Type | Limited liability company |
---|---|
Industry | Property development |
Founded | 1994 |
Headquarters | , England, UK |
Owners | Department for Transport |
Website | lcrproperty |
London and Continental Railways (LCR) is a property development company owned by the Government of the United Kingdom for developing former railway land. The company was originally established in 1994 as a private consortium to own European Passenger Services and build the Channel Tunnel Rail Link (CTRL) under a contract agreed with the government.
After the full length of the CTRL was opened and rebranded as High Speed 1 (HS1) in late 2007, the company subsequently ran into financial difficulties and was nationalised in June 2009.
LCR was established in 1994 during the privatisation of British Rail. LCR bid for and won the contract from the UK government in 1996 to build and operate the Channel Tunnel Rail Link between London and the Channel Tunnel, under the terms of the Channel Tunnel Rail Link Act 1996. [1] [2] As part of this deal European Passenger Services (EPS) and Union Railways, companies owned by British Rail, were transferred to LCR ownership, as well as key pieces of railway infrastructure including St Pancras railway station and the King's Cross Central lands nearby.
EPS was the British arm of the joint Eurostar operation, along with SNCF in France and SNCB in Belgium. LCR renamed EPS as Eurostar (UK) Ltd (EUKL). Union Railways had been developing plans for the CTRL since before the opening of the Channel Tunnel and became the construction company of the CTRL under the ownership of LCR. To aid the construction process, Union Railways was empowered by the British government to make use of compulsory purchase orders as a reserve measure for land acquisition. [3]
The original shareholders of LCR were Bechtel (19%), Warburg (19%), Virgin Group (18%), National Express (17.5%), SNCF (8.5%), London Electricity (8.5%), Arup (3.5%), Halcrow (3%) and Systra (3%). [4] As part of the 1996 contract, LCR was to finance and construct the CTRL itself, funding the project from income received from the Eurostar operation. LCR also planned to raise additional capital from a partial stock market flotation once the project was underway. [5] [6]
In January 1998, LCR ran into major financial difficulties after finding that income from its share of the Eurostar operation was not at the level it expected. [7] [8] It blamed the lower level of passenger growth on disruption caused by a November 1996 fire in the Channel Tunnel and the growth of competing low-cost airlines. LCR's planned flotation, which had already been delayed, was aborted. With the entire CTRL project in doubt, LCR appealed to the British government for help. [9] [10]
To enable the project to continue, LCR was allowed to issue £3.7bn of private bonds, which the government pledged to guarantee. [11] In return the government gained a percentage of future profits from the operation of the CTRL once completed, as well as a golden share in LCR. As part of the deal LCR was forced to appoint a management contract for EUKL. This was won by Inter-Capital and Regional Rail (ICRR), a consortium of National Express (40%), SNCF (35%), SNCB (15%) and British Airways (10%). The contract was to run from 1998 until 2010. [12] [13]
Following the access to finance, LCR was able to begin the CTRL project. Rail Link Engineering (RLE) was appointed to design and engineer the CTRL. RLE was a group made up of the four engineering companies involved in LCR; Bechtel (50%), Arup (19%), Halcrow (17%) and Systra (14%). [14] In addition, Railtrack was brought into the project by the government and agreed to purchase the CTRL from LCR once completed. [15]
To reduce the risks surrounding the project, the construction was split into two phases. Section 1, from the Channel Tunnel to Fawkham Junction in Kent, was to be managed by Union Railways (South) under the control of Railtrack, who committed to purchase Section 1 from LCR once complete for the cost of its construction. The more complex part, Section 2 running from Fawkham Junction to London St Pancras was to be managed by Union Railways (North). Railtrack also purchased an option, to be exercised by 2003, to control Union Railways (North) during construction and acquire Section 2 once complete. It was intended that with the completed full-length CTRL then in Railtrack's future ownership, EUKL would then pay track access charges to use the line. [16]
Following a series of rail accidents and a subsequent share price collapse, Railtrack announced in April 2001 that it would not take up its option to project manage and then purchase Section 2. Instead, Section 2 would be owned on completion by LCR, with Railtrack owning Section 1 as well as being responsible for operating both sections. [17] [18] [19]
