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ORR’s assessment of Network Rail Scotland finds it continued to deliver despite the pandemic but the tragic incident at Carmont is a stark reminder of the need for infrastructure resilience to extreme weather

13 July 2021
The Office of Rail and Road’s annual assessment of Network Rail Scotland’s performance in 2020-21 highlights a difficult year for the region. The derailment of a ScotRail service at Carmont, near Stonehaven, in which three people died, tragically demonstrates the need for Network Rail to make sure that railway assets are resilient to the impacts of extreme weather and climate change.
Track views from Glasgow Central station

The COVID-19 pandemic has also had a significant impact. While passenger train performance has improved significantly, reduced income and higher costs have impacted on the region’s funding.

The regulator found that passenger train service punctuality and reliability improved, largely due to fewer services and passengers, but punctuality of freight services declined. Severe weather had a significant impact on passenger and freight service performance. Delays caused by severe weather in Scotland rose by 26% in 2020-21 compared with the previous year.

Despite the challenges of operating during a pandemic, the regulator has seen evidence of Network Rail Scotland collaborating closely, both with the supply chain and trade unions, to identify safe ways of working in the delivery of upgrade and renewal work. Network Rail Scotland has also demonstrated a sustained commitment to deliver Scottish Ministers’ priorities, and has started delivering Transport Scotland’s Rail Services Decarbonisation Action Plan, published last July.

ORR’s report recognises good progress by Network Rail Scotland in improving track worker safety, and that it has managed the transmission risks of COVID-19 well. But there is more to do, with improvements needed to how Network Rail Scotland plans for closures of the railway for work to be carried out safely.

Network Rail Scotland’s financial performance was behind target largely due to the pandemic; the region’s income reduced while costs increased. For the second year in a row, the region exceeded its efficiency target - delivering £65.6m of efficiencies in 2020-21. However, ORR has concerns around how prepared Network Rail Scotland is to deliver future efficiencies. The regulator has stepped up its monitoring of the region, requiring it to provide more frequent reporting on how improvements are being implemented.

The regulator also found that while financial risk arrangements established by ORR for Network Rail are working well and have helped it manage the impact of the pandemic, risk funds are lower than expected at this point in the control period, particularly in Scotland. This is a concern given the high levels of uncertainty and the financial risks that Network Rail Scotland faces.

Liz McLeod, ORR’s Senior Regulation Manager for Network Rail Scotland said: 

“This year, more than ever, has demonstrated the need for Network Rail Scotland to deliver on its commitments for a more resilient railway. 

“In 2020-21, there have been some significant incidents following severe weather, most notably the derailment at Carmont which resulted in the deaths of the train’s driver, its conductor and one passenger, and injuries to six passengers. My thoughts remain with the families and friends of everyone affected. Our formal investigation, jointly with Police Scotland and the British Transport Police continues. 

“Network Rail Scotland has demonstrated strong collaboration with industry partners and its funder, Transport Scotland, to identify improvements to sustain the high levels of performance experienced throughout the pandemic as lockdown restrictions ease. While train performance has been very good, there is a clear risk that performance will drop as passengers and services return. Network Rail needs to maintain cross-industry collaboration to retain performance improvements where possible.”

Notes to editors

  1. Network Rail Annual Assessment: https://www.orr.gov.uk/media/22598 
  2. Annual Report of Health and Safety on Britain’s Railways: https://www.orr.gov.uk/media/22601
  3. The Office of Rail and Road (ORR) holds Network Rail to account for its management of the GB rail network, monitoring how it operates the network to keep trains running on time, and how it keeps the network safe and in good condition.

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Related links
Annual assessment of Network Rail
Annual health and safety report