August 2023
Response to Transport for the North Strategic Transport Plan Consultation
1. INTRODUCTION
1.1.This submission constitutes the response from the Railway Industry Association (RIA) North to the Transport for the North’s (TfN) consultation on the Strategic Transport Plan which sets out the vision, ambitions, and strategic priorities for transport in the North of England.
2. BACKGROUND TO RIA NORTH
2.1.The Railway Industry Association (RIA) North is the voice of the rail supply community in the North of England, representing RIA members across the region including the North East and North West and Yorkshire and the Humber. Rail in the North supports £7.7bn in economic growth (GVA), 154,000 jobs and £2.5bn in tax revenue and is an essential industry in delivering the Government's build back better, decarbonisation and levelling-up agendas1. We have five key workstreams, looking at: Decarbonisation; Innovation; Skills; Value for Money; and Digitalisation.
3. CONTEXT
3.1.Transport for the North has developed a draft of their second Strategic Transport Plan (STP) which sets the vision, strategic ambitions, and the North’s long term strategic transport priorities up to 2050. The Plan sets out the opportunities and challenges facing the North of England’s economy, people, and communities, and demonstrates how improved transport links can help the North achieve its true potential. Through public consultation, TfN aims to ensure that the plan accurately reflects the needs and aspirations of all communities in the region.
4. RIA NORTH SUBMISSION
• RIA North welcomes the publication of this report, which is strikingly consistent with RIA’s own calls for the full delivery of the TRU, HS2 and NPR and for a rolling programme of electrification. The prediction of a growth between 78% and 193% by 2050 in demand is an important reminder that investment is needed now to prepare for the future.
• The report demonstrates a clear link between investment and the delivery of desired outcomes for people in the region. With Oxford Economics data showing that for every £1 invested in the railway a further £2.50 is generated in the wider economy, RIA North stands ready to work with TfN and DfT to help make the case for this investment and provide practical support when it comes to developing and procuring major projects.
• Our submission is supported by the RIA North Greener, Faster, Better: Decarbonisation Route Prioritisation2(2022) report, which sets out how the North’s railways should be electrified and the RIA North paper Delivering Value – Integrated Rail Plan3(2022) outlines a number of best practice approaches to support clients like TfN developing and procuring major projects. Further detailed analysis of the decarbonisation of rolling stock can be found in the 2020 report Development of a Passenger Rail Traction Decarbonisation Strategy published by the Northern
1 https://www.riagb.org.uk/RIA/Newsroom/Publications%20Folder/OE_2021.aspx
2 https://www.riagb.org.uk/RIA/Newsroom/Publications Folder/Greener_Faster_Better.aspx
3 https://riagb.org.uk/RIA/Newsroom/Publications Folder/Delivering_Value_RIA_North.aspx
Rail Industry Leaders group, the fore runner to RIA North4 These reports are all examples of RIA North’s thought leadership capability, and we would welcome the opportunity to work more closely with TfN to address the mutual challenge of efficiently delivering the rail aspects of the Transport Strategy.
4.1.VISION
4.1.1. RIA North strongly supports Transport for the North’s overarching vision for the future of transportation in the region. This endorsement arises from the shared recognition of the importance of a cohesive, long-term vision that transcends political cycles.
4.1.2. Additionally, we would like to acknowledge the necessity of complementing the vision with an efficient, dynamic, and innovative supply chain. Long-term decisions made by the public sector, including setting transport objectives, and procurement choices, have a profound impact on the supply chain. The stop-start nature of investments can erode the capabilities of supply chains, as highlighted in RIA’s paper on Ending Boom and Bust5 Rail businesses need the confidence to invest in the skills, training, and capability to efficiently deliver complex rail projects.
4.1.3. The North has an ambitious plan of rail investment. Northern Powerhouse Rail and its connections with HS2 brings upgrades, new lines and will transform journeys in the north, becoming a catalyst for economic activity for generations. However, a considerable number of skilled professionals are required to deliver these schemes. HS2 alone will need 10,000 people for a sustained period of 10 years, without considering the other major projects undertaken over that period across the UK.
4.1.4. TfN needs to face this challenge head on, and we recommend that TfN work with the supply chain to develop a strategy which creates an economic opportunity out of this risk by leveraging the existing training capability and a secure pipeline of work to create new jobs and a skills legacy and export capability for the North.
4.1.5. Therefore, it is crucial to devise a strategy that also focuses on developing a sustainable transport supply chain. This strategy should be founded on the principles of good supply chain management, ensuring that resources and processes are optimized for efficiency and effectiveness. It also requires clear and consistent commitments regarding strategic investment, which will provide stability and confidence to the supply chain stakeholders. RIA North’s paper Delivering Value – Integrated Rail Plan (2022) outlines a number of best practice approaches regarding supplier engagement6
4.2.STRATEGIC RAIL PRIORITIES
4.2.1. RIA North strongly agrees with the strategy, which closely aligns with our advocacy for complete implementation of TRU, HS2, and NPR, along with a continuous electrification program. The projected rise in demand serves as a crucial reminder of the immediate requirement for investment to be well-prepared for the future.
