£50M Investment in Valleys rolling stock

As I indicated in my announcement in January the £50m is the approximate total cost over the remaining almost 14 years of the Wales and Borders franchise of increasing capacity on the Cardiff Valleys lines by almost 1800 seats - or 20 per cent - daily on weekdays.  This is additional capacity over and above the baseline represented by Arriva Trains Wales’s proposed Standard Pattern Timetable due from December 2005.  

This will deliver substantial immediate overcrowding relief.  The majority of strengthened trains – 18 services - started operating on selected peak services from 31 January. The remainder will be introduced incrementally, with a further 12 strengthened services being introduced in March. From the summer 2005 timetable when the platform lengthening works are completed on four stations on the Aberdare line, (to enable all stations to accommodate 4-car trains) there will be a further phase.

The £50m is a net cost (after anticipated fares income) covering lease costs (which are approximately half the total investment), the cost of day to day maintenance, fuel and cleaning. Network Rail track charges and extra on-train staff. The costs include Valleys weekday working and also summer weekend use elsewhere across Wales.  The extra rolling stock will also be used to increase capacity for special events such as sporting fixtures at the Millennium Stadium.

With reference to the recent letter in the press from Porterbrook (one of the train leasing companies), they have confirmed that the lease cost they quoted in the letter to the Western Mail represents only the capital element of their lease charge. This is because they were making a comparison with capital purchasing costs.  The capital element of the lease charge is approximately 56 per cent of the total lease charge, the remainder relating to annualised heavy maintenance charges (the cost of major component repair and refurbishment - eg, engines, gearboxes, wheels).  This is distinct from regular light maintenance costs, which are borne by the train operating companies outside the lease charges.  

Porterbrook also make a valid point in their letter to the Press, which is that in Net Present Value terms, the lease rental over the period represents better value for money than purchasing rolling stock.  Comparison of the cost of my Valleys overcrowding scheme with an option based on the acquisition cost of rolling stock is in any case hypothetical.  I was determined to deliver extra capacity immediately and there is no suitable rolling stock available for purchase.  To have ordered a new build of rolling stock would have taken several years to deliver.  Under my scheme, the additional capacity has already begun to benefit passengers.

I remain in discussion with the rolling stock companies and others about further additional capacity, subject to availability, affordability and value for money.  This could include rolling stock purchase or new build if this were best value.

Full details of the extra rolling stock arrangements are as follows;

The extra weekdays Valleys capacity is being provided by seven additional 2-car Class 150 Sprinter trains which are being run in place of seven existing smaller 2-car Class 14X Pacer trains, with an additional 30-34 extra seats being provided on each train.  The 2-car Pacers then released couple on to seven more existing overcrowded 2-car Pacers, making 4-car trains, with 102 extra seats in each case.  Across the morning and evening weekday peaks, this will provide 30 lengthened trains (some running twice) by April, more subsequently.

Porterbrook are leasing Arriva Trains Wales the seven Class 150 2-car units being used for this additional Valleys capacity.  Originally, they were intended to be used under the Wales and Borders franchise, for example, to replace several Class 158 vehicles, which were originally planned to be phased out from Wales.

The costs being met under my £50m investment are not those of Porterbrook's Class 150 rolling stock, for which Arriva Trains Wales is funded under the franchise.  I am meeting the full costs of leasing from Angel, plus the other operational costs as set out earlier, of a set of rolling stock comprising 6 x Class 158 2-car units, and from Porterbrook, 1 x Class 150 2-car unit and 2 x Class 153 1-car units.  The Class 158s are those which under the franchise would have been phased out from use in Wales.  These are being used on mainly longer-distance routes, for which they are suitable (and they are not suitable on the Valleys lines where they are not route cleared north of Radyr), to release the Class 150s.  The Class 150s are suitable for use on the Valleys lines.

Some of the rolling stock is being used as cover for units going into maintenance, therefore assisting overall reliability.  Together with the interim retention of loco-hauled stock on Rhymney Valley, this releases the Class 150s for Valleys use, for which they are eminently suitable.