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Why are railways so costly?

Another bit of a rant: How CRAP was the article in G2 of the Grauniad last Saturday? Answer: crappier than a crap thing. It was an almost verbatim re-write of an article my mum sent me out of The Times a year ago.

All it was, was basicly "look early on the internet, try technically breaking your jounrey to jiggle the fares lower, be careful not to buy a cheap single and then have to buy an expensive single to return".

Whoopee friggin' do! :rolleyes:

Then they had a rant from somone in Kingston in SW London whose fare had gone up becasue now overground fares in Greater London follow exactly the same price structure as the underground and whilst some went down, some went up.
 
I am going to reply to the great discussion about the costly railways but i think first im going to create a seperate "First Great Western Rant" thread. I think we all need to vent some anger. Feel fee to pop over and blow your top. Maybe the MD will pop along and read it some time.
 
franklin1777 said:
I am going to reply to the great discussion about the costly railways but i think first im going to create a seperate "First Great Western Rant" thread. I think we all need to vent some anger. Feel fee to pop over and blow your top. Maybe the MD will pop along and read it some time.
*watches thread list*
 
So much to reply to on this thread, it is proving to be a most interesting discussion.

I would like to see a nationalised rail network again but don't really see how that could happened and don't really see how privatisation could have been stopped. It is like saying Dr Beeching could have been stopped.

A lot of government decisions have been poor and naturally against the railway network with the road lobby and their plan to tarmac the nation. It is in these political decisions which includes not just the infrastructure but also the passenger and freight service that I still maintain can only come from a stronger strategic direction and a strong regulation regime provided by a government body hopefully incorporating industry and customer interests. As someone else has suggested a modern day British Railways Board.

I even agree with vertical integration but you would need to remove the franchise periods. What is the point of having a 15 year railway. I would also demand protection for open access operators, either national or local companies that operated trains across the network. Mainly to stop the monopolistic players such as stage coach and first being able to operate a virtual monopoly. After all if another operator can come in and run competitive services then there should be enough competition to be in the customer's interest.

So all in all I guess you would be looking at 4/5/6 main operators with a number of open access operators such as freight, long distance cross country passenger services, Local specials, charter companies etc.

Another thing I would want to see is a destruction of the power wielded by the leasing companies.

It all seems a bit of a pipe dream, but that would be my railway.
 
franklin1777 said:
So much to reply to on this thread, it is proving to be a most interesting discussion.

I would like to see a nationalised rail network again but don't really see how that could happened and don't really see how privatisation could have been stopped. It is like saying Dr Beeching could have been stopped.
You know, the interesting thing about Beeching is that what he proposed was a lot different from what we got, but it has been interesting how willing successive governments have been to allow the misconception that Beeching was responsible for emasculating the rail network to persist.

Beeching was quite a fan of railways, and his review was premised on his shock at discovering that British Rail made no attempt to record figures for financial of any part of the network. When he started to try and find out what the economies of running the branch lines were, it was not to close them, but to provide an economic basis on which they could be justified as "feeders" to the rest of the network.

Beeching's vision was of a significantly pared-down network - the amount of duplication and pointlessness was quite legendary - but one where local routes fed into the more profitable and higher-profile major routes. There was a contrary view going around at the time that the entire rail network, barring the trunk routes between major cities, should just be slashed, leaving us with, effectively, no more than an "Inter City" service.

But his report was only partially implemented by Government - they did all the bits that saved money, like closing branches and lines, but failed to make the investments in other parts of the network to compensate (I think Beeching had been an advocate of some fairly major upgrading of what was left). What they effectively left us with was a fragmented and badly hacked around system that had all the worst aspects of the cuts (ie, less feeder routes, poor resources at railheads to allow multimodal transport), and no benefits to the rest of the network (viz investment and improvement). Some improvements did filter through - the West Coast electrification being one, and the use of "block trains", continuously-braked freight trains that ran point-to-point, rather than the much slower unfitted freights, which stopped everywhere to detach wagons, being another.