4.2.2. In addition, RIA North recommends that TfN work with other transport bodies across the UK, including Network Rail, Transport for London, Transport Scotland, Transport for Wales, and
4 https://www.riagb.org.uk/RIA/Newsroom/Publications Folder/NRIL_Decarb.aspx
5 https://mcusercontent.com/67583a60293b15bb948b42a95/files/247b95ea-6f0b-dbd7-1d32-2cc31a3f7442/Rail_investment_annex.pdf
6 https://riagb.org.uk/RIA/Newsroom/Publications Folder/Delivering_Value_RIA_North.aspx
sub-national transport bodies like Midlands Connect and Transport for the East, to align transport investment plans to avoid creating peaks and troughs at a national level.
4.2.3. RIA North would make the case for improving the procurement process to make it easier and more cost-effective to ultimately bring about transformational rail upgrades. TfN should examine the lessons from other procurement processes around the country and ensure it is engaging with the supply chain at all stages of the procurement process.
4.2.4. We recommend TfN encourage the use of the Early Contractor Involvement (ECI) model as an engagement model with the wider supply chain for TfN rail investment. The ECI model has been shown to incentivise and provide greater consistency and visibility for the supply chain, whilst requiring less money to be spent on tendering. The ECI approach has also been shown to support the adoption of innovation in projects leading to reduction in overall cost.
4.2.5. We recommend a particular focus on engaging train and freight operators in this process given their pivotal role the necessary trade-offs during construction and the ultimate delivery of benefits.
4.3.DECARBONISATION
4.3.1. RIA North welcomes the commitment to decarbonisation, and the ambitions are in alignment with RIA’s rail decarbonisation asks of implementing a rolling programme of electrification and using alternate traction methods (including hydrogen and battery) on lines where electrification cannot be justified7 To strengthen the strategy, it's also important to work closely with the companies that make rail systems. The strategy should also focus on working with suppliers, so they never lose out for offering lower carbon solutions but are incentivised to reduce emissions. Many suppliers have set out their own route to Net Zero and are actively innovating to reduce the carbon in the goods and services they supply. This is positive, but it needs to be supported by specification and buying strategies that do not penalise low carbon solutions which are a little more expensive or new.
4.3.2. Given the current fiscal challenges, RIA North further suggests that the strategy must encourage cross-industry dialogue to establish a plan that maximises carbon reduction and rail service benefits within the available funding. This would aim to provide the industry with sufficient certainty to support investment decisions and a ramp up of delivery capability to deliver a programme for net zero rail.
4.4.SOCIAL INCLUSION
4.4.1. As highlighted in our Building the North’s New Railways report, the region exhibits a historical pattern of limited upward mobility, often coinciding with inadequate access to public transportation8 One of the critical challenges faced by the UK's rail investment programs pertains to the availability of skilled personnel. This challenge holds true for all regions, including the North. The absence of a capable and diverse workforce poses a substantial risk to the successful execution of major investment initiatives.
4.4.2. This persistent skills gap provides a unique avenue to address multiple issues simultaneously. It offers an opportunity to introduce new entrants into the rail industry.
7 https://riagb.org.uk/RIA/Newsroom/Stories/Rail_Decarb_23.aspx
8 https://www.riagb.org.uk/RIA/Newsroom/Publications Folder/NRIL_WP.aspx
This, in turn, can address social exclusion by providing employment opportunities to individuals who might otherwise face limited prospects. Furthermore, it enables the development of a homegrown workforce that can substantially enhance the UK's export potential abroad. A skilled and adaptable workforce is a crucial asset when it comes to promoting the nation's capabilities and products on the global stage.
4.4.3. Additionally, there lies a potential strategy to enhance the uptake of apprenticeships, particularly within small and medium-sized enterprises (SMEs) and micro businesses that do not fall under the purview of the apprenticeship levy. By encouraging and facilitating apprenticeships in these non-levy paying businesses, the rail industry can substantially broaden its talent pool. Moreover, focusing on promoting apprenticeships among young individuals from disadvantaged backgrounds can act as a mechanism for social mobility. Apprenticeships provide a tangible pathway for these young people to acquire skills, gain experience, and enter promising career trajectories that may otherwise be inaccessible to them.
If you have any queries or feedback about this submission, or would like to know more, contact RIA North Business Engagement Manager, Richard Carr, at richard.carr@riagb.org.uk and at 020 7201 0777/ 0784 989 6270