Structure of the rail industry in the United Kingdom
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There are effectively two separate mainline railway systems in the
United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the European mainland, continental mainland. It comprises England, Scotlan ...
– the
Great Britain Great Britain is an island in the North Atlantic Ocean off the northwest coast of continental Europe. With an area of , it is the largest of the British Isles, the largest European island and the ninth-largest island in the world. It i ...
system and the
Northern Ireland Northern Ireland ( ga, Tuaisceart Éireann ; sco, label= Ulster-Scots, Norlin Airlann) is a part of the United Kingdom, situated in the north-east of the island of Ireland, that is variously described as a country, province or region. Nort ...
system, which are regulated and operated separately, and are constituted under separate pieces of
United Kingdom legislation The United Kingdom has four legal systems, each of which derives from a particular geographical area for a variety of historical reasons: English and Welsh law, Scots law, Northern Ireland law, and, since 2007, purely Welsh law (as a result o ...
.


Great Britain

Railways in Great Britain are run under a structure established by the
Railways Act 1993 The Railways Act 1993c 43 was introduced by John Major's Conservative government and passed on 5 November 1993. It provided for the restructuring of the British Railways Board (BRB), the public corporation that owned and operated the national ra ...
(as amended), which provided for the break-up of the former vertically integrated state railway, the
British Railways Board British may refer to: Peoples, culture, and language * British people, nationals or natives of the United Kingdom, British Overseas Territories, and Crown Dependencies. ** Britishness, the British identity and common culture * British English, ...
, and the transfer of its operations into the
private sector The private sector is the part of the economy, sometimes referred to as the citizen sector, which is owned by private groups, usually as a means of establishment for profit or non profit, rather than being owned by the government. Employment The ...
. The Secretary of State for Transport has overall responsibility for the railways within the
UK Government ga, Rialtas a Shoilse gd, Riaghaltas a Mhòrachd , image = HM Government logo.svg , image_size = 220px , image2 = Royal Coat of Arms of the United Kingdom (HM Government).svg , image_size2 = 180px , caption = Royal Arms , date_est ...
. The
railway track A railway track (British English and UIC terminology) or railroad track (American English), also known as permanent way or simply track, is the structure on a railway or railroad consisting of the rails, fasteners, railroad ties (sleeper ...
and infrastructure is owned and operated by
Network Rail Network Rail Limited is the owner (via its subsidiary Network Rail Infrastructure Limited, which was known as Railtrack plc before 2002) and infrastructure manager of most of the railway network in Great Britain. Network Rail is an "arm's leng ...
, which is regulated by the Office of Rail & Road (ORR). In Great Britain, passenger trains are run under either
franchises Franchise may refer to: Business and law * Franchising, a business method that involves licensing of trademarks and methods of doing business to franchisees * Franchise, a privilege to operate a type of business such as a cable television ...
from the Department for Transport, or on an open access basis; which means their operators have no contract with government.
Freight train Rail freight transport is the use of railroads and trains to transport cargo as opposed to human passengers. A freight train, cargo train, or goods train is a group of freight cars (US) or goods wagons (International Union of Railways) haul ...
operators have no contracts with government, and rely on the competitiveness and attractiveness of their product and services to maintain and increase their market shares.
Rolling stock The term rolling stock in the rail transport industry refers to railway vehicles, including both powered and unpowered vehicles: for example, locomotives, freight and passenger cars (or coaches), and non-revenue cars. Passenger vehicles can ...
is primarily owned by
rolling stock leasing companies Rolling is a type of motion that combines rotation (commonly, of an axially symmetric object) and translation of that object with respect to a surface (either one or the other moves), such that, if ideal conditions exist, the two are in contact ...
(ROSCOs). In 2006, using powers in the
Railways Act 2005 The Railways Act 2005 (c 14) is an Act of the Parliament of the United Kingdom concerning the regulatory structure for railways in the United Kingdom. Overview The bill was introduced and published on 25 November 2004 and received royal as ...
, the Department for Transport took over most of the functions of the Strategic Rail Authority. The DfT now itself runs competitions for the award of passenger rail franchises, and, once awarded, monitors and enforces the contracts with the private sector
franchisee Franchising is based on a marketing concept which can be adopted by an organization as a strategy for business expansion. Where implemented, a franchisor licenses some or all of its know-how, procedures, intellectual property, use of its busine ...
s. Franchises specify the passenger rail services which are to be run, and the quality and other conditions (for example, the cleanliness of trains, station facilities and opening hours, the punctuality and reliability of trains) which the operators have to meet. Some franchises receive subsidy from the DfT for doing so, and some are cash-positive, which means that the franchisee pays the DfT for the contract. Some franchises start life as subsidised and, over the tenure of their franchise period, move to being cash-positive. The other regulatory authority for the privatised railway is the ORR, which, following the Railways Act 2005, is the combined economic and safety regulator. It replaced the Rail Regulator on 5 July 2004.


