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Nationalisation and privatisation

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Railsigns

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To play devil's advocate for a moment, why are you assuming that more money in means more wastage?

I made no reference to wastage. I'm challenging the belief that private investment is funding major enhancements to Britain's railways when in fact it's coming from greatly increased taxpayer subsidy and massive borrowing.
 
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Whistler40145

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First of all, would it be far too complicated to re-nationalise the UK Railway system?

Would we go back to e.g. InterCity West Coast or just a system wide branding?

Is it possible to use the British Rail name or a new name e.g UK Railways?

Blue and Grey liveried stock or something new?

Sent from my GT-I9305 using Tapatalk 2
 

yorksrob

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however as a commuter on the Uckfield Line I can't help but feel that without privitisation the line would have been long shut by now.

The Uckfield line is a very pertenant case. Certainly, it was under threat for a long time during the nationalised era, however I can't see Network SouthEast as having had plans to close it. It was sectorisation that saved the Uckfield line (and the Marshlink) not privatisation.
 

61653 HTAFC

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The Uckfield line is a very pertenant case. Certainly, it was under threat for a long time during the nationalised era, however I can't see Network SouthEast as having had plans to close it. It was sectorisation that saved the Uckfield line (and the Marshlink) not privatisation.

One could even argue that perhaps if BR still existed in some form today, the extra investment that has found it's way to the railway in this ensuing period might have funded electrification of these particular diesel islands!
 

hairyhandedfool

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First of all, would it be far too complicated to re-nationalise the UK Railway system?

Not really, just don't re-let the franchises and gradually buy new stock to replace the 'leased' stock, maybe buy some of the newer stock from the ROSCOs or leave them for OAOs (we don't necessarily need to lose them).

Would we go back to e.g. InterCity West Coast or just a system wide branding?

The sectors we had aren't a bad idea, anything is better than the divided mess we have right now, but the fewer upper management there is, the more viable a nationalised railway would be.

Is it possible to use the British Rail name or a new name e.g UK Railways?

Don't see why not, nothing like telling it how it is. Equally, why not keep National Rail?

Blue and Grey liveried stock or something new?

We moved beyond blue and grey in the 80s, I'm sure someone could come up with something good (just make sure it isn't a consultancy firm).
 

yorksrob

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One could even argue that perhaps if BR still existed in some form today, the extra investment that has found it's way to the railway in this ensuing period might have funded electrification of these particular diesel islands!

As I understand it, NSE had the aspiration to fill those gaps, and perhaps more importantly they had form in delivering those sort of projects, so it wouldn't have surprised me in the least if they'd have managed it by now.
 

Mutant Lemming

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First of all, would it be far too complicated to re-nationalise the UK Railway system?

Would we go back to e.g. InterCity West Coast or just a system wide branding?

Is it possible to use the British Rail name or a new name e.g UK Railways?

Blue and Grey liveried stock or something new?

Sent from my GT-I9305 using Tapatalk 2

There may be many arguments not to re-nationalise but surely complication of branding is not one of them. A train comes along to your station - you know it is part of the national railways sounds quite simple really.
 

Wyvern

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There is a third way - to copy what Transport for London are doing ??
 
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In my opinion, the current system is full of pecularities and was not drawn out very well from the very start, which itself will always cause a problems. The biggest being the split between operations and infrastructure, on paper it sounds like a good idea, but on the operational railway it seems to be a bit of a PITA.

In one instance recently, where NR asked a certain TOC to get crew to check a site for the presence of a body, TOC flat refused without asking crew meaning that an additional delay was caused just so a member of NR staff was made to come down to visit the site instead.

An ex-BR man on a station put it to me, when there was a problem, he and his team had the ability to go down on the track and get their hands dirty when it was needed to get things moving. Why is that impossible these days? because most TOC's will not pay for their frontline staff to get track compentancy licenses. Understandable though, why? because thats how the industry works now. Seems silly that something that was the norm only 18 years ago is now not possible, a retrograde vagary.

