Local Transport Today is the authoritative, independent journal for transport decision makers. Analysis, Comment & News on Transport Policy, Planning, Finance and Delivery since 1989.

Study raises cost of local rail and reveals freight subsidy

RAIL

Andrew Forster
09 June 2017
Northern: higher costs using NR’s new method
Northern: higher costs using NR’s new method

 

Urban and rural rail services are more costly to provide than previously thought, and the taxpayer pays almost £200m a year to keep the rail network capable of carrying freight, according to a new method for allocating rail industry fixed costs commissioned by Network Rail.  

Brockley Consulting, a specialist in regulatory and competition matters, has developed a method for allocating fixed costs of the rail network between operators. Says Brockley: “There does not [currently]...

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