Showing posts with label British transport. Show all posts
Showing posts with label British transport. Show all posts

04 October 2011

Infrastructure for Britain - an agenda for growth

One of the themes that all party conferences have suggested so far is that the government can help the economy by spending money on infrastructure.  Certainly the Conservatives believe they are doing that.  However, there are only two major ways government can help out in this sector, and the main reasons are because it is such a hindrance more often than not.

Firstly, it can get the hell out of the way of the private sector provision of infrastructure, by not negating its private property rights or stopping it from engaging in large, profitable projects.  The key areas the private sector gets involved in are energy, airports and telecommunications, but it should also be set free to put money into roads and railways (good luck with that, by the way). 

The second way is for it to invest in the infrastructure that it happens to own and run for now, but transition that infrastructure to commercial then private ownership.  What this means is roads and railways, but could arguably even stretch into health and education (though these are so far removed from being commercial as of yet, I'll ignore that for now).

Energy

In energy, the key intervention is the effective "tax" on electricity bills imposed by electricity retailers to pay for the compulsory "sustainable" generation of electricity, at prices far in excess of efficient forms of generation. The motive behind this policy was to chase the ghost of climate change (every new Chinese coal fired power station more than destroys the reduction in CO2 by this measure) and to pursue the illusion of industrial policy.  The latter is more effectively pursued by lowering corporation tax to a level competitive with all of Europe (15%), the former shouldn't be pursued at all.   The "sustainability" agenda is costing British businesses and households, it makes electricity more expensive in the UK than it need be, and diverts investment in power generation from economically efficient (and largely environmentally friendly) sources to more ephemeral, expensive and lower capacity ones.   Modern gas and coal fired power stations produce virtually no deterioration in local air quality.  It is time to truly deregulate the energy sector.

Little need be said about the other intervention in energy, which is the absurd "windfall" tax on oil and gas exploration.  Politics winning out over economics, and jobs.  Why would Britain ever want to deter oil and gas exploration while existing North Sea fields are in decline?

Telecommunications

The key intervention here is the heavy handed regulation of OfCom which regulates, bizarrely, a mobile phone market that is vibrant with competition, and continues to intervene in the supply of telecommunications infrastructure to an extent that hinders facilities based competition.  Why should there not be competing broadband networks being developed to homes?  Why should BT's investment be forced to be shared with others?  The legacy of the twisted copper network should be all that remains as a mandatory, regulated priced shared facility - because that was the deal with privatisation.   Beyond that, the role for Ofcom is difficult to see in this sector.  It is time for a bottom up review of whether heavy handed telecommunications regulation still makes sense.

Airports

No infrastructure sector is suffering from a blindness of economic analysis or vision than this one.  With all three major parties effectively stifling growth of airports around London, you would have to assume they all think that it is time that British Airways and Virgin Atlantic simply never grew again, and that the future for air travel from Britain is based on people flying to the growing hubs of Charles de Gaulle, Schiphol, Frankfurt and Munich airports, and to fly on Air France/KLM and Lufthansa, or better yet fly from regional airports to hubs in Doha, Abu Dhabi and Dubai, on airlines owned by authoritarian misogynistic oil-rich plutarchies.   For that is the future guaranteed by the Conservatives and the Liberal Democrats.

Heathrow, Gatwick and Stansted could all be expanded, today, with private money.  For a government willing to run roughshod over NIMBYs in building its own taxpayer funded totem - HS2 - to kowtow to NIMBYs in rural Essex, west London and west Sussex is hypocritical and economic lunacy.   The arguments against it on climate change grounds are again nonsensical in the context of new airports springing up in China, and the expansion of Heathrow's competing hubs in continental Europe.  Why should European (and Middle Eastern) airlines gain such capacity, but British ones not? 

Stansted is the easiest to expand, the land is held by BAA, the transport links to it are good, and it would facilitate a transfer of some low-cost airline traffic from Gatwick.  There is no sound reason to continue to restrict capacity there. 

Gatwick suffers from 32 year old planning decision to not build a second runway before 2019.  Given the lead times for such projects, it should be made clear that this will be supported.  Gatwick is a mini hub for BA and Virgin Atlantic, and is useful for leisure routes short and long haul, that are less suited to Heathrow, as well as servicing the southeast.

However, it is Heathrow where the need is greatest.  Unless the government were to treat a new Thames Estuary Airport as a grand project (which would have to be part funded by property development at the current Heathrow site and a tax on the property value gains for those on Heathrow flight paths), Heathrow is Britain's international hub airport.  Transit traffic does benefit Britain, enormously, because it makes routes to destinations that would otherwise be marginal, profitable, by feeding in passengers from North America and Europe. A third runway would alleviate the chronic delays in both takeoffs and landings that waste fuel, time and increase pollution.   However, most of all it would allow Britain's premium airlines to grow, to add more routes, more frequencies and compete with Air France/KLM, the Lufthansa group, Emirates, Etihad, Qatar Airways, United Airlines and others.  It would generate employment not only from construction, but in airlines and the airport itself, but more importantly by lowering the cost of travel and freight for British based businesses and residents.

Let's not continue the lie that high speed rail, which wouldn't be finished for 15 years, would make any meaningful difference, given 96% of flights at Heathrow are not on routes serviceable by domestic rail services.  Let's also admit that the business case for Crossrail was partly based on providing better connections between Heathrow and the City, Canary Wharf and east London.

Railways

The one sector where private investment is almost certainly unlikely to be seen on any great scale, is in rail infrastructure.  With the network not well priced, it should be getting run on a commercial basis so that the franchisees of the future pay demand based prices for scarce slots.  Expansion of the West Coast Main Line should be funded not by taxpayers, but by Network Rail borrowing against future revenues.  High speed rail should be considered on the same basis, but it wont be - because it would never be built.  The government is taking steps to correct the excessive subsidies in this sector, but it should be considered, along with reforms of the roads sector, for commercialisation.
Roads

There will be a handful of opportunities for the private sector to develop new toll roads (e.g. another Dartford Crossing), and it should be set free not only to respond to government proposals,  but to generate its own.  If a company wants to build a new London south circular, why shouldn't it feel free to plan a route, buy land, build and toll it - for example.
However, there needs to be a more fundamental change.  In France, Spain, Italy, Portugal, Japan, Taiwan and China, major highways are frequently privately owned.  In the UK, the motorway network should be sold, and local authorities required to put local roads into commercial structures.   Roads should be funded through borrowing, paid back through tolls, or (for now) fuel tax revenue.  Given motorists pay five times as much in motoring taxes as they get in government spending, arguments about the private sector ripping off motorists are derisive.  Then let the privately owned networks contract directly with motorists, who could choose to pay tolls or pay fuel tax, and watch there be enough funding for road maintenance and improvements - whilst introducing road pricing in a non-intrusive, cost-effective and low risk way. 

