Speech by Pat The Cope Gallagher T.D. Minister of State for Transport to International Rail Seminar

Date: 21 June 2006

Introduction

Good morning, ladies and gentlemen.

I am delighted to be here in London today to speak to you about Transport 21 – the Irish Government’s 34 billion Euro capital investment framework for transport for the next ten years.

I am sure that, for many of you, today will be about determining if there are business opportunities for you, your consultancy or your company in Transport 21. Alternatively, you may have an ongoing interest in doing business in Ireland and want to keep abreast of economic developments that may affect your investment decisions. Whatever your interests in Transport 21, I hope that in the next few minutes I can add to your understanding of what Transport 21 is all about.

Many of you will no doubt have heard or read something already about Transport 21. What I would like to do today is provide an overview of the proposals contained and highlight some of the main projects.

Transport 21 is the Government’s capital investment programme for transport infrastructure investment for the next ten years. With a budget of 34 billion Euro, Transport 21 is the largest infrastructural programme ever undertaken in the State. It translates into a staggering 9.4 million Euro invested in transport every single day for the next ten years.

Background to Transport 21
I would like to start by briefly setting out the background – in other words the origins of and reasons for embarking on this ten-year 34 billion Euro investment. Clearly one does not enter into an investment Programme of this scale lightly. Ireland has been changing rapidly in recent years, particularly since our present cycle of rapid economic growth started in the mid-90s. It is worth noting some of the major changes that have taken place already and are forecast for the coming years. For instance,

Our population has increased by 11% since 1996 to just over 4 million and is predicted to reach 4.7 million by 2016.
Latest predictions show our population at 5.3 million in 2020.
Employment grew from 1.2 million in 1991 to 1.9 million in 2004, an increase of over 60%.
Total employment is forecast to grow to 2.4 million in 2016, an increase of 23%.
Our current 4.5% unemployment rate is one of the lowest in the EU.
Private car ownership has increased by around 50% between 1991 and 2003. Despite this, our car ownership rates are still low for a developed economy, which points to further growth in the future.
Commuting distances to work are increasing, with some 1 in 5 of the workforce now commuting over 15 miles to work, compared with 1 in 10 in 1996.
The car remains the main mode of travel to work and accounts for around 3 in 5 of all trips.
The number of new houses being built each year has increased from around 30,000 in 1995 to around 77,000 currently, with a significant proportion of these in the hinterland areas around our cities.
Finally, the tonnage of goods transported by road has increased from 85 to 283 million tonnes over the 10-year period to 2004.

All of these trends have had a significant impact on the ability of our transport infrastructure and services to cope.

Pre - Transport 21 Investment
Since 1997 the Government has invested some 7.8 billion Euro in transport infrastructure. Some of the major road building projects funded by that investment include the:

the M-50 motorway bypass of Dublin -
the M1 motorway from Dublin to the border with Northern Ireland, which is almost complete and
the 5.6 kilometre Dublin Port Access Tunnel, which will open later this year, providing rapid toll-free motorway access for HGVs to Dublin Port.

Public transport projects funded include:

the construction of 2 Dublin light rail lines totalling some 24 kilometres in length, which opened in 2004,
the extension of Dublin’s DART electrified rail network and near doubling of the electric railcar fleet to 156 cars,
the purchase of 144 diesel railcars for commuter services, and
a major 15-year programme of modernisation of infrastructure on the national rail network, costing close to one billion Euro to date.

Increasingly, it is almost impossible to travel a significant distance without benefiting from a major project, which has already been completed.

However, despite investing 7.8 billion Euro, our ability to move goods and people has improved only marginally. The phenomenal growth of recent years in our population, workforce, housing and car ownership has served to swallow-up all improvements to our transport systems.

It became clear to the Government that a substantially greater level of commitment of funding over a long period was needed to deliver the scale of transport infrastructure needed now and for the coming years.

The continued expansion of our economy since the mid-90s and the confidence this has inspired, led to the Government, for the first time, committing to a ten-year funding arrangement for transport infrastructural investment. This has enabled the Department of Transport to commit to a number of high-profile projects that are the key to addressing, in a meaningful way, the capacity problems faced by our present transport infrastructure.

That is the background. So what will Transport 21 do that marks it out as different to the investment programmes that went before it ?

Transport 21 Overview
Transport 21 provides the level of investment necessary to develop a truly integrated National transport network. This is a key development. It is widely accepted that transport must be considered in a holistic way and not as an end in itself.

