The licensing regime

The operation of railway assets and the provision of railway passenger and freight train services are of national importance and as such are subject to a range of regulatory requirements designed to safeguard the public interest.

Railways Act 1993 licences

Section 6 of the Railways Act 1993 (the Act) makes it an offence to act as the operator of a railway asset other than a passenger train or freight train within the scope of the Railway (Licensing of Railway Undertakings) Regulations 2005 (the Regulations) without holding a licence or a licence exemption granted under the Act. This applies to all railway assets regardless of the scale of operations, and includes operators of privately owned freight terminals and other minor networks.

An "operator" is defined as "the person having the management of that railway asset for the time being". For instance, in the case of a train, this would normally be the person from whom the driver takes instructions (that is management instructions rather than signalling instructions).

There are five different standard licences; one for each category of railway asset (see Licence conditions):

A network licence authorises a person to be the operator of a network; to be the operator of a train being used on a network for any purpose comprised in the operation of that network; and to be the operator of a train being used on a network for a purpose preparatory or incidental to, or consequential on, using a train for any purpose comprised in the operation of that network. Network Rail holds a bespoke network licence.

A passenger licence authorises a person to be the operator of a train being used on a network: for the purpose of carrying passengers by railway; for a purpose preparatory or incidental to, or consequential, on using a train for that purpose; and for the purpose of assisting other operators of railway assets.

A non-passenger train operator's licence authorises a person to be the operator of a train being used on a network: otherwise than for the purpose of carrying passengers for hire or reward; for a purpose preparatory or incidental to, or consequential on, using a train for that purpose; and for the purpose of assisting other operators of railway assets. This is the type of licence held by some rail maintenance and renewal companies.

A station licence authorises a person to operate a specified station.

A light maintenance depot licence authorises a person to be the operator of a specified light maintenance depot (including any network, insofar as a light maintenance depot is also a network); and to be the operator of a train being used on a network for a purpose preparatory or incidental to, or consequential on, the provision of light maintenance services at any light maintenance depot of which the person is authorised by licence to be the operator.