Review of Operations

The acquisition of Prism Rail, completed in September, brought four new train operating companies into the Group: c2c, WAGN, Wales & West and Valley Lines. This enabled us to rebalance our train portfolio through the acquisition of two London commuter businesses.

In August, Midland Mainland (MML) was awarded a two year extension to 2008, thereby enabling an increase and acceleration of our investment in the service. This will see £22m worth of improvements at stations and the construction of a new £17m multi-modal park-and-ride facility, East Midlands Parkway Station. This investment will also see increased frequencies, faster journey times, new destinations and higher punctuality through the introduction of 28 new high-speed trains worth £135m.

Over the first nine months of the year, record passenger revenue growth was achieved through new services and attractive marketing campaigns. However, the post Hatfield disruption presented serious challenges to our UK rail operations. To illustrate the scale of the disruption, during the normal course of business, only a small number of ESRs are in force across the network. Following Hatfield up to 550 ESRs were put on the network with over 30 being placed on MML alone. This severely impacted on travelling times. On MML, for example, at the peak of the disruption, average journey times from London to Sheffield were more than doubled from 2 hours 18 minutes to 4 hours 48 minutes and as a result train frequency was more than halved.

Following Hatfield we have initiated marketing campaigns within each of our companies to stimulate growth. At the same time, we are vigorously pursuing recovery of losses arising as a consequence of the Hatfield incident from both Railtrack and our insurers, currently through negotiation but, if necessary, through legal action.

Integration

We continue to improve the accessibility of our train companies by co-ordinating our services with local bodies and other transport operators. The rail-bus integration initiative, introduced on Central Trains in conjunction with Telford and Wrekin Council, provides bus stops at Telford station, bus priority traffic lights in the town, through-ticketing and easily-accessible travel information. At Wales & West, the introduction of a flexipass, which provides access to rail and bus operators throughout Wales, also proved popular. Working in conjunction with other local bodies, such as South Wales Integrated Fast Transit (SWIFT), Valley Lines has developed Caerphilly station to become a true interchange between bus and rail, making travel to Cardiff easier. ScotRail extended its rail-bus through-ticketing scheme to new destinations in Fife, Tayside and the north of Scotland. Simple initiatives such as these, encourage more people to use public transport.

The Airport Express marketing and sales alliance with BAA became effective earlier this year. Under this brand we market the benefits of travelling to and from the airport by rail.

Following the acquisition of Stansted Express, there are plans to develop this initiative further.

Investment

New trains This year, we introduced 45 new trains across our companies with a further 108 scheduled for 2001. When Central Trains introduced its fleet of 33 new Class 170 Turbostar trains, the last 1960s slam door trains were withdrawn – two years ahead of the SRA’s deadline. ScotRail completed the introduction of 24 new Turbostar diesel trains on the Glasgow/Aberdeen / Edinburgh route, and Turbostars significantly reduced journey times on selected services from Glasgow and Edinburgh to Inverness. ScotRail also completed the £7m refurbishment of rolling stock for the Caledonian Sleeper services, introducing wheelchair-accessible cabins and overnight seating. Silverlink overhauled and refurbished its entire Class 150 fleet. In Wales, the refurbishment of the Alphaline Class 158 and Class 143 trains was completed.

However, we are disappointed by the lack of progress in bringing new rolling stock into service, Gatwick Express and ScotRail fleets continue to be affected by delays in delivery. In addition, c2c, Central and ScotRail have all experienced poor performance of new rolling stock because of design and manufacturing deficiencies. We are working hard with the manufacturers to ensure that new trains come into service as quickly as possible with as few breakdowns as possible. The slow progress is particularly frustrating when we can see what a difference new rolling stock makes. In the instances where we have been able to introduce rolling stock on schedule, we have been able to add new services – in some cases doubling the frequency – and new destinations.

Reliability and punctuality are the principal reasons why people choose to travel on public transport. During the year, we introduced initiatives to improve those of our services which operate on older infrastructure and rolling stock. At Valley Lines these resulted in reducing delays and cancellations by 50%, making it the UK’s most improved train operator. ScotRail maintained its position as Britain’s most punctual mainland operator.

