Network Rail has achieved efficiencies of £775M over the past three years and is currently on target to deliver required savings by 2014, says a report published by the Office of Rail Regulation (ORR) today.
The ORR’s annual assessment of Network Rail’s efficiency and financial performance examines the amount of money that Network Rail has spent and what it has delivered in return for the money it has received from train operators and the governments in London and Edinburgh. In particular, the report assesses Network Rail’s progress in meeting the regulator’s stretching efficiency target for its current five year funding period of cutting £1bn annually from the cost of operating, maintaining and improving Britain’s rail infrastructure.
The ORR found that Network Rail has implemented a number of initiatives to reduce its costs to this point in its funding period. These include rationalising signalling and control centres and reorganising its rail maintenance function, resulting in reduced staff costs and reduced use of sub-contractors.
However, it also expressed concerns about the sustainability of Network Rail’s management of parts of the railway infrastructure, such as bridges, tunnels and major structures> It noted that Network Rail itself has not reported efficiencies in this area.