Date of meeting 28 June 2013 Date of report 3 June 2013
Report by Assistant Chief Executive (Operations)
1. Object of report
To provide to the Partnership a progress update on the subway modernisation programme.
2. Background
Members will recall from the previous update
1
that SPT has been progressing the
modernisation of the subway through a single co-ordinated programme approach. We have established five principal workstreams under which individual projects are managed. These are:
•
Rolling Stock, Signalling and Control Systems;
•
Stations and Accessibility;
•
Infrastructure;
•
Ticketing; and
•
Employee Relations/Human Resources.
In addition, an overall communication and stakeholder management plan is in place to ensure consistent and regular communication to customers and all stakeholders, including staff, as the modernisation plans progress.
The following sections provide a summary of key progress made to date since the previous progress report to the Partnership in December 2012.
3. Progress to date
3.1 Rolling stock, signalling, control and associated systems
This package represents the most significant investment in the subway modernisation and in general terms this comprises: a fleet of new trains, new signalling system, control system, new control room, platform and track protection
(screen gates) and enhancements to the existing power supply, depot stabling and maintenance facilities. The overarching operational requirements are for a fully automated driverless system that provides more frequent, reliable and flexible service to our customers, whilst also reducing on-going operation and maintenance costs.
1
Subway Modernisation – progress update, Partnership Meeting 7 December 2012
PARTNERSHIP/28 JUNE 13/6870
Page 1 of 7

SPT is currently progressing through a competitive dialogue procurement process. The initial outline phase (Invitation to Submit Outline Solutions) was completed in November 2012 and all four consortia/companies scored sufficiently to progress to the detailed phase of the procurement process (Invitation to Submit
Interim Solutions). However, shortly after being notified of the ability to progress, two consortia/companies opted to withdraw from the process. The ISIS phase is now nearing completion and has involved extensive dialogue with the tenderers on the solutions they are developing. Once written submissions have been received, SPT will have a good technical understanding of the solutions offered by the remaining two consortia/companies. The procurement process remains on schedule and it is estimated that a further six to nine months will be required to complete the procurement process to the point of recommending the award of a contract. This time will be used to interrogate the technical solutions and negotiate on the commercial aspects of the contract.
The procurement of the rolling stock turn-key package requires a high level of expertise and experience across many technical areas that need to be considered when procuring a system of such complexity. Members will recall that technical advice is being provided to the project by the consultancy Systra. This has been particularly pertinent within the context of signalling and platform edge protection (screen gates). In addition, the project is also being supported by
Racon Management Services (Racon) for rolling stock and commercial consultancy. Racon was appointed to the project team via a competitive tender from the Specialist Consultancy Support Framework based on the wealth of relevant experience in rolling stock procurement and commercial support that they can provide. They have been instrumental to the project procurement team to date and led many aspects of the process and are therefore required for the duration of the procurement process. As such it is recommended that approval is given for the continuation of the Racon contract at an estimated budget value of
£350k. This is within the budget for this workstream.
During this period we have continued to gain experience and learn from other systems, including a visit by senior officers to the Lausanne M2 metro (as part of the UITP congress
2
).
3.2 Stations and accessibility
The key areas of progress on this workstream are:
Hillhead Station – the majority of snagging items have been closed out and issues rectified within the contract maintenance period.
Partick (platform level) – the works are substantially complete and closing out of snagging is progressing. The works were completed to programme and budget.
Ibrox Station - the contract award for Ibrox was approved at the Partnership meeting on 7 December 2012 to Graham Construction. Works commenced at end of March 2013 and the temporary ticket office has been established to allow works to proceed at the concourse. Ceilings have been stripped out at platform level. Works are progressing in line with programme and budget and will be complete prior to the Commonwealth Games.
Kelvinhall Station - the contract award for Kelvinhall was approved at the
Partnership meeting on 7 December 2012 to Sir Robert McAlpine. Works commenced mid-March 2013 and a new temporary entrance and ticket barrier has been established to allow a temporary ticket office to be built. Ceilings have
2
UITP Congress – feedback report, report to Partnership meeting of 28 June 2013
PARTNERSHIP/28 JUNE 13/6870
Page 2 of 7

been stripped out throughout the station and panels removed at platform level.
