UK Transport Secretary Heidi Alexander has warned that it could limit the expansion of open access operators, which has raised concerns in the industry.
Alexander has urged the Office of Rail and Road (ORR) to ensure that the benefits of these operators outweigh their impact on taxpayers. The statement is a change from the previous policy, which allowed new operators as long as they did not significantly affect the revenues of state-contracted companies.
The lobby group Rail Partners has expressed its concerns, stressing that open access operators create new travel opportunities, support economic growth and encourage greener transport options, without receiving government subsidies.
This potential restriction contrasts with the government’s recent support for private operators’ projects, such as the Prime Minister’s visit to a train factory for FirstGroup’s future Lumo services. The uncertainty has led to a 3% fall in the company’s shares since the publication of Alexander’s letter.
