The case for a vertically integrated model for the UK’s railways

James Holmes, Business Director
26 November 2024
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Talk to any commuter, rail professional, local or national politician and their analysis of the UK’s rail industry will be similar – it’s a sector in desperate need of reform.

The good news is reform is on its way. The debate over whether change is needed is over; and is now firmly rooted in precisely what form reform should take. The UK appears to be heading towards a more integrated approach in which infrastructure, rolling stock and operations are treated as a single system. The long-awaited Railways Bill was confirmed in the King’s Speech and, once enacted by the new administration, could lay the foundations for a new era of integration.

And while so-called vertical integration is not necessarily appropriate across the entire rail network, with a single guiding mind such as the “Integrated Rail Body” proposed by the Bill, there is increasing evidence that an integrated structure certainly holds the key to better outcomes.

The outstanding challenge is the current fragmented and siloed industry structure working towards misaligned objectives. Of course, any legislative reforms make a step towards change, but finding the right structure for better overall performance remains elusive.

In search of a systems solution

Delays to reform are hardly surprising. The railway is a complex system and any change to current arrangements must be approached with critical systemic thinking top of mind. This is neither easy nor usual. To evoke effective change, we need to be radical – breaking down those silos of activity, managing the network of track, other infrastructure, rolling stock, stations and services operated. In its place we need to create a new systems-driven approach capable of delivering reliable passenger and freight services that represent value for money and at a price the nation can afford.

 

First published on New Civil Engineer on 17th of October.

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