Executive The road system becoming crowded with

Executive Summary



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        The issue of
new high-speed railway in UK
didn’t appear out of thin air , many factors like:

1)     The
rise in Long distance passenger demand (as shown in graph 1)


       Graph 1
(source www.gov.uk)


2)     The
road system becoming crowded with limited ability to keep increasing capacity.
offering high-speed rail will encourage more people to travel by train
relieving gridlock in city centres

3)     Investment
will provide jobs for those involved in building and running the new HS2

4)     High-speed
rail will take travel away from short distance air-travel , leaving a lower
carbon footprint.

5)     Shortening
time of the travel . (graph 2 )

Graph 2 (source www.gov.uk)





contributed to increased  need for new high-speed  railway and in the end led to creating
company HS2 LTD to build it.


HS2 is a new high speed railway line under development by UK department of transport, which will connect
London Birmingham Manchester and Leeds and has
two phases :

1)     London (Euston train station)  and Birmingham
(Curzon train station) , scheduled to commence in 2017 to be ready for the
opening to passengers in 2026

Line length –  140 miles (225km)

Cost            –  around £22bn ($30bn)

2)     Manchester and Leeds

Line length – 190 miles (306km)

Cost            – 
around £20.6bn ($28.6bn)

The route is also referred to as
the Y network since it is roughly in the shape of the letter Y.


It is one of
the most substantial transport infrastructure projects ever built in the UK.

        The project will provide vital
transportation links between cities and regions across the United Kingdom.
The HS2 network will reduce journey times between some of the UK’s largest cities and also create
economic benefits and thousands of jobs.

        The HS2 will be operated with
high-speed only trains and classic compatible trains offering higher seating
capacities, to serve the large volumes of passengers arriving at the same time.

only trains operate only on high-speed tracks, while classic compatible trains
run on high-speed and existing tracks.

         High-speed trains will run at a speed
of 225 miles an hour (mph). Each unit will have a length of 200m and the
capacity to carry 1,100 passengers.Two vehicles can be joined together for
operating during peak times. High-speed trains will require different types of
stations, offering a platform height of 760mm.



 Involved contractors by 2012 :

CH2M Hill was appointed as a development partner to provide
engineering, design and environmental assistance for the HS2 project, in
January 2012.

March 2012, HS2 contracted the ERM Temple Group Mott MacDonald Consortium,
Atkins and Arup to undertake environmental impact assessments (EIAs) for the

April 2012, HS2 placed contracts with Mott Macdonald, Atkins, Capita Symonds
Ineco JV and Arup for designing various segments along the high speed line.

May 2012, Parsons Brinckerhoff was awarded contracts to design high speed rail
systems for the first phase of the project and to deliver design changes on the
present Network Rail systems at major interface points, to allow the
construction of HS2


Is it good
for Stakeholders?

On one hand :

1) amount of
jobs increase(according to www.gov.uk 14 000
new jobs will be created and 600,000 square metres of new employment floorspace

2) a lot of
companies/people benefit (selling lands/winning tenders during redevelopment of
over 140 hectares of land )

3)it will
provide space for 2000 new homes

4) contribute
1.3 billion pounds a year to the local economy (HS1 provides £300m boost to Kent
economy in first decade of service)

5) increase
in tourism (means more money for everyone in the area)

6) The northern cities served by the new
line, which will be better connected to each other and to the south of England will


On the other

1) Places further away from the line, like Wales, aren’t
expected to see any economic benefits and could lose
jobs as a result

2)The Wildlife Trusts say both phases directly affect
nature reserves and wildlife sites which could lead to a net loss in

      3)The Chilterns, Buckinghamshire and
Oxfordshire – here, historic buildings are at risk of damage or demolition, and
remaining residents will face noise pollution

4) Some residents in Mexborough, South
Yorkshire, will lose their homes. Sixteen of 216 homes on a housing
estate in Mexborough will be demolished

      5) Thousands of people living in Camden, north-west London,
face years of disruption during phase one. Parts of the Regent’s Park Estate
will also be demolished














Critical Evaluation of the effect (both positive and
negative ) of HS2 project on West Midlands
regional economy.


Graph 4 (source KPMG analysis)


Total annual impacts on GVA for the West
Midlands metropolitan area are estimated at £1.5 billion in 2026,
with a growth in workplace employment of approximately 22,000.

As we can see from graph 4 annual increase in GVA for
WMM(west midland metropolitan) is approximately 1.5 billion pounds in 2026, and
workplace base employment


The table below shows the impacts on residence – based
employment, average wages and GVA by sub-region.

Graph 5 (source KPMG analysis)


      Economic impacts of an HS link from London to Birmingham

The impact of High Speed services between Birmingham and
London have been tested in isolation, to determine the contribution they would
make to the initial HS2 + regional rail enhancements scenario. The High Speed
link will impact on connectivity levels for places that will gain an improved
direct or connecting service to London

Graph 6 (source KPMG analysis)


        Total annual workplace GVA impact to for
the West Midlands Metropolitan Area with a high speed line to London is estimated at 600 million pounds in
2026, with a growth in workplace employment of 10,000 . The majority of
benefits come from increased business-to-business connections . This is a
little less than half the benefit measured in the HS2+ regional rail
enhancements scenario. The majority of benefits are withing Birmingham.

Graph 7 (source KPMG analysis)

Fiscal implications

Using Treasury ‘green book’ appraisal guidance and
productivity impacts in the West Midlands, the net national tax revenue
generated by the core scenario is estimated to be around £6.4bn over 60 years
(in net present value terms). For HSR only, the implied net national tax increase
would be only £2.7bn.

   To sum up :

1)HS2 combined with RRSE will boost the west midlands
economy , creating 22 000 permanent jobs and 1,5 bn pounds impact on GVA by the

2) HS2 between London and Birmingham without extra
regional enhancements would deliver less than half those benefits.

3)A stronger WM economy as a result of HS2,and complimentary
rail improvements , would generate tax revenue of some 6.4 bn pounds. This
could finance new and improved infrastructure.

Additional benefits may include:

a)     Public
transport will have more users

b)     improved
local air quality caused by fall in carbon emission

c)     people
will have easier way to go to work

d)     on
all roads national or local congestion will be reduced







Evaluation of potential benefits and challenges of the mixed
development to Richard Construction Limited (eg: Financial , company’s image )


Examination of practical implications of the investment that
Richard Construction Limited must consider before deciding on the investment
(eg: team working , motivations)