Latest Rail News

06.06.13

Rail operating costs up £323m

Investment has increased, but operating costs are also higher, Network Rail’s full-year results for 2012/13 show.

Published today, the results show Network Rail’s revenue at £6,197m, with operating profit at £2,217m. Capital expenditure was £5,050m and net debt is now at £30,358m.

Operating costs increased by £323m, largely due to depreciation and extreme weather damage. Staff numbers fell, but staff costs increased.

90.9% of passenger trains ran on time, down from 91.6% last year. However passenger satisfaction is at the record high of 85% and passenger growth is double the rate forecast in 2009.

Network Rail has been advised by the ORR of the need for prospective adjustments to under-performance in asset management, which it is currently assessing. Network Rail has stated that it “does not agree with the principle or the basis of assessment”.

Group finance director, Patrick Butcher, said: “The challenge we have faced over the last year, and will continue to face in the years ahead, is one of success – more people wanting to use more trains, more of the time. Over the last 12 months we have invested an unprecedented amount in growing and expanding the rail network through over 2,000 projects nationwide.

“However, the economic times in which we live mean that alongside delivering new capacity we need to keep a constant drive for improved efficiency. Our overall financial performance remains strong and we are on track to deliver over £5bn of cost savings for the five years to 2014.

“Building capacity and driving efficiency while maintaining performance at today’s historical high levels lie at the heart of our bid for funding for the next five year control period (2014-19) and the future of the company.”

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