Network Rail regulation and performance

20.10.17

Network Rail confirms year’s largest property sale

Network Rail has pocketed £35m from the sell-off of its National Logistics Centre in Ryton – representing the organisation’s largest-value property sale this year.

The deal is part of NR plans to sell off infrastructure in order to raise extra funds, as well as release underused land for housing developments.

External analysis suggested that the site could be phased out of the national railway system with the introduction of a new inventory order and delivery system over the next few years. As part of the deal, the site will be leased back to Network Rail for the next 15 years while changes take place.

“Network Rail has decided to raise funds from asset disposals to support our ongoing rail enhancement programme,” commented Network Rail Property managing director, David Biggs.

“Investment is crucial to improving the railway in Britain. Improvements lead to longer, faster, more frequent trains; a better, more reliable infrastructure; and better facilities for passengers, especially at stations.

“The sale of the National Logistics Centre in Ryton is part of this plan to build a bigger, better and more reliable railway which benefits all rail users, and delivers the best value for money for taxpayers.”

The announcement forms part of the infrastructure owner’s plans to sell its assets in order to generate extra funding and plug existing cash gaps.

The organisation has also been considering selling off its electrical power networks and even some of its 18 major stations, potentially including London Waterloo, Manchester Piccadilly, Birmingham New Street and Edinburgh Waverly – although not much has been said on these proposals since last year.

These efficiency drives are fuelled by fears that the UK’s infrastructure manager could be in as much as £50bn of debt by the end of the decade.

Have you got a story to tell? Would you like to become an RTM columnist? If so, click here.

Comments

Tarka Man   20/10/2017 at 13:23

If TOC's paid the true price for track access Network Rail would not be in debt by so much; but then no one would bid for non profit making franchises. So funds that could support the infrastructure go to pay profits for other state governments...the system is mad :(

Ampox   20/10/2017 at 13:31

Need to make sure that careless sell-offs do not compromise future expansion needs - rail is a growing industry!

Jerry Alderson   22/10/2017 at 20:01

Greater Anglia were well and truly 'upset' that Network Rail had sold off so much of Chesterton Sidings, next to the new Cambridge North station, as they would have stabled trains there overnight. Passengers might have got a better service as well. However, it's not all bad news as the land will be used for a hotel right next to the station (just as they have done at Cambridge), along with apartments and offices, so that will attract a lot of rail users and make the new station well used. When a land sale allows patronage on the railway to grow then I am not generally concerned by it.

Andrew Gwilt   23/10/2017 at 12:26

What about the brand new £70million 50-acre brownfield site is where the new Network Rail Derby Triangle development is likely to take place or to be built in Derby in the East Midlands that will create about 3,300 new jobs in Derby and across the East Midlands and beyond. https://www.networkrail.co.uk/feeds/derby-triangle-development-set-to-create-3300-permanent-jobs/ https://www.constructionnews.co.uk/companies/clients/network-rail/boost-for-network-rails-huge-derby-triangle-scheme/10021589.article http://www.constructionenquirer.com/2017/07/13/plans-approved-for-70m-derby-triangle-scheme/

Andrew JG   24/10/2017 at 01:01

That new National Logistics Centre is on the outskirts of Coventry. Which is good for new jobs to be created in the West Midlands. Aswell for Warwickshire and nearby towns and neighbouring counties. https://www.railstaff.uk/2017/10/20/network-rail-sells-national-logistics-centre-coventry-35m/

Burtocf   14/11/2017 at 17:55

Re Tarka Man: trouble with increased Track Access Charges they take no account of Netw.R's efficiency or otherwise, and would be inflationary which politicians would especially hate. But cash certainly needs to found from somewhere if only to undertake vital maintenance, crucial to a reliable timetable.

Add your comment

 

rail technology magazine tv

more videos >

latest rail news

ORR report: ‘No one took charge’ in May timetable chaos, ‘everyone made mistakes’

20/09/2018ORR report: ‘No one took charge’ in May timetable chaos, ‘everyone made mistakes’

A scathing report into the May timetable chaos has blasted transport secretary Chris Grayling, Network Rail, and the DfT... more >
Government rejects claims of transport spending ‘regional imbalance’

20/09/2018Government rejects claims of transport spending ‘regional imbalance’

The Transport Committee has urged the DfT to “be more specific about the economic rebalancing effects it... more >
DfT quietly pulls the plug on CrossCountry franchise competition

20/09/2018DfT quietly pulls the plug on CrossCountry franchise competition

The government has decided to pull the plug on the CrossCountry franchise competition as a result of its rail review ann... more >

editor's comment

23/01/2018Out with the old...

Despite a few disappointing policy announcements, especially for the electrification aficionados amongst us, 2017 was, like Darren Caplan writes on page 20, a year generally marked by positive news for the rail industry. We polished off the iconic Ordsall Chord (p32), hit some solid milestones on Thameslink (p40), progressed on ambitious rolling stock orders (p16), and finally started moving forward on HS2 (p14) ‒ paving the way for a New Ye... read more >

last word

Encouraging youngsters to be safe on the railway

Encouraging youngsters to be safe on the railway

This summer, Arriva Group's CrossCountry and the Scout Association joined to launch a new partnership to promote rail safety among young people. Chris Leech MBE, business community manager at the TOC, gives RTM an update on the innovative scheme. Recognising that young people are more likely to take a risk trespassing on railway tracks, C... more > more last word articles >

'the sleepers' daily blog

The East Coast franchise report tells us what we already knew: it was a bid set up to fail

18/09/2018The East Coast franchise report tells us what we already knew: it was a bid set up to fail

RTM's Jack Donnelly assesses what the Transport Committee's latest report on the VTEC franchise means for the industry as a whole “Even now, there is no concrete plan, nor timescales, for the interim operator of this franchise. From our inquiry, we cannot be sure, and cannot reassure passengers or public, that the arrangements ... more >
read more blog posts from 'the sleeper' >

comment

Northern Powerhouse Rail: The need for change

18/09/2018Northern Powerhouse Rail: The need for change

Northern Powerhouse Rail (NPR) will be transformational for the north – it will change the way people live, work, and play. It will rebalan... more >
Innovation through people and technology

18/09/2018Innovation through people and technology

Ian Prosser, HM chief inspector of railways and director of railway safety at the ORR, picks out the key industry challenges to focus on based on... more >
Why we all must mind the gap

18/09/2018Why we all must mind the gap

Clair Mowbray, chief executive of the National College for High Speed Rail (NCHSR), explains how we can all ensure the UK’s next generation... more >
3D printing: from virtual to real

11/09/20183D printing: from virtual to real

Like so many other technological advancements, 3D printing has moved from being the stuff of science fiction, through niche industrial applicatio... more >

rail industry focus

View all News

interviews

Going global: an interview with Network Rail’s Leevan Finney

29/08/2018Going global: an interview with Network Rail’s Leevan Finney

RTM’s Jack Donnelly sat down with one of the leading minds behind Network Rail’s most advanced and innovative rail maintenance techno... more >