There is a strong appetite to invest in rail. However, barriers hold back the market, says the official regulator in the UK. The Office of Rail and Road (ORR) has conducted a review that reveals latent opportunities for rail infrastructure investment. Work is now underway at the regulator to remove barriers and streamline the investment process to support economic growth.
As part of the UK government’s overall plan to increase economic growth, the ORR has responded to a request from His Majesty’s Treasury and conducted a deep review of the Rail Network Investment Framework (RNIF) in Spring 2025. The Framework is now the core guidance for supporting third-party and private investment in infrastructure owned or managed by Network Rail, the infrastructure agency.
Fresh focus on private capital for growth
The ORR has concluded the first phase of its RNIF review, aimed at removing barriers to private and third-party investment. As freight operators seek terminal access, new facilities, and network connectivity, the review may provide a critical lever to unlock funding. “This work forms part of the Chancellor’s call for economic regulators to consider how they can help promote private investment,” said ORR. “It supports long-term growth in their sectors.”
The RNIF is ORR’s guide to infrastructure funding and delivery by third parties, including local authorities and private developers. It enables investments in everything from line upgrades and new terminals to larger projects like freight hubs and intermodal connections. The guidance covers processes, approvals, and standard contracts. Although last updated in 2022, ORR says the investment landscape has evolved significantly since then, especially with the transition towards a national integrated rail body, dubbed Great British Railways, for track and passenger operations. Freight will remain in the private sector.
Barriers still frustrate market interest
Feedback collected during the review showed that awareness of the RNIF remains low. ORR says this highlights not a flaw in the framework itself, but wider difficulties in navigating the investment process. “There is a strong appetite to invest in the rail sector. However, several persistent barriers are holding the market back,” said ORR. Investors cited a lack of clear direction from the UK government on where private capital is actively encouraged, such as in freight-first corridors. That absence of strategic clarity makes long-term planning difficult. Other concerns included poor visibility of a project pipeline, complex planning processes, and the lack of a proven commercial model, especially compared with other mature infrastructure sectors like energy.
To inform its review, ORR gathered evidence via surveys, direct engagement, and roundtable events. Key contributors included Rock Rail, Siemens Mobility, Porterbrook, Equitix, and High Speed 1 – the operators of the line between London and the Channel Tunnel. ORR also partnered with the Railway Industry Association to host discussions at its “investment conference”, reinforcing the focus on private capital as a driver of future growth.
A clearer path for freight-led projects
The RNIF review reached its first milestone in June 2025. Now, the ORR is moving into its Phase 2. They’re updating the framework and making it fit for future freight and passenger infrastructure. Next steps include reviewing standard contracts, improving risk allocation, clarifying contracts, and expanding guidance on investing in specific asset types such as terminals or depot access.
Crucially for freight operators and investors, ORR will examine how value thresholds apply to different types of projects, potentially allowing more schemes to progress without complex approvals. An independent consultant will also assess industry risk and Network Rail fee funds, ensuring charges are fair, proportionate, and not dissuading new investment.
ORR aims to publish an updated Rail Network Investment Framework by November 2025. The new framework will reflect today’s economic environment and provide more predictable investment pathways. “This insight is already shaping the next phase of our work,” said ORR. “It helps identify where improvements could make the biggest difference.”