Given the recent Spending Review and infrastructure strategy that signal a shift in government priorities, as well as the funding landscape for transport infrastructure, it is vital to consider all means of funding rail projects.
In order to discuss this topic and share their expert insight, TransCityRail South 2025 brought together Robert Cook from the Rail Industry Association, Naomi Green from England’s Economic Heartland, and Network Rail’s Marco Buffoni.
As the government look to engage with the private sector to drive more investment in rail projects, this discussion was focused on the impact that public-private partnerships (PPPs) can have on unlocking new avenues of funding.
Marco, Network Rail’s Senior Private Finance Manager, enlightened delegates on just how important PPPs can be for the rail industry. He said:
“They’re critical. If you look at what happened in other countries like France, Spain and Canada, they’ve been hugely successful. In the UK not all PPPs have been great but for the best part, they’ve been good.
“I think that the key question is really, what is the right revenue model for PPPs and the risk allocation?”
Whilst Marco has outlined the importance of PPPs in delivering funding for rail projects, Naomi, Managing Director of England’s Economic Heartland, touched on how it is down to the government to change how they work. By changing their working practices, it can help to bring further funding into the industry. Naomi said:
“You need a really good willingness of people in the Treasury and the Department for Transport to work with more agility.
“We work quite a lot with businesses that are interested in investing in transport infrastructure and the reality is that they will develop a business case and then it will get stuck somewhere in the system. They’re (the government) not willing to carry the revenue risk, the operational risk… they’re not willing to allow a private sector organisation to take that risk.”
This shift in mentality from the government will be crucial in allowing PPPs to successfully invest in transport across the country. This sentiment was supported by Robert Cook, Policy Director at the Rail Industry Association, who said that the government needs to ‘shift from being a gatekeeper, to being a facilitator.’
“(We need to) have that conversation up front with all parties about how the model can work and what we’re willing to do,” Robert continued. “I think what’s interesting about the infrastructure strategy is that the mood in the Treasury has shifted. They’re definitely willing to have the conversation now, and we’ve got to seize that.”
If the rail industry can bring effective business cases for PPPs forward, and if the government remains willing to discuss the potential new revenue streams, it could be a game-changer for the industry. With infrastructure projects often struggling for funding, the shift in mindset from government can drive tangible improvement from the rail sector, which continues to serve as a facilitator of growth.
