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Network Rail Limited is the owner (via its subsidiary Network Rail Infrastructure Limited, which was known as Railtrack plc before 2002) and infrastructure manager of most of the railway network in
Great Britain Great Britain is an island in the North Atlantic Ocean off the northwest coast of continental Europe. With an area of , it is the largest of the British Isles, the largest European island and the ninth-largest island in the world. It i ...
. Network Rail is an "arm's length" public body of the Department for Transport with no shareholders, which reinvests its income in the railways. Network Rail's main customers are the private train operating companies (TOCs), responsible for passenger transport, and freight operating companies (FOCs), who provide train services on the infrastructure that the company owns and maintains. Since 1 September 2014, Network Rail has been classified as a "public sector body". To cope with fast-increasing passenger numbers, () Network Rail has been undertaking a £38 billion programme of upgrades to the network, including
Crossrail Crossrail is a railway construction project mainly in central London. Its aim is to provide a high-frequency hybrid commuter rail and rapid transit system crossing the capital from suburbs on the west to east, by connecting two major railway l ...
, electrification of lines and upgrading Thameslink. In May 2021, the Government announced its intent to replace Network Rail in 2023 with a new public body called
Great British Railways Great British Railways (GBR) is a planned state-owned public body that will oversee rail transport in Great Britain from 2024, with the exception of Transport for London, Merseytravel services, and light rail and trams elsewhere in England. I ...
. In 2022 it was announced that Great British Railways would not replace Network Rail until 2024.


History


Background

Britain's railway system was built by private companies, but it was nationalised by the Transport Act 1947 and run by British Railways until re-privatisation which was begun in 1994 and completed in 1997. As a part of the privatisation process, the railway infrastructure, passenger and freight services were separated into separate organisations. Between 1994 and 2002, the infrastructure was owned and operated by Railtrack, a privately-owned company. A spate of accidents, including the Southall rail crash in 1997 and the Ladbroke Grove rail crash in 1999 called into question the negative consequences that the fragmentation of the railway network had introduced to both safety and maintenance procedures. Railtrack was severely criticised for both its performance for infrastructure improvement and for its safety record. The Hatfield train crash on 17 October 2000 was a defining moment in the collapse of Railtrack. The immediate major repairs undertaken across the whole British railway network were estimated to have cost in the order of £580 million and Railtrack had no idea how many more 'Hatfields' were waiting to happen because it had lost considerable in-house engineering skill following the sale or closure of many of the engineering and maintenance functions of British Rail to external companies; nor did the company have any way of assessing the consequence of the speed restrictions it was ordering. These restrictions brought the railway network to an almost total standstill and drew significant public ire. According to Wolmar, Railtrack's board panicked in the wake of Hatfield. Railtrack's first chief executive, John Edmonds, had pursued a deliberate strategy of outsourcing engineers' work wherever possible with the goal of reducing costs. Various major schemes being undertaken by Railtrack had also go awry. The modernisation of the
West Coast Main Line The West Coast Main Line (WCML) is one of the most important railway corridors in the United Kingdom, connecting the major cities of London and Glasgow with branches to Birmingham, Liverpool, Manchester and Edinburgh. It is one of the busiest ...
had suffered from spiralling costs, rising from an estimated £2 billion to roughly £10 billion. This programme suffered failures that were technical as well as managerial, such as the
moving block In railway signalling, a moving block is a signalling block system where the blocks are defined in real time by computers as safe zones around each train. This requires both knowledge of the exact location and speed of all trains at any given ti ...
signalling apparatus being immature for such a busy mixed-traffic mainline. In 2000, reports emerged that Railtrack may not be able to go through with its planned commitment to purchase section 2 of High Speed 1, resulting in disruption and uncertainty for that programme as well. In February 2001, Steve Marshall, Railtrack's chairman, warned that Railtrack could have a net debt of approximately £8 billion by 2003. During May 2001, Railtrack announced that, despite making a pre-tax profit before exceptional expenses of £199m, the £733m of costs and compensation paid out over the Hatfield crash had plunged Railtrack from profit into a loss of £534m, and it approached the government for funding, which it controversially used to pay a £137m dividend to its shareholders in May 2001. Months later, Railtrack sought another bailout from the government. On 7 October 2001, Railtrack plc was placed into railway administration under the Railways Act 1993, following an application to the High Court by the then Transport Secretary,
Stephen Byers Stephen John Byers (born 13 April 1953) is a British Labour Party politician who was the Member of Parliament (MP) for Wallsend between 1992 and 1997, and North Tyneside from 1997 to 2010. He served in the Cabinet from 1998 to 2002, and was ...
.


