First Rail has released a report highlighting the performance and potential of open access rail operators in the UK. The document reviews 25 years of open access services, including the contributions of Hull Trains and Lumo, and outlines future opportunities for the model to expand its reach across the network.
Economic impact of open access
According to the report, open access services have contributed to economic growth, job creation, and increased passenger numbers. For instance, since its launch in 2021, Lumo has generated 6.2 million additional journeys on the East Coast Mainline, exceeding the number of passengers it directly carried. By complementing nationally contracted operators, open access services are noted for attracting passengers from other modes of transport, such as cars and planes, to rail.
The report also examines successful examples from other countries, such as Italo's high-speed services in Italy, which operate alongside public sector rail operators.
Future routes and investment
The report identifies several future destinations that could benefit from open access services. Confirmed new routes include connections between London and South Wales to Carmarthen, and London to Stirling in Scotland. Additional proposed routes awaiting regulatory approval include London to Torbay, Rochdale via Manchester Victoria, and Sheffield via Worksop.
Further expansion could unlock significant private sector investment, particularly in UK manufacturing. A recent agreement for a EUR 592 million investment in new trains for Lumo and Hull Trains, produced at Hitachi Rail's Newton Aycliffe factory, is expected to secure jobs and maintain a skilled workforce. If additional routes gain approval by late 2025, the report estimates a potential further investment of EUR 544 million in new rolling stock.
Recommendations for the industry
First Rail's report makes four recommendations to support open access growth:
- Regulatory Independence: Emphasizing the need for an independent regulator to oversee access, economics, and performance across the rail network.
- Accelerated Approval Processes: Ensuring faster approval for open access bids to meet market demands and environmental objectives.
- Environmental Focus: Encouraging modal shifts to rail to reduce the environmental impact of travel.
- Private Investment: Unlocking further investment opportunities in infrastructure, rolling stock, and job creation.
Industry context
Open access services are positioned as a vital component of the UK’s rail industry, contributing to competition and offering passengers more options. By providing services at alternative times and to under-served destinations, open access operators aim to grow the overall rail market.
The report comes shortly after government officials visited the Newton Aycliffe factory to discuss investments in new trains, demonstrating ongoing collaboration between public and private sectors to support the rail industry.