Performance and Human Resources Standards Effect of the HS2 Project on the Welsh Economy - Example

GLОBАLISАTIОN ОF LОGISTIСS & SСМ By Students Name Course Professor University State Date Introduction Business currently is in a global environment. This global environment pressurizes companies to put the rest of the world into consideration when it comes to the competitive strategy. The external factors cannot be isolated neither ignored, for instance, economic trend, and technology advancement among others (Mangan, Lalwani, & Butcher, 2008). Countries are going global with the help of a supply chain management making it possible to produce in one country, manufacture and sell in different countries. Transformations in the modernization and spread of transport and intensification of competition have increased the importance of flow management to new levels (Milliot, & Tournois, 2010). There are expectations that the travel demands among the UK big cities will increase in the coming decades as a result of the economic growth and increasing prosperity. This kind of growth is likely to see an increase in congestion across all forms of transport resulting from less reliable and journeys that are uncomfortable for travelers. This will eventually endanger the long-term position of the UK economy. In a consultant perspective for the Welsh Government, the paper aims to analyze how the intended High-Speed Rail (HS2) is likely to affect the Wales economy. Methodology The Welsh Government has off late showed interest of seeking for an extra rail infrastructure in case the controversial HS2 continues. The HS2 project has a rocketing cost causing increased concerns, and there are many questions about whether the project will provide a money value invested in it. There are claims that the projections of the project were based on fragile numbers that contain outdated data as well as assumptions that do not have a real life reflection. This implies that without a clear evidence the project would aid only support to regional economies. The HS2 project has been designated as a UK spends which implies that there are no funds to come to Wales. This brief overview shows the state that Wales is in currently. In order to get a clear picture of the whole situation, it is important to focus on the impacts that the HS2rail way has on Welsh economy from two angles (Ajitabh, 2008). These include economic impacts and employment perspectives. There are numerous claims or benefits that are linked to the upgrade another approach of this research will try to define how effective is the upgrade in order to be able to come up with recommendations. The final or the second part of this study will be to provide recommendations to the Welsh Government on what to adopt for the bettering of the economy Railway system in Wales The railway is recognized as a key contributor to the wellbeing of the Welsh economy. The Wales routes can be divided into various market categories, customers’ routes and the freight routes. The conventional market routes include long distance that runs between South Wales and London, interurban services which has services in West Wales on hourly basis, commuter markets, which are long distance services between Swansea and London, and rural market which offers services in mid Wales northwest and west Wales (New South Wales. 1912). Operational routes These incorporate landing train Wales, virgin train London Midland, first awesome western and cross-country. The administrations offered by these trains are not sufficiently first when contrasted with different ranges in the area. Responsibility investment is a crucial feature of the rail infrastructure in Wales. There is current publications publication of Network Rail’s Wales Route. The power over franchises is under the control of the Welsh government based on the operation across various locations in Wales. The government ensures that the franchise operations do not damage the cross-border network since it is in the rail companies’ wellbeing to ensure harmonization with other operators’ services. The situation becomes complicated once certain services undertake their operations in the two sides of the border (Strohl, 1993) Primarily the Welsh government had full responsibility for the Welsh portion of a number of franchises, however, with the UK Government accountable for the English section, and could potentially end in politicization at the border between errands. Conversely, devoid of some legal powers, the Welsh Government would be left with no a say over many rail services in Wales. Impact of HS2 on Wales The government has conducted a detailed analysis of the cost effectiveness and benefits that can result from the upgrade of existing rail and road networks together with the work completed by HS2 Ltd. This is with respect to customary and high-velocity route lines. The HS2 could contribute somewhere around 25000 and 42000 extra employments. This is because business that is more gainful will be secured, and they have a capability of offering high wages and draw in more individuals to the work market. According to a report by KPMG more jobs are expected to come from the domestic market, however by attracting foreign workers and firms into the country this could raise positive impacts on employment. The GVA or the economic measure output can get a boost by the year 2040 in provisional to how efficient this network could allow other service vagaries on the rail network to be executed and capacity constraints to be addressed. The green gauge did a substantive work and its finding that were prepared and presented by KPMG. The report shows that additional electrification of high west line is important to Wales compared to HS2 because it will enable Wales to remain competitive in the region. In this report, it was identified that the HS2 will consequent into negative impacts on Welsh economy based on growth on employment aspects. As a result, the upgrade is more to impacting negatively on Wales than it is being presented. In