In this country, a hot bed of legal ramifications, rear end covering and finger pointing has developed since privatisation, its an expensive and futile way of trying to run a railway.
 

Dave1987

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In my opinion, the current system is full of pecularities and was not drawn out very well from the very start, which itself will always cause a problems. The biggest being the split between operations and infrastructure, on paper it sounds like a good idea, but on the operational railway it seems to be a bit of a PITA.

In one instance recently, where NR asked a certain TOC to get crew to check a site for the presence of a body, TOC flat refused without asking crew meaning that an additional delay was caused just so a member of NR staff was made to come down to visit the site instead.

An ex-BR man on a station put it to me, when there was a problem, he and his team had the ability to go down on the track and get their hands dirty when it was needed to get things moving. Why is that impossible these days? because most TOC's will not pay for their frontline staff to get track compentancy licenses. Understandable though, why? because thats how the industry works now. Seems silly that something that was the norm only 18 years ago is now not possible, a retrograde vagary.

In this country, a hot bed of legal ramifications, rear end covering and finger pointing has developed since privatisation, its an expensive and futile way of trying to run a railway.

Yes but when you sit in the mess room and listen to some of the huge smashes that the ex-BR men had. I've heard many many anecdotes of wagons running away, stantions being taken out, "second men" being left to drive heavy freight trains on their own on their first day because the driver wanted to get home early. Dont assume that just because it happened in BR days it was better. Safety standards have improved immeasurably in recent years. Basically anyone who doesn't need to have access to the track as part of their job shouldn't be anywhere near it!
 

Railsigns

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Yes but when you sit in the mess room and listen to some of the huge smashes that the ex-BR men had. I've heard many many anecdotes of wagons running away, stantions being taken out, "second men" being left to drive heavy freight trains on their own on their first day because the driver wanted to get home early. Dont assume that just because it happened in BR days it was better. Safety standards have improved immeasurably in recent years. Basically anyone who doesn't need to have access to the track as part of their job shouldn't be anywhere near it!

Safety improvements have been ongoing ever since the railways began. Advances such as the elimination of unfitted goods trains, the roll-out of TPWS and stricter rules for working on track have all contributed to improved safety but none of this has resulted from privatisation. Indeed, the fragmentation that privatisation brought makes safety on the railways more difficult to manage, a fact acknowledged right at the start in Railtrack's Railway Safety Case. You're not seriously suggesting that if the industry was to be renationalised, all the incremental safety enhancements that have occurred in the last two decades would be abandoned?
 

Dave1987

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Safety improvements have been ongoing ever since the railways began. Advances such as the elimination of unfitted goods trains, the roll-out of TPWS and stricter rules for working on track have all contributed to improved safety but none of this has resulted from privatisation. Indeed, the fragmentation that privatisation brought makes safety on the railways more difficult to manage, a fact acknowledged right at the start in Railtrack's Railway Safety Case. You're not seriously suggesting that if the industry was to be renationalised, all the incremental safety enhancements that have occurred in the last two decades would be abandoned?

No but the previous post suggested that just because platform staff were allowed to access the track back in BR because I don't think PTS even existed meant the old BR system was better. I don't think privatisation has made safety and better or worse than it would have been anyway. My point on nationalisation is the system is too far gone to go back and like it or not passengers numbers and investment is up.
 

Railsigns

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My point on nationalisation is the system is too far gone to go back

Too far gone in what sense? What does that mean? After nearly fifty years of nationalisation, the Major government didn't consider the railways 'too far gone' to privatise them.

and like it or not passengers numbers and investment is up.

I like both but, welcome as they are, neither has come about as a result of privatisation.
 

