Railway industry structure

Following privatisation, British Rail was divided into two main elements. In outline, the first element consisting of the national rail network (track, signalling, bridges, tunnels, stations and depots) and the second being the operating companies whose trains run on that network. In simple regulatory terms, ORR is responsible for regulating the national rail network operator (Network Rail), while the DfT looks after passenger- and train-related matters.

Train operating companies, both passenger and freight, run the trains. However, in many cases the actual train is leased from a rolling stock company.

Railway stations are owned by the network operator, most being leased to the main train operating company which is the main user of that station. However, Network Rail retains the operation of the main passenger terminals, such as Edinburgh Waverley, London Waterloo and London Kings Cross. A detailed description of the control and operation of stations is covered in the Licensing and Access section of this website.

Government involvement with the rail industry is through the Department for Transport and Passenger Transport Authorities for their respective local councils.