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Rail
GBR ’ s grand plan intends to revitalize the network by making ticketing simpler , maintenance more efficient and train services more integrated and reliable . Time will be needed to work through the details of the transition and enable all parts of the supply chain and every delivery organization to get ready to embrace the change .
This will be difficult . Privatization was implemented using a vertically separated model , where the management of the wheel and rail was deliberately split between a single infrastructure body and a plethora of train operators .
But for today ’ s modern rail systems where , for example , signaling systems are moving from the track to the train and power is moving on board with hybrid power systems , this separation increasingly stands in the way of efficient and effective railway outcomes . The future success of the railway is not about ownership – this is not a public vs private issue ; from a systems thinking perspective , the current structure has created sub-optimal infrastructure and operating silos .
Industry costs and overall public subsidy levels are now much higher than preprivatization , and international benchmarking of infrastructure maintenance and renewal unit costs reveal a significant increase in UK costs relative to other countries .
A recent international research consortium study , led by Dutch transport consultant Inno-V , into the Economic Effects of Vertical Separation in the Railway Sector concluded that while no single model guarantees success , vertical separation inevitably increases industry costs .
Integrated success
Currently , there are several vertically integrated light rail systems in the UK , notably Docklands Light Railway and Manchester Metrolink , which Amey is involved with in partnership with Keolis , and the Tyne and
Wear Metro . All have demonstrated what can be achieved with vertical integration and greater alliancing between the public and private sector . The Metro in particular , which transitioned to vertical separation in 2010 but subsequently reverted to a vertically integrated model in 2017 .
On the heavy rail side , the only meaningful example of vertical integration was instigated by the Welsh Assembly Government in their award of the Wales & Borders franchise in 2018 to KeolisAmey . In choosing this innovative route , Transport for Wales created a whole system approach which maximized the benefits from public and private thinking and investment .
While the operation element was transferred to Transport for Wales because of the Covid pandemic , delivery of the South Wales Metro upgrade and maintenance of the Core Valley Lines ( CVL ) remained with Amey . Transport for Wales and Amey have subsequently demonstrated that change is possible and strong public-private partnerships operating under aligned objectives are productive , bringing together infrastructure , rolling stock and operational expertise to deliver an integrated , outcomedriven railway .
Looking beyond the publicprivate question
CVL has shown that true alignment of objectives across the supply chain drives success . And most certainly , it has demonstrated that success is not a public versus private issue .
Transport for Wales made a bold decision to embrace the opportunity for vertical integration and , perhaps , as a new organization without baggage from the past , pressed forward with the supply chain to make it work .
And there were risks that had to be managed on CVL . The single team had to secure service quality by establishing
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