The Second Reading of the Railways Bill has already taken place in the UK House of Commons. That’s a significant milestone in the route to becoming law in the UK. There is still a long way to go, and changes can be made (and often are). That has prompted the Railway Industry Association (RIA) to urge the Government to make the most of the opportunities presented by rail reform. The body, which represents the UK’s rail supply sector, is among several organisations making representations at this stage of the parliamentary process.
The Bill forms part of a radical reshaping of the British railway system, bringing much of the infrastructure and passenger operations into public ownership under the new body, Great British Railways (GBR). While rail freight services are expected to remain in private hands, the new organisation is likely to exert significant influence over freight operations, access and future investment.
Development Corporation model could boost rail freight
Planning for GBR is already well advanced, even though formal incorporation is still several years away. A headquarters has already been selected, in Derby, a town with centuries of railway heritage. However, the RIA, along with other stakeholders, is looking to the future. They believe now is the moment to shape decisions that could prove difficult to reverse later. “RIA and rail suppliers across the UK want GBR to be a high-performing organisation which delivers for passengers, rail freight and taxpayers,” said Darren Caplan, RIA chief executive.
RIA is advocating a model similar to a 1960s-style “new town” development corporations. Those bodies were able to promote the wider economic growth of their communities. A similar structure would allow GBR not only to oversee train services and infrastructure, but also to leverage the railway’s extensive land and property estate for wider economic benefit.
Long-term planning for stable investment
The association argues that such an approach could support freight growth by encouraging investment in sidings, terminals and logistics-related development close to the network. “After more than seven years since the rail reform process was launched, we see it as a potential opportunity to create a better rail network for passengers and freight users, as well as to leverage the railway’s estate to create jobs and build new homes, providing the taxpayer with more value for money,” Caplan said.
RIA has also highlighted the importance of long-term funding certainty. “Whilst for over 30 years, UK rail has benefited from five-year Control Period funding settlements for infrastructure, the legislation as it is currently proposed would enable a future Secretary of State for Transport to reopen settlements at any time without consultation,” Caplan said. “RIA and our members would not support moves which make longer-term funding less stable.”
Freight to feel the GBR influence
Although freight services will remain privately operated, RIA believes GBR’s role in setting funding priorities and procurement frameworks will have a direct impact on the sector. For freight operators and their suppliers, such uncertainty could undermine investment decisions in rolling stock, terminals and supporting infrastructure.
“With a majority of GBR’s future expenditure going through the rail supply sector, it really is vital that GBR, when it is stood up, provides a clear outlook on future work and procurement,” Caplan said. “We also hope the acceleration of other innovative investment models to fund rail will be part of the future funding plans, when the public purse is not made available for future rail schemes and work.”
RIA represents more than 450 companies across the rail supply chain. It says the wider rail industry contributes 41 billion pounds (47 billion euros) in economic value and 14 billion pounds (16 billion euros) in tax revenue each year, supporting more than 640,000 jobs across the UK — including a substantial share linked to rail freight and logistics.