Initial activities

Network Rail Ltd. was created with the express purpose of taking over Britain's railway infrastructure control; this was achieved via its purchase of Railtrack plc from Railtrack Group plc for £500 million; Railtrack plc was then renamed and reconstituted as ''Network Rail Infrastructure Limited''. The transaction was completed on 3 October 2002. The former company had thus never ceased to exist but continued under another name: for this reason Network Rail Infrastructure Ltd was the defendant in later prosecutions in respect of events which had occurred in the days of Railtrack. Network Rail owns the infrastructure, including the railway tracks, signals, overhead wires, tunnels, bridges, level crossings and most stations, but not the passenger or commercial freight rolling stock, other than its limited departmental stock. While it owns over 2,500 railway stations, it manages only 20 of the biggest and busiest of them as all the other stations are managed by the various train operating companies (TOCs). Network Rail should not be confused with
National Rail National Rail (NR) is the trading name licensed for use by the Rail Delivery Group, an unincorporated association whose membership consists of the passenger train operating companies (TOCs) of England, Scotland, and Wales. The TOCs run the ...
, the latter is a brand rather than an organisation, used to inform and promote a nationwide network of passenger railway services. The majority of Network Rail lines also carry freight traffic; some lines are freight only. A few lines that carry passenger traffic are not part of the National Rail network (such as the
Tyne and Wear Metro The Tyne and Wear Metro is an overground and underground light rail rapid transit system serving Newcastle upon Tyne, Gateshead, North Tyneside, South Tyneside, and the City of Sunderland (together forming Tyne and Wear). The network opened in ...
and the
London Underground The London Underground (also known simply as the Underground or by its nickname the Tube) is a rapid transit system serving Greater London and some parts of the adjacent counties of Buckinghamshire, Essex and Hertfordshire in England. The ...
). Conversely, a few National Rail services operate over track which is not part of the Network Rail network. Following an initial period in which Network Rail established itself and demonstrated its competence in addressing the principal challenges of improving asset condition, reducing unit costs and tackling delay, the Government's Rail Review in 2004 said that Network Rail should be given responsibility for whole-industry performance reporting, timetable development, specification of small and medium network enhancements, and the delivery of route-specific utilisation strategies (RUS). Some of these are functions which Network Rail already had; others – such as the obligation to devise route utilisation strategies – were transferred to Network Rail from the Strategic Rail Authority, a non-departmental public body, part of the UK government. The SRA was abolished in November 2006. Network Rail initially sub-contracted much of the infrastructure work to private maintenance companies, such as Carillion and First Engineering; other sub-contractors perform specialist work or additional labour, such as Prima Services Group, Sky Blue, Balfour Beatty, Laboursite, BCL, Atkins (Atkins Rail) and McGinleys. In October 2003, Network Rail announced that it would take over all infrastructure maintenance work from private contractors, following concerns about the quality of work carried out by certain private firms and spiralling costs. In 2007, it was announced that the number of track renewal contractors would be reduced from six to four; Amey/ SECO,
Balfour Beatty Balfour Beatty plc () is an international infrastructure group based in the United Kingdom with capabilities in construction services, support services and infrastructure investments. A constituent of the FTSE 250 Index, Balfour Beatty works acr ...
, Babcock First Engineering and Jarvis plc. Network Rail has expanded its in-house engineering skills, including funding of apprenticeship and foundation degree schemes, and has reported significant savings from transferring work away from contracting companies. Additional work was taken back in-house after the serious accident at Potters Bar and other accidents at Rotherham and King's Cross led to Jarvis's collapse into administration in March 2010. The company moved its headquarters to Kings Place, 90 York Way, from 40 Melton Street, Euston, in August 2008. Two months later, Sir Ian McAllister announced that he would not stand for re-election as chairman of Network Rail after holding the position for six years. He noted that as Network Rail moved to a "new phase in its development" it was appropriate for a new chairman to lead it there. Network Rail also has a 15-year lease on Square One in Manchester with 800 staff in one of Manchester's largest refurbished office spaces. During June 2012, work was completed on the company's new national centre, known as the Quadrant:MK. Based in Milton Keynes about five minutes' walk from , it comprises four buildings connected to a central street, accommodating more than 3,000 people. Various divisions, including engineering, logistics, operations (including timetable planning), IT, procurement, planning and finance departments, and Route Services Supply Chain operations have been transferred to the Quadrant.


Allegations and controversies

In 2009, allegations appeared in the media from the Transport Salaried Staffs' Association concerning treatment of Network Rail employees. Former chief executive
Iain Coucher Iain Michael Coucher (born 22 August 1961) is the serving Chief Executive of the Atomic Weapons Establishment. He has worked as a consultant in the railway industry and held a number of management posts, most notably serving as the Chief Execu ...
was also accused of financial impropriety involving unspecified payments to his business partner Victoria Pender during his tenure at Network Rail. An internal investigation held by Network Rail in 2010, vetted by its auditors PricewaterhouseCoopers, uncovered no evidence of wrongdoing. An independent enquiry headed by Anthony White QC in 2011 further examined the claims, but also exonerated Coucher. Critical commentary appeared in the media concerning the
knighthood A knight is a person granted an honorary title of knighthood by a head of state (including the Pope) or representative for service to the monarch, the church or the country, especially in a military capacity. Knighthood finds origins in the ...
awarded to John Armitt in the
2012 New Year Honours 1 (one, unit, unity) is a number representing a single or the only entity. 1 is also a numerical digit and represents a single unit of counting or measurement. For example, a line segment of ''unit length'' is a line segment of length 1. ...
for services to engineering and construction. Armitt was Chief Executive of Network Rail at the time of the 2007 Grayrigg derailment and the family of a victim of the accident criticised the award, which coincidentally was conferred on the same day that Network Rail were prosecuted for the accident.


