Olivier Andre
Commercial Director, Porterbrook
Terence Watson is absolutely correct - these are exciting times for the supply chain, and our industry is buzzing.
The Rail Supply Group’s strategy could not come at a better time - not only to highlight the challenges the industry faces, but also to clearly set the objectives for sustainable success. The strategy’s long-term view is also very welcome, as tactical behaviour and knee-jerk reactions are not incentivising private investments in rail.
As a major supplier of private sector capital into our industry, and as a member of the RSG council, Porterbrook endorses the four pillars underlying the strategy.
Market conditions set the risk profile and therefore the appetite for investment in the rail sector. The work that has been done for the publication of the fourth edition of the Rolling Stock Strategy and the RSG strategy explain clearly the need for long-term planning, for smoothing out demand, and for avoiding at all costs the feast and famine cycles we have too often seen in the past.
The rolling stock market is a case in point. To support and sustain a vibrant supply chain it is important that
the procurement of new trains is complemented by investment in refurbishment of
existing fleets, maximising whole-life asset cost
as well as supporting the jobs and skills to
be found in the UK’s vibrant rolling stock after-market. Over-reliance on new build,
leading to early withdrawal of non life-
expired assets, risks jeopardising
investment in fleets that are (in rolling stock terms) middle aged
and good for many more years service. This will also be detrimental for both employment and the urgent need to develop people and skills in our industry to enhance our overall productivity. Therefore, while we welcome the substantial investment in new franchises that we are seeing at present, we also believe there is a balance in the age profile of rolling stock and other infrastructure assets which will deliver to UK rail and its supply chain sustainability in costs, employment and skills development.
The second pillar of the strategy - innovation - is also very
relevant to the rolling stock market. Whether it is Energy Management (with several fleets now being retractioned to make them more efficient), the Customer Experience (with investments in remodelling seating layouts, installing WiFi or modifications to comply with PRM -TSI), or Asset Optimisation (which has always been core to the ROSCO model), all these aspects are at the
forefront of any investment made in the fleets. These enhancements are mostly done through the UK supply chain and the web of SMEs trying to enter the market.
This leads us into investing in people and skills. As has been said and written many times, the industry will face an unprecedented challenge given the demographic and diversity profile of our industry in the next five years.
Setting aside the need to attract more young people into the industry, one thing that the RSG strategy rightly highlights is the need for the industry to be appealing. And what better way is there for an industry to do so than to give a long-term prospect of sustained growth with exciting new developments and significant investments? Maintaining and developing a healthy supply chain, for both new products and also in after-market activities, is essential to build the confidence of the younger generation that rail is indeed an exciting place with a bright future.
Finally, the last pillar, (exporting) is not directly applicable to a business such as ours, but essential nevertheless as it is clear that our suppliers must be competitive. And what other way to prove your competitiveness than to be successful on an international basis?
The foundation for a prosperous future is there, and both the industry and the Government are aligned in the objectives. Now let’s embrace and support the RSG Industry strategy and deliver its objectives!
