The Welsh Government intends to take Valley Lines electrification out of Network Rail’s hands and award a concession for modernising and operating the system.
If the UK Government does not block the move, it will take rail devolution into a new dimension, with vertical integration of track and trains. Even Transport for London and Transport Scotland have not gone so far on the heavy rail network, but have vertically integrated light rail and metro systems.
Has the Welsh Government 'frightened the horses'
Ministers in Cardiff are unhappy with Network Rail’s handling of Welsh Government-funded upgrades and with the uncertainty over electrification in South Wales after the short section from the Severn Tunnel to Cardiff is completed.
Welsh Government deputy permanent secretary James Price said bidders for the Valley Lines concession would be asked what signalling and trains – including the option of light rail – they think are appropriate, rather than being given a technical specification.
‘There are three or four big consortia who really want to bid for this, so there’s enough of a field,’ he told an Assembly committee.
He said people were sceptical about Network Rail’s ability to deliver the digital railway, but modern signalling could be ‘dropped in overnight’ in Wales if the winning consortium had used the same European system overseas.
Next week he is due to update Nicola Shaw on the Valley Lines plan, for her Network Rail review. He said that she, as an individual, had been ‘very supportive’ and he hoped the review would back the Welsh Government’s proposition, particularly for the Valleys.
Welsh transport minister Edwina Hart said procuring an ‘integrated franchise and infrastructure provider’ could modernise the Valley Lines without the necessity of using Network Rail.
Sher added: ‘I think the fact that we are looking for procurement in the way we are has frightened the horses in some areas, because they’re going to have to come up with the goods to say how this would work. I think this is actually a challenge to the whole industry which I think is worth taking.’