Improvements New rolling stock enabled us to expand timetabled services. On Central Trains, 30 services had carriages added to create a total of 4,000 extra seats a day. New and more frequent Sunday services were introduced between Birmingham, Walsall and Rugeley, and on Snow Hill Lines.

Improved connections on Silverlink’s County Line, between Bedford and Bletchley, were introduced and eight extra destinations, including Luton Airport, were added to MML’s timetable.

Providing accurate travel information to customers continues to be a priority. On WAGN, we have installed real-time information systems, obtained through sensors in the track, to enable us to give passengers up-to-the-minute information.

We are rolling out real-time information plasma screens at c2c and Silverlink stations. Silverlink has trialled screens, which incorporate messaging facilities and regular news, at Willesden Junction, London. It has also introduced customer information points at Euston, Milton Keynes and Northampton.

Technology The increased use of technology across our train companies will continue to drive improvements by providing passengers with more user-friendly easier-to-access services as well as assisting revenue protection. We are investing £10m in developing and launching a new mobile ticketing system for the UK rail network. This will provide a broader range ofservices than the technology currently in use, printing rail tickets to and from anywhere in the UK (including those for use through London Underground-style barriers), as well as providing a portable database of up-to-date rail network timetabling and fare information. This incorporates leading edge technology which will provide greater flexibility, e fficiency and improved service for passengers and staff .

All our train companies host websites detailing their services and providing valuable travel information. This proved to be particularly useful to passengers following the Hatfield incident. A new call centre in Sheffield was opened in February 2001 to cater for increased internet sales. We continue to develop our own website which will give passengers access to train service and fare information. This will be launched during the second quarter of the year.

We invested £1.8m in latest-generation ticket machines at c2c. We are also installing ticket-on-departure machines, which, with the growth of internet purchasing, are set to increase at stations. We are also installing machines at busy commuter stations as a queue-busting measure.

Marketing

Throughout the year, our train companies all launched promotions to generate new business. Central Trains and MML promoted off-peak leisure travel; Silverlink and MML introduced loyalty and frequent-user campaigns to generate new commuters, where extra capacity exists, and to encourage commuters to buy off-peak leisure products. MML also invested in its first TV advertising. At ScotRail new “walk on” GroupSave fares, and ScotRail Shortbreaks, to the North of England, Troon, Gleneagles and St Andrews, proved to be popular.

Safety and security

We continue to invest in increasing safety and security for our passengers. CCTV and customer help points have been installed at remote stations. During 2000, c2c became Britain’s first train company to have all its stations accredited to the DETR’s Secure Stations Scheme. Certification is awarded, by the British Transport Police and Crime Concern, to stations which reach specified standards in crime management, station design management and customer perceptions.

Training

It is our policy to invest in the quality of our staff. During the year we announced the opening of the industry’s first central Customer Service Academy for training staff across the Group. Located at Derby, it will provide a centre of excellence for the Group’s staff and will provide the opportunity to gain recognised NVQ qualifications. Central Trains spearheaded the production of a disability awareness training video for on-train staff. This will be used during 2001 across all our UK train companies.

The future After a challenging end to the year, we continue to focus on attracting patronage back onto the railways. We will work with the industry to once again make trains a preferred method of travel.

As a major supplier of quality passenger rail services, we aim to retain our strong position in the UK public transport market by working closely with the SRA to assist it in its refranchising objectives.

Security help points

Help points have been installed at remote stations across the network. This project has proved popular on Valley Lines where services run across rural communities.

Facilities

Plasma screens have been introduced at selected
railway stations on the Silverlink network. Features include an up-to-date messaging facility and regular bulletins from ITN 24 hours. Advertising revenue from these screens enables us to make further investment in station facilities.

Reliability

Improved engineering and the fitting of trains with new features, such as sanders, ensure that they are able to withstand fluctuating weather conditions.

Customer service

Face to face contact with passengers continues to be a priority with the provision of information desks to assist passengers at modal junctions.

Training

This year saw the launch of the Group’s first graduate fast-track recruitment scheme targeted at individuals who can help shape the future of public transport.