addition, the upgrade does not stand a good chance to address Wales GVA deteriorating aspects. In terms of employment, the HS2 will leave Wales with fewer jobs by 2040, a small annual development, and a reduced income rate by the same year. These statistics are outlined clearly in the following table There is additional expenditure requirement in order to alleviate the HS2 environmental effects. If this is the case, there is need to have proportionate investment on great west line that has a better chance to relieve the economic effects on Wales. This is a crucial task given the fact that the Taxpayers in Wales with pay the same as those in England. Wages per annum improves as a result of a growth in business connectivity attracting new citizens into the labor market. However, employment and business growth rate is distant to the most affected areas. Wales sees HS2 connections along the great western line although there are journey time saving of about 20 minutes to London they are not much compared to other HSR routes (Marshall, Fenech, & Greer, 2015). The great west line has relative fewer impacts in the region which are intended to ease the employment rate annually although there is a forecast for slight wage rise. Therefore, in case all the HS lines were all modeled the effects would commensurately be more. In regard to these regional changes impacts on wages would see Wales have reduced number of jobs as a result of HSR, an annual growth rate with a lower percentage due to HSR effects on GVA (Stanton, 2013) In addition, Wales would be left by HSR worse off in terms of average annual growth and a lower average wage by the year 2040. The following outlines these claims clearly. According to Cardiff business partnership, it is notable that the currently presented HSR program is neutral in terms of economic growth in Wales although negatively. The government is dedicated to having and encouraging an increased balance on economic growth all over the UK that makes it clear that some compensatory ingenuity is needed. From a funding perspective, it is not clear the HS2 upgrade project is a UK scheme or England Wales structure. In this regard, if it is a structure for UK or England Wales the Welsh, taxpayer will have to contribute 5% of the total cost within a span of 20 years for a scheme that is, as proposed currently, detrimental to the Welsh economy In regard to the above viewpoint the current plan for high-speed rail line from London to Birmingham, Manchester and Leeds will only aggravate the problems facing the Welsh economy. The above presentation clearly indicates that the Wales economy will suffer direct consequences as a result of the current HS2 upgrade proposal (Heinrichs, 2003). Additionally, it is assumed that the GWML is to be electrified, although the decision is welcome it should be taken as a mere minimum investment. Therefore, ongoing enhancements plan must be premeditated and conveyed over the next fifteen years (Milbourne, 2012). This improvement plan can be based on the fact that Wales has over years lived under the disadvantage of competitive transport venture in a different place in the UK and a noteworthy service deterioration in Cardiff Airport ever since 2002. The current HS plans have an envisage and a direct link to HS1, however, there are no integration proposals bet Theoretical perspective According the above analysis on the impacts of the HS2 rail upgrade on Welsh economy the strategic drift concept can be used to analyze the situation further. This drift strategy is concern when management of an organization and, in this case, the Wales government decides that they approached the upgrade project from a wrong perspective (Wales. 2010). The impacts that the HS2 is likely to impact on Wales are more detrimental than beneficial when analyzed from a long term perspective. Style drift is not a capacity of how extensively an administration changes their strategy. On the off chance that a little partition of the system is talked about in a manner that banners strategic drift, but it is a problem deserving of examination. In the event, that the whole methodology bundle is being modified it will be more likely to be a foundation for the end or a catalyst for the Welsh economy. It is clear that a strategic drift concept is prone to occur in light of the fact that as the paper has dissected the systems are liable to logical neglect to address the critical position of the nation’s route perspectives and accordingly execution break down (Johnson and Scholes2006). Part 2 - A Strategy to Mitigate HS2 Impact on Wales There is a populace of 1.4 million individuals in Cardiff City Region, or a large portion of the Wales populace which has a capability of impacting on the Welsh financial execution. The Russell University in Cardiff is a diversifying employment base and which attained much of its growth within the private sector. The university currently has a total of 80000 commuters and almost 200000 laborers. In a business standpoint, a transport connection is crucial mainly on inter and intra-regional transport. According to a statement, in regard to public transport by Admiral that is a leading insurance company in Wales provided nothing but a stark warning. In the statement, Admiral showed interest of not willing to locate in Cardiff currently as a result of >2hr journey time to London (Comfort, 2006). Advanced connection with Heathrow is necessary if Cardiff HQ has to be maintained, in the long run. The other recommendation that was presented as a warning is that the establishment of an effectual Cardiff City Region transit systems for the public is necessary for the long lasting success in business and specifically Admiral insurance services. Therefore, these statements are a clear underline on the need to capitalize on transport connections that will eventually handle Wales’ economic obstacles. GWML current Plans The electrification plan on great western line and introduction of ERTMS, as well as, other enhancements such as reintroduction of the Cardiff-Paddington journey times is necessary when joined to those that existed in 1980, for only a 1 hour 45 minutes (New South Wales. 