INVESTMENT in the British rail network rose by 30% in 1997-98 compared to the previous year, according to the Railtrack annual results presented on June 3. In the year to March 31 spending on asset renewal and network enhancement rose steeply to £1 254m, the highest rate in real terms since the mid-1950s.
Chief Executive Graham Corbett says investment will increase by a further 16% to £1 450m in 1998-99, with over one-third of this going on enhancements rather than renewals. He notes that ’rail freight is going extremely well’, and with rising aspirations of passenger franchisees ’we are beginning to run out of capacity.’
In 1997-98 Railtrack revenues increased 1% to £2 467m, while operating costs fell 1% to £2 087m. Profit increased by 12% to £388m before tax, although the Labour government’s privatisation windfall tax cut the after-tax profit by 32% to £198m. Railtrack shares climbed steeply after the results announcement to peak at £14·57 in mid-June. o
