Why would a scheme require third party investment?
The railway as a partnership between the public and private sectors has already delivered significant improvements and innovation (for example High Speed 1), but the scale and extent of this investment nationally needs to increase. We are in a very constrained economic environment and there is a move to reduce the burden of maintaining, upgrading, and operating the railway away from the taxpayer. By providing opportunities for third party and private developers to invest in the railway, we are taking steps to unlock the economic potential that the UK rail network can bring.
These increased opportunities for third party investment will bring about increased competition, which should drive down costs and allow for improvements in efficiency and innovation. Third party investment could take the form of either delivering, funding, or financing a railway development project. Each with different risks, opportunities and economic drivers. The un-tapped economic potential of development on land around and indeed above stations and railway lines brings enormous opportunity, albeit with a unique set of risks.