Really interesting breakdown. What stands out to me is that the UK has never actually embraced real privatisation in rail, only franchising under government control. Operators are essentially tenants of the Treasury, not genuine owners with long-term responsibility. That’s why “innovation” is limited and why open-access operators, when allowed, often deliver more value: they face real risk and reward.
The obsession with “revenue abstraction” shows the same problem. The state still treats the system as its own cash register, rather than letting property rights and market discipline drive efficiency. Until operators can truly own assets and be accountable for them, we’ll keep getting a halfway model that looks private but behaves public.
One way for open-access operators to convince the DfT is to contribute funding to the infrastructure upgrades needed to increase capacity, based on their profits from the operation.
Really interesting breakdown. What stands out to me is that the UK has never actually embraced real privatisation in rail, only franchising under government control. Operators are essentially tenants of the Treasury, not genuine owners with long-term responsibility. That’s why “innovation” is limited and why open-access operators, when allowed, often deliver more value: they face real risk and reward.
The obsession with “revenue abstraction” shows the same problem. The state still treats the system as its own cash register, rather than letting property rights and market discipline drive efficiency. Until operators can truly own assets and be accountable for them, we’ll keep getting a halfway model that looks private but behaves public.
Navid - thanks for the contribution.
Privatisation has had some tangible benefits as outlines in the piece.
You have hit the nail on the head and true open market simply can't exist in the UK as it stands.
One way for open-access operators to convince the DfT is to contribute funding to the infrastructure upgrades needed to increase capacity, based on their profits from the operation.
Ian - thanks for the comment.
Interesting idea but for me infrastructure should be, like roads, separated from operations.
Operators pay track access for maintenance but infrastructure investment should be by The State for the good of the nation.