A business case for investing in rail

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Today, there is growing concern about the number of cars and lorries on the UK’s roads, the amount of time wasted in traffic jams, and the dangers of traffic-related pollution to people’s health and the environment. Britain’s railways provide the opportunity to solve some of the transport and distribution problems individuals and organisations currently face. This case study is designed to encourage students to think about and then set out a good business case for investing in the railway service. The 1993 Railways Act paved the way for the process of rail privatisation which has rapidly reformed Britain’s railways. The overriding aim of this privatisation was to improve the quality and efficiency of rail services by introducing private sector investment and management. Privatisation was designed to deliver new and improved benefits for passengers and to create opportunities for business. Privatisation in the railway industry involved the creation of nearly 100 different business units, the most significant of which was Railtrack. Railtrack was released from the public sector when it was floated on the Stock Exchange in May 1996 to become Railtrack Group Plc – a privately owned company. Railtrack owns almost all of Britain’s railway infrastructure, including tracks, signalling, bridges,…

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