Delivering an unprecedented funding package
Network Rail needed to replace its outdated Victorian rail infrastructure to provide a more reliable and sustainable railway. This is the five-year story of how we worked with Network Rail and the wider rail industry to secure £1bn funding to refit 275 passenger trains, a third of the freight fleet, and 100 miles of track for digital signalling - with longer-term plans for a further 4,000+ trains and 19,000 miles of track.
Setting the scene
We were appointed by Network Rail to build a business case for the East Coast Digital Programme (ECDP) to implement digital rail signalling. This technology would improve the quality of service for passengers and freight users, while also increasing safety and reducing the railway’s carbon footprint - all at a significantly lower cost than conventional signalling.
How we helped
The project was a first of its kind both for PwC and the rail industry. We developed a compelling business case from the early Strategic Outline Case, building a narrative to highlight the necessity of funding for digital rail technologies to kick-start transformation of the UK’s rail infrastructure.
Throughout the project - and to ensure industry buy-in - we worked with multiple different stakeholders including passenger train and freight operators across the rail network, suppliers, the Department for Transport, and HM Treasury to ensure each stakeholder understood and supported the case for change.
We eventually took the project through to the Final Business Case, compliant with HM Treasury’s Green Book. Our approach to the business cases and thorough stakeholder engagement paid off; as the Department for Transport and HM Treasury approved the government funding.
“Throughout the project, we trusted PwC’s ability to deeply understand what they are trying to do and bring a wealth of knowledge and capability. As a result, the quality of the business case the PwC team has produced is outstanding and we are able to transform the East Coast Railway Network.”
Making a difference
Working with Network Rail to secure this funding, we created a new standard for business cases in the rail industry. It is unusual for both the Department for Transport and HM Treasury to approve a case this complex the first time. We also received a Green review rating from the Infrastructure and Projects Authority for the Full Business Case - another industry first for a project of this complexity.
The project will have far-reaching societal benefits, including the creation of 4,800 new jobs and helping contribute to the government reaching its net zero goal by decreasing carbon emissions by 55,000 tonnes over 60 years.
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