4.3 Rail supply sector impacts by region

4.3 RAIL SUPPLY SECTOR IMPACTS BY REGION

The analysis in Chapter 3 showed how direct activity on the UK railway system is disproportionately focused on London. However, the benefits of the system’s external expenditure on assets, goods, and services, as reflected in the makeup of the rail supply sector, is spead much more evenly around the country. As Fig. 42 shows, London accounts for 27% of that sector’s GVA, which is only modestly higher than the capital’s 24% share of all UK GVA. Excluding London, the sector’s pattern mirrors that of the wider economy even more closely. But it is is worth noting that this activity is ‘over-represented’ in the East Midlands, despite activity on the railway system itself being ‘under-represented’ there.

Fig. 42. UK rail supply sector GVA in 2019, by region

% of national total

Rail supply GDP 3% 9% 7% 8% 7% 7% 27% 13% 6% 3%7% 3%

UK GDP 3% 10% 7% 6% 7% 9% 24% 14% 7% 3% 8% 2%

0% 20% 40% 60% 80% 100%

NE NW Y&H EM WM EE LDN SE SW WAL SCO NI

Source: Oxford Economics

In the case of employment, London accounts for 20% of all jobs in the rail supply sector, which is again only modestly higher than that region’s 17% share of all UK workers (see Fig. 43). The five regions in the North of England and Midlands account for a combined 39% of rail supply sector jobs, which is also modestly higher than those regions’ 37% share of the UK workforce.

Fig. 43. UK rail supply sector employment in 2019, by region

% of national total

Rail supply jobs 4% 11% 8% 8% 9% 8% 20% 12% 6%3% 8% 3%

UK jobs

3% 11% 8% 7% 8% 9% 17% 14% 8% 4% 8% 3%

0% 20% 40% 60% 80% 100%

NE NW Y&H EM WM EE LDN SE SW WAL SCO NI

Source: Oxford Economics

CASE STUDY

PORTERBROOK HYDROFLEX

HydroFLEX is the world’s first train retrofitted to operate under hydrogen power and the first hydrogen powered train on Britain’s railway. It draws power from overhead wires and where these don’t exist, operates in self powered mode using hydrogen, fuel cells and batteries. HydroFLEX is the result of a collaboration between Porterbrook and the University of Birmingham. Following successful mainline testing of the HydroFLEX in September 2020, Porterbrook has partnered with the University of Birmingham and Network Rail to build a new version of the HydroFLEX, capable of replicating the duty cycles of the diesel trains it aims to replace. HydroFLEX represents a £7m private sector investment by Porterbrook in a zero-emission alternative to diesel powered trains. By retaining the capability of using overhead wires as a power source, HydroFLEX can extend the electrified railway to non-electrified routes but without the need for costly and disruptive infrastructure upgrades. The design and build of the train are being undertaken by UK suppliers, protecting existing jobs and kick-starting the creation of a hydrogen rail supply chain. “It is amazing to see Porterbrook’s HydroFLEX train showcased on an international stage. Groundbreaking green technology projects like HydroFLEX are central to our plan to decarbonise the rail network by 2050.” Rail Minister Chris Heaton-Harris MP Hydrogen powered trains will support the progressive roll out of electrification schemes, as well as delivering clean train travel on routes where overhead wires cannot be economically justified. HydroFLEX is part of a suite of Porterbrook engineering initiatives designed to improve air-quality, reduce carbon and deliver a cost-effective and sustainable railway for both passengers and taxpayers.

Long Marston Rail Innovation Centre

On the 23 June, Porterbrook added the Long Marston Rail Innovation Centre to its portfolio of managed railway assets. The Long Marston Rail Innovation Centre is a 135-acre rail connected site in Warwickshire, it offers a 2 mile circular test track and 12miles of secure sidings. Porterbrook’s plans for the site will see a significant investment and upgrade in these facilities. Working with the railway supply chain, including SMEs and academic bodies, Porterbrook will develop the Long Marston Rail Innovation Centre to become a leader in developing sustainable and digital technology focused on the needs of passengers, rail freight users, train operators and infrastructure owners.