A “wall of money” potential funding

Third-party funding could unlock major projects, RAIL Managing Editor Nigel Harris told the Transport Select Committee’s inquiry into rail infrastructure investment.

“I am told repeatedly that there is a wall of money out there seeking places to be invested. We would like to get it into the railway, yet we cannot seem to get it,” he said.

He added that while engineering costs could put some parties off: “If we did value engineering and flexible interpretation of standards, who knows what it might cost to reinstate via Okehampton and Tavistock, if it was properly priced?

“There are companies out there who have told me that they would like to get involved in reinstating Colne to Skipton or the Wisbech branch, and there is the Okehampton line.

“It could all be done, but we have contrived to make it very difficult to get third-party funding into the railway. I am told it is there, and that we have done a singularly poor job of getting it into the railway.”

Tammy Samuel, of Stephenson Harwood, backed his assertion, saying: “I have been working with clients for a number of years. I remember doing the rounds with clients 12 or 13 years ago, going to see Network Rail and going to see people and saying: ‘We’ve got this financing. What can we do? Can we take some of the stations off your hands? We will do up your station for you, Network Rail, in return for being able to develop around the station infrastructure. We will build you a brand new depot and in return, Network Rail, we will also enhance other areas of your network for you.”

Samuel pointed out that pension and debt funds are interested in investing in the railway, and that it can be used “in all kinds of different ways”.