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East West plots a course for vertical integration

Feeling a little deflated, I turn to how Brighouse personally feels about the scale of the task ahead of him, and the role he will play in wresting control over enhancements away from NR and its Infrastructure Projects group. I will return later to the added twist and the perceived conflict created by his continued presence on NR’s executive board, but first he delivers a typically sanguine answer for a man well-known for his positive disposition. 

“There are never problems, only opportunities, and that is my philosophy on life. It’s a real pleasure doing this, and it absolutely fits in with what I’ve done throughout my career. I’ve worked for British Rail, I’ve worked in Australia looking at rail projects, I’ve worked in Hong Kong, I’ve worked in the private sector, and I’ve done some work for NR on the board. So it actually gives me a real opportunity to bring all that experience together.

“I’ve seen different ownership structures, different funding structures, and it gives me an opportunity to look at all that and see how we can get the best possible deal on this project.

“It’s a challenge, but a lovely challenge. I don’t underestimate it - it is a big job. But with the right attitude and the right approach, with strong government support and direction, I’m sure it is something we can do well.”

Crucially, Brighouse also has direct experience of East West, and of working closely with NR on one of its most successful past forays into public-private delivery of rail infrastructure. 

After joining Chiltern Railways in 2000, Brighouse led the delivery of the Evergreen 1 and 2 projects as projects director, and then Evergreen 3 once he had returned for a second spell at Chiltern as Managing Director in 2011. Focusing on the Chiltern Main Line, a key element of the Evergreen upgrades was the construction of a new rail link between London Marylebone, Bicester and Oxford - it fully opened in December 2016, and will eventually share its metals with EWR. 

Brighouse left Chiltern in 2015, before being appointed a non-executive director at NR in January 2016. But his legacy endures, as the Bicester-Oxford section remains the only part of the EWR route between Oxford and Bletchley currently open to passenger services. It was also delivered under a joint financing agreement between Chiltern and NR, whereby the operator committed £130 million of private capital to the overall £290m cost. The impact of Brighouse’s achievements at Chiltern was memorably recognised last year when he was awarded RAIL’s National Rail Award for Outstanding Personal Contribution (Senior Management).

He adds: “I can draw on the Evergreen 2 experience . I led that, and we delivered it on time and on budget. And when I say that, I mean the original programme from the day we started, not programme version six or seven. It was helpful for NR because it was benchmarking the private sector doing some of it versus NR-only, so it was good experience for me delivering that. 

“I left Chiltern and worked on London Overground, but came back when we were building the line to Oxford, and again that was different because we did it in partnership with NR. So I’ve seen a series of models here, and I’ve worked overseas for some time as well. I’ve seen railway projects from a number of different angles, and obviously that helps inform the work I’m doing at the moment.” 

Unsurprisingly, Brighouse is not alone in compiling the wide-ranging scoping report for EWR, and he has quickly assembled an able four-person team to assist him in this commission. It is being led by Phil Verster, who officially leaves his position at ScotRail to become managing director at EWR later this spring, but who has already started liaising with his new boss. 

Brighouse explains how the relationship will work between chairman and MD, while paying tribute to the array of talent that now surrounds him. After all, before any physical construction can begin, EWR will need to first obtain legal permissions to build, and then find over a billion pounds in funding. This task will call on a diverse range of skill sets. 

“I have a team covering all aspects - the end user requirement, the engineering and operational requirement, the financial side of things, and the legalities of bringing together an organisation to that.  

“I recruited Phil to the team because he has a great operational background, he has an international background, and he knows infrastructure, so he’s a great guy to lead the team. 

“Phil is working to me and my remit, and manages three other people. So I speak to Phil every day, and I’m with him every week to make sure we’re answering the questions put to me by the SoS. Phil is managing down and all of those inputs, and what I’m doing is managing up and out and dealing with the private sector, investors, National Infrastructure Commission, and dealing with all the various arms of Government to make sure what we’re doing is consistent with economic policy.

“I also have Stephen Barker, who used to work with me when I was MD of Chiltern. He was intimately involved in the line through to Oxford and he’s a chartered engineer, but also brings in a live operator perspective. 

“Then there’s Chris Nicholson, who is from KPMG initially but not anymore. He’s also worked as a special advisor to a cabinet member in the past, so he understands the process of government and he has a great grasp of finance.