Furthermore, there needs to be a culture change that rejects the failed 13 year policy of allowing road projects to be cancelled, and the land acquired for them sold - which has destroyed opportunities for improved corridors in London.   The answer to traffic congestion is not to stop improving roads for fear it will generate traffic, but to improve pricing (toll new capacity).  In that light, Transport for London should start developing a strategy on capacity of London's arterial road network, instead of considering the network as static.

Conclusion

Sadly, this government has shown little real interest in being revolutionary on infrastructure.  Energy and telecommunications policies are largely a continuity of the previous administration.  Airports policy is anti-growth and says the government has little real interest in the growth of that sector, other than for regional airports being served by foreign carriers.   Railways policy has some promise, but is overshadowed by the ridiculous totem of HS2 - a project to provide massive subsidies to business people based in London travelling to the north, which wont deliver most of what is promised.  Roads policy shows a little promise, but needs radical governance reform, which is seen by the almost Soviet-era handling of maintenance.
It is time to get government out of the way of infrastructure investors, and to stop crowding them out.  Furthermore, it is likely to destroy wealth through projects such as HS2 and the fascination with inefficient energy generation sources.  It should allow more airport capacity around London, it should move rail investment onto a longer term, commercial basis, and should shift the road network onto a commercial basis as well.  Now is the time to be brave.

11 November 2010

Privatisation reveals high speed rail is a dud

For the Blair Government, building a high speed railway from the private built, funded and owned Channel Tunnel was a matter of national pride.  The "business case" was questionable, with a benefit/cost ratio of less than 1, propped up by estimates of "regeneration" impacts at Ashford (which have by and large failed to come about).   However it was about Britain have a high speed railway because France had one at the other end (and Belgium too).   The support for a high speed railway was driven by emotion, because the economic (and the monetised environmental) case was not driven by reason.

The main beneficiaries of the line are not freight users (freight trains don't operate at high speeds, and the lines bypassed were not near capacity), nor those who move road vehicles by shuttle through the Channel Tunnel, but travellers on the Eurostar international service.   Many of them are business people who otherwise would have travelled by air, leisure travellers are not so time sensitive so would largely have gone by rail anyway. 

Why does it matter now?  Well the Conservative-Lib Dem coalition government has privatised it.

Yes amazingly coalition government in the UK, (which includes a party that has been solidly leftwing for some years)  is not shy about privatisation.  It doesn't upset the government that railway unions are upset about it, because most people don't care.   

It was bought by foreigners.  Yes!  A foreign consortium dominated by two Canadian pension funds is paying £2.1 billion for a 30 year lease on the rail line from St. Pancras to the Eurotunnel railyard near the tunnel entrance.  If you believed socialists you'd think that it will result in the asset being run into the ground, services deteriorating and becoming too expensive, in actuality the expectation is that there will be more services, as new train operators are expected to be allowed to use the line.

Yet the real tale is what an atrocious "investment" this line was in the first place.  You see the line cost £5.8 billion in the first place.   Taxpayers' money (well borrowed on their behalf).   A 63% write down on the initial investment.   Yes, it can be leased out again, but in 30 years the interest on that write down value is more than double the sale price.

So yes, the first high speed railway in the UK was a deadweight loss, a destruction of wealth for the British economy.   Even a bid that goes beyond expectations shows that the new owners can't even expect to recover half of the capital cost from train companies.  

So you might wonder if that was such a dud "investment" then why is this deficit cutting government so keen to pour money into another one that wont even come close to covering its costs from users?   More grandstanding, national pride and totem building.

Of course if it's lousy for Britain, it is many times more lousy for the USA.

26 October 2010

How can we cycle without a quango?

One of the numerous QUANGOs to be abolished by the Con-Dem government as part of its programme to cut government spending to the levels of around 4 years ago is "Cycling England".  This entity had a budget of £5 million in 2005 which has now ballooned elephant like to £60 million this year ("oh but the deficit is due to bankers" cry the wilfully blind on the left).   Quite why it needed a 1200% budget increase at a time of deficits is astonishing, and even with its abolition this funding wont disappear.

What is the response of the Green Party of England and Wales?  Hysteria

"A big question mark now hangs over the future of cycling" says Green Party representative Ian Davey (a city councillor in Brighton, not an MP).

Really Ian?  Does cycling need a government agency spending vast amounts of other people's money?  Do people not buy bicycles unless bureaucrats are paid to promote it?  Will people stop biking because Cycling England no longer exists?

What sort of hysterical hyperbole is this?  The type that states that if anything good exists, it can't survive without the government spending other people's money on it.

Now I am not saying that cycling isn't good, in fact the measure about whether it is good is up to the individual.   Some find it a lot of fun, it keeps them fit etc.  Others are uninterested.  That's ok. 
However there IS a solution for those who promote cycling.   They can keep Cycling England or reconstitute it through (take a deep breath, the concept I am about to describe bamboozles statists) their own efforts and their own money.

Yes, remarkable though it may be to those on the left, but you don't need the government to make things happen in your community.

I'll try it another way - "take the energy you put into placards, marching and generally being a nuisance to peaceful citizens going about their business, and use it to help do what you like Cycling England doing".

You see the government doesn't get enough money, from already high taxes, to pay for everything you want.  Which means you're going to have to pay for some things you like yourself.  

Oh and if you don't, cycling isn't going to end.  For the same reason that there isn't an organisation called Blogging England to help fund this activity.

22 September 2010

Take a drive on World Car Free Day

Why?  Because cars are NOT bad.

They have offered enormous choice about where people can live and work and play.  They offer privacy, comfort and flexibility.

Competitive Enterprise Institute spokesman Sam Kazman said:

"The automobile has improved the lives of hundreds of millions of people in remarkable ways. It has taken the mobility once reserved for aristocrats and democratized it, immensely expanding the choices that average people have regarding where to live and work. Instead of pushing a misguided political agenda to reduce car use, we should be celebrating automobility"

The hatred for the car ignores that on a per passenger km basis, the number of deaths and injuries from cars keeps declining, that the fuel consumption of cars keeps improving, and the pollution from cars reducing.   Transport for London estimates that emissions from road transport will drop 30% by 2030 if it simply does nothing because of improved efficiency of engines.

The main problem which has cars as the symptom is traffic congestion caused by the ineptness of governments who run them as a commons, without proper pricing and without any concern for delivering a service to customers. 

The incredible growth in car ownership in China and India is not because people there are stupid, but because they want to have access to travel when and where they want to and carry their belongings easily.   It goes against the wide eyed certainty of planners who think they know best how to organise cities and how people move, but the simple truth is that cars bring good, and the growth in car usage will continue regardless of how cars are fueled.  Indeed regardless of the ways that planners find to tax and penalise car use (although thankfully all fuel tax in New Zealand now goes on land transport spending, which is 85% roads).

