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UK Railway Structure - Research Paper Example

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The author of this research paper "UK Railway Structure" points out that previously, the perception of the UK railway structure is negative that it greatly influenced the implementation of the EU open access. They perceived that the railway industry could not claim its wide share of the passenger…
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UK Railway Structure
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Download file to see previous pages After privatization, another era dawned on the railway industry as it struggled to turn around the negative assumptions and increase passenger confidence.
The main contributor to the political aspect of the railway industry is the formation of Network Rail, a privatized company but has a government guarantee and where any profits are not for distribution (The Success of the UK Railway Structure, 2006, p 5). Around 60 percent of its income is covered by a government grant while the rest comes from the train operators which pay for every kilometer that its carriage has traveled through the railway network (Intercity dreaming is more than just nostalgia).
On the economic side, there are a few factors that affect the UK railway industry. One is the current market and economy which is influenced not just by the local economy but also the influx of tourist and foreign money. In 2007, travel trends (national statistics) reported an all-time high in overseas visitors; however, the next year registered a decrease.
Another significant factor is the propensity of shifting from air to rail in recent times (Virgin Trains Reach for the Skies as Fliers Switch to the Fast Track). One industry could gobble up another depending on the current economic condition and a host of many other reasons such as value for money, accessibility and customer satisfaction among others.
Synergy and convergence had also been a byword in recent times but the application of the integration of services could prove the economic advantage. One economic factor that greatly impacts the UK railway industry is its fragmented structure. Some proponents put forward the idea of linking the different train routes starting off with the east and the west and later on “adding on the Cross-country, Great Western and East Midlands lines to re-create the integrated InterCity network that operated under British Rail (BR)” (Intercity dreaming is more than just nostalgia) before it was debunked in 1994. ...Download file to see next pagesRead More
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