Understanding Rail Open Access: A Comprehensive Guide

Rail open access refers to a specific model in the railway industry where operators take on the full commercial risk of running train services. Unlike franchised operations where companies bid for and operate services under a government-defined contract, open access operators buy their own access rights (called “paths”) to run trains on existing infrastructure owned by a third party, such as Network Rail in the UK. This means they decide the routes, frequencies, and fares, bearing all the potential profits and losses. They operate outside the traditional franchise system, offering an alternative approach to providing rail services.

The Nuances of Open Access

Open access is most prevalent in countries where rail infrastructure is separated from train operations. It fosters competition on the tracks, potentially leading to innovation, better services, and different pricing strategies. However, it also brings complexities regarding integration with franchised services, capacity allocation, and the overall coordination of the rail network.

Open access operators purchase track access rights, also called “paths,” from the infrastructure owner. These paths define the times and routes the operator is permitted to run its trains. The infrastructure owner has a duty to fairly allocate these paths, considering the needs of all operators, including those operating under franchises.

Open access is not without its challenges. Capacity constraints on busy rail networks can limit the number of paths available. Furthermore, the success of an open access operator depends on its ability to attract passengers and manage its costs effectively. Integrating open access services with the existing, often franchised, network can also pose logistical and coordination hurdles.

Open Access vs. Franchised Operations

The key difference between open access and franchised operations lies in the commercial risk and responsibility.

• Franchised Operators: These operators bid for the right to run services on specified routes for a set period. The government or a designated agency typically defines the service levels, fares, and investment requirements. The operator’s revenue is often guaranteed or subsidized, reducing their commercial risk.

• Open Access Operators: These operators bear the full commercial risk. They determine their own routes, frequencies, and fares, and their success depends entirely on attracting passengers and managing costs effectively. They receive no direct government subsidy.

Open Access: Benefits and Challenges

Benefits

• Innovation: Open access can stimulate innovation in service offerings, pricing, and customer experience.
• Competition: It can introduce competition on the tracks, potentially driving down fares and improving service quality.
• Increased Capacity: Open access operators may identify and exploit underutilized capacity on the rail network.
• Direct Investment: It can attract private investment into the rail sector, reducing the burden on taxpayers.

Challenges

• Network Integration: Coordinating open access services with franchised services can be complex.
• Capacity Constraints: Limited capacity on busy rail networks can restrict the number of open access operators.
• Commercial Risk: Open access operators bear the full commercial risk, making their business model vulnerable to economic downturns or unexpected events.
• Revenue Abstraction: There is a risk that open access operators may draw passengers away from franchised services, reducing revenue for those operators and potentially impacting the financial viability of the franchise system.

Real-World Examples

Grand Union is a company planning to introduce open access rail services in the UK. Their proposed services would operate on existing infrastructure, competing with franchised operators on certain routes. Their plan to operate with LNER Class 91s and Rail Operations Group Class 93s highlights the investment and operational planning involved in launching an open access service.

Frequently Asked Questions (FAQs)

1. What infrastructure do open access operators run on?

Open access operators run on infrastructure owned by a third party, such as Network Rail in the UK. They do not own the tracks, stations, or signals; they simply purchase the rights to use them.

2. How do open access operators obtain access to the rail network?

They obtain access by buying “paths” from the infrastructure owner. These paths specify the times and routes the operator is allowed to run its trains.

3. Are open access operators subject to franchising?

No, open access operators are not subject to franchising. They operate independently of the franchise system, taking on full commercial risk.

4. What is Network Rail’s role in open access?

Network Rail is the organization that owns and manages most of the fixed assets of the railway network in the UK. It has a duty to fairly allocate paths to all operators, including open access operators and franchised operators.

5. How does trackage rights differ from open access?

Trackage rights are agreements where one railroad obtains access to and provides service over tracks owned by another railroad, with the owning railroad retaining responsibility for operating and maintaining the tracks. Open access, in contrast, involves an operator running independently on infrastructure owned by a separate entity, purchasing paths for their services.

6. Are rail networks typically private or public?

Rail networks can be either private or public, depending on the country. In the US, railways are privately owned and operated, while in the UK, Network Rail is a public sector company.

7. What are the potential drawbacks of open access?

Potential drawbacks include network integration challenges, capacity constraints, commercial risk for operators, and potential revenue abstraction from franchised services.

8. What types of trains do open access operators typically use?

The trains used vary depending on the operator and the route. In the case of Grand Union, they proposed to use LNER Class 91s and Rail Operations Group Class 93s hauling nine-car Mark 4s and a Driving Van Trailer.

9. How do railroads make money?

Railroads make money by charging companies for carrying cargo over their network of rails and railcars or from passenger fares. Open Access Rail Operators rely solely on passenger fares for revenue.

10. What is the role of competition in open access?

Competition is a key driver in open access. The presence of multiple operators can lead to innovation, better services, and different pricing strategies, benefiting passengers.

11. What are the safety regulations for open access operators?

Open access operators are subject to the same stringent safety regulations as other rail operators. They must adhere to all applicable standards and procedures to ensure the safe operation of their services. The Cardinal Rule of Railroading: Always expect a train or equipment to move on any track in any direction at any time!

12. How does open access affect ticketing and fares?

Open access operators typically set their own fares, which may differ from those offered by franchised operators. This can create complexity in ticketing, as passengers may need to purchase separate tickets for different operators. However, some degree of harmonization may be sought to simplify the passenger experience.

13. Can open access improve rail service in rural areas?

Open access could potentially improve rail service in rural areas by providing services where franchised operators are unwilling or unable to operate. However, the commercial viability of such services would need to be carefully assessed.

14. What is the future outlook for open access rail?

The future of open access rail depends on various factors, including government policy, infrastructure capacity, and the commercial success of existing open access operators. It could play an increasingly important role in the rail sector if these factors are favorable.

15. How can research contribute to improving the rail industry?

Research and innovation are crucial for the advancement of the rail industry. Understanding how people learn and interact with complex systems can be used to create engaging and effective training programs for rail workers, improve safety protocols, and optimize network operations. Organizations such as the Games Learning Society contribute to this by exploring the intersection of learning, games, and technology. Visit GamesLearningSociety.org to learn more.