Adam Smith Institute - Conference Division

15th & 16th July 1996
The Future of the Privatized Rail Industry
The Portman Hotel, London.

Conference Programme


9.15am - Monday 15th July - Day One

KEYNOTE ADDRESS
Rt Hon Sir George Young MP, Secretary of State for Transport

REGULATING THE NETWORK
John Swift, The Rail Regulator (invited speaker)

  • Development of the relationship between Railtrack and train operators
  • How can the regulator assist in the development of new products and services?
  • Takeovers and mergers - regulating future developments
  • Prospects for competition in passenger and freight
  • Refreshment Break - sponsored by NM Rothschild & Sons Ltd

    PRIVATE SECTOR OPPORTUNITIES IN RAIL
    Simon Linnett, Director, NM Rothschild & Sons Ltd

  • Overview of rail privatization: new structure of the industry
  • What is the profit potential of the rail industry - how can the opportunities best be exploited?
  • Options for financing investment in rail
  • Long term implications of the division of British Rail
  • Development of the industry - projections for consolidation and restructuring
  • Who is running the new rail industry - analysis of bidders
  • NEGOTIATING THE CONTRACTUAL MAZE
    Tom Winsor, Former Chief Legal Adviser, Office of the Rail Regulator, and Partner, Denton Hall

  • How great is the burden of the operators?
  • Getting the most out of Railtrack
  • Enhancing investment in the rail network
  • Assessing the political and regulatory risks
  • Is the regime a stable framework or is revision inevitable?
  • CULTURE CHANGE IN THE PRIVATIZED INDUSTRY
    David Clifford, Partner, KPMG Management Consulting

  • Managing the transition to the private sector - adapting to become commercially driven
  • Restructuring and cost cutting: moving to a single status company
  • Effective handling of the human resources issues
  • Performance management and new reward structures
  • Lunch

    RAIL FREIGHT - REVERSING THE DECLINE
    Ed Burkhardt, President & CEO, Wisconsin Central Transportation
    Max Joule, Managing Director, Direct Rail Services, successful bidder for Freightliner

  • Relations with Railtrack - negotiating in the dark on freight access pricing
  • Options for investment in rolling stock, maintenance depots and freight railway lines
  • The economics of competition
  • Customer service - developing a flexible relationship with freight users and marketing in a competitive industry
  • What do freight users expect from private sector freight?
  • New development opportunities - future growth areas for freight operators - prospects for intermodal freight
  • Integration with the European Network
  • Refreshment Break - sponsored by Logica

    HARNESSING NEW TECHNOLOGY IN THE PRIVATIZED RAIL INDUSTRY
    Jeremy O'Connor, Account Manager - Rail Sector, Logica

  • The role of IT in a disaggregated industry
  • IT solutions for optimizing efficiency and reducing costs
  • Using IT for successful marketing - providing efficient information systems
  • ROLLING STOCK IN THE PRIVATIZED RAIL INDUSTRY
    Sandy Anderson, Managing Director, Porterbrook Leasing Co.

  • Financing new rolling stock - working with the TOCs
  • Serving private sector customers in a more diverse market
  • Short term franchises and the residual value risk - is investment in new rolling stock viable?
  • How can the market for new rolling stock be stimulated?
  • Prospects for non-core expansion
  • LESSONS FROM THE AIRCRAFT FINANCE MARKET
    Tad Komori, Manager, Airline & Aerospace Finance, The Sumitomo Bank Ltd

  • Recent developments in the aircraft leasing market
  • Tax efficient structuring of aircraft finance
  • Aircraft leasing with export credit guarantees and securitization
  • Manufacturers support in lease finance
  • What should rail leasing learn from other industries?
  • Close of Day at 5.15pm followed by Cocktail Party sponsored by KPMG Management Consulting - address by Sheila Masters, Partner, KPMG


