Network Rail regulation and performance


Northern owner Deutsche Bahn wants compensation from Network Rail over extensive delays and disruption

Deutsche Bahn has demanded Network Rail pay compensation for the extensive delays in electrifying its under fire Northern rail franchise.

First reported in the Telegraph, the parent company of Arriva Rail North, who run the struggling operator, blames Network Rail for plunging profits reported in accounts filed last week, and is now seeking reimbursement.

Arriva Rail North’s accounts for the year up to March 2018 revealed that, whilst revenue had mostly stayed the same as last year at £629m, pre-tax profits have fallen 40pc to £12.7m and dividends to Deutsche Bahn were cancelled for a second year in a row.

The German company’s financial statement read: “The ongoing late delivery of new infrastructure has consequently prevented the company from introducing the increased capacity and frequency required to deliver the planned growth in customer journeys and revenue.

“Compensation for this is being sought and potentially there are a wide range of outcomes as a result.”

It is claimed that the electrification has been delayed by over a year, with the work originally due to be completed by December 2017.

Northern has been repeatedly criticised over cancellations and delays to its services, and has been involved in a bitter dispute with the RMT union over having a guard on its train services, which has seen 43 days of strike action so far.

In November, Northern and Deutsche Bahn entered crisis talks with the government over the massive levels of disruption, with the Telegraph revealing the “catastrophic mismanagement” that led to the taxpayer bail-out soaring to £282m.

Most recently, Northern came under fire from the RMT over “secret extra payments” after it revealed that the train operator was paid £31m more by the government than had been previously planned.

The DfT rubbished the claims, stating that the RMT had used a misleading argument that showed a “total misunderstanding of the figures” and Northern said the “secret” extra money was simply due to changes in services and other policy areas.

Image credit - katatonia82


There are no comments. Why not be the first?

Add your comment


rail technology magazine tv

more videos >

latest rail news

Cross-party calls for Glasgow airport rail link to be delivered ‘as matter of urgency’

22/01/2019Cross-party calls for Glasgow airport rail link to be delivered ‘as matter of urgency’

The proposed rail link between Glasgow Airport and the city centre must be built “as a matter of urgency,” a... more >
Rail company in bid to build multi-million-pound rail depot near Ipswich station

22/01/2019Rail company in bid to build multi-million-pound rail depot near Ipswich station

Rail company Freightliner has revealed that it is hoping to build a new multi-million pound depot for its trains just ou... more >
Porterbrook awards £11m contract to modify new digital Heathrow Express fleet

22/01/2019Porterbrook awards £11m contract to modify new digital Heathrow Express fleet

Porterbrook has unveiled a £11m contract with Bombardier to modify 12 Class 387 trains in preparation for their us... 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

Trashing the 'ticket' train of thought

22/01/2019Trashing the 'ticket' train of thought

techUK recently published its Future Mobility Services report in which it presented its vision of a multimodal, digitally-enabled, and customer-focused transport ecosystem – with the rail sector forming a major part of this. Jessica Russell, techUK’s programme manager for the Transport and Smart Cities groups under SmarterUK, repor... more >
read more blog posts from 'the sleeper' >


ORBIS: Turning track data into intelligence

22/01/2019ORBIS: Turning track data into intelligence

Track engineer Dan Collins explains how an app and an iPad are transforming track maintenance in Network Rail’s Western route. Carryin... more >
Siemens Deep Tube: Keeping London moving

22/01/2019Siemens Deep Tube: Keeping London moving

Paul Baines, sales director for rolling stock at Siemens Mobility Ltd, expands on the many benefits of the £1.5bn Deep Tube rolling stock c... more >
Guarding against the theft of survey equipment

22/01/2019Guarding against the theft of survey equipment

The high value of survey equipment used to collect geospatial data on the railways is increasingly attractive to opportunistic criminals. The Sur... more >
ORR: Defining an 'efficient' railway

15/01/2019ORR: Defining an 'efficient' railway

Ahead of CP6, Howard Taylor, cost manager of railway planning and performance at the ORR, dives deep into the regulator’s assessment of wha... more >

rail industry focus

View all News


TfN Strategic Transport Plan: not just for transport's sake

22/01/2019TfN Strategic Transport Plan: not just for transport's sake

Peter Molyneux, Transport for the North’s (TfN’s) strategic roads director, has been leading on the development of the seven economic... more >