Crucially, unlike ever before, in Transport 21 we have a plan that is not just about individual high profile projects such as a Metro Rail System for Dublin, but is about the way in which the many different projects comprising Transport 21 as a whole are effectively and seamlessly integrated. In taking such an enlightened and farsighted approach, we can ensure that commuters have a highly efficient, cost effective and integrated network.

Strategies Underpinning Transport 21
Transport 21 is built around two key strategies – a Greater Dublin Strategy and a National Strategy.

The Dublin Strategy involves, mainly the transformation of the public transport systems in the Greater Dublin Area. This is to be achieved mainly through a major expansion of rail-based public transport infrastructure, a 60% increase in bus capacity and a near doubling of bus priority lanes.

National Strategy
The National Strategy involves the development of a high-quality road network with development of public transport in key strategic areas.

As part of this strategy the Irish government and the Northern Irish Government recognise the significant mutual benefits of working together on an all-Ireland basis.We have already been working together on an all-Ireland basis.We have already been working hard with our Northern colleagues to advance Transport projects that deliver concrete results for all the island’s citizens.

The two Governments have put a particular focus on infrastructure co-operation.We recognise that we are at a critical point in infrastructure investment on the island and that it makes sense to co-operate to deliver the most effective infrastructure for the island.The Irish Government is very serious about this.That is why in our new National Development plan which sets out a blueprint for National Investment for the 7 year period 2007 to 2013,will have a strong all-island dimension.

One example of this co-operation is the upgrade works which are being matched by the improvement works on the A5 in Northern island.This kind of complementarity will maximise the beneficial impact of the upgrade projects in both jurisdictions.
Investment in the national road network will focus initially on the completion of the Dublin Port Tunnel, and the inter-urban motorways linking Dublin with the Northern Ireland border and with the cities of Galway and Limerick to the West and Cork and Waterford to the South of the country. Our National Roads Authority is responsible for construction of the inter-urban motorways and it aims to have these completed by 2010. While much work has been done already on this, there are many more construction contracts yet to be awarded.

After 2010, the focus will shift from motorway building to the substantial upgrading of the remainder of the national primary road network. This will include, in particular, the development of a new road route, the Atlantic Corridor, connecting counties along the entire length of the Atlantic coast. The Atlantic Corridor will link with the National motorway network at Donegal,Sligo, Galway, Limerick, Cork and Waterford Cities. This will greatly increase the attractiveness of the North West and South of the Country as a location for business and tourism.

The National strategy will also see significant enhancement of public transport services throughout the country. Already all radial routes in the national network have been upgraded to continuous welded rail and Transport 21 will see further renewal of national railway infrastructure by Irish Rail, the State railway infrastructure manager and operator.

Transport 21 will fund new and expanded commuter rail services for Cork and Galway Cities. Galway City will have its first dedicated commuter rail service. Cork City’s commuter rail services will be expanded with new stations on the existing lines and the re-opening of the old Midleton railway line.

The Western Rail Corridor, some 110 kilometres of railway in the West of Ireland, will be re-opened in 4 phases between 2008 and 2014. Irish Rail will be responsible for these projects.

The modernisation of Irish Rail’s rolling stock will also be completed under Transport 21. Irish Rail has already started to take delivery of 67 new railway carriages for use on the Dublin to Cork City service. An order for 150 high specification railcars has also been placed for use on all other Intercity services. When this new rolling stock is in service, Irish Rail will have the most modern rail fleet in Europe.

Dublin Strategy
Turning to the Dublin Strategy, I said earlier that this will involve a transformation of the public transport systems in the Greater Dublin Area. I firmly believe that nothing less than a transformation will address the capacity, congestion and modal shift issues with which we are faced in the Greater Dublin Area.

Transport 21 will put in place an integrated rail-based public transport system for Dublin. There are a number of elements to this. Two metro lines are planned, Metro North and Metro West. Metro North will provide a high-speed link between Central Dublin and the airport and will also serve towns and suburbs along the route to the airport and beyond. Metro North is to be completed by 2012.

Metro West will be a Western orbital route around the outer suburbs of Dublin City, linking with Metro North. It will be completed in 4 phases, the first to be completed by 2010 and the last by 2014. Metro West will provide a real alternative for commuters that currently travel by private car. It is proposed to procure both Metro lines as PPP projects.

As I mentioned earlier, we already have 2 very successful light rail lines operating. These are known as Luas – meaning speed in the Irish language. These 2 lines carried over 20 million passengers in 2005, its first full year of operation. Transport 21 will fund 7 new Luas light rail projects. Six of these will link and extend the existing 2 lines. The seventh will be a new line linking the outer suburb of Lucan to the city and with Metro, suburban rail and other light rail lines. This new line will be built as a PPP project and is to be completed by 2013.

