1 High Potential Opportunity - PowerPoint Presentation

1. 1High Potential OpportunityRailPassenger and freight rolling stock supply chain in Doncaster

2. Executive Summary: An opportunity to exploit the UK Passenger and Freight Rolling Stock Opportunity 2UK rail operators are seeking to procure £35bn of new equipment and services over the next 15 years. This means expanding the supply-chain by 140%. The UK is building a hub in Doncaster to connect businesses to these opportunities.  OPPORTUNITYA national rail infrastructure pipeline worth over £100bn – the greatest investment in the sector in over a centuryGovernment’s National Infrastructure Strategy 2020 set out record levels of investment in strategic railThe need to replace an ageing rolling stock fleet: Average age of freight rolling stock in UK is 25 years and increasingThe UK’s new traction decarbonisation network strategy requires the removal of diesel-powered vehicles from the networkThe demand for £35bn of new equipment and services is driven by:Plug supply chain gaps – the UK Imported over £500m of rolling stock products in 2019 from outside the EU aloneHigh Speed 2, Transport for the North and East West Rail are just some of the major pipeline UK rail projects aiming to build capacityOpportunities to complement and partner suppliers of these major projects - identify supply chain gaps or manufacturing deficits, introduce new technology, or target opportunitiesInvestment levels bringing significant new supply chain opportunities with capex totalling over £100 billionOpportunity to replace 3,700 diesel-powered passenger vehicles with electric or alternate powertrainsOperators predict that between 5,500 - 12,000 new vehicles will be required over the next 30 years

3. 3The UK offers an integrated supply chain and a skilled rail workforce, all at competitive costs... …We provide professional support to investors at both national and local levelsExecutive Summary: …which you can take advantage of through the unique strengths and capabilities in rail and rolling stock in DoncasterAn internationally-competitive cost base against all key metrics for investing rail companiesThe National College for Advanced Transport & Infrastructure shares its home in Doncaster with more than 20 major rail companies – with industry led training supplying you with the rail workforce of the futureA highly-integrated supply chain, with over 50 rail companies in the Doncaster region aloneRail has been a major part of Doncaster’s economy for over 150 years: a strong infrastructure includes iPortrail, at the heart of the UK’s intermodal supply chain. The region offers a rail cluster of 50 companies and 8,000 rail employeesAccess to further significant opportunity in other European markets is also easy through the UK’s logistics infrastructureAs the place that created high-speed rail, Doncaster is also at the centre of developing the next generation of rail travel and rolling stock with a high-speed college and numerous suppliers that are key to delivering HS2 and the Northern Powerhouse railwayA new £14m Network Rail facility in Doncaster bringing highly skilled teams across the region together

4. Unrivalled Infrastructure InvestmentRolling Stock Components: Passenger and FreightEasy Access to Service Nearby MarketsRecent Government and private sector commitments present a clear pipeline of opportunity for rail suppliers like you. Click below to find out more about the key opportunities for your business4A Clear Pipeline of Opportunity in Both Size and Scale…Traction Decarbonisation Strategy

5. A significant pipeline of projects offering substantial opportunities for investors… High Speed 2Transport for the NorthTransport for LondonEast West RailRegional Light Rail SystemsUK investment in Rail is the highest in Europe –investing over £5.3 billion per year on mainline rail £47.5 billion will be spent by Network Rail from 2019-2024, of which annually, £7 billion is spent on work services on work Transport for London Capex of c.£1.33bn per annum for London Underground and Overground Rail High Speed 2 is Europe’s largest infrastructure project with a forecast total cost in the range of £72.2 billion - £97.9 billion – creating thousands of opportunities within the supply chainOperators predict the need for between 5,500 – 12,000 new vehicles over the next 30 years The National Infrastructure and Construction Pipeline outlines over £123 billion of all forms of transport investment in the pipeline, including 31 priority rail projects…plus substantial infrastructure spend throughout the network5An infrastructure pipeline worth more than £100bn… the greatest investment for over a centurySource: Analysis of the National Infrastructure and Construction Pipeline – Nov 2018;Department for Transport, HS2 Cost Facts, 2019;Transport for London, Budget 2020/21* Some values converted from €Passenger and FreightInfrastructureAccess to MarketsTraction Decarbonisation

