ORR rail network Investment Framework review response from the Railway Industry Association
04 June 2025 1.
INTRODUCTION
1.1.
This paper provides the Railway Industry Association’s response to the questions raised in the Office for Rail and Road’s (ORR) call for evidence for their review of the Investment Framework. The response draws on a roundtable discussion with RIA members and the ORR and RIA’s Future of Rail: Investment conference, both held in May. It also draws on RIA’s 2024 Manifesto deep dive into leveraging private investment and 2023 report on the topic.
2.
ABOUT RIA
2.1.
The Railway Industry Association (RIA) champions a dynamic UK rail supply sector. We help to grow a sustainable, and high-performing railway as well as promoting UK rail expertise and products to international markets. RIA has over 400 companies in membership, which is active across the whole of railway supply, covering a diverse range of products and services and including both multi-national companies and SMEs (60% by number).
2.2.
The rail industry is a foundation sector for the UK’s economy which supports sustainable investment and jobs in towns and communities across the UK. The sector contributes more than £41 billion in economic growth and £14 billion in tax revenue each year, as well as employing 640,000 people. It is also a vital industry for the UK’s economic recovery, supporting green investment and hobs in towns and communities across the UK; for every £1 spent in rail, £2.50 is generated in the wider economy.
3.
HOW EFFECTIVE DO STAKEHOLDERS FIND THE CURRENT INVESTMENT FRAMEWORK?
3.1.
Whilst the current Investment Framework (IF) seeks to be effective, it is not sufficient to enable, guide, or encourage private investment in UK rail infrastructure. The IF is, by design, primarily focused on contractual arrangements, but does not serve as a usable route map for potential investors in the rail network.
3.2.
Rather than acting as a gateway into the rail sector, the IF functions is currently more of a back-end process document, outlining the rules for interfaces with Network Rail infrastructure. What is missing is a high-level policy rationale for private investment and a structured, accessible pathway for new entrants. The Government’s role should switch from that of a ‘gatekeeper’ to a ‘facilitator’ for private investment, providing investors and suppliers with a playbook and ongoing practical support that shows how and where private investment can and will be used in rail. There is little practical guidance on initiating or managing investments from concept to delivery.
3.3.
For example, there is no clear mapping of how a third-party scheme is initiated, assessed, approved, or delivered. There are numerous agreements, including Investment Delivery Agreement (IDA), Asset Protection Agreement (APA), Basic Asset Protection Agreement (BAPA),1 that must be understood, but little explanation of the wider process in which they are applied. New entrants face a steep learning curve and risk abandoning projects early due to lack of visibility and clarity. 1/7