The car is one of the most liberating technologies the world has ever seen according to Loren Lomasky.
 He comments on why cars and roads are so well used:

In the end, highways are so heavily used because millions of people judge that driving enhances their lives. The striking feature of the critique of highway building programs is that what should be taken as a sign of great success is instead presented as a mark of failure. But the only failure has been with the critics’ attempts to talk people out of their cars and out of the neighborhoods and workplaces that their cars have rendered accessible. This failure is well-deserved. Automobile motoring is good because people wish to engage in it, and they wish to engage in it because it is inherently good.

If only politicians (and voters) would surrender roads from state control, and let them be run commercially by the private sector, like every other utility shown to be far more dynamic outside state control (e.g. telecommunications, aviation, electricity).

13 May 2010

Con-Dem anti-reason anti-business coalition

Well it's out, the Conservative-Liberal Democrat coalition has shown its true colours, and they are colours of a red and green coloured wolf in the sheep's clothing of Cameron and Clegg. The new government is no more friendly to capitalism and to reason than the last one.

The coalition agreement now published gives the impression of being pro-business, and the impression of dealing with the budget deficit, but it commits to a vast range of new spending measures, and to interfere with private businesses on a grand scale in multiple sectors.

The envy-touting, dependency supporting left should be relieved, and the Greens thrilled.

Take the following:

- "The parties agree that funding for the NHS should increase in real terms in each year of the Parliament, while recognising the impact this decision would have on other departments. The target of spending 0.7% of GNI on overseas aid will also remain in place." Yes, the NHS, subject already to record spending increases in the past, can continue to extract ever greater inefficiencies, and not be accountable for it. Meanwhile, the British taxpayer will have to mortgage to continue increasing state aid to developing kleptocracies.

- "We will restore the earnings link for the basic state pension from April 2011 with a “triple guarantee” that pensions are raised by the higher of earnings, prices or 2.5%, as proposed by the Liberal Democrats" So the retired wont have to face any austerity, just their children and grandchildren. Why? Well given they voted for profligate governments in the past you might well ask.

- "We further agree to seek a detailed agreement on taxing non-business capital gains at rates similar or close to those applied to income, with generous exemptions for entrepreneurial business activities" No income tax wont be coming down, it is about increasing capital gains tax. Yes, if you get capital gains for your OWN profit, not for "business" then screw you, Clammyegg wants your money.

- "We agree that a banking levy will be introduced. We will seek a detailed agreement on implementation.. We agree to bring forward detailed proposals for robust action to tackle unacceptable bonuses in the financial services sector" Why? Well let's tax one of the country's most successful service sectors, never mind which banks never needed a bailout and those that did. Oh and let's deter the most successful people in the sector being tax resident in the UK, to please the envy ridden proletariat. So it's off to Switzerland for that lot then?

- "We have agreed that there should be an annual limit on the number of non-EU economic migrants admitted into the UK to live and work" Don't worry, you'll not be attracting the best and brightest anyway, they'll be leaving. Nice sop to the BNP though.

- Finally, taxpayers will prop up a massive programme of Green fetishes and an effective end to growth in the British aviation sector including "The creation of a green investment bank" (quite where the money comes from is irrelevant), "Measures to encourage marine energy" (again, whose money?), "The establishment of a high-speed rail network" (ah the grand show off project that has next to no positive environmental impact), " The cancellation of the third runway at Heathrow. The refusal of additional runways at Gatwick and Stansted" (privately owned airports and the airline industry can go to hell, less competition for European airports and airlines), "Mandating a national recharging network for electric and plug-in hybrid vehicles" (with whose money?).

So that's it. More spending, more taxes, more regulation of the current crop of hated businesses (banking and aviation), and worshipping at the totem of environmental fetishes regardless of cost and benefit.

No reason behind most of it, and a distinctly anti-business agenda particularly if you are in finance or aviation.

Anything for freedom? Well, besides scrapping ID cards, ending the storage of internet and email records without "good reason", and something called a "Freedom Bill", there isn't much. Free schools, paid for by taxpayers maybe, and talk of some tax cuts (which don't offset tax increases of course).

Anyone who voted Conservative expecting less government, less interference in business and a more reason based view of policy should be sorely disappointed. When the Treasury briefs the new government on the fiscal debacle, it will become clear how little of this can be afforded, and so it will be a lie, taxes will go up dramatically, other spending will be slashed substantially or a conbination of it all. Furthermore, with a new agenda of faith based Green initiatives, reason appears to be distinctly absent from this administration. The government wont be shrinking.

Fortunately I didn't vote Conservative.

04 May 2010

UK elections: How about transport then?

I am not driven by transport policy in voting in the UK, because it isn’t that important. Good job, given how absolutely devoid of reason all three main parties their transport policies are.

How?

Labour has announced it wants to spend money, that it doesn’t have, on a high speed rail network. A network that will have a HIGHER environmental impact that the existing rail network, that will mostly attract users from existing rail services, and which would only affect domestic flights if built to Scotland for tens of billions of pounds. Note domestic flights are completely unsubsidised. This new cargo cult will mostly benefit business travellers, to an enormous cost to taxpayers. The Liberal Democrats and Tories say ME TOO! So unsurprisingly, it is easy to be cynical of politicians seeking totems for themselves. By the way, the Channel Tunnel was built, operated (and went bankrupt) with no taxpayer funding.

Labour also promises to spend more money it doesn’t have on upgrading railways, whilst maintaining a meagre programme for road expansion while it collects four times the revenue from road users as it spends on roads. The only bright side is support for a third runway at Heathrow airport, but a ban on any other airport runways being built.

Liberal Democrats are worse, with a religious opposition to road improvements, and a fetish for reopening rail lines paid for by money that doesn’t exist. The Liberal Democrats oppose airport expansion and want road pricing (which is economically rational, but not to pay for roads!). The Conservatives oppose airport expansion as well, and don’t want road pricing, except for foreign lorries. Disappointing given how the Conservatives once privatised rail (not particularly well), aviation, buses and road freight (yes the government ran a trucking company!).

So basically, don’t bother, nothing to see here. Not the slightest chance of embracing economically rational policies, so that transport users meet the costs of what they use, and for the state owned or managed infrastructure to be run to maximise efficiency. No, just continued socialism rubbing up against capitalism, with a strong taint of environmental theology.

12 October 2009

Gordon can do it, but John?

Pause for a moment, I am going to praise Gordon Brown.

You see he's about to announce a privatisation programme. Yes you read right. Privatisation, eight months out from an election. It is worth around £3 billion of assets in the first phase, but up to £16 billion overall.

What sort of assets? Well it isn't just surplus pockets of land. It include the sort of assets juveniles would call "strategic":
- Channel Tunnel Rail Link (Folkestone to St Pancras);
- Dartford Crossing (the eight lanes of highway crossing the Thames that completes the M25 ring);
- its stake in Urenco (nuclear fuel enrichment company);
- a third of the debt in student loans;
- The Tote (government owned bookmaker).

