I wonder what build up of demand is expected by the funders of this service, and how quickly they expect the passenger numbers to grow?
I have used two sources for the information below -
The original Wiltshire Council LSTF▸ application and a
subsequent report to Wiltshire Council Cabinet.Quantifiable benefits ^ Rail service improvements
The main benefits of the rail element are providing a rail service for Melksham and providing significantly improved journey times between western Wiltshire and Swindon that are competitive with car travel while removing the need to change trains at Bath.
Demand forecasting is difficult in a situation which is effectively a rail re-opening, given the large proportionate change in rail service provision. The Council has reviewed a number of forecasts of different scheme variants to come to its view relative to the chosen option. Demand for the service is expected to be about 45,000 passengers per annum (ppa) in the first year, rising through 90,000ppa to reach about 120,000ppa after five years. Resulting revenues are similarly expected to increase from ^220,000 per annum to about ^600,000 per annum.
Benefits (largely reductions in waiting time and interchange penalties) accrue to both business and non-business sectors in the ratio 40:60 and are expected to be around ^700,000 per annum. This gives an overall benefit to cost ratio of around 2, indicating ^high^ value for money, solely on the benefits from the rail improvements, and not including the benefits associated with the complementary measures.
As part of the LSTF bid,
FGW▸ identified the following three year subsidy requirement if the train service commenced in May 2013 (November 2011 prices):
2013/14 ^0.572m
2014/15 ^0.603m
2015/16 ^0.159m
Obviously, the service is now almost certain (touch wood) to commence in December 2013, and that shift in dates should be bourne in mind when assessing the figures.
Rail service improvements
Wiltshire Council has made the commitment to provide a maximum subsidy outside of the LSTF period of ^250,000 for the provision of the improved rail service in 2015/16. The precise level of this subsidy will be determined in close cooperation with the train operating company ^ the indicative level of subsidy for 2015/16 is ^160,000 (November 2011 prices).
Current projections indicate that the service would likely require less revenue support after 2015/16 and therefore discussions have taken place between Wiltshire Council and the DfT» to confirm that, subject to successful service in years 1 to 3, consideration would be given to incorporating the service into DfT assuming responsibility for ongoing funding under the published policy for local and regional rail services.
Interestingly, although I cant provide a link as the
Save The Train blog archive is no longer available, the fully costed report on a Westbury-Swindon service at similar frequency levels to the forthcoming service that
STT▸ published and was promoting between 2006-2008 also showed a very similar move towards "break-even" in the first years, along with little or no subsidy being required after that.
Although that was unfortunately rejected back then thus setting us back a few years, perhaps it is better that we are moving forward together now with a proposal that all involved from
WC▸ , FGW through to the
CRP▸ and local groups such as
MRDG» ,
WWRUG» , Westbury Train Watch and others, backed by key figures such as
MPs▸ Duncan Hames and his collegues, can agree should grow, succeed and are incentivised to help ensure that it does.