The Mayor’s Rail Vision: Investing in Rail Services in London
The separate management by central government of London’s local railways from those run by Transport for London results in a confusing mix of ticket products, fare levels, service quality standards and information provision for customers. It is the Train Operating Companies that typically provide the lower level of service and greater complexity of fare and ticket products.
The Department for Transport’s traditional franchising model is currently under review. It rightly says that there is no ‘one size that fits all’. Notably commercial incentives are generally weak for inner-suburban railways, so the standard contract is often ill-suited. It is no surprise in these circumstances that the rail company that pre-dated London Overground simply looked to minimise costs, rather than develop more intensive, higher quality metro-style high capacity services. As a result of this approach, existing assets are not being exploited to their full capacity and the new infrastructure being delivered over the next decade may not reach its full potential.
Transport for London’s London Overground offers a different model that is both cheaper to manage and more efficient. The opportunity exists to spend less on train operators’ “risk premia” and instead provide financial incentives to provide the high quality services passengers want. This is key to the success of London Overground.
A single coherent vision
The Mayor’s rail vision sets out that alternative. Responsibility for London’s inner-suburban rail services should be devolved to the Mayoralty. In that way a single coherent vision for the city’s railways can be made real. Gross savings through adopting a more efficient franchising model from the Southeastern and West Anglia franchises alone could amount to £100m over 20 years. TfL would plough that back into improvements, for example at more than 100 stations, bringing them up to superior London Overground standards.
Vital to London’s economic prospects
London’s inner-suburban railways are the workhorse of much of the Capital’s economy. Investment in these assets often generates a high return in the job creation and growth that is crucial to the economic prospects of London and the UK. Despite the importance of this network, it is the area that is most in need of a plan for additional capacity. Transport for London has identified a package of schemes required to meet the growing demand for rail services, support regeneration, improve interchange opportunities at strategic locations, provide step-free access at stations and relieve station congestion.
This new approach is described in The Mayor’s Rail Vision: Investing in Rail Services
