Peer review: Alex Hynes
Managing Director, Northern Rail
Anthony’s article highlights an important point - customer needs should indeed be at the heart of decision-making when it comes to rail. As an industry we provide a vital public service, one that should meet the requirements of its users. It is the question of how best to achieve this that is worthy of further debate and consideration.
As Anthony points out, it is not practical for all customers of any given franchise to be directly involved in specifying, letting and monitoring delivery of its operator - with so many competing requirements, it would simply be a case of ‘too many cooks’!
However, there are ways to ensure that customers’ voices and requirements are heard and acted on, and this needs to be captured at the very start of the franchise process - the specification of what to buy. It is government ministers who decide on this specification - MPs elected by the public to represent their views.
The second element for consideration is who to buy from - ultimately the responsibility of civil servants after evaluation of tenders. These are distinct stages, but the reality is that it is the start of this - the specification, not the chosen operator or winner of the competition - that will determine the success or otherwise of a rail franchise in meeting customer needs.
The Northern franchise is a prime example of the above, both in practice and the difference it can make. In the competition for the franchise that began in 2004, the specification was focused on maintenance and minimal spend, rather than growth or investment. Bidders submitted their tenders on this basis, and this set the constraints for the remainder of the franchise term.
Fast-forward ten years, and the competition for the next Northern franchise is under way and looking radically different. Before setting the specification for both the Northern Rail and TransPennine Express franchises, the DfT undertook a significant consultation exercise, encouraging all to take part (including customers and their representative groups).
The DfT received over 20,000 responses - the customer voice in action. It is this input, together with a broader recognition of the importance of rail in helping the economy of the region, that has created a franchise specification that will bring transformational change for customers, colleagues and stakeholders. The role of Rail North in future franchises can only help ensure greater representation for customers through local decision-making.
While past performance plays a role in the pre-qualification process, tenders will be judged on price and quality. London Overground shows what can be achieved through the right specification, how initial investment for customer benefit drives longer-term improvements, customer satisfaction and patronage.
Whichever bidder wins the competition, the operator of the next Northern franchise will be delivering new trains, better trains and more services when and where people need them most. They will be investing in better station facilities, driving innovation and working more closely with communities.
Should customer needs be placed at the part of this process? Yes. Does that require a wholescale change? No. It’s ensuring that the customer voice is heard at the beginning of the process, in helping to shape the specification of franchises through consultation, that will ensure the rail industry delivers what is needed.