Comment


Network Rail is taking steps to understand this shortfall so that


it can quickly make up ground on the most efficient comparable rail infrastructure managers. Our engineering analysis highlights some key factors behind the


by Anna Walker


Benchmarking Network Rail


I


would like to welcome Rail Professional readers to ‘The regulator’s platform’ – a brand new quarterly column which will provide an insight into the Office of Rail Regulation’s work. This regular column will offer our perspective on the


tough, and sometimes controversial, decisions that we have to make. It will also show how we fulfil our vital health and


safety and economic regulatory functions that affect everyone in the rail industry. I would like to use this first column to provide an overview of


our recent publications on Network Rail’s efficiency. In our 2008 periodic review determination, we called on


Network Rail to achieve 21 per cent efficiency improvement in its operating, maintenance and renewals work by the end of 2013-14. This is certainly a challenging target; but also an achievable one. Our assessment of Network Rail’s finances and progress,


showing its first year progress against the efficiency target, indicate that the company has around a further 18 per cent efficiency to deliver over the next four years. So some encouraging progress, but Network Rail clearly still has


some hard work ahead if it is to meet our expectations – and realises that this is the case. We are confident that the initiatives Network Rail has put in place as part of its transformation programme will help it deliver further substantial efficiency. But how does Network Rail’s efficiency improvement look


when set in a wider context? As Network Rail is a national monopoly, we benchmark the


company against its international counterparts. And so alongside the assessment of Network Rail’s finances and efficiency, we have also published updated international efficiency benchmarking data, building on our previous work. The figures confirm Network Rail remains significantly less


efficient in maintaining and renewing its infrastructure than the most efficient rail infrastructure managers in Europe, with the shortfall being between 34 and 40 per cent.


‘As Network Rail is a national monopoly, we benchmark the company against its international counterparts’


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efficiency gap which includes the way track renewals contracts are awarded and the different way possessions are carried out. Network Rail is taking this work forward, as it is strives to make every penny that it receives from the tax and fare payer count. With so much attention over the past month focused on our


economic role, it is important to emphasise that our health and safety work never stops. Our recently published ORR health and safety report shows


that, overall, our railway is one of the safest in Europe. However, we have to remain ever vigilant on safety. The report highlighted concerns over track worker safety and a lack of reporting by Network Rail and its contractors of minor injuries. The reporting of such injuries is vital as they can highlight problems before they become crises. Network Rail has already taken steps to improve this crucial reporting and it is encouraging that its latest data is shifting towards ratios we would expect. We will continue to keep a close watch on this important issue. We must keep a very sharp focus on the importance of


preventing harm to workers and passengers – and we will continue to work with the rest of the rail industry to ensure that risk of all injuries to workers and passengers is minimised.


ANNA WALKER IS THE CHAIR OF THE OFFICE OF RAIL REGULATION


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OCTOBER 2010 PAGE 25


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