Our Railway Procurement Agency is responsible for both the Metro and Luas projects.

There is already an extensive suburban rail system in the Greater Dublin Area. A fleet of in excess of 100 modern railcars operate commuter services on 4 routes from Dublin City to surrounding Counties, while a fleet of 156 electric railcars operate a high frequency service to coastal suburbs and towns North and South of Dublin, on what is known as the DART network. Capacity has been greatly increased in recent years, but the scope for further expansion of services is severely restricted by the present cross-city rail infrastructure, as well as the limited number of train paths and station slots available.

Transport 21 will eliminate this capacity problem through a number of major projects. Firstly, a major new rail station will be constructed in Dublin’s Docklands area, close to the city centre. Secondly, commuter and intercity trains will be segregated on the southern route through the quadrupling of track as part of the Kildare Route Project. Thirdly, and perhaps most importantly, a new inter-connector rail tunnel from the West of the City to the Docklands area will be constructed.

This inter-connector tunnel is the vital “backbone” of an integrated public transport system for Dublin and key to optimising the benefits to be delivered through other elements of Transport 21. It will facilitate the extension of the DART electrified network to the Southern and Western commuter lines, as well as the old line to the town of Navan, which is to be re-opened. New electric railcars will be purchased to operate on this new Greater Dublin Area DART network.

Irish Rail is responsible for the Docklands Station, Kildare Route and Inter-connector projects.

I appreciate that this may be a lot of information to take in, in a short space of time. It is a dizzying array of new and extended rail lines. However, fear not help is at hand! A map is available on my Department’s website, which I think shows very clearly the extent of the rail network planned for Dublin under Transport 21. I recommend that you all visit the website and view this map. I think you will be greatly impressed.

One of the most striking features of Transport 21, which I think the map illustrates very well, is the extent to which the rail services planned under Transport 21 integrate with each other at various points, allowing users to get to virtually any part of the Greater Dublin Area. At the centre of this integration will be St. Stephen’s Green in the heart of Dublin. This will be the location of the main commuter rail transport hub. Metro, DART and Luas will all integrate at an underground central station located at St Stephen’s Green.

By 2016, when the transport infrastructure funded under Transport 21 is completed and fully operational, I expect a four-fold increase in DART and Suburban rail passenger numbers to 100 million per annum. I expect 100 million passengers to travel on the Luas light rail network and Metro lines.

This enhanced Greater Dublin Area Rail Network, combined with a 60% increase in bus capacity under Transport 21, will position public transport in the Greater Dublin Area to provide a viable and sustainable alternative to the private car. It has been estimated that during the morning peak hour in 2016, public transport will account for approximately a 44% modal share as against 28% at present. This would be a remarkable change from the present situation.

Conclusion
I am under no illusions as to the scale of the task to be done to deliver on the transport infrastructure set out in Transport 21. Neither am I for one moment under any illusions that non-delivery is an option. In other OECD countries, infrastructure of this scale and magnitude has traditionally been developed over considerably longer time periods. However, despite this there are precedents among the emerging ‘powerhouse’ economies for faster delivery of infrastructure. I am thinking chiefly of some of the Gulf States, China and the Asian ‘Tiger’ economies.

Bearing such examples in mind the State Agencies in Ireland have learned much about managing major infrastructural projects in recent years and that wealth of valuable experience gained will hold us in good stead.

The Government has been ‘fast out of the blocks’ on Transport 21 projects in the first few months of Transport 21’s implementation. The progress to date has been very real and reinforces the continued need for further sustained action underpinning the clear transport infrastructural investment objectives.

There is no doubt whatsoever in my mind that Transport 21 investment in roads and public transport is necessary if Ireland is to enjoy an infrastructure, which accommodates rather than hinders economic activity. Moreover, given the extended lead-time in terms of design and delivery of major transport infrastructure projects, the long-term investment horizon cultivated by the Government has been proven to be vindicated.

Although my enthusiasm for Transport 21 would allow me to speak all day about the benefits it will bring - for travellers, our economy, the environment and indeed for our business partners who choose to get involved in this exciting programme - I have borne in mind my promise to keep this speech short.

Before I finish up however, I would like to mention that a key element of Transport 21 is the continuation and expansion of the Public Private Partnership model, under which a number of our new national roads have been delivered effectively and within budget in recent years. Further road schemes and for the first time, public transport infrastructure, will be built as PPP projects under Transport 21. We would welcome the participation of foreign companies in these partnerships.
Thank you all for your attendance and taking the time to listen to me here today.