NR prepares for Monday’s ‘big bang’ shake-up

Network Rail is preparing for the launch on Monday of the rest of its devolved routes. Scotland and Wessex have been operating since May as distinct business units, with their own route managing directors, and from November 14 they will be joined by the East Midlands, London North Eastern, London North Western, Wales, Western, Sussex, and Kent & HS1. From Monday, full responsibility for maintenance and asset management will shift to the route directors. The change is aimed at speeding up decision-making, and ensuring a local focus on everything from signalling to operations. Each business unit will have its own set of accounts, allowing greater benchmarking of financial performance and efficiency. During his speech to the Derby & Derbyshire Rail Forum last week, Network Rail chief executive David Higgins discussed the devolution programme, explaining: “Huge gains have been made in the last 10 years by centralisation – centralising procurement, systems, rail supply – controlling cash very tightly. That’s how costs have come down. But now, to reach the next level of efficiencies in our organisation, we need speedy decision-making. “The decisions on where we invest for the next five years are best made right at the customer interface.” One of the new route MDs, Phil Verster, previously deputy CEO and chief engineer at Irish Rail, is taking over the LNE route. He said: “This is a significant change for the way we manage the railway. Instead of segregated teams reporting to various head office functions on operations, electrification, signalling, track and structures, we will now have local autonomy and a local focus.” Each route team will become the main contact for passenger and freight operators, and the rail supply chain, in each area. At the DDRF meeting, for example, Higgins was keen to ensure the rail businesses present memorised the name and face Martin Frobisher, the new route MD for the East Midlands. The ten route teams will be supported by a “slimmer, more strategic central organisation”, Network Rail said, ensuring they can continue to benefit from its economies of scale and that national standards on safety and performance are maintained. The new national centre in Milton Keynes, which opens next summer, will house 3,000 staff, bringing together national functions from all over Britain to support the route teams and their customers.