Transport for Wales Board Meeting Minutes - 20 March 2025

20 March 2025

09:00 - 16:00

Venue - Llys Cadwyn and Teams

Scott Waddington (Chair), Alun Bowen, Heather Clash, and James Price, Louise Cheeseman and Vinay Parmar.

Ian Lucas (Associate NED), Stephen Morgan, Sam Hadley (TfW), Peter McDonald (Welsh Government), Andrew Morgan (WLGA) and Alan McCarthy (Unite).

The Chair noted apologies from Vernon Everitt and Rhian Langham.

A quorum being present, the Chair welcomed everyone to the meeting and declared it open.

None.

The minutes of the TfW Board meeting of 20 February 2025 were approved as a true and accurate record. The Actions Log was noted.

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The Board discussed a recent journey taken using a poplar ride request service noting the driver at first responded very bluntly when approached with a query on the booked destination. While the service received improved once the journey began, the first impression caused discomfort. The Board discussed how this can impact customer perception and potential willingness to use a service, noting small gestures can create very different perceptions.

The Board noted a recent visit to Fabian Way to assess the proposed depot site for hydrogen busses. The Board noted that hydrogen busses are being used in Belfast with only two depots fir refuelling. It was noted that TfL are running trials with 20 hydrogen busses and offered to arrange a visit for TfW to understand the introduction of hydrogen busses on routes [Action Louise Cheeseman / Seamus Scallon].

There has been a general increase in incidents and assaults most occurring in station environments and on trains. The Board noted an increase in the occurrence of assaults on trains on event days. There is also an increase in workforce incidents attributed to train colleagues caused by error and distraction. The Board discussed two incidents in Pullman Rail involving bruising to a hand and a forklift incident, advising a monthly meeting is now in place with the Health and Safety manager to monitor the recovery plan and work through development.

The Board discussed the introduction of new ‘zero harm’ principles and in light of the recent increase in reported incidents, queried the percentage of colleague’s wearing body worn cameras whilst on the network. The Board were advised that there is a lack of available equipment and numerous system failures resulting in less than 10% of colleagues utilising equipment and noted there have been issues around colleagues remembering to activate body worn cameras when incidents occur. The Board agreed that an analysis of incidents reported against available footage should be undertaken [Action Seamus Scallon] and were advised that an assessment of new hardware is being reviewed to improve the availability of footage, noting that unless footage is shared with British Transport Police (BTP), evidence is lost quickly. The Board considered the role of Artificial Intelligence (AI) in leveraging new technology and encouraged the Safety team to consider using available AI technology.

The Board noted and discussed the Margam incident update paper provided in response to ORR’s recently released investigation findings.

The Board received an update on Tier One and Two risks and were advised a session to discuss the new risk register format at ELT has been arranged. The Board were advised that the Audit and Risk Committee has approved the risk strategy and a risk appetite statement session will be required at Board [Action Stephen Morgan / Jeremy Morgan]. The Board were updated on people development within risk and were advised an apprentice of two years has now been made a full-time member of the team. The Board congratulated the team on this success.

The Board received an overview of the Chief Executive Officers Report and discussed:

• The development of the North Wales Metro and potential quick wins with Network Rail (NR) to bring services in North Wales forward.
• The availability of rolling stock to service North Wales and the need to work through available budget to deliver this, noting a lack of available rolling stock in the UK and the benefits of using Class 153s and 158s in North Wales.
• Maintenance of Class 153s out of Llandore to allow redeployment of Class 197s in North Wales with a small fleet of Class 158s run out of Crewe.
• Rolling Stock capacity and the need to discuss future growth on the railway with Welsh Government (WG) to ensure capacity grows with demand, noting a need to provide a long run of numbers on a net subsidy basis [Action Heather Clash, James Price, and Sam Hadley].
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• Integration of colleagues into TfW culture throughout the development of the bus franchising programme and the cultural differences could be inherited from existing bus operators and the accountability they will hold.
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• Balancing the implementation of bus franchising and the introduction of hydrogen busses.
• The Board noted strong operational rail performance across the network for rail period 12 including the cross borders network and CVL. Timetables are working well, noting when infrastructure is operating as intended servicing timetables becomes achievable. The Board also NR covering staffing for signal boxes is akin to TfW ensuring drivers are available to operate routes.
• Cancelations having halved in part due and Class 756s performing well on the CVL.
• Improved CAF output from the Chester depot, noting improvements have correlated with the implemented improvement plan.
• Coryton line performance was noted to be poor since new timetable implementation and a revised timetable plan to rectify issues.
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• GBR White Paper - the Board discussed ways of working between TfW, WG and NR, exemptions from current heavily regulated ways of working in terms of competition aspect and bringing track to train closer together with the potential for a joint venture with NR.
• Fares - the Board discussed the potential to reduce tares on certain routes during quiet periods to encourage greater footfall, noting a key driver of this is to reduce subsidy through increasing use of the network and discussed an airline style fair system when filling routes to North Wales.

The Board noted the management accounts for TfW for February 2024. The Board were advised that the funding position is being confirmed with WG and it is anticipated that the books will be balanced for end-of-year. REDACTED.

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The Board discussed rolling stock and IFRS16, REDACTED.

The Board discussed funding gaps for 2025-2026, noting WG will be able to bring forward spend of capital into this year of £30m into the CVL which reduces pressure on next year’s funding gap REDACTED.

The Board were advised TfW’s growth factor for 2025-2026 is 15% against an industry average of 5% with average carriage occupancy of 16.8%, noting higher passenger volume and high availability of carriage capacity there is opportunity to grow. The Board discussed taking two separate views of growth, one driven by history and industry and another that demonstrates what TfW have done and want to achieve. The Board agreed a retrospective analysis that plots industry narrative against what TfW have done to provide a gap analysis that then plots future steps for growth would be beneficial [Action Heather Clash]. The Board discussed the impact of capacity growth on reducing WG subsidy and potential changes in future WG policy. The Board discussed creative opportunity, including using underspend at year end to run alternative campaigns to further drive revenue growth. 

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The Board received an update and discussed:

• The Energisation event from Caerphilly to Cardiff beginning in April, noting earthing issues have been resolved.
• Second half of Canton charging and back-up supplies for CVL is due in August.
• Signalling review and subsequent re-sequencing to reduce risks where issues occur.
• £0.5m savings on target costs and corporate efficiency.
• Improvements on Class 756 beacon read issues, noting one beacon failure in March and options for permanent fixes.
• EIS plans for Coryton and Caerphilly.
• Class 398 testing at RIDC and completion of homologation noting 1,750 miles of testing with no faults identified.

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TfW Rail - the previous meeting focussed on performance, lower performing lines and ongoing work to improve service, marketing, Pay as You Go (PAYG} extending further south and north, noting tap on/off being extended as far as Swansea.

TfW Fibre - the main focus of the recent meeting was on the sales pipeline and a focus on developing core partnerships.

The Board received an overview of discussions at the recent Audit and Risk Committee meeting, noting an update from external auditors and revised counter fraud strategy which will be returning to TfW Board in June/July.

The Board received an update on discussion at the Advisory panel, noting discussion was focussed on transport investigations, strategies to minimize tare evasion, including third party companies issuing fines of the TfW network. [Action - James Price, Lewis Brencher and Sam Hadley to review work of panel].

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The Board were advised the WG have commenced their search for a new TfW Chair as Scott Waddington will be stepping down from his post later this year. The new Chair will likely commence their appointment by September 2025.

There being no further business, the Chair thanked members for their contributions and declared the meeting closed.