UK rail industry reaches key political junction

a London North Eastern Railway train approaches King's Cross rail station in London. (File/AFP)
Updated 08 September 2019
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UK rail industry reaches key political junction

  • “Better transport links across the country will be a crucial part” of rebalancing Britain’s London-centric economy, says minister

LONDON: Britain’s historic rail industry is destined for the biggest shakeup in decades that could end in renationalization and significant investment to vastly improve services amid costly fares and delays.
Full state-control of the industry is a distinct possibility should a looming general election triggered by Brexit turmoil result in victory for the main opposition Labour party.
At the same time, British Prime Minister Boris Johnson is awaiting the conclusions of a passenger-focused review of the UK’s entire rail sector described by the Conservative government as “the most significant” since the Tories privatised British Rail in the mid-1990s.
“It isn’t good enough that so many commuters spend their mornings staring at a delayed sign at their train platform,” British finance minister Sajid Javid said last week.
Delivering government spending plans for the next year, Javid added that “better transport links across the country will be a crucial part” of rebalancing Britain’s London-centric economy.
Johnson has meanwhile ordered a separate review into the High Speed 2 (HS2) railway linking London with other major English cities, but which has been beset by soaring build costs and massive delays.
Both reviews will deliver their findings by the end of the year, by which time Labour leader Jeremy Corbyn could be prime minister.
Full nationalization of the rail industry that once helped to drive the Industrial Revolution “is undoubtedly a vote winner for Corbyn and Labour,” said Gwilym David Blunt, lecturer in international politics at City, University of London.
While Britain’s rail tracks remain in state hands, the trains are run by mostly private companies enjoying large government subsidies.
“The railways were once a point of pride in this country and now they are absolutely dire compared to the rest of Europe,” Blunt told AFP.
“UK trains are crowded, expensive, often delayed, and of extremely old stock. Voters are angry at receiving little value for money.”
Rail passenger journeys in Britain have hit a record annual high at almost 1.76 billion, fueled by commuters who have no choice but to take the train to work.
The government’s “root and branch” review of the rail sector, including improvements to freight travel, is chaired by Keith Williams, a former chief executive of British Airways.
Presenting an interim update, Williams noted that UK customer satisfaction with Britain’s train services is at a decade-low.
Williams’ review “could be used to bolster the case for taking the railways back into public hands,” said Blunt.
“However, if the review is pro-private ownership it won’t necessarily stop renationalization.”
He added that “the most plausible strategy” for Corbyn would be to wait for the franchises running the train routes “to expire and take them back into public ownership.”
Another headache lying ahead is HS2. The Department for Transport last week said that the cost of the project was set to soar by more than £20 billion ($24 billion, 22 billion euros) to up to £88 billion owing to the complexity of building works.
And rather than its first phase opening in 2026, trains now face not running until 2031.
The initial phase of HS2 — Britain’s first new railway north of London in 150 years — plans to connect the capital in southeast England with the country’s second biggest city Birmingham in the Midlands.
The second phase, which the government has said may now not open until 2040, is for trains to travel further north to Manchester and Leeds.
Another major new railway line — the Crossrail project offering an additional fast direct route between Heathrow airport and central London — has also been hit by significant delays and surging costs.
Due to have opened last December, Crossrail is now not expected to begin services until 2021, lifting construction costs by £3.0 billion to about £18 billion.
To be known officially as the Elizabeth Line in honor of Britain’s queen, Crossrail will serve also towns to the east and west of the capital.


Closing Bell: Saudi main index closes higher at 10,596 

Updated 23 December 2025
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Closing Bell: Saudi main index closes higher at 10,596 

RIYADH: Saudi equities closed higher on Tuesday, with the Tadawul All Share Index rising 43.59 points, or 0.41 percent, to finish at 10,595.85, supported by broad-based buying and strength in select mid-cap stocks. 

Market breadth was firmly positive, with 170 stocks advancing against 90 decliners, while trading activity saw 161.96 million shares change hands, generating a total value of SR3.39 billion. 

Meanwhile, the MT30 Index closed higher, gaining 6.52 points, or 0.47 percent, to 1,399.11, while the Nomu Parallel Market Index edged marginally lower, slipping 3.33 points, or 0.01 percent, to 23,267.77. 

Among the session’s top gainers, Al Masar Al Shamil Education Co. surged 9.99 percent to close at SR26.20, while Saudi Cable Co. jumped 9.98 percent to SR147.70.  
Cherry Trading Co. rose 4.18 percent to SR25.44, and United Carton Industries Co. advanced 4.09 percent to SR26.46. 

Al Yamamah Steel Industries Co. also posted solid gains, climbing 4.07 percent to end at SR32.70.  

On the downside, Emaar The Economic City led losses, slipping 3.55 percent to SR10.32, followed by Derayah REIT Fund, which fell 2.92 percent to SR5.31. 

Derayah Financial Co. declined 2.13 percent to SR26.62, while United International Holding Co. retreated 1.96 percent to SR155.20, and Gulf Union Alahlia Cooperative Insurance Co. eased 1.92 percent to SR10.70.  

On the announcements front, Red Sea International Co. said it signed a SR202.8 million contract with Webuild S.P.A. to provide integrated facilities management services for the Trojena project at Neom. 

The agreement covers operations and maintenance for the project’s Main Camp and Spike Camp, including accommodation and housekeeping, catering, security, IT and communications, utilities, waste management, fire safety and emergency response, as well as other supporting services.  

The contract runs for two years, with the financial impact expected to begin in the first quarter of 2026. Shares of Red Sea International closed up 0.99 percent at SR34.74. 

Al Moammar Information Systems Co. disclosed that it received an award notification from Humain to design and build a data center dedicated to artificial intelligence technologies, with a total value exceeding 155 percent of the company’s 2024 revenue, inclusive of VAT. 

The contract is expected to be formally signed in February 2026, underscoring the scale of the project and its potential impact on the company’s future revenues.  

MIS shares ended the session 2.82 percent higher at SR156.70, reflecting positive investor sentiment following the announcement.