Despite one of the worst winters on record and the effects of the global recession, revenues at Network Rail powered up last year and profits have climbed by 11 per cent.
Network Rail further reduced costs and is on target to achieve substantial savings over control period four (2009-2014). Profits of 2bn will reassure ministers considering the recommendations of the Sir Roy McNulty’s Rail Value for Money study.
There is still time to take your place at the better value railway conference in London on 20th June, where Sir Roy will be speaking. (see below)
The money will be re-invested in the expanding railway. Already several of his ideas are being put into practice. Says Network Rail’s finance director, Patrick Butcher, ‘The findings of the government-commissioned McNulty review show that there are clear opportunities for the whole industry to make further savings in the costs of running the railway.
‘The message is clear: the rail industry simply has to become more affordable for the users of the railway network and for taxpayers.’
Revenue increased to £5,712m, up from last year’s figure of £5,668m. Despite the severe winter and continuing upgrade works, performance held steady at 90.5 per cent. Better performance, operationally and financially, means the rail industry is in a good position to take forward many of the ideas suggested by Sir Roy.
Says Patrick Butcher, ‘Network Rail has been in the vanguard of change over the past year and will continue to drive for rapid, safe evolution. Examples of our initiatives include moving decision making closer to our customers (and) partnering with key industry players…’
More details about what Network Rail is doing under its new chief executive, David Higgins are to be seen in the New Century News Makers interview centre page spread.