UK rail operators are finding it challenging to make long-term tech investments due to ongoing uncertainties.
- Delays in reforming the rail network are a significant concern for those looking to upgrade infrastructure.
- Tracsis CEO highlights the difficulty in planning amidst potential public ownership changes.
- Legislation delays add to the anxiety of where investments should be made.
- Despite challenges, there is potential for growth in digital solutions within the rail industry.
UK rail operators are currently navigating a difficult landscape, grappling with decisions about long-term technological investments. These challenges are largely due to ongoing uncertainties surrounding the future governance of the nation’s rail system. Delays in implementing proposed reforms are impacting the ability of operators to commit to significant upgrades, as expressed by Chris Barnes, CEO of Tracsis.
Barnes points to the hesitation caused by the possibility of expanded public ownership of the rail network, which has left operators unsure of how to proceed with investing in critical infrastructure. He conveyed that the lack of clarity in how the rail system will be governed is causing significant frustration. According to Barnes, ‘We’ve heard that legislation will be delayed again — that’s the biggest frustration. At least the Labour government is putting a plan together — it would be nice if they could just accelerate that.’
There is evident apprehension as operators ‘are very nervous about where they spend their money,’ Barnes added. He mentioned the reliance on outdated technology from the 1980s, stressing the importance of providing a convincing benefits case to secure necessary funding. Government-owned train operators seem better positioned to find the money, but they still face hurdles in making definitive spending decisions without clear governance guidance.
The ongoing discussions about the Passenger Railway Services (Public Ownership) Bill amplify these concerns. The bill, which proposes transferring passenger service operations to public ownership, aims to save taxpayers up to £150 million annually. However, the prolonged legislative process has created uncertainty, hindering immediate investment plans for operators.
Despite these challenges, there are opportunities on the horizon. The government has announced funding aimed at rolling out tap-in tap-out technology across more stations, indicating an avenue for advancements in fare collection systems. For a company like Tracsis, known for its pay-as-you-go ticketing solutions, such government initiatives present potential growth prospects.
Tracsis has been impacted by the current environment, reporting a slight drop in sales due to pre-election activity restrictions. Yet, amidst these setbacks, the company remains optimistic about the long-term benefits of digital transformation within the industry. Their revenue saw a minor decline, but they acknowledge significant tailwinds supporting future innovation.
Navigating the current complexities presents challenges, but the path to modernisation remains promising for the rail industry.
