Rail Partners, the trade association for independent passenger owning groups, has called for a reinvigorated public-private partnership to get Britain's railways back on the track to growth.
In a new report, Track to Growth: Creating a dynamic railway for passengers and the economy, Rail Partners sets out the significant and complex challenges currently facing the railway. These include:
- A decline in passenger numbers since the pandemic
- A lack of investment in infrastructure
- A complex and outdated fares system
- Industrial disputes
The report argues that the evidence shows that a thriving railway should be a shared responsibility between the public and private sectors.
Andy Bagnall, chief executive of Rail Partners said: "Train companies, domestically in the past and across the continent right now, have shown the skills needed to grow passenger numbers and reduce costs for the taxpayer.
"But the public sector also has a vital role to play in setting the strategic direction for the railway, providing infrastructure, and ensuring that passengers are treated fairly.
"The ideological battles of public versus private are holding back progress. We need to put these aside and focus on what works best for customers and taxpayers."
The report calls for a number of reforms to the railway, including a simplified fares system, more investment in infrastructure and a new culture of collaboration between the public and private sectors.
"The railway is a vital part of our economy and our society," said Bagnall. "It has the potential to be a catalyst for growth and prosperity. But we need to act now to make sure that it is fit for the future."
Rail Partners highlighted the difference between the UK and its European counterparts as a study showed the benefits of competition on routes. It revealed;
- Reduction in subsidy by 15-50% – subsidy has reduced where contracts have been competed rather than directly awarded, freeing up public money for other uses
- Operational efficiency gains of 20-50% – where national and regional European governments have adopted a competitive tendering process, rather than direct awards, operational efficiency gains have been realised, allowing for more services on the network
- Increased service levels up to 60% on some routes – in the countries examined where operators compete on the same routes, evidence shows that the number of departures increased, offering more choice to passengers.
- An increase of up to 40% more passengers on routes where operators compete, while demand on regional competitively tendered lines outperformed untendered long-distance lines in some countries.
- Fares falling by 15-50% on routes where there is competition, open access operators offered fare reductions of between 15-50% immediately following entry, with fares being typically around 20-60% lower than that of the incumbent over time.
Mr Bagnall concluded that ‘This is one of the most wide-ranging studies on the emerging impacts of rail liberalisation in the EU to date. We can draw on the experience of managed competition across Europe to deliver benefits here in Britain.”
Photo: Rail Partners
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