So yes, you can privatise a road, a major one at that, which has no serious alternative routes for many miles.

The reaction of the other parties? Would that play this against Brown? Well no:
- The Guardian reported a Conservative Party spokesman saying "Given the state the country is in is probably necessary but it is no substitute for a long-term plan to get the country to live within its means";
- Liberal Democrat Treasury Spokesman Vince Cable said "Given the state of the public finances, asset sales, at least in principle, make sense" but he expressed concern about selling land in a depressed market and how badly the government was in getting value from its privatisations.

So in other words all three main political parties support privatisation.

However in New Zealand it can't be so. National ruled it out to get elected, Labour was the nationaliser extraordinaire, and only ACT of the parties in Parliament warms to privatisation (and even then not too loudly).

Now the UK government could sell much more than that list, but the nature of what is on the list is what is positive. Particularly, given my interests, the Dartford Crossing. It's a tolled crossing comprising two 2-lane tunnels for northbound traffic, and a 4-lane bridge southbound, and it is heavily congested (with plans proposed for an additional crossing). Selling it and letting the private sector choose the best way to expand it will demonstrate to the naysayers who think roads can't be privatised.

Imagine, for example, Auckland's Harbour Bridge and approaches privatised (and tolled) so that another crossing could be financed and built.

However we know it wont happen, for now, but it would be nice if the debate could be had without ghosts of Winston Peters and Jim Anderton taking things to the level of the banal ("but it's strategic, what happens if they want to sell it for scrap").

The New Zealand Government has a whole portfolio of SOEs that could and should be sold, easily, without even going near roads, schools, hospitals or dare I say Kiwirail. There is no good reason why Genesis, Meridian and Mighty River Power are in state hands, when Contact and Trustpower are private sector competitors, and most people don't know whether their power company is private or state owned.

It's time to talk about privatisation - if it isn't controversial in the UK, with its plethora of nanny state quangoes and laws, why so in New Zealand?

06 October 2009

Who really wants to be car free?

The Duke of Wellington famously loathed railways because he said it would "only encourage the common people to move about needlessly". Sam Kazman of the Competitive Enterprise Institute notes the comment by Prince Charles, himself the owner of six vehicles, on a similar vein. He believed one should be "elevating the pedestrian above the car". I like underpasses too, but he didn't mean that. He certainly didn't mean it for himself.

What is always missing from the anti-car language of the environmentalist movement (and a more peculiar "public transport religion") is the value people attach to having a car. It is so often portrayed as "car addiction" or "car dependent", but the counterfactual put forward, a fanciful notion that everyone was "better off" without cars doesn't bear close examination.

Put it this way. If you live in a modern new world city, consider the locations of jobs you can access with public transport conveniently, and those you can drive to within a reasonable time. The liberating influence of the car is dismissed by the doomsayers, as is the trend of those in China and India seeking to buy cars - as if it is some whim of the ephemeral.

"Living car-free may be fine for many people during some phases of their lives, and it may be fine for some people for all of their lives, but it’s no way for most of us to live — regardless of what Prince Charles and his fellow aristocrats may think" says Sam, and he's right.

03 September 2009

Success of UK rail privatisation

Half hearted though it has been, as Network Rail, the private infrastructure owner, has been operating in recent years under government guarantee (and subsidies remain ridiculously high for some franchises), this article in the Daily Telegraph notes two of the successes of the UK's privatised railway operations:

- 60% more passengers than when British Rail ran everything, with higher patronage than at any time under state ownership (since 1948);
- Highest reliability since statistics have been taken.

In other words, people prefer privately run railways and they are taking people to where they want to go more reliably than the state owned one.

By contrast, very well paid RMT (rail union) head Bob Crow decries privatisation, because the rail companies make money, and because poor contractual accountability led to failures causing an accident some years ago. Apparently he hates the train companies making money, yet while they do so, they carry more people than ever before.

Methinks of course if rail passengers had to pay the real cost of services (which on some routes like rural Scottish and Welsh services, the West Coast Main Line and some commuter services), patronage wouldn't be so high, nor would overcrowding, but patronage is also due to the chronic profiteering of the UK government from fuel tax. Fuel tax went up 2p/l on 1 September, with it now being 5x the amount spent on roads in the UK. Imagine any other network utility that would be allowed to charge its customers 500% over its operating costs and investment. However, in the UK it is called the government. Perhaps if expenditure on roads more closely matched revenue collected from them, and rail fares matched cost, it may be a different story.

New Zealand motorists can at least take heart that all motoring tax money is at least spent on transport, even if 14% is spent on public transport, walking, cycling, sea and rail freight, and encouraging you to not drive at all. In the UK it is 80% spent on railways, social welfare, the NHS, schools, prisons, defence and debt servicing.

28 August 2009

High speed rail not environmentally friendly

It's curious that the government backed private company that runs Britain's rail infrastructure - Network Rail - is promoting an extremely grand plan to make taxpayers pay for a high speed rail line from London to Edinburgh. £34 billion is the cost of a line from London to Birmingham, Manchester, Liverpool, Glasgow and Edinburgh. It would cut travel time from London to Edinburgh by rail to 2 hours 9 minutes.

See according to the Guardian, a consultancy report 2 years ago said there would be similar CO2 emissions from building and operating a high speed railway between London and Manchester as there would be to fly the route. The difference being that aviation on the route needs no subsidy. It would be better to improve capacity on the existing line through removing bottlenecks and improved signalling.

So the environmental advantages are at best dubious, and the economic costs are enormous. A massive transfer from taxpayers to business users of trains.

If there is congestion on the current rail network, that simply means fares are too low at busy times, so they should be raised so overcrowding can be reduced and revenue raised to put in extra capacity as it is needed. New lines when existing lines have ample capacity most of the day are unlikely to be particularly a good choice.

Of course the fetish for the moment is that flying is evil, as is driving, despite people continuing to choose those options. The truth is flying is largely a commercially run private business. Road transport involves privately provided vehicles paying excessive taxes to use roads managed bureaucratically. Railways involve a mix of commercial and subsidised services on subsidised tracks. Maybe of the highways were privatised, and charged commercial tolls reflecting demand, the excuses to subsidise railways would start to evaporate?

Call to privatise UK motorways

Yes, the RAC Foundation has suggested that the English Highways Agency be privatised, which would raise as much as £85 billion, as a way of both improving road management and providing a hefty injection of funds to help repay public debt.

I wouldn't care whether individual motorways are sold, or the whole network, but it could make an enormous difference. The key though, is how it would be paid for.

You see British motorists pay fuel tax and annual vehicle ownership taxes (road tax), and none of the money is dedicated to roads. Of that revenue raised, only a quarter of that amount is spent on roads, almost as much as railways. So a key first step would be to dedicate a portion of that tax to the privatised road companies, who would get money on a per vehicle km basis. Then the company could raise tolls to replace such taxes, moving people towards user pays.

