Privatisation of the Railways

Privatisation of the Railways- Railways Act 1993.

 

BRITISH RAILWAYS not only provided permanency as to employment but also a means by which others could reach their employment too in reigning over one WHOLE integrated System – A system adopting a single fare price structure along with AUTHORITY to effect essential “change” in “Servicing the needs of the General Public” as oppose to the current situation whereby Ministers must first approve the running of an additional train.

 

Questions:-

(1) What is todays SUBSTITUTIONAL Railway all about  ?

(2) What is transportational “National Security” all about given the complexity that currently exists?.

(3) If British Rail were viewed of as being a Hyper Market then todays Railway is representative of regional “digital shopping Isles” where travellers must wade through volumes of “price deals/packages” but to whom is this advantageous?.

 

UK Rail research 01 01 2009

 

 

THE PLAYERS：-

[ TOCs ] Train Operating Companies run rail passenger services, leasing and managing stations from Network Rail [ NR ] . TOCs are the consumer face of the rail industry, and generally apply for franchises to run specific routes from the Department for Transport [?]. They normally lease trains from rolling stock companies.

[ ATOC ] Association of Train Operating Companies. It represents the TOC’s, an industry body that helps to communicate their opinions to stakeholders, government and the media - the official voice of the passenger rail industry. The ATOC is an incorporated association owned by its members. It was set up by the train operating companies, formed during privatisation of the railways under the Railways Act 1993. It supplies a range of services to the TOC’s that enable them to comply with their conditions under franchise agreements and operating licences. Of these are National Rail Enquiry Service (NRES) and Railcard marketing. ATOC's principal activities include assisting members to co-operate in developing and managing projects that benefit passengers and to promote the advantages of the rail network.

[ SRA ] Strategic Rail Authority. It “Grants” REGIONAL FRANCHISES to TOC’s. [?]

[ ORR ] Office of Rail Regulation. An independent safety and economic regulator for Britain's railways.

[ NR ] Network Rail. (Formerly Railtrack in 2002). A NOT-FOR-PROFIT COMPANY HAVING NO SHREHOLDERS. It operates and controls Track, signalling, Stations, tunnels and Level Crossings. [ EXCEPTION (?) - South Eastern Trains ( formerly Connex ) which is a wholly-owned subsidiary of the Strategic Rail Authority which it hopes to award a private operator the franchise to in 2005 ]. [ EXCEPTION (?) - Translink is the Government-owned train company in Northern Ireland, where services were never privatised.]. A number of metropolitan railways - such as in Merseyside and Tyneside - are let by regional transport authorities.

 

In summary:-

TOC’s conform to ATOC policy [ NRES and Railcard  Marketing etc ], apply for a franchise to the DfT [?]/SRA[?] then generally hire trains  from rolling stock Companies which run on the NR System [ controller of Track, Signals, Stations, tunnels and Level crossings ]. TOC’s have a Business expiry licence period but also constant change occurs because of premature withdrawal of a Licence, Bankruptcies and mergers.

 

It may appear that there are many TOC’s however they are parts of much larger companies – The biggest being National Express Group, First Group, Virgin Trains and Arriva.  

 

Train operators include:

Current passenger operators

Arriva Trains Wales / Trenau Arriva Cymru

c2c (formerly known as LTS Rail)

Central Trains (to be dissolved and split between Silverlink, Chiltern, Virgin CrossCountry, Midland Mainline and the Serco-NedRailways-operated franchise in 2006)

Chiltern Railways

Eurostar

First Great Western (to be replaced by a new franchise, also covering the First Great Western Link and Wessex areas, in 2006)

First Great Western Link (to be replaced by a new franchise, also covering the First Great Western and Wessex areas, in 2006)

First ScotRail

Gatwick Express

Great North Eastern Railway (GNER)

Heathrow Express

Hull Trains

Island Line

Merseyrail Electrics

Midland Mainline

Northern Rail

one

Silverlink

Southern

South Eastern Trains

South West Trains

Thameslink

Translink

TransPennine Express

Virgin Trains CrossCountry

Virgin Trains West Coast

West Anglia Great Northern Railway (WAGN)

Wessex Trains (to be replaced by a new franchise, also covering the First Great Western and First Great Western Link areas, in 2006)

 

Current passenger operators by parent company

Arriva

Arriva Trains Wales / Trenau Arriva Cymru

BAA

Heathrow Express

First Group

First Great Western

First Great Western Link

First North Western

First ScotRail

First Group and Keolis

TransPennine Express

GoVia - Go-Ahead Group & VIA-GTI (French public transport operator).

