Latest Rail News

28.09.16

Crossrail and HS2 part of ‘great opportunity’, Japanese investors told

Transport secretary Chris Grayling has promised the government’s continued support for HS2 and Crossrail during a trade tour to Japan.

Grayling attended the G7 Transport Ministers’ Summit in Karuizawa, Nagano on September 23-25, and also visited Tokyo to meet the city’s governor and Japanese transport and infrastructure investors.

Speaking at a reception at the British Embassy in Tokyo, he said that following the UK’s vote to leave the European Union, Britain wanted to “have a more global focus” and “strengthen ties” with trade partners like Japan.

“In total, our infrastructure programme to 2020 is worth over £100bn – and there will be lots more to come in the years that follow,” Grayling added. “That’s why Britain represents a great opportunity for Japanese firms.”

Clive Heaphy, HS2’s director of finance and operations, said in the past that he is “worried” about the long-term impact of the referendum on the high-speed rail project.

Significant figures including Lord Berkeley, the chair of the Rail Freight Group, and Sir Amyas Morse, the head of the National Audit Office, have also warned that there could be a shortage of funding for large-scale infrastructure projects, such as HS2, if the referendum leads to an economic downturn.

A recent report from the Public Accounts Committee said that HS2 has failed to provide a clear completion date for phase 1 of the project or a cost for phase 2.

Andrew Tyrie MP, chair of the Treasury Select Committee, has also written to Grayling saying that the government has failed to “comprehensively examine” the cost of HS2. Simon Kirby, the chief executive of the project, recently announced that he would be leaving the company to join Rolls Royce.

Despite this, Grayling told investors that work on building HS2 would start “next year” as planned. He also said that the Crossrail project would be complete in two years’ time, providing “a new, high capacity railway under London’s streets”.

(Image c. AP/Press Association Images)

Have you got a story to tell? Would you like to become an RTM columnist? If so, click here.

Comments

John Burns   29/09/2016 at 17:38

I can only see the Japanese wanting to supply the rolling stock. They do supply Hitachi trains to the UK. Investing in railway that few economists speak in positive tones of? Are the Japanese that stupid?

Ian   30/09/2016 at 16:37

I do find it odd that this amazing opportunity is being given such a hard sell by the UK government. Good business opportunities speak for themselves, and if it is so good for Britain, then why is it being pimped out at all? The more this goes on, the more it just looks like the UK Government is simply begging people to invest in us and no doubt, like Hinkley point, this will be at the harm to UK taxpayers.

Mikeb   30/09/2016 at 17:35

For some years, government ministers have been shuttling to and from Beijing in an attempt to persuade "cash-rich" Chinese businesses to invest in HS2 and other projects. Now, Japanese businessmen are also being targeted for the same purpose and I can therefore foresee a situation whereby HS2 might be built and operated by a consortium of Far East-led companies. It is a sad fact that British investors do not seem to have enough financial wherewithal to involve themselves in such large infrastructure projects and, to a great extent, we therefore have to rely totally upon inward investment in order to get things done.

John Jefkins   30/09/2016 at 18:57

Of course the Japanese are interested in investing or selling us trains to run on HS2. After all their own private high speed line Tokyo-Osaka line long paid back its costs from its PROFITS. John Burns is quite wrong about economists. Even the LSE economists quoted by StopHS2 say HS2 would boost the economy enough to earn around £1 billion extra tax per year (+ inflation) over its 100 year + life. That's £100b + inflation extra tax in addition to fare income, premium payments and other property rental income potential. And other economists estimated 6 times as much income. The key thing is to keep this profit in government hands. This will be a rather more profitable line than HS1 (as it links our 10 top cities rather than being just a cross border route). But like HS1 it needs to be long leased for increasingly huge rental fees over it's very long life. Those rental fees could repay construction costs in 25yrs and then repay them again (many times over) to the government owner. As with HS1, the government needs to retain the freehold.

Add your comment

 

related

rail technology magazine tv

more videos >

latest rail news

Government calls for companies to take part in 5G TransPennine pilot

20/08/2018Government calls for companies to take part in 5G TransPennine pilot

The government is inviting companies to take part in a new 5G project on the TransPennine Railway line between Leeds and Manchester. The Tra... more >
First upgraded ScotRail InterCity train arrives in Scotland, rollout completed by late 2019

20/08/2018First upgraded ScotRail InterCity train arrives in Scotland, rollout completed by late 2019

ScotRail’s first upgraded InterCity train has arrived in Scotland as part of the revamped High Speed Trains (HST) that will connect Scotlan... more >
Hitachi Class 802s to be put in operation following GWR press launch

20/08/2018Hitachi Class 802s to be put in operation following GWR press launch

Train operator Greater Western Railway (GWR) launched its new Hitachi Class 802 range on Friday, holding a media run from Penzance to Exeter to c... more >

editor's comment

23/01/2018Out with the old...

Despite a few disappointing policy announcements, especially for the electrification aficionados amongst us, 2017 was, like Darren Caplan writes on page 20, a year generally marked by positive news for the rail industry. We polished off the iconic Ordsall Chord (p32), hit some solid milestones on Thameslink (p40), progressed on ambitious rolling stock orders (p16), and finally started moving forward on HS2 (p14) ‒ paving the way for a New Ye... read more >

rail industry focus

View all News

interviews

Transforming travel in the north west

06/02/2018Transforming travel in the north west

RTM’s Josh Mines talks to Robin Davis, head of new trains at TransPennine Express (TPE), about the huge rolling stock change journey the co... more >
Thameslink: Nearing the end of the line

23/01/2018Thameslink: Nearing the end of the line

RTM’s Josh Mines catches up with Mark Somers, project director for Thameslink, on how the final stages of the programme are progressing and... more >
Modernising journeys in north east England

09/11/2017Modernising journeys in north east England

First Hull Trains is about to embark on the biggest fleet overhaul it has delivered since being set up in 2000. Managing director Will Dunnett te... more >

last word

Encouraging youngsters to be safe on the railway

Encouraging youngsters to be safe on the railway

This summer, Arriva Group's CrossCountry and the Scout Association joined to launch a new partnership to promote rail safety among young people. ... more > more last word articles >

'the sleepers' daily blog

A radical solution to the employment crisis

24/07/2018A radical solution to the employment crisis

Peter Cayless, founder and creative director at Working Eye, talks about an innovative solution to employment in the rail industry that might jus... more >
read more blog posts from 'the sleeper' >

comment

Passengers at the heart of Thameslink

31/07/2018Passengers at the heart of Thameslink

As Thameslink launches a new timetable, Richard Freeston-Clough, operations and communications officer at London TravelWatch, looks back at the w... more >
Customers want more rail freight

31/07/2018Customers want more rail freight

Philippa Edmunds, Freight on Rail manager at the Campaign for Better Transport, makes a socioeconomic case for continued investment not only in t... more >
Freight for the Borderlands' untapped potential

31/07/2018Freight for the Borderlands' untapped potential

John Stevenson, MP for Carlisle and the government’s Borderlands Deal Champion, discusses the untapped potential for growth in the Borderla... more >
British manufacturing in buoyant demand for steel

31/07/2018British manufacturing in buoyant demand for steel

Roger Neary, head of logistics sales at DB Cargo UK, discusses the rail freight company’s £6m expansion of its steel warehousing faci... more >