Of course it still leaves local authority roads, but they could be the next step.

Professor Stephen Glaister made this presentation about how poorly transport policy in the UK responds to the road sector.

Sadly most respondents to this issue on the Daily Telegraph website are more friends of Marx than the market. Whinging about the roads and how they are managed, but terrified of the market providing solutions.

13 August 2009

Privatisation improved train reliability in UK

Yes, this is according to a BBC report.

"According to Hassard Stacpoole, media relations manager for the Association of Train Operating Companies, the value of improvements to punctuality is greater because the network is getting more crowded.

He said: "You will find that we are running 20%-plus more trains than we were under British Rail, in what is a busier network.

"Overall we would say punctuality is much better than even under BR. We have one of the most punctual railways in Europe.


So the doomsayers are wrong, railways in Britain are carrying more people than they have for over 50 years, and more reliably.

"Mr Stacpoole adds that commercial incentives, which did not exist under the nationalised BR system, work as a safeguard to improvements.

"If the trains are not going to run on time that's going to cost you money. Network Rail will have to compensate the operators or vice-versa (depending on who is at fault).

"There's an incentive to get things right. People expect their trains to run on time.
"

You see if it is the fault of the track owner (Network Rail) the train operator, which pays to use the track, gets compensated. If the train operator is late in using its slot, then it pays more to use it later, as others are disadvantaged by the change.

Now there remains mistakes, massive subsidisation of major infrastructure projects that should have been financed directly. Political subsidisation of uneconomic lines and projects, but by and large, it has been a success going this far. Another loony leftwing legend about "good old British Rail" (which closed more railway lines than private railways ever did) is blown away by the facts.

16 January 2009

3rd runway at Heathrow and watch the luddites crow


The announcement by UK Transport Secretary (Minister) Geoff Hoon that the government supports a third runway at London’s Heathrow Airport is bizarre on a couple of levels. Firstly, it is quite bizarre that government should have anything to do with it. Heathrow is privately owned, its owner – BAA – is not seeking taxpayer funds to pay for the runway. If property rights are properly defined it should be a matter of negotiation between BAA and relevant property owners. However, that is by the by – and a symptom of a bigger problem, that the UK is strangled by process and consultation over matters that shouldn’t be the business of those who are not directly affected.

It is luddite Britain on a grand scale, a culture that worships stagnation, that rides on the religious fervour of the eco-evangelists, and is an orgiastic frenzy of “do as we say” crowd, eager to impose their planning fetish on everyone else. It’s frightening, and shows how hard it is to make real progress in the UK, when half the country is obsessed with standing still and telling others what to do.

The logic to a third runway at Heathrow is straightforward. It makes commercial sense, because Heathrow has virtually no spare runway capacity, is the only major hub airport in the UK, has the highest number of international passengers of any airport in the world, and is by far the most preferred airport for business traffic. In short, it is a profitable, highly desirable operation with scope for significant growth. If you've spent half an hour in the air circling in a stack waiting to land at Heathrow (great for the environment that), or on the ground in a take off queue, you might appreciate how constrained Heathrow is, especially since Terminal 5 has relieved the overcrowding at Terminals 1 and 4, and is (finally) a world class airport terminal experience.

Many countries and cities would love to have an infrastructure asset so sought after, profitable and capable of growth as Heathrow. However, no. In the UK, such opportunities are to be stamped on by various crowds. One group I can understand, the NIMBYs who are affected because they live nearby or in the flightpath. They are likely to experience more noise due to more flights, although with a landing and a takeoff on average every 2 minutes from 7am to 11pm, you wonder how they would notice (especially as airliner engine noise has dropped significantly in the last 20 years)/

The rest have jumped on an environmental bandwagon. The idea that if Heathrow gets a third runway it will accelerate climate change, rather than mean transit traffic shifts to airports at Paris, Amsterdam, Frankfurt and Dubai (which of course makes no difference to the environment). All those airports have between three and five runways and plenty of capacity, but apparently it’s ok if continental Europeans or Arabs have airports that can grow, the British want to deny it to themselves. It’s madness, and if Heathrow is constrained it constrains jobs for the airport, but also the three airlines that hub there – BA, BMI and Virgin Atlantic.

Moreso, those opposing it make petty fascist comments like “people should catch trains anyway”, ignoring that less than 5% of trips from Heathrow are those travelling within the UK or to locations in Europe quickly accessible by train. With New York by far the most popular international destination from Heathrow, it is a bit far fetched to imagine how those travellers should go by rail. Oh and Dublin is second, but the luddites probably think a train and a ferry ride is justified.

You see the other line they take is that so many flights aren’t “necessary”, because, of course, they know best for others. How dare people be tourists or business people travelling when they see advantage in doing so, when the armchair planners have decided that there should be no more flying.

One suggestion is that flights should be “redistributed” to Birmingham, Leeds and Manchester, presumably because if you can’t change mode, you should change destination. If you live in London and want to fly to New York, why not get a train to Leeds first.

The same people who make these suggestions no doubt come from a range of walks of life. There are the idle rich like Zac Goldsmith, who couldn’t care less if rationing air travel puts up prices so those poorer than he can take holidays less frequently. There are the retired planners and bureaucrats who miss the days of large government bureaucracies planning everything. All in all busybodies who think they know best how to spend other people’s money, use their businesses and how they should move about.

They treat aviation as some sort of bringer of doom and destruction. The same doom merchants who killed success for Concorde by getting the US Federal Government to ban supersonic overflight of the USA, which India followed. If these people were alive a century ago, you can expect them warning that aviation should be banned because planes will occasionally crash on the ground, risking lives.

If the 3rd runway is stopped (and assuming Boris Johnson’s idea of a super airport island built in the Thames Estuary is not commercially viable), then it will increase the reputation of the UK as a community of stagnation worshipping school prefects, that don’t like change, that worship the latest altar of “don’t build anything because it wont be the same when it’s done” and see the jobs, businesses and investment of others as something they have to have some sort of quasi-fascist interest in. Hopefully the Conservative Party opposition is just grandstanding to get elected, as I am sure the public service will see them right, because not growing Heathrow means not growing BA, Virgin Atlantic or BMI, and it increases the costs for freight and passengers not only into London but all of the UK. No other UK airport (besides the small London City), has a smidgeon of the high value premium traffic that Heathrow does – only a coalition of the envirovangelists, luddite left and rich idiots who have no interest in economic growth can halt this.

So next time you see a Tory or Conservative MP, or indeed any self-proclaimed environmentalist at Heathrow catching a flight, you might care to ask them about their hypocrisy, or why they aren’t catching a train to fly out of Amsterdam or Paris instead!

15 September 2008

Branson runs to the government again

Self styled entrepreneurial gadabout, Sir Richard Branson, is running to nanny state wanting to seek protection for part of his multi million pound business empire. This time it is Virgin Atlantic Airways he wants to protect.

