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Network Rail misses punctuality target as profits fall Network Rail misses punctuality target as profits fall
(about 7 hours later)
Railways operator Network Rail has narrowly missed its own punctuality target as more than one-in-10 trains arrived late. Railway operator Network Rail has narrowly missed its own punctuality target as more than one in 10 trains arrived late.
The owner of Britain’s railway track admitted that “train performance has not been as good as we want”, after it undershot a target that 90% of trains should be on time in the six months to the end of September. The owner of Britain’s railway track admitted that “train performance has not been as good as we want” after it undershot a target that 90% of trains should be on time in the six months to the end of September. But it fell short by only 0.5%, meaning that it will reach its goal if one in 200 journeys runs a bit quicker.
But it only fell short by 0.5%, meaning that it will reach its goal if one-in-200 journeys runs a bit quicker. Pretax profits, which are reinvested in the rail network, were down from £321m to £246m in the six-month period, despite revenues that were up by £19m to £3.14bn. The revenue increase was offset by extra spending on upgrades and maintenance, with capital spending up by £216m to £3.2bn.
Pretax profits, which are reinvested in the rail network, were down from £321m to £246m in the six-month period, despite revenues up by £19m to £3.14bn. Network Rail has run into difficulty funding a programme of investment in infrastructure upgrades, including electrification of the Midland mainline and TransPennine routes. Its five-year plan to spend £38.5bn on Britain’s railway network was criticised by the Public Accounts Committee (PAC) for “staggering and unacceptable” cost increases.
The revenue increase was offset by extra spending on upgrades and maintenance, with capital spending up by £216m to £3.2bn. MPs on the committee said the company had “lost its grip”, warning that the public would end up paying for plans that could never have been delivered on time and on budget. A huge increase in the cost of electrifying the Great Western line between London and Swansea by 2019 came in for particular criticism. And Network Rail admitted earlier this week that the Cardiff to Swansea section might not be finished until 2024.
Network Rail has run into difficulty funding a programme of investment in infrastructure upgrades including electrification of the Midland mainline and TransPennine routes. It was announced in Wednesday’s autumn statement that Network Rail would sell £1.8bn of property to raise funds for these projects.
Related: Transport suffers deepest cuts after London subsidy axedRelated: Transport suffers deepest cuts after London subsidy axed
The sell-off, instigated by new chairman Sir Peter Hendy, is set to include space under railways arches and shop space at its stations. It was announced in Wednesday’s autumn statement that Network Rail would sell £1.8bn of property to raise funds for these projects. The sell-off, instigated by new chairman Sir Peter Hendy, is set to include space under railways arches and shop space at its stations.
Hendy has warned that some projects, such as electrification of the line between Swansea and London, will take longer than expected and cost more money.Hendy has warned that some projects, such as electrification of the line between Swansea and London, will take longer than expected and cost more money.
The body said on Thursday that the rail network is undergoing the “fastest sustained period of growth since the Victorian era”. The body said on Thursday that the rail network is Europe’s safest, adding that it was undergoing the “fastest sustained period of growth since the Victorian era”. And it insisted that the Hendy review “sets out a robust and realistic approach to delivering the portfolio of enhancements to the railway network that the country not only needs, but is able to afford”. “It takes account of the cost pressures the enhancement programme has been under, and sets out an approach to delivering the substantial programme required to help meet today and tomorrow’s capacity demands.”
Hendy’s review of Network Rail’s upgrade plans is to be followed next spring by a review by Nicola Shaw, chief executive of the HS1 high-speed line, of the company’s funding model. Hendy’s review of Network Rail’s upgrade plans is to be followed next spring by a review by Nicola Shaw, chief executive of the HS1 high-speed line, of the company’s funding model. Unions have raised concerns that the Shaw review could lead to the full-scale privatisation of Network Rail, which is run as an arm’s-length division of central government.
Unions have raised concerns that the Shaw review could lead to full-scale privatisation of Network Rail, which is run as an arms-length division of central government. Network Rail’s liabilities were added to the government balance sheet last September, effectively nationalising the company. The reclassification constrained its ability to borrow to pay for engineering work, prompting its chief executive, Mark Carne, to warn that projects could be delayed.