Multi Annual Infrastructure Planning

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Multi Annual Infrastructure Planning

• Twinning project,
• Tuesday 28 March 2006, Ljubljana
• By Henk Schutte, Ministry of Transport, The
  Netherlands

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Ministry organogram

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DG Passenger Transport
DG Passenger Transport
Pol I cy
Railway Directorate
Road Directorate
Water Directorate
Execution
Rail infra manager ProRail
Rijkswaterstaat (Road Agency)
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Content of Presentation

• Institutional setting
• Facts and figures
• Actual Policy
• Policy process (priorities)
• Maintenance (more details)
• Managing performance
• Multi-annual planning

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Relationship State-ProRail

• ProRail is rail infra structure manager
• ProRail Private company
• State is only shareholder
• Legislative framework Act on Railways
• Management Concession ProRail

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Institutional triangle

• State
• ProRail (Maintenance, capacitymanagement, Traffic
  Control)
• Railway Operators (passenger and freight)
• EC-directives

MoT
NS
ProRail
Freight Operators
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Funding of ProRail

• Annual subsidy for maintenance
• Subsidies for new infrastructure (projects)
• Infrastructure charge
• Third party revenues

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Dutch railway infra structure Facts and figures
(1)

• 6500 km rail (2004)
• 2800 length of network
• 4500 km of catenary
• 4500 bridges and tunnels
• 3000 secured cross overs
• 9000 switches
• 9800 signalling poles
• 386 stations

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National Rail Network
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Dutch railway transportation Facts and figures
(2)

• 128 mln train kilometers (per year)
• 5000 passenger trains (per day)
• 230 freight trains (per day)
• 1 mln passengers (per day)
• 80.000 tonne freight (per day)

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MoT Setting the policy priorities

• Prioritisation of railway infrastructure
  investment projects according to MIT-rules
• Prioritisation of railway infrastructure
  maintenance according to output results
• Multi-annual budget for funding ProRail

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MoT Actual Policy

• National mobility plan
• Decreasing budgets for new infrastructure
• Increasing budgets for maintenance
• Railinfrastructure Recovery plan

!
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Consequences of former policy - Lessons learned

• Too much focus on new infra structure
• Absorption budgets by mega projects
• Limited budgets for maintenance
• Backlog in maintenance
• RAMS problems
• Unsatisfied railway operators and passengers

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Railway infra structure Available budget

• New infrastructure 2006-2010 4,5 (billion)
• New infrastructure 2011-2014 1,9
• New infrastructure 2015-2020 0,1
• Total new infrastructure 6,5
• Maintenance 2006-2010 6,9
• Maintenance 2011-2014 4,4
• Maintenance 2015-2020 9,0
• Total Maintenance 20

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ProRail Facts and figures financial

• Total Costs Maintenance 1200 mln
• Infra Structure Charge 200 mln
• Annual MoT subsidy 1000 mln
• Management, Current capital maintenance,
  renewal, interest, depreciations, overhead,
  other.

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MIT- model Phases and decision moments
3. Project decision
1. Intakedecision
5. Completion
2. Yes/no planning phase
4. Implementing order
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Decision making process (Stakeholders)

• Realization policy goals
• Political influence
• Economical Costs and benefits
• Regional policy (Provinces and local authorities)
• Wish list railway operators
• Wish list rail infra manager ProRail
• Interests of societal organisations
• Interests of citizens

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Decision making processes on railway
infrastructure the policy arena
MIT
Provinces
parliament
MoT Railway Directorate
ProRail
Railway operators
Citizens
Munici palities
Societal organisations
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Prioritising Railway Maintenance

• Long term budget based on agreed upon results
  (KPIs)
• ProRail responsibly for selecting means
  (activities) to obtain the results
• State influence on rail infra management
  operation limited to political sensitive
  dossiers
• (for example accessibility)
• Maintenance agreements between the MoT and
  ProRail contain renewals as well
• Planning control includes audits/benchmarks.

