It would be an understatement to suggest that last year was anything less than a whirlwind for the UK and its most prominent industries. After an early election in the country brought a change of residency at Number 10, a host of new policies have since been rolled out to inject confidence back into the many sectors in need of direction and support.
The UK government’s feet may be firmly under the table now, but it didn’t take long before its plan to “get Britain moving” again had kicked into action. The announcement of a new Integrated National Transport Strategy (INTS), made by former transport secretary Louise Haigh in November, outlined a commitment to eliminating the fragmentation and inefficiencies often associated with mass transit projects.
In years gone by, transport infrastructure benefits have been considered purely in terms of moving people from A to B. In doing so, other important socio-economic benefits are often overlooked. Be it driving investment into an area, boosting jobs or access to education and health, the incoming INTS suggests that delivering the “right outcomes” is now just as important.
In its development of the INTS, the government has looked to replicate the successes experienced by Dijon, the smallest regional capital in France. Here, I look at why.
A modern approach to project appraisal
During its launch back in November, the government outlined how the INTS will set out a locally led “people-first” approach inspired by Dijon’s model of integrated transport – a project which Egis delivered through comprehensive design and delivery services that placed connectivity and sustainable urban development at the forefront of priorities.
The decision to implement a tramway system in Dijon was reached following a thorough analysis of the city’s transport needs and challenges. A key contributing factor was the issue of excessive bus traffic in the city centre. Despite having an established and efficient network, the number of buses operating created noise pollution and emissions in narrow, unsuitable streets, reducing the appeal of particular areas for potential residents.
A tramway was viewed as a modern and sustainable transport solution capable of enhancing the metropolitan area’s attractiveness, all while addressing several key challenges. The subsequent evaluation process was centred around an opportunity and feasibility study, carried out over the course of one year, which was essential in determining the viability and potential benefits of the tramway project.
As expected, criteria used for evaluation included an analysis of both the initial capital required to build the tramway system and the ongoing costs to operate and maintain it, in addition to assessing the long-term sustainability and durability of the tramway infrastructure. Crucially – and this is where the differences between the traditional appraisal process of UK major infrastructure projects start to emerge – the process also evaluated the system’s alignment with the city’s strategic goals. This was achieved by conducting a specific financial study to ensure the local government could fund the project without jeopardising other services, as well as assessing both the modal shift and time savings potentially available to users. These criteria combined to provide a comprehensive framework for evaluating the project’s practicality and benefits, both tangible and intangible, to the local community.
In the UK, the difficulty in obtaining funding for light rail projects shouldn’t necessarily come as a surprise when you consider how the Green Book, which is used to assess the cost-benefit ratios of major infrastructure projects, typically magnifies the disbenefits of proposed systems. For example, road closures and the installation of new junctions contribute to the value of disbenefit for every journey affected. Accounting for the social return on investment, however, and securing funding just might become that bit easier.
The government’s decision to review the Green Book, announced in January, gives hope that all investment projects will be considered fairly by the Treasury, after years of projects located in London and the south east being favoured due to the undervaluation of wider, long-term, societal benefits.
Ahead of schedule
The building of Dijon’s tramway system commenced in 2010, with 18km of tramway tracks spanning two lines set to be built. With a total cost of €399M (£337M), the project was primarily financed through loans, but also benefitted from financial subsidies, which contributed to offsetting the total investment cost. The debt repayment was also managed by increasing the Transport Tax rate (Versement Transport) from 1% to 1.8%, which generated an additional €14M (£12M) annually to help repay debts.
Something that we don’t tend to hear all that often in the UK is how major infrastructure projects progress remarkably smoothly, with no significant delays encountered in either the approval or construction phases. Dijon’s tramway system, however, is a different story, with construction taking just two years to reach completion. Following a streamlined approach to the approvals process, whereby decisions were made rapidly due to direct collaboration between the technical teams on the ground and the project leadership, the construction phase was actually shortened by four months compared to the initial schedule.
The project’s ownership was deliberately kept small, which helped streamline communication and avoid unnecessary bureaucracy. To simplify implementation and control costs, the project adopted standard design elements without incorporating custom or elaborate features, which have been used elsewhere at substantial cost as a stakeholder management tactic. This approach, focused on simplicity and responsiveness, was instrumental in delivering the project within the planned timeline and budget.
Following the same track
The success of Dijon’s tramway system highlights the numerous problems with the current approach to infrastructure in the UK. The promise of a 10-year plan is undoubtedly encouraging and indicates that the INTS will look to overcome the tendency towards short-term decision making that has become all too familiar in the UK.
Dijon’s tramway system proves that when a project is strongly aligned with a city’s broader goals and prioritises socio-economic and environmental benefits, it not only transforms public perception, but it can also drive investment, make it easier to secure project funding and prevent timelines from dragging on for years. Quite simply, the industry should expect the incoming INTS to deliver a similar outcome.
You can read the article at the New Civil Engineer here.