In October 2001, Railtrack was placed into "railway administration" with debts of £7.1bn and in October 2002 Railtrack's assets were transferred to a newly created "not for dividend" company called Network Rail, whose debts would be guaranteed by the government. [20] [21] LCR re-purchased Railtrack's interest in Section 1 for £295m, meaning that both sections would once again be in LCR's ownership upon subsequent competition. Network Rail agreed to pay LCR £80m for the right to operate and maintain HS1 on LCR's behalf once complete. [22]
Section 1 of the Channel Tunnel Rail Link was completed in September 2003 and handed over by Union Railways (South) to LCR. [23] [24] Upon its completion, Eurostar services started running on Section 1, leading to international journey reductions of approximately 20 minutes. Furthermore, freight trains operated by EWS started running over Section 1 during April 2004. [25]
During early 2006, the Office for National Statistics reclassified LCR as a public corporation due to LCR's reliance on government funding and the resulting high levels of influence the government enjoyed over the company. [26] Over the next few years, rumours repeatedly circled that numerous parties, including the businessman Adrian Montague, intended to acquire LCR from its current shareholders. [27] [28] By late 2007, reports were emerging that the British government were contemplating breaking up LCR into three separate companies and their sale to private owners. [29]
The Channel Tunnel Railway Link was finally finished when Section 2 was completed and handed over by Union Railways (North) to LCR. In November 2007, the full length of the line was opened to the public, rebranded as High Speed 1 (HS1). [27] It permitted Eurostar trains to operate international train services from St Pancras railway station, and a further 20-minute journey time reduction. Furthermore, a high-speed domestic service, operated by Southeastern to London St Pancras via Ebbsfleet International and Stratford International, began in June 2009. [30] [31]
By May 2009, LCR had become insolvent, and the government received an agreement to use state aid to purchase the line and to open it up to competition to allow other services to use it apart from Eurostar. [32]
Following the Channel Tunnel Rail Link (Supplementary Provisions) Act 2008, the Department for Transport took direct ownership of LCR in June 2009 for a nominal price. This was possible due to the company's dependence on £5.1bn of government-guaranteed debt, and the government's special share in LCR giving it a wide range of control over the business. [33] [34] The government stated it planned to sell off LCR's assets, such as EUKL and HS1, as individual companies to recoup some of the large amounts of government money paid to LCR since 1998. [35]
On 31 December 2009, EUKL was renamed Eurostar International Limited (EIL). On 1 September 2010, the three national Eurostar operators merged into a single company with a single management structure. Following this change, the ICRR management contract for the UK business was terminated. [36] All Eurostar assets were transferred to EIL, with LCR's holding in the new company becoming 40%. The remaining shares were held by SNCF (55%) and SNCB (5%). [37]
In November 2010, a 30-year concession to own and operate HS1 was sold to a Canadian consortium of Borealis Infrastructure and Ontario Teachers' Pension Plan for £2.1bn. [38] [39] The sale was somewhat controversial, largely as the highest bid made was passed over on in favour of a lower sum. [40]
During 2017, the sale of the 30 year HS1 concession was announced to funds advised and managed by InfraRed Capital Partners and Equitix Investment Management; participants include HICL Infrastructure (35%), Equitix (35%) and South Korea's National Pension Service (30%), in exchange for £3 billion. [41] [42]
Following the abolition of BRB (Residuary) Limited (BRBR) on 30 September 2013, LCR took ownership of a number of former British Rail offices in Croydon, Derby, Manchester and Birmingham, as well as sites in Oxford and Leeds. It also took over the management of the closed Waterloo International railway station and North Pole depot, on behalf of the Secretary of State for Transport. The remaining BRBR assets and responsibilities were split between the Highways Agency, Network Rail and the Rail Safety and Standards Board. [43] [44]
On 4 December 2013, the government announced that it intended to sell LCR's 40% stake in EIL. [45] In June 2014, the shareholding was transferred from LCR to HM Treasury [46] [47] and the sale process was subsequently launched on 13 October 2014. [48] The sale was completed in March 2015, raising a grand total of £760 million. [49]
As of 2015 [update] , LCR is a state-owned railway property development company. It is involved in a number of regeneration projects on former railway land, including King's Cross Central, Stratford City and Manchester Mayfield. It also managed Waterloo International railway station and currently manages North Pole depot [ needs update ], as well as providing property advice to HS2 Limited.
