Latest Rail News

19.07.12

ORR to formalise plans for the Rail Delivery Group

The Office of Rail Regulation (ORR) has launched a consultation with the aim of formalising the Rail Delivery Group (RDG).

The RDG, formed in 2011 in response to Sir Roy McNulty’s Rail Value for Money Study, is currently composed of ten passenger and freight train operators, in addition to Network Rail. The main aim of the group is to provide leadership to the industry as a whole as it seeks to cut unit costs.

Calls for formalisation came from within the RDG itself. The group claimed that its voluntary basis was not sustainable and proposed that if a company limited by guarantee is created, then an “obligation will be placed on key industry players to participate”.

In response, the ORR has produced a consultation document inviting views on the formalisation of the RDG and the licence condition to facilitate this change.

The document reads: “The RDG, ORR, DfT and TransportScotlandrecognise that a more permanent form and constitution is need for it [the RDG] to lead the rail industry effectively and articulate a powerful and convincing voice on its behalf.”

The RDG has a range of specific goals on its agenda: providing technological innovation, better supply-chain management, reviewing and improving operational management, more practical cooperation with the Government and Technical Strategy Leadership Group, and participating in the production of the Initial Industry Plan and the Strategic Business Plan.

Tim O’Toole, chairman of the RDG, said: “The Government’s command paper expects the RDG to take a leadership role within the rail industry in order to drive efficiency and improve value for money for the passenger, freight customer and taxpayer. Formalising the group will reinforce RDG’s ability to fulfil this role.”

The ORR’s consultation paper can be found at:

www.rail-reg.gov.uk/server/show/ConWebDoc.10968

Tell us what you think – have your say below, or email us directly at opinion@railtechnologymagazine.com

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