Rail Privatisation: Financial Implications

INTRODUCTION

My aim in this brief paper is not to argue the case for or against privatisation, but rather to comment on the likely financial implications of some of the options. Nevertheless, it does not seem possible to do this without briefly reviewing the advantages and disadvantages that are claimed to flow hm privatisation. I will then consider the existing organisation and financial performance of British Rail. Following this, I will discuss alternative ways of achieving the necessary level of profitability for private investors to be interested in owning and operating the railway system.