Privatisation of Network Rail has been rejected by an official review in favour of devolving more powers to local route managers, encouraging investment in technology and creating a new ‘route for the north’. 

 

Last summer the High Speed 1 chief executive Nicola Shaw (pictured) had been asked by Government to look into options for the future shape and financing of Network Rail. Her report published last week made seven recommendations, including a “step change in the degree of autonomy” for managers on individual routes and the use of private sector finance to encourage innovation.

 

Sector commentators were largely relieved that the review recommends that Network Rail remains as a single entity.

 

The Civil Engineering Contractors Association said that firms’ fears that an overhaul of the rail operator could have delayed vital work have been allayed with publication of the Shaw report.

 

Chief executive Alasdair Reisner said: “With previous experience of major restructuring to industry customers leading to a slowdown in work our members had concerns of change at Network Rail. We welcome the report which should deliver vital reforms needed while allowing existing programmes of work to continue.”

 

AECOM’s European rail sector head Adrian Shaw said: “Rather than radical change the Shaw report advocates steady improvement. This measured approach is the right decision. It is welcome news that the rail network is not being broken up.”

 

Legal firm Stephenson Harwood’s rail partner Tammy Samuel said: “Putting customers at the heart of reform, aligning routes to local areas (including a Network Rail route for the north) and exploring new ways of paying for the railways are included.

 

“However what is more important is what is not in the report. No re-privatisation of Network Rail. No separate concession of a Network Rail route is recommended and no major restructuring of how Network Rail is financed.”

 

He added: “Government will need to digest the report alongside those of Sir Peter Hendy and Dame Collette Bowe to decide whether there is the need or appetite for fundamental reform.”

 

The Campaign for Better Transport welcomed the outcome of the Shaw report and called on Government to implement its findings and resist any further fragmentation of the railways.

 

“Nicola Shaw has made it clear the Government should resist calls to break up or privatise Network Rail,” said its chief executive Stephen Joseph. “She is also clear on the need for longer term planning and greater devolution. 

 

“This would make the railways much more responsive to the communities they serve, while helping simplify the sometimes confused relationship between Network Rail, the Department for Transport and the regulator.”

 

Transport Secretary Patrick McLoughlin welcomed the report and said its recommendations “build on good progress already made by Network Rail and focusses on steps to improve performance for passengers and freight users.”

 

(Photos: HS1 Ltd and Network Rail)