Swot Analysis of Network Rail Essay

1666 Words Mar 5th, 2010 7 Pages
SWOT Analysis

Strengths:
Network Rail took over ownership by buying Railtrack plc, which was in railway administration, from the Railtrack Group plc for £500 million in 2002. Railtrack had become subject to broad-based and persistent criticism, notably over cost escalations and delays with the West Coast Main Line modernisation and the circumstances surrounding accidents at Southall (1997), Ladbroke Grove (1999) and Hatfield (2000). After these incidents Railtrack’s cost spiralled out of control, to remedy this situation which would ultimately lend to the company collapsing and being purchased by the government. By purchasing Railtrack when the company was being heavily criticised and by renaming it Network Rail it was seen as a
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This is an important safety improvement for the railway.

• Upgrading London’s transport network - Plans to upgrade the Thameslink route – A vital north-south artery through London – are progressing and the company plans to build world class stations in the UK’s capital.

• Changing the face of Scotland's railway - Plans to re-introduce the railway line between Airdrie and Bathgate. This is in addition to the redevelopment of Edinburgh Waverley station which is already underway

Network Rail is also planning to have a large programme of investment for the London 2012 Olympic Games. By raising the fares on train tickets Network rail have the potential to have an increased net profit at the end of 2008. If the company figures show more profit than the previous this means the company has more money to invest into the railways.

Threats:
The threats that Network Rail face are fines from the Office of Rail Regulation (ORR) for the delays to train services over the Christmas period. Network Rail have already incurred 2 fines from the ORR £2.4m during Christmas in 2006 following signalling problems at Portsmouth and a record £14m for engineering overrunning during the New Year of 2008. By not meeting the standards of the ORR Network Rail will continue to incur fines, by having to pay fines costing millions of pounds they are losing money which they could use to invest back into the railways.
Another threat which Network Rail faces is the threat of passengers
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