6. 6Rail is set to play a key role in achieving the UK’s 2050 net zero target for carbon emissionsPassenger and FreightInfrastructureAccess to MarketsTransport is the largest source of carbon dioxide emissions in the UK, accounting for 34% in 2019. Rail accounted for just accounted for 1.4% of total transport emissions but must still significantly decarbonise in order to play a key role in achieving the net zero target.The OpportunityRemoving diesel-only trains from the networkWhile 70% of the passenger rail fleet is electric, there are still around 3,700 diesel-powered vehicles on the network, and most of the freight fleet is diesel. These will need to be replaced with electric or alternate powertrains in lines where electrification is not suitable. Transport Decarbonisation PlanNetwork Rail has outlined national recommendations for optimum decarbonisation technology deployment – electrification, hydrogen and battery – on the unelectrified network. Network Rail’s recommendations will inform decisions about the scale and pace of rail decarbonisation as part of the Department for Transport’s holistic Transport Decarbonisation Plan to be published in 2021.A new traction decarbonisation network strategy signals substantial opportunity Traction DecarbonisationUp to 13,000km of electrification required to decarbonise UK rail networkSource: DfT: Decarbonising Transport, Setting the Challenge, March 2020BEIS: 2019 UK greenhouse gas emissions, March 2020

7. 7A significant value in rolling stock imports, ripe for substitution... …with opportunities to improve on cost, speed, and quality Top Rail Imports (Non-EU)Value £m 2019Self-propelled railway coaches273Parts of locomotives or rolling stock148Containers for the transport of fluids82Railway track fixtures and fittings 9Railway maintenance vehicles4£516 million of rail imports from outside the EU alone…£3,396£873£259UK Regional Import Density of Non-Automotive Transport Equipment (£m, Global)And new opportunities to partner through major infrastructure projectsAlstom TransportBombardier Transportation UK*Hitachi Rail EuropePatentes Talgo Siemens CAFWill all be procuring supply *Alstom completed the acquisition of Bombardier Transportation in January 2021Passenger and FreightInfrastructureAccess to MarketsTraction Decarbonisation

8. 8And significant markets only hours away Doncaster’s unrivalled logistics infrastructure offers easy access to supply leading European markets and beyond…<2 hrs to nearest ports of Teesport and Imminghamand all main UK deep sea ports within 7 hours… giving easy access to markets further afieldPassenger and FreightInfrastructureAccess to MarketsTraction DecarbonisationForecast Transit Times (hrs)Planned stimulus for rail sector in nearby marketsItalyItaly is investing an additional €28bn in rail infrastructure between 2019-2023. FranceThe French Government’s Recovery Plan includes €4.7bn to support and develop railway transportation. GermanyGermany is doubling its annual investment in rail infrastructure to €3bn in the medium term and €4bn by 2030.Source: International Rail Journal, Italy approves €28bn infrastructure investment hike, Jul 2019;KPMG: France, Government measures in response to COVID-19, Sep 2020;International Rail Journal: Germany commits to increasing passenger and freight on rail, Jul 2020

9. 9DONCASTER AND THE UKThe UK has significant expertise in rail at locations like York, Derby, & Doncaster. Read on to see how you can capitalise on this opportunity… SUPPLY CHAINSKILLS, INNOVATION & RESEARCHCOST PROFILEINDUSTRY NETWORKSThe compelling case that makes Doncaster the right choice for your business:

10. Click any of the options to the right to find out more about Doncaster’s supply chain capabilities and the world-leading cluster of international rail operations that you can become a part of. UK Logistics NetworkIntermodal Freight with iPort10ClusterWith a highly-consolidated supply chain, offering you an easy fitCustomers to serve, suppliers to purchase from, and a clear industry gap currently serviced by imports…. iPort