In 2021, LCR plans to bring forward property developments on several railway sites in North West England. [50] [ needs update ]
The railway system in Great Britain is the oldest railway system in the world. The first locomotive-hauled public railway opened in 1825, which was followed by an era of rapid expansion. Most of the track is managed by Network Rail, which in 2017 had a network of 15,811 kilometres (9,824 mi) of standard-gauge lines, of which 5,374 kilometres (3,339 mi) were electrified. These lines range from single to quadruple track or more. In addition, some cities have separate metro, light rail and tram systems. There are also many private railways, which are primarily short lines for tourists. The main rail network is connected with that of continental Europe by the Channel Tunnel and High Speed 1, which fully opened in 1994 and 2007 respectively.
The Channel Tunnel, also known as the Chunnel, is a 50.46-kilometre (31.35 mi) underwater railway tunnel that connects Folkestone with Coquelles beneath the English Channel at the Strait of Dover. It is the only fixed link between the island of Great Britain and the European mainland. At its lowest point, it is 75 metres (246 ft) deep below the sea bed and 115 metres (377 ft) below sea level. At 37.9 kilometres (23.5 mi), it has the longest underwater section of any tunnel in the world and is the third longest railway tunnel in the world. The speed limit for trains through the tunnel is 160 kilometres per hour (99 mph). The tunnel is owned and operated by the company Getlink, formerly "Groupe Eurotunnel".
Eurostar is an international high-speed rail service connecting the United Kingdom with France, Belgium, and the Netherlands. Most Eurostar trains travel through the Channel Tunnel between the United Kingdom and France, owned and operated separately by Getlink.
Railtrack was a group of companies that owned the track, signalling, tunnels, bridges, level crossings and all but a handful of the stations of the British railway system from 1994 until 2002. It was created as part of the privatisation of British Rail, listed on the London Stock Exchange, and was a constituent of the FTSE 100 Index. In 2002, after experiencing major financial difficulty, most of Railtrack's operations were transferred to the state-controlled non-profit company Network Rail. The remainder of Railtrack was renamed RT Group plc and eventually dissolved on 22 June 2010.
High Speed 1 (HS1), legally the Channel Tunnel Rail Link (CTRL), is a 109.9-kilometre (68.3-mile) high-speed railway linking London with the Channel Tunnel.
Network Rail Limited is the owner and infrastructure manager of most of the railway network in Great Britain. Network Rail is an "arm's length" public body of the Department for Transport with no shareholders, which reinvests its income in the railways.
St Pancras railway station, also known as London St Pancras or St Pancras International and officially since 2007 as London St Pancras International, is a central London railway terminus on Euston Road in the London Borough of Camden. It is the terminus for Eurostar services from Belgium, France and the Netherlands to London. It provides East Midlands Railway services to Leicester, Corby, Derby, Sheffield and Nottingham on the Midland Main Line, Southeastern high-speed trains to Kent via Ebbsfleet International and Ashford International, and Thameslink cross-London services to Bedford, Cambridge, Peterborough, Brighton, Horsham and Gatwick Airport. It stands between the British Library, the Regent's Canal and London King's Cross railway station, with which it shares a London Underground station, King's Cross St Pancras.
The privatisation of British Rail was the process by which ownership and operation of the railways of Great Britain passed from government control into private hands. Begun in 1994, it had been completed by 1997. The deregulation of the industry was initiated by EU Directive 91/440 in 1991, which aimed to create a more efficient rail network by creating greater competition.
