First published on Rail Business Daily on January 13, 2025.
Two hundred years after the birth of the modern railway and rail remains an attractive investment – even in the face of funding challenges.
Managing Director of SLC, Ian Walters, continues to initiate positive and agile approaches to attract private investment into new station and infrastructure projects. He said: “The pandemic hit the levels of continuous growth that we have seen since privatisation on the railway, but it has emerged with a different but undiminished and vital role to communities and the economy.”
The latest ORR figures for passenger growth show that a total of 433 million journeys were made by rail passengers in Great Britain in the latest quarter (1 July to 30 September 2024). This is a nine per cent increase on the 397 million journeys in the same quarter in the previous year and shows passenger usage very close to pre-pandemic levels.
This recovery should give confidence in the continuing role of the railway as a key are for investment, both in new infrastructure and enhanced services. Ian continued: “Rail’s benefit goes beyond taking people from A to B. Railway stations provide opportunities to reimagine how we live and interact with the spaces around us, providing connectivity to economic hubs and leisure activities. By embedding rail as a key transport solution of any placemaking principles supporting development we can increase the value of investments, support growth and create community hubs.”
New stations create the ideal conditions for housing growth and could support councils in England with their housing targets, enabling the government to deliver 1.5 million more homes. For example, Worcestershire Parkway has been a catalyst for housing. Last year, Chancellor Rachel Reeves announced the Government would speed up a new 10,000-home town development next to it.
“As this announcement showed, central to why the railway continues to be investable is its importance to housing and regeneration. We continuously see how new stations and lines bring social, economic and environmental benefits alongside other goals.” added Ian.
SLC works with public and private sector organisations to create a case for, then develop and deliver their infrastructure projects. The company supported the funding, design and delivery of Worcestershire Parkway for Worcestershire County Council. The station, close to the M5 and where two railway lines meet, was strategically picked with housing in mind and to reduce road congestion.
Creating new railway lines is another example of how rail investment continues to contribute to our economy, as the regeneration is often accompanied by new housing projects, retail spaces, and commercial developments, which create transformational change.
The recent reopening of the Northumberland Line will ultimately see six new stations built with connections to Newcastle and beyond. The new line is a lifeline for people in the area and will stimulate and support economic growth, regeneration, and community development by providing new and improved transport links for local people and businesses for future generations.
In addition to SLC’s involvement on the Northumberland Line for Northumberland County Council, Ian was also involved in the revolutionary E-Rail concept being used to fund the new stations along the Northumberland Line. Ian adds: “Northumberland Line is particularly interesting because early on in scheme planning land value uplift was identified and captured, supporting the funding of the new railway stations by getting landowners who benefit from station initiated development to agree to contribute some of the value created to the project. This turns an economic benefit into a financial one which you can use to fund the infrastructure.”
The railway, two hundred years old, continues to be important to society, and investment in it creates a legacy that continues to bring lasting benefits. However, we must continue to create an environment that encourages public and private sector entities to work together to maximise its full investment potential.
If you would like to discuss funding solutions for railway projects, contact enquiries@slcrail.com.
