Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

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.

Savings

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

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Please note comments made online may also be published in the print edition of New Civil Engineer. Links may be included in your comments but HTML is not permitted.