Duncan Sutherland, non-executive board member, HS2, on opportunities created for city development by the new high-speed line

1. Place Expo
City Region Investment Strategies
Prepare for HS2
Duncan Sutherland
Non-Executive Board Director, HS2
17 June 2014

2. • Outline of the project
• What HS2 Brings
• HS2 Ready .......City Investment
What we will cover

3. What is HS2 Ltd?
• Non Departmental Public Body
• Established in 2009 as an advisory body,
morphed into a delivery body

4. Project Budget Summary
• £42.6bn design and construction budget (July
2013 spending review)
• £ 21.4bn Phase One – London to Birmingham
• £ 21.2bn PhaseTwo –
Birmingham to Manchester and Leeds
• Approx £4.1bn property acquisition cost
(£2.7bn Phase One/£1.4bn PhaseTwo)
• £14.4bn contingency

5. • The ‘Y Network’
• Built in two phases
• 330 miles of track
• 9 HS2 stations
• Classic compatible trains
• Subject to “Higgins Report”
The Line of Route

6. • Preferred route announced in
January 2012
• Subsequently 14 major design
refinements made
• Hybrid Bill deposited at the end of
2013
• 2016/2017 Construction starts
• 2026 HS2 (Phase One) opens to
passengers
Phase One: London – West Midlands

7. London Euston – central London • London terminus station.
• Interchange with other rail services and London Underground.
• Existing station to be extended to accommodate 11 new HS2
platforms.
Old Oak Common – west London • New station built on existing railway land
• Interchange with Crossrail and Great Western Main Line
• 6 underground platforms
Birmingham Interchange - Solihull • New station built with connection, by people mover system, to
Birmingham International station,Airport and NEC
• Interchange to Birmingham International Rail Station, National
Birmingham Curzon Street • New station built incorporating the existing Grade 1 Curzon
Street Station building
• Pedestrian link with Birmingham Moor Street Station
Phase One HS2 Stations

8. Curzon Street Station
• 7 high speed platforms
• Terminus station for
Central Birmingham
• Catalyst for wider
regeneration of
Digbeth and Eastside

9. Curzon Street Station
Aerial view of Curzon Street Station

10. Birmingham Interchange - Solihull
• Bounded by A454,A45
and M42
• Connected to
Birmingham Airport,
NEC and Birmingham
International Railway
Station via a people
mover.
• Journey time to
London Euston 38
minutes

11. Phase Two:
Birmingham-Manchester / Birmingham-Leeds
• Initial proposed route announced in
January 2013
• Public consultation closed January
2014
• Decision on route expected late
2014
• Safeguarding consultation late 2014
• 2033 PhaseTwo open

12. Phase Two HS2 Stations
Manchester Airport • To be built in conjunction with Manchester Airport.
• Provides not only access to the airport, but also easy access to
HS2 from South Manchester & wider Cheshire area.
Manchester Piccadilly • New HS2 station build alongside existing station.
• Connections to regional rail services.
• Access to Metrolink & local/regional buses.
East Midlands Hub • New station between Nottingham and Derby atToton.
• Connections to many East Midlands cities.
Sheffield Meadowhall • New station between Meadowhall Shopping Centre & M1.
• Connections to Sheffield and many cities in SouthYorkshire.
Leeds New Lane • New station with a bridge linking to Leeds New Street station.
• Connections to other regional cities.
Additional HS2 destinations served by classic compatible services:
Stafford, Crewe (important interchange station), Runcorn, Liverpool,
Warrington,Wigan, Preston, Carlisle, Glasgow, Edinburgh,York,
Newcastle

13. Why the UK is investing in HS2

14. • Maximising
connectivity benefits
• Maximising
opportunities to
business from better
connectivity
• The freight industry
• Tourism
The Need - Connectivity

15. The Need - Connectivity
Destination Current
Journey Time
HS2 Journey
Time
Journey time
reduced by
Birmingham Curzon St 1:24 0:49 35 mins
EAST
East Midlands Hub n/a 0:51
Sheffield Meadowhall n/a 1:09
Leeds New Lane 2:12 1:22 50 mins
York 1:53 1:23 30 mins
Newcastle 2:52 2:18 34 mins
WEST
Crewe 1:30 0:58 32 mins
Manchester Piccadilly 2:08 1:08 1 hr
Liverpool 2:08 1:36 32 mins
Edinburgh 4:23 3:38 45 mins
Glasgow 4:08 3:38 30 mins
HS2 will link 8 of the UK’s 10 largest cities, serving 1 in 5 of the UK population
Key journey times to/from London once PhaseTwo opens

16. The Need - Connectivity
Journey Current
Journey Time
HS2 Journey
Time
Journey time
reduced by
Birmingham/Newcastle uponTyne 3.14 2.07 1.07
Birmingham /Leeds 1.58 57mins 1.01
Birmingham/Sheffield 1.11 48mins 23mins
Birmingham/Nottingham 1.13 36 37mins
Birmingham/Manchester 1.28 41mins 47mins
Nottingham/Newcastle uponTyne 2.59 2.03 56mins
Nottingham/Leeds 2.03 46mins 1.17
Nottingham/York 1.55 53mins 1.02
Sheffield/Newcastle uponTyne 2.13 1.37 36mins
Sheffield/York 53mins 33mins 20mins
Sheffield /Leeds 41mins 27mins 14mins
HS2 will link 8 of the UK’s 10 largest cities, serving 1 in 5 of the UK population
Key journey times between Midlands/North once PhaseTwo opens

