NETWORK RAIL has published its Strategic Business Plan for the five years from 2014, setting out proposals costing some £37.5 billion to upgrade many parts of the network as well as pushing ahead with major projects including main line electrification, Crossrail and Thameslink. But the ORR will have to be convinced before the money can be spent.
Network Rail chief executive David Higgins is warning that past upgrades were often done on the cheap, and that investment in high quality infrastructure and equipment is now essential to cope with rising passenger and freight traffic.
It is estimated that the number of passengers – already around 1.5 billion journeys a year – will increase by another 30 per cent by 2022.
David Higgins said: "One million more trains run every year than ten years ago, more passengers arrive on time than ever before, our safety record is one of the best in Europe and, despite the daily challenges we face, customer satisfaction is at record levels. Successive governments have made this possible by looking beyond the short term and recognising the critical importance of the railway to Britain's future.
"As our railway gets busier the challenges get bigger and more complex. We have entered an era of trade-offs. Increasingly we have to balance the need to build more infrastructure, run trains on time and cut costs, and in many areas choices will need to be made.”
But the company's debt will also rise, and the spending plans must be approved by the Office of Rail Regulation first.
ORR chief executive Richard Price said: "Network Rail’s Strategic Business Plan demonstrates the company’s ambition to deliver an even better railway for Britain. ORR will now scrutinise the plan on behalf of rail users and taxpayers to ensure every penny is made to count and that all those involved in delivering the plan work together to achieve the highest levels of efficiency and best possible value for money. Our analysis, informed by public views, will focus on ensuring Network Rail delivers the right plans, in the right ways, at the right cost."
Passenger Focus chief executive Anthony Smith said: "The plans assume fares will continue to increase above the rate of inflation, which will be a concern to passengers who have already faced 10 years of ticket prices rising faster than the cost of living.
"Getting costs under control is also a key industry priority to help keep the lid on future rises."