Engineering news
Network Rail's net debt has risen to more than £30.6 billion with the infrastructure company admitting it is failing to meet punctuality targets.
The railway infrastructure firm said performance was “still at high levels by historic standards” but added performance had “fallen behind our targets as we struggle to get more and more out of an ever-overloaded network”.
Announcing its half-year results for the period April-September 2013, Network Rail said its net debt was up from nearly £30.36 billion at the end of the 2012/13 financial year to more than £30.61 billion.
For April-September 2013, profit after tax was £870 million compared with £563 million for the same period last year with the increase being due to tax treatment and derivative gains.
Revenue for the period April-September 2013 was nearly £3.27 billion compared with nearly £3.17 billion in the same period last year, while operating profit was just under £1.2 billion compared with nearly £1.23 billion in April-September 2012.
The company said it was investing record amounts in the railways, with £2.74 billion, or £15 million per day. This is 33% up on the same period last year and 53% higher than four years ago.
Listing some of its achievements, Network Rail highlighted improvements at King's Cross station in London, at Reading station in Berkshire, the Borders Railways project, and electrification and signalling schemes.
The company also mentioned new platforms, lifts, information systems, concourses, footbridges and track.
Group finance director Patrick Butcher said: “The railway continues to experience tremendous growth and we are responding to that demand through the biggest sustained investment programme since Victorian times.
“With a million more trains and half a billion more passengers than 10 years ago our railways are all but full. We are squeezing all we can out of the existing network and new railway lines, such as HS2, must be built to deliver the step-change in capacity that Britain's vital rail arteries need.”
Meanwhile, legislation to kick-start construction of the controversial HS2 high speed railway line linking London to the North has been granted royal assent.
MPs were informed that the High Speed Rail (Preparation) Act 2013 has been formally agreed by the Queen, with the legislation allowing the government to spend money planning the HS2 route in detail and buying up property from residents and businesses along the proposed track.
The project, estimated to cost around £50 billion, is intended to link London to Birmingham by 2026, with two branches then heading to Manchester and Leeds, via Sheffield, being built by 2033.
HS2 Ltd chief executive Alison Munro said: “The passage of the Paving Bill is a critical milestone in the delivery of the programme, ahead of the deposit of the Hybrid Bill next week.
“We can now continue to take forward the early activities for delivery of HS2, such as early ground investigation works. We will also be able to start working with the private sector on developing skills and training in preparation for the delivery of HS2.”