The acquisition of Prism Rail, completed in September, brought four new train operating companies into the Group: c2c, WAGN, Wales & West and Valley Lines. This enabled us to rebalance our train portfolio through the acquisition of two London commuter businesses. In August, Midland Mainland (MML) was awarded a two year extension to 2008, thereby enabling an increase and acceleration of our investment in the service. This will see £22m worth of improvements at stations and the construction of a new £17m multi-modal park-and-ride facility, East Midlands Parkway Station. This investment will also see increased frequencies, faster journey times, new destinations and higher punctuality through the introduction of 28 new high-speed trains worth £135m. Over the first nine months of the year, record passenger revenue growth was achieved through new services and attractive marketing campaigns. However, the post Hatfield disruption presented serious challenges to our UK rail operations. To illustrate the scale of the disruption, during the normal course of business, only a small number of ESRs are in force across the network. Following Hatfield up to 550 ESRs were put on the network with over 30 being placed on MML alone. This severely impacted on travelling times. On MML, for example, at the peak of the disruption, average journey times from London to Sheffield were more than doubled from 2 hours 18 minutes to 4 hours 48 minutes and as a result train frequency was more than halved. Following Hatfield we have initiated marketing campaigns within each of our companies to stimulate growth. At the same time, we are vigorously pursuing recovery of losses arising as a consequence of the Hatfield incident from both Railtrack and our insurers, currently through negotiation but, if necessary, through legal action. Integration We continue to improve the accessibility of our train companies by co-ordinating our services with local bodies and other transport operators. The rail-bus integration initiative, introduced on Central Trains in conjunction with Telford and Wrekin Council, provides bus stops at Telford station, bus priority traffic lights in the town, through-ticketing and easily-accessible travel information. At Wales & West, the introduction of a flexipass, which provides access to rail and bus operators throughout Wales, also proved popular. Working in conjunction with other local bodies, such as South Wales Integrated Fast Transit (SWIFT), Valley Lines has developed Caerphilly station to become a true interchange between bus and rail, making travel to Cardiff easier. ScotRail extended its rail-bus through-ticketing scheme to new destinations in Fife, Tayside and the north of Scotland. Simple initiatives such as these, encourage more people to use public transport. The Airport Express marketing and sales alliance with BAA became effective earlier this year. Under this brand we market the benefits of travelling to and from the airport by rail. Following the acquisition of Stansted Express, there are plans to develop this initiative further. Investment New trains This year, we introduced 45 new trains across our companies with a further 108 scheduled for 2001. When Central Trains introduced its fleet of 33 new Class 170 Turbostar trains, the last 1960s slam door trains were withdrawn – two years ahead of the SRA’s deadline. ScotRail completed the introduction of 24 new Turbostar diesel trains on the Glasgow/Aberdeen / Edinburgh route, and Turbostars significantly reduced journey times on selected services from Glasgow and Edinburgh to Inverness. ScotRail also completed the £7m refurbishment of rolling stock for the Caledonian Sleeper services, introducing wheelchair-accessible cabins and overnight seating. Silverlink overhauled and refurbished its entire Class 150 fleet. In Wales, the refurbishment of the Alphaline Class 158 and Class 143 trains was completed. However, we are disappointed by the lack of progress in bringing new rolling stock into service, Gatwick Express and ScotRail fleets continue to be affected by delays in delivery. In addition, c2c, Central and ScotRail have all experienced poor performance of new rolling stock because of design and manufacturing deficiencies. We are working hard with the manufacturers to ensure that new trains come into service as quickly as possible with as few breakdowns as possible. The slow progress is particularly frustrating when we can see what a difference new rolling stock makes. In the instances where we have been able to introduce rolling stock on schedule, we have been able to add new services – in some cases doubling the frequency – and new destinations. Reliability and punctuality are the principal reasons why people choose to travel on public transport. During the year, we introduced initiatives to improve those of our services which operate on older infrastructure and rolling stock. At Valley Lines these resulted in reducing delays and cancellations by 50%, making it the UK’s most improved train operator. ScotRail maintained its position as Britain’s most punctual mainland operator. Improvements New rolling stock enabled us to expand timetabled services. On Central Trains, 30 services had carriages added to create a total of 4,000 extra seats a day. New