LNW-GW Joint

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This new report published today tells it like it is and is well worth a read:

The Great Train Robbery: Rail Privatisation and After

These are the proposed "fixes" in the report:

8. Fix one: Abolish the TOCs as their franchises expire because they take artificial profits while
making a negligible contribution, and this is the only sure way of removing corporate
lobbying and influence over the rail reform agenda.
9. Fix two: Integrate track and train operations around a new publicly owned “National Rail”
(built around Network Rail after cleaning up its balance sheet) on the understanding that
operations should be cash constrained.
10. Fix three: Separate capital expenditure and major projects as the responsibility of another
publicly owned company “Rail Engineering” on the understanding that capital expenditure
should be generously funded.
11. Fix four: Eliminate the ROSCOs by purchasing their stock as leases expire and make Rail
Engineering responsible for new rolling stock procurement and supply.
12. Fix five: Offer National Rail a counter cyclical mechanism for compensation for variations in
GDP growth.
13. Fix six: Raise crucial extra revenue for capital expenditure and low ticket prices with a rail
precept to business rates, taking a portion of the unearned increment from private
enterprises which benefit from their proximity to the railways.

It is an anti-privatisation polemic and does no credit to the academic organisations involved.
Just toss £40billion of public money into the rail pot and everything will be fine.
Oh and introduce a new property tax to subsidise rail.

It makes no attempt to offer any alternative public-private model for the railways, or to compare experience in other countries.
It's just a demolition job on privatisation policies and organisations since 1996.
I shouldn't think Eds Miliband and Balls will waste much time on it.
 

Railsigns

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These are the proposed "fixes" in the report:

SNIP

I'm still waiting for you to back up your claim (post #23) that "most other countries are busy privatising their railways, to a greater or lesser degree."

Until you do, don't expect a response from me on any further points you raise.
 

yorksrob

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These are the proposed "fixes" in the report:



It is an anti-privatisation polemic and does no credit to the academic organisations involved.
Just toss £40billion of public money into the rail pot and everything will be fine.
Oh and introduce a new property tax to subsidise rail.

It makes no attempt to offer any alternative public-private model for the railways, or to compare experience in other countries.
It's just a demolition job on privatisation policies and organisations since 1996.
I shouldn't think Eds Miliband and Balls will waste much time on it.

Whatever one thinks of privatisation per se, I would say fixes 2 and 4 look eminently sensible to me. Since Government ends up procuring the vast majority rolling stock anyway, it would be far more sensible to let train companies own the stock outright and eventually benefit from its depreciation rather than having to pay astronomical leasing costs for the entire life of the train.

As for the separation of track and train, no railway in the world either private or public developed in this way until certain credulous Governments (and power obsessed super-national organisations that shall remain nameless) foisted it on them.

I allowed myself a wry smile at the idea of tossing billions of public money into the rail pot as we all know that this is the only way that privatisation could be made to work.
 

jon0844

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Did anyone watch First Sight: A network under scrutiny (Feb 1991) on BBC Parliament yesterday?

I remember things were pretty bad, but it really did show what a mess things were. The blame was on insufficient investment and not anticipating the growing demand, as well as no accountability or even a way to get any money back if your train was late or cancelled.

I am unclear as to how or why anyone would think that bringing it back under Government control would do anything but make investment another major issue.

I didn't realise that NSE only got 10% subsidy, with Intercity getting 0%. Would that change? If not, the customers would still be expected to fund everything, so wouldn't be likely to see a sudden cut in fares.

And how funny that it started and ended with talk of bad weather (snow) bringing the network to a halt! Oh, and talked about Crossrail and Thameslink as imminent!!
 

Buttsy

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I am unclear as to how or why anyone would think that bringing it back under Government control would do anything but make investment another major issue.

Sorry if I've got this wrong, but aren't most of the improvements such as Crossrail, Ordsall Curve, Northern hubs, HS2, etc., being effectively funded by the Government...???
 

gordonthemoron

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Sorry if I've got this wrong, but aren't most of the improvements such as Crossrail, Ordsall Curve, Northern hubs, HS2, etc., being effectively funded by the Government...???

