New railway lines?
Government keen on private sector rail investment, with a southern rail link to Heathrow high on the wish list.
MINISTERS are hoping to kick-start a programme of private sector rail investment, possibly even funding new lines, with the launch on March 20 of a new approach to enhancements.
Launched the same day was a call to private companies to suggest ways of delivering a southern rail link into Heathrow Airport (see separate story).
“By encouraging innovative ideas and new investment on our railways, we can relieve the burden on taxpayers and fare payers with projects that match our transport needs,” said Secretary of State for Transport Chris Grayling.
“This can also support our economic and housing aspirations, to ensure everyone benefits from an enhanced rail network.
“Heathrow is a perfect example of where this can make a real difference. Such schemes will help ensure the benefits of our major international hub are even more accessible to those across the west and south of the UK - providing vital links for travellers and exporters, and attracting inward investment.”
The switch in emphasis from public to private money to deliver enhancements follows high-profile cost and schedule overruns from state-owned Network Rail, such as the Great Western electrification that has tripled in price and run years over its original timescale.
The Department for Transport is calling for ‘market-led proposals’ (MLPs) for rail improvement projects that are “financially credible without government support”.
It suggests Heathrow’s southern link as an example, but added that they could be developed or promoted by ports, train operators, freight operators, housing developers, financial investors or consortia comprising the above. MLPs would address opportunities not necessarily identified or
prioritised by government or NR.
DfT explained that its objectives were to increase overall rail investment, relieve the burden on taxpayers and fare payers, open the development of rail projects to new and innovative ideas, and create “real contestability in the market”.
It said it planned to run a series of open days in May to further explain its ideas, but as this issue of RAIL went to press DfT had not revealed a timetable for them or their locations.
The DfT’s proposal warns that MLPs should not rely on central government funding for their development or delivery.
“The scheme should use private financing and generate sufficient revenue to repay financing costs; central government payments should not be relied upon. In operation, the scheme should generate sufficient revenue to cover the costs of maintaining and operating the asset,” it said.
DfT plans to categorise MLPs into two. The first are those which need no government support, and it advises promoters of these schemes to contact Network Rail directly.
The second category features those schemes that need indirect government support, such as changes to franchises or usage guarantees. These projects must go through DfT’s new pipeline process and address its priorities, which are to keep people moving safely and smoothly, delivering the benefits of DfT’s projects, creating new and better journeys and opportunities, and improving the way the rail sector works.