11. Doncaster’s location at the heart of the UK allows for seamless access, and rapid freight distribution between land, sea and air11And a fully integrated logistics networkDIRECT ACCESS TO LOCATIONS WORLDWIDEDoncaster is in close proximity to Manchester Airport, which includes a purpose built World Freight Terminal200+Global DestinationsCONNECTING YOU TO CUSTOMERS AND SUPPLIERS BY ROAD…5 major motorways…… AND RAILDoncaster is a major station on the UK’s high-speed, north-south main line with excellent connectivity to all major UK cities & EuropeDoncaster Sheffield Airport also offers more than 40 international destinations, and is becoming a major cargo hub109,000Tonnes of Freight in 2019The global gateway to the North of England is located at the heart of the UK’s motorway networkDestinationMilesRail Freight Depot0.7iPort Logistics Park3.3Doncaster Sheffield Airport7.7Sheffield22Leeds34DestinationMilesHull43Manchester55Newcastle116Birmingham98London175Doncaster to:Travel TimeSheffield0.5hrsLeedsManchester1.5hrsNewcastleBirminghamLondonParis*4.5hrs*2.5 hours from London St. Pancras via Eurostar

12. …creating new business opportunities by supporting integration between suppliers and customers 12Access to iPort – the UK’s ideal intermodal freight solutionSource: www.iportrail.com/iportSitting at the heart of the UK’s intermodal supply chain, iPort is a 6m square feet development on the outskirts of Doncaster with a rail connected terminal specialising in intermodal freight transport. The transport hub is designed to provide the most efficient and cost effective supply chain solutions, linking suppliers via air, sea and land transportation via rail and road locally, nationally and internationally.ACRES FOR UP TO6 MILLION SQ FT337PLANNING CONSENT FOR24/7STORAGE / DISTRIBUTION USE3ALREADY COMMITTEDMILLION SQ FT

13. A highly-integrated supply chain into which rail component manufacturers can easily fit13And join a vibrant cluster of leading international firmsDoncaster- 150 years as a centre of excellence: Rail engineering; Manufacture, refurbishment, and maintenance of rolling stockProviding a clear customer base…..… and a strong supplier base from which to purchase….……..…withproximity to other UK Rail clusters in York (65km) & Derby (80km)20kmDONCASTER RAIL FIRMSVolker RailFreightlinerUnipart RailGB RailfreightWabtec CorporationDB Cargo

14. All the relevant technical and vocational skills you need, coupled with world-class research to underpin your success today, and in the future……click the icons to the right to find out more about how our people and institutions can support your rail businessSkillsWorld Class Research 14Access world-class research and the skills you need to succeed

15. The highly skilled, local workforce has already played a major role in attracting new rail investment and is critical to success in the rail sector.15The region has the skills and capabilities you need to succeed in the rail sector…coupled with long term Government investment to provide the skills for new technology, fleet types, larger fleets and electrification. The National College for Advanced Transport & Infrastructure educating the rail specialists of tomorrow. Home to more than 20 major rail companies specialising in traction, rolling stock, advanced manufacturing, infrastructure, and power supply and distribution. Industry-led training ensuring a workforce ready for the real working world of rail.The new £25m State Of The Art College has the capacity to offer high level vocational courses to over 1,000 students - ensuring a pipeline of appropriately skilled, work ready talent. 8,000+Employees in rail industry in over 50 companies9.1%Manufacturing EmploymentAttained at least degree standard1 in 4Attained NVQ2 level (diploma equivalent)67%Doncaster has all the relevant technical and vocational skills you need Source: Nomis: Labour Market Profile, Doncaster, 2020

16. 16Students in key related subjects: 10,085Graduates in key related subjects: 3,155Students currently studying:Globally ranked universities and colleges are offering degrees in rail relevant courses:The graduate pool is strengthened by rail specific courses and world-class research centresLocal universities are supporting a steady pipeline of graduates educated for the rail sector...SheffieldHallam UniversitySource: HESA 2018/19With leading institutions developing a pipeline of talent for your futureInformation Systems2,4251,875745Electronic & Electrical EngineeringUniversity of SheffieldHome to the Rail Innovation & Technology Centre, in partnership with Network RailUniversityofHuddersfieldSheffieldHallam UniversityOffering rail engineering specialist courses and high level apprenticeshipsHome to the Institute for Railway Research, a world leading centre in railway engineering/ riskMechanical Engineering30,000 student university with 82 research centres and Institutes6th largest university in the UK with almost 31,000 studentsGold rated university in the Teaching Excellence Framework with almost 20,000 students

