Network Raillags behindEuro firms

The “efficiency gap” between NR and the rest of Europe is 34 to 40 per cent, the Office of Rail Regulation (ORR) said.

The carrying out of “possessions” – when NR takes over the track for engineering work – is one of the areas where the company fares less well than others in Europe, the ORR said.

ORR chief executive Bill Emery said: “As NR is a national monopoly, we benchmark the company against its international counterparts. Our work confirms that there is a significant efficiency gap.”

The European comparison was part of the ORR’s assessment of NR’s finances and efficiency published yesterday which showed that NR made a 3.6 per cent efficiency improvement in its operating, maintenance and renewals work during 2009-10 compared with 2008-09.

NR must make a further 18 per cent of efficiency savings over the next four years to meet ORR-set targets.

NR spent 6.5bn to operate and invest in the network in 2009-10, 800m less than ORR assumed would be spent.