital funding loan to be given to Powys Council, while the UK Government has pledged up to £30 million. In further milestone developments, a land option deal has been completed for the sites at the Nant Helen surface mine and Onllwyn coal washery, which will see Celtic Energy gift all the land necessary for the project.

To take the project forward, a new GCRE company will be established as the project transitions from government led, supported by industry to industry led, supported by government. Ken Skates, Minister for Economy, Transport and North Wales, said: “This is an enormously significant step forward in our plans to deliver a world class facility with unique to Europe integrated capabilities. GCRE will be a powerful ‘magnet’ project bringing a major global industry closer to Wales. It will provide a raft of vital services and wide-ranging research, development and innovation platforms to UK and international train manufacturers, network operators, the wider industry, supply chain and academia. It will also provide significant direct benefits to our national operator Transport for Wales. Working alongside our public and private sector partners we will deliver high quality jobs and training opportunities whilst supporting Welsh exports for decades to come.”

Nigel Brinn Corporate Director (Economy and Environment) at Powys County Council said: “We are delighted that both UK and Welsh Governments have confirmed that they are able to invest in this extremely important project on the Powys border. The opportunity to deliver such an innovative and economically beneficial restoration and after use for the site is very much welcomed by all at Powys County Council. We look forward to progressing the project as quickly as possible with our Joint Venture Partners of Welsh Government and Neath Port Talbot Council. We are fully committed to doing everything we possibly can to play our part in delivering this project of truly international significance. The opportunity and potential of this project is widely acknowledged, and we are absolutely committed to ensuring that the maximum overall benefit to the region is achieved. We are extremely excited about the opportunity that this initial investment will create, working with research and development partners to establish this Centre of Rail Excellence.”

Neath Port Talbot Council’s Corporate Director of Environment and Regeneration, Nicola Pearce, said: “Neath Port Talbot Council, the Welsh Government and Powys County Council have worked hard with a range of partners to help reach this key milestone. Subject to planning and other approvals, the Global Centre of Rail Excellence will create a world class facility for research, development and testing of rail technology offering major opportunities for economic growth in the South Wales Valleys and throughout Neath Port Talbot. We look forward to continuing to work with the Welsh Government and our other partners as this project is delivered. The plans are an important addition to the site strategy being brought forward by Celtic Energy, following approval of its restoration proposals in April 2020, and second planning application, approved in July 2020.

Will Watson, Celtic Energy Chief Executive, said: “As our coal mine operations come to the end of their natural lives, we have been working hard to ensure that local communities continue to benefit from well-paid, sustainable employment, whilst we diversify our sites from coal to property, tourism and green energy. We are delighted that the Global Centre of Rail Excellence project has reached another key milestone and we are looking forward to continuing our close working relationship with Welsh Government, local authorities and rail industry players to help deliver a world class facility that will benefit people locally and globally.”

Richard Walters, Celtic Energy Chairman, added: “As part of the project we have been committed to ensure that the generations, who have previously relied on the coal industry for local employment, continue to benefit from access to sustainable employment. They will now have opportunities to support and promote the expanding rail industry in Wales and across the UK more widely.”

General Comments

The site is connected to the existing rail network, which is critically important, and also has ‘very understanding’ neighbours, as the GCRE intends to operate 24-hours a day. There also aren’t that many sites in the UK with the necessary space to provide 1,000 hectares of mainly flat land connected to the rail network.

As part of the remediation of the former opencast mine, Celtic Energy secured planning approvals from both Powys and Neath Port Talbot councils last summer for earthworks. The Welsh Government has been working closely with Celtic Energy to get the project’s planning consent to this stage.

A third and final application, which is ready for submission to the local authorities, will seek approval to build the track and associated infrastructure and allow it to operate 24-hours a day.

The project is currently at the planning stage. Work on this project started at the end of 2017 and is scheduled to be complete by 2023/2024. Consultations were held in the summer of 2019 followed by a further 4-week pre-application consultation in the autumn of 2020. The planning application is currently being submitted with a decision expected in the summer of 2021. Site preparation and construction work is planned for 2021to 2023 with accreditation and validation happening in parallel. If all goes to plan, it is intended that Phase 1 will be operational in 2023 with the site being fully operational in 2025.

What it will provide

The first project, that is expected to be completed by 2023, is an inner ‘kidney shaped’ 4.5km looped track. There will also be a larger outer looped track, extending to 6.9km, and to the south-east associated infrastructure.

The inner track, known as the high tonnage infrastructure testing loop, will allow for the testing of rail infrastructure such as signals and points, as well as new track designs.

This infrastructure cannot be tested on a live railway because there isn’t a safe way of doing it. The internal track will have a wagon travelling around at 40mphs putting new infrastructure through its paces with rigorous assessment. When the owner of the UK rail network Network Rail, which is committed to using the facility, wants to test equipment it has to use the Pueblo testing centre in Colorado, as do equivalent organisations in Europe. The Welsh Government has already had what it describes as ‘promising conversations’ with potential customers, so are confident of a regular revenue stream associated with the high tonnage testing loop. That is why it is keen to deliver it as the first GCRE project.

While the inner track will be able to test trains at 40mph, which is equivalent to the speed of a London Underground vehicle, its primary focus will be on testing rail infrastructure and interfaces. The outer loop, allowing speeds of 110mph, will be able to test high speed trains, as well as new developments in rolling stock technology such as hydrogen trains. When testing high speed rolling stock, they don’t need to operate at full speeds.

The GCRE will be able to conduct 90% of the required tests and validation processes of rail vehicles, with the remainder being conducted in a live network environment.

At 110mphs the outer loop will allow trains to travel faster than what is allowed on the existing rail network in Wales.

While rolling stock often grabs the headline, of the £100bn spend committed to the high speed two rail project from London to Birmingham, before reaching northern cities such as Manchester and Leeds, the track and associated infrastructure will take up more than 95% of the cost. The GCRE is well placed to support the testing of high-speed rail infrastructure, as well as its rolling stock.

Network Rail’s testing facility at Milton Mowbray has an accumulated impact per annum of 0.5 mega tonnes. To put that into context the GCRE will be able to absorb up to 50 mega tonnes a year. This compares to say the busiest sections of the West Coast Mainline, which absorb around 100 mega tonnes per year.

Jobs Boost

As one of the most deprived parts of Wales, the Welsh Government is keen to create well-paid employment opportunities with around 150 direct jobs anticipated, but hundreds more in the supply chain.

The Siemens rail testing facility supports around 500 related jobs in Germany. Jobs will also be created in the phased construction of the GCRE.

Funding

Each phase has an indicative price tag of £50m, so taking the overall project to around £150m.

Longer-term, although no firm plans have been drawn up, the Welsh Government is expected to divest from the project while perhaps retaining a small equity stake for the taxpayer. Celtic Energy will have a small equity stake of around 5%.

Earlier this week, (w/e 9th April 2021) Powys County Council and Neath Port Talbot Council approved consent for the earthworks for the new rail testing facility. A new GCRE company will be established to take the project from one that is government-led and supported by industry to one that is industry-led, and supported by government.