Regional companies 'could unite track and train'

Posted: 1st May 2007 | From Railnews print edition

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REGIONAL railway companies running tracks and trains could be set up under a policy option being considered by the Tory shadow transport team.

It is one of three options being put through feasibility studies by shadow transport secretary Chris Grayling's team. They hope to announce the results before the Government makes its summer statements on the future of rail.

The Tories admitted last year that they had been wrong to separate infrastructure from train operations, but have so far not revealed how they plan to bring them back together if elected.

However, shadow rail minister Stephen Hammond has said the possibility of vertically integrated regional railway companies is on a shortlist of policy options getting detailed examination.

Other options being looked at are regional "joint ventures" between Network Rail and train operating companies, and extending the use of integrated control centres, which Mr Hammond said would bring Network Rail and operators together without changing the structure of the industry.

He listed the options at a Railway Forum conference, and said the Tories believed change was needed because few people in the industry thought the status quo could meet the challenges of a growing railway.

"It has become clear to us in private meetings that everyone says Network Rail is better but no one says the system can deliver the capacity increases needed for the next 15 years," he said.

Speaking to Railnews later, Mr Hammond said the regional companies option would "not necessarily" involve the break up of Network Rail because there could be a central board within the regional structure.

"We recognise the institutional upheaval there has been on the railway in the last 15 years so if we are going to propose great upheaval we have to be pretty clear there will be great advantages. We are talking an evolution rather than revolution."

Network Rail has said it welcomes contributions on the debate on the future of rail. However, one source said: "We do not see the argument for atomising the railway. We think the logic against it is quite remorseless.

"If you split the railway up into half a dozen railway teams, are you then going to go back to the contractural relationships that did not work under Railtrack?"

Earlier in April, Tory leader David Cameron said the Conservatives would put rail "at the heart" of Britain's transport system.

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