1912). Wales, in particular, Cardiff will still be left at a disadvantage with the proposed electrification alongside the journey time’s benefits that other Cites will leap from HS2 project. However, an opportunity to come up with an increased ambitious and strategic vision for the great western line is recently on the recommendations. Some of these recommendations are as shown in the diagram below Source: KPMG reports on rail analysis Economic Opportunities on the GWML Regeneration The franchising and electrification program for GWML should act as a catalyst to implement and develop a long lasting and incremental upgrade on the great west line. This is an acknowledgement point that although the HS2 is important such a scheme would last 25 years for it to be delivered at the projected cost (Delgado, 2009) Electrification as the basement of the programmatic approach has noteworthy benefits in the context of capacity Heathrow access and journey times which collectively will help afford a stimulus to the Welsh economy and alleviate the effects of HS2 (Wales. 2010). The following are some of the deliverables objectives; less 80 and 90 minutes journey times at least two times an hour between Cardiff to London and Cardiff to Heathrow respectively. These performances can be undertaken and delivered within a range of enhancements both in service patterns and infrastructure. The series of incremental upgrades being done on the great west main line should be undertaken in a span of 15 years. This move will give room for nonstop services that run at a speed of >140mph.An integration between the great west line with HS1 and HS2 in order to permit through services to Europe (Lee, & Song, 2015). In addition, the stations that are in South Wales should be terminated and given out to Pontypridd, Cardiff Airport and Swansea Parkway new stations. The distance between Cardiff and Paddington is 145 miles and an 80-minute journey is likely to call for an approximate of 109 mph average speed. In comparison, an upgrade to WCML can provide a 118 minutes service for a distance of 185 miles between Manchester Piccadilly and Euston. It is important to note that with this kind of speed being achieved between Cardiff and Paddington, at an approximate 90 minutes journey time. Increased Recommendations It is an essential duty for both the DFT and WAG to commission on a strategic study on the objective that the Great West line is likely to develop in a business case. The commission should be based on an increased focus on the economic benefits of the incremental program aimed at upgrading GWML (Profillidis, 2014). This task should be undertaken on the same baseline of the work completed up to date by the DFT in the development of a business case for HS2.Some of the Cardiff business recommendations can be outlined as a full economic analysis to be conducted on the effects that HSR plan on the entire UK in particular Wales’s economy. That the deliberations and investigation of HSR access to Heathrow are broaden to with an aim of including enhanced right of entry from the GWML corridor from the west and in finicky the potential, in the first instance, of a Heathrow Express (Simmons, 1978). The exploration of the connection options of HS2 and HS1 needs extension in order to accommodate great Western main line and its connectivity to both HS1 and HS2.On the other hand, upgrade of the GWML and the Cardiff metro are likely to bring about considerable economic stimulation to the South Wales economy and more specifically the Valleys and halt a long lasting refuse in Wales’ financial fortunes. As a result of these outlined plans for HS2, it is necessary that both structures are progressed in order to make sure that the Welsh economy is not subjected to constraints as a result of HS2. These recommendations will see Wales stimulate the growth of it economy all through the region and eventually lead into an increased GVA. The Co emission will go down as a result of significant model shift of 20 percent more. Some other benefits include an intelligible and sustainable city region plan for transport housing, and the economy, and an eventual confidence and psychological boost to the valleys residents. Conclusion The paper has approached the HS2 rail upgraded from two perspective. The first part of the paper have given out detailed information on how the likely performance standards of the project on Welsh economy. It is clear that the aim of embarking and agreed to be included in the plan, Wales’s government expected positive benefits in its economy. However, the project impacts are likely to leave the economy worse by the year 2040.This is based on two major areas these include employment and wages. The second part of the paper is based on recommendations that can help improve the Welsh economy and save it from undergoing constraints as a result of the HS2 project. Upgrading of other major railway lines has been highly recommended because they are likely to bring about increased benefits and growth to the economy. As a result, the government should try and changing the strategy that they have currently adopted and go for more beneficial projects as explained from a strategic drift concept. The key point about the HS2 project on Welsh economy is that the project impacts are extending more on the negative side compared to other lines such as Great Western Line. Reference List Ajitabh, D. 2008. Global Competitiveness. New Delhi, Excel Books. Comfort, N. A. 2006. The Channel Tunnel and its high speed links. Usk, Oakwood Press. Delgado, R. 2009. Dynamics of high-speed railway bridges. London, UK, Taylor & Francis. Heinrichs, A. 2003. Wales. New York, Children's Press. Great Britain. 1998. Action for employment in Wales. Great Britain, Welsh Office. Top of Form Great britain. 2007. Welsh Grand Committee. 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