Southern

Thameslink

Independent

Chiltern Railways

Eurostar

Hull Trains

National Express Group

c2c (formerly known as LTS Rail)

Central Trains

Gatwick Express

Midland Mainline

one

Silverlink

Wessex Trains

West Anglia Great Northern Railway (WAGN)

NedRailways

Merseyrail Electrics

Northern Rail

Sea Containers

Great North Eastern Railway (GNER)

Strategic Rail Authority

South Eastern Trains

Stagecoach Holdings

Island Line

South West Trains

UK Government

Translink

Virgin Group

Virgin Trains CrossCountry

Virgin Trains West Coast

 

Defunct operating companies

A number of operating companies have ceased to exist for a number of reasons, including premature withdrawal of the franchise; the natural term of the franchise has expired; bankruptcy; or there has been a merger.

Anglia Railways (until 1 April 2004) - Replaced by one

Arriva Trains Merseyside (until June 2003) - Replaced by Merseyrail Electrics

Arriva Trains Northern (until 12 December 2004) - Replaced by Northern Rail

Connex South Central - Replaced by South Central trains

Connex South Eastern (until 9 November 2003) - Replaced by South Eastern Trains

First Great Eastern (until 1 April 2004) - Replaced by one

First North Western (until 12 December 2004) - Replaced by Northern Rail

MTL (until 1998) - Replaced by Arriva Trains Merseyside

ScotRail (until October 17, 2004) - Replaced by First ScotRail

Thames Trains (until 1 April 2004) - Replaced by First Great Western Link

Wales and Borders (14 October 2001 - 7 December 2003) - Replaced by Arriva Trains Wales

Wales and West (until 14 October 2001) - Split into Wales and Borders and Wessex

Valley Lines (until 14 October 2001) - Merged with Wales and Borders

 

 

List of some train companies by address

Note: (1) NO NAMES as to Customer Relations Managers (2) The Public interface to TOC’s via FREEPOST and BOX Numbers.

 

Arriva Trains Wales. Customer Communications Manager, Arriva Trains Wales, St. Mary's House, 47 Penarth Road, Cardiff, CF10 5DJ

c2c Rail Limited. Customer Relations Manager, FREEPOST ADM3968, SOUTHEND, SS1 1ZS

The Chiltern Railway Company Ltd. Customer Relations Manager, The Chiltern Railway Company Ltd, Banbury ICC, Merton Street, Banbury, Oxfordshire. OX16 4RN

CrossCountry. Customer Relations Manager, CrossCountry, Cannon House, 18 Priory Queensway, Birmingham, B4 6BS .

East Midlands Trains. Customer Relations, East Midlands Trains, FREEPOST DY940, Derby, DE1 9BR

First Capital Connect. Customer Relations Department, First Capital Connect, Freepost RRBR-REEJ-KTKY, PO Box 443, PLYMOUTH, PL4 6WP

First Great Western. Customer Relations Manager, First Great Western, Freepost SWB40576, Plymouth, PL4 6ZZ.

First ScotRail Limited. Customer Relations Manager, First ScotRail Limited, PO BOX 7030, Fort William, PH33 6WX.

First TransPennine Express. Customer Relations, First TransPennine Express, ADMAIL 3878, FREEPOST, MANCHESTER, M1 9YB.

Grand Central Railway Company Ltd. Customer Relations Manager, Grand Central Railway Company Ltd, River House, 17 Museum Street, York, YO1 7DJ

Gatwick Express Limited. Customer Relations Manager, Gatwick Express Limited, Go-Ahead House, 26-28 Addiscombe Road, Croydon, CR9 5GA

Heathrow Connect. Customer Relations Manager, Freepost RLRZ-TZXE-BYKY, Heathrow Connect, 50 Eastbourne Terrace, London, W2 6LX

Heathrow Express. Customer Relations Manager, Heathrow Express, Freepost RLXY-ETJG-XKZS, London, W2 6LG

Hull Trains. Customer Relations Manager, Hull Trains, Premier House, Ferensway, Hull HU1 3UF

Island Line Trains. Customer Service Centre, Island Line Trains, Overline House, Blechynden Terrace, Southampton, SO15 1GW.

London Midland Limited. Customer Relations Manager, London Midland Limited, PO Box 4323, Birmingham, B2 4JB 

LOROL. Customer Services, London, c/o Transport for London.