17. 17Developing your people and supporting the seamless transfer from research to commercial applications of your products.Overhead Line Electrification (OLE) CentreFunded by VolkerRail and the Rail Electrification Alliance (REAL), the OLE training centre provides in-house sentinel and OLEC training to VolkerRail and the rail workforce.The centre has been developed in response to an industry wide issue in delivering the planned volumes of electrification projects. Designed to cater for existing and future overhead line system equipment.Institute of Railway Research (IRR) & Centre for Innovation in Rail (CIR) – University of HuddersfieldThe IRR is a world leading centre in the field of railway engineering and risk, improving knowledge of how railway vehicles interact with the track including key performance aspects. Research has led to the development of a number of tools and techniques used to predict deterioration of railway wheels and rails, to optimise the vehicle track interface, to increase safety and reliability levels, reduce cost and improve performance.The Centre for Innovation in Rail (CIR) operates as a distinct business unit within IRR and has been built upon the world‐class research and development capabilities of the IRR to support the supply chain in bringing new technologies to the sector. Rail Innovation & Technology Centre (RITC) – University of SheffieldPartnership between Network Rail and Sheffield University, fostering new technologies.RITC’s focus is intelligent systems engineering involving detection, sensing, communication, materials, structures and software technologies that can be applied to rail infrastructure, operations and traffic, i.e. Complemented by access to world-class innovation and researchPartnerships with academia allow for research and innovation shaped by youThe track (materials, installation, monitoring, maintenance, design, and performance)Associated vehicles (trains and their operation)Other systems (e.g. signalling, communications, information management)

18. Competitive CostsUK Government Support£Click on an icon to see how locating your business here will offer you speed, support, and competitive advantageLocal Support18All backed with competitive costs, incentives and support

19. Competitive Electricity RatesCost Effective Salaries Compared to Europe19Our industry insights have identified key cost drivers for rail manufacturers… the UK and Doncaster provide a competitive package against other leading European locations Source: fDi BenchmarkAll cost values shown in GBP - United Kingdom PoundA cost competitive location against leading European marketsSalary costs in Doncaster are competitively lower than other key European locations.11.53pence/kWh11.44 pence/kWh9.23pence/kWh14.50 pence/kWhPotential Property CostsDoncasterBerlinMilanLille£71.47£104.59£59.30£47.44Industrial Space£/m2Sources: Electricity - BEIS data 2019 on industrial prices including tax; Property – FDI Benchmark

20. Market InformationProfessional SupportProperty OptionsSpecialist Advice (tax, skills, visas & migration)Access to AcademiaRegulationUK Suppliers and Partners(UK & Overseas))Visit ProgrammesFinancial AdviceGovernment DepartmentsRead on to see how this combines with local government to provide you with world class support services.Real companies. Real experience. Real value. YOUR RAIL BUSINESS20With all the support you need to ensure a seamless investor process

21. 21Local partners will work directly with you to increase the speed, ease and value of your UK investmentYou will have access to award winning local partners for planning services for promoting economic growth… “The support from the Business Doncaster team has been really important to us in demonstrating that Doncaster supports business and the rail sector in particular…with the National College for Advanced Transport & Infrastructure, there are significant benefits for our business from being located here.”Karl Schwiede, owner Schwihag AG‘Growth Hub’ funding and preferential regional support available to rail companies in Doncaster planning to create new jobsStrong local business networks (e.g. Doncaster Rail Partnership), recruitment and skills assistance and links into local and national government support.