Another major flaw in Beeching's reasoning was the idea that the "missing" rail services would just be made up by buses. What tended to actually happen was that people would forego the comparatively slow and unreliable bus services in favour of doing that leg of the journey in their new cars - and, once on the road in the car, there was little point in not doing the entire journey in the car. Thus, that miscalculation led to the railways losing even more traffic to other forms of transport, not gaining it as a result of the modernisation.

franklin1777 said:
A lot of government decisions have been poor and naturally against the railway network with the road lobby and their plan to tarmac the nation. It is in these political decisions which includes not just the infrastructure but also the passenger and freight service that I still maintain can only come from a stronger strategic direction and a strong regulation regime provided by a government body hopefully incorporating industry and customer interests. As someone else has suggested a modern day British Railways Board.
Yes. The trouble is that railways look, superficially, extremely expensive: the fixed infrastructure costs are very high, and pay back over a very long term, while unit vehicle-mile costs are comparatively low, in contrast to roads, where the infrastructure costs are considerably lower, and the unit costs greatly higher. The comparison is further skewed by the fact that for road transport the vehicle-mile costs are borne privately and are also to some extent lost in the fixed costs of purchasing and servicing a vehicle, which, having been paid out, then makes the per-mile costs look even cheaper.

franklin1777 said:
I even agree with vertical integration but you would need to remove the franchise periods. What is the point of having a 15 year railway. I would also demand protection for open access operators, either national or local companies that operated trains across the network. Mainly to stop the monopolistic players such as stage coach and first being able to operate a virtual monopoly. After all if another operator can come in and run competitive services then there should be enough competition to be in the customer's interest.
I think that something had to be done. The idea that we had a railway system which operated as if it were immune from the normal economic realities was ludicrous and unsustainable, but the way in which the system was privatised, creating THREE separate vertical profit centres - the infrastructure provider, the ROSCOs, and the train operators - all with their own shareholders and bottom line, not to mention the manipulation verging on fraud of the subsidies around the time of privatisation, was utterly wrong and served only to perpetuate a lot of what was already wrong, leaving us with the worst of all possible worlds.

franklin1777 said:
So all in all I guess you would be looking at 4/5/6 main operators with a number of open access operators such as freight, long distance cross country passenger services, Local specials, charter companies etc.

Another thing I would want to see is a destruction of the power wielded by the leasing companies.

It all seems a bit of a pipe dream, but that would be my railway.
*nods* At the very least, I think I'd want to see the ROSCOs and the infrastructure merged - after all, from a safety point of view, the distinction between vehicles and track/signalling is pretty much non-existent. So it would then be possible for any organisation then to "charter" a train and a path in order to run a service (though I still think that the pricing and ticketing implications for this are horrendous).

"My" railway would probably be a monolithic company again. It would be run by a board, on commercial lines, as a non-profit-making trust, with Government subsidy as required. It would be financially accountable to us, by publishing proper accounts, would be able to invest in infrastructure (which would necessitate the appropriate financial instruments being available to it, much as the SNCF infrastructure does in France), could run unprofitable "public service" services with appropriate subsidies, etc.

In other words, a nationalised British Rail again, but one that would have to justify itself in broadly commercial terms, but without the cold dead hand of State control, yet without being at the mercy of shareholders and the vagaries of private ownership.
 
So given that the government is not likely to agree with one of our radical solutions for a long time. What will happen now.

Will it slowly creak along until like the rail track implosion some other major part of the railway network implodes like a major franchise operator such as FGW and the govt will be forced to do something?

Or do you think real change is on the way in the future?
 
franklin1777 said:
So given that the government is not likely to agree with one of our radical solutions for a long time. What will happen now.

Will it slowly creak along until like the rail track implosion some other major part of the railway network implodes like a major franchise operator such as FGW and the govt will be forced to do something?

Or do you think real change is on the way in the future?
There'll be a few more jolts, like the GNER business - or maybe a franchise-holder itself will go bust. But nothing will really change, because nobody will have the will to spend the amounts of public money it would take both to buy back the franchises, and invest in the service to make it work.

