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HS2 case studies

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  • 1. The CompeteFor model is one that has worked for London 2012 and Crossrail and would be likely to be used for High Speed Two. West Midlands firms have used the approach successfully for London 2012 and can use this positive experience for HS2 procurement
  • 2. I: II I'- A‘ _ . a ,5, - “E= "E? 'IAiI%'t: '__'-; lDauhéI~ad-ik; ’;lE£i': iti . ' ‘ . , , . T: :_ 3-‘. am. -. §@§§§@§; §E§i~> . i hfieeaeaamaesas«; ~mamam _ . «v1 West Midlands High Speed Rail Business Event - Case Studies i Birmingham City Council lramlovmng pub! !! lnmpovl
  • 3. West Midlands High Speed Rail Business Event Case Study One Ashford, Kent - the impact of H81 case study introduction The only High Speed service currently operating in the UK is "High Speed One‘, the line connecting St Pancras lntemational station with the Channel Tunnel via Kent. It has dramatically decreased joumey times on the Eurostar intemational services and domestic rail services from Kent to London. One of the major place beneficiaries is Ashford in Kent, where the High Speed line has reduced the travel time between Ashford and London from 80 to 37 minutes. Ashford's connections: 0 Two high speed trains per hour run between Ashford and London all day. every day. - Eurostar operates a direct passenger service from Ashford to Paris, which takes just two hours. Lille is 57 minutes away. 0 Freight and passenger traffic passes through the Eurotunnel departure point at nearby Folkestone. taking just 35 minutes to Calais. o Ashford has excellent direct rail links to the rest of Kent and Sussex M: -p i-‘iey . . Motcrways A Roads Cr an nel Tunnel R3 ' D‘ It 2- Dcmest : Services - Existing Train Lines g. Ferry Clossing tr»
  • 4. High Speed One Map Ashford is now the fastest growing town between London and the Continent. enjoying rapid growth and investment since the announcement of the High Speed link. The town will double in size between 2001 and 2031, with 28,000 new jobs and 31,000 new homes planned, and a £2.5 billion investment programme in place to deliver the ambitious growth plans. Ashford - Best placed in Britain Ashford has heavily marketed it's location and the travel time of the new 37 minute service to London. It has promoted the idea of staying connected to the capital without the headache of London property prices and long commutes using the messages Best placed in Britain and Ashford - Closer than you think. Ashford lntemational Station Specifically. Ashford promotes the town's benefits for business investment as: - High speed connections to London and Europe o A prime location for companies conducting business in the UK and Europe 0 68% lower office property costs than London 0 More space for your money. a wide range of workspaces for all types of organisation and 2 million sq it planned office space 0 Superb skills pool - 70.000 workers within a 20-minute drive of Ashford town centre
  • 5. o Cost-effective salaries: 30% lower than London and 15%-20% less than the rest of the South East - Better quality of life for employees, larger residential properties for less Business Perceptions Locate in Kent; the county’s inward-investment agency annually surveys perceptions of 300 decision-makers including businesses. institutional investors, developers and advisers. The June 2010 results show that perceptions of Kent as a business location have improved markedly since the first survey was carried out in 2003: o 64% of respondents knew high-speed trains travelled from St Pancras to Ashford lntemational in 37 minutes - Maidstone and Ashford were the two preferred towns for business in Kent, polling 20% and 18% o 70 finns are looking at Ashford for a potential project o 56% of respondents believe that Kent has improved as a place to do business over the last four to five years, mainly because of connectivity improvements. - 57% feel that Kent will become more attractive as a place in which to do business in the next five years. c Property agents are reporting increasing interest from buyers across Kent. as well as those in London New Investment and Job Creation The advent of HS1 has led to considerable new investment and job creation in Ashford. A number of high profile examples are provided below: Hitachi Rail Group Maintenance Depot Hitachi Rail Group has been a major creator of new jobs in Ashford after investing in a state of the art maintenance depot to service and store its distinctive dark blue streamlined javelin trains. The new generation of high-speed commuter trains to London can reach speeds of up to 140mph and began operation in December 2009. Hitachi invested £260m in a twenty nine strong fleet. The maintenance depot has created 100 new jobs and reinforced confidence in Ashford as a place for investment and employment.