Issues relating to water ingress in the station, which transpired following contract award, are being addressed as a variation to the works. Works are progressing in line with programme and will be complete prior to the
Commonwealth Games. We continue to keep neighbours and the community council informed of the works, particularly as they are in close proximity to a number of residential properties.
St Enoch Station - The design for St Enoch is nearing completion with final discussions being held as part of finalising the planning application for the new canopies. In parallel, initial dialogue has been entered into with the station framework contractors to ensure implementation can be delivered to best value, including examining whether some elements of the station works can be delivered in 2014, without impacting on the Commonwealth Games.
Buchanan St and Govan Stations - Designs for Buchanan Street and Govan are also nearing completion, with Govan programmed to be implemented as an integrated hub with the adjacent bus station and Fastlink. Buchanan Street will be implemented after works at St Enoch are completed in order to minimise the impact at the city centre stations. Further stations designs are planned for delivery from 2013 into 2014 through appointments using appropriate Lots from the Design and Technical Services Framework which was renewed earlier this year.
Station Refresh - the station refresh project, delivering both signage and minor works at all stations, has progressed well and is substantially complete. The outstanding roof works and some external signage that was dependent on planning approval is now progressing following recent planning approval. The delivery of the refresh works elevates all the stations to a consistent level of condition and branding in advance of the Commonwealth Games in 2014 and has been co-ordinated with and is complementary to the larger scale refurbishment of each station.
Escalators – Otis has completed the installation of 6 out of 28 new escalators, and is currently progressing installation at St Enoch and Govan Stations. The works at St Enoch concourse to platform escalators are due to be completed by the end of 2013 with all the escalators at Govan by summer 2014. The programme has been amended to minimise impact during the Commonwealth
Games. All previous concerns with the quality of workmanship have been rectified, and lessons learned implemented for the on-going and for future installations.
3.3 Ticketing
Software development work on the new fare collection system has been completed, as have several stages of testing, at both the Scheidt & Bachmann (S&B) facility in
Zilina, Slovakia and in our custom built test facility ‘Station 16’. Testing has involved both technical and operational staff as well as representatives from senior management.
An intensive period of in house staff training, supported by S&B, has also been completed. Feedback has been extremely positive and the staff members are all eager to have the new modern system in operation.
Also during this period the continued close working relationship between the
Ticketing Project team and Operations staff has defined the 50+ new and amended business processes needed to manage the new system.
PARTNERSHIP/28 JUNE 13/6870
Page 3 of 7

The Ticket Office Machines have been installed as well as the majority of TVMs.
These come into service on the completion of the ticketing transition process and have been securely covered until then. The remainder of the TVMs will replace the old passenger operated machines in situ over the coming months.
As part of our safety obligations, to minimise revenue leakage and in order to minimise general disruption, the final stage of the physical installation works will be undertaken during the quieter summer months for completion by the end of 2013.
This will be the most demanding element of these works both for the project team and for station staff, as it entails replacing the old magnetic turnstiles with new smart-enabled paddle gates on a station by station basis, whilst ensuring the system remains fully open for business. Works will all be conducted at night while the stations are closed, and the environment will be made good and fully secured prior to the start of business the following morning.
As the current ticketing system uses magnetic stripe technology and the new system will be wholly ITSO smartcard based, our transition strategy includes the use of disposable dual magnetic/smartcards. In order to minimise disruption and make this period of change as easy as possible for passengers, we have arranged to bring in temporary agency staff resources to provide additional customer support during and immediately after the period of gateline transition. Also, the removal of the old magnetic stripe system means we will no longer be able to offer 10 and 20 journey tickets and for the transition period these will be replaced with a 7 day and 28 day product. The challenge for our operations and project management teams cannot be under estimated and a great deal of pre planning has developed a robust solution.