    9.20am - Tuesday 16th July - Day Two

    KEYNOTE ADDRESS
    Clare Short MP, Shadow Transport Secretary

    IMPACT OF PRIVATIZATION ON INVESTMENT IN RAIL INFRASTRUCTURE
    Bob Horton, Chairman, Railtrack

  • Railtrack's prospects - maximizing efficiency and options for growth
  • Adjusting to the private sector - answering to shareholders
  • Railtrack's 10-year investment plan
  • Investment partnerships with passenger and freight operators - how can they share the risks and rewards?
  • Maintenance and the relationship with the privatized BRIS - the scope for cost cutting
  • PROPERTY INVESTMENT
    Alistair Parker, Partner, Healey and Baker

  • Options for the development of stations
  • Generating occupier income: control and expertise
  • Potential partnerships for developing property
  • Implications of privatization for property investment
  • Refreshment Break

    STATION DEVELOPMENTS
    Simon Allan, Partner, Berwin Leighton

  • The attractions of station-related development
  • Constraints on station-related developments: safety, construction and operational constraints, programme costs
  • Dealing with a fragmented industry
  • Unsolved problems - residential/leisure
  • INVESTMENT IN NEW INFRASTRUCTURE
    Sir Derek Hornby, Chairman, London & Continental Railways
    Andrew Gritten, Chairman, Central Railway

  • Where do new routes fit in with the whole picture - implications for the existing network and rail operators
  • Prospects for competition in infrastructure
  • Regenerating rail - making it a viable means of transport
  • PFI - getting the right balance of risk and reward
  • Financial structure - obtaining the funds
  • THE NEW INSURANCE REGIME FOR RAIL
    Peter Mills, Client Service Director, Alexander & Alexander

  • Requirements for the Regulator
  • Safety management and quantifying risk
  • New insurable risk: performance regime and Employers Liability
  • Insurance market mechanism and the impact of privatization
  • Long term risk financing alternatives
  • Lunch - sponsored by Berwin Leighton

    Afternoon Session: OPPORTUNITIES AND RISKS FOR THE PRIVATE SECTOR IN PASSENGER RAIL

    DEVELOPMENT OF THE TRANSPORT INDUSTRY
    Adam Mills, Deputy Chief Executive, National Express Group

  • Effect of privatization on rail and coach companies
  • The growth of "transport companies"
  • How can National Express exploit its knowledge of passenger transport to succeed in rail?
  • Case Study: AN AIRLINE IN THE RAIL INDUSTRY
    Will Whitehorn, Corporate Affairs Director, Virgin Group

  • The future of international rail travel
  • What can Eurostar and other rail services learn from Virgin?
  • Introducing sophisticated marketing strategies
  • How does rail fit into Virgin's long term strategy?
  • Refreshment Break

    Case Study: BUS COMPANY IN THE RAIL INDUSTRY
    Brian Souter, Executive Chairman, Stagecoach

  • What do Stagecoach bring to the rail industry?
  • What approach to the business of running passenger trains?
  • Developing a balanced portfolio of franchises while avoiding regulatory constraints
  • Optimizing integration of bus and rail transport
  • MANAGING THE TRANSITION - STRATEGIES FOR GROWTH IN THE PRIVATE SECTOR
    Brian Scott, Managing Director, Great Western Trains, successful bidder for InterCity East Coast

  • Complying with complex contractual obligations - do the TOCs have room to manoeuvre?
  • What are the economics of going beyond the PSR?
  • Implications of the limited franchise period
  • Options for sourcing and maintaining rolling stock
  • Exploiting opportunities for synergy with equity partners
  • Driving out costs - optimizing the use of assets
  • Opportunities for growth - what new activities and services can a TOC undertake?
  • Introducing sophisticated pricing strategies as a marketing initiative - maximizing passenger revenue
  • Ticket innovation, loyalty schemes and customer service initiatives
  • Discussion followed by Conference Close at 5.20pm


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