The Office of Rail and Road (ORR) is set to overhaul its investment guidance after a review revealed a strong private sector appetite to invest in the rail network, despite significant barriers holding back the market. The move is part of a government-led drive to boost economic growth by encouraging private capital.
Following a request from HM Treasury, the ORR launched a “deep dive review” of its Rail Network Investment Framework (RNIF) in Spring 2025, according to a blog on its website by Nicola Machado, Head of Capital Investments. This framework is the core guidance for private investors and other third parties looking to fund and deliver infrastructure projects on Network Rail’s assets.
The review, which included direct engagement with key industry stakeholders like Rock Rail, Siemens Mobility, Porterbrook, and High Speed 1, found a strong desire to invest in the rail sector. However, it also identified persistent obstacles that are hindering new projects.
The key barriers highlighted in the report include:
- A lack of clear government policy on where private capital is actively encouraged.
- Limited visibility of a long-term project pipeline, making it difficult for investors to plan with confidence.
- The absence of a well-established commercial model for rail investment, unlike in sectors such as energy.
- Complex delivery pathways with uncertainty surrounding planning, approvals, and interfaces with key partners.
The ORR has now moved into a second phase of work, focused on updating the investment framework. Over the coming months, the regulator will be working to clarify how risk is allocated, expand guidance on investing in specific asset types, and make the investment journey clearer and more accessible.
Nicola Machado, ORR’s Head of Capital Investments, who wrote the blog post, stated: “The ORR is committed to working collaboratively with government and industry to ensure that private investment can play a significant part in the future of Britain’s railways.”
The ORR has hired an independent consultant to review the Industry Risk and Network Rail Fee Funds to ensure they are fair and not acting as a barrier to investment. An updated version of the framework is expected to be published by November 2025, with the goal of enabling the next generation of rail projects. The outcome of the review has been shared with HM Treasury to help shape the government’s wider investment and growth agenda.
If you’d like to be involved in the next phase of this work, or just want to learn more about what the ORR is doing, email investmentframework@orr.gov.uk