Regional reorganisation and shared responsibilities

During February 2011, it was announced that Network Rail had begun the process of reorganising its operational structure into nine semi-autonomous regional entities, each with their own managing director; the first two units to be created were Scotland and Wessex regions. The reorganisation has been interpreted as a move back towards vertical integration of track and train operations. In December 2016, the Transport Secretary,
Chris Grayling Christopher Stephen Grayling (born 1 April 1962) is a British Conservative Party politician and author who served as Secretary of State for Transport from 2016 to 2019. He has served as Member of Parliament (MP) for Epsom and Ewell since 2001. ...
announced that Network Rail would lose sole control of track maintenance and repairs, and instead would share this with the Train Operating Companies.


Electrification schemes

During March 2011, the British government announced that the Great Western Main Line would be electrified as far as Bristol Temple Meads. Within four years, this programme, which was headed by Network Rail, was beset by poor planning and cost overruns, leading to the shortcomings being scrutinised by Parliament. Specifically, the projected cost had increased from £1.2 billion to £2.8 billion by the end of 2015, while the project's timetable was also delayed to the extent that the government had to request Hitachi to retrofit the new high speed trainsets procured under the
Intercity Express Programme The Intercity Express Programme (IEP) is an initiative of the Department for Transport (DfT) in the United Kingdom to procure new trains to replace the InterCity 125 and InterCity 225 fleets on the East Coast Main Line and Great Western Main Li ...
with diesel engines as well as electric traction. In July 2017, the government announced that, in response to the programme's continued difficulties, the scope of the electrification scheme had been decreased; specifically, it would only be completed as far as Thingley Junction, west of Chippenham, while the electrification of other lines, including Bristol Parkway to Temple Meads and Didcot to Oxford, was also postponed. During 2011, work commenced to extend the electrification of the
Midland Main Line The Midland Main Line is a major railway line in England from London to Nottingham and Sheffield in the Midlands. It comprises the lines from London's St Pancras station via Leicester, Derby/Nottingham and Chesterfield in the East Midlands ...
, including to both Corby and Nottingham. In July 2017, it was announced the then-Secretary of State for Transport
Chris Grayling Christopher Stephen Grayling (born 1 April 1962) is a British Conservative Party politician and author who served as Secretary of State for Transport from 2016 to 2019. He has served as Member of Parliament (MP) for Epsom and Ewell since 2001. ...
that the electrification scheme north of Kettering to Derby, Nottingham and Sheffield had been cancelled and that bi-mode trains would be used instead. However, in May 2022, a briefing to contractors was released ahead of an invitation to tender for Midland Mainline Electrification project work to extend electrification to Nottingham and Sheffield. This scheme is expected to cost £1.3 billion. Network Rail has undertaken numerous schemes to develop its own renewable electrical generation footprint, which is used in part to power the operational railway. In January 2014, Network Rail opened the world's largest solar-powered bridge, adjacent to the remains of the old
Blackfriars Railway Bridge Blackfriars Railway Bridge is a railway bridge crossing the River Thames in London, between Blackfriars Bridge and the Millennium Bridge. First bridge There have been two structures with the name. The first bridge was opened in 1864 and was d ...
, across the
River Thames The River Thames ( ), known alternatively in parts as the River Isis, is a river that flows through southern England including London. At , it is the longest river entirely in England and the second-longest in the United Kingdom, after the R ...
. The roof of the new railway bridge is covered with 4,400 photovoltaic panels, providing up to half of the energy requirement for London Blackfriars station. Various locations across Network Rail's property portfolio, including stations and depots. In August 2022, an agreement between the company and EDF was signed to provide more solar energy.


Planned demise

In May 2021, the Government announced that Network Rail is to superseded by a new body,
Great British Railways Great British Railways (GBR) is a planned state-owned public body that will oversee rail transport in Great Britain from 2024, with the exception of Transport for London, Merseytravel services, and light rail and trams elsewhere in England. I ...
, in 2023.


