Archived decisions

Contact: Mike Franklin, ext 5492

1. Summary

1.1 The following decisions are sought:

(i) That high-level contacts be pursued at the Strategic Rail Authority and Railtrack to secure adequate signalling resources to facilitate the reopening of Chandlers Ford station by September 2002.

(ii) That the Chief Executive of the Strategic Rail Authority be requested to re-negotiate the former Wales and West franchise without delay and reconsider the retention of the Waterloo-Exeter route in the South West Trains franchise.

2. Reasons

2.1 There are no major technical obstacles to reopening Chandlers Ford station. Most of the construction cost has been secured from a development and the Local Transport Plan (LTP). The Strategic Rail Authority (SRA) has invited a bid for funding the balance. However, Railtrack is doubtful that its signalling contractor can carry out the necessary work for several years.

2.2 The moratorium on re-franchising could delay much-needed investment in the Wales and West franchise. Separation of the Waterloo-Exeter route from South West Trains (SWT) could cause a similar investment delay.

3. Other Options Considered and Rejected - Not applicable.

4. Conflicts of Interest Declared by the Decision Maker or a Member or Officer Consulted - Not applicable.

5. Dispensation granted by the Standards Committee - Not applicable.

6. Reason(s) for the Matter being dealt with if Urgent - Not applicable.

Approved by: Date:

Councillor K B Estlin

7. Introduction

7.1 This report details the latest progress on the Chandlers Ford new station project and developments in passenger rail franchising. The current status of the Chandlers Ford project and the problem with signalling resources are described. The implications of the Secretary of State's recently announced moratorium on re-franchising are assessed for the SWT and South Central franchises, which are at an advanced stage, and for the proposed new `Wessex' franchise, formed from parts of the SWT and Wales and West franchises.

8. Chandlers Ford New Station

Background

8.1 A reopened rail station at Chandlers Ford, and a service linking it to Eastleigh and Southampton, will form a major component of the South Hampshire Rapid Transit network. Combined with re-established services from Southampton to Hythe, it would form the basis of a suburban `metro' across the Eastleigh-Southampton-Waterside conurbation The possibility of reopening (in practice rebuilding) Chandlers Ford railway station was considered when the Knightwood development was agreed, and a contribution of £600,000 secured from the developer. However, no progress was made in re-establishing the train service to serve the station until 1998, when the `Rail Passenger Partnership' (RPP) fund was announced. Enquiries to Railtrack at the time indicated that a single platform station would cost in the order of £800,000 to construct and accordingly an additional £200,000 was allocated from the LTP.

Project Development to Date

8.2 In 1999 a bid was made to the SRA for RPP funding for a `circle' service linking all stations on a Southampton-Eastleigh-Chandlers Ford-Romsey loop. However, this did not pre-qualify, and instead a cheaper Southampton-Eastleigh-Chandlers Ford `shuttle' service was proposed. Although substantially cheaper to operate, this option needs some £1.7 million of additional signalling and other infrastructure to allow trains to turn back at Chandlers Ford. Infrastructure would usually be funded by Railtrack and recovered from the train operator in `track access' charges, but this might be funded by a one-off grant from the RPP fund. Feasibility/development work has proceeded to the stage where costings for outline design are being prepared for the station. SWT has new trains to operate the service, which could commence as early as winter 2002. Eastleigh Borough Council, owner of the land, is supportive of the scheme and is preparing to lease the land to the rail industry. However, little progress has been made on signalling design because of a nationwide shortage of signalling skills, principally due to the demands of the West Coast project and installation of the Train Protection and Warning System safety system. More seriously for the project, Railtrack has gradually put back the delivery date for the signalling work itself as the effects of this shortage have become apparent. The company is now doubtful that the work could be completed for several years, the most recent development being a requirement that all new signalling proposals be submitted to Railtrack's Chief Executive for approval. There have also been suggestions from Railtrack that ultimately it is the SRA which decides the order of priorities for infrastructure improvement work such as signalling. Hence, it is proposed that contact be made at a senior level with both Railtrack and the SRA to emphasise the importance of this project for the County Council and for transport in the Southampton area.

9. Passenger Rail Franchising

Background

9.1 Since 1999 the SRA has been developing a programme to renegotiate the 17 shorter (7 to 7.5 years) franchises, with franchises of `10 to 20 years', by 2002. The process is advanced for South Central and SWT, with preferred bidders selected and negotiations continuing on franchise contracts in both cases. South Central is intended to transfer ownership from Connex to Govia, although this has been delayed by a reference to the competition authorities. The SWT franchise has been redrawn to exclude the Waterloo-Exeter (and Reading-Brighton) services, which, together with the English routes of `Wales and West', is to become part of a new `Wessex' franchise. In January this year the SRA concluded an agreement with Wales and West to set up separate Wessex and `Wales and Borders' organisations, to facilitate creation of the two new franchises. It has selected a shortlist of bidders for `Wales and Borders' but has so far only selected the `pre-qualifying' bidders for Wessex. Although it has potential as a strategic route to the West Country, the Waterloo-Exeter line carries heavy commuter traffic between Salisbury and Waterloo, serving Andover and Basingstoke as well as the smaller communities of Whitchurch, Overton and Grateley.

Recent Developments

9.2 The SRA's re-franchising programme is now in some doubt following the new Secretary of State's direction that the SRA should `make the early replacement of franchises the exception rather than the rule'. His Franchise Policy Statement, which was accompanied by a draft set of new Instructions and Guidance to the SRA, nonetheless does not rule out the Wessex franchise, conceding that "I still expect early replacement of short term franchises to go ahead in selected cases where the benefits cannot be obtained in other ways". Wessex is also complicated by the Waterloo-Exeter route which, in the absence of the new franchise, will need to be operated (presumably by SWT) under some form of temporary agreement.

Options for Wessex and Waterloo-Exeter

9.3 The Wales and West franchise has suffered from under-investment, particularly in station facilities and train capacity. This is partly due to historically low levels of investment, but also to its lack of profitability. In common with many local authorities the County Council is in a position to assist with improvements to stations, both from LTP funding and through developer contributions, and items might include improving closed circuit television, disabled access, waiting facilities or cycle parking. However, with the uncertainty about the nature of the replacement franchise and its operator, it is difficult to identify or progress worthwhile schemes for County Council funding.

9.4 The County Council's aspirations for the SWT franchise, approved by the former Public Transport Sub-Committee in June 1999, opposed separating the Waterloo-Exeter route from SWT, on the grounds that it would reduce the integration between services in Hampshire, which are overwhelmingly SWT-operated. The Exeter route has also shared in the comparative prosperity of the SWT franchise, which has funded a reasonable level of investment in trains and station facilities, although it is possible that the investment would have followed in any event from the route's status as a busy line into London. Given the delay surrounding the establishment of the Wessex franchise, there is a risk that this line could suffer an investment hiatus for some years.

9.5 The Secretary of State's moratorium on re-franchising does provide an opportunity to consider other ways of addressing these problems. It is proposed, therefore, that a letter be sent to the Chief Executive of the SRA asking that this uncertainty be resolved as a matter of priority, possibly through alternative solutions for Wessex, such as retaining Waterloo-Exeter with SWT and attaching the English services of Wales and West to one of the adjoining franchises.

6652/MF