Everything you need to know about Network Rail's Control Period 7 (CP7)

The ultimate guide to the UK railway in the next five year funding cycle between April 2024 and March 2029.
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TLDR Control Period 7

  • CP7 is a five-year period (2024-2029) during which Network Rail will invest £44 billion in the UK railway.
  • The goals of CP7 are to reduce delays by 20%, increase capacity by 30%, reduce carbon emissions by 70%, and achieve a fatality-free railway.
  • Network Rail will work closely with its stakeholders to deliver a railway that is reliable, efficient, and sustainable.
  • The company is committed to making the railway a more sustainable and environmentally friendly mode of transport by electrifying more lines, investing in renewable energy, and improving the energy efficiency of its buildings and infrastructure.
  • Network Rail is also working to engage with local communities and stakeholders to ensure that its projects are delivered in a way that meets the needs of everyone involved.
  • The COVID-19 pandemic has had a significant impact on CP7, but Network Rail is confident that it can deliver on its goals despite the challenges.
Contents:

Introduction to Control Periods

In the ever-evolving landscape of the United Kingdom's rail industry, the concept of control periods serves as a crucial framework that shapes the trajectory of development, innovation, and service excellence. Each control period marks a distinct chapter in the continuous journey of enhancing the nation's rail network, with Control Period 7 (CP7) the next step in the industry's commitment to growth and transformation.

Defining Control Periods

Control periods are fundamental divisions of time, typically spanning five years, during which Network Rail, the UK's primary rail infrastructure provider, plans, budgets, and executes a range of strategic initiatives aimed at improving the nation's railway system. These initiatives encompass a spectrum of projects, from upgrading tracks and stations to enhancing digital infrastructure and advancing passenger services. The delineation into control periods allows for a systematic approach to investment, innovation, and performance evaluation.

Learn more on "What is Network Rail's Control Period 7 and how to prepare".

Control Period Funding

Network Rail's budget for Control Period 7 (CP7) is £44 billion, which is a decrease of £3.4 billion from the previous control period (CP6). The funding for CP7 will come from three sources: government grant, access charges, and commercial income.

The reduction in grant funding could put pressure on Network Rail's finances, but the company is confident that it can deliver a successful CP7 by carefully managing its finances and taking advantage of the opportunities that arise.

The government's commitment to investing £106 billion in the railways over the next five years could provide opportunities for Network Rail to secure additional funding. The increase in passenger demand could also generate more revenue for Network Rail.

Overall, the funding for CP7 is sufficient to deliver a number of important projects, but Network Rail will need to carefully manage its finances and take advantage of the opportunities that arise.

Read more on Network Rail CP7 Funding: A Detailed Analysis

Control Period 7 performance targets

Network Rail has set ambitious performance targets for Control Period 7 (CP7). These targets include reducing delays by 20%, supporting Freight growth by 7.5%, reducing carbon emissions by 21%, and achieving a fatality-free railway.

The performance targets are important for a number of reasons. They provide a clear set of goals for Network Rail to achieve, they can be used to measure the company's performance, and they can be used to hold Network Rail accountable for its performance.

If Network Rail can deliver on these targets, it will make a significant contribution to the improvement of the UK railway.

The performance targets for CP7 are a critical part of Network Rail's plan to deliver a safe, reliable, and efficient railway. The company is committed to meeting these targets and is confident that it can achieve them.

Read more on What are the targets for Control Period 7 (CP7)?

Environmental… Period 7

Environmental Sustainability Initiatives during Control Period 7

Network Rail is committed to making the railway a more sustainable and environmentally friendly mode of transport. During Control Period 7 (CP7), the company will focus on reducing carbon emissions, improving air quality, reducing waste, and protecting biodiversity.

Some of the specific initiatives that Network Rail will undertake include:

  • Electrifying more lines to reduce the use of diesel trains.
  • Investing in renewable energy, such as solar and wind power.
  • Improving the energy efficiency of its buildings and infrastructure.
  • Planting trees to absorb pollutants from the air.
  • Investing in cleaner technologies, such as electric trains and hybrid vehicles.
  • Recycling more materials and reducing food waste.
  • Creating more wildlife habitats.