The best we can hope for, frankly, is $150/barrel oil and a government which recognises that we have to do something about our dependence on oil and gas, and that some kind of electrically (probably nuclear-generated) powered infrastructure is our best option.
 
pembrokestephen said:
The best we can hope for, frankly, is $150/barrel oil and a government which recognises that we have to do something about our dependence on oil and gas, and that some kind of electrically (probably nuclear-generated) powered infrastructure is our best option.

Is this before or after the rising sea levels drown us all?:D
 
He was a seafarer but the irony is that the Deputy Prime Minister rose through what is now the RMT union.
You'd have thought he might have had some understanding for public transport issues, that "Mr Two Jags". :mad:
 
This is still a superb discussion. :cool:

If I can set out my 'ideal railway,' I'm roughly in agreement with pembrokestephen. I think it should be a monolithic entity again (although there is a case for allowing some franchising of particular services). Tbh, I would try and recreate something much like British Rail in its later years, but I'd try and find a way to arrange the funding arrangements for it so that subsidy could be guaranteed for a period of years, giving better capacity for long-term planning. One of BR's bugbears was that it was too tied in to annualised Treasury funding, meaning that its subsidy tended to fluctuate too much.

I'm not convinced by the point about the 'cold dead hand' of state control: there seems to be too much of that about at the moment. The Treasury's influence over the franchising system, and desire to get some cash back out of the railways, is one reason why operators like GNER have ended up being tied into overly optimistic contracts and have ended up in difficulties as a result. Indeed, I've seen it argued that BR actually had more independence from government in some ways.

Will any of this happen? No, sadly. There isn't the political will to do it or the willingness to make available the money to start buying back the franchises. I can see things grinding along as they are for the time being. Had things carried on going the way they were a few years ago, with railtrack coming apart at the seams and the railways getting appalling press after that series of accidents, the will to do something more radical might be there, but things have improved since then. I still think the structure of the industry is basically unsustainable, but Labour have managed to make it work better than it did, which is something.

Have to say, I disagree with franklin1777 here:

I would like to see a nationalised rail network again but don't really see how that could happened and don't really see how privatisation could have been stopped.

The Tories forced privatisation through in a hurry, in the expectation of losing the 1997 election. Even within the Conservative party there was considerable opposition to it, and had Labour given a clear commitment to renationalisation it's quite possible that many of the companies sold off in 1995-6, including Railtrack, would have been pretty much unsaleable. One could also suggest that British Rail management should have fought harder than they did.

As for Beeching, well, I take a less sympathetic view of him than pembrokestephen. It is true that Beeching advocated heavy investment in parts of the system - which should have happened and often didn't - and that he had a vision for the future of the railways that was never implemented. However, he was wrong on so many points I find it hard to judge him all that kindly. The idea that trains could be replaced with buses was a non-starter. More seriously, he did seriously believe in closing large parts of the network (and in later years he said he hadn't gone far enough). Some closures were certainly necessary, but Beeching had decided on the solution before he had identified the problem correctly and, with the encouragement of a roads-obsessed government, he went much too far. The closures before around 1965 were largely necessary: they were lines that could never be made viable. The closures after that date all too often did serious damage to the netowrk. Depriving places like Tumby Woodside and Troublehouse Halt (I'm thinking of the Flanders and Swann song here...!) of their stations was probably no great loss: removing any rail links from places the size of Mansfield and Ripon definitely was! Moreover, the figures he used to prove that lines were uneconomic were highly dubious in many cases. It wasn't only Beeching, though: the philosophy persisted well after he went. Lest we forget, BR was trying to close the Settle-Carlisle line until the mid-80s...
 
Isambard said:
He was a seafarer but the irony is that the Deputy Prime Minister rose through what is now the RMT union.
You'd have thought he might have had some understanding for public transport issues, that "Mr Two Jags". :mad:

"Seafarer"? - wasn't he a steward on Cunard?.

I can't see how serving G&T's on cruise liners would develop an understanding of public transport issues, although there does seem to be a tighter focus on the development of retail opportunities at rail stations and airports rather than expanding capacity.
 
Expanding capacity requires serious investment.
Opening an overprice coffee shop requires a couple of thousand quid.
 
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