EU compliance costs wagon manufacturer dear


Katie Silvester


A new lowliner freight wagon, which can carry high- cube containers on any part of the UK rail network, took seven years to be approved before it could go on sale, thanks to EU bureaucracy. WH Davis’ Super Low 45 wagon promised to be an improvement on previous lowliner models, which were expensive to maintain, caused a lot of ‘dead’ space on trains and caused high levels of wear and tear to the tracks. But new EU regulations meant that the Mansfield-based company has had to spend tens of thousands of pounds on testing in order to get approval. Sales and marketing director Ian Whelpton says that


the company now stands no chance of making a profit on its Super Low 45s, because the testing cost more than it will be able to make back on them. Work on the new design began in 2003, but soon afterwards the new Technical Specifications for Interoperability (TSI) were brought in across the EU. ‘Some of the testing that was demanded by the


regulations does not have test facilities in the UK,’ explains Whelpton. ‘We ended up having one test carried out on a heritage railway, which wasn’t ideal. ‘We had to import traction at our cost, so that one-day test took the best part of three or four months


‘The company now stands no chance of making a profit because of the costs of all the testing’


to get organised.’ The Superlow 45, which will enable containers built to a larger European gauge to be carried on routes in the UK which have not been ‘gauge enhanced’ to increase the loading gauge, finally got approval in December 2010. WH Davis has had its first order from DRS, for 50 of the wagons. But there are still further administrative costs to be met while the first production batch is being manufactured.


The hoops the wagon manufacturer had to jump through do not bode well for the future, warns Whelpton. ‘We were one of the first companies that had come up with a new wagon design that had to be guided through the maze of TSI regulations,’ he says. ‘Although Britain is a signatory to it, the rules are


primarily aimed at mainland Europe and Britain didn’t get enough exclusions to cater for the restricted UK gauge. The prototype has done over 60,000 miles of trial services and has performed faultlessly, but it’s been a bureaucratic nightmare. What worries me, and what worries the industry, is that every time the bureaucrats get involved there is an added cost.’ The company has already had enquiries from


customers interested in taking the wagon through Channel Tunnel, but, again, more bureaucratic hurdles would need to be cleared before this could happen. The unique characteristics of the UK network mean


that the Super Low 45 was given ‘TSI approval with UK specific derogations’, not full TSI approval. ‘French safety authorities are insisting we do a lot of the testing again. So much for harmonisation!’ sighs Whelpton.


CrossCountry to get revenue support n


Arriva’s CrossCountry franchise is to get revenue support under the ‘cap and collar’ mechanism from November 2011. While passenger revenue grew


by 5.8 per cent during 2010, it still fell short of predicted growth. Arriva Trains Wales, meanwhile, saw passenger revenue grow 7.5 per cent, according Arriva’s 2010 review. According to a written answer


provided by government transport spokesman Earl Attlee in the House of Lords, revenue support paid to train operators reached almost £300m in 2009-10, compared to £60m the previous year. Arriva has also stated that four Axiom Rail depots have transferred from DB Schenker Rail (UK) to Arriva’s LNWR rail maintenance operations. Both companies are owned by Deutsche Bahn.


News in brief


National Express pacifies hedge fund


The National Express Group fought off pressure from its largest shareholder to re-think the direction of its business, at its annual meeting in May. US hedge fund Elliot Advisors wanted to see the group increase its US business, while selling off some of the European business, but instead settled for its nominated candidate Chris Muntwyler joining the board.


Escalator contract


Otis has been awarded a £5.6m contract to replace all 28 escalators on Glasgow’s subway network. The current escalators, at nine of the system’s stations, have been in use since the late 1970s. The scheme forms part of Strathclyde Partnership for Transport’s plans to overhaul the entire subway.


New freight service to Holland


DB Schenker is running a new service, through the Channel Tunnel, between Wales and the Netherlands. The four-times-weekly shuttle service is being operated for its client Tata Steel, carrying steel rolls between Tata plants in Ijmuiden and Llanwern.


Hitachi overwhelmed by supplier interest


A Hitachi open day for suppliers interested in working on the Super Express for the InterCity Express Programme generated so much interest it was extended from a half-day to a full-day event. It was due to take place at the Xcel Centre, Newton Aycliffe, County Durham on 26 May, as Rail Professional went to press.


Invensys drops out of FTSE 100


Signalling engineers Invensys have fallen off the bottom of the FTSE 100. Shares in the company have fallen after it failed to win a London Underground upgrade contract. The contract, which will improve capacity on the Circle and Hammersmith & City Lines, is likely to be awarded to Bombardier, which was named preferred bidder in April. Analysts are pressuring Invensys to sell off its pension fund.


JUNE 2011 PAGE 11


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