Merseyrail Electrics 2002 Ltd. Customer Relations Supervisor, Merseyrail Electrics 2002 Ltd, Rail House, Lord Nelson Street, Liverpool, Merseyside, L1 1JF

National Express East Anglia. Customer Relations Manager, National Express East Anglia, Grosvenor House, 112-114 Prince of Wales Road, Norwich, NR1 1NS

National Express East Coast. Customer Relations Manager, National Express East Coast, Freepost RRZG-ZZZX-LKXK, Newcastle upon Tyne, NE1 5DN

Northern Rail Limited. Customer Relations Manager, Northern Rail Limited, Prospect House, 32 Sovereign Street, Leeds, LS1 4BJ.

Southeastern Railway. Southeastern Customer Services, Southeastern Railway, PO Box 63428, LONDON, SE1P 5FD

South West Trains. Customer Service Centre, South West Trains, Overline House, Blechynden Terrace, Southampton, SO15 1GW

Southern. Southern Customer Services, PO Box 277, Tonbridge, TN9 2ZP

Stansted Express. Customer Relations Manager, Stansted Express, Grosvenor House,

112-114 Prince of Wales Road, Norwich, NR1 1NS

Virgin Trains. Manager, Customer Relations Development, Virgin Trains, FREEPOST BM 6613, PO BOX 713

Birmingham, B5 4HH.

Wrexham & Shropshire. Wrexham & Shropshire Customer Services, The Pump House, Coton Hill, Shrewsbury

SY1 2DP

 

Past News:

Note the following:

Privatisation of the Railways - Railways Act 1993 [ ATOC ] Association of Train Operating Companies - set up by the train operating companies, formed during privatisation of the railways. [ ORR ] Office of Rail Regulation. An independent safety and economic regulator for Britain's railways. [ See News below 24 07 2003 on SAFETY ] [ NR ] Network Rail. A NOT-FOR-PROFIT Company having NO Shareholders. FINES – Paid for indirectly by the Passenger / Tax Payer.

 

03 07 2000 Storm over £34,000 bonus for Southall Rail chief. Managing director of Great Western Trains at the time of the Southall train disaster in 1997 in which seven people were killed and 150 injured received a 14 per cent pay rise and the company fined £1.5m last year for "dereliction of duty" but charges of corporate man-slaughter were dropped. Great Western Trains breached safety laws - both the fail-safe automatic train protection (ATP) and the more basic automatic warning system were not in use. In 1998 the Managing director made a reported £2m from the sale to First Group of the 75 per cent of Great Western that it did not already own!. Great Western Trains renamed to First Great Western currently involved in the inquiry into the Paddington disaster in October in which one of the company's express trains was hit virtually head-on by a Thames Trains commuter service, killing 31 people. The chief executive of Railtrack, recently refused to take an additional payment of £100,000 in the wake of the Paddington accident. A spokesman for Aslef, the train drivers' union, said: "This is an example of how the reward system in the privatised rail industry has gone mad."

 

24 07 2003 Network Rail [ NR ] members fire a warning shot over executive pay. Network Rail received a shot across the bows yesterday after NR members attending the not-for-profit company's first annual meeting called for the scrapping of its controversial executive bonus scheme. Network Rail's chairman Ian McAllister mounted a strong defence of the scheme, which entitles five top executives to receive annual bonuses of up to 60 per cent, even if one in five trains continues to run late. The incentive scheme could boost the £450,000 salary of the company's chief executive John Armitt to as much as £720,000 this year. Philip Davis, of the West Midlands Regional Assembly, one of 83 independent public members of Network Rail, called on the board to scrap bonuses until train performance was back to the level before the Hatfield disaster in October 2000, when Railtrack was still in charge of the network. "We need not so much to draw a line under Railtrack but to dig a trench,'' he said. "We need to send a message that this is not bad old Railtrack.'' Network Rail has admitted that train performance will not be back to pre-Hatfield levels, with 90 per cent of trains running on time, until 2008. Mr McAllister, who took home £289,000 last year from Network Rail, said after the meeting: "We need to put in place a structure which attracts key people and then retains them once they are in.'' The maximum 60 per cent pay-out only affects the five executive directors on the board. Apart from Mr Armitt, these are the deputy chief executive Iain Coucher, the safety director Chris Leah (who is facing charges under the Health and Safety at Work Act over the Hatfield crash), the project and engineering director Peter Henderson and finance director Ronald Henderson. Combined, they could earn £1.05m in bonuses this year on top of the £1.75m they will be paid, but only if the most stretching of all the performance targets is met. Other members took Network Rail to task over its huge debts, which are forecast to balloon from £9.7bn to £14bn next year [ 2004 ].