Network Rail is also working to improve its environmental reporting and transparency. The company has published a number of environmental reports, including its Sustainability Report and its Carbon Reduction Plan.

Read more on these initiatives in our latest update; Everything you need to know about Environmental Sustainability Initiatives during Network Rail Control Period 7 (CP7)

Community engagement and stakeholder involvement in Control Period 7

Network Rail is committed to engaging with local communities and stakeholders during Control Period 7 (CP7). The company believes that it is important to work with these groups to ensure that its projects are delivered in a way that meets the needs of everyone involved.

Network Rail will engage with communities and stakeholders through a variety of channels, including public consultations, community workshops, online engagement, and direct contact. The company believes that community engagement and stakeholder involvement is essential to delivering successful projects.

Here are some examples of how Network Rail is engaging with communities and stakeholders during CP7:

  • The company is working with local communities to develop plans for the electrification of the Midland Main Line.
  • Network Rail is holding public consultations on plans to improve the railway station in Crewe.
  • The company is working with stakeholders to develop a plan for the future of the railway in Wales.

For a full review of initiatives, read “Community Engagement and Stakeholder Involvement in Network Rail Control Period 7”.

How does Network Rail collaborate with other stakeholders during Control Period 7?

Network Rail is working closely with its stakeholders to deliver a railway that is reliable, efficient, and sustainable. In CP7, which runs from 2024 to 2029, Network Rail will be collaborating with train operating companies, government, local authorities, industry bodies, and passengers.

Some of the specific collaborations include working with the government to develop a new National Rail Plan, working with TOCs to introduce new timetables, working with local authorities to improve access to stations, and working with industry bodies to develop new standards for railway safety and efficiency.

By working together, Network Rail and its stakeholders can create a railway that is fit for the future and that meets the needs of everyone who uses it.

Read the full strategy.

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Overview of CP7 efficiency initiatives

Network Rail is undertaking a number of efficiency initiatives during Control Period 7 (CP7). These initiatives aim to improve the efficiency of asset management, increase automation, streamline processes, improve data analytics, and collaborate with partners.

The company faces a number of challenges in delivering these initiatives, including budget constraints, the complexity of the railway network, and resistance to change. However, Network Rail is committed to overcoming these challenges and delivering its CP7 efficiency initiatives.

The company is confident that these initiatives will help to improve the efficiency of its operations and deliver a better service to its customers.

Read the full analysis on Network Rail's Efficiency Initiatives for Control Period 7

Impacts of COVID-19 on CP7 plans and delivery

The COVID-19 pandemic has had a devastating impact on the UK economy, and the railway industry has not been spared. Network Rail, the organisation responsible for maintaining and operating the UK's railway infrastructure, has been forced to make significant changes to its plans for Control Period 7 (CP7), which runs from 2024 to 2029.

One of the biggest challenges facing Network Rail is the sharp decline in passenger demand. In the early days of the pandemic, passenger numbers fell by as much as 95%. This has led to a significant drop in revenue, making it difficult for Network Rail to fund its CP7 plans.

Another challenge is the increase in costs. Network Rail has had to spend more money on things like PPE and testing for staff, as well as on cleaning and disinfecting stations and trains. This has also put a strain on the company's finances.

The pandemic has also caused delays to a number of CP7 projects. This is because it has been difficult to get staff and materials on site, as well as to comply with social distancing guidelines.

Despite these challenges, Network Rail is determined to deliver its CP7 plans. The company is working to find ways to overcome the challenges posed by the pandemic, such as by using new technologies and working more closely with partners.

Read the full analysis on COVID-19's Influence on Network Rail's CP7 Schemes and Delivery

Rail maintenance in CP7

During Control Period 7 (CP7), Network Rail is investing heavily in rail maintenance. The company is using a range of strategies and practices to prevent defects, use new technologies, and work more closely with partners. These strategies and practices are helping to deliver a safe, reliable, and sustainable railway.

