Focus on UK transport sector opportunities through the Network North Plan

The decision of the Government not to proceed with HS2 Phase 2 and HS2 East and instead invest in public transport projects through the Network North plan (as outlined in the “Network North: transforming British transport” policy paper published by the Department for Transport (“DfT”) on 4 October 2023 (the “Policy Paper”)), has provided a ￡36 billion pipeline of potential opportunities to improve local transport networks on a regional basis.

The re-prioritisation of funds from HS2 aims to achieve:

• better connectivity within towns, suburbs and cities; alongside the provision of additional funding to develop mass transit systems, improve bus networks and enhance city roads;
• the availability of funding for local transport authorities in rural counties, smaller cities and towns;
• better connectivity between towns and cities; alongside the development of a modern transport network which cuts journey times, increases capacity and improves frequency;
• the delivery of modernised regional rail hubs; and
• an increase in buses, potholes repairs across the country and growth in regional bus routes.

In this briefing, we take a more in-depth look at some notable transport project opportunities which are anticipated to benefit from the Network North funding.

Leeds Tram Network

The Policy Paper announcement enables the West Yorkshire Mayor to take forward plans for a ￡2.5 billion mass-transit metro for Leeds and to connect Leeds with Huddersfield, Wakefield, Bradford and Halifax, with a network of up to 7 lines. Despite plans for a new tram system in Leeds being first proposed in 1991, and again in 2002, the current Mayor’s office expects construction for the long-awaited mass transit system to begin before 2030.

The West Yorkshire Combined Authority has not currently finalised the route for the scheme, which is expected to have all routes fully operational by 2040; and it has not yet decided whether trams, tram-train vehicles or modified buses will be used. New rolling stock is likely to be required for the project and this will be confirmed once the revised West Yorkshire Mass Transit 2040 Vision is formally approved and implemented. This wider West Yorkshire mass transit network project is seen as central for the region to become a net-zero carbon economy in the future.

Midlands Rail Hub

The ￡1.75 billion investment in the Midlands Rail Hub will benefit more than 50 stations in a major funding boost to create stronger public transport networks in the East Midlands region, alongside a proposal to connect Derby to East Midlands Parkway via a bus rapid transit system. The project, the Outline Business Case for which was submitted to the DfT in December 2022 by Midlands Connect, focusses on boosting economic growth; being environmentally friendly (each parcel or person moved by rail instead of by diesel/petrol vehicle would, it is claimed by Midland Connect, generate 76% less CO2); and safeguarding jobs in the region, with specific focus on the engineering and construction sector.

This rail hub has the potential of adding 14 million more seats on the rail network each year and provide faster, more frequent or new rail links for over 30 locations including Birmingham, Bromsgrove, Nuneaton, Worcester, Hereford, Cardiff, Bristol, Cheltenham and Leicester. It is expected to bring 1.6 million more people to within an hour of the region’s biggest towns and cities by public transport. The project also envisages replacement of aging diesel rolling stock with fully electric rolling stock and for there to be 70 plus extra freight trains through the region each day.

Electrification of North Wales Main Line

The announcement of ￡1 billion investment to fund the electrification of the North Wales Main Line aims to improve journey times and better connect North Wales with London and the North West. Additionally, this project is expected to deliver more punctual and reliable journeys on the 126-mile route between Crewe, Warrington, Chester, Llandudno and Holyhead. Following on from the smart electrification of the Core Valley Lines, this project too has the potential to significantly boost decarbonisation of the rail network and delivery of electrification in Wales, as currently only circa 2% of the route miles in Wales are electrified as compared to 25% in Scotland and 45% in England.

Reopening of the Ivanhoe Line

Another project benefiting from the Network North funding, is the reopening of the Ivanhoe Line to passenger services which will connect 250,000 people across East Staffordshire, South Derbyshire and North West Leicestershire with the wider rail network. The plans also include the construction of two new stations at Castle Gresley and Ashby-de-la-Zouch. However, due to current freight usage on the single-track line between Coalville and Leicester it is unclear whether the project will extend to Leicester in future, as this is likely to require significant infrastructure investment. An Outline Business Case is expected to be considered by Network Rail and the DfT by the end of the year.

For further details of region-wise road and rail infrastructure and network improvement opportunities see pages 25 to 35 of the Policy Paper and for further updates see here.

Concluding Remarks

The development of a robust and a more green local transport network, as showcased by way of the projects discussed above, has the potential to offset what some might consider to be the disappointment caused by the part-cancellation of HS2. New opportunities are anticipated to emerge or may now emerge sooner through the implementation of the Network North plan, including employment opportunities in the engineering and construction sector; and in the rolling stock manufacturing sector as heavy and light rail/metro projects will require new and modern infrastructure, as well as rolling stock with a lower carbon footprint.

Eversheds Sutherland’s Rail Team has extensive experience of advising on domestic and international heavy and light rail concessions, including advising on O&M and rolling stock aspects of transport projects and is well placed to support both concessionaires and private sector bidders on transport sector opportunities. Please contact one of our team if you would like to discuss these opportunities further.

For more information, please contact:

Will Spickett , Partner, Commercial - Nottingham

Madhulika Kanaujia , Principal Associate, Commercial - Nottingham