FEATURE RAIL TRAVEL
OPEN ACCESS
Tony Lodge, research fellow at the Centre for Policy Studies and author of its report, Rail’s Second Chance, sets out his priorities for the next government. Whether there is a new Labour government, another coalition or the Conservatives manage to win an outright majority, a better and more competitive rail policy is needed. Labour is pushing for the public sector to again run
rail franchises, while many Conservatives remain uneasy about an apparent new monopoly on the railways having developed under their watch. In November the government awarded the
prestigious East Coast franchise to Stagecoach and Virgin Trains, which raises deeper concerns about competition policy. Stagecoach already runs East Midlands Trains out of London St Pancras, while the West Coast franchise between Euston and Glasgow is run by a 51/49 per cent Virgin and Stagecoach joint venture. Virgin Trains East Coast, which started in March, confirms the consortium’s grip on high-speed rail travel north of London. Labour is increasingly echoing the new militancy of
the rail unions and the TUC. Its plans for civil servants to run rail services are draconian, would be hugely expensive and arguably illegal. But more competition among fast, long-distance services is now required, and the tool which can deliver this is open access. East Coast is the only route where a franchised
operator competes directly with privately operated open access rivals (Grand Central and First Hull Trains). This competition has made the incumbent operator deliver a better service and attracted more passengers. So isn’t this a Tory policy opportunity? Since 1993
overall passenger traffic has doubled, growing faster than in all other European countries. This growth is expected to double again by 2030, and passengers are footing more of the rail bill rather than the taxpayer. More people are travelling by train than at any time
since the 1920s on a rail network almost half the size, and enjoying the highest levels of safety on record. The Tories should claim some credit for this. Competition, albeit still limited, has played a key role
in rejuvenating the East Coast route, and open access must be supported. But no more open access operations have been approved by the coalition, and ministers have often hidden behind the Office of Rail Regulation's decisions. The ORR claims there is not enough capacity for new services. My report shows that East Coast passenger journeys
increased by 42 per cent at stations which enjoy rail competition, compared with 27 per cent for those without, while revenue increased by 57 per cent and 48 per cent respectively. Average fares increased by only 11 per cent at those stations with competition, compared to 17 per cent at others. Open access companies have connected more places
with London too, including Bradford, Hartlepool and Hull. More competition is in the interests of passengers, taxpayers, the government and the regions.
➔
“Business travellers at peak times are a captive audience, and although they are prepared to travel off-peak, advance fares in first class are still too high,” he says. “I need to work when I travel by rail, and I like the privacy of first class and not having someone next to me. An intermediate ‘premium economy’ type of class might work, but you could end up with no privacy,” he says. The often solitary splendour of
travelling in first class is at risk, however. First Great Western has reduced first class on its high-speed trains, and Virgin is reducing it on shorter Pendolino trains on the West Coast route. By increasing standard class seating in its place, train operators can cope with rising demand. More business folk are travelling by rail
rather than air between London and Scotland where journey times are typically 4.5 hours to Edinburgh or Glasgow, with four hours more typical within a few years. The case for rail rather than air between Birmingham or Manchester and Scotland is even more persuasive, and wifi and mobile reception will be improved. “If it’s city centre to city centre, the
train is more productive,” says Rissbrook. “There may also be a market on longer Eurostar routes such as Amsterdam, but only from and to central London.” Peter Macey, facilities and central
purchasing officer for medical defence society MDDUS, says: “The lack of competition means that single operators,
➔ THE BUSINESS TRAVEL MAGAZINE 45
“There may be a business travel market on longer Eurostar routes such as Amsterdam, but only to and from central London”
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96