More supply chain woe

As part of the exciting DfT Annual Business Plan process swinging cuts are in view.

Eye readers will be aware that all TOCs have had to submit submit Annual Business Plans (ABPs) to DfT for 2023/24. 

The Requests for Business Plans (RfBPs) issued by DfT to all TOCs at the end of last year mandated budget cuts of circa 15% (and in some cases even more) against already demanding 2022/23 budgets.

DfT is due to give its final determination on individual 2023/24 TOC budgets in February.

Expect your local railway to get much grubbier with poorer customer service as TOCs cut back on anything other than absolutely essential activity.

More good news for an increasingly hollowed out supply chain.

Rail minister races to reassure the Supply Chain!

Good to see that the art of the non-answer is alive and kicking in the Department for Transport.

Or so it seems judging from this clutch of hapless responses to Stephen Hammond's pertinent questions:

Stephen Hammond (Wimbledon): To ask the Secretary of State for Transport, what discussions he has had with Network Rail on ensuring that the railway supply chain receives a sufficient volume of orders through to the end of Control Period 6 to its maintain skilled workforce.

Paul Maynard Parliamentary Under-Secretary (Department for Transport): We have regular discussions with Network Rail throughout the year on a number of topics, including supply chain capability. We are currently undertaking the biggest investment in our railways for over a century and our HLOS, published on 20 July, makes clear that we expect in the volume of renewals and that funding will be available to meet this increase, subject to further work to assure the costs of this activity. This signals to the supply chain that there will continue to be demand for their services in the current and future control period.

Stephen Hammond (Wimbledon): To ask the Secretary of State for Transport, which projects his Department expects Network Rail to complete in Control Period 6; and what the cost will be for each such project.

Paul Maynard Parliamentary Under-Secretary (Department for Transport): Network Rail published an update to its Enhancement Delivery Plan (EDP) on 30 June 2017. This sets out the outputs, scope and milestones for the projects that Network Rail is delivering, indicating which schemes are due for completion in CP6.

No doubt readers and the supply chain will be reassured to note that schemes originally scheduled for completion in CP6 include the, now very dead, electrification of both the Midland Main Line and Cardiff-Swansea route.

Make it up, you could not.

RIA socks it to the man!

RIA supremo Darren Caplan has taken to Conservativehome in a push for more Treasury funding.

In the sponsored post Caplan argues:

An estimated shortfall of £500 million in Network Rail’s budget over the final 20 months of Control Period 5 is already translating into significant falls in renewals demand for contractors, primarily in the track, signalling and consultancy disciplines...

The problem we’re facing currently is particularly acute, because of high expenditure in the early years of the Control Period and partly because of increases in renewals unit rates. As a result, suppliers are reporting falls in demand of between 20 per cent and 45 per cent: this is already resulting in redundancies, short-time working, and reduced or frozen graduate and apprenticeship recruitment in the sector.

Furthermore, it is possible that some smaller or niche suppliers may not survive until Control Period 6 (which starts in April 2019) and some larger suppliers may choose to use resource in areas where there is a more stable workload – especially in the resurgent overseas railway market. This would reduce the supply chain available to Network Rail and potentially increase future costs....

So we hope the Treasury, and a supportive Chancellor, is willing and able find a way to address the current shortfall. Moving forward to a suitable funding mechanism needs to be found which avoids another repeat of the current situation again in five years’ time.

Indeed.

Although we might be in with more of a chance if NR hadn't already blown the CP5 budget...

New Trains - 800 days of talk and no trousers!

This from Captain Deltic...

Today, 11 June, is the 800th day since the last rolling stock order was placed.

Note, placed, not preferred bidder selected.

Altogether now, and perhaps ATOC, Network Rail, Passenger Focus, RIA and Sir Roy McNulty might care to join in...

Why are we waiting, why are we waiting...?