Network Rail
Network Rail is the government-created owner and operator of most of the rail infrastructure in Great Britain (England, Scotland and Wales). It does not include the other UK state operator, Northern Ireland Railways. Network Rail is a British "not for dividend" entity, technically a private company limited by guarantee, whose principal asset is Network Rail Infrastructure Limited, a company limited by shares.
Network Rail's main customers are the separate and mostly private-sector 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. Network Rail does not itself run passenger or freight services; ultimately both Network Rail and the train operating companies have the shared responsibility of delivering train services to the travelling public.
History
Britain's railway system was built by private companies, but it was nationalised by the Transport Act 1947 and run by British Rail until re-privatisation in the 1990s. Infrastructure and passenger and freight services were separated at that time. Between 1994 and 2002 the infrastructure was owned and operated by Railtrack.
The Hatfield crash on 17 October 2000 was a defining moment in the collapse of Railtrack. The immediate major repairs undertaken across the whole British rail 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, which all but brought the railway network to a standstill. The costs of modernising the West Coast Main Line were also spiralling. In 2001, Railtrack announced that, despite making a pre-tax profits 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 then used to pay a £137m dividend to its shareholders in May 2001. Network Rail took over ownership by buying Railtrack plc, which was in "railway administration", from Railtrack Group plc for £500 million. The purchase was completed on 3 October 2002.
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 White Paper 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 subsequently abolished.
The company moved to its current headquarters at Kings Place, 90 York Way, from 40 Melton Street, Euston, on 26 August 2008.
On 3 October 2008, Sir Ian McAllister announced that he would not stand for re-election as chairman of Network Rail. He had held 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.
Many track safety initiatives have been introduced in the time Network Rail has been responsible for this area. The latest, 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 new safety ruling came into force on 1 January 2009 for maintenance and property workers and on 1 April 2009 for infrastructure and investment sites.
In 2011 the company began 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 re-organisation has been interpreted as a move back towards vertical integration of track and train operations.
Responsibilities
Network Rail owns the infrastructure, including the railway tracks, signals, tunnels, bridges, level crossings and most stations, but not the passenger or commercial freight rolling stock. Network Rail took over ownership by buying Railtrack plc, which was in "railway administration", from Railtrack Group plc for £500 million.
Although it owns over 2,500 railway stations, it manages only 18 of the biggest and busiest of them, all the other stations being managed by one or other of the various train operating companies (TOCs). Network Rail had a 15-year lease on Square One in Manchester with 800 staff in one of Manchester's largest refurbished office spaces.
Network Rail should not be confused with 'National Rail'. National Rail is not an organisation, but merely a brand, used to explain and promote a Great-Britain-wide 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 (for example High Speed 1, Heathrow Express, Tyne And Wear Metro and the London Underground). Conversely, a few National Rail services operate over track that is not part of the Network Rail network (for example where they run on London Underground track).
The current Chairman is Rick Haythornthwaite, and David Higgins is currently appointed as the Chief Executive.