Network Rail to sell off “non-core railway assets”

Network Rail are planning to raise £1.8Bn by the sale of “non-core rail way assets” to meet the rising costs of major infrastructure projects.

A report from Sir Peter Hendy reviewed Network Rail’s five-year funding programme to 2019 and concluded that most of the programme can continue as planned with funds raised from the sale of assets that will include retail units in stations, depots, and spare capacity on the telecoms network.

Sir Peter was appointed as the new chairman of Network Rail by the Secretary of State for Transport in June and was tasked with reviewing CP5 (Control Period 5: 2014 -2019). Prior to his appointment, costs of projects had been spiralling and deadlines for projects missed.

Last year Network Rail became a public body and now relies on funding from the government rather than being able to borrow money privately but Sir Peter has said that the Department of Transport would now raise its borrowing limit by £700M.

Last month it came to light that the cost of the Great Western line between London and south Wales electrification had risen to a potential £2.8Bn. It had originally been budgeted at £640M.

In his review, Sir Peter said: “Passengers and businesses are already benefitting from the largest investment by Government in our railways since Victorian times and that will continue.

“The extra investment secures a Railway Upgrade Plan that delivers better stations, faster, more frequent and longer trains and a safer and more reliable railway for millions of passengers and businesses.”

He did however, concede that some projects would cost more and take longer to complete than originally thought. He said: “My review has clearly found that the original plan was unrealistic and undeliverable.”

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