During transition the ticket gates will remain physically open for exit. This will simplify the transition process and the new passenger experience. Revenue protection will be ensured by staffing the gates during this time. However, once the new gatelines in all stations have been installed, the gates will be physically closed and passengers will require to “tap” their smartcards both to enter the gates and to open them for exit.
At an agreed appropriate point after gateline completion, the TVMs will be brought into service and we will introduce reusable smartcards. These hard plastic cards can be personalised with passengers’ names and photos, ensuring that if they are lost or stolen they can be remotely ‘locked’ and the customer can be provided with a replacement. We will have additional temporary staff on hand during the initial period of operation of the TVMs to help customers become self-sufficient in their use.
We are continuing to refine our communications and marketing strategy ready for the launch of the new ticketing system. Preparations are well in hand to ensure that customers and staff are all fully aware of the on-going implementation process, the transition ticketing strategy and the benefits that the new system will ultimately deliver.
3.4 Infrastructure
A number of contracts awarded last year to improve priority sections of the infrastructure are now either complete or are approaching completion. These included: tunnel watersealing works between Kelvinhall and Partick; tunnel lining and water sealing works between Buchanan Street to Cowcaddens; and Phase 2 works at Broomloan Yard. It is expected that the latter element of these works will be completed by the end of summer 2013.
PARTNERSHIP/28 JUNE 13/6870
Page 4 of 7

Members will be aware that the subway operations were recently disrupted between
4 and 8 June 2013. During the planned tunnel lining repair work between Buchanan
Street to Cowcaddens, unforeseen ground conditions were encountered, which in essence left a significant (albeit localised) voiding behind the lining. This required a complete re-design of the ground support which involved void filling and grouting and then additional tunnel lining repairs. A number of lessons have been learned from this experience to build into future infrastructure works.
The development of the design for other areas of infrastructure improvements continues to progress including track shimming design, tunnel ramp outline design and turnout chamber outline design. These designs are also being co-ordinated with the rolling stock team to ensure they are compatible with the new rolling stock and system requirements.
The tender for the infrastructure asset renewal that includes watersealing & tunnel lining improvements, rail and trackbed renewals and drainage system refurbishments and upgrades was issued during early 2013 and despite significant market consultation and a number of contractors pre-qualifying, only one tender was received. This is currently being reviewed as to whether it is of sufficient quality and represents value for money. We are also considering an alternative strategy of retendering the works based on separate packages/lots. The current call-off maintenance contracts (water sealing and rail block replacement) will remain in place to ensure the system remains fit for purpose, which will require a further variation based on the already tendered rates.
3.5 Contractor safety
There are now seven Principal Contractors currently delivering the modernisation works, covering the Stations, Escalator, Infrastructure and Ticketing works.
The Contractors are demonstrating a collaborative proactive approach towards both
Quality and Health & Safety, and Contractors remain committed to delivering their works with a safety conscious attitude.
Over the last period there have been no reportable accidents.
The SPT Safety Department continue to carry out regular and frequent safety inspections with nine inspections on various contractors’ sites during May alone.
The continued close liaison between all SPT representatives and the various contractors will ensure that the minor issues identified during the inspections particularly at the start-up of new work are addressed in a timely fashion and not repeated.
The Project and Safety teams continue to be committed to the close engagement with the contractors to ensure the focus remains on Quality and Health & Safety.
Through lessons learned, shared experiences and initiatives there will be continual improvement and performance throughout the delivery period.
3.6 Accommodation and depot facilities
As part of the wider programme activities for subway modernisation the accommodation and depot facilities at Broomloan are being upgraded. The first phase of this has been completed with the new welfare/amenity block opened in
April 2013. The contract for the refurbishment of the main office accommodation area at Broomloan was approved at the Partnership meeting on
3 May 2013 and is due to commence on site in summer 2013. The decant of
PARTNERSHIP/28 JUNE 13/6870
Page 5 of 7

existing staff has been completed and pre-construction surveys (such as asbestos) are currently underway.
