Yahoo Finance Heathrow rail link set to be first entirely backed by private cash
The first entirely privately-funded railway line looks likely to run from Heathrow airport after the Government launched broader plans to invite bids for major new schemes.
Private companies and local authorities have been invited to put bids in for the construction of a rail link which will run south out of Heathrow airport.
The Department for Transport said the scheme would be the first railway line entirely funded by private means. Other projects such as HS1 and the Channel Tunnel were part-funded with private cash. The DfT said there were already a number of consortia looking to construct the southern link to Heathrow.
At present, many passengers based south of the airport have to travel into London Paddington and back out again because there is no direct rail link to the airport from the south. The exact location of the line will be determined once the Government selects its chosen scheme.
The Government is also inviting bids related to other schemes, including reinstating closed branch lines.
The decision to open up rail projects to private funding comes after the DfT has had to scale back a host of upgrade schemes due to projects running over budget. The Great Western electrification scheme, for instance, will now stop at Cardiff rather than running all the way to Swansea.
Transport Secretary Chris Grayling said allowing the private sector to fund new railway lines would ensure further investment into the railway beyond the £47bn the Government has already committed to spend in the next five-year funding period, which starts in April 2019.
Mr Grayling had previously mentioned the possibility of private cash helping to fund southern access to Heathrow at a Transport Select Committee hearing in February.
George Bathurst, the proponent behind the privately-funded Windsor Rail Link scheme, which includes a southern link to Heathrow, welcomed the Government tender.
He said his scheme had already passed some regulatory hurdles within Network Rail and therefore was closer to being a viable option.
Heathrow’s Emma Gilthorpe, who is overseeing the airport’s expansion project, said the Government’s decision to invite private funding for the rail link was positive.
“New public transport infrastructure such as the Elizabeth Line, HS2, Western Rail Access, Southern Rail Access and upgrades to the Piccadilly Line will treble rail capacity to Heathrow by 2040 and enable 30m more passengers to use public transport, helping us take cars off the road and improving local air quality for our neighbours,” she said.
The Government is expecting initial proposals to be submitted to the DfT in June and July and expects to provide an initial response to any proposals submitted by the autumn.
