Rail fares tipped to fall after move to boost competition

RAIL fares could fall as the Government works to increase the number of operators competing on certain routes.

In an address outlining his vision for the rail sector yesterday, Mark Harper, the Transport Secretary, indicated the Government would encourage more private companies to compete on lines through open access contracts.

Open access companies are operators that run services on the network alongside the main rail franchises but unlike the franchises they do not require Government subsidy.

The move could mean fares across the network will mirror those of other open access operators who, for example, offer London to Edinburgh for as little as £40, or off-peak single fares from York to London for £58.

Mr Harper said: “Open access operators will play an important role in the industry’s future, especially as we grow new markets.”

Norman Baker, of the Campaign for Better Transport, said these operators tend to offer much cheaper rail fares that encourage more people to travel.

Anthony Smith, of Transport Focus, said the move would be a “win-win” for passengers, as the competition would encourage the right behaviours of “attracting more customers, keeping prices keen and beating the opposition”.

There are currently three open access operators on the UK’S mainline network, all on the east coast and competing with the government-run LNER. They include Grand Central, which runs trains between Yorkshire and the North East, and Hull Trains, which runs between Hull and London. Lumo, the newest open access operator, runs London-edinburgh services.

All offer fares with significant savings on the industry average.

The drive for more open access operators fits into Mr Harper’s plan to bring more private companies on to the railways, with a new body, Great British Railways, to oversee the sector.

Mr Harper said that he wants the operators themselves to identify the opportunities and bid for routes. However, he did admit the current bidding model was not conducive to open access because the Treasury saw any new players as a threat to its own rail revenue.

It is understood that the West Coast main line could be the obvious target, with no open access operators currently on the line.