{"id":392161,"date":"2026-03-23T20:00:00","date_gmt":"2026-03-23T10:00:00","guid":{"rendered":"http:\/\/www.vibewire.com.au\/?guid=3b80893afbc73cadb0acd20e06d29c76"},"modified":"2026-03-23T20:00:00","modified_gmt":"2026-03-23T10:00:00","slug":"rail-productivity-continues-to-recover","status":"publish","type":"post","link":"https:\/\/www.vibewire.com.au\/?p=392161","title":{"rendered":"Rail productivity continues to recover"},"content":{"rendered":"

Rail productivity continues to recover<\/span>
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\u00a326 billion is spent each year to operate the railway, with just under half of this government funded. Even small percentage changes in productivity can make a big difference in value for passengers, freight users and taxpayers.<\/div>\n
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Productivity continues to improve as more trains are run <\/h2>\n<\/div>\n
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Our 2026 report<\/a> highlights the continued recovery in productivity since the pandemic, with 3% productivity growth in 2024-25, continuing the trend seen since the substantial drop in 2020-21. <\/p>\n<\/div>\n

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Passenger and freight train kilometres per thousand pounds of industry expenditure<\/strong><\/em><\/p>\n<\/div>\n

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Expenditure values adjusted to 2024\u201325 prices. Quality adjusted means headline productivity is adjusted for train performance and rolling stock age<\/p>\n<\/div>\n

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Our report shows rail industry productivity is particularly sensitive to changes in passenger and freight demand and increasing costs. Train distances travelled have almost recovered to 2014-15 levels but expenditure on the operational railway is 21% higher than a decade ago. On this measure, quality adjusted productivity is 6% lower than a decade ago.<\/p>\n<\/div>\n

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We also compare rail productivity to the wider economy using total factor productivity. This is a comprehensive approach which captures not only individual inputs but the efficiency with which labour and capital are combined. In the years since the pandemic, the growth in rail productivity has been stronger than that of the wider economy.  <\/p>\n<\/div>\n

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Comparison of rail industry total factor productivity and ONS multi-factor productivity for the whole UK economy <\/strong><\/em><\/p>\n<\/div>\n

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Total factor productivity for rail is 8% higher than a decade ago \u2013 in contrast to the findings from our partial productivity analysis. This shows the sensitivity of productivity to the measurement of outputs and inputs which we explain in our report. <\/p>\n<\/div>\n

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Looking ahead<\/h2>\n<\/div>\n
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One of the key aims for government with rail reform is reducing the net subsidy to the railway. Revenue growth is clearly central to this, but so is increasing productivity.<\/p>\n<\/div>\n

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As we look forward to rail reform, an important part of the benefits will come from a more integrated system. Great British Railways, which will bring together track and train, is expected to launch later next year and our analysis provides a useful baseline for how we might measure some of the future benefits from integration. <\/p>\n<\/div>\n

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We will continue to refine our analysis and welcome comments on this year\u2019s report. <\/p>\n<\/div>\n<\/div><\/div>\n<\/div>\n

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Downloads<\/h2>\n<\/div><\/div>\n
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Report on rail industry productivity 2026<\/a><\/div>\n

Published 23 March 2026<\/span>\n<\/div>\n

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