3.7 Funding
The capital plan for 2012/13 provided for a draw on the Subway Modernisation
Fund and/or borrowing in support of subway modernisation of £12.5 million and government grant of £6 million to fund the overall programme of £18.5 million.
Whilst the programme progressed across all workstreams, some financial slippage was experienced in 2012/13 with the final out-turn (subject to audit) being expenditure of £14.4 million, funded by a draw on the Subway
Modernisation Fund of £8.4 million and government grant of £6 million. Overall, the programme remains within the available budget and funding.
SPT has been successful in securing ERDF Funding of £1.2m in support of station improvement works at Govan, Ibrox, Cessnock and Bridge Street. This will be phased £0.45 million in 2013/14 and £0.75 million in 2014/15.
The 2013/14 Subway Modernisation budget was set at £11.7 million, with funding provided by a draw on the Subway Modernisation Fund and/or borrowing in support of subway modernisation of £5.7 million and government grant of £6 million.
4. Conclusions
The procurement phase for the new trains, signalling and control system is progressing well and two consortia/companies are currently progressing through the next phase of the procurement process.
The station refurbishment works have been completed at Partick (platform level) and works are on programme for completion at Ibrox and Kelvinhall Stations prior to the
Commonwealth Games.
The installation of new escalators has been completed at Hillhead and Buchanan St with works now progressing at St Enoch (platform to concourse) and Govan Stations.
The enabling works for the new subway smartcard system are mainly completed with the main installation works due to commence shortly for completion by the end of
2013.
The infrastructure tunnel lining works at Buchanan St to Cowcaddens are nearing completion, although unforeseen ground conditions encountered during the repair of the lining between Buchanan St to Cowcaddens resulted in significant operational disruption for 5 days.
The tender response on the infrastructure asset renewal contract has resulted in a single tender response and alternative strategies are being considered to ensure we achieve value for money, whilst assessing the single tender response.
Overall, the subway modernisation programme is progressing well and whilst there are some deviances and delays on short term milestones on individual projects (e.g tunnel works at Buchanan St to Cowcaddens), all workstreams are within the overall timeline for completion and budget.
PARTNERSHIP/28 JUNE 13/6870
Page 6 of 7

5. Partnership action
The Partnership is recommended to note:
•
the overall progress made since the last update to the Partnership in December
2012;
•
the progress on the most significant package of new trains, signalling and control systems with two companies/consortia submissions currently progressing through to the next stage in the procurement process;
•
the progress on ongoing infrastructure works in the tunnels, track and yard areas;
•
the ongoing programme of design and implementation of the station improvements including the completion at Partick platform level and progress on site at Kelvinhall and Ibrox;
•
that ticketing software development, physical enabling works, test and implementation planning are all well advanced, and that the main gateline transition work is due to commence shortly;
•
the completion of the new welfare/amenity block and recent award of contract for the refurbishment of accommodation at Broomloan;
•
the ongoing approach to learning from others which has included attendance at the UITP Congress in Geneva and specifically the visit to Lausanne M2 fully automated metro; and
•
the changes to the capital programme profile noted in paragraph 3.7 to reflect the more detailed delivery programmes that are now available for each project.
The Partnership is also recommended to award the extension of the contract for
Racon Management Services for specialist technical and commercial support in leading on the procurement of the new rolling stock package of works at an estimated budget of £350,000.
6. Consequences
Policy consequences
Legal consequences
Financial consequences
Personnel consequences
Social inclusion consequences
Risk consequences
The subway modernisation is a key objective of the Regional Transport Strategy.
None identified within this report.
Overall the proposed works remain within the capital and revenue budgets and subway modernisation business case.
None within this report.
None within this report.
None within this report. A detailed risk register is available for individual projects.
Name Eric Stewart Name Gordon Maclennan
Title Assistant Chief Executive
(Operations)
Title Chief Executive
For further information, please contact Charles Hoskins, Director Projects on 0141-333-3285 .
PARTNERSHIP/28 JUNE 13/6870
Page 7 of 7