UK rail infrastructure manager Network Rail (NR) is considering future options to bring in new private capital and expertise to support the operation, maintenance, renewal, financing and improvement of its electrical distribution and traction power assets.
The move will include assessing interest in its electrical assets from global investors and electricity network operators.
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NR aims to deliver a railway that is safer, more reliable and efficient, as well as help to build a thriving, sustainable economy.
Currently, NR is launching a consultation with power market investors and network firms to test their interest in its thousands of miles of overhead lines.
Plans are also underway to raise £1.8bn primarily from property sales to help fund NR’s five-year, £40bn railway upgrade plan. It is reported significant investment is needed to build capacity for more trains as passenger numbers on the UK railways is growing faster than anywhere in Europe.
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Network Rail CEO Mark Carne said: "Continuing the historically high levels of investment in our railway that we have seen over the last decade is absolutely vital if we are to provide the railway Britain needs in the years ahead.
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By GlobalData"Better railways drive economic growth, housing and jobs.
"Our approach is all about financial discipline, with a renewed focus on our core activities, while being open and innovative about new sources of finance to fund our growing railway.
"Network Rail’s job is to help support Britain’s economic growth by providing the railway that Britain needs today and in the future.
"While no decisions have yet been made, if there are investors or others with expertise in key areas who can help us do that, then we should look to embrace those opportunities."
KPMG, which has been appointed as financial advisor, will assess the market for a range of options, from maintaining the status quo to a geographical divestment of some or all of the electrical distribution and traction power assets to a third party.
Image: Overhead wires carrying up to 25,000 volts. Photo: courtesy of Network Rail.
