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Vertical integration
A route to rail sector efficiency
The experiences of Transport for Wales and Scotland ’ s Railway in recent years have demonstrated the transformational potential of taking a more aligned and systemic approach to the management and development of railway operations and infrastructure .
While there is no one-size-fits-all solution , the planned reform of the UK rail sector provides an important opportunity to radically improve current industry performance , through expanding the principles of vertical integration .
The case for a vertically integrated model in the UK
Talk to any commuter , rail professional , local or national politician and their analysis of the UK ’ s rail industry will be similar – it ’ s a sector in desperate need of reform .
The good news is that reform is on its way . The debate over whether change is needed is over ; and is now firmly rooted in precisely what form reform should take . The UK appears to be heading towards a more integrated approach in which infrastructure , rolling stock and operations are treated as a single system . The long-awaited Railways Bill was confirmed in the King ’ s Speech and once enacted by the new administration , could lay the foundations for a new era of integration .
And while so-called vertical integration is not necessarily appropriate across the entire rail network , with a single guiding mind such as the “ Integrated Rail Body ” proposed by the Bill , there is increasing evidence that an integrated structure certainly holds the key to better outcomes .
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