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Rail companies say they could save £1.3bn per year by 2019

The cost of running the nation’s railway could be reduced by £1.3bn per annum by 2019, Network Rail, train operators and industry suppliers have said in the Initial Industry Plan (IIP) published today.

The IIP said that savings would be made through cost efficiencies combined with growth. This would include initiatives already in hand, greater cross-industry collaboration and changes in the way the government procures passenger rail services.

Network Rail said it has identified efficiencies of 16% and said it has already cut 27% from the cost of running the network during the 2004 to 2009 control period CP3, with a further 23% forecast for the 2009 to 2014 period CP4.


Network Rail said savings could be made through measures including:

  • bringing maintenance work in house
  • re-structuring
  • introducing new technology for improved asset inspection
  • re-negotiating contracts
  • investing in new plant and machinery
  • improved supply chain management
  • greater innovation at bid stage
  • enhanced staff productivity and staff efficiencies
  • revenue generation through investment in car parking facilities at stations and additional ticket gates

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