  • 6. Hitachi Rail Group Maintenance Depot. Ashford Relocating to Ashford A host of companies have chosen to relocate to Ashford in the past year, citing the speed of the new domestic high-speed rail services as a major factor. 0 Sagittarius, an award-winning digital design and marketing consultancy, had spent 30 years in Folkestone before moving to Ashford this autumn. settling into a town centre office just minutes from Ashford lntemational Station and its 37 minute high-speed rail service to London. Sagittarius Chief executive oflicer Paul Stephen said “Ashford has a real ‘can-do‘ business mentality. What's more it has incredible road and rail connectivity. The new 140 mph rail service to London is one of the main reasons why we chose to relocate to the town. The fast trains enable us to service clients in the capital with greater ease. ‘ New World Telecom. who install and maintain a range of communication systems to businesses and the public sector relocated from Kingston in Surrey to Ashford. smiths Medical lntemational Ltd which relocated its European HQ to a 36,295 sq ft office at the Eureka Business Park. The premises and also will serve as an important training and education centre for healtheare professionals and distributor customers.
  • 7. o Design and construction specialist Directline Structures built its own striking new HQ on the Orbital Park after moving form west Kent . The office boasts a host of environmentally-friendly features and the firm has won an award at the London and South East Constructing Excellence Awards. Judith Armitt. Managing Director of Ashford's Future, the agency overseeing the town's £2.5bn public and private sector growth programme, said an increasing number of national and lntemational companies are aware that Ashford is ‘best placed‘ to support their growing businesses in the 21’ century. ‘Ashford acts as a magnet for business because of. rather than despite of, continued economic uncertainties in the UK. Ashford is a thriving. expanding and self-confident place. the powerhouse economy of Kent. The launch of high-speed rail services to London in December 2009 has acted as a catalyst for the regeneration of the area. ” The Phoenix Building Eureka Park Opportunities for Binningham and the West Midlands Whilst every location has a different set of spatial. economic and social circumstances, the Ashford case study highlights some of the opportunities that High Speed 2 could bring to Birmingham and the West Midlands. Located at the heart of the national high speed rail network. with links not only to London and Europe but to the major northem cities of Manchester and Leeds and connections on to Scotland, Birmingham and the West Midlands will be well placed to attract new investment and jobs. The Hitachi Rail Group maintenance depot in Ashford demonstrates the benefits that a proposed HS2 maintenance depot in the Washwood Heath area of Birmingham
  • 8. could bring, whilst the development of stations in Birmingham city centre and an Interchange station at the NEC/ Binningham lntemational Airport could lead to significant investment and employment growth.
  • 9. West Midlands High Speed Rail Business Event Case Study Two CompeteFor London 2012 - Opening up Contract Opportunities Introduction This case study provides an overview of the London Olympic Games 2012 free brokerage service. CompeteFor, which enables businesses to compete for contract opportunities. and how a similar service could be used to help companies in the West Midlands win commercial contracts related to the development of High Speed 2. London 2012 Olympics The London 2012 Olympic Games and Paralympic Games offer a huge number of commercial opportunities for businesses. large and small. across the whole of Britain. The Olympic Games is the world’s biggest event with almost every country participating and three quarters taking part in the Paralympic Games. London 2012 is a once in a lifetime opportunity for businesses as the Olympic Delivery Authority (ODA) and London Organising Committee for the Olympic Games (LOCOG), plus their supply chains. are letting contracts valued up to £10 billion. Artist impression of the planned Olympic Site London 2012 The direct contracts procured by the ODA and LOCOG will generate an estimated 75.000 supply chain opportunities which exist across a number of different sectors.
  • 10. They range in value depending on their position in the supply chain, enabling businesses of all sizes to target contracts most suitable to their experience and capacity. The scale of the business opportunities and the need to match the best suppliers to these opportunities led to the creation of a dedicated online procurement brokering service called CompeteFor. CompeteFor CompeteFor was set up in 2008 as a free service that enables businesses to compete for contract opportunities linked to the London 2012 Games and other major public and private sector buying organisations. such as Transport for London and Crossrail. it has a specific focus on supply chain opportunities. CompeteFor is not a tendering system; but a brokerage service, matching buyers to find qualifying suppliers for a shortlist prior to entering into their standard tendering process. CompeteFor gives unique access to the many opportunities inithe London 2012 supply chain: - A free-of-charge, single. eariy-waming. source of Tier One major contracts with the ODA. plus Lower Tier Tenders - Enables businesses to identify potential partners for the formation of consortia and onward supply chains 0 Provides Buyers with access to a wider, more diverse Supplier base. and the tools to shortlist Suppliers to meet their specific needs 0 Assists businesses by giving them access to business support to make them ‘business ready’ for opportunities The diagram below shows just one example of how opportunities are generated by Olympic and Paralympic supply chains for the Aquatic Centre.