Some of the specific strategies and practices that Network Rail is using include:

  • Using drones and other technologies to inspect infrastructure for defects.
  • Using data analytics to predict when defects are likely to occur.
  • Using sensors to monitor the condition of infrastructure remotely.
  • Using condition-based maintenance to only repair infrastructure when it is needed.

These strategies and practices are helping Network Rail to reduce delays, increase safety, improve efficiency, and reduce costs.

Read the full explanation on Unravelling the Framework of Rail Maintenance during Control Period 7

A group of men standing on a train track at night.

Rail Infrastructure Projects in CP7

Network Rail is investing billions of pounds in rail infrastructure during Control Period 7 (CP7). These investments will electrify more lines, improve track, upgrade stations, and make the railway more resilient to extreme weather events.

One of the most exciting projects is the electrification of the Midland Main Line. This will see the railway line between London St Pancras and Sheffield electrified, which will reduce the use of diesel trains and improve air quality.

Another exciting project is the upgrade of the track on the TransPennine Express route. This will improve the reliability and safety of the route, and make it easier for passengers to travel between Manchester and Leeds.

Network Rail is also investing in station improvements across the network, including building new stations and upgrading existing stations. The company is also investing in tunnel and bridge improvements to make them more resilient to extreme weather events.

These investments will help to deliver a safer, more reliable, and sustainable railway for many years to come.

Here are some of the benefits of these projects:

  • Reduced delays: Electrification and track improvements will reduce the number of delays caused by infrastructure failures.
  • Increased safety: Station improvements and tunnel and bridge improvements will make the railway more resilient to extreme weather events and reduce the risk of accidents.
  • Improved capacity: New rolling stock and digital signalling will increase the capacity of the railway and reduce congestion.
  • Reduced emissions: Electrification will reduce the use of diesel trains and improve air quality.
  • Improved connectivity: New stations and improved connections will make it easier for people to travel by train.

These investments are essential to the future of the railway. They will help to make the railway a more efficient, reliable, and sustainable way to travel.

Read "Everything you need to know about the Southern Integrated Delivery framework".

Modernisation and Upgrades

Network Rail is investing in a number of modernisation and upgrades during Control Period 7 (CP7). These include digital signalling, automation, and other upgrades, such as new bridges and tunnels. The company is also working to improve the accessibility of the railway for people with disabilities.

Digital signalling and automation are two of the most important technological innovations that Network Rail is investing in. These technologies have the potential to revolutionise the way the railway operates, making it more efficient, reliable, and sustainable.

Digital signalling uses electronic signals to control the movement of trains, rather than traditional mechanical signals. This makes it possible to run more trains more closely together, which can improve capacity and reduce delays. Digital signalling also makes it easier to manage the railway in real time, which can help to improve safety.

Automation technologies, such as drones and robots, can be used to improve the efficiency of a wide range of tasks, from inspecting infrastructure to carrying out maintenance. This can help to reduce the need for manual labour and make operations safer.

Network Rail is confident that these modernisation and upgrades will help to make the railway a more modern, efficient, and sustainable system that can meet the needs of passengers and freight customers for many years to come.

Discover more on Network Rail's Intelligent Infrastructure Program

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Digital Transformation and Data Analytics

The rail industry is undergoing a digital transformation, with the use of digital technologies and data analytics becoming increasingly important. This is being driven by a number of factors, including the need to improve efficiency, reliability, and safety, as well as the need to reduce costs.

