tag:blogger.com,1999:blog-568852931152106119.post4943506142724730577..comments2024-03-17T18:53:05.139-07:00Comments on CycaLogical: Funding Future Railwayscrossriderhttp://www.blogger.com/profile/00896858165635612158noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-568852931152106119.post-78619753902829221572011-09-06T05:31:21.367-07:002011-09-06T05:31:21.367-07:00It's the bizarre way that the railways were se...It's the bizarre way that the railways were set up on privatisation, which allows -- encourages, even -- operators to walk away with the profits while dumping debts and investment commitments on the government.<br /><br />Train Operating Franchises only last a decade or so (or have so far), so the operators have no incentive to make big and long-term investments: they might not be the ones collecting the revenues when it comes to paying back the loans. Chiltern have been given a 25 year franchise and they are making a big investment in the infrastructure.<br /><br />Network Rail, who do most of the track construction and maintenance anyway, are a bit public and a bit private -- a bizarre arrangement that allows them to continue racking up a staggering debt without it appearing in the national debt. (But without the government being able to control the executive bonuses.)<br /><br />It looks like future franchises will be of the 25 year variety, with closer cooperation between the trains people and the track people to encourage and enable the investment you're suggesting -- time will tell...Anonymousnoreply@blogger.com