You see, British Airways, American Airlines and Spanish carrier Iberia are seeking anti-trust immunity in order to co-ordinate and operate as one across the Atlantic and within Europe and the USA. This would enable them to co-ordinate, schedules, fares and routes. The absurdity that frequent flyers belonging to BA and American (both members of the OneWorld alliance) can't earn frequent flyer points on the other airlines services across the Atlantic would be removed.

The three carriers (along with Finnair and a couple of other small OneWorld alliance carriers in the northern) want to integrate so that BA can sell a ticket including a domestic connection using AA in the US, and AA can do the same with a BA connection.

The Atlantic is one of the most competitive air corridors in the world, with 42 airlines flying between the EU and the USA, and it being an open market on international routes for airlines from either market. AA/BA and Iberia have 21% of the market share at the moment, although between the UK and the US it is around 44%, and London-New York 52%.

Other airline alliances already have this anti-trust immunity. Star Alliance, which Trans Atlantic means United, Lufthansa, US Airways, BMI, SAS, TAP, Austrian and Swiss, has 35% of the traffic Trans Atlantic. Skyteam, comprising Air France/KLM and Delta/Northwest, has 28% of the market.

However, Branson cries foul. He claims it will create a "monopoly" which of course it wont. He's making it up, playing his favourite role of the hard done by little guy, who only wants what's best for himself consumers. You see Virgin Atlantic isn't in any of the alliances. It does do codesharing and co-ordinates closely with BMI and Continental Airlines. However, out of the nine airlines flying between Heathrow and the US, Virgin Atlantic has the second largest operation.

He complains that it would put 51% of landing slots at Heathrow in the hands of one conglomeration. Hardly a monopoly, especially since Skyteam holds 73% of the slots at Paris Charles de Gaulle and 85% at Amsterdam Schiphol, while Star Alliance carriers hold 80% of Frankfurt. All BA, AA and Iberia want is the same as its competitors - Branson is moaning because his airline is independent and he doesn't like competing. You see, unlike BA, Virgin has no flights within Europe - so no wonder BA is bigger, Virgin doesn't even operate in competition with it on many of its routes.

However, the best response to Branson is the one I saw from Willie Walsh -BA's CEO - in the Daily Telegraph on Friday.

"He knows a good deal about monopolies. With help from taxpayers, he has run a real one on fast trains between London and Manchester since 1997. And now he is talking about establishing another one by taking over Gatwick airport."

Yes, Virgin Trains has a monopoly on passenger rail services between London and Manchester, it has done this with millions of pounds of subsidies - that's real entrepreneurship isn't it? Branson says he wants to buy Gatwick airport, from which BA and AA both operate very few Trans Atlantic services.

So go on "beardie", compete. You did well earlier this year when BA's troubles at Terminal 5 coincided with the opening of a major upgrade to your part of Terminal 3 at Heathrow. You could tie up closer with BMI. In other words, you could compete your way to success, not moan to the government.

For all that, I'm giving your airline another shot in a couple of months time - Heathrow to New York. I hope it's better than last time!

15 August 2008

Branson the whinging entrepreneur

I have before said that Sir Richard Branson or "Beardie" as Jeremy Clarkson likes to call him, is far more about style than substance. One need only see his latest bleatings to show how little of a true entrepreneur he really is.

British Airways, American Airlines and Iberia (and to a lesser extent Finnair and Royal Jordanian) are all seeking immunity from competition authorities in the EU and USA to allow them to codeshare and more closely integrate their networks. Hardly surprising with high jetfuel prices, intense competition between and within Europe and North America, and as all three are in the OneWorld alliance.

Skyteam alliance airlines Air France/KLM (which has by far the plurality of slots at both Paris Charles de Gaule and Amsterdam Schiphol airports) already have this with partner airlines Northwest and Delta, as do Star Alliance airlines Lufthansa and United. Lufthansa has dominance in airport slots at both Frankfurt and Munich.

Beardie is upset because BA has 42% of slots at Heathrow, and American around 6%. He said "If this monster monopoly is approved it will be third time unlucky for consumers. It will still be bad for passengers, bad for competition, and bad for the UK and US aviation industries."

Let's see what this "monopoly" looks like:

London to New York you can fly on BA, AA, Virgin Atlantic, Delta, Continental, Air India, Kuwait Airways.
London to LA you can fly on BA, AA, Virgin Atlantic, United, Air France, Air NZ.
London to Chicago you can fly on BA, AA, United, Virgin Atlantic, Air India.

Of course you can fly indirectly on these routes through Europe, Canada and other US destinations on umpteen airlines, a lot cheaper than the direct routes typically.

There is also no legal restriction on any US or European airline entering any TransAtlantic routes (although landing slots at Heathrow are at a premium, Delta, Continental and Northwest got some earlier this year without enormous effort). Monopoly? Hardly!

Let's compare that to trains between London and Manchester - how many operators run that? Oh yes, one - Virgin Trains, and it gets hundreds of millions of pounds in subsidies from British taxpayers to do this. Of course there is competition by air and road Beardie would say, of course he would - he isn't involved in monopolies now is he?

So why does BA have so many slots? Well Heathrow is BA's hub, like Frankfurt is Lufthansa's and CDG is Air France, and Schiphol is KLM's. You don't operate an airline that flies within the UK or around Europe at all, so it's no bloody wonder you have less. There are, of course, several European airlines over the years that have gone bust you could have bought and revived, but I don't see you doing that - not going to buy out and rename Alitalia, Virgin Italia?

You might see what Chairman (and majority owner) of BMI - Sir Michael Bishop - another competitor of yours (and BAs), with the 2nd highest number of slots - has said instead "I think things have changed after open skies and they are not setting any precedents. What BA is asking for is what both the other major alliances already have." according to the Daily Telegraph.

So Beardie - compete, make your own arrangements (you already have a codeshare deal with Continental, but I'm sure it's not as lucrative now Continental has agreed to join Star Alliance) and don't pretend that somehow AA gives BA anything more except closer integration to the US domestic market. Why don't you fly from Frankfurt, Schiphol or CDG? Why don't you seek to closely integrate with BMI? Why is Singapore Airlines finding it hard to sell its 49% stake in your floundering airline?

A real entrepreneur responds with a competitive challenge by outsmarting and outdoing the competition - stop running to Nanny State to protect your business and work it out - an airline dedicated to nothing but long haul flights from the UK, with only a smidgeon of partners feeding it, is not a sustainable business. It's not the fault of BA that it's figured out where the future is and you haven't. What are you scared of? Most British business class travellers wouldn't touch American Airlines for obvious reasons and if fares "go up" you benefit if there is less capacity on the route? Or is this maverick "I'm all for competition" all style over substance?

Is that why you're spending money lobbying Barack Obama and John McCain to protect your impotent business?