Northern Ireland

Unlike the other constituent
countries of the United Kingdom The United Kingdom of Great Britain and Northern Ireland (UK), since 1922, comprises three constituent countries and a region: England, Scotland, and Wales (which collectively make up the region of Great Britain), as well as Northern Ireland, ...
, railways in Northern Ireland are a
devolved Devolution is the statutory delegation of powers from the central government of a sovereign state to govern at a subnational level, such as a regional or local level. It is a form of administrative decentralization. Devolved territories ...
matter. The Northern Ireland Minister for Regional Development has responsibility for railways in Northern Ireland. Even during
direct rule Direct rule is when an imperial or central power takes direct control over the legislature, executive and civil administration of an otherwise largely self-governing territory. Examples Chechnya In 1991, Chechen separatists declared independence ...
, a
Minister of State Minister of State is a title borne by politicians in certain countries governed under a parliamentary system. In some countries a Minister of State is a Junior Minister of government, who is assigned to assist a specific Cabinet Minister. In ...
at the
Northern Ireland Office The Northern Ireland Office (NIO; ga, Oifig Thuaisceart Éireann, Ulster-Scots: ''Norlin Airlann Oaffis'') is a department of His Majesty's Government responsible for Northern Ireland affairs. The NIO is led by the Secretary of State for N ...
has always had responsibility for railways in Northern Ireland, and not the Secretary of State for Transport. The structure of the railway industry in Northern Ireland is governed by the Transport Act 1967 (Northern Ireland), an Act of the former
Parliament of Northern Ireland The Parliament of Northern Ireland was the home rule legislature of Northern Ireland, created under the Government of Ireland Act 1920, which sat from 7 June 1921 to 30 March 1972, when it was suspended because of its inability to restore ord ...
that still applies. This established a statutory corporation, the
Northern Ireland Transport Holding Company The Northern Ireland Transport Holding Company (NITHCo) is a government-owned body which was established in 1967 to take over the railway and bus services of the Ulster Transport Authority (UTA), namely Northern Ireland Railways (NIR) and Ulster ...
- which trades under the brand name Translink - whose members are appointed by the Minister for Regional Development. The corporation has established a wholly owned subsidiary, Northern Ireland Railways Company Limited - which trades as NI Railways - to carry out its functions relating to railways. Unlike in Great Britain, where different companies run the network, provide rolling stock, and operate trains, NI Railways carries out all these activities itself in Northern Ireland, and is thus a vertically integrated railway, rather than merely a train operating company. The only exception is the
Dublin Dublin (; , or ) is the capital and largest city of Ireland. On a bay at the mouth of the River Liffey, it is in the province of Leinster, bordered on the south by the Dublin Mountains, a part of the Wicklow Mountains range. At the 2016 c ...
to
Belfast Belfast ( , ; from ga, Béal Feirste , meaning 'mouth of the sand-bank ford') is the capital and largest city of Northern Ireland, standing on the banks of the River Lagan on the east coast. It is the 12th-largest city in the United Kingdom ...
railway line, where services are operated jointly with Iarnród Éireann, the nationalised railway company in the
Republic of Ireland Ireland ( ga, Éire ), also known as the Republic of Ireland (), is a country in north-western Europe consisting of 26 of the 32 Counties of Ireland, counties of the island of Ireland. The capital and largest city is Dublin, on the eastern ...
, under the brand name
Enterprise Enterprise (or the archaic spelling Enterprize) may refer to: Business and economics Brands and enterprises * Enterprise GP Holdings, an energy holding company * Enterprise plc, a UK civil engineering and maintenance company * Enterpris ...
.


See also

* History of rail transport in Great Britain * British Rail
Overview of the rail industry


References


External links


National Rail Trends
2003-2004 quarter three, from the Strategic Rail Authority (SRA); ''note:'' PDF format
DfT Transport Ten Year Plan 2000
from the UK Government Department for Transport (DfT)
Network Rail - Making a Fresh Start
- National Audit Office (NAO) report, 14 May 2004; ''note:'' PDF format {{Economy of the United Kingdom