17. • 64% of businesses expect
HS2 to have a positive
impact on UK private sector
growth
• 71% of the general public
think that HS2 will positively
benefit Midlands
• 66% think that HS2 will
positively benefit the North
Populus, Jan 2013
CBI/KMPG Infrastructure Survey 2012
The Need - Growth

18. The Need - Growth
Economic Growth
▪ HS2 will be an engine for growth that will generate jobs, rebalance the
economy and secure the country’s future prosperity
Jobs & employment
▪ Phase One is expected to support around 40,000 jobs (9,000
construction jobs, 1,500 permanent jobs and 30,000 jobs in station
redevelopment areas)
Regional Development
▪ Birmingham Curzon St will be at the centre of a massive regeneration
scheme planned for the east of city
▪ Old Oak Common station will transform derelict industrial land into
homes, offices and commercial space

19. The Need - Regeneration
• Unlocking
development
potential
• Creating
opportunities
• Aligning resources
& policies
• Attracting
investment &
funding

20. • HS1 has seen regeneration at
Ebbsfleet, Stratford and Kings Cross
worth £10bn, plus wider economic
benefits of £3.8bn
• Lille has developed a major
commercial centre around its new
station
• Crossrail could help create additional
residential and commercial value of up
to £5.5bn between 2012 and 2021
• HS2 Ltd is working with Core Cities,
London Boroughs and other
stakeholders to maximise the
regeneration opportunities
The Need - Regeneration

21. Station investment in major cities can
have significant impact
21
Station investment
Direct land
redevelopment
Public realm
enhancements
Improved image and
confidence in area
Developer interest
New higher value
developments
Increased land value
Additional jobs, GVA, rateable value
The value of station investment, Steer Davies Gleave, November 2011

22. The extent to which economic benefits are
realised depends on a range of wider factors
Investing in a new station is necessary, but not sufficient…
Wider economic impact will depend upon:
• Urban realm
• Integration with wider transport networks
• Passenger experience
• Commercial opportunities

23. Case Study - St Pancras
• Cost £800 million
• Annual footfall over 40 million
• 23% of people using St Pancras are not
travellers but there to eat, drink, shop &
meet
• Average dwell time of 27 minutes – more
than other UK stations
• 90,000 sq ft of retail space (55 units) with
average spend ~ £12
• Important contribution to regeneration of
Kings Cross environ and a significant
element of the additional impact of
regeneration of HS1 ~ £10 billion
• Accompanied by restoration and opening of
5* Marriot Renaissance hotel
• Popular film & TV location!

24. Lille Europe
• Lille-Europe and Lille Flandres
next door to each other in the
city centre.
• Both stations well-integrated
into existing surface transport
infrastructure by buses and
tramways
• Stations linked by EuraLille
which has grown into the third
biggest business centre in
France over the last decade.
• New urban district of around 70
hectares of offices, apartments,
hotels and a shopping mall.

25. Gare de Creusot TGV
• On the TGV Sud, outside the city,
in the town of Écuisses
• Accessible by car & local public
transport links for nearby regional
cities
• Served by very few TGVs and
produces little business
• Opened in 1981, expected to
regenerate old industrial area by
creating a local centre of activity,
but lack of existing business
activity appears to have deterred
start-ups

26. HSR stations can be catalyst for wider
benefits, but can’t create them out of nothing
• Does not happen without co-ordination and drive
• Integrated national and local proposals are required
• Public control of land is important
• Proactive planning policy/ incentives
• Accessibility to local public transport/ road networks
• Focussed investment in local infrastructure

27.
HS2 Plus – Sir David Higgins Report
• Cost estimates for constructing Phase One confirmed as realistic
• Maximise redevelopment of Euston station by generating private
sector investment that can reduce the overall burden on the
taxpayer.
• Accelerate PhaseTwo to span a further 43 miles to a new
transport hub at Crewe 6 years earlier than planned.

28. HS2 Plus – Sir David Higgins Report cont.
• Following the Higgins Report, the Government has decided that the
HS1-HS2 link will be removed from the hybrid Bill and withdrawn from
safeguarding (Government has commisioned a study in to options to
improve connections to the continent)
• HS2 to form part of regeneration of economies and communities
across the North
• Reject thoughts on cut backs on planned mitigation measures

29. HS2 Growth Task Force Report
• Created in 2013 to advise the Government on how to maximise
the return from the investment in HS2
• A ‘business as usual’ approach will not be enough
• Getting our cities ready
o Local authorities should lead on the development of HS2 Growth Strategies and
set up local bodies to deliver these strategies with Government support
• Getting our transport network ready
o Government, HS2 Ltd and local partners must act to examine how HS2 can be
integrated into existing local and regional transport networks
• Getting our people ready
o Government to make railway engineering and advanced construction skills a
national priority.

30. • Getting our businesses ready
o HS2 Ltd to set new standards for industry engagement and collaborative working
through forthcoming procurement strategy
o Businesses to seize the opportunities available, supported by local authorities and
Local Enterprise Partnerships
• The Government response
o An initial statement from DfT Secretary of State welcomed the report and vowed
to consider the recommendations
o An expanded response will be produced at a later stage possibly as part of the
Second Reading of the hybrid Bill at the end of April
HS2 Growth Task Force Report

31. Further information, and route plans:
www.hs2.org.uk