The National Infrastructure and Service Transformation Authority (NISTA) has just published its updated Infrastructure Pipeline, offering more detail about future infrastructure opportunities in the UK. There are plenty of rail projects featured in the updated Pipeline, from the Docklands Light Railway extension and new rolling stock in London, to the Metrowest scheme in Bristol, various rail upgrade schemes in the Leeds and Manchester areas, as well as Northern Powerhouse Rail. 

Many of these schemes have already been announced or already form part of agreed funding packages, such as through the Network Rail Control Period process. Much of this information will therefore not be new. However, by bringing it all into a useful tool, it offers helpful visibility to the rail supply chain about forthcoming opportunities. Whilst badged as being for the construction sector, the Pipeline is actually useful for the broader rail supply chain; for example, setting out rolling stock investment. Interestingly, there is even a forthcoming rail opportunity for a “Low Earth Orbit Satellite”!

A few other key messages emerge from the associated announcements. First, the scale of anticipated investments is huge at £718 billion. Second, it is anticipated that much of this investment will be delivered through partnerships with the private sector. This has been a big point for the rail sector for a number of years and was a key topic for discussion at our recent Top Table Dinner on getting behind rail reform. There is appetite for the private sector to invest in rail, and there is appetite from the public sector for that investment, but — rolling stock aside — for some reason, there have not been many recent investments. Three factors have been identified for public-private partnership success: 

1. A clearly identifiable revenue stream.
2. “Certainty” of that revenue stream.
3. Appropriate balance of risk and reward, with risks being managed by the most appropriate party.

With the need for private investment identified by NISTA, it is clear these core factors need to be carefully considered. This is even more so in the context of rail reform and the creation of Great British Railways as that goes to certainty of the revenue stream.

Third, the announcements highlight the need for a skilled workforce to deliver on opportunities. This has been a concern for the rail industry for many years, particularly during the recent period of stagnation where we have seen talent leave the industry for other sectors. Ensuring we attract - and retain - the right talent is going to be fundamental for the rail sector and working out ways to do this now is essential. Of course, this is linked to the forthcoming Long Term Rail Strategy as well, which will hopefully offer more visibility of the direction of travel for the rail industry.