Written evidence submitted by Angel Trains (RPE0184)

Submission to the Transport Select Committee’s inquiry into improving the rail passenger experience

Angel Trains

1.               Introduction

1.1              Angel Trains is the largest of the UK’s Rolling Stock Owning Companies (ROSCOs). We own and maintain over 4,300 passenger vehicles, representing around 34% of the nation’s rolling stock, which we lease to all 21 franchised and open access operators.

1.2              Angel Trains plays an integral role in the UK rail industry. We attract and secure the necessary private finance to procure, refurbish and enhance passenger rolling stock. Over the past 22 years we have invested over £3.8 billion in new rolling stock and refurbishment programmes.

1.3              Based in London and Derby, Angel Trains employs 120 professional, technical and administrative staff, and through our supply chain we support thousands of UK jobs. A skilled workforce is needed to enable Angel Trains and our industry partners to deliver major programmes of investment across the network. In addition to our graduate engineering programme, we are launching our first apprenticeships in engineering and finance later this year. These schemes will help to address the skills gap in the sector, and support the Government’s ambition to create 20,000 new rail apprenticeships by 2020[1].  We are committed to encouraging diversity in the industry through our support and sponsorship of Women in Rail, a mentoring and network group founded by Angel Trains’ General Counsel, Adeline Ginn.

1.4              Angel Trains works closely with Train Operating Companies (TOCs) to plan and deliver rolling stock that meets the Department for Transport’s franchise specifications and passengers’ needs, now and in the future. We are grateful for the opportunity to respond to the Transport Select Committee’s call for evidence, and intend to focus our comments on Angel Trains’ role in improving the passenger experience through the provision of new trains and the refurbishment of existing fleets across the UK.

2.               Improving the passenger experience: new rolling stock

2.1              Our engineers and financial experts manage our rolling stock at every stage of its life cycle. This long-term approach to asset stewardship enables us to continue to optimise and enhance our high speed, regional and commuter fleets for UK passengers – both with the introduction of new rolling stock and high quality refurbishment programmes, which offer passengers the look, feel and performance of a new train.  

2.2               In April, Angel Trains announced a £232 million rolling stock contract with Hitachi Rail Europe to supply 19 five-car state of the art AT300 ‘Inter City’ bi-mode trains, as part of the new TransPennine Express franchise. The new trains have been designed to completely remodel the passenger experience of rail travel in the north of England, and will lead to significant improvements in seating, capacity, reliability and efficiency. There will also be enhanced entertainment options, free Wi-Fi, better catering and real-time information systems. The new trains will be assembled in County Durham, at Hitachi’s plant in Newton Aycliffe, supporting UK-based manufacturers.

2.3              To address passenger capacity issues in London, Angel Trains will provide 30 extra five-carriage Siemens Desiro City trains to Stagecoach South Western Trains (SSWT) to operate on SSWT’s busy commuter routes in and out of London Waterloo during peak times. This £240 million investment will increase capacity for over 24,000 additional peak-time passengers every day.

3.               Improving the passenger experience: high quality refurbishment

3.1              As the DfT outlined in its Rolling Stock Perspective, high quality refurbishment of trains can deliver a passenger experience comparable with new rolling stock but for a fraction of the cost of buying new vehicles[2]. These efficiencies can help to keep down the cost of leasing and the subsequent knock on cost to passengers. This offers greater value for money for fare payers and tax payers whilst meeting passengers’ expectations of modernised rolling stock (e.g. the provision of Wi-Fi, plug and USB sockets, ventilation and air-conditioning and flexible areas for multi-purpose usage). Notably, this approach also provides significant economic benefits for the domestic rail supply chain, as the majority of this refurbishment work is carried out by UK-based manufacturers.

3.2              In addition to the procurement of new trains, Angel Trains invests around £80 million per annum on maintenance and refurbishment of our existing fleets. We channel over £60 million through our supply chain, who range from large companies to specialist SMEs, supporting 2,500 skilled jobs around the UK and helping to encourage regional economic growth. For example, Angel Trains is planning to invest a further £35 million across our 500 vehicles which we are leasing to Arriva Rail North as part of the new Northern franchise. This accounts for over a tenth of our current portfolio. The introduction and lease of additional Class 150, 156 and 158 vehicles will further modernise the passenger experience, replacing older Class 142s. This is part of Angel Trains’ commitment to removing all Pacers from the network by 31 December 2019.

4.               Future investment

4.1               ROSCOs take a long-term strategic view of the rail industry given the 30-35 year life-span of the trains we buy. We work with industry colleagues to produce an annual forecast of the likely size and mix of the national rolling stock to accommodate future passenger numbers over 30 years[3]. Policy certainty and long-term planning from government are both needed to help ROSCOs assess and manage the best cascade options for our fleets and coordinate major upgrades. These works include meeting the vehicle access requirements for passengers with reduced mobility (by 2020) and the fitment of the European Train Control System to support the future roll-out of the Digital Railway initiative.  

4.2              We strongly support the Government’s commitment to market-led rolling stock procurement to deliver trains that meet the needs and expectations of rail users, and offer value for money for passengers and taxpayers. Angel Trains has already invested over £3.8 billion in the UK rail industry and, working with our partners in the industry, we look forward to continuing to make further significant investments in rolling stock in the future.

5.               Further information

5.1               If the Committee would like further information relating to this written submission, please contact:

May 2016