The Ligne à Grande Vitesse Nord, typically shortened to LGV Nord, is a French 333-kilometre (207 mi)-long high-speed rail line, opened in 1993, that connects Paris to the Belgian border and the Channel Tunnel via Lille.
Stratford International is a National Rail station in Stratford and a separate Docklands Light Railway (DLR) station nearby, located in East Village in London. Despite its name, no international services stop at the station; plans for it to be served by Eurostar trains never came to fruition. The National Rail platforms are, however, served by domestic Southeastern trains on the High Speed 1 route originating at St. Pancras, with interchange to Eurostar trains at other stops along the route. On the DLR it is a terminus – one of seven end-of-the-line termini – for local services via Canning Town and London City Airport.
The British Rail Class 92 is a dual-voltage electric locomotive, which can run on 25 kV AC from overhead wires or 750 V DC from a third rail. It was designed specifically to operate services through the Channel Tunnel between Great Britain and France. Eurotunnel indicates the Class 92 locomotive as the reference for other locomotives which railway undertakings might want to get certified for usage in the Channel tunnel.
Ebbsfleet International railway station is in Ebbsfleet Valley, Kent, 10 miles east of London, England, near Dartford and the Bluewater shopping centre to the west and Gravesend to the east. The station, part of the Thames Gateway urban regeneration project, is on the High Speed 1 rail line, 400 metres south-west of Northfleet railway station, off the A2 trunk road, 5 mi (8.0 km) from its junction with the M25 motorway. It served as a primary park-and-rail service for the London 2012 Olympics.
Eurostar International Limited (EIL) is the railway company operating the international Eurostar train services between London, Paris, Amsterdam and Brussels via the Channel Tunnel. Eurostar was previously operated by three separate companies in Belgium, France and the United Kingdom, but this structure was replaced by EIL as a new single management company on 1 September 2010. EIL is owned by Eurostar Group.
Regional Eurostar was a planned Eurostar train service from Paris and Brussels to locations in the United Kingdom to the north and west of London.
High-speed rail in the United Kingdom is provided on five upgraded railway lines running at top speeds of 125 mph (200 km/h) and one purpose-built high-speed line reaching 186 mph (300 km/h).
High Speed 2 (HS2) is a planned high-speed railway line in England, the first phase of which is under construction in stages and due for completion between 2029 and 2033, depending on approval for later stages. The new line will run from its southern terminus in London to its most northerly point, Manchester, with branches to Birmingham and the East Midlands. HS2 will be Britain's second purpose-built high-speed line, the first being High Speed 1, which connects London to the Channel Tunnel.
High-speed rail (HSR) has developed in Europe as an increasingly popular and efficient means of transport. The first high-speed rail lines on the continent, built in the 1970s, 1980s, and 1990s, improved travel times on intra-national corridors. Since then, several countries have built extensive high-speed networks, and there are now several cross-border high-speed rail links. Railway operators frequently run international services, and tracks are continuously being built and upgraded to international standards on the emerging European high-speed rail network.
Heathrow Hub railway station was a proposed interchange that would serve – mainly – a now disbanded potential alignment of High Speed 2 (HS2) services that would adjoin the expanded part of Heathrow Airport, England. It was a cornerstone part of an expansion plan put forward in 2008, by engineering firm Arup, to set up the UK's first high-speed rail network north-west of London.
The British Rail Class 373, known in France as the TGV TMST and branded by Eurostar as the Eurostar e300, is a French designed and Anglo-French built electric multiple unit train that is used for Eurostar international high-speed rail services from the United Kingdom to France and Belgium through the Channel Tunnel. Part of the TGV family, it was built with a smaller cross-section to fit the smaller loading gauge in Britain, was originally capable of operating on the UK third rail network, and has extensive fireproofing in case of fire in the tunnel. It is both the second longest—387 metres —and second fastest train in regular UK passenger service, operating at speeds of up to 300 kilometres per hour (186 mph).
HS4Air is a proposal for a 140-kilometre (87 mi) high-speed railway line in the United Kingdom, put forward in 2018 by a British engineering consultancy, Expedition Engineering.