22. The UK has a vibrant industry network offering support and advice for companies operating in the UK rail industry……click one of the options to the left to find out more about our industry bodies and to see why leading international rail firms choose to locate in DoncasterRail Companies Choosing DoncasterUK Rail Industry Bodies22Access to networks that can help influence, and connect you to suppliers and customers

23. 23For comprehensive support and advice, click any of the industry bodies below.The UK’s rail industry bodies enable quick and easy access to suppliers, partners and customersRegulate the industry’s health and safety performance and ensure that the industry is competitive and fair.B2B networking organisation, bringing customers, suppliers and supply chain opportunities together.Bring together the companies that run Britain’s railway and provide services and support to membersSupport employers, trainers and organisations to develop and sustain a highly skilled workforce.Help members deliver a better, safer railway through research, standards and analysis.Help suppliers sell in to the GB rail industry by providing system for them to be formally recognised as capable providersLeadership body for the rail supply sector, working in partnership with the Rail Delivery Group to set the direction for the industry.The trade association for training, development and competence management suppliers to the Railway Industry. The trade association for the UK-based suppliers to the railway industry. The voice of the UK Light Rail industry. Represent operators, manufacturers, contractors and consultants. Dedicated to supporting careers in manufacturing, engineering and technology. Help the industry to attract new talent.National Skills Academy – RailOffice of Rail and Road (ORR)Rail AllianceRail Delivery GroupRail Safety Standards BoardRISQSRail Supply GroupThe Railway Industry AssociationAssociation of Railway Training ProvidersUKTramTalent Retention Solution UKRRINEncourage collaboration between academia and industry to provide a step-change in innovation in the sector and accelerate new technologies into market applications.

24. Rhomberg SersaUnipart RailClick the icons to view each case studyCompanies are already exploiting the opportunity throughout the Doncaster Region, you can join their success. Hitachi Rail EuropeDual Inventive Iport Rail

25. Carl Garrud, Managing Director The firm took a unit at West Moor Park in Doncaster for its UK head office in September 2014. Just weeks after establishing, the firm was ready to recruit additional staff following increased demand for its services. The company also announced a joint venture with Amey to deliver switches and crossing renewals across the UK over the next decade. Amey Sersa also has a team of more than 30 in the Doncaster area. Rhomberg Sersa25Austrian/ Swiss firm Rhomberg Sersa is a full railway engineering service provider - ranging from track construction, renewal and maintenance, through to consultancy, planning and logistics services. “Doncaster gives us the best opportunity in terms of existing infrastructure and engineering prowess.”12READ MORE CASE STUDIESUnipart RailRhomberg SersaHitachi RailDual Inventive Iport Rail

26. Kelly Warburton, Managing Director, UK Rail Commercial Headquartered in Doncaster, it was formed out of the privatisation of British Rail in 1997. The site now employs over 400 people, and continues to help grow the local economy by recruiting over 50 new staff since the start of 2017, and being Doncaster Chamber of Commerce Patrons and Sheffield City Region LEP Board members. Unipart Rail26Unipart Rail is a supplier of 70,000 rail products and installation materials - all procured, managed and supplied. The company also provides a range of other services including consultancy, technical support, and overhaul and repair. “We co-ordinate our international Customer Services from our Doncaster HQ. We can draw on a wide range of rail expertise from the local community, as well as highly skilled professionals across a range of functions. Being well connected by both road, rail and air, Doncaster is where we bring our customers to showcase our business”.12READ MORE CASE STUDIESUnipart RailRhomberg SersaHitachi RailDual Inventive Iport Rail

27. Geoff Elliott, General Manager – East Coast In April 2017 HRE announced it was on track to create 250 new jobs at its new rail depot in Doncaster for building and maintaining new intercity trains in the UK. The depot is hiring a brand new team to maintain new fleets of intercity trains inspired by Japanese bullet trains, connecting northern cities to London and Scotland. Hitachi has invested £80m in the Doncaster site to create a facility that is clean, light and packed with the most advanced industry technology. Hitachi Rail Europe27Hitachi Rail Europe (HRE) is a global provider of total railway solutions and is the company leading the largest rail modernisation project in UK history and delivering the UK’s next generation of rolling stock.“Doncaster is the perfect location for bringing new talent and skills into the rail industry. The local area has a strong legacy of technical and engineering jobs and our depot investment looks set to cement this reputation.”12READ MORE CASE STUDIESUnipart RailRhomberg SersaHitachi RailDual Inventive Iport Rail

