UK Network Rail Told to Cut Costs

The Office of Rail Regulation (ORR) has told UK rail company Network Rail to cut its costs and cash demands in an attempt to improve accountability and commuter services.

The ORR's track access charges for the next five years from April 2009 include levying fines for performances failures on particular routes.

"The initial review of Network Rail's business plan leads us to believe the company can make significantly greater efficiency savings than those assumed in its present plans, without affecting delivery of the railway," says ORR's CEO Bill Emery.

The research has included comparisons with French and German rail infrastructure managers with Network Rail believed to be at least 30% less efficient than its European counterparts.

Engineering overruns, which left thousands of commuters stranded on two of Britain's busiest routes at Liverpool Street in London and Rugby stations over the Christmas period, has lead to calls from the industry and commuter groups to enforce tough legislation on Network Rail.

Network Rail responded to the criticism by announcing it would be bringing more engineering work in-house to maintain more control over projects.

By Ozge Ibrahim