30 May 2008

Lorries protest fuel tax

Thousands of lorries blockaded streets around London this week, most notably parking on the A40 Westway (one of the short pieces of incomplete motorway scattered round London) reducing it to one lane. The reason? Fuel prices.

You see in the UK governments have for some years regarded the road transport sector as a light touch for taxation. Fuel taxes have been increased year on year to match inflation, and absolutely none of it is dedicated to roads. They are taxes, pure and simple. As a result UK fuel taxes are the highest in Europe. The reason for the high taxes?

  1. Fuel tax is easy to collect and hard to evade (although having different coloured fuel for road and offroad use with different taxes is a problem);
  2. Increasing fuel tax looks like it’s environmentally friendly, although if the fuel tax was only charging for CO2 emissions it would be far lower, and it does not reflect exposure to emissions. You pay the same whether you drive round the Highlands of Scotland or if you drive in suburban London;
  3. Increasing fuel tax has a modest effect on congestion by keeping the cost of using cars up. However, given this has paralleled a paucity of road building, the UK now has the second highest levels of road congestion in Europe.

Fuel tax in the UK is 50.35p per litre for both petrol and diesel. To put that in context this is NZ$1.27 per litre in fuel tax alone, before VAT of 17.5%. In NZ petrol tax is NZ$0.42524 per litre before GST, ACC levy and a couple of minor other taxes.

One problem faced by trucking companies (road hauliers as they are called in the UK) is that trucks from continental Europe enter the UK with large fuel tanks full of diesel taxed at lower rates. So there is unfair competition.

The UK government twice looked at measures to address this, but doesn’t know how many foreign trucks enter the UK. It looked at an electronic distance based charge for all heavy vehicles and rejected it, and then looked at the vignette system, commonly used in Europe, whereby foreign vehicles buy a licence to operate for a certain number of days in the UK and are checked at the “border”.

So what SHOULD it do? First it should define why it is taxing fuel at all. If it is about paying for roads then part of the tax should be dedicated to funding roads (and there should be an independent non-political funding agency set up to manage that). The UK Treasury hates hypothecation because it fears waste, and loses control, but it has worked in New Zealand for many years. Indeed NZ is seen in some quarters as a model for how to manage road funding (shows you how bad the rest of the world is). If the tax is environmental, then have an honest debate about why, how effective it is and how fair it is at all? If it is revenue, be honest that road transport is being pillaged to fund social welfare and education, and see how the public taks that.

Sadly the UK is stuck in a bureaucratic arrogance that “nobody else in the world does it better” and wouldn’t look to NZ, or even to France and Italy which run motorways as private and government run businesses (with tolls). It taxes bluntly, it runs roads as political driven bureaucracies and decides road funding on a loose economic appraisal approach, whilst funding roads barely higher than it subsidises rail transport. The cost this underfunding of roads and blunt overtaxing of road users upon the UK is considerable, and it hides the true cost of the UK leviathan state – as it keeps income taxes down. It’s about time this was reversed and road use was charged on an economically efficient basis.

Tax on fuel is only justified as a transition to proper road pricing. It should be capped, roads should be privatised, and motorists able to contract with road providers for road use, and opt out of paying fuel tax in exchange. It is technically feasible, the problem is the political instransigence that treats roads as special. Roads are a network that needs maintenance and investment, and provide an economic good. Is it any wonder people complain about them when their management is subject to the appalling incentives of politics and bureaucracy, rather than investors, producers and consumers.

21 February 2008

Low Emission Zone London or Ken's tax on trucks

It’s election year in London, and Mayor Ken Livingstone is waging war on road transport – again.

Since 4 February he has made ALL of London (yes not just central) a “Low Emission Zone”. What this means is that any lorry over 12 tonnes that enters any part of Greater London under the authority of the Greater London Authority must have an engine rated as being euro 3 or above, otherwise it faces a £200 charge. This tends to mean that lorries registered since October 1991 will be exempt, but those older than that will face the fee. Failure to pay will result in a fine of £1500.

The scheme will cost £10 million to operate, and is costing £50 million to implement (figures quoted from BBC London) but its benefits are likely to be difficult to detect. The scheme will undoubtedly cost millions to businesses, as currently roadworthy lorries will need to be sold, or the fines and fees passed onto customers. Meanwhile, the lorries will likely be relocated to other parts of Britain, producing dirty emissions there! The scheme is to be extended to lorries down to 3.5 tonnes by July 2008, along with buses, coaches, minibuses, vans, motor caravans and ambulances. Cars are specifically not included, curiously.

Of course it is very unclear how Ken intends to deal with foreign lorries, which are difficult to enforce against. Enforcement against foreign lorries depends on the ability to use law enforcement in EU countries for this purpose, which is highly variable. Non-EU countries are typically more difficult.

The ambition is to clean up local air quality in London, which can be appalling, albeit for some reasons Ken is unlikely to concede:

1. The increase in buses in London as subsidies have dramatically increased. Before Ken became Mayor, buses in London did not require net subsidies, now they cost over £1 billion a year in subsidies. Many buses run with few passengers, and with bus fares having been cut significantly, this encourages people to ride buses rather than walk, cycle or ride the tube (which produces no local emissions). There is little evidence that the additional buses produce less emissions than any cars replaced.

2. The appalling lack of good arterial roads away from built up areas. London’s road network is half finished, and may be destined to be so for some time. For example, the M25 is the only proper orbital route. The A206 north circular is partial highway, partial local street, with many residents exposed to noxious emissions because of anti-road building policies. There is no decent south circular route. A handful of large tunnelled highways would reduce this exposure, reduce emissions and congestion.

So we will wait and see what, if any, positive results come from the Low Emission Zone. Meanwhile, this will increase the costs of doing business in London, and I doubt there will be any measurable impact

