Title Rail devolution business case narrative 1 Summary

agreement in principle for devolution of the relevant services in southeast London
is therefore needed soon given the two year duration required.
3.4 For services to/from Waterloo, the 2017 refranchising date will not allow sufficient
lead time for a transfer to be planned and implemented. A date around 2020
would be more achievable, but provision for the relevant services to transfer
ideally needs to be included within the new DfT franchise that starts in 2017.
4 Southeastern’s devolution proposal
4.1 TfL has access to Southeastern’s own devolution proposal from April 2016 by
which services and supporting resources would be separated in a process under
one entity and managed by them. Updated from the original 2013 report,
Southeastern recommends a 2-2½ year programme including six months of
‘shadow running’ in which the two separated business units (‘metro’ and
‘mainline’) would both be operated by the incumbent to test its robustness.
4.2 It finds among other things that separation requires additional rolling stock and
train driver resource, though it does not at this stage take account of the proposed
remapping to GTR of the Gillingham service to Charing Cross service, nor of the
proposed capacity enhancement to enable 12-car trains. Both are expected to
have a material impact that would reduce the requirement for extra staff and
vehicles, and TfL has taken the likely impact into account.
4.3 TfL also suggests that the DfT and TfL procurement competitions could run in
parallel for both the metro and mainline operations, which is deliverable within a
two year horizon as long the competition starts in earnest as soon as possible. It
is analogous to a number of examples where franchise boundaries have been
redrawn, service groups and resources re-mapped and concurrent competitions
undertaken such as:
The split of Silverlink into London Midland and London Overground in 2007
The remapping of routes between Northern and TransPennine Express in
early 2016
The removal of Liverpool Street – Shenfield services and West Anglia inner
services in 2015 from Greater Anglia to TfL Rail and London Overground
respectively
4.4 While TfL expect separation to be cost neutral on a like for like basis in the
medium-term, if there is a need to recruit extra drivers early or other separation
costs, TfL would pick up the cost and/or pay Southeastern accordingly.
5 TfL’s preferred approach
5.1 TfL’s preferred approach would work as follows:
Southeastern’s service groups are identified as either metro or mainline. TfL
has identified the relevant services already, and a version of this is reflected in
Southeastern’s analysis from April 2016
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