and more frequent Sunday services were introduced between Birmingham, Walsall and Rugeley, and on Snow Hill Lines. Improved connections on Silverlink’s County Line, between Bedford and Bletchley, were introduced and eight extra destinations, including Luton Airport, were added to MML’s timetable. Providing accurate travel information to customers continues to be a priority. On WAGN, we have installed real-time information systems, obtained through sensors in the track, to enable us to give passengers up-to-the-minute information. We are rolling out real-time information plasma screens at c2c and Silverlink stations. Silverlink has trialled screens, which incorporate messaging facilities and regular news, at Willesden Junction, London. It has also introduced customer information points at Euston, Milton Keynes and Northampton. Technology The increased use of technology across our train companies will continue to drive improvements by providing passengers with more user-friendly easier-to-access services as well as assisting revenue protection. We are investing £10m in developing and launching a new mobile ticketing system for the UK rail network. This will provide a broader range ofservices than the technology currently in use, printing rail tickets to and from anywhere in the UK (including those for use through London Underground-style barriers), as well as providing a portable database of up-to-date rail network timetabling and fare information. This incorporates leading edge technology which will provide greater flexibility, e fficiency and improved service for passengers and staff . All our train companies host websites detailing their services and providing valuable travel information. This proved to be particularly useful to passengers following the Hatfield incident. A new call centre in Sheffield was opened in February 2001 to cater for increased internet sales. We continue to develop our own website which will give passengers access to train service and fare information. This will be launched during the second quarter of the year. We invested £1.8m in latest-generation ticket machines at c2c. We are also installing ticket-on-departure machines, which, with the growth of internet purchasing, are set to increase at stations. We are also installing machines at busy commuter stations as a queue-busting measure. Marketing Throughout the year, our train companies all launched promotions to generate new business. Central Trains and MML promoted off-peak leisure travel; Silverlink and MML introduced loyalty and frequent-user campaigns to generate new commuters, where extra capacity exists, and to encourage commuters to buy off-peak leisure products. MML also invested in its first TV advertising. At ScotRail new “walk on” GroupSave fares, and ScotRail Shortbreaks, to the North of England, Troon, Gleneagles and St Andrews, proved to be popular. Safety and security We continue to invest in increasing safety and security for our passengers. CCTV and customer help points have been installed at remote stations. During 2000, c2c became Britain’s first train company to have all its stations accredited to the DETR’s Secure Stations Scheme. Certification is awarded, by the British Transport Police and Crime Concern, to stations which reach specified standards in crime management, station design management and customer perceptions. Training It is our policy to invest in the quality of our staff. During the year we announced the opening of the industry’s first central Customer Service Academy for training staff across the Group. Located at Derby, it will provide a centre of excellence for the Group’s staff and will provide the opportunity to gain recognised NVQ qualifications. Central Trains spearheaded the production of a disability awareness training video for on-train staff. This will be used during 2001 across all our UK train companies. The future After a challenging end to the year, we continue to focus on attracting patronage back onto the railways. We will work with the industry to once again make trains a preferred method of travel. As a major supplier of quality passenger rail services, we aim to retain our strong position in the UK public transport market by working closely with the SRA to assist it in its refranchising objectives.

	Security help points Help points have been installed at remote stations across the network. This project has proved popular on Valley Lines where services run across rural communities.

		Facilities Plasma screens have been introduced at selected railway stations on the Silverlink network. Features include an up-to-date messaging facility and regular bulletins from ITN 24 hours. Advertising revenue from these screens enables us to make further investment in station facilities.

Reliability Improved engineering and the fitting of trains with new features, such as sanders, ensure that they are able to withstand fluctuating weather conditions.

		Customer service Face to face contact with passengers continues to be a priority with the provision of information desks to assist passengers at modal junctions.

Training This year saw the launch of the Group’s first graduate fast-track recruitment scheme targeted at individuals who can help shape the future of public transport.