HS2 Cost Overruns: Project Update & Budget Concerns
HS2 Project Faces reset as New Boss Targets Cost Control and Scraps ‘Gold Plating’
Table of Contents
The controversial HS2 high-speed rail project is undergoing a notable shift in direction under its new leadership, with a focus on cost control and a move away from aspiring, possibly expensive features. HS2’s recently appointed chief executive, Michael Wild, is aiming for a “reset” of the project, prioritizing practicality over extravagance.
Concerns over Speed and Cost
During a recent appearance before the transport select committee, Wild acknowledged the potential benefits of higher speeds but questioned the necessity of pursuing the absolute fastest railway in a country the size of the UK. “It is hard to understand why there was such zealotry about the highest-speed railway in a relatively small country,” he stated.
HS2 is currently designed for a maximum speed of 225 miles per hour. Wild has even suggested a phased rollout, potentially starting with lower speeds to expedite testing and bring services online sooner. This pragmatic approach signals a departure from the original vision of a cutting-edge, ultra-fast rail line.
Cutting Costs: no More ‘Gold Plating’
A key element of Wild’s strategy is eliminating what he terms “gold plating” – unnecessary additions and “first-of-a-kind technology” that drive up costs. He expressed confidence in his ability to keep budgets under control, emphasizing a more disciplined approach to project management.
Wild also highlighted the interconnectedness of major contractors working on multiple government projects, suggesting they are motivated to cooperate with his plans. He noted these firms are involved in significant undertakings like the Sizewell C nuclear power station and upgrades to the National Grid, creating a broader incentive for success.
Examples of Scrapped Features
Concrete examples of cost-cutting measures are already emerging. Wild has already removed features deemed excessive, such as air-conditioned platforms initially planned for the London Euston terminus. As Hendy pointed out, “Even Saudi Arabia doesn’t have air-conditioned platforms.” This illustrates a commitment to prioritizing essential functionality over luxury amenities.
Industry Cooperation Expected
Industry experts anticipate cooperation from contractors. With substantial contracts on the horizon for projects like Sizewell C and National grid upgrades, firms are expected to “lean in” to Wild’s plans for HS2. This suggests a willingness within the industry to support a more realistic and financially sustainable approach to the high-speed rail project.