But let’s go back to the basis of the premise of rail privatisation. The concept was TOCs were going to be fairly temporary and the industry was going to move to open access and compete for passengers. It was all going to be a market economists dream, prices would fall, and rail travel would be so cheap, it would be silly not to use it. After all, in China and India it is the transport of choice, with car ownership at less than 20 per 1000 people, compared to around 300 per 1000 in Western Europe and around 460 in the US. Really because it is the cheap option!
What we have witnessed, is a complete failure to introduce any sort of competition, a new barricade of H&S law and red tape, and swathes of over management inside and outside the industry, which makes open access and new lines for Passenger operators a relative dream.
In the era of high fuel prices and environmental awareness, the industry should be in a new golden age, yet is more subsidised than ever. Conversely in the US, railroads like Union Pacific have seen a 3 fold rise in their share price since 2003 and are expanding at a pace faster than at any other time in 100 years – all with private money.
Not only privatisation failed to lower unit costs, if GC fails, it may well prove once and for all the model was flawed, and should have been vertical integration or left as it was. Railways complete between lines or with other forms of transport, not with rival train operators because of the nature of the system. It is idiocy to presume otherwise.
What we have witnessed, is a complete failure to introduce any sort of competition, a new barricade of H&S law and red tape, and swathes of over management inside and outside the industry, which makes open access and new lines for Passenger operators a relative dream.
In the era of high fuel prices and environmental awareness, the industry should be in a new golden age, yet is more subsidised than ever. Conversely in the US, railroads like Union Pacific have seen a 3 fold rise in their share price since 2003 and are expanding at a pace faster than at any other time in 100 years – all with private money.
Not only privatisation failed to lower unit costs, if GC fails, it may well prove once and for all the model was flawed, and should have been vertical integration or left as it was. Railways complete between lines or with other forms of transport, not with rival train operators because of the nature of the system. It is idiocy to presume otherwise.
)