 

 

 

 

 

12 05 2005 Six figure bonus for rail bosses. Bosses at Network Rail [ NR ] are to be rewarded with a bonus of more than half their salary after the infrastructure company met 2004/5 targets. Chief executive John Armitt will receive £270,000 - 55.6% of his salary, with other directors being awarded the same percentage. Network Rail chairman Ian McAllister said employees "from signal box to track depot to boardroom" would receive bonuses. "It is only right that employees should share in that success." General secretary of the Transport Salaried Staffs Association Gerry Doherty said: "It's staggering that some of the executive directors will receive bonus payments in excess of £260,000.

 

03 01 2008 £20m fine for rail line bosses over repair chaos. The AFTER CHRISTMAS Festivities turned to gloom as 250,000 passengers were hit by delays trying to go back to work. Bungling rail chiefs will be fined £20million after over-running engineering work caused travel misery for hundreds of thousands of commuters across Britain yesterday. Network Rail did not hire enough specialists to complete a station revamp. Work on new platforms and signals at Rugby station, Warks, left the West Coast Mainline closed between Northampton and Birmingham International. To add to their woes, Birmingham International was closed for a time after a small fire broke out. Services in and out of Liverpool Street station in London were also cancelled when works overran and extended a 10-day shutdown. West Coast passengers slammed Network Rail as train operators braced themselves for a deluge of compensation claims. It came on the day passengers faced huge fare increases of up to 11 per cent on some of the most popular routes. And the misery could go on with hapless bosses unable to say exactly when services will be back to normal. Football fans travelling to FA Cup matches at the weekend could also be caught up in the chaos.If that happens, Network Rail, which expected work to finish by New Year's Eve, faces an even heavier fine from rail regulators, heaping further pressure on chief executive Iain Coucher who is facing calls to resign.Last year Network Rail was fined £2.4million when signalling work at Portsmouth overran in 2006. Chris Bolt, chairman of the Office of Rail Regulation (ORR), said: "Its extremely disappointing to have a repeat of that experience on key parts of the network after Portsmouth last Christmas. It added: "There has been a shortage of specialised engineering staff. We have pulled in everybody we possibly can in order to get the West Coast work completed. We deeply apologise for the inconvenience caused." Virgin Trains chief executive Tony Collins said the delays had been a "fiasco". He added: "Our customers expect and deserve better. "We're pleased the ORR is investigating this urgently and we must ensure we never have a repeat of the last few days."

 

23 01 2008 No fines for New Year rail fiasco firm. The rail contractor whose failure to supply promised engineers caused travel chaos for thousands at New Year has escaped a fine, it emerged on Wednesday. Network Rail chief executive Ian Coucher said he had 'no idea' why up to half of the Jarvis specialist team failed to turn up for work. There was speculation at the time that many workers had merely bunked off. But the company has no penalty clause in its contract, the Commons transport committee heard.

 

28 02 2008 Network Rail bonuses to be slashed. Network Rail boss Iain Coucher admitted his annual bonus and payouts for 33,000 staff will be slashed following a damning investigation into the new year rail fiasco. The Office of Rail Regulation levied a record £14m fine on the owner of Britain's rail infrastructure and said it would impact annual bonuses for the company's top brass. Chris Bolt, ORR chairman, said one of the criteria for determining Network Rail's bonuses was its performance against regulatory targets. He said the overrunning of engineering works over the new year on the west coast line constituted a breach of Network Rail's licence. "We don't set Iain Coucher's bonus nor should we…..”. Last year Network Rail paid four executive directors, including the outgoing chief executive, John Armitt, a total of £268,000 in bonuses –the payout came despite strong criticism of the company's role in the fatal west coast crash in Cumbria last year, in which one person died and 22 were injured. Today's ORR report is more damning and points out systemic flaws in Network Rail's project management, customer management and supply chain arrangements all over the UK.