28. Business Doncaster have worked with Dual Inventive in order to establish a base that reflects the image, values and future intentions of the company. This has seen Dual Inventive find an ideal location close to Doncaster Sheffield Airport in a brand new 19,000 sq ft unit comprising of offices, storage and, most interestingly, a purpose built auditorium seating around 45 people and employing the latest presentation technology. Dual Inventive has spent considerable time working with Network Rail in order to prove the benefits of using their technology on UK rail systems and they are now an approved supplier with significant orders and the potential to grow this part of the business in the future. Dual Inventive 28Dutch firm Dual Inventive is a rail technology company specialising in innovative safety, monitoring and communications with a range of advanced products“'We are a rapidly expanding company blazing a path into the UK rail sector, and we needed a home that allowed us to continue at speed. We chose Doncaster because it oozes rail heritage, creates valuable opportunities for corporate connections, and it gives us superb transport links throughout the United Kingdom. We cannot wait to build on Doncaster's rail history and shape the railways of tomorrow.”Josh Jackson, Director, Dual Inventive Ltd12READ MORE CASE STUDIESUnipart RailRhomberg SersaHitachi RailDual Inventive Iport Rail

29. Throughout 2020, the terminal played a key part in keeping goods moving and supporting businesses. iPort Rail is in an advanced stage of its Authorised Economic Operator (AEO) status application. This will allow the terminal to process customs on site and offers the possibility of fast-tracking shipments. It is likely that locations away from the Channel Ports will play a vital role in keeping Britain’s supply chain working, especially throughout 2021. iPort Rail29iPort Rail is an independent multimodal rail freight facility based on an 800 acre logistics park in Doncaster. Opened in February 2018 the rail freight terminal now serves local, national and international businesses with regular services to Southampton, Felixstowe and Teesport.“With more businesses focussed on reducing environmental impact, the rail industry offers great benefits including less carbon emissions than long-haul HGV transport, as well as more competitive pricing and reliability. We are proud to be at the heart of the 21st century rail success story, and continue to enhance our supply chain services and capabilities to help companies in the UK and internationally navigate these challenging times”.Steve Freeman, Managing Director, Iport Rail12READ MORE CASE STUDIESUnipart RailRhomberg SersaHitachi RailDual Inventive Iport Rail

30. Contact DIT’s Investment Services TeamW: invest.great.gov.uk/int/contactE: enquiries@invest-trade.ukT: +44(0) 207 000 9012For more information on how to set up a business in the UK, please visit the websiteThe Department for International Trade and local partners are here to support you in navigating the opportunities across the UK – to find the right fit for your business. Based on our experience of investors like you, this attractive opportunity demonstrates the strength and depth of capability available locally and in central Government to support you, and maximise your investment in the UK. For investors interested in considering high value options further – we provide a bespoke service tailored to your needs from investment inception, right through to aftercare support. We pride ourselves in developing long-term relationships with our clients, predicated on a full understanding of their needs.30We’re dedicated to finding the right fit for your business

31. 1. Consider how you can promote this opportunity:There are a number of simple ways that you can look to promote this opportunity, making use of existing campaigns and business development activity:• Review your active projects on Data hub and use this as a reason to start another conversation; the LEP are ready to join conversations and expand on the local offer.• Look at your pipeline of prospects and see this as a chance to reach out for an update meeting.• Look for Rail events in your territory. Talk to us about the ways we can help you at the event.• Review more broadly which companies in your market might be a good fit and how else could you promote the opportunity. 2. Proactively promoting the opportunity:The Propositions are intended to provide you with the relevant information and messaging to enable an informed initial conversation about the opportunity with a company. This could be at a conference you are attending, in conversation with your accounts, an investment presentation you are delivering, a roundtable event, business breakfast, or specialist visit to your market. 3. Log any interactions and projects on Data Hub:Make sure that you select ‘HPO’ under specific investment programme for any projects logged on Data Hub, as this is key to us being able to monitor and evaluate activity and the outcomes which an HPO contributes towards.How to Use this HPO31

32. Last updated: April 2021