Funding

Network Rail is a not-for-profit organisation. The majority of funding comes from a mix of direct grants and borrowing from the UK and Scottish Governments, payments from train and freight operators and a small amount of income from commercial property estate. Network Rail works in five-year funding cycles called "Control Periods" (CP for short). The government specifies what is needed from Network Rail and sets out how much the government can afford to contribute. The
Office of Rail and Road The Office of Rail and Road (ORR) is a non-ministerial government department responsible for the economic and safety regulation of Britain's railways, and the economic monitoring of National Highways. ORR regulates Network Rail by setting its ...
(ORR) then sets the level of fixed income that Network Rail is allowed to charge and assesses the amount of money needed by Network Rail to run efficiently. The last Control Period ran from 2014 to 2019; 1 April 2019 was the start of ''Control Period 6''. In 2019, government funding for train operating companies amounted to £4.1 billion, paying access charges to use the rail network, £2.1 billion and freight £58 million. In 2019, it spent £3.1 billion on renewals (restoring existing infrastructure back to how it was when new) and £3.2 billion on enhancements, with the rest spent on maintenance and other costs.


Assets


Infrastructure

Network Rail covers 20,000 miles of track, and 30,000 bridges, tunnels and viaducts. They claim to run the world's largest
third rail A third rail, also known as a live rail, electric rail or conductor rail, is a method of providing electric power to a railway locomotive or train, through a semi-continuous rigid conductor placed alongside or between the rails of a railway ...
network. In February 2004, an operations centre at Waterloo station in London was opened, which was operated jointly by Network Rail and
South West Trains Stagecoach South Western Trains Limited, trading as South West Trains (SWT), was an English train operating company owned by Stagecoach, which operated the South Western franchise between February 1996 and August 2017. SWT operated the majorit ...
. This was the first full collaboration of its kind since privatisation, and it is regarded as a model for other areas of the network, with a further six integrated Network Rail + TOC Control Centres having opened since then, at Blackfriars, Croydon (Leading Control for Thameslink), , ,
Glasgow Glasgow ( ; sco, Glesca or ; gd, Glaschu ) is the most populous city in Scotland and the fourth-most populous city in the United Kingdom, as well as being the 27th largest city by population in Europe. In 2020, it had an estimated popul ...
and, most recently, Liverpool Street and South Wales based in Cardiff Canton. Track renewal, the ongoing modernisation of the railway network by replacing track and signalling, continues to be carried out by private engineering firms under contract. The biggest renewals projects include the multibillion-pound upgrade of the London – Glasgow
West Coast Main Line The West Coast Main Line (WCML) is one of the most important railway corridors in the United Kingdom, connecting the major cities of London and Glasgow with branches to Birmingham, Liverpool, Manchester and Edinburgh. It is one of the busiest ...
, which was completed in 2008, the
Thameslink Programme The Thameslink Programme, originally Thameslink 2000, was a £6billion project in south-east England to upgrade and expand the Thameslink rail network to provide new and longer trains between a wider range of stations to the north and to the ...
to upgrade the north–south railway through London and work on the part of
Crossrail Crossrail is a railway construction project mainly in central London. Its aim is to provide a high-frequency hybrid commuter rail and rapid transit system crossing the capital from suburbs on the west to east, by connecting two major railway l ...
which is operated by Network Rail. A line closure for engineering or renewal works is known as a possession. Network Rail has an internal infrastructure database known as GEOGIS. The system uses codes for four-digit Track IDs to identify which line at any location is referred to. The first number refers to track direction, with values of 1 (Up), 2 (Down), 3 (Reversible/Bi-directional), or 4 (Merry Go Round Loop). The second number refers to track use, which can be 1 (Main or Fast), 2 (Slow, Local or Relief), 3 (Goods), 4 (Single line), 5 (Loop), 6 (Terminal or Bay), 7 (Crossover), 8 (Other or Engine), or 9 (Single Siding). The third and fourth numbers refer to the track number, which can be any number from 00 to 99 inclusive, and are usually numbered sequentially. In 2006, Network Rail made public a high-tech plan to combat the effects of slippery rail. This plan involves the use of satellites for tracking trouble areas, water-jetting trains and crews using railhead scrubbers, sand sticks and a substance called Natrusolve, which dissolves leaf mulch.