 

06 06 2008 Network Rail bosses to get SIX-FIGURE BONUSES. This is despite presiding over travel chaos caused by engineering work overruns at the new year. The Office of Rail Regulation (ORR) tried to intervene in the bonus process by pointing out certain Network Rail (NR) failures to the company's remuneration committee. But NR confirmed its three top directors were all getting performance-related annual bonuses of more than £200,000, with chief executive Iain Coucher receiving £305,581. In addition, under a rolling three-year long-term incentive plan, the top three are also getting bonuses of more than £153,000, with Mr Coucher getting £205,000. Former NR chief executive John Armitt, now chairman of the Olympic Delivery Authority, will get a £178,000 bonus for being in office during part of the last three years. All NR staff will get an annual bonus with £55 million being paid out in total. ORR fined NR a record £14 million this year for the new year engineering work overruns, the worst of which was at Rugby in the West Midlands on the West Coast Main Line.

 

07 06 2008 Outrage at rail bonuses. COMMUTERS, politicians and unions reacted angrily last night to news that Network Rail bosses are to receive six-figure bonuses. Gerry Doherty, general secretary of transport union TSSA, said: “Passengers will simply not understand why he is being rewarded for failure on this scale after all they have suffered.”. News of the bonuses came as NR – a not-for-dividend company that has no shareholders – announced an after-tax profit of £1.2bn for 2007-08. Turnover last year was £5.96bn – an increase of £165m on the previous year, while operating profit increased from £2.3bn to £2.4bn. Labour MP Louise Ellman, chairman of the powerful House of Commons Transport Select Committee, last night denounced the bonuses as “outrageous and showing contempt for the public”.

 

20 07 2008 MPs criticise rail boss bonuses - despite "a catalogue of failings" on the network. Three Network Rail directors are to get bonuses in excess of £200,000 each. The Department of Transport said "Decisions on bonuses are a matter for Network Rail's independent Remuneration Committee," "Bonuses are determined against key performance indicator targets set by the independent Office of Rail Regulation.". Network Rail's chief executive Iain Coucher will receive a £305,000 bonus this year – he said “"We are disappointed by the comments in the Transport Select Committee report which do not reflect the pivotal role Network Rail has played in turning around the railway from the mess inherited from Railtrack”.

 

13 12 2008 Tories pledge to remove bonuses for poor performance by Network Rail executives. In January this year, Network Rail was responsible for engineering overruns which left thousands of passengers and vital freight deliveries stranded during the holiday. The rail infrastructure company conceded that the work had been delayed because workmen had failed to turn up. Despite the shambles, Network Rail senior executives took home £835,000 in bonuses. The only sanction faced by the company was a fine of £14 million which was paid by the taxpayer, resulting in less money spent on the rails. Outlining the Tory proposals, Theresa Villiers, the shadow transport secretary, said: "When Gordon Brown set up Network Rail, he created a company that is accountable to no one. "When things have gone wrong, they have got off scot free. And even when they have been fined, it is the taxpayer who has been left to pick up the tab.The Tories will reduce the size of the current board to 20 people, with a majority from passenger groups, and give it the power to hold Network Rail's management to account, including setting the overall strategy for the company and the power to approve and remove senior executives. The board will be independently appointed. Currently the Network Rail board have the power to appoint the members who are meant to hold them to account. A strengthened Office of Rail Regulation [ ORR ] will be given new powers to block the bonuses of senior executives if there is evidence of persistent failure. Network Rail has controlled the nation's railway infrastructure, including tracks, signals, stations, tunnels and level crossings, since Railtrack was placed in administration by the Government in 2001 amid growing concerns over its safety record. The firm announced annual pre-tax profits of £1.6bn for 2007-08. West Coast mainline - the £8.8 billion upgrade was only finished last week.

 

27 12 2008 Britain's rail network remains closed after broken resolutions. Britain’s rail network remained largely closed yesterday after broken resolutions from transport chiefs to review the 58-hour shutdown over Christmas. Passenger groups, green campaigners and opposition MPs called for urgent action to end the Christmas hiatus whereby the last trains on major lines depart between 8pm and 10pm on Christmas Eve and return only on 6am on December 27. Britain remains the only large European country to shut the railways over Christmas. A full festive service was suspended in the early 1960s. Blame for the situation has been passed between rail industry leaders, government ministers and train operating companies who all cite a lack of coordination in finding a resolution. Some operators, such as Virgin Trains, are known to be keen to run services on Boxing Day but say that they would require a public subsidy. They also say that they are hampered by Network Rail’s maintenance practices. Aslef, the train drivers’ union, would consider Christmas working in exchange for double pay and an extra day off. A year ago Iain Coucher, the chief executive of Network Rail, promised that action would be taken to “run railways every single day of the week”.