One of the most important areas of digital transformation in the rail industry is in operations. Digital technologies are being used to improve the efficiency and reliability of operations in a number of ways, including:

  • Digital signalling: Digital signalling is being used to replace outdated mechanical signalling systems. This is making it possible to run more trains more closely together, which can improve capacity and reduce delays.
  • Rail condition monitoring: Rail condition monitoring systems are being used to collect data on the condition of the railway infrastructure. This data is being used to identify and repair defects before they cause problems, which can improve safety and reduce costs.
  • Asset management: Digital asset management systems are being used to track the condition of assets such as trains and bridges. This data is being used to optimise maintenance schedules and reduce the risk of failures.
  • Data analytics is also being used to improve the efficiency and reliability of operations. For example, data analytics is being used to:

    Predictive maintenance:
    Data analytics is being used to predict when assets are likely to fail. This information is being used to schedule maintenance work more efficiently and reduce the risk of unplanned outages.
    Demand forecasting:
    Data analytics is being used to forecast demand for rail services. This information is being used to optimise train schedules and reduce congestion.
    Customer insights:
    Data analytics is being used to gain insights into customer behaviour. This information is being used to improve customer service and make the railway more attractive to passengers.

In addition to operations, digital transformation and data analytics are also being used to improve maintenance and experience enhancement in the rail industry. For example, digital technologies are being used to:

  • Automate maintenance tasks: Digital technologies are being used to automate some maintenance tasks, such as inspecting infrastructure for defects. This can free up workers to focus on more complex tasks and improve safety.
  • Augment reality: Augmented reality is being used to help workers diagnose and repair defects. This can improve efficiency and reduce the risk of mistakes.
  • Personalised passenger experiences: Data analytics is being used to create personalised passenger experiences. For example, passengers can be shown real-time information about their journey, such as the next train arrival time and the location of available seats.

The use of digital transformation and data analytics in the rail industry is still in its early stages, but it has the potential to revolutionise the way the industry operates. By improving efficiency, reliability, safety, and customer experience, digital transformation and data analytics can help to make the rail industry a more sustainable and attractive way to travel.

Skills and Workforce Development

Network Rail is investing £1.2 billion in skills and workforce development in Control Period 7. This investment will be used to upskill and reskill the existing workforce, attract new talent to the industry, and develop new ways of working.

Network Rail is committed to creating a world-class railway for the UK. By investing in its people, it is ensuring that it has the workforce it needs to meet the challenges of the future.

Here are some of the specific skills and workforce development initiatives that Network Rail is planning for CP7:

  • Upskilling and reskilling the existing workforce: Network Rail will offer a range of training and development opportunities to its existing employees. This will include training on new technologies, new ways of working, and leadership and management skills.
  • Attracting new talent to the industry: Network Rail will work to attract new talent to the industry, particularly from under-represented groups. This will include working with schools and colleges to raise awareness of the rail industry as a career option.
  • Developing new ways of working: Network Rail is committed to developing new ways of working that are more efficient and effective. This will require a workforce with new skills and capabilities.

The skills and workforce development strategy for CP7 is a key part of Network Rail's plan to deliver a world-class railway for the UK. By investing in its people, Network Rail is ensuring that it has the workforce it needs to meet the challenges of the future.

Read more in our latest blog; Skills and Workforce Development in Control Period 7: A Closer Look

The roll out of NEC4 during CP7

As part of Control Period 7 initiatives, Network Rail is executing the rollout of the New Engineering Contract 4 (NEC4) across its projects. NEC4, an innovative and flexible contract management framework, is anticipated to significantly enhance efficiency and mitigate risks within the rail sector.

Introduced in 2017 by the UK government, the NEC4 contract management framework offers superior flexibility and user-friendliness compared to its predecessor, NEC3. Adopting a principles-based approach, NEC4 is less prescriptive, enabling both parties increased latitude in negotiating contract terms.

There are three primary reasons that have prompted Network Rail to implement widespread use of NEC4 within its CP7 projects:

  1. Flexibility: The rail sector often contends with complex and evolving projects, making NEC4's enhanced flexibility a valuable attribute.
  2. User-friendliness: With improved clarity and understandability, Network Rail and its contractors will encounter fewer challenges in comprehending and utilising contracts.
  3. Efficiency and risk reduction: The adoption of NEC4 is expected to bolster efficiency and minimise risks within the rail industry.