Stations

Network Rail owns more than 2,500 railway stations, divided into six categories. Management and operation of most of them is carried out mostly by the principal train operating company serving that station; however, in a few cases the train operating company does not serve the station. For example, is served by CrossCountry, but it is managed by East Midlands Railway. As of April 2018, Network Rail manages 20 stations directly, with Clapham Junction and Guildford becoming managed stations on 1 April 2018. The stations Network Rail operate are: National * * * * * * * * * * * * Central London stations * London Bridge * London Cannon Street * * * * London Liverpool Street * London Paddington * London St Pancras International *
London Victoria Victoria station, also known as London Victoria, is a central London railway terminus and connected London Underground station in Victoria, in the City of Westminster, managed by Network Rail. Named after the nearby Victoria Street (not the Q ...
* London Waterloo Glasgow Central and Liverpool Lime Street stations are divided into high and low-level stations – the high-level stations are all termini used primarily by the main inter-city services to those stations. The low-level stations are through routes on local commuter networks that are largely separate from other routes to the main station; these platforms are not managed by Network Rail, but instead the rail operator that primarily uses them (
Abellio ScotRail Abellio ScotRail, operating services under the name ScotRail, was the national train operating company of Scotland. A subsidiary of Abellio, it operated the ScotRail franchise from 1 April 2015, taking over from predecessor First ScotRail. ...
and Merseyrail respectively). Network Rail operated station until January 2012 when it was transferred to Southern, and until November 2014 when it was transferred to c2c. Network Rail took over management of Bristol Temple Meads and Reading in April 2014. A DfT franchise report in 2014 stated Network Rail's intention to subsume more major stations into Network Rail's directly operated portfolio. The report earmarked for Network Rail management, as well as Manchester Oxford Road and
Manchester Victoria Manchester Victoria station in Manchester, England is a combined mainline railway station and Metrolink tram stop. Situated to the north of the city centre on Hunts Bank, close to Manchester Cathedral, it adjoins Manchester Arena which was co ...
which are currently undergoing major rebuilding as part of the
Northern Hub The Northern Hub was a rail upgrade programme between 2009 and 2020 in Northern England to improve and increase train services and reduce journey times between its major cities and towns, by electrifying lines and removing a major rail bottlenec ...
. However the two Manchester stations remained under the operatorship of
Arriva Rail North Arriva Rail North, branded as Northern by Arriva (legal name Arriva Rail North Limited) was a train operating company in Northern England which began operating the Northern franchise on 1 April 2016 and inherited units from the previous operato ...
.


Training facilities

Network Rail has several training and development sites around Britain. These include sites in York, Peterborough, Derby, Leeds, Walsall and
Larbert Larbert ( gd, Lèirbert/Leth-pheairt, sco, Lairbert) is a small town in the Falkirk council area of Scotland. The town lies in the Forth Valley above the River Carron which flows from the west. Larbert is from the shoreline of the Firth of F ...
which provide refresher courses, and train staff in new equipment. Advanced Apprentice Scheme trainees are trained at Network Rail's Westwood training centre for the first five months of their apprenticeship and then are trained further at in Gosport over seven 2-week periods or five 3-week periods (throughout their second and third year) of their apprenticeship, using a combination of
Royal Navy The Royal Navy (RN) is the United Kingdom's naval warfare force. Although warships were used by English and Scottish kings from the early medieval period, the first major maritime engagements were fought in the Hundred Years' War against ...
facilities and a specially installed training centre. All courses are taught by VT Flagship (part of
Babcock International Babcock International Group plc is a British aerospace, defence and nuclear engineering services company based in London, England. It specialises in managing complex assets and infrastructure. Although the company has civil contracts, its main b ...
) in the first year but apprentices are trained by Network Rail staff in the second and third years. Network Rail bought a residential centre from Cable and Wireless in the Westwood Business Centre near Coventry for leadership development. The company and other industry partners such as
VolkerRail VolkerRail is a specialist railway infrastructure services company based in Doncaster, England, providing services across the United Kingdom and Ireland. It is wholly owned by Netherlands-based VolkerWessels, a multi-disciplinary construction a ...
and Balfour Beatty also operate a Foundation Degree in conjunction with Sheffield Hallam University. In 2008, Network Rail piloted its first qualification in "track engineering". It has been given permission to develop courses equivalent to GCSE and A-levels.


Telecoms assets

Network Rail operates various essential telecommunication circuits for signalling and electrification control systems, train radio systems, lineside communications, level crossing CCTV, station information and security systems as well as more general IT and business telephony needs. The fixed bearer network infrastructure comprises transmission systems and telephone exchanges linked by a fibre optic and copper cable network that is located mainly within trackside troughing routes on the former
British Rail Telecommunications British Rail Telecommunications was created in 1992 by British Rail (BR). It was the largest private telecoms network in Britain, consisting of 17,000 route kilometres of fibre optic and copper cable which connected every major city and town in th ...
network. (It is the largest private telecoms network in the UK). Network Rail operates several analogue radio networks that support mobile communication applications for drivers and lineside workers which consist of base stations, antenna systems and control equipment. The National Radio Network (NRN) was developed specifically for the operational railway; it provides radio coverage for 98% of the rail network through 500 base stations and 21 radio exchanges. The Radio Electronic Token Block
RETB Radio Electronic Token Block is a system of railway signalling used in the United Kingdom. It is a development of the physical token system for controlling traffic on single lines. The system is slightly similar to North American Direct Traffic ...
system is based on similar technology as the NRN and ORN but provides data communication for signalling token exchange as well as voice communication. Fixed communication at trackside is provided by telephone. These are primarily provided for signallers to communicate with train crew, via telephones mounted on signal posts, and with the public through telephones located at level crossings. GAI-Tronics provides many of the telephones sited on trackside and at level crossings. They also provide Public Access Help Points on platforms and stations to provide passengers with easy access to Information and Emergency control centres. GSM-R radio systems are being introduced across
Europe Europe is a large peninsula conventionally considered a continent in its own right because of its great physical size and the weight of its history and traditions. Europe is also considered a subcontinent of Eurasia and it is located entirel ...
under EU legislation for interoperability. In the UK, as of March 2014, Network Rail is well underway in the UK implementation of GSM-R to replace its legacy National Radio Network (NRN) and Cab Secure Radio (CSR) systems currently in use.