  • 11. ——~. t“. '13., — HEvl. lH; 0 FACIUTIES tj; -|‘l“"! .‘q1|‘l: fi>f sarmm is vwuccrlism Mum“ . m l‘* cums Aocouxzoranou 5"‘ Sm’ “T"lK“G scrmcts I-~ °‘°““5 roots va-: r.1r: wnt “Wt sisfiiéiléos Pmsmorracun _ p U, ” STWGE . , ieclmrmsvr mwrmc vmmgc Ii roumim mm: L ‘, — , .1. SIADONERV »- »‘, ,r; London 2012 Aquatic Centre Supply Chain Diagram West Midlands Companies Supplying London 2012 Up to September 2010 there were 9.500 registrations from the West Midlands on the 2012 CompeteFor system - the fourth highest regional total in the country. The original target was for West Midlands firms to capture London 2012 games business to the value of £400 million. By September 2010, the value of tenders for the London 2012 Games won in the West Midlands was £461 million - behind only London the South East and East of England. The majority of these tenders were won through the CompeteFor procurement system by firms based across the whole of the West Midlands. in total 200 companies from the region have won tenders to supply London 2012 either directly. or indirectly through business related to the Games. The majority are SMEs and there are likely to be more in the complex supply chains. In addition, there are still many projects yet to be commissioned. CompeteFor Key Facts 0 65% of contracts awarded so far by the ODA have gone to SMEs o 46% of suppliers that have won work with the ODA so far are based outside London (Source: LOCOG. Oct 2010)
  • 12. West Midland small and medium enterprises (SME's) that have successfully won contracts include: - GTech Surveys, Kenilworth — site surveys and investigations of the Olympic Park - Glenn Howells Architects, Birmingham - designer for section of the Athletes‘ Wlage. part of Stratford City development o Golden Bear Toys, Telford - contract to produce the two mascots for London 2012, "WenIock" and “MandevilIe' o Hickman & Love, Dudley — supplied steel mats for bridges and highways on the Olympic Park o Nullfire. Coventry_— supplied intumescent paint to Checkmate Fire Solutions. for use on Olympic Park. via CompeteFor o RMD Kwlk Form, Aldridge — construction support systems. for the Aquatics Centre and Olympic Park 0 Slick Seating. Redditch — won contract with ODA to supply seating to the Basketball Arena on the Olympic Park and 500 seats across 8 courts for the disabled tennis tournament o Stanford Industrial Flooring, West Bromwich - won tender to supply Carillion in the Media Centre on the Olympic Park. o Trinity Expert Systems Ltd, Coventry -— supplied software to LOCOG o Varley & Gulliver. Birmingham — specialist supplier of safety parapets for bridges. Have won three separate contracts, through CompeteFor to supply parapets for two bridges and an underpass on the Olympic Park o Barhale Construction. Walsall — contract with the ODA to design and install the primary sewer and pumping station on Olympic Park and pedestrian access from the station to the Greenway Route. - Wedgwood, Stoke — producing London 2012 commemorative and souvenir merchandise. o Zaun Ltd, Wolverhampton — supply of 17 km high security fencing around the Olympic Park as a sub-contractor and high security cladding and fixing systems for the multi-storey car park which services the Media Centre building on the Olympic Park. The London Crossrail Project The CompeteFor model is transferable and has been successfully applied to the London Crossrail project. At £16 billion, this is currently the largest construction and civil engineering project in Europe and comparable to the estimated cost of the first
  • 13. phase of the new high speed rail network linking central London to Binningham city centre, with two interchange stations for Heathrow and NEC/ Birmingham lntemational Airport and a connection to High Speed One. Crossrail is the new high frequency, cross city railway for London and the South East. When the service opens in 2017 Crossrail trains will run 118 km from Maidenhead and Heathrow in the west, through new twin-bore 21 km tunnels under central London to Shenfield and Abbey Wood in the east. It will bring an additional 1.5 million people within 45 minutes commuting distance of London's key business districts. . ... t.. .1*""‘~‘. ... l.. ="“ . .iJ. L§. 'li Shenliold Totle nham 5 even n Court Road Kings , ..— To Maidenhead Paddmgton isle of Dogs __ , ,’v __ River Thames Bond St Lu Abbey Whilechupr-I Wood LONDON Crossrail has a large number of opportunities for suppliers of all sizes to get involved and play a part in creating a new world-class railway. Crossrail Limited will be directly buying and managing a relatively small number of contracts with Tier 1 suppliers or contractors. They. in tum, will be buying a wide variety of services and works from a large number of smaller suppliers. with a online brokerage based on CompeteFor.