The Office of Rail Regulation has said Network Rail should reduce costs by 21 per cent by the end of 2014 and has set out plans for improved reliability, punctuality and capacity for both freight and passengers.
The plans, which were revealed in the ORR’s “draft determination” for the 2009 to 2014 period yesterday, have been welcomed by the FTA.
Christopher Snelling, head of rail freight and global supply chain policy at FTA, said: “This is a demanding package for Network Rail to meet improving operational and renewal performance at the same time as reducing costs.
“However, we believe that increased efficiency and network enhancement are not mutually exclusive and we are confident that Network Rail can achieve both.”
He added that the rail industry needs to constantly reduce costs to freight users in order to remain competitive with road.