Swot Analysis of Network Rail

Topics: Rail transport, Rail tracks, Locomotive, Public transport / Pages: 7 (1653 words) / Published: Mar 17th, 2010
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 favourable action because Railrack was in such a bad state it could only improve by being taken over.

Network Rail are currently investing £800 million into the railway tracks every to improve and maintain the tracks, in 2006 alone the company spent £3 billion on engineering projects improving stations, track and the efficiency of the railway industry. The company has also used this money to acquire state-of-the-art technology and invest large amounts of money in machinery such as ballast cleaners, the high-output train and track-relaying train.
Spending this amount of money on the railway shows current and potential passengers that the company is very dedicated to maintaining and improving the railway and the services they provide.

Weaknesses:
During the Christmas period of 2007 Network Rail planned maintenance to take place whilst passenger levels would be low with the expectation of the work being complete by New Years Eve. However this maintenance work got delayed and passengers were advised to check travelling schedules before attempting the go to their destination. The delays lasted for a total of 3 days and the service resumed to normal on 2nd January 2008.
These delays heavily affected passengers as well as operating

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