Railway Transport in the UK
Railway transport is one of the most convenient methods of transport. The ability to transport many passengers or a large number of goods at the same time gives the railway transport an advantage over other means. Railway transport is a safe method of transport since accidents associated with the method are rare. The transport system in the United Kingdom is one of the oldest railway transport systems in the world. Railway transport in the UK started as a connection of wooden wagons, which later developed to become railway connections. The ownership of the railway systems was by small transport companies that were subject to little or no regulation by the government. Railway transport was brought under government control during the First World War although several changes have been witnessed in the sector over time in terms of ownership and organization. The building, financing, management, and organization of new railway lines have been done according to the rules of the owning firms of the particular time.
The second half of the 21st century witnessed a significant change in the ownership of the railway transport system in the UK. Immediately after the First World War, the railway system was narrowed down to four larger companies that were famously referred to as the Big Four. The ‘Big Four’ were left with the mandate to oversee the transport of passengers and goods by the system. However, several other companies operated away from the ‘Big Four’ although they offered little competition. Several challenges, however, hit the ownership of the railway system by the four companies that were public companies (Cantarelli & Flyvbjerg, 2015). The road transport system was fast growing in the UK posing stiff competition to the railway system. The competition from road transport led to a drastic drop in the profits that used to be obtained from the railway transport system. Also, the number of passengers using the railway transport decreased since most preferred the road system and the companies were suffering losses. The companies always blamed the government for their woes since they claimed that the government favored the use of road transport at the expense of the railway transport system. The government of the UK eventually decided to intervene, and in 1948, the transport system was nationalized.
The nationalization of railway transport was done in the year 1948. The ‘Big Four’ companies were dissolved into the British Railway, which was under the control of the British Transport Commission. The nationalization of the railway systems was an attempt to save a transport system that was on the risk of dying. A boom in the business characterized the few years following the nationalization of the railway system. Profits obtained from railway transport were huge since the number of passengers was increasing due to the new management in the sector (Fenelon, 2017). The years of prosperity were, however, few, and the system went back to facing challenges similar to the ones faced by the ‘Big Four’ companies. The attempt by the government to improve the profits by the sector led the government into closing several branches of the railway system. The closure of several branches was however not taken in good faith by the general public who decided to divert to road transport. The government’s point of view was that the branches closed were uneconomical and were adding weight to the management of the railway transport system. However, several branches that were closed were outlets that connected the railway system to major company depots that were forced to turn to road transport. The challenges facing the nationalized railway transport system eventually led to the privatization of the transport sector.
A privatized railway transport sector appeared to be the solution to the ailing railway sector, and 1994 marked the privatization attempt. The privatization of the sector involved the passing of the railway system to privately owned operators (Sukor, Jarani, & Fisal, 2017). The private companies were given the mandate to run the railway transport system in a competitive environment, with the main competition coming from road transport. Like any previous attempt, the privatization of the railway transport sector witnessed an improvement in the profits made. Specifically, the number of passengers using the railway transport increased to set a record number since the 1920s. The organization of the privately owned railway companies can be seen to be the leading cause of increased profits. The privately-owned system has however not been spared by the challenges that faced previous ownership forms. Since 2016, the railway transport system has witnessed several strikes that have been affecting the operation of the sector. The passengers have been complaining about the increasing fare with several blaming the government for leaving the railway transport sector under the management of foreign firms.
In sum, the railway system in the UK has undergone several reforms in recent years. The railway transport sector has not been monopolized, and thus the management and financing have been changing with time. Currently, the UK railway system is privately owned although the general public has been continuously requesting the government to renationalize the sector.
References
Cantarelli, C. C., & Flyvbjerg, B. (2015). Decision making and major transport infrastructure projects: The role of project ownership. Handbook on Transport and Development. Edward Elgar, Cheltenham, 380-393.
Fenelon, K. G. (2017). Railway Economics. Routledge.
Sukor, N. S. A., Jarani, N., & Fisal, S. F. M. (2017). Analysis of passengers’ access and egress characteristics to the train station. Engineering Heritage Journal, 1(2), 01-04.