Created as a not-for-profit entity in 2002 (as a
replacement for Railtrack PLC) and treated by the Office for
National Statistics as a private entity, Network Rail found itself
firmly back in the public sector last September as a result of a
European accounting change, with increased government oversight and
management. Frustrated with its performance and its cost to the
Exchequer, there is now talk of privatisation. Meanwhile, two the
four candidates for the Labour party leadership favour rail
nationalisation.
Various forces - pressure on Network Rail to cut is costs and
improve its performance, a move towards regionalisation, the desire
of train operators for a more vertically integrated structure and
suggestions that Network Rail should slim down its activities and
focus on its core activity of maintaining and operating the track
– could lead to some sort of restructuring or privatisation
of Network Rail.
