DfT Operator

DfT Operator Limited (DFTO), formerly known as DfT OLR Holdings Limited, is a British government-owned holding company established in 2018 by the Department for Transport (DfT). It was created to act as the operator of last resort for rail franchises in England, taking over train operating companies (TOCs) that are either financially failing or being returned to public ownership at the end of their contract terms.

DFTO’s role has significantly expanded since its inception, particularly following the passage of the Passenger Railway Services (Public Ownership) Act 2024, which enabled the government to assume ownership of passenger rail services without buying out private contracts. Under this framework, the government has announced that it will not renew existing private rail operating contracts, instead transferring services to DFTO as they expire. This policy forms part of the Labour Party's commitment to renationalise passenger rail, a key pledge of its 2024 general election manifesto.

Acting under the direction of DfT, DFTO now oversees several major rail operators, making it the largest operator of passenger rail services in Britain by passenger revenue and mileage. It is expected to play a transitional role in the government's long-term rail strategy, ahead of the launch of Great British Railways, a planned public body that will integrate both operations and infrastructure across the national network.

History

DfT Operator Limited was established in May 2018 under the name DfT OLR Holdings Limited, as a subsidiary of the Department for Transport (DfT). It was created to meet the Secretary of State's obligation under section 30 of the Railways Act 1993 to ensure continuity of rail services in the event of franchise failure. The company serves as the legal vehicle through which the DfT takes ownership of train operating companies (TOCs) when a franchise is either terminated early or not renewed.

The first use of this model occurred on 24 June 2018, when London North Eastern Railway replaced Virgin Trains East Coast following the collapse of the InterCity East Coast franchise. This was followed by the transfer of Northern Trains on 1 March 2020, after Arriva Rail North was deemed financially unsustainable. In October 2021, Southeastern took over the South Eastern franchise from Govia after financial irregularities were uncovered. On 28 May 2023, TransPennine Express was transferred to public ownership after the franchise operated by FirstGroup Louise Haigh announced that the company would be renamed DfT Operator Limited, reflecting its expanded purpose and long-term strategic role. The announcement also confirmed the transfer of additional TOCs: South Western Railway on 25 May 2025, c2c on 20 July 2025, and Greater Anglia on 12 October 2025.

These changes form part of a wider restructuring of the UK rail system under the planned launch of Great British Railways, a new public body that will integrate train operations, infrastructure, and planning across Britain. DFTO is expected to be absorbed into Great British Railways as part of this transition, with the aim of creating a unified, publicly accountable railway network.

Subsidiaries

DfT Operator currently has several active rail subsidiaries and has previously held other rail assets. These companies operate under public ownership following the expiry or early termination of private franchises.

*London North Eastern Railway – took over the InterCity East Coast franchise in June 2018
*Northern Trains – assumed control of the Northern franchise in March 2020
* Southeastern – took over the South Eastern franchise in October 2021
*TransPennine Express – took over TransPennine services in May 2023
*South Western Railway – transferred to public ownership on 25 May 2025

See also

* Directly Operated Railways
*Great British Railways

References

External links

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{{Department for Transport, state=collapsed

Department for Transport
Government-owned companies of the United Kingdom
Operators of last resort
2018 establishments in the United Kingdom