Ofcourse. Plus you have to take BR statistics with a pinch of salt, does the subsidy figure rely on £0 rail access charge, for instance.

When I worked in CSS which became IS&T (i.e. the BR computer department) we would tender for work against external companies and we would come up with some very dodgy bid figures which effectively screwed to the floor, exterrnal companies desperate for work in BR. That was basically the reason for Cap Gemini Sogeti eventually pulling out of ICL to IBM conversion
 

jon0844

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Sorry if I've got this wrong, but aren't most of the improvements such as Crossrail, Ordsall Curve, Northern hubs, HS2, etc., being effectively funded by the Government...???

Yes, with many having been heavily delayed. But they've happened without us having BR back.

I am not sure why it would change if we renationalised, or that it would be any better. In fact, I got the impression that NSE was in such a mess and everyone admitted how far behind it was, plus the massive sums of money needed to upgrade, it would have made getting private investment seem too good an opportunity to pass up.

With trains from the 1950s and signalling from the 1920s, all Governments should take some of the blame for possibly making privatisation a necessity, and why it's just as likely Tony Blair would have done so (or very similar) had the Tories not rushed it through.

I can't see any party wanting to renationalise, so those asking for it and thinking it would solve all of our problems, will never get their wish anyway.

From what I can see, to have a cheaper service the only real option is to increase taxpayer subsidies. Then you can cut fares and see rail as a public service... but not even renationalising the railway would do that.
 

yorksrob

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Did anyone watch First Sight: A network under scrutiny (Feb 1991) on BBC Parliament yesterday?

I remember things were pretty bad, but it really did show what a mess things were. The blame was on insufficient investment and not anticipating the growing demand, as well as no accountability or even a way to get any money back if your train was late or cancelled.

I am unclear as to how or why anyone would think that bringing it back under Government control would do anything but make investment another major issue.

I didn't realise that NSE only got 10% subsidy, with Intercity getting 0%. Would that change? If not, the customers would still be expected to fund everything, so wouldn't be likely to see a sudden cut in fares.

And how funny that it started and ended with talk of bad weather (snow) bringing the network to a halt! Oh, and talked about Crossrail and Thameslink as imminent!!

A somewhat far fetched, and dare I say it, melodramatic interpretation of history.

Anyone can take a route at the end of it's investment cycle and see the problems. They could have given more airtime to Kent Link, which had just been started, or the lines out of Liverpool Street which had got new trains a little earlier, but quite understandably such things don't really constitute news. What the programme showed to me was that once the Government finally coughed up some investment, NSE knew exactly what to do and how to deliver it.

Had privatisation not have happenned would the sky have fallen in and the railway ground to a halt ?

More realistic would have been either of the following two scenario's:

  • Gmnt continues its investment and NSE progressively moves on to its other route modernisations.
  • Gmnt takes takes longer to cough up and some things, such as slammer replacement take longer - which as it happens is just what happenned under privatisation.

No accountability - that was addressed by John Major's passengers charter under British Rail (I still have the original version as it happens) so privatisation would have made little difference to that.

As for things grinding to a halt during the snow, it just goes to show some things don't change whoever runs the trains.
--- old post above --- --- new post below ---
Yes, with many having been heavily delayed. But they've happened without us having BR back.

I am not sure why it would change if we renationalised, or that it would be any better. In fact, I got the impression that NSE was in such a mess and everyone admitted how far behind it was, plus the massive sums of money needed to upgrade, it would have made getting private investment seem too good an opportunity to pass up.

With trains from the 1950s and signalling from the 1920s, all Governments should take some of the blame for possibly making privatisation a necessity, and why it's just as likely Tony Blair would have done so (or very similar) had the Tories not rushed it through.

I don't really see your point. You suggest that a sell off was a necessity, yet not only have the current round of improvements been massively delayed, but they are largely Government funded anyway.

