The Freight Transport Association has welcomed the publication of the Office of Rail Regulation's (ORR) latest assessment of Network Rail's Strategic Business Plan (SBP).
The SBP is the document that will determine how the rail infrastructure operator plans to deliver its services and how much funding it will require.  ORR's role is to ensure this document is realistic and sets appropriate targets.
Two key criticisms are made by ORR of Network Rail's current draft SBP.  Firstly, the assessment states that 'we consider that Network Rail has significantly overstated its revenue requirements for the next control period (2009-2014).'
Secondly, ORR says, 'Network Rail has significantly underestimated the scope for it to improve its efficiency in the next control period.  Based on our analysis to date, Network Rail may be at least 30 per cent less efficient than the average of other European rail infrastructure managers.'
Both these factors have implications for freight operators in terms of the level of Track Access Charges operators will have to pay to use the network.
FTA's Head of Rail Freight Policy, Christopher Snelling commented, 'We fully support the ORR's analysis of the business plan.  Network Rail has a long way to go to match the efficiency standards of rail infrastructure operators in other countries.  It can and must do a lot more.  If rail freight is to remain competitive with road, it is imperative that rail reduces its costs.'