31 January 2008

Scotland drops tolls, ignores economic truths

The Scottish Executive, which governs Scotland under devolution with taxpayer funding directly from Westminster, is abolishing tolls on the Tay and Forth Bridges. So, instead of road users paying for the maintenance and upkeep of the two bridges directly (and paying off loans associated with the Tay Bridge), money will come from general taxpayers. Socialism at work - shifting from user pays to bureaucratic planning and taxpayer pays. According to the Scottish Transport Minister this ends "years of injustice". Apparently the injustice is that those bridge users pay for their bridges, but other Scots get their bridges subsidised by everyone else in the UK. Maybe food should be "free" too.
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Well it wouldn't be if you applied some economic rationality. For starters you could have dedicated the average amount of fuel tax collected from users of the bridges to the bridges themselves, and used the tolls to collects anything left over. You could have sold the bridges. Yes, I know you'd almost rather paint a St. Andrew's Cross on yourself and call yourself English that do something so instinctively anti-Marxist, but you could've. Then you'd still have people saying they pay fuel tax and tolls, but you could have offered to refund the fuel tax, or credited it towards the tolls. After all, what's wrong with user pays? Oh I forgot you're running the Scottish Executive, everything is wrong with user pays isn't it? Because the users wouldn't pay if they had the choice.
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Of course abolition of the tolls is meant to bring great benefits, by elimination congestion at toll booths. Again, a modicum of research would point out that toll booths are yesterday's technology to tolling, as electronically tolled roads in Canada, Chile, Australia and elsewhere have proven for several years now.
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The truth will be in a few months time and a few years down the track. Removing the tolls lowers the cost of using the bridge, this increases demand, which will in itself mean congestion at peak periods of demand. This will bring demands for new bridges, which are not cheap. So then you have to decide do you have those who demand the new capacity pay for it, or just be good socialists and make everyone pay for it.
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In Tauranga, it was less than 2 years after the toll was removed that there were regular reports of lengthy delays on the harbour bridge, and calls for a duplicate bridge. Now the bridge is being built, paid for by all road users nationwide, after NZ First Leader Winston Peters lobbied for it not to be tolled as part of the confidence and supply agreement with the Labour Party. No doubt in 10 or so years time there will be demand for yet more increases in bridge capacity or at least peak periods of congestion.
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Selling the bridges would make far more sense. You may then see the following happen:
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1. Operators of the bridges that want to maximise their efficiency, so would shift towards lower cost electronic tolling and optimise maintenance;
2. Operators of the bridges that want to maximise throughput of the bridges. This means charging more at times of peak use, but correspondingly ensuring traffic is not severely congested. It also means responding quickly to accidents or blockages, and ensuring maintenance activities are carried out at off peak periods. Don't believe me? Look at the privately built, funded, designed and owned Citylink motorway in Melbourne, because this is exactly what happens.
3. Operators of the bridges that make profits, and might reinvest the surplus in other worthwhile business ventures, pay dividends to shareholders or even build duplicate bridges if they were deemed worthwhile. This is bound to be better use than politicians spending the surpluses.
4. Government would get a substantial windfall of cash it could use to pay off debt and reduce taxes overall.
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Or you can keep doing the old fashioned tried and tired central planning option for roads. It has been a stunning success hasn't it?

15 November 2007

St. Pancras to Europe


Today a new era in travel between the UK and Europe has begun with the shifting of the Eurostar rail service from Waterloo Station to St. Pancras. This change is the culmination of two integrated projects, the refurbishment and upgrade of St.Pancras station into an international rail terminal, and the completion of the fastest high speed rail link in the UK, allowing 186mph rail journeys from the Channel Tunnel to St. Pancras.

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The upgrade knocks around 20 minutes off of the rail trip from London to Paris. Frankly, air travel between London and Paris, and Brussels has become increasingly pointless. Not least because the need to check in, the tightening of security at airports (not that security is absent on Eurostar), and the distance of Heathrow and Charles De Gaulle airports from London and Paris city centres - means rail travel is simply faster and more pleasant than being boxed in on a short flight, that may be delayed for ages at either airport due to congestion. The cost of this line is an incredible £5.2 billion - astronomical, not least because it involves a 19km tunnel under east London.

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However, today was not the day to debate the questionable value of this investment, only undertaken through convaluted financial arrangements with essentially the British taxpayer supporting it - and today was not the day to remind people that the line is expected only to be used to one-quarter of its capacity, and only half the trains are actually needed. Today was the day of St. Pancras.

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St. Pancras is now, once again, London's premier station. Built by the Midland Railway Company back when Britain's railways were being built and run by the unfettered private sector, it was designed to be (and succeeded in being) grander than the Kings Cross and Euston stations of the competing railway companies of the age - Great Northern Railway and London and North Western Railway. Following the demolition of the original Euston for functional yet uninspiring current terminal, St. Pancras was saved from demolition under British Rail (after nationalisation by the Atlee Labour Government) by the efforts of John Betjemen the poet.

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So now the Gothic wonder of grand old St. Pancras has been painstakingly restored, and I have yet to see it for myself. However, it promises to be grander, and a far more alluring gateway than the overcrowded Waterloo. In a few months time I hope to be able to test this. Meanwhile, judge for yourselves from the website or Eurostar's website.

29 May 2007

Tfl incompetence

On Sunday my girlfriend and I were driving to Norfolk, with a rental car (and don't give me "take the train" finger pointing, as the car was full with possessions as she is moving there for five days a week for work reasons), and to undertake this journey should be straightforward. We live not too far from the A406 North Circular road (around 40% of a circular route) which is 3 lanes in each direction over much of its length.
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It was a wet day and a busy one, with a considerable amount of holiday traffic - including some tube replacement buses - and so you might wonder why Tfl authorised its contractors to close to one lane each way the underpass (under a railway line) between New Southgate and Colney Hatch lane. Why were the second lanes closed (the road already narrows from 3 to 2 lanes each way because this is the beginning of an awful gap in the A406)?
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Very simple. Contractors were scraping unauthorised posters from the walls of the road underpass.
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Were they doing this on a roadway? No, in fact there are very wide footpaths where the workers were working. Traffic passed beside them quite safely (as pedestrians can walk through this underpass).
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Were they doing work in the road median? No! The only reason the central lanes were closed was to create a space for the contractors' vehicles to be parked!! Parked!!
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The resulting tailback added 20-25 minutes to a journey of about a mile eastbound, it was easily a 2 mile tailback westbound.
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So for some inexplicable reason, TfL authorised the contractors to close lanes in the middle of the day so that some cleaning activity could be carried out. Now, let's just assume for the sake of argument that it wasn't just to park the trucks somewhere (there is an adjacent service station and vehicles could have been parked less than 100m further away on the road without closing both lanes), and there is work in the middle of the road...
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Why isn't this work carried out at night? Dare I say, in Australia and New Zealand such work on a major arterial route which halves the capacity of the route would be carried out in the wee small hours. Yes you pay people more, but this is nothing compared to the cost in lost time, fuel and the safety risk of traffic slowing from 50mph to a stop-start crawl - something that clearly doesn't seem to matter to Tfl. Heaven help you if you catch the Northern line replacement buses that were stuck in the jam in the other direction.
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I can put it down to either:
- Sheer incompetence either driven by failure to appraise whether it is cheaper for London to pay to do this work at night or to do it on the cheap, and create huge traffic jams;
- An obsession with public transport and little interest in highway management, and little interest in minimising congestion through better traffic management.
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Tfl should be split in two - one body dedicated to managing public transport franchises and another dedicated to managing London's highway network. The latter should have a hypothecated stream of funding prioritised to road maintenance, with specific output goals of minimising incident or planned congestion, and maximising the efficient and safe operation of the network. To do this means a major political change in the Mayoralty and the Greater London Assembly. London has one of the worst urban highway networks in the Western world, the north circular (A406) is incomplete and erratic, the south circular (A205) is a circular by signpost only, it is about time that London's road network was properly managed and funded. London's road users already pay enough to use it!