As for trains from the fifties (which would have been getting on for around forty years old at the time of withrawal), here's a news flash. We had forty year old trains in the South and in Leeds in the early noughties. We will have forty year old HST's and PEP units in a few years time. We will also have forty year old sprinters in a few years after that. I'd start getting used to the idea if I were you.


From what I can see, to have a cheaper service the only real option is to increase taxpayer subsidies. Then you can cut fares and see rail as a public service... but not even renationalising the railway would do that.

That has always, and only ever will be a political decision beyond the remit of railway management, whoever that may be.
--- old post above --- --- new post below ---
Ofcourse. Plus you have to take BR statistics with a pinch of salt, does the subsidy figure rely on £0 rail access charge, for instance.

If you don't pay a track access charge, why would you take account of it in the first place. Wouldn't it make more sense to count rail renewal as a one off capital expenditure rather than a revenue cost anyway ?
 
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Railsigns

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I am unclear as to how or why anyone would think that bringing it back under Government control would do anything but make investment another major issue.

The government exercises far more control over the railways now than it ever did when they were nationalised. A return to state ownership doesn't necessarily imply more government control.
 

jon0844

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My point, which has clearly been missed, is that you can see why the temptation to privatise would have been there to speed up (and no doubt offset costs from the state) improvement work. And this was only NSE.

I didn't say things wouldn't have happened anyway, as clearly they would.

FWIW, they were showing brand new 321s so didn't just show the worst of the network. And it was the BBC!
 

WatcherZero

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Added to which most other countries are busy privatising their railways, to a greater or lesser degree.


I'm still waiting for you to back up your claim (post #23) that "most other countries are busy privatising their railways, to a greater or lesser degree."

Until you do, don't expect a response from me on any further points you raise.

In the US Amtrak North East corridor is being privatised.

Russia is privatising its railways over four years: http://www.reuters.com/article/2012/06/23/us-russia-privatisation-fact-idUSBRE85M0BL20120623

Serious talk in India about privatisation as a means to tackle corrupt rail ministers recently though nothing from the Indian government itself as far as I know.

NSW in Australia is further privatising its network among other states.http://www.wsws.org/en/articles/2012/12/15/rail-d15.html

Come on, even 'Communist' China is privatising its railways:

http://www.scmp.com/article/517261/investors-board-railway-privatisation-express

In fact if you look around almost everywhere privatised their railways between the late 80s and during the 90's (Japan, Sweden, New Zealand, most of South America, etc..).
 

LNW-GW Joint

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Sorry if I've got this wrong, but aren't most of the improvements such as Crossrail, Ordsall Curve, Northern hubs, HS2, etc., being effectively funded by the Government...???

The government approves the investment, but the capital spend mostly goes onto Network Rail's credit card, which they have to fund.
The pay-back comes when the regulated asset base increases and the TOCs have to pay more to run trains, and eventually both the passenger or the taxpayer pays extra.
So the government doesn't really "pay" for capital investment, certainly not at the time. The so-called 60/40% farebox split between passenger/taxpayer comes into play as well.

On the other hand, the annual DfT direct grant to NR is a government spend, and so are the subsidies to TOCs so they can pay the increased access charges. These are on the revenue line rather than capital.
As ever with railways, it's a complicated answer for a simple question!

EDIT: Actually I should have said it is the ORR which formally agrees Network Rail's spend in the 5-year plans (CP5 coming up next year).
But NR's big capital projects will already mostly have been agreed between DfT and NR, and announced in parliament.
ORR gets into the small print and approves NR's projects and the maintenance/renewal spend, but it's not ORR's money.
 
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yorksrob

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In the US Amtrak North East corridor is being privatised.

Russia is privatising its railways over four years: http://www.reuters.com/article/2012/06/23/us-russia-privatisation-fact-idUSBRE85M0BL20120623

Serious talk in India about privatisation as a means to tackle corrupt rail ministers recently though nothing from the Indian government itself as far as I know.

