Network Rail's Strategic Business Plan: agreed with ORR

Last week, Network Rail and the Office of Rail Regulation (ORR) finally agreed the level of funding that Network Rail needs to operate, maintain, renew and enhance the railway network and deliver specified network enhancements in the period 2009 - 2014. ORR determined that Network Rail needed to spend £28.5bn in the five years of control period.

This was £2.6bn less than the £31.1bn Network Rail requested.

In the second half of 2008, ORR confirmed to the Secretary of State for Transport and Scottish ministers that the improvements it is expecting from the railways over the next five years were affordable from the public money the governments are making available. To do this Network Rail must implement efficiency measures including new technologies working methods.

FTA has warmly welcomed the decision which means industry can plan for future rail freight investments with certainty. Particularly welcome in the agreed settlement is the reduction in freight track access charges by a third over the five year period, which is intended to make rail more attractive to existing and potential customers. Track access charges represent approximately a third of rail freight operators' costs.