- Structure of the rail industry in the United Kingdom
British mainline railways are in the
private sector, with the exception of Translink's Northern Ireland Railways. As such, the vast majority are not controlled by central government, although they are all subject to economic and safety regulation by arms of government.
Northern Ireland, the infrastructure is separately owned and operated - by Network Rail- from the trains which use it.
There are effectively two separate mainline railway systems in the United Kingdom - the
Great Britainsystem and the Northern Irelandsystem, which are regulated operate separately and are constituted under separate pieces of legislation.
Railways in Great Britain are run under a structure established by the
Railways Act 1993(as amended), which provided for the break-up of the former vertically integrated state railway, the British Railways Board, and the transfer of its operations into the private sector. The Secretary of State for Transporthas overall responsiblity for the railways within the Government
In Great Britain, passenger trains are run under either franchises from the
Department for Transportor on an open access basis, which means their operators have no contract with government. Freight train operators have no contracts with government, and rely on the competitiveness and attractiveness of their product and services to maintain and increase their market shares.
Rolling stock is largely owned by rolling stock leasing companies - ROSCOs.
In 2006, using powers in the
Railways Act 2005, the Department for Transporttook over most of the functions of the now wound up Strategic Rail Authority. The DfT now itself runs competitions for the award of passenger rail franchises, and, once awarded, monitors and enforces the contracts with the private sector franchisees. Franchises specify the passenger rail services which are to be run and the quality and other conditions (for example, the cleanliness of trains, station facilities and opening hours, the punctuality and reliability of trains) which the operators have to meet. Some franchises receive subsidy from the DfT for doing so, and some are cash-positive, which means that the franchisee pays the DfT for the contract. Some franchises start life as subsidised and, over their life, move to being cash-positive.
The other regulatory authority for the privatised railway is the
Office of Rail Regulation, which, following the Railways Act 2005, is the combined economic and safety regulator. It replaced the Rail Regulatoron 5 July 2004.
Unlike the other
constituent countriesof the United Kingdom, railways in Northern Ireland are a devolved matter. The Northern Ireland Minister for Regional Development has responsiblity for railways in Northern Ireland. (Even during direct rule, a Minister of Stateat the Northern Ireland Officehas always had responsiblity for railways in Northern Ireland, and not the Secretary of State for Transport).
The structure of the railway industry in Northern Ireland is governed by the
Transport Act 1967 (Northern Ireland)[http://www.opsi.gov.uk/RevisedStatutes/Acts/apni/1967/capni_19670037_en_1] , an Act of the former Parliament of Northern Irelandthat still applies. This established a statutory corporation, the Northern Ireland Transport Holding Company- which trades under the brand name Translink- whose members are appointed by the Minister for Regional Development. The corporation has established a wholly-owned subsidary, Northern Ireland Railways Company Limited - which trades as NI Railways - to carry out its functions relating to railways.
Unlike in Great Britain, where different companies run the network, provide rolling stock, and operate trains, NI Railways carries out all these activities itself in Northern Ireland and is thus a
vertically integratedrailway rather than merely a train operating company. The only exception is the Dublin- Belfastrailway line, where services are operated jointly with Iarnrod Éireann, the nationalised railway company in the Republic of Ireland, under the brand name Enterprise.
* [http://www.sra.gov.uk/publications/national_rail_trends_pubs/nrt_q3_0304/nrt_file_q3 National Rail Trends] 2003-2004 quarter three, from the Strategic Rail Authority. (Warning: PDF format)
* [http://www.dft.gov.uk/stellent/groups/dft_transstrat/documents/page/dft_transstrat_503944.hcsp DfT Transport Ten Year Plan 2000] from the UK Government Department for Transport.
* [http://www.nao.org.uk/publications/nao_reports/03-04/0304532.pdf Network Rail - Making a Fresh Start] - National Audit Office report,
14 May 2004. (Warning: PDF format)
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