What is the difference between Network Rail and GTR?

[tilly8]

I am slightly confused so apologies for the possible stupid question, how does Network Rail and GTR differ and do they work together?

 

[py_megapixel]

Ultra-simplified explanation:

Network Rail is a government-controlled company responsible for maintaining the tracks, signalling and other physical infrastructure on the railway.

GTR (Govia Thameslink Railway) are one of about 20 so-called 'TOCs'* in England. They have an agreement with Network Rail which gives them rights to run trains over those tracks, and are responsible for running trains in accordance with their contract with the Department for Transport. They are also responsible for the day-to-day running of most of the stations on their network. GTR owns the brands Southern, Thameslink, Gatwick Express and Great Northern.

Network Rail and the TOCs work in partnership with each other, but they have fundementally different functions.

*(TOC stands for Train Operating Company)

 

[Fawkes Cat]

Welcome to the forum.

As there are an awful lot of abbreviations knocking around at the moment, please may I check - do you mean (as written) 'GTR', a (current) train operating company, or 'GBR', short for 'Great British Railways' , am organisation which will soon replace (among other things) Network Rail?

 

[Dr Hoo]

Welcome to the forum.

As an easy first explanation: Network Rail owns and operates the 'fixed stuff' - track, signals, electric power supply and so on.

GTR is one of a number of organisations that operates the 'moving stuff' - trains and also provides most passenger interfaces in terms of staff, ticket facilities on stations and so forth.

And yes, both organisations work together intimately every day, all the time. A railway system requires this level of co-operation between staff across many functions.

 

[tilly8]

Thank you both for responding, yes it's Govia Thameslink Railway

 

[LNW-GW Joint]

It might be worth adding that Network Rail operates on 5-year plans and budgets agreed with ORR (Office of Rail and Road) which is the industry Regulator.
Their funding and priorities are essentially set by government via DfT and ORR, and they are government-owned.
NR collects a major part of its revenue (access charges) from the Train Operating Companies, of which GTR is one.

GTR, like most train operators, was a DfT franchise operation until revenues were hit by Covid, and is now on a short-term service contract with DfT pending the creation of Great British Railways (GBR) later this year.
GTR is a private company, owned by the UK's Go Ahead group and France/Canada's Keolis.
They pay NR to operate the infrastructure on its service network, and they work very closely with NR.

 

[Minstral25]

It might be worth adding that Network Rail operates on 5-year plans and budgets agreed with ORR (Office of Rail and Road) which is the industry Regulator.
Their funding and priorities are essentially set by government via DfT and ORR, and they are government-owned.
NR collects a major part of its revenue (access charges) from the Train Operating Companies, of which GTR is one.

GTR, like most train operators, was a DfT franchise operation until revenues were hit by Covid, and is now on a short-term service contract with DfT pending the creation of Great British Railways (GBR) later this year.
GTR is a private company, owned by the UK's Go Ahead group and France/Canada's Keolis.
They pay NR to operate the infrastructure on its service network, and they work very closely with NR.

I don't think GTR can be described as a Franchise as they have very little control over strategy which is handled by DfT.

GTR has always been a Management (Service) contract since inception in 2014. So the "short Term" recent contract is just more of the same.

 

[yorkie]

It is technically still a franchise, albeit one that doesn't give GTR a lot of freedom.

 

[Minstral25]

It is technically still a franchise, albeit one that doesn't give GTR a lot of freedom.

Yes I agree, however it is a grey area as in reality it has been purely a Management Contract. GTR provides services to the detailed specification of DfT and need permission to change anything, whereas a Franchise would be expected to be able to vary the specification within limits and take actions to change the service.

 

[JamesT]

Yes I agree, however it is a grey area as in reality it has been purely a Management Contract. GTR provides services to the detailed specification of DfT and need permission to change anything, whereas a Franchise would be expected to be able to vary the specification within limits and take actions to change the service.

As they don't carry revenue risk, would it be more accurate to describe them as a concession akin to London Overground?

 

[LNW-GW Joint]

I did say "was a DfT franchise", and I thought it best not to go into Covid EMA/ERMAs.
GTR's current DfT contract (on ERMA terms) is currently set to expire on 31 March 2022.
It was certainly originally let in 2014 as a DfT franchise (on management contract terms).