Rolling stock

Network Rail operates a large variety of DMUs, locomotives and rolling stock to perform safety checks and maintenance (this fleet is not to be confused with the combined rolling stock assets of
Rail Delivery Group The Rail Delivery Group (RDG), previously the Association of Train Operating Companies, is the British rail industry membership body that brings together passenger and freight rail companies, Network Rail and High Speed 2. History From 24 Oc ...
members who work in combination as ''
National Rail National Rail (NR) is the trading name licensed for use by the Rail Delivery Group, an unincorporated association whose membership consists of the passenger train operating companies (TOCs) of England, Scotland, and Wales. The TOCs run the ...
''). As well as the multiple units and locomotives detailed below, Network Rail own and operate a large stock of rolling stock for particular testing duties and track maintenance. Network Rail also hire freight locomotives from various freight operators including
DB Cargo UK DB Cargo UK (formerly DB Schenker Rail UK and English, Welsh & Scottish Railway (EWS)), is a British rail freight company headquartered in Doncaster, England. The company was established in early 1995 as ''North & South Railways'', successful ...
, Freightliner,
Colas Rail Colas Rail is a railway infrastructure and rail freight company primarily active in the United Kingdom. It is a subsidiary of the French industrial group Bouygues. Colas Rail was originally created as ''Seco Rail'', named after its then-pare ...
and GB Railfreight amongst others to operate engineers' trains in support of maintenance and renewal work. Network Rail's Infrastructure Monitoring fleet of test trains is operated by Colas Rail, primarily using locomotives from Colas' and Network Rail's own fleets, but have also used locomotives hired from other companies such as Direct Rail Services, GB Railfreight and Europhoenix as required.


Development


Current investment programme

From 1997 to 2014 (inclusive), passenger numbers have more than doubled, following little growth in the previous decades. To cope with the increasing passenger numbers, Network Rail is currently undertaking a £38 billion programme of upgrades to the network, including
Crossrail Crossrail is a railway construction project mainly in central London. Its aim is to provide a high-frequency hybrid commuter rail and rapid transit system crossing the capital from suburbs on the west to east, by connecting two major railway l ...
, electrification of lines, in-cab signalling, new inter-city trains, upgrading Thameslink, and a new high-speed line.


The GRIP process

For investment projects, as opposed to routine maintenance, Network Rail has developed an eight-stage process designed to minimise and mitigate risks. This is known as the Governance for Railway Investment Projects (GRIP), previously known as “Guide to Rail Investment Projects”. The stages are as follows: # output definition; # pre-feasibility; # option selection; # single option development; # detailed design; # construction, test and commission; # scheme hand back; # project close out. Each stage delivers an agreed set of outputs to defined quality criteria. The process has been criticised as cumbersome by some and it is proposed to replace it with a new process with the acronym PACE- Project Acceleration in a Controlled Environment.


Control periods

For financial and other planning purposes, Network Rail works within 5-year "Control Periods", each one beginning on 1 April and ending on 31 March to coincide with the financial reporting year. These periods were inherited from Railtrack, so that the earlier ones are retrospective, and not necessarily of 5 years duration. They are as follows: * Control Period 1 (CP1): 1995–1999 * Control Period 2 (CP2): 1999–2004 * Control Period 3 (CP3): 2004–2009 * Control Period 4 (CP4): 2009–2014 * Control Period 5 (CP5): 2014–2019 * Control Period 6 (CP6): 2019–2024 * Control Period 7 (CP7): 2024–2029 * Control Period 8 (CP8): 2029–2034 The Secretary of State for Transport regularly issues a ''High-Level Output Specification'' (HLOS) indicating what work the Government wishes to be undertaken during a given Control Period.


Route plans

Network Rail regularly publishes a Strategic Business Plan detailing their policies, processes and plans, as well as financial expenditure and other data. The most recent complete business plan was published in January 2013. Within these plans the rail network is divided into ten “devolved routes” or “operational routes”, with a Route Plan for each being published annually. Each route or other plan covers a number of railway lines usually defined by geographical area and the routes are further subdivided into 17 “strategic routes”, each divided into Strategic Route Sections (SRS) and given an SRS number and name. The plans also detail the geography of routes, stations, major junctions, capacity constraints and other issues and provide data on freight gauge, electrification, line speed, number of tracks, capacity and other information. The plans also detail the expected future demand and development of each route, their predicted expenditure and their maintenance and investment requirements. The devolved routes were introduced in 2011, and the 17 strategic routes labelled "A" to "Q" were introduced in 2010. From 2004 to 2009, the network had been divided into 26 strategic routes numbered "1" to "26". In 2003, the network had been divided into 41 strategic routes numbered "1" to "41". The 2011 devolved routes and strategic routes are organised as in the table below.