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Measuring the results Key Performance Indicators
(KPIs)

• Reliability (Disruptions, Irregularities,
  Function restore time)
• Availability (train free periods, the avoidance
  of speed restrictions!)
• Quality (Renewal, Life Cycle Management)
• Safety (percentage of travellers, which feel safe
  at day / night ,the amount of train collisions
  and the death toll)
• Properness (the amount of travellers that judges
  stations to be sufficient clean)

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Working with the MIT in the Railway Sector
lessons learned

• Long term planning important for efficient
  operation (LCM) and increasing reliability and
  utilisation (performance)
• Overview of long term effects and performance
  necessary for securing long term budget
• Golden rule less budget less performance
  (exception efficiency).
• Transparant decision making based on integrated
  approach.

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Content Afternoon presentation

• Setting policy priorities in more detail (the
  National Mobility Plan)
• From performance to budget
• Relationship Multi Annual budget and annual
  management plan
• Multi Annual budget and changes in policy
• Conclusions

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Setting policy priorities

• The National Mobility Plan (2011-2020)
• - Retain current rail maintenance level within
  few years (renewal plan)
• - Improving quality and preparing for future
  local growth
• - Punctuality from 83 in 2003 to 89-91 in
  2020.
• - Limited expanding of the network

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From Performance tot budget

• Performance targets as agreed upon in the
  National Mobility Plan
• Decision making process based on performance-cost
  scenarios
• Multi-annual budget (MIT) is based on the costs
  of the national mobility plan
• Efficiency improvement is part of the budget

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Railway infra structure Available budget

• New infrastructure 2006-2010 4,5 (billion)
• New infrastructure 2011-2014 1,9
• New infrastructure 2015-2020 0,1
• Total new infrastructure 6,5
• Maintenance 2006-2010 6,9
• Maintenance 2011-2014 4,4
• Maintenance 2015-2020 9,0
• Total Maintenance 20

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Multi Anual Overview

• Handout

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Multi Annual Budget and Annual Management Plan

• Multi Annual Budget (MIT) based on National
  Mobility Plan
• Annual Subsidy based on annual management plan
• Annual management plan includes renewal.

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Annual Management Plan (1)

• ProRail responsible for annual management
  maintenance plan
• The plan has to be in line with performance
  agreed upon in MIT and national mobility plan
• ProRail responsible for selecting means tot
  obtain goals( Performance)
• MoT has to approve the management plan

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Annual Management Plan (2)

• The annual management maintenance policy must
  be in line with the Multi-Annual budget
• Annual MoT subsidy based on annual Management
  Plan
• Deviations from the plan have to be agreed upon
  and can change the annual subsidy
• Differences between subsidy and realised costs
  have to be explained by ProRail
• Differences will be part of the result or balance
  sheet of ProRail

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Mutli Annual Budget and changes in policy (1)

• Right to approve the (multi annual) budget by the
  parliament
• New government can always change priorities and
  budget
• A change in policy starts with the discussion
  about the goals

Budget follows performance !
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Mutli Annual Budget and changes in policy (2)

• Consequences for Life Cycle costs and efficiency
• Changes in policy difficult on short term
  (2006-2010), possible on mid term (2011-2014) and
  likely on long term (2015-2020)

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Case What if theres less budget available

• Step 1 Define policy priorities (MoT)
• Step 2 Change maintenance Plan in line with
  these priorities (ProRail)
• Step 3 Overview of effects (ProRail)
• Step 4 Scenarios for decision-making in terms
  of costs budget) and benefits performance
  (MoT).

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Conclusions (1)

• Multi Annual Budget provides stability for
  ProRail relative secure budget.
• Multi Annual budget provides stability for MoT
  less claims, less surprises, stability in
  performance.
• Multi Annual Performance and Multi Annual Budget
  are two sides of same coin!

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Conclusions (2)

• Multi annual planning provides opportunity for
  optimizing life cycle costs
• Performance planning demands knowledge of and
  transparancy in relationship between performance,
  activities and costs
• Multi Annual Performance Policy necessary for
  securing Multi Annual budget

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Any questions?