ORR urges government to clarify rail infrastructure investment strategy amid concerns over private sector uncertainty

Credit: The Office of Rail and Road (ORR)

The Office of Rail and Road (ORR) has urged the government to clarify the strategic direction for rail infrastructure upgrades, as private sector investors are deterred by the lack of clear policy.

This call is part of the regulator’s deep dive review launched in spring 2025, which identified limited visibility of a long-term investment pipeline, the absence of a well-established commercial model for rail investment, and complex delivery pathways as key obstacles holding back private investment.

The review found there is a “strong appetite” among investors to put money into the rail sector. Its findings have been shared with HM Treasury to help shape government investment and growth plans. The ORR stated the review is guiding its efforts to identify improvements that will have the greatest impact.

Blake Richmond, COO of Resonate Group, said: “We’re watching AI and data-driven technologies transform industries, so rail and transport should be no different, utilising automation to speed up decision-making. Placing tech as a central part of transport policy should be a priority, boosting the efficiency of the UK’s transport network to connect communities across the country, powering regional economic growth and creating jobs.”

He added: “Modern transport systems are deeply interconnected, requiring data-driven tech to tackle challenges such as disruption management, possession planning and automated route control. Investment in technology can deliver the ROI that will benefit operators, investors and ultimately passengers, who can benefit from reduced journey times and a more efficient service.”

The ORR will now enter Phase 2 of its review, focusing on updating the Rail Network Investment Framework (RNIF). This will include a review of standard contractual agreements used in third-party projects, examining how risk is allocated and managed between parties. It will also expand guidance on investing in specific asset types, make the investment process clearer and more accessible, and revisit how value thresholds apply to different projects.

An updated version of the RNIF is expected to be published by November 2025.