The benefits of open access
Challenger entrants bring new ideas that keep established operators on their toes.
By ‘Industry Update’ THERE is a continuing debate about the benefit of open access services, with a belief in some quarters that the monopolistic nature of most franchised operations is being justified on the grounds of simplicity, with passenger choice not seen as important.
This is in contrast to decisions taken at the time of Privatisation in the 1990s, when policy makers held the opinion that the decline in passenger and freight markets at the time could be reversed if competition was introduced to stimulate new services and reduce fares as a result of lower operating costs.
Freight comparison
This has certainly been evident in the freight market where, after significant cutbacks made by British Rail with the closure of private sidings and removal of network services, the use of privately-owned locomotives by Foster Yeoman and ARC in the 1980s for the movement of construction materials had shown that lower costs could be achieved to make rail more competitive.
This showed other rail freight customers that operating their own trains was also a way forward, and so the electricity generator National Power duly obtained the necessary assets. British Nuclear Fuels also decided to set up a new operating entity, Direct Rail Services, using the open access procedure.