The privatisation of British Rail, achieved during the 1990s, was notable in that it was one of the first examples in Europe of loosening the ties between a nationalised integrated railway and the government. A themed approach is used to examine the effects of privatisation, from the mid-1990s to the present day. In all parts of this analysis, it will focus on the relationship between government (or public bodies), and the private sector. There is an assessment of the changing nature of cost allocation in the industry, especially concentrating on the way in which operating and enhancement costs have increased. The development of the West Coast Route Modernisation programme is used as an example of increases in the cost of enhancements, and for operating costs, how the first franchises (let from 1996) differ from those awarded more recently. The second area for examination will be the changing use of network and train capacity during the first decade of the privatised railway. It will assess how the rail industry has responded to changes in demand over the period, principally in the passenger sector, although comparisons with freight operations will be drawn as well. The relationship between supply and demand - and changed trends in the period driven by commercial pressures - will form a part of this analysis. Thirdly, the effect of privatisation on performance is considered - examining whether trends in performance are directly or indirectly related to the structure of the industry. The process involved in implementing the SRA's Brighton Main Line Route Utilisation Strategy is used as a case study. The challenges that the SRA and its successor bodies face in reconciling stakeholders' aspirations and the stringent targets set by central government are outlined. An assessment of the Strategic Rail Authority's newly-established franchise specification process, which sets tight parameters against which bidders have to submit their proposals is provided. It is this process which forms a key part of the term 'publicly specified, privately delivered', frequently applied to the current status of Britain's railways. Some conclusions are drawn with regard in particular to whether the process works in the best interests of the passenger and the tax payer (which in many cases is the same thing), and the efficiencies that the private sector is able to bring to the operation of the final train service and specification. For the covering abstract please see ITRD E135207.
Abstract