NSW in Australia is further privatising its network amonBg other states.http://www.wsws.org/en/articles/2012/12/15/rail-d15.html

Come on, even 'Communist' China is privatising its railways:

http://www.scmp.com/article/517261/investors-board-railway-privatisation-express



In fact if you look around almost everywhere privatised their railways between the late 80s and during the 90's (Japan, Sweden, New Zealand, most of South America, etc..).

I wonder how many of those will follow our example of splitting everything into hundreds of individual companies.
 

Harpers Tate

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I have a better idea for a new tax to subsidise the Railways.

Every employer who requires an employee to start work at 0900 will pay a levy for that employee. The levy reduces on a geometric scale the further away from 0900 the required start time is such that, if it's 0700 it's nil and if it's 1100 it's nil.

Every employer who requires an employee to finish work at 1700 will pay a levy for that employee. The levy reduces on a geometric scale the further away from 1700 the required finish time is such that, if it's 1500 it's nil and if it's 1900 it's nil.
 

Oscar

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In the US Amtrak North East corridor is being privatised.

Russia is privatising its railways over four years: http://www.reuters.com/article/2012/06/23/us-russia-privatisation-fact-idUSBRE85M0BL20120623

Serious talk in India about privatisation as a means to tackle corrupt rail ministers recently though nothing from the Indian government itself as far as I know.

NSW in Australia is further privatising its network among other states.http://www.wsws.org/en/articles/2012/12/15/rail-d15.html

Come on, even 'Communist' China is privatising its railways:

http://www.scmp.com/article/517261/investors-board-railway-privatisation-express

In fact if you look around almost everywhere privatised their railways between the late 80s and during the 90's (Japan, Sweden, New Zealand, most of South America, etc..).

As far as I am aware privatisation in other countries generally refers to developments such as using management contracts to run services or do engineering work, dividing track and train or selling off assets. I am not aware of a country other than Britain which uses a franchise-based system with large numbers of different brands for passengers and profit/subsidy predictions well into the future.
 

yorksrob

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I have a better idea for a new tax to subsidise the Railways.

Every employer who requires an employee to start work at 0900 will pay a levy for that employee. The levy reduces on a geometric scale the further away from 0900 the required start time is such that, if it's 0700 it's nil and if it's 1100 it's nil.

Every employer who requires an employee to finish work at 1700 will pay a levy for that employee. The levy reduces on a geometric scale the further away from 1700 the required finish time is such that, if it's 1500 it's nil and if it's 1900 it's nil.

I‘m not sure how you‘d enforce it, but it seems a logical idea. Even if it didn‘t raise any more money, it would force employers to offer more flexible hours, which either way is of benefit to the railway.

I suppose that if you wanted to raise money, you‘d be better off introducing more differential pricing in the peak as employers wouldn‘t see it as their problem and would leave it to employees to cough up.

Alternatively, if you were wanting to change peoples travelling habits (which would make sense as capital investments are generally quite expensive) then shifting the cost onto the employer will be more effective as they have more control over working hours and are more likely to react rather than pay up.
 

LNW-GW Joint

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As far as I am aware privatisation in other countries generally refers to developments such as using management contracts to run services or do engineering work, dividing track and train or selling off assets. I am not aware of a country other than Britain which uses a franchise-based system with large numbers of different brands for passengers and profit/subsidy predictions well into the future.

Well how do Arriva run their business in Europe then? eg Sweden.
FYRA in the Netherlands (KLM part owner) - pity they bought the wrong train :).
DB Schenker outside Germany.
NTV/Italo in Italy.
LEO in the Czech Republic.
All the private freight companies in Europe.
Eurotunnel.
Veolia.

Not as comprehensive a privatisation as in the UK but still significant and increasing.
Added to which even government-owned operators are required to function as arms-length limited companies - the SNCF and DB of today are not the same as they were.
 
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