Railway privatization: Does it bring new opportunities?

Abstract

A recent White Paper outlined proposals for privatizing British Rail's assets and activities. This article reviews the aims of the proposed measures, and examines what effect they could have on passenger services, freight services and investment. It concludes that the Government's objectives, such as service quality and maintenance of the network, are unlikely to be met. Rail service provision and traffic could decline, despite the main aim of increasing rail's share of transport. This contrasts with the strategy that most other countries in Europe are taking, with the aim of exploiting more effectively rail's contribution to the economy and the environment. Reg Harman concludes by outlining the package of policy measures which could underpin a similar approach for Britain's railway system.