Rolling out the NEC4 framework across the rail industry presents certain challenges:

  • Training and development: As a new contract framework, cultivating an understanding of NEC4 among all stakeholders is essential, especially for smaller rail operators.
  • Culture shift: The adoption of NEC4 necessitates a change in contract management practices and may require a cultural transformation within organisations.
  • Stakeholder commitment: NEC4 is effective only when all stakeholders, including Network Rail, contractors, and the wider rail industry, demonstrate commitment to the framework.

As enhancements and renewals continue in haste, a consistent approach using a collaborative form may give the best chance for the industry to deliver on the programme and efficiency targets set by the Government.

For more information read:  Will the adoption of NEC4 improve outcomes for Network Rail in CP7?

Cross-Industry Collaboration

The UK rail industry is facing a number of challenges, including increasing passenger demand, aging infrastructure, and climate change. To meet these challenges, the industry is increasingly turning to cross-industry collaboration to drive innovation.

Cross-industry collaboration is the process of bringing together organisations from different industries to work together on a common goal. In the rail industry, this could involve collaborating with other transportation providers, technology companies, or even construction firms.

There are a number of benefits to cross-industry collaboration in rail. First, it can help to pool resources and expertise. This can lead to the development of new and innovative solutions that would not be possible if each industry was working alone.

Second, cross-industry collaboration can help to break down silos and promote a more holistic approach to problem-solving. This is important in the rail industry, where challenges often cut across multiple domains.

Third, cross-industry collaboration can help to build relationships and trust between organisations. This can be essential for long-term collaboration and innovation.

For more examples, read Cross-Industry Collaboration in Rail: Driving Innovation for a Sustainable Future.

Risk Management and Contingency Planning

Risk management and contingency planning are essential to the success of CP7. By identifying and mitigating risks, Network Rail can reduce the chances of delays and cost overruns.

Some of the risks that Network Rail is facing during CP7 include delays in the delivery of materials and equipment, strikes by railway workers, and changes in government policy. Network Rail is mitigating these risks through a variety of measures, such as building relationships with suppliers, working with trade unions, and monitoring government policy closely.

In addition to these general measures, Network Rail is also developing specific contingency plans for each project. These plans will outline how Network Rail will respond to delays, cost overruns, and other unforeseen events.

By taking a proactive approach to risk management and contingency planning, Network Rail is increasing the chances of success for CP7.

Read our essential guide to Risk Management and Contingency Planning in CP7

Heritage and Historic Preservation

The UK has a rich railway heritage, dating back to the early 19th century. Network Rail is committed to preserving and maintaining this heritage in Control Period 7 (CP7). The CP7 Strategic Business Plan includes a number of initiatives to achieve this, including investing £1.2 billion in the repair and renewal of listed railway structures, working with heritage organisations, and raising awareness of the importance of railway heritage.

Network Rail is also working to develop new ways to reduce the cost of preservation and maintenance, find ways to balance the needs of preservation with the needs of modern railway operation, and involve heritage organisations and the public in the preservation process.

By taking on these challenges and seizing these opportunities, Network Rail can help to ensure that the UK's railway heritage is preserved for future generations.

Here are some of the key points:

  • Network Rail is investing £1.2 billion in the repair and renewal of listed railway structures in CP7.
  • Network Rail is working with heritage organisations to develop and deliver conservation projects.
  • Network Rail is raising awareness of the importance of railway heritage among the public and railway workers.
  • Network Rail is working to develop new ways to reduce the cost of preservation and maintenance.
  • Network Rail is finding ways to balance the needs of preservation with the needs of modern railway operation.
  • Network Rail is involving heritage organisations and the public in the preservation process.

Read more about these initiatives: Heritage and Historic Preservation in CP7

Overall, the future outlook for the UK railway is positive. However, there are a number of challenges that need to be addressed in order to realise the full potential of the railway. The government and Network Rail need to work together to ensure that the railway is properly funded, that political interference is minimised, and that public opposition is addressed.

If these challenges can be overcome, the UK railway will be a key part of the solution to the challenges of climate change and congestion.

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