Governance structure and accountability


Formal governance structure

The company is accountable to a body of members through its corporate constitution, to its commercial train operator customers through its contracts with them (the contracts are subject to regulatory oversight), and to the public interest through the statutory powers of the
Office of Rail and Road The Office of Rail and Road (ORR) is a non-ministerial government department responsible for the economic and safety regulation of Britain's railways, and the economic monitoring of National Highways. ORR regulates Network Rail by setting its ...
(ORR). Since Network Rail does not have shareholders, its members hold the board of directors to account for their management of the business. From 1 July 2015 all the members were removed leaving the special member, the Secretary of State for Transport, as the sole member of Network Rail. Previously at any one time there were around 100 members in total, drawn from a wide range of industry partners and members of the public. There were two general categories of membership, industry members comprising any organisation holding a licence to operate on the railway or preferred bidder for a railway franchise, and public members who were drawn from the wider stakeholder community. Members were appointed by an independent panel and served a three-year term. They had a number of statutory rights and duties which included attending annual general meetings, receiving the Annual Report and Accounts, and approving the appointment or re-appointment of Network Rail's directors. Members had a duty to act in the best interests of the company without personal bias. They received no payments other than travel expenses. Setting the strategic direction and the day-to-day management of Network Rail is the responsibility of the company's board of directors. That direction must be consistent with the regulatory jurisdiction of the ORR, and with the requirements of its contracts. The ORR in turn operates within the overall transport policy set by the UK Department for Transport and the Scottish government, including as to what the government wants the railway industry to achieve and how much money the government is prepared to put into the industry. This means that the degree of government influence and control over the company is higher than it was before these enlargements of the powers and role of the government were introduced by the
Railways Act 2005 The Railways Act 2005 (c 14) is an Act of the Parliament of the United Kingdom concerning the regulatory structure for railways in the United Kingdom. Overview The bill was introduced and published on 25 November 2004 and received royal as ...
.


Monitoring Network Rail's performance

The
Office of Rail and Road The Office of Rail and Road (ORR) is a non-ministerial government department responsible for the economic and safety regulation of Britain's railways, and the economic monitoring of National Highways. ORR regulates Network Rail by setting its ...
(ORR) monitors Network Rail's performance on a continuous basis against targets established by the regulatory authority in the most recent access charges review (2003), against obligations in the company's network licence and against forecasts in its own business plan. If performance is poor, the company will face criticism and possible enforcement action from its commercial customers (under their contracts) and from the ORR (enforcing the company's network licence). It may also be criticised by its members in general meeting. In the annual report 2014/15, the ORR reported that the
Public Performance Measure The public performance measure (PPM) is a measure of the punctuality and reliability of passenger trains in Britain. It is the percentage of scheduled trains which successfully run their entire planned route, calling at all timetabled stations ...
(PPM) was 89.6%, 1.4 percentage points (pp) below target in England and Wales, and PPM in Scotland was 90.5%, 1.5pp below its regulatory performance target of 92%.


Informal governance groups


Railway Industry Planning Group (RIPG)

The Railway Industry Planning Group (RIPG), chaired by Network Rail, has as its purpose railway industry input into the structure and development of the national railway strategic planning processes. Its members are drawn from railway funders, operators and users, and the group meets quarterly to consider: * rail industry liaison with regional and local government * Regional (and Scotland and Wales) Planning Assessments * Route Utilisation Strategies * specification of passenger operator franchises * High Level Output Specifications and Network Rail's Strategic Business Plan * Network Rail's Business Planning Criteria, Business Plan and Route Plans.


Directors

Current board Previous chairmen Previous chief executives


Safety

While generally good, the safety record of the company was marred in February 2007 when a Virgin express derailed at Grayrigg in Cumbria. Network Rail admitted responsibility for the incident. The RAIB investigation concluded in 2009 that a faulty set of points had caused the derailment. In 2012 the Office of Rail Regulation announced that Network Rail was to be prosecuted under the Health and Safety Act for "failure to provide and implement suitable and sufficient standards, procedures, guidance, training, tools and resources for the inspection and maintenance of fixed stretcher bar points". Network Rail pleaded guilty and were fined £4.1 million including legal costs. In December 2005, two young girls were killed by a train as they were crossing the railway line via a pedestrian
level crossing A level crossing is an intersection where a railway line crosses a road, path, or (in rare situations) airport runway, at the same level, as opposed to the railway line crossing over or under using an overpass or tunnel. The term a ...
at in Essex. Network Rail was prosecuted for breaching
health and safety Occupational safety and health (OSH), also commonly referred to as occupational health and safety (OHS), occupational health, or occupational safety, is a multidisciplinary field concerned with the safety, health, and welfare of people at wo ...
law and fined £1 million in March 2012. The court heard that risk assessments carried out by Network Rail staff in 2002 had identified potential dangers with the crossing and recommended the installation of gates that would lock automatically as trains approached, but this was not acted upon. Many track safety initiatives have been introduced in the time Network Rail has been operational. One high-profile measure, announced in December 2008, known as "All Orange", states that all track personnel must not only wear orange hi-vis waistcoats or jackets, but must also wear orange hi-vis trousers at all times when working on or near the track. This ruling came into force in January 2009 for maintenance and property workers and in April 2009 for infrastructure and investment sites. All workers working on or near the line or trackside have to pass a medical assessment and a drug and alcohol test. They must also sit a Personal Track Safety training course and undergo assessment to be issued with a PTS card (reassessment is required every two years). Network Rail workers undergo periodic assessments as part of the Skills Assessment Scheme, formerly called the AITL process (Assessment in the Line). This requires each worker to go through questions on a computer based program on all the competencies held.


Private versus public-sector status

In 2001, the then Labour government denied that it had nationalised the rail network in order to prevent Railtrack's shareholders claiming, via the European Court of Human Rights, the four-year average price of Railtrack, about £10 per share. Instead, Railtrack's shareholders were given only £2.60. ''The Times'' reported that Gordon Brown's aide, Shriti Vadera e-mailed
Stephen Byers Stephen John Byers (born 13 April 1953) is a British Labour Party politician who was the Member of Parliament (MP) for Wallsend between 1992 and 1997, and North Tyneside from 1997 to 2010. He served in the Cabinet from 1998 to 2002, and was ...
in July 2001 asking: "Can we engineer the solution through insolvency ... and therefore avoid compensation under the Human Rights Act?" Railtrack plc was placed into railway administration under the
Railways Act 1993 The Railways Act 1993c 43 was introduced by John Major's Conservative government and passed on 5 November 1993. It provided for the restructuring of the British Railways Board (BRB), the public corporation that owned and operated the national ra ...
on 7 October 2001, following an application to the High Court by the then Transport Secretary, Stephen Byers. It was reported in November 2001 that a further £3.5 billion might be needed to keep the national railway network running, a sum disputed by Ernst & Young, the administrators. To get Railtrack out of administration, the government had to return to the High Court and present evidence that the company was no longer insolvent. The principal reason given by the government to the court for this assertion was the decision of the rail regulator in 2002 to carry out an interim review of the company's finances, with the potential to advance significant additional sums to the company. The High Court accepted that the company was not insolvent, and the railway administration order was discharged in October 2002. Until 2013, there was discussion over whether Network Rail should be classified as a public-sector or a private-sector entity. Although it was officially a private sector organisation, the fact that its debts were underwritten by the government, and it was partly funded by the government, led to the description of "nationalisation in all but name". It was also claimed that the government is keen for Network Rail not to be classified as a public-sector organisation, as this would mean that the company's debt would be counted as public expenditure liabilities. The Office for National Statistics (ONS) repeatedly clashed with the National Audit Office and the
Statistics Commission The Statistics Commission was a non-departmental public body established in June 2000 by the UK Government to oversee the work of the Office for National Statistics. Its chairman was Professor David Rhind who succeeded the first chairman, Sir J ...
over whether the successor to Railtrack should be considered a private company – as the ONS believed – or included on the Government's books, as the National Audit Office argued. The NAO said that as the Government is bearing the risk that would normally be borne by equity capital, and as it can appoint, through the SRA, a director who cannot be removed by members, Network Rail is effectively a subsidiary of the Government-controlled SRA. In December 2013, the ONS announced that Network Rail would be classified as a "government body" from September 2014. As a result, the company's debt of £34 billion was added to the national debt. In the 2016–17 financial year, Network Rail's net debt rose from £41.6 billion to £46.3 billion.


Photography competition

Network Rail organises the Landscape Photographer of the Year competition. Shortlisted photos are displayed at London Waterloo and other major stations.


See also

* Campaign to Bring Back British Rail *
Northern Ireland Railways NI Railways, also known as Northern Ireland Railways (NIR) ( ga, Iarnród Thuaisceart Éireann); and for a brief period Ulster Transport Railways (UTR), is the railway operator in Northern Ireland. NIR is a subsidiary of Translink, whose paren ...
* Financing of the rail industry in Great Britain


References


External links

* * {{authority control Government-owned companies of the United Kingdom Post-privatisation British railway companies Railway companies established in 2002 Railway infrastructure companies 2002 establishments in England